About 15 years ago a client asked me if market research could forecast which colours would be popular. To me this was preposterous but I did try to imagine consumers sitting around a focus group staring at colour palates and....doing what exactly?
I finally heard a “colour forecaster” talking intelligently and compellingly about the process for selecting the Pantone “colour of the year” (Honeysuckle – for 2011). It’s all about the "narrative” and getting the story right: "In times of stress, we need something to lift our spirits. Honeysuckle is a captivating, stimulating color that gets the adrenaline going – perfect to ward off the blues".
The Strategic Perspective on B2B Trends
Ralph Oliva has recently presented the much awaited ISBM Trends 2012 Study: Business-To-Business Marketing Trends and Best Practices. Ralph doesn’t make bold predictions either; he and the ISBM research group focus on capturing how B2B marketers think and feel about the future.
The “Trends” study was initiated in 1997, is conducted every two or three years or so, is U.S.-based but reflects much of the mood among Canadian B2B marketers. The 2012 study identifies seven trends with two dominant themes: understanding and communicating (effectively) with customers; secondly, identifying opportunities for growth. Ralph Oliva discusses these trends in great depth,and in most cases, points to background materials and readings which can provide a better understanding of the “narrative”.
#1 Trend – The need to more effectively quantify and communicate value created for customers – the need to “bring a more holistic value proposition to customers” and quantify and communicate value propositions. A recurring theme for the ISBM Group with a twist – today’s customers may estimate the cost of “receiving” a sales call from a supplier; the onus is on the supplier to exhibit “enough value for customers to even make time to meet with you".
ISBM recommends a book called Value Merchants: Demonstrating and Documenting Superior Value in Business Markets (Kellogg; Kumar).
And a new book on the scene: Winning With Customers – A Playbook for B2B. The authors (Pigues; Valkyre) introduce a different perspective on value propositions – “Do your customers make more money with you than your competitors?”.
#2 Trend – Developing approaches to better understand what customers really need --- another recurring theme but with emphasis on “anticipating the shift in the way customers do business and...uncovering fundamental needs and creating exciting offerings that are not considered ‘me too’.
The ISBM Group concedes that most Voice of Customer work has “room for improvement” – but recommends the work of Abbie Griffin the originator of VOC and author of PDMA Toolbook.
#3 Trend – Finding, “sensing”, identifying and assessing new opportunities for growth – this is the new reality for B2B marketers in understanding that: we are NOT returning to “the way things were”; marketers have to play a role in assessing market opportunities in new geographic areas or rebuilding old industries and fronting product development and innovation.
How to Grow When Markets Don’t and The Upside are two recommended readings from ISBM (both authored by Slywotsky): the latter focuses on how to “shape and exploit risk rather than being shaped by events” and how to turn threats into strategies.
#4 Trend – Developing closer ties with customers, suppliers, channel partnerships --- this aspect is growing in importance and involves the ability to discern when to “compete” and when to “co-operate” with other members of the supply chain. However the elephant is the room (from my perspective) is a better understanding of the role of each member in any supply chain vis-a-vis the customer.
There are two ISBM recommendations in this area: Build, Fix or Terminate – The Distributor’s Guide to More Profitable Supplier Relations (Narus; Forest). Plus a book the ISBM book refers to as the bible of B-to-B alliances: Alliance Competence. (Spekman).
#5 Trend – Capitalize on new growth/emerging markets – this trend was positioned higher than ever before and represents the need for economic growth (which is a serious problem domestically in North America).
#6 Trend – Balancing short-term requirements and long-term opportunities – the themes include maximizing today’s value while investing for tomorrow; transitioning to the new reality; rebuilding marketing organizations. The ISBM organization points to a book published by Inder Sidhu at Cisco titled: DoingBoth – How Cisco Captures Today’s Profit and Drives Tomorrow’s Growth.
#7 Trend – Segmentation – selecting the right set of customers for your business (and managing them effectively) – during the recession segmentation took a back seat to the thinking that: “any customer is a good customer”; which led to increased competition and price sensitivity and decreased profits.
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