Growth Team Membership Americas 2010 Market Research and Competitive Intelligence Priorities Survey Results
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Growth Team Membership™:Americas 2010 Market Research and
Competitive Intelligence PrioritiesSurvey Results
April 2010
2Growth Team Membership™ Research.
What is Growth Team Membership™?
If you have any questions or comments, please contact us at GTMResearch@frost.com
Growth Team Membership™ (GTM) is an annual subscription program that offers research, events and services designed to increase the effectiveness, productivity, and impact of executives in the functions that support the CEO’s growth strategy.
3Growth Team Membership™ Research.
Table of Contents
Page
Section 1: Survey Purpose and Respondents 4
Section 2: External Factors Shaping Market Research & CI Strategies 5
Section 3: Key Market Research Challenges 9
Section 3.1: By Business Model 13
Section 4: Market Research Effectiveness and Expenditures 14
Section 4.1: By Business Model 15
Section 5: Key Competitive Intelligence Challenges 24
Section 5.1: By Business Model 28
Section 6: Competitive Intelligence Effectiveness and Expenditures 29
Section 6.1: By Business Model 30
Section 7: Respondent Demographics 39The content of these pages are © 2010 Frost & Sullivan. All rights reserved.
4Growth Team Membership™ Research.
Survey Purpose and Respondents
There were 69 survey
respondents
Research ObjectiveTo understand the most pressing external and internal challenges shaping market research and competitive intelligence executives’ 2010 planning.
MethodologyWeb-based survey platform
Survey PopulationTarget respondents were Manager level and above market research and CI executives from companies throughout North and Latin America.
Co-Sponsor
5Growth Team Membership™ Research.
External Factors Shaping Market Research and Competitive Intelligence Strategies
6Growth Team Membership™ Research.
Top Three External Factors
N = 65
16%
26%
20%
0% 25% 50%
Changes in customer buyingbehavior
Need for product/serviceinnovation and capabilities
Intensifying Competition
KEY TAKEAWAY: Strategies are heavily influenced by customer shifts and competitor activities
Survey Question: Please indicate the three business environment factors that have the most impact on your 2010 market research and competitive intelligence plans.
7Growth Team Membership™ Research.
67%73%
90%
0%
50%
100%
Intensifying Competition Need for product/service innovationand capabilities
Changes in customer buying behavior
External Factors Impact on Market Research and Competitive Intelligence
N = 65
Survey Question: Please indicate the impact that each of the following forces have on your 2010 market research and competitive intelligence plans.
KEY TAKEAWAY: For 2010, the top three external factors impacting strategies are overwhelmingly negative.
Negative Impact
8Growth Team Membership™ Research.
B-to-B B-to-C Hybrid
Tapping into global market opportunities (20%)
Adjusting to the economic downturn (33%)
Intensifying competition (35%)
Intensifying competition (31%)
Changes in customer buying behavior (33%)
Need for product/service innovation and capabilities (23%)
Changes in customer buying behavior (19%)
Need for product/service innovation and capabilities (33%)
Changes in customer buying behavior (24%)
External Factor 1
KEY TAKEAWAY: There is a considerable overlap in external challenges regardless of business model
Top Three External Factors (By Business Model)
N = 65
External Factor 2
External Factor 3
9Growth Team Membership™ Research.
Key Market Research Challenges
10Growth Team Membership™ Research.
Key Market Research Challenges Snapshot
All CompaniesTop three challenges:
Identifying and synthesizing disparate information sources
Ensuring internal clients/stakeholders integrate research insights into their decision making
Contributing to the company’s strategic priorities
B-to-B CompaniesTop three challenges:
Identifying and synthesizing disparate information sources
Ensuring internal clients/stakeholders integrate research insights into their decision making
Ensuring the research portfolio/agenda contains the right balance of strategic and tactical projects
B-to-C CompaniesTop three challenges:
Ensuring internal clients/stakeholders integrate research insights into their decision making
Enhancing Market Research’s capabilities to provide consultative support to internal clients/stakeholders
Identifying and synthesizing disparate information sources
1
2
3
1
2
3
1
2
3
11Growth Team Membership™ Research.
Top Five Key Market Research Challenges
Challenge 1 Identifying and synthesizing disparate information sources (22%)
Challenge 2 Ensuring internal clients/stakeholders integrate research insights into their decision making(33%)
Challenge 3 Contributing to the company’s strategic priorities (15%)
N =27
Survey Question: Please indicate the top five challenges shaping your Market Research decision-making in 2010.
KEY TAKEAWAY: Market Research’s top challenges reflect their need to enhance insight generation for stakeholders and the perennial issues around organizing information.
Challenge 4 Enhancing Market Research’s capabilities to provide consultative support to internal clients/stakeholders(24%)
Challenge 5 Maintaining a portal for centralized knowledge management (39%)
12Growth Team Membership™ Research.
Root Cause of Top Five Market Research Challenges
N = 27
Process78% Process
67%Process
67%
Process22%
Staff22% Staff
33%Staff33%
Staff11%
Technology67%
Technology67%
Process33%
0%
50%
100%
Identifying andsynthesizing
disparate informationsources
Ensuring internalclients/stakeholdersintegrate researchinsights into theirdecision making
Contributing to thecompany’s strategic
priorities
Enhancing MarketResearch’s
capabilities toprovide consultativesupport to internal
clients/stakeholders
Maintaining a portalfor centralized
knowledgemanagement
Survey Question: For the top five challenges you selected above, please indicate whether the root cause of the challenge is staff, technology, or process.
KEY TAKEAWAY: Process and Technology are cited as the predominant root causes of Market Research’s challenges.
13Growth Team Membership™ Research.
B-to-B B-to-C Hybrid
Identifying and synthesizing disparate information sources (25%)
Ensuring internal clients/stakeholders integrate research insights into their decision making (100%)
Identifying and synthesizing disparate information sources (21%)
Ensuring internal clients/stakeholders integrate research insights into their decision making (42%)
Enhancing Market Research’s capabilities to provide consultative support to internal clients/stakeholders (100%)
Ensuring internal clients/stakeholders integrate research insights into their decision making (29%)
Ensuring the research portfolio/agenda contains the right balance of strategic and tactical projects (17%)
Identifying and synthesizing disparate information sources (100%)
Contributing to the company’s strategic priorities (29%)
Challenge 1
KEY TAKEAWAY: Regardless of business model the top market research challenges remain the same.
Top Three Market Research Challenges (By Business Model)
N = 27
Challenge 2
Challenge 3
14Growth Team Membership™ Research.
Market Research Effectiveness and Expenditures
15Growth Team Membership™ Research.
Market Research Expenditures and Effectiveness Snapshot
All CompaniesRank their market research effectiveness as above average
Budgets are evenly distributed across research activities
Expect the number of vendors they work with to stay the same in 2010
Expect the percentage of their budget spent on vendors to stay the same in 2010
Expect their staffing levels to stay the same in 2010
Expect their budgets to increase moderately in 2010
B-to-B CompaniesRank their marketing effectiveness as average
Largest budget expenditures are on market sizing and business intelligence
Expect the number of vendors they work with to stay the same in 2010
Expect the percentage of their budget spent on vendors to stay the same in 2010
Expect their staffing levels to stay the same in 2010
Expect their budgets to stay the same in 2010
Hybrid CompaniesRank their market research effectiveness as above average
Largest budget expenditures are on product testing and customer behavior
Expect the number of vendors they work with to stay the same in 2010
Expect their percentage of their budget spent on vendors to decrease moderately in 2010
Expect their staffing levels to stay the same in 2010
Expect their budgets to increase moderately in 2010
Note: Due to small response rates, there is no data available for B-to-C Respondents.
16Growth Team Membership™ Research.
Average40%
Above Average48%
Exceptional12%
Average23%
Above Average62%
Exceptional15%
Average64%
Above Average27%
Exceptional9%
All Companies B-to-B Companies
Hybrid Companies
Market Research’s View of Its Effectiveness (By Business Model)
N = 25
Survey Question: Please assess the overall effectiveness of your marker research function compared to those in other firms within your industry.
KEY TAKEAWAY: B-to-B companies are more likely to rank their Market Research’s effectiveness as Average.
17Growth Team Membership™ Research.
75%
0%
25%
0% 0% 0% 0%
17% 17%
25%
8%
17%
8% 8%4%4%8%
4%
44%
8%
28%
0%
20%
40%
60%
80%
Less than $500,000 $500,000 to$999,999
$1 Million to $2.99Million
$3 Million to $4.99Million
$5 Million to $9.99Million
$10 Million to$19.99 Million
$20 Million or more
B-to-B Hybrid All Companies
2009 Market Research Budgets (By Business Model)
N = 25
Survey Question: Please indicate your 2009 total market research budget (all expenditures on primary, secondary syndicated and other research butexcluding general & administrative expenses such as salaries) was in the range of in US$.
KEY TAKEAWAY: Most respondents’ companies are likely to allocate under $500,00 to their Market Research budgets.
The red percentages are for all respondents.
18Growth Team Membership™ Research.
18%
8%
5%
11% 10%
3%
18%
5%
15%
10%
15%
10% 10%
5%
10%10%10%10%10% 10%
5%
0%
20%
Market Size/Structure Product/ServiceDevelopment and Testing
Branding, Messaging,and MarCom
Customer/ConsumerBehavior
Pricing Research CustomerSatisfaction/Market
Tracking
Business/CompetitiveIntelligence
B-toB Hybrid Overall
Market Research Budget Allocation (By Business Model)
KEY TAKEAWAY: B-to-B companies are likely to allocate three times as much of their budget to market sizing and business intelligence activities than their peers in hybrid companies.
N = 25
The red percentages are the median values for all companies’ marketing budget by category.
Survey Question: Please provide the percentage allocation of your total 2009 market research budget to the following research categories (must sum to 100%)
19Growth Team Membership™ Research.
Decrease Substantially
8%
Increase Moderately
15%
Stay the Same54%
Decrease Moderately
23%
Decrease Substantially
8%
Increase Moderately
8%
Stay the Same54%
Decrease Moderately
30%
Decrease Substantially
8%
Increase Moderately
25%
Stay the Same50%
Decrease Moderately
17%
2010 vs. 2009 Vendor Portfolio (By Business Model)
N = 26
Survey Question: In comparison to 2009, your 2010 the number of vendors your market research function works with will:
KEY TAKEAWAY: Regardless of business model, market researchers report no change in the number of vendors they will be working with in 2010.
All Companies B-to-B Companies
Hybrid Companies
20Growth Team Membership™ Research.
Decrease Substantially
11%Increase
Moderately23%
Stay the Same39%
Decrease Moderately
27%
Decrease Substantially
15%
Increase Moderately
23%
Stay the Same23%
Decrease Moderately
39%
Decrease Substantially
8%Increase
Moderately25%
Stay the Same50%
Decrease Moderately
17%
2010 vs. 2009 Vendor Budget (By Business Model)
N = 26
Survey Question: In comparison to 2009, your 2010 the percentage of your market research budget allocated to vendors will:
KEY TAKEAWAY: For most respondents 2010 will see budget stability as corporate cost cutting abates.
All Companies B-to-B Companies
Hybrid Companies
21Growth Team Membership™ Research.
Increase Moderately
19%
Stay the Same65%
Decrease Moderately
12%
Increase Substantially
4%
Increase Moderately
15%
Stay the Same62%
Decrease Moderately
15%
Increase Substantially
8%
Increase Moderately
25%
Stay the Same67%
Decrease Moderately
8%
2010 vs. 2009 Staffing Plans (By Business Model)
N = 26
Survey Question: In comparison to 2009, your 2010 market research staff will:
KEY TAKEAWAY: Market Research functions plan on maintaining their current staffing levels in 2010.
All Companies B-to-B Companies
Hybrid Companies
22Growth Team Membership™ Research.
Decrease Substantially
8%
Increase Moderately
15%
Stay the Same46%
Decrease Moderately
31%
Increase Moderately
46%
Stay the Same24%
Decrease Moderately
15%
Increase Substantially
15%
Decrease Substantially
8%Increase
Moderately25%
Stay the Same42%
Decrease Moderately
25%
All Companies B-to-B Companies
Hybrid Companies
2010 vs. 2009 Budgets (By Business Model)
N = 26
Survey Question: In comparison to 2009, your 2010 market research budget will:
KEY TAKEAWAY: The majority of respondents’ 2010 budgets will stay the same or increase.
23Growth Team Membership™ Research.
Decrease Substantially
4%
Increase Moderately
44%Stay the Same32%
Decrease Moderately
12%
Increase Substantially
8%
Increase Moderately
63%
Stay the Same16%
Decrease Moderately
4%Increase
Substantially 16%
Decrease Substantially
9%
Increase Moderately
46%
Stay the Same36%
Decrease Moderately
9%
All Companies B-to-B Companies
Hybrid Companies
Anticipated Company Performance in 2010 (By Business Model)
N = 25
Survey Question: In comparison to 2009, your company’s performance by the end of 2010 will:
KEY TAKEAWAY: Regardless of business models, respondents are optimistic about their company’s performance in 2010.
24Growth Team Membership™ Research.
Key Competitive Intelligence Challenges
25Growth Team Membership™ Research.
Key Competitive Intelligence Challenges Snapshot
All CompaniesTop three challenges:
Embedding an understanding of CI’s benefits with executive management
Packaging and communicating competitive data and insights to drive stakeholder decision making
Developing a methodology for identifying disruptive or emergent challenges
B-to-B CompaniesTop three challenges:
Embedding an understanding of CI’s benefits with executive management
Packaging and communicating competitive data and insights to drive stakeholder decision making
Creating and managing a portal to centralize CI-related information within the company
B-to-C CompaniesTop three challenges:
Engaging internal clients/stakeholders to diagnose their specific intelligence needs
Packaging and communicating competitive data and insights to drive stakeholder decision making
Embedding an understanding of CI’s benefits with executive management
1
2
3
1
2
3
1
2
3
26Growth Team Membership™ Research.
Top Five Key Competitive Intelligence Challenges
Challenge 1 Embedding an understanding of CI’s benefits with executive management (15%)
Challenge 2 Packaging and communicating competitive data and insights to drive stakeholder decision making (26%)
Challenge 3 Developing a methodology for identifying disruptive or emergent challenges (19%)
N = 27
Survey Question: Please indicate the top five challenges shaping your Competitive Intelligence decision-making in 2010.
KEY TAKEAWAY: CI’s challenges reflect their need to contribute to the bottom line of their companies and the struggle to capture competitive information from a myriad of sources.
Challenge 4 Using informal networks to capture the competitive information held by the company’s employees (12%)
Challenge 5 Entrenching competitive intelligence insights in the company’s revenue-generating activities, e.g. Sales (16%)
27Growth Team Membership™ Research.
Root Cause of Top Five Competitive Intelligence Challenges
N = 27
Technology14%
Process25%
Process86% Process
100%
Process67%
Process100%
Staff75%
Staff Staff
Staff33%
Staff
0%
50%
100%
Embedding anunderstanding of CI’s
benefits with executivemanagement
Packaging andcommunicating
competitive data andinsights to drive
stakeholder decisionmaking
Developing a methodologyfor identifying disruptive or
emergent challenges
Using informal networks tocapture the competitiveinformation held by thecompany’s employees
Entrenching competitiveintelligence insights in the
company’s revenue-generating activities, e.g.,
Sales
Survey Question: For the top five challenges you selected above, please indicate whether the root cause of the challenge is staff, technology, or process.
KEY TAKEAWAY: Process is indicated as the primary root cause of four of CI’s top challenges. However, Staff is indicated as the root cause for embedding the benefits of CI with executive management.
28Growth Team Membership™ Research.
B-to-B B-to-C HybridEmbedding an understanding of CI’s benefits with executive management (14%)
Engaging internal clients/stakeholders to diagnose their specific intelligence needs (40%)
Embedding an understanding of CI’s benefits with executive management (25%)
Packaging and communicating competitive data and insights to drive stakeholder decision making (21%)
Packaging and communicating competitive data and insights to drive stakeholder decision making (20%)
Packaging and communicating competitive data and insights to drive stakeholder decision making (39%)
Creating and managing a portal to centralize CI-related information within the company (21%)
Embedding an understanding of CI’s benefits with executive management (20%)
Developing a methodology for identifying disruptive or emergent challenges (50%)
Challenge 1
KEY TAKEAWAY: Regardless of business model, the top three challenges of CI remain the same.
Top Three Competitive Intelligence Challenges (By Business Model)
N = 27
Challenge 2
Challenge 3
29Growth Team Membership™ Research.
Competitive Intelligence Effectiveness and Expenditures
30Growth Team Membership™ Research.
Competitive Intelligence Expenditures and Effectiveness Snapshot
All CompaniesRank their competitive intelligence effectiveness as average
Report directly to the Marketing function
Expect the number of vendors they work with to stay the same in 2010
Expect the percentage of their budget spent on vendors to increase moderately in 2010
Expect their staffing levels to stay the same in 2010
Expect their budgets to stay the same in 2010
B-to-B CompaniesRank their competitive intelligence effectiveness as average
Report directly to the Marketing function
Expect the number of vendors they work with to stay the same in 2010
Expect the percentage of their budget spent on vendors to stay the same in 2010
Expect their staffing levels to stay the same in 2010
Expect their budgets to stay the same in 2010
B-to-C CompaniesRank their competitive intelligence effectiveness as average or exceptional
Report directly to the Marketing function
Expect the number of vendors they work with to stay the same in 2010
Expect their percentage of their budget spent on vendors to stay the same in 2010
Expect their staffing levels to increase in 2010
Expect their budgets to decrease moderately in 2010
31Growth Team Membership™ Research.
Average44%
Above Average22%
Exceptional19%
Below Average15%
Average40%
Exceptional40%
Below Average20%
Average56%
Above Average22%
Exceptional11%
Below Average11%
Average39%
Above Average31%
Exceptional15%
Below Average15%
All Companies B-to-B Companies
B-to-C CompaniesHybrid Companies
Competitive Intelligence’s View of Its Effectiveness (By Business Model)
N =27
Survey Question: Please assess the overall effectiveness of your competitive intelligence function compared to those in other firms within your industry.
KEY TAKEAWAY: B-to-C companies are more likely to rank the effectiveness of their CI function as exceptional.
32Growth Team Membership™ Research.
57%
29%
0%
7%
0%
7%
0% 0%
50%
0% 0% 0% 0%
25% 25%
0%
67%
11% 11% 11%
0% 0% 0% 0%
0%1%7%
0%
7%
59%
19%
4%
0%
20%
40%
60%
80%
Less than$250,000
$250,00O to$499,999
$500,000 to$999,999
$1 Million to$1.99 Million
$2 Million to$2.99 Million
$3 Million to$3.99 Million
$4 Million to$4.99 Million
$5 Million or more
B-to-B B-to-C Hybrid All Companies
2009 Competitive Intelligence Budgets (By Business Model)
N = 27
Survey Question: Please indicate your 2009 total competitive intelligence budget (all expenditures on competitive intelligence activities but excluding general & administrative expenses such as staff) was in the range of in US$.
KEY TAKEAWAY: Regardless of business model, most companies allocate less than $250,000 to their annual CI budget.
The red percentages are for all respondents.
33Growth Team Membership™ Research.
Direct Line Reporting of Competitive Intelligence Functions
N = 24
46%
18%
9% 9% 9% 9%
50%
25%
0%
25%
0% 0%
44%
11%
22%
11% 11%
0%
3%
8%
13%
46%
17%
13%
0%
20%
40%
60%
Marketing Strategy/Planning Market Research Sales/BusinessDevelopment
CEO/President/General Manager
R&D/Innovation
B-to-B Companies B-to-C Companies Hybrid Companies All Companies
KEY TAKEAWAY: Regardless of business model, CI departments tend to report directly to Marketing.
Survey Question: Your CI department reports directly into the following function.
The red percentages are for all respondents.
34Growth Team Membership™ Research.
Decrease Substantially
3%Increase
Moderately29%
Stay the Same50%
Decrease Moderately
14%
Increase Substantially
4%
Decrease Moderately
20%
Stay the Same80%
Decrease Substantially
12%Increase
Moderately44%
Stay the Same44%
Increase Moderately
29%
Stay the Same43%
Decrease Moderately
21%
Increase Substantially
7%
2010 vs. 2009 Vendor Portfolio (By Business Model)
N = 28
Survey Question: In comparison to 2009, your 2010 the number of vendors your competitive intelligence function works with will:
KEY TAKEAWAY: CI executives report no plans to change the number of vendors they employ in 2010.
All Companies B-to-B Companies
B-to-C CompaniesHybrid Companies
35Growth Team Membership™ Research.
Decrease Substantially
3%
Increase Moderately
32%
Stay the Same36%
Decrease Moderately
25%
Increase Substantially
4%
Stay the Same60%
Decrease Moderately
40%
Decrease Substantially
11%
Increase Moderately
45%Stay the Same22%
Decrease Moderately
11%
Increase Substantially
11%
Increase Moderately
36%
Stay the Same36%
Decrease Moderately
28%
2010 vs. 2009 Vendor Budget (By Business Model)
N = 28
Survey Question: In comparison to 2009, your 2010 the percentage of your competitive intelligence budget allocated to vendors will:
KEY TAKEAWAY: With the exception of B-to-C companies, respondents indicate they will increase their 2010 vendor budget.
All Companies B-to-B Companies
B-to-C CompaniesHybrid Companies
36Growth Team Membership™ Research.
Increase Moderately
21%
Stay the Same61%
Decrease Moderately
14%
Increase Substantially
4%
Increase Moderately
11%
Stay the Same67%
Decrease Moderately
11%
Increase Substantially
11%
Increase Moderately
21%
Stay the Same71%
Decrease Moderately
8%
2010 vs. 2009 Staffing Plans (By Business Model)
N = 28
Survey Question: In comparison to 2009, your 2010 competitive intelligence staff will:
KEY TAKEAWAY: Most companies do not intend to change their CI staffing levels in 2010.
All Companies B-to-B Companies
B-to-C CompaniesHybrid CompaniesIncrease
Moderately20%
Stay the Same40%
Decrease Moderately
20%
37Growth Team Membership™ Research.
Decrease Substantially
4%
Increase Moderately
25%
Stay the Same46%
Decrease Moderately
18%
Increase Substantially
7%
Stay the Same20%
Decrease Moderately
60%
Increase Moderately
20%
Decrease Substantially
11%
Increase Moderately
11%Stay the Same
45%
Decrease Moderately
11%
Increase Substantially
22%
Increase Moderately
36%
Stay the Same57%
Decrease Moderately
7%
All Companies B-to-B Companies
B-to-C CompaniesHybrid Companies
2010 vs. 2009 Budgets (By Business Model)
N = 28
Survey Question: In comparison to 2009, your 2010 market research budget will:
KEY TAKEAWAY: Respondents indicate that their CI budgets are likely to remain static in 2010.
38Growth Team Membership™ Research.
Increase Moderately
61%
Stay the Same28%
Decrease Moderately
7%
Increase Substantially
4%
Stay the Same20%
Increase Moderately
80%
Increase Moderately
11%
Increase Substantially
89%
Increase Moderately
36%
Stay the Same43%
Decrease Moderately
14%
Increase Substantially
7%
All Companies B-to-B Companies
B-to-C CompaniesHybrid Companies
Anticipated Company Performance in 2010 (By Business Model)
N = 28
Survey Question: In comparison to 2009, your company’s performance by the end of 2010 will:
KEY TAKEAWAY: The majority of respondents are optimistic about their company’s performance in 2010.
39Growth Team Membership™ Research.
Market Research and Competitive Intelligence Respondent Demographics
40Growth Team Membership™ Research.
Venture Capital1%
Public72%
Private27%
B-to-C Company
13%
Hybrid Company
38%
B-to-B Company
49%
Demographics
N = 67
Over half of the respondents work in a public company.
Survey Question: Please indicate the type of enterprise best represents your organization.
Respondents tended to be from public, B-to-B companies whose 2009 revenue ranged from $1 to $11 billion.
15%6%
42%
27%
5%0%
30%
60%
Below $100 million $100 to $499.99million
$500 million to$999.99 million
$1 billion to $11billion
More than $11billion
Enterprise Type Business Model
Company Revenue
N =67 N = 68
41Growth Team Membership™ Research.
19%
13%
12%
10%
20%
0% 15% 30%
Healthcare and Life Sciences
Information and CommunicationTechnologies
Financial Services
Energy and Power Systems
Chemicals, Materials, and Food
Demographics: Top Five Participating Industries
N = 69
Survey Question: Please indicate which of these Industry categories best describes you organization (please indicate all that apply).
42Growth Team Membership™ Research.
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