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Archive for the ‘Market Assesment’ Category« Previous Entries Next Entries »Global Opportunities AboundThursday, April 23rd, 2009
A recent article in BtoB Marketing – Thinking global may help U.S. marketers – argues that many emerging international markets still offer rich opportunities for domestic marketers, even in spite of the global economic downturn. China in particular, is suggested as a market still offering excellent opportunities for U.S. companies. It is useful to note that the country’s premier, Wen Jiabao, last month predicted an 8% growth in China’s GDP this year, which, while not as large as last year’s growth, is still better than that of many countries. One potential opening highlighted is for U.S. companies that put an emphasis on customer service. They may be able to take advantage of overseas opportunities, as it is suggested that companies in a number of other countries are much less tolerant of poor customer service. In China, for example, 55% of companies have switched vendors in the past year because of perceived unfulfilled customer service expectations. Sweden (46%), India (44%), Italy (44%), Finland (43%) and companies in Asian countries other than China (36%) all have a tendency to switch vendors more than their US counterparts (22%). With emerging markets such as China and India having increasing service expectations, there is the assumption that they may not be loyal to particular brands, suppliers, etc. Resultantly, they may be willing to make the potentially lucrative move from their existing domestic partners to foreign counterparts, as long as these new companies can offer them what they are looking for. To find out how we can help you to grasp the opportunities presented by China and other Asian markets, visit www.b2binternational.com/China Increasing Sales In Challenging Times, part 3 of 3Thursday, April 2nd, 2009
In the final installment of this article, Julia Cupman concludes her list of points to consider when assessing new market opportunities, and reiterates that the economic downturn still presents myriad opportunities to many companies:
Market expansion may be a viable opportunity that offers a means for companies to sell more if their prospects domestically have been blackened by the economic downturn. Market entry research can cost anything from $40,000 upwards, depending on the nature of the research. This is a small cost to pay given the high return on investment. Hence, companies that cut their marketing budgets during economically challenging times are potentially closing doors to new opportunities. To find out about B2B International’s market assessment research, please click here. Increasing Sales In Challenging Times, part 2 of 3Wednesday, April 1st, 2009
Following on from yesterday’s blog post, the second part of Julia Cupman’s 3-part feature on increasing sales in challenging times continues by looking at some of the questions a market entry or market assessment study should help to answer: There is an obvious requirement for market knowledge and market insight prior to devising a market expansion strategy. Market research and intelligence should be used to determine the precise nature of the opportunity, the size of the opportunity, and the routes to market. Many companies turn to market research providers to do this as they are independent and, therefore, unlikely to prejudice the findings. They also have the expertise in conducting market assessment and market entry research. Entering a new market is undoubtedly a daunting task. The following list of questions should assist marketers and their colleagues to explore, scope and define the opportunity in expanding into a new market.
This article concludes tomorrow. Using Market Research For Product DevelopmentWednesday, March 18th, 2009
A new B2B International white paper – Using Market Research For Product Development – is now available online. In it, Julia Cupman assesses the importance of product development to a company’s growth prospects, focusing in particular on the vital role(s) that market research plays throughout all the different stages of the product life cycle, from initial concept through to product maturity. Product development research serves a host of purposes, such as establishing (unmet) needs, estimating likely demand, setting prices, shaping the specification of the product or determining optimal price points, to give but a few examples. Of course, product development research does not just examine the product alone; packaging, advertising, pricing, service, brand and company reputation are some of the other factors which together make up the complete customer value proposition. Indeed, improvements to packaging, delivery, or any aspect of service support could have just as big an impact as improvements to the physical product itself. Whether establishing potential opportunities for brand new products or trying to breathe life into a former favorite seemingly on its last legs, market research provides insight into the needs of the market, and reduces the risk associated with any form of product development. To read the white paper in full, please click here For further details on B2B International’s product development research services, please click here Getting More From Your Existing CustomersWednesday, January 21st, 2009  Even though the Ansoff Matrix model is over 50 years old it still is the most commonly used model for analysing the possible strategic direction that a business should take. How many times have you asked yourself the questions in business – How saturated is the market in which we do business and is there an opportunity to sell more of my product/service to existing customers? In the fast moving world we live in today we are often preoccupied with looking to where the next big customer will come from with all our attention placed on acquiring new customers rather than looking under our noses at our current customers to see how we can encourage them to buy more of the same product or purchase a different product/service that they don’t currently know about .. The following article by Jonathan Moules highlights this exact issue and begs the question – are you squeezing your customers for all you can? Squeezing the lemon can be fruitful In these straitened times, it is more important than ever to get more out of your existing customers. However, understanding how to do this is not straightforward. Gerard Burke, who runs the Business Growth and Development Programme (BGP) at Cranfield University, has coined the phrase “squeezing the lemon” to explain where most entrepreneurs go wrong. His theory is based on the observation that lemons used in home cooking often end up only half used because the recipe only calls for the juice of half the fruit. The remainder is left in the fridge. Many business owners, he claims, act the same way with their customers, even in the good times. “One of the advantages of just keeping on talking to your customers is that they will tell you about things you don’t otherwise know about,” Burke says. He gives the example of Hotel Chocolat, the retailer of luxury treats, whose founder Angus Thirlwell is a BGP graduate. Hotel Chocolat takes the view that each gift of chocolates comes with two customers, the person who places the order and the recipient. So it makes sure that the latter knows all about where their box of goodies has come from, Burke notes. Squeezing the lemon could also mean something as simple as reminding your existing customers of other products or serves that you can supply. This was the case for Tony Simpson, owner and chief executive of Clough Smith Rail, which builds signalling systems. It was not his sales staff who squeezed the lemon, but a junior operations manager, who had heard Simpson talking about getting more from existing customers When the operation manager’s counterpart at Network Rail started talking about other work the public body was planning, the manager asked if Clough Smith Rail could do the work for it. The Network Rail executive had not even considered Clough Smith Rail would be interested. But, as a result, Simpson’s company landed a contract worth £2.4m. Some organisations might have promoted such an employee to a sales position. But Simpson, who notes that you need these people all around the business, has been happy to allow the manager to remain in his operations role. “He just feels great about the fact that he recognised the opportunity,” Simpson says. Clough Rail Smith is less desperate than many companies for new business at the moment. Major transport infrastructure investments in recent years, such as the West Coast Mainline project, have generated plenty of work and the York-based company currently has a full order book. “I am not being smug, but we are OK,” Simpson says. Back at Cranfield, Burke claims that one of the reasons that companies fail to get more out of their existing customers is that their sales staff are trained as hunters, gathering new leads. What they need to be, he claims, is farmers, nurturing contacts to produce a regular harvest of work. Changing behaviour could be as simple as drilling the sales force in the advantages of pumping current customers for new business leads, although the incentive structure might also have to be changed to achieve maximum effect, Burke admits. Until about 18 months ago, Dave Abraham thought his IT security business, Signify, was doing a pretty good job of serving its clients. The Cambridge-based company was generating a little over £1m in turnover providing the random password generator devices used by mobile workers to access their employers’ IT networks away from the office. Customers ranged from small businesses that lacked the resources to run such a system themselves to multinationals that preferred to outsource security services. “We already knew that managing existing customers well was important… and we were pretty good at it,” Abraham says. “However, we didn’t realise how much better we could be.” Abraham started by redeploying his customer account manager, who had previously handled all client relations, to focus on the relatively small number of customers that supplied the top 80 per cent of revenues. He then appointed a new starter, who was relatively inexperienced in sales, to manage the remainder of the client list. This enabled the more experienced account manager to devote more of her time to managing the best customers. Abraham and his team created a simple web-based survey for the top customers and set its now senior account manager the target of getting 20 per cent of them to complete all the questions. This provided good pointers about what Signify could do better, and lifted staff morale with some great testimonials from the people buying the technology, according to Abraham. “The survey has helped completely change the perception of our employees,” he says. From the survey, 10 customers came forward to take part in a forum organised by Signify to help improve the service to them. Although these were mid-level IT people, they knew a lot about their business strategies. “It gave a good snapshot of the economy at the time,” Abraham notes. “There was an interesting mixture of companies suffering in the downturn and others growing stunningly.” The real benefit from this came when Signify’s staff visited the customers, according to Abraham. “Rather than just discussing what new things we’ve got coming up, and would they like to buy them, we now have them telling us what’s important to them.” He adds that, in the last year, Signify’s revenues and profit have risen 30 per cent, primarily by selling more to existing customers. “I’ve realised that squeezing the lemon is not about selling them anything – it’s about helping to solve customers’ problems for them, and about customers trusting us to share their requirements. If we can provide value, they will pay us for our services.” « Previous Entries Next Entries » |
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