Transcript Lecture 5 py sensing (2)

Strategic thinking and
thinking strategically
Market
sensing
and
learning
strategy
Strategic
market
choices
and
targets
Customer
value
strategy Strategic
relationships
and
positioningand
networks
Strategic
transformation
and strategy
implementation
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Developing a value-based marketing strategy
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Market sensing and learning strategy
Strategic market choices and targets
Customer value strategy and positioning
Strategic relationships and networks
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Market sensing and learning strategy:
Competitive strength through knowing more
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Understanding customers and markets
Black swans and white swans
From market research to market sensing
New cross-over tools for management understanding
Marketing intelligence
Interpretation
Lessons in learning
Enhancing sensing capabilities
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Companies have little understanding of why their customers
behave the way they do
Executives looks at averages and ignore market granularity
Agile, fast-moving businesses show high knowledge-intensity
The goal is to raise a company’s “Market IQ”
Crunch question = what do you know that every rival does not
also know?
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The black swan analogy underlines the
limitations to our learning and the fragility of
our knowledge
Black swan events are the “unknown
unknowns”
Market sensing demands open-minded inquiry
and experimentation not probabilistic estimates
and sampling
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What is the difference between market sensing
and marketing research?
marketing research involves techniques of data
collection and processing
 market sensing is a process of management
understanding
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Sources of marketing knowledge
Internal records Management
information
CRM data
systems
Databases
Surveys
Observation
Market tests
Processes of management
understanding
Interpretation
Marketing
research
Market sensing
capabilities
Ethnography
Internet
Futurology
Cross-over
tools
Scanning
Trends
Clues
Marketing
intelligence
Market
understanding
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Limitations of conventional market research
unreasonable expectations
 the limits of questions
 the “right” results
 we don’t believe it
 excuses
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The elephant in the market
Strategic and non-strategic marketing
information
Importance of information
High
Low
High
Priorities
Short-term
dilemmas
Strategic
Time
wasters
Urgency of
information
Low
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Finding out what customers want a product or
service to do for them
Solves customers’ problems
Rather than asking a customer what they think
of this product or service, the customer should
be asked what they like, or don't like, about a
particular experience.
Source: Shape the Agenda (2004) The Creative Dilemma: Successful
Innovation in fast-changing markets,(3) Cookham, Chartered Institute of
Marketing
'Companies that target their products at the circumstances in which customers find
themselves, rather than at the customers themselves, are those that can launch
predictably successful products. Put another way, the critical unit of analysis is the
circumstance and not the customer.‘
Clayton Christensen, author of The Innovator's Solution
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Customers experience life as a series of 'jobs' that they need to get done.
'Jobs' can be actions ranging from washing your hair or cleaning your teeth, up to
getting your finances sorted or communicating across the globe in a shorter space
of time.
Finding out what those jobs are leads to value innovation, rather than asking how
what we've got already can be better made to suit the customer's desires.
Source: Shape the Agenda (2004) The Creative Dilemma: Successful Innovation
in fast-changing markets, (3) Cookham, Chartered Institute of Marketing
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Ethnography
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hidden in plain sight
neuromarketing
Internet sensing
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the wisdom of crowds
blogs
virtual reality
social networks
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Uses long periods of observation of people in their 'natural
habitat‘
Closely watching people in their everyday life
Example: mobile phone usage.
You get an unemployed single mother using it as a sanction - "if
you don't behave I won't give you any money to top up your
mobile."
You might get that kind of insight from a focus group but you'd
need a really good question.
Source: Shape the Agenda (2004) The Creative Dilemma: Successful Innovation in fast-changing markets,
(3) Cookham, Chartered Institute of Marketing
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Futurology
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careful examination of what is going on around us
scenario building – how things may unfold
visioning – working out what is likely to happen and
what we want to happen
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Trends and clues
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trendspotting
new identity groups
the quest for cool
looking for clues
deep mining
But play nicely and don’t be naughty
Managing customer knowledge
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Link between information, sensing and
management understanding relies on processes
of interpretation
Integration of multiple information sources
central to evidence-based management
Goal is sustaining learning to create
competitive advantage
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Storytelling
Watching customers
Meeting customers
Customer days
Building customer scenarios
Listening not evaluating
Studying complainers
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A structure for market sensing
Probability of the event occurring
High
Medium
Low
7
6
Effect of the
event on the
company*
Field of
dreams
Utopia
5
Things to
watch
4
3
2
Danger
Future
risks
1
* 1=Disaster, 2=Very bad, 3=Bad, 4=Neutral, 5=Good, 6=Very good, 7=Ideal
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Managing the market sensing process
 choosing the environment
 sub-dividing the environment to focus attention
 identifying the impact of external changes
 interpreting the model for strategy building
 Linking market sensing to plans
 providing information as a stimulus to thinking
 consider who should be consulted and involved
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A note of caution
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market sensing and new learning may be disruptive
inside an organization
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Don’t trust any research – at all – none –whoever
does it – however much it is “justified”
Don’t trust it
When any research clashes with common sense
and personal experience interrogate the research to
death
Trust (not unquestioningly) research on past
events – for guidance
Never trust research on “intentions”
Treat with huge pinch of salt research on attitudes
NEVER MAKE A DECISION ON QUALITATIVE
RESEARCH - ESPECIALLY FOCUS GROUPS
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Do research yourself wherever possible
Use it for ideas, directions etc FOR FURTHER
EXPLORATION