We had a rare weather event in Atlanta last week. Six inches of snow followed by freezing rain
that left another inch veneer of ice.
Schools were closed all week. People
were stranded in cars on the interstate; sliding into light poles… and each
other. I simply got in my Land Rover,
put in 4WD Hi Lock and drove to work and all over town. I was able to do this because my vehicle is
designed and geared for all terrain navigation.
My wife drives a sleek, black sedan. Its rear wheel drive handles great on dry
pavement, and you only have to think about accelerating and before you know it
a friendly officer has his boot on your bumper and is writing down your license
plate. My wife’s car couldn’t get out of
our icy driveway for three days. It’s designed and geared for a smooth ride and
rapid acceleration. I’ll never win a
drag race with my Land Rover, but it’s great for pulling a boat or getting you
to a duck blind.
What does this little analogy have to do with Market
Research and Strategy? We’ve recently
been interviewing to add depth to our market research staff. The market research professionals we have interviewed
have been very qualified, but their experience is mostly limited to consumer
markets. They are used to running
multiple surveys on thousands of respondents and crunching the data with
routine analytical techniques. When we
demonstrate the depth and breadth of research and analysis we perform on
b2b/industrial markets, and the time we take to understand technical applications
of industrial products and services, they are overwhelmed.
The reality is that over 90% of market research firms do
over 90% of their work in consumer markets.
That’s what they are geared for.
Frankly, they would run circles around us conducting cola taste tests
or determining what kind of toothpaste dispenser consumers might prefer. We have the capabilities to do most consumer research,
but we are not geared for it and would likely not be very efficient or
economical at doing it. At the same
time, most of these firms do not have consultants on staff with industrial
manufacturing backgrounds or strategy formulation experience. They simply run in a different gear.
B2B/Industrial market analysis is different in many ways from
consumer and I have talked about some of these distinctions previously in this
blog. But one important characteristic
is the need to have experienced personnel that know how to access difficult to
reach decision makers like a material engineer with influence over choosing a
specific type of composite material buried deep inside a Fortune 500
manufacturer; or to determine the myriad of decision-makers over effluent water
treatment; or to be able to determine the best market positioning for a
particular type of pressure vessel manufacturer. B2B/Industrial consultants need to be able to
combine research, analysis, and strategy formulation. They don’t often know much about toothpaste,
but they know the difference between a butterfly valve and a gate valve. They can run multi-variant analysis as well as a consumer research professional, but they also know how to convert insights into strategy.
My wife used to think my Land Rover was ugly. She often complained when she had to step up
two feet into the cab while wearing a dress.
But she didn’t complain last week when I drove her to work. Industrial firms know that matching the right
material, product, equipment or solution to the right application is the key to
sales and marketing success. When
choosing a market research and strategy partner, the same philosophy should
apply. You wouldn’t use a bushing when a
spherical roller bearing is called for.
Don’t select a consumer firm to analyze industrial markets unless you
are concerned about how white your teeth are.
Mark Towery
Managing Director
Posts
You make a compelling case for using a B2B expert as a strategic partner.
ReplyDeleteDo you agree, however, that the process for finding a true competitive advantage should be similar -- whether the product is a consumer or industrial one? Maybe consumer marketers don’t compare to Geo Strategy Partners for B2B because:
1. Most consumer marketers are not curious enough. When they hear the word “butterfly valve,” their eyes glaze over. Instead of saying, “I’d love to learn more about valves,” they say, “I’d rather just work on toothpaste.” They may lack the imagination needed to solve problems in unfamiliar territory.
2. Some consumer researchers are also a bit lazy. They won’t do the hard work it takes to understand a technical product. In truth, many consumer marketers don’t know as much about toothpaste as they think they know. They prefer “winging it” to digging deep through that pile of secondary research. Consumer marketers sometimes also rely on their own experience as a substitute for exploring the real psyche of the target market. With B2B, that shortcut is often not possible.
3. Many consumer product marketers prefer to work on “sexy” products they can brag about to their friends and family. They like to point to the television and say, “We were the ones that conducted that cola taste test. The whole campaign relied on our research.”
4. Finally, consumer based marketing professionals follow the heard – just like the consumers they are targeting. Consumer marketers think: “If 90% of the firms work on consumer based products, consumer products must be the best place to work.” In their own practices, they forget about the power of niche marketing.
I am a marketer with a consumer-based history who is also a curious, hard digger for information. I get excited about obscure and unfamiliar products. The idea of developing a unique niche in B2B appeals to me -- especially because the herd of consumer marketers will not be there.
Mark, I have forwarded my resume to your human resources department. I hope we might be able to talk about ways I could create value at Geo Strategy Partners.
Thank you,
Lee McComb
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