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September 8, 2015
The 5 Keys to Market Research That Most Companies Miss
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Strategic alignment, however, starts with market research. Market research feeds down from the top of the revenue growth chain. But it must feed down in this order to be effective:
- Corporate strategy
- Product strategy
- Marketing strategy
- Sales strategy
- Talent strategy
Yes, your marketing strategy is in the middle of that chain. Read on to better understand how market research affects each strategy in turn. Market research must feed these 5 strategies for them to align successfully and drive revenue growth.
Corporate Strategy:
Market research results must first serve as the input to corporate strategy. All the other functional strategies will stem from this. Corporate strategy leads the charge.
Market research gives corporate executives ongoing input from the market. You can uncover how buying behavior is changing, and what competitors are up to. This information enables you to better allocate the company’s people, time and money.An effective corporate strategy must be in sync with the external market. Without this alignment, corporate strategy will fail to be truly customer-focused.
Product Strategy:
Product strategy can only be successful when it solves market problems of target users. Market research uncovers those problems. It also helps the product team to know which product investments to make.
Product strategy that is divorced from the needs of the marketplace is ultimately wasteful. It wastes company time, money and talent – and it prevents strategic alignment. Market research enables Product Management to focus on creatingneeded solutions for attractive markets.
It’s also important that target buyers can actually buy the products. Market research will answer that question and help the product group make critical decisions.
Marketing Strategy:
Your marketing group’s goal is understanding how to compete for attention in the marketplace. So grounding marketing strategy in market research is a smart move.
Market research provides insight that helps marketers build demand for the products. It helps your marketing group know how to stimulate buyers and generate leads. It also helps them focus on desired accounts.
Research is also paramount in testing KPIs, such as conversion rates. Using market research, Marketing can discover what messaging is working, and what is failing. Then they can adjust course and create more productive campaigns.
With market insights, Marketing can run campaigns in the most suitable segments. They can allocate limited resources more effectively. They can pursue more profitable market channels.
Market research insights enable your marketing team to take advantage of thebest opportunities.
Sales Strategy:
A sales strategy that stems from market research allocates sales resources more effectively. It also determines the right accounts to pursue and how to engage buyers.
Market research drives a better understanding of customer behavior and buying patterns. It identifies characteristics and preferences of target customers. These insights help Sales communicate the unique value propositions of products and services.
Research helps Sales leadership make important decisions, including territory management and sales territory mapping.
Marketing typically takes the lead on market research, so it’s also an alignment enabler. Sharing insights is a way to help Sales and Marketing work together. When aligned, Marketing finds better leads, which then more easily turn into sales revenue.
Talent Strategy:
The final link in the revenue growth chain is talent. Talent strategy decides what talent is needed to execute the other strategies.
When you understand your market through research, talent strategy is easier to establish. You can put the right people in the right positions to drive sales revenue. When you understand your market, you know what talent will make an impact where.
To uncover what skills are needed in your marketing department, first understand the market.
When market research guides talent strategy, it is better aligned with the external market. With this alignment, the market will reward the company with revenue growth.
Success Comes from Aligning These 5 Strategies with Market Research:
Aligning these five strategies with market research is critical to hitting your number. Without first understanding the market, you cannot create strategies that work. You cannot put the right resources in the right places. You cannot know the smartest investments to make. Market research should be your first stop in strategy formation.
We go into more detail about strategic alignment in our latest research report. Better yet, register for a one-on-one Workshop with an SBI expert. We’ll walk you through the report and offer actionable recommendations. Click here to schedule your Workshop.
