What’s New at VantagePoint

CERTIFICATION:

Kristin Ambory, a VantagePoint Team Leader, has successfully met all of the requirements to be designated a Certified Business Communicator (CBC) by the Business Marketing Association. This credential recognizes the highest standards of professionalism, education, experience, and professional conduct in the field of business-to-business marketing and communications. Ambory, who is responsible for planning and overseeing the implementation of marketing communications strategies for national clients in a variety of manufacturing industries, is among a select group of professionals to receive this certification.  

STAFF ADDITIONS:

David Herder, VantagePoint’s new Technical Writer, is responsible for developing highly technical resource content for key strategic initiatives, including instructional web-based distance learning, industry-specific white papers, product profiles, and other technical documentation for key VantagePoint clients. 

Nicole Turner has joined VantagePoint as a Market Research Specialist. She will be primarily responsible for providing primary and secondary research services for VantagePoint clients.

PROMOTION:

Gwen Sandiford, who joined VantagePoint in 1997, has been promoted to Senior Account Coordinator. Currently responsible for account coordination and project management for key clients, Sandiford now has the added responsibilities of overseeing the Account Coordinator positions, the project management system and processes, and training personnel in related areas. 

Market Understanding: The critical first step to successful marketing 

Quite often, failed or poorly executed marketing programs can be traced to a fundamental flaw: lack of market understanding. With today’s frantic pace of business, the demand for quicker financial returns and increasing competitive pressure, the need to “act” is understandable. But implementing strategy and associated tactics with anything less than a crystal-clear understanding of the market increases cost, lessens efficiency and often, sets the stage for competitor gains. 

What do we mean by market understanding? It really comes down to answering several fundamental questions: 

How large is the market?  Is the market $5M or $50M? Typically, using a range of size (e.g. $47M-$52M) provides sufficient clarity on the scope of the opportunity. Spending too much time on defining a specific number (e.g. $51.3M) can waste precious time on identifying a figure that is generally based on multiple assumptions from numerous sources.

1. How many segments are within the market--including their size, and which represents the best targets?  A common mistake is in assuming the “market” is homogenous, when quite often it is comprised of multiple segments with varying sizes and differing values on your product and/or service. Be realistic--not all segments are created equal or are desirable targets.
   
   
2. What are the trends affecting the segments--growth, industry consolidation, product usage and/or substitution--and what drives the market? Trends can be visible in many forms; published data from industry sources usually spot macro trends, but often trends can be more subtle. The declining status of customer loyalty, change in size and/or frequency of orders, types of new products and/or technology introduced (or not) by the competition, and shifts in the role of channel partners are types of trends that may not be apparent at first glance, but may be more telling than highly visible, macro trends.
   
   
3. Who are the leading competitors? Competitors are usually a highly visible and closely followed group. Depending on the nature of the competitor (public vs. private), information can be readily available or tightly guarded. Ongoing collection and analysis and centralized access are key traits of a successful competitive overview.
   
   
4. What channels are used to access the market? Depending on the market, channels may vary by market segment--direct sales into one segment, two-step distribution into others. Channel partners can “make or break” a marketing strategy. With two-step distribution--the channel has more contact with your customers than the manufacturer--how do you support, train and stay in touch with the channel? What do you hear from the channel on market dynamics and how does it compare to your own research?

Market understanding can be tedious work; it is dynamic in nature but fundamental to providing clear understanding of scope, size and designated targets. Developing market understanding provides: 

• Clarity of targets
  
  
• Focus of marketing efforts
  
  
• Better utilization of marketing budgets
  
  
• Realistic financial picture of opportunity
  
  
• Insight into issues of brand architecture needs and strategy
  
  
• Understanding distinction between channel opportunity and channel conflict
  
  
• Potential for cross-selling and marketing opportunities

Most importantly, comprehensive market understanding allows resulting marketing strategies and tactics to be more focused, with ultimately better implementation and quicker uptake on the identified opportunity. VantagePoint understands the critically important value of true market understanding as the essential first step to successful marketing in any business, including yours.

We partner with many key clients who have leveraged our expertise in this area, and we would enjoy helping you to get a better understanding of your market. Contact us today to learn more about how we can help you reach this degree of clarity and understanding that will serve as a strong foundation for your evolving business.   

Tech Marketing Spending Up

Source: Services Marketing Budgets and Benchmarks, 2006 Budget Allocations and Trends

Marketing Performance Management Survey