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INTERNATIONAL MARKET RESEARCH The New Horizons Warsaw, October 17, 2003.

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Presentation on theme: "INTERNATIONAL MARKET RESEARCH The New Horizons Warsaw, October 17, 2003."— Presentation transcript:

1 INTERNATIONAL MARKET RESEARCH The New Horizons Warsaw, October 17, 2003

2 Market Research: ADDS VALUE TO BUSINESS AND SOCIETY CONNECTS DEMAND & SUPPLY –TRANSPARENCY –EFFECTIVENESS –EFFICIENCY CONTRIBUTES SOCIAL/OPINION INSIGHT TO QUALITY OF SOCIETY The Market Research Profession

3 SCIENTIFIC ROOTS …..MARKETING RESEARCH BECAME AN INDUSTRY In 2002 GROWTH OF WORLD MARKET TOWARDS USD 17 BILLION (EURO 18 ) EUROPE : USD 6.3 BILLION (EURO 7.3) POLAND : USD 81 MILLION (EURO 86 ) EMERGING EXTERNAL CHALLENGES The Market Research Industry

4 EXTERNAL DYNAMICS DRIVE CHANGE INTERNATIONALISATION ICT/TECHNOLOGY DIFFERENT REQUIREMENTS NEW ENTRANTS/COMPETITORS LEGISLATIVE PRESSURE The Market Research Industry

5 TRANSFORMATION WITHIN THE INDUSTRY Changing hands : take overs /acquisitions (concentration) Shifts within data collection methods (mail /phone – down; direct registration /online-up) Widening scope: combination/ integration of information (re-packaging) Increasing focus : data capture and decision making support Growing opportunities: bundling/interpretation Renaissance of the client side

6 Renaissance of the Client Side? …radical improvements will be increasingly demand driven (demand pull) 1000 top clients already spend 80% 65% of their budgets go to 25 companies For Best Solutions they will not wait for a top- provider (in-house, outside, new entrants) …pressure to adapt current MR business model

7 Future Developments 5 – 10 years down the road Consulting companies will take over territory of market research providers, turning these providers into mere data- providers Respondent cooperation will dramatically decrease Internet research will revolutionize the business Market research data will be more integrated with CRM-data Market research will become more important because of greater incorporation in companies strategic planning Clients will require far more creativity and business intelligence from providers Providers (n=1099)Clients (n=272) Selection of up to 3 future developments out of %

8 A different type of Market Research emerging… From Risk-Aversive MR Go/No Go Type of research Monitoring Type of research To a more Strategic one Needs-driven Insightful Type of research

9 Can We Do It? What we say will happen in next 10 years Don't know Traditional market research will disappear No change and same issues as today More partnerships between clients and providers Division between data providers and market research consultancies Providers (n=1099Clients (n=272) %

10 The Current Business Model….. Characteristics: Huge investments in data manufacturing Value based on data delivery (tracking, syndicated, simple ad hoc) Focus on shareholder growth/profit * Source: The Profit Zone, Slywotzky & Morrison The Traditional Value Chain* rapportage onderzoek Product/Service offering Inputs, Raw material Product / Service Offering Channels The Customer Assets/Core Competences Traditional Phases of Development in MR (large and medium sized companies) build up research technology/ build data factory add local/ regional competence add domain- specific/ sector competence add marketing competence (pre-structured solutions/acc.mgt)

11 Reputation vs. Margin Dominant Business model: does not support Best Solution/ Consulting Services if they do not help sell data. focuses on increasing factory load & coverage Helps to sell products and syndicated services Business Insights Data Delivery Business Insights Data Delivery The amount of reputation The amount of profit

12 …. change of rules of the game rapportage onderzoek Product/Service offering Channels Product / Service Offering Inputs, Raw material The Customer Assets/Core Competences MR Industry to Innovate: Improve value add ….and move to a much wider context: from data management to decision facilitation (using variety of sources…..meeting demand for actionable insights) Reverse value orientation: transform business model Change in take-off phase

13 NEW HORIZONS Re-Define the Market for MR Develop New Business Models Address Industry Issues Pro-actively

14 Re –define the market for MR OPPORTUNITIES

15 OPPORTUNITY Re-define market Explore new, wider horizons Understand different needs Be creative / re-position Cooperate and/or join forces ConsumerDistributionCompaniesRepackaging Research Process

16 Develop new business models OPPORTUNITIES

17 FIERCE FIGHT FOR ADDED VALUE ACROSS THE BUSINESS SYSTEM ConsumerDistributionCompaniesRepackaging Research Process -Consumers get organized -Research providers re -define roles -Client companies on the move -New players focus on re-packaged insight DEVELOP NEW BUSINESS MODELS

18 Address industry issues proactively OPPORTUNITIES

19 INDUSTRY ISSUES How to move successfully to the new era? Relevancy? Legislative concerns? Representation public at large? Concerted industry action? One message, one voice? Standards of quality performance? Quality of research? A quality sample? A quality panel?

20 ADDRESSING INDUSTRY ISSUES? There is a need to address external challenges, align main players within the industry and ensure adequate standards of performance. Orchestration is vital: ESOMAR in the lead, close cooperation other MR organizations ESOMAR: European origin, scale worldwide; individual membership; focus on representation, standards, professional development and industry initiatives.

21 INDUSTRY INITIATIVES? THE EXTERNAL CHALLENGE EXTERNAL RELEVANCY/ REPRESENTATION? CREATION OF THE ALLIANCE FOR RESEARCH (ESOMAR, Efamro – 2002) OFFICE IN BRUSSELS: PROMOTING THE BENEFITS OF RESEARCH- / SELF REGULATION The Marketing Research Industry

22 INDUSTRY INITIATIVES? CONCERTED INDUSTRY EFFORT ONE INDUSTRY, ONE VOICE? ALIGNMENT OF LEADERS & ASSOCIATIONS IN WIN (2003) WORLD INDUSTRY NETWORK (Facilitators: ESOMAR, ARF) SET UP: -flexible platform, global scope -bi-annual schedule -agenda for action (key condition for success) The Marketing Research Industry Clients, Providers Associations

23 INDUSTRY INIATIVES? PERFORMANCE STANDARDS STANDARDS OF PERFORMANCE ARE THE LIFEBLOOD OF AN INDUSTRY, HOW TO ENSURE CONTINUITY? SET UP QUO VADIS PROJECT (ESOMAR, IN CLOSE COOPERATION WITH INDUSTRY SPECIALISTS -2003) AGREEMENT ON PRINCIPLES, RE-CONFIRMATION CODE, ADAPTATION OF GUIDELINES The Marketing Research Industry

24 HORIZONS/OPPORTUNITIES Re-define the market for MR Address industry issues pro-actively Address industry issues pro-actively Develop new business models

25 Thank You !


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