Angela Dalrymple and Daniel Rowles share their presentations from CIM Sussex's recent event' 'Innovate with Intelligence'.

1. CIM Sussex
INNOVATE WITH INTELLIGENCE
 Angela Dalrymple
 Daniel Rowles
 Thursday 24th May 2012

2. Our agenda
 Welcome from the CIM Sussex committee - Laura Winter
 Knowing your market better than it knows you – Angela Dalrymple
 Coffee Break
 Latest digital marketing techniques – Daniel Rowles
 Q&A
2

3. CIM Sussex
 Knowing Your Market Better Than
It Knows You
 Angela Dalrymple – Presentation to CIM Sussex
 Senior Teaching Fellow, Imperial College Business School
 a.dalrymple@imperial.ac.uk
 Director – Prodata Partners Ltd
 angela.dalrymple@prodata-partners.com
 Tel: 0845 054 9929

4. Angela Dalrymple
 Senior Teaching Fellow in Marketing at Imperial College Business School
 Associate Professor in Marketing with University of St Thomas Minnesota
 Lecturer in Marketing with Portsmouth University, London School of
Business & Finance, University of Wales & Open University
 Tutor on CIM Professional Diploma & Certificate courses with Oxford
College of Marketing
 MA & BA (Oxford University), MBA (Liverpool), DBA (Edinburgh Business
School)
 Senior Professional Member of CIM, MRS, IOD
 Board Director & senior marketing roles with AT&T UK, Thomson Reuters &
PricewaterhouseCoopers
 Director of Prodata Partners – market strategy & research consultancy

4
27 years’ experience in marketing and strategy

5. Discussion
 Importance of knowing about ongoing market trends,
customer segments and competitor activities
 Role of market research in effective marketing decision-
making and marketing plans
 Smart applications of secondary and primary research
 Free & no/lo cost sources of useful market research
5

6. Knowing Your Market
Well Is A Tough
Challenge
Reporter: ‘How do you sleep at night?’
CEO: ‘I sleep like a baby’
Reporter : ‘That’s wonderful’
CEO: ‘No no - I mean, I wake up every two hours and start crying’
(Roberto Guizeta, ex-CEO of Coca-Cola, quoted in Fortune)
6

7. But How Many of Us Really Know Our
Market Better Than it Knows Us?
Market Intelligence Audit – Show of Hands…
7

8. So What do You Need to Know About
Your Market?
Key objectives are usually to:
• Assess the market (e.g. attractiveness)
• Understand its dynamics (e.g. trends, competitors)
• Use this knowledge to implement a marketing plan
There are a number of dimensions which
need to be considered, including:
• Market size
• Look at total sales level
• Consider the potential market
• Market growth
• What will be the size of the market in the future?
8

9. Key Dimensions of Market Analysis
 Market size
 Market profitability
 Market growth trends
 Main products in the market
 Customer attitudes and buying behaviours
 Major competitors and market shares
 Distribution patterns
 Marketing strategies used in the market
9

10. Knowing Your Market Used to Seem so
Easy… So What‘s Changed?
00/00/0000
10

11. 11

12. 12

13. How are customers changing through going digital?
13

14. STATIC
14

15. So What Do You Need to Know
About Your Customers?
15

16. Finding Realistic Customer Market
Metrics is Becoming More Difficult
Old metrics - examples
• Return on marketing investment
• Profit per customer
• Return on promotional measures
New metrics - examples
• Traffic / distribution
• Response rates
• Average order value
• SEO
• Customer acquisition costs
• Integrated marketing campaigns / cross platform
16

17. Types of Customer Data Which Can Help Us
• Volunteered data – data provided by the customer, e.g.
by registering on a website
• Behavioural data – data derived directly from the
behaviour of the customer, e.g. purchasing or bill payment
patterns
• Attributed data – data which is extrapolated from the
results of market research, e.g. by interviewing a cross
section of prospective customers
• Profile data – data obtained by linking the organisation’s
database with other sources of information, e.g.:-
• Geo-demographic profiling data, such as MOSAIC and ACORN
• Lifestyle databases, e.g. Claritas
17

18. Role of Data in Knowing Our Customers
• Customer database information can be used for profiling
customers in many different ways, e.g.:–
• Timing and volume of purchases
• Geographical location
• Price preferences
• Profitability
• Using data to profile customers can tell us:-
• Which customers are most profitable & what their characteristics
are
• How to create segments/groups of profitable customers with
similar characteristics
• Which customers are most likely to respond to our
18 communications & marketing campaigns

19. Data Also Helps Us Know About
Customer Lifetime Value
• Customer Lifetime Value (CLV) is now used by many organisations
interested in retaining customers over the longer term, e.g. services
organisations
• CLV= total contribution (revenues minus costs) of a customer over
their lifetime with the organisation
• Enables organisations to calculate the future profitability of customers
• CLV forces organisations to focus more on customer service and
long-term customer satisfaction, rather than short-term sales
• CLV helps organisations decide which customers to invest in long to
gain a positive return on investment
• Customer databases play a key role in providing the data for this
analysis
19

20. We Can Use Data to Pull Customers up
the Loyalty Ladder
Partner
Advocate
Supporter
Client
Customer
Prospect
20

21. Word-of-mouth Referral & Customer Relationship Priorities
• The Net Promoter Score is obtained by asking customers on a 0 to 10 scale,
where 10 is "extremely likely" and 0 is "not at all likely":
• "How likely is it that you would recommend our company to a friend or colleague?"
• Respondents are categorized into one of three groups:
• Promoters (9–10 rating); Passives (7–8 rating); Detractors (0–6 rating)
• The % of Detractors is then subtracted from the percentage of Promoters to obtain
a Net Promoter score (NPS)
• An NPS that is positive (i.e. higher than zero) is good, an NPS of +50 is excellent
(Apple, Harley Davidson)
High
Profitability
Low Detractor Passive Promoter
21
Low Net-Promoter Score High Reichheld (2006)

22. We Also Need to Know About
Customer Buying Influences
Individual Situational
influences influences
Decision-making
process
Group
influences Marketing mix
Brassington & Pettitt, 2006
Customers are subjected to a variety of influences on
22
their buying decision process

23. Moving From Corporate Social Responsibility to Terminator Brands
 During the “noughties”, consumer attitudes in many markets
shifted towards societal concerns around ethics, sustainability
and corporate social responsibility from marketers
– The environment
– Global warming
– Recycling
– Fair trade
 However current marketing analysis shows consumers now prefer
decisive “terminator” brands
– Brands which take away the stress of everyday living, and “terminate”
consumer problems
– E.g. Lynx, Sky, Nike etc. – “Sorted!”
So do your customers see you as Nurturers or Terminators???
23

24. We Also Need to Know How to Scope
Customer Segmentation
 Segmentation represents an effort to identify and categorise
groups of customers and countries according to common
characteristics
10.5 million dogs are owned in the UK – what products can be
targeted & positioned to this segment?
24
And in reality - who owns whom…..???

25. What do we need to know for
effective customer segmentation?
• Measurability
• Accessibility
• Substantiality
• Profitability
• Actionability
25

26. Bases For Consumer Segmentation
Most
Usage Behaviour appropriate for
Volume, Price, Usage Frequency planning in
stable market
conditions
Judgmental Data
Better guide to
Attitudes, Perceptions, Motivations, behaviour
Preferences under changing
market
Market Descriptors conditions
Demographic, Socio-Economic,
Geographic, Lifestyle, Family life cycle
26

27. Bases for Business Segmentation
Macro Micro
 Size  Product
 Location  Applications
 Usage rate  Technology
 Purchasing and decision-
making processes
 Buyer-seller relationships
How are these criteria changing?
27

28. Do we know enough about our most
dangerous competitors?
28

29. Competitor Analysis is Getting Harder...
 We live in a world of hypercompetition
– A dynamic competitive environment, in which no
action or advantage can be sustained for long
 Competition unfolds in a number of key areas
which we need to monitor amongst our
competitors
– E.g. price, quality, know-how, entry barriers, and
how deep their pockets are
29

30. Knowing Your Competitors
• Need to focus on identifying threats, opportunities or strategic
uncertainties created by existing or potential competitors
• Major steps:
1. Identify current and potential competitors
2. Understand competitors and their strategies
30

31. Value Analysis:
Competitor
Benchmarking
31
Hollensen (2011)

32. So overall, we need to know about three
key information areas
1. Information on the market environment
– E.g. PESTLE factors (Political, Economic, Social, Technological,
Environmental, Legal)
2. Information on customers
– Customer identification
– Customer characteristics & segments
– Main influences on what, where, when and how they buy the
product or service
3. Information on other organisations
– Gathering information on competitors and their actions
– Comparison of performance to identify strengths and weaknesses
32

33. Key Methods of Finding Out What we
Need to Know
 Market research - market and sales forecasts / sales
potential
 Product research - R&D and product testing
 Attitude measurement
 Price research - price perception and sensitivity
 Distribution research
 Marketing Communications research
 Tracking studies e.g. customer satisfaction
33

34. Collecting Secondary Data
Internal • ccounting /
A
sources sales records
• arketing
M
database
Collection of
• eriodicals
P
secondary
data • ensus reports
C
• overnment
G
External publications
sources • nternet
I
• ther
O
34
Dibb et al, 2006

35. Collecting Primary Data
• ersonal
P
OBSERVATION
• echanical
M
Collection
of primary • ail
M
data • -mail /Internet
E
SURVEYS • elephone
T
• ersonal
P
35 Dibb et al, 2006

36. Internal Secondary Research Sources
 Customer databases – behavioural data, volunteered data
and profiling data
 Sales figures
 Operational data – stock levels, etc
 Customer satisfaction results
 Advertising spend
 Customer complaints records
 Effectiveness data from promotional campaigns
 Marketing research reports from past studies
36

37. External Suppliers of Market Data
 List compilers/brokers
– Capture list of individuals and organisations and sell them to
companies for marketing purposes
 Full-service agencies
– Offer a full range of research services and techniques
– Able to undertake every stage of the research (research design
through to analysis and report writing)
– Examples: TNS (www.tnsglobal.com), Ipsos (www.ipsos-mori.com)
 Independent consultants
– Offer a range of services from undertaking small surveys (B2B),
manage parts of marketing research process or advise on
information collection, storage and retrieval
37

38. External Secondary Research Sources
 Internet search engines
 Social media and networking tools
 Directories – Dun & Bradstreet, Financial Times company briefings
 Governments and Government Agencies (e.g. CIA Factbook)
 Published marketing research reports
 Trade Press (Editors and Journalists)
 Professional Institutes (CIM)
 Newspapers and magazines (national and local)
 Online news sources and aggregators (www.newsnow.co.uk, http://
uk.reuters.com
 Specialist libraries
 Market Research Agencies
38

39. Sources of Information - Institutions
 Business libraries  Export councils
 University libraries  Distributors
 Chambers of commerce  Sales subsidiaries
 International Market  Foreign trade organisations
Intelligence Centre (Trade such as JETRO (Japanese
Partners UK) Export Trade and Research
 Business Links Organisation)
 Embassies
 Banks
 Trade associations (CIM,
IOD, CBI)
39

40. Online Sources of Information & Socialnomics
 Online communities, discussion
boards and blogs
– Increasing number of blogs and
discussion forums present marketers
with an opportunity to gain valuable
insight into thoughts of consumers
 Social networking e.g. Facebook,
Twitter, LinkedIn
– Provides an opportunity for
organisations to:
• Gauge consumer reactions to
marketing campaigns
• Monitor brand reputation
• Analyse competitors
• Gather insightful market research
40
AVG SMB Market Landscape Report 2011

41. Using online customer intelligence
41

42. Sources of Information - Online Databases
 Brand data
– www.brandchannel.com
– www.gbrands.com
– www.globalstrategies.com
 Business Week
– www.businessweek.com
 The Economist
– www.economist.com
 European Union
– www.europa.eu.int
 UK Trade and Investment
– www.uktradeinvest.gov.uk
 UK Chambers of Commerce
– www.britishchambers.org.uk
 United Nations
– www.un.org
 World Bank
– www.worldbank.org
 World Fact Book
– www.cia.gov/cia/publications/factbook
42  World Trade Organisation
– www.wto.org

43. Primary Research Information
Focus groups
In-depth interviews
Surveys
Observation
Experimentation
43

44. Omnibus Surveys
• Organisations pay to include one or more questions in a
survey being sent on behalf of several organisations.
• Much cheaper means of surveying if only a few questions
are needed.
• BUT the client is restricted by the sample that the
research company uses and cannot choose where its
questions appear in the survey.
• Omnibus survey suppliers vary by sector, geographical
coverage, costs, sample size, speed of turnaround, etc.
 E.g. http://www.yougov.co.uk/omnibus
44

45. Panels
• Used to collect data over a period of time from the same sample of
people.
• Useful for analysing trends, changing attitudes to political parties,
preferences relating to new types of products or ways of purchasing
e.g. online banking.
• Challenges include retaining the members of the panel over time and
careful replacement of members who drop out.
• Online survey panels are increasing in popularity and will often recruit
a large number of respondents from which it will sample to fulfil client
quotas
 www.toluna.co.uk
45

46. Online PR
Objective
• Increase the number of online conversations about your
brand
• Drive targeted traffic to your website
• Increase your thought leadership position
What is it?
• Social Media
• Social Bookmaking
• Blogging
• Microblogging
• Forums
• Video Sharing
• Photo Sharing
• Podcasts
46

47. Other free sources of market information
 Freebie market research websites
– www.researchandmarkets.com
– www.marketresearch.com
– www.theregister.co.uk
– www.techdirt.com
– www.lightreading.com
– www.totaltele.com
– www.brandrepublic.com/
– www.b2bm.biz
 Market research agencies
– E.g. GFK, B2B International, Circle Research etc. – all publish free white papers / blogs with
market insights
 Free survey tools
– www.surveymonkey.com
– www.surveyz.com
 Discussion forums offering free market research
– www.freemarketresearch.co.uk
47

48. Free sources of market information
 Official market statistics
– www.fao.org – United Nations import / export data
– www.ilo.org – international labour data
– www.imf.org – international economic data
– www.intracen.org – international trade statistics
– www.worldgazetteer.com – international city, country & population data
– www.statistics.gov.uk – UK business and consumer data
– www.bankofengland.co.uk - UK financial information
– www.hm-treasury.gov.uk – UK economic indicators and forecasts
http://www.youtube.com/watch?v=xTDN8cgCP3o
48

49. So Do We Now Know More About Our
Market Than It Knows About Us?
If not – let’s get researching!
49

50. Thank You! Questions Welcome!
50

51. Innovate with Intelligence:
Latest Digital Marketing Techniques
Daniel Rowles

52. Who Am I?
• Daniel Rowles
• CIM Course Director, Lead trainer for Econsultancy
• 14 Years experience in digital marketing
– Both client and agency side
• BBC, Vodafone, MasterCard, Warner Bros, Boots,
John Lewis, Aviva, Sony
• @danielrowles

53. Show of Hands…..
Google (or any other) Analytics
Facebook
LinkedIn
Twitter
Pinterest
Google+

54. What I’ll Cover
• Latest changes
• Planning
• Measurement (and pitfalls)
54

55. Digital Marketing in Perspective
• 8 years of video are uploaded to YouTube every day
?
• Average view time of a YouTube video is 2.5 seconds
?
?
• The average Facebook user is 38 years old
• Google+ to reach 400M members by end 2012
?
• 92% of US children have some sort of web presence by
?
the time they are 2 years old
• All Stats from http://www.google.co.uk/intl/en/landing/internetstats/

56. http://www.google.com/insidesearch/plus.html

57. Bing Social Sidebar

58. Social Proof

59. Google Privacy Policy
‘we can tell you that you’ll be late for a
meeting based on your location, your
calendar and the local traffic conditions.’

60. Volume-based metrics
• 10 Million ‘Likes’!
• What does that mean?
– Engagement
– Sentiment
– Share of Voice
– Revenue

61. EdgeRank

63. Google Goggles and visual search
http://www.google.com/mobile/goggles

64. Recognzr
http://www.tat.se/

65. SocialMention.com - FREE

66. Viralheat

67. Radian6

68. Share
Listen
Content
Build
Relationships

69. Engagement in action

70. Considering
objectives
• Sell Products/Services
Goal
• Create Awareness and
Objective Engagement
• Share of Voice
Measure • Audience Engagement
Tactics

71. Meaningful Information
Mentions of Brand
Share of Total Mentions
Voice Competitors and
Brand
Audience Comments
Engagement Views

74. The Dangers of Last Click
Email Search Conversion
Search Conversion

75. Multi-Channel Funnels

76. Rule for Magnificent Web Success
• For every $10 spent on analytics data
• Spend $90 on people to tell you what it means
• Avinash Kaushik - Google

77. The path to ROI
SEO
Affiliates Email
Custom
Dashboard
Social
Display
Media
PPC CRM

78. Same Fundamentals Apply

79. http://www.youtube.com/watch?v=CvVp7b5gzqU

80. Conclusions
• Set objectives
• Select appropriate channels
• Measure, engage and improve

81. Thank you
• @DanielRowles
• danielrowles@me.com
• www.targetinternet.com

82. Thank You
82