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Best Practices, LLCStrategic Benchmarking Research

From Classroom to Boardroom:Training Can Propel Market Researchers

from Order-Takers to Trusted Business Advisors

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Table of Contents (of full report)

Executive Summary 3 Research Overview 4

Participating Companies 5

Key Findings 6

Key Trends Observed 9

Market Research Must Undergo Transformation: Training Can Help 10

Market Research Skills Training 14

Effective Approaches & Tools 21

Increased Outreach Requirements Drive Training Differentiation 32

Program Sustainability Is High Priority in Time of Flat Budgets 40

Operations & Effectiveness 52

Case Examples & Proven Practices 57

Pitfalls to Avoid & Key Lessons Learned 61

Market Research Training Excellence 64

Verbatim Responses: Pitfalls, Lessons Learned & Best Practices 67

Appendix: Participant Demographic Data 75

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Topics IncludedStudy Overview

Skills for which MR training is provided

Training Channels most effective for MR

Percentage of MR FTEs trained

Differences between MR training for headquarters vs. regional staff

Average MR training budget

Anticipated trend in budget levels for MR training in the next 12-24 months

Primary funding sources for MR training

Average # MR FTEs

Key Ratios:

Cost of training per FTE trained

Hours of training per MR FTE

Training spend as % of MR budget

Best Practices, Pitfalls & Lessons Learned

Research Objective: This cross-industry study investigates how Market Research (MR) organizations at leading companies are training staff effectively in today’s environment of increasing globalization and shrinking resources.

Research findings provide industry metrics that can serve as a reference point for MR leaders in future budgeting and strategic planning.

Methodology: Best Practices, LLC engaged 41 Market Research & Training leaders at 35 companies through a benchmarking survey instrument. In addition, research analysts conducted deep-dive executive interviews with six selected respondents to collect qualitative data and insights.

Research Project Objectives, Methodology & ResultsBest Practices, LLC conducted this cross-industry benchmarking study to identify best practices and innovative methods for developing Market Research training excellence while improving the function’s global outreach and holding down costs.

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Participating Companies Represent Nine Industries

Benchmark Class:

Forty-one benchmark survey respondents from 35 companies participated in this study. Nearly half are directors, senior directors or vice presidents, and 78% are based in the United States. The participants represent nine different industries. About half work in Market Research, one-third in Marketing and the rest in other functions.

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(n=41)

Pharma / Biotech / Medical Device 61%Consumer Products 10%Manufacturing 10%Energy 5%Finance / Banking / Insurance 5%Chemicals 2%Computers (Hardware, Software) 2%Information 2%Research 2%

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Selected Key Findings

The following key Market Research trends were observed in this study.

The perceived value of the Market Research function is eroding at many of the participating companies, where market researchers may be seen as simply order-takers rather than strategic partners.

Training can help Market Research create value and earn recognition from its internal clients by developing the analysts to fill new roles as strategic partners who help drive business results.

Quantitative/technical skills are needed to build competent analysts whose work is accurate and trusted. Analysts also need insight development skills to improve decision support and consulting skills to help them evolve into strategic business advisors who partner with their clients.

Interviewed participants have begun hiring market researchers for consulting skills over quantitative skills and offering mentoring and specialized external classes in consulting to evolve technical-oriented analysts.

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Perceived Value of MR Function Is in Decline

Training Can Play a Key Role in Restoring the MR

Function’s Value

Leading MR Programs Provide Tech Skills & Consulting Training

Partnership/Advisory Role for MR Is Top Objective of

Leading Teams

BEST PRACTICES,®

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39%

51%

49%

66%

37%

39%

51%

34%

44%

34%

41%

34%

61%

32%

46%

39%Market Research is viewed as a "trusted advisor“ to the business.

Market Research has a "seat at the table" for management planning.

Leaders turn to MR to discern future trends, issues & challenges.

Market Research has a "seat at the table" for decision making.

Market Research recommendations are usually implemented.

Market Research is an integral part of the Marketing team.

Market Research uses fact-based research toconstructively challenge management thinking.

MR findings routinely influence critical business decisions.

Market Research findings help shape going forward strategy.

Market Research Functions Evidence High Maturity LevelsThe operational maturity of Market Research functions in this study is high, with more than three-fourths agreeing with seven of nine maturity indicators in the survey. However, there is still room for improvement in getting a seat at the table for management planning and being viewed as a trusted advisor to the business.

Q9. How strongly do you agree or disagree with each of the following statements regarding the role and business impact of the Market Research function at your company? (Choose one.)

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Market Research Role & Business ImpactTotal Agree:

100%

93%

85%

85%

83%

80%

76%

73%

71%

27%

22%

Somewhat Agree Strongly Agree

% Responses

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Nearly 2/3 Expect Market Research Training Budgets to Be FlatOnly 19% expect to see any budget increases for Market Research training over the next 12-24 months, and another 19% expect funding to shrink. Most predict flat budgets for the function.

(n=32)

Q. In the next 12-24 months, what change, if any, do you anticipate regarding the level of funding your company will provide for Market Research training and development? If you anticipate budget change, specify the primary reasons.

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Future Budget Trends Reasons for Budget Level Changes

(n=10)

Decrease:• “Access to available funds”• “Everything is cut”• “Loss of patents”• “Overall budget contraction”

Remain about the same:• “Limited growth but local/regional management is

supportive of ongoing training and development”

Increase:• “More emphasis on building a strong MR function”• “Organizational transformation currently in process will

likely include development of more formal MR training”• “Product launch”• “Significant training needs have been uncovered”• “Today training level is near to zero”

Increase <10%3%

Remain about the same, 63%

Increase >10% 16%

Decrease >10%13%

Decrease <10%6%

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Technical Skills Are Primary Focus of Market Research TrainingFundamental MR technical skills are covered by training for market researchers at 77% of companies, while 62% train staff in using advanced methodologies. Project management is the most frequently offered management skill and oral presentation the most common of communication skills taught by benchmark participants.

Q11. Select the skills training topic(s) your market research colleagues receive training on. (Choose all that apply.)

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Market Research Skills TrainingTECHNICAL SKILLS:

MANAGEMENT SKILLS:

COMMUNICATION SKILLS:

(n=39) % Responses

54%

38%

44%

56%

62%

77%

28%

56%

49%

26%

33%

Negotiation techniques

Report writing

Oral presentation

Moderating interviews

Leadership skills

Project management

Insight development

Forecasting

Secondary research sources & uses

Advanced methodologies (e.g.,conjoint, segmentation)

Fundamentals of Market Research

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Training Offerings Must Balance Breadth and DepthOn average, market researchers receive company-sponsored training on six critical skill sets. Forty-five percent of respondents train market researchers on three to five skill sets. Prioritizing the most relevant skill sets for a company’s Market Research staff can help training programs balance the breath and depth of offerings.

(n=40)

Q11. Select the skills training topic(s) your market research colleagues receive training on. (Choose all that apply.)

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Max 13

75th Percentile 7

Mean 6

Median 5

25th Percentile 4

Min 1

Number of Skills on which Training is Offered per Company

6 to 8 Skills, 28%

9 to 12 Skills, 18%

13+ Skills, 3%1 to 2 Skills, 8%

3 to 5 Skills, 45%

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Classrooms Are the Most Heavily Used Training ChannelClassrooms are the top channel for training market researchers in management and communication skills and are just behind conferences as the most frequently used channel for technical training. Technical training inspires multiple approaches, with three different channels used by a majority of the benchmark class.

(n=39)

Q17. Which channels are used to provide training in each of the following skills categories? (Check all that apply.)

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Training Delivery Channels UsedTechnical Skills: Management Skills: Communication Skills:

In-person/ corporate classroom 67% 64% 59%

One-on-one mentoring/ coaching 49% 44% 44%

Professional/ industry conferences 74% 33% 26%

On-line/ web-based modules 54% 28% 36%

On the job/ special assignment training 44% 36% 31%

Independent self-study 36% 33% 31%

Mobile applications (e.g., podcasts, webinars) 33% 18% 23%

University/ college certified MR programs 23% 21% 15%

Virtual/ electronic classroom 13% 8% 8%

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One-Third Report Same Training for HQ & Non-HQ StaffOnly 17% of companies described differences in training offered to Market Research staff reporting into headquarters vs. other locations, while half were unsure whether differences existed.

(n=35)

Q29. Does the implementation or content of MR training vary between colleagues who report into a headquarters/ centralized/shared services Market Research function and market researchers who report elsewhere? How?

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Training for Headquarters vs. Country Operations

How training is different....• “Driven by manager-identified requirements.”

• “Each country is responsible for MR training of its staff.”

• “No need to study cross country/currency analysis, regional or global level trends.”

• “Regional colleagues do not participate in annual two-week global MR training program.”

• “They don't get trained on online software or SPSS.”

Same, 34%

Different, 17%

Unsure, 49%

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Chapel Hill, NC 27517www.best-in-class.combest@best-in-class.com

919-403-0251

About Best Practices, LLCBest Practices, LLC is a research and consulting firm that conducts work based on the simple yet profound principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics, and winning strategies of world-class companies.

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