Monthly Archives: November 2009

Avoid Enemies of Change

Companies that spot trends early on and get transform their business focus at the right time are in the minority.  Why do some companies have blinders on when accessing trends?  A company’s very success is often what holds them back from seizing opportunities.  The mindset of leaders is crucial to combating this enemy of change.

We tend to be creatures of our past; our experience shapes what we believe and our perception of reality.  In sum, everyone is biased.  Our history and success are strong sources of our bias.  What often sets good leaders apart from leaders who miss opportunities is colored vision.  Good leaders see beyond their bias and spot trends that may be disparate from their past experience.

Automatically assuming something based on bias can handcuff you from changing direction to capitalize on a fruitful opportunity.  To combat bias and gain clarity, I recommend organizations use numbers and metrics to quantify trends and dispel bias that doesn’t mesh with the trends.

Avoid the enemies of change. Put your history and success in your back pocket while assessing your reality.  Use an unbiased view to ensure you can see trends as they really are and find opportunities that you may have missed before.

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Five Nuggets from the Internet Summit

The Internet Summit was last week in Raleigh, NC and I want to share with you five nuggets I took away from the panel sessions I attended.

1) Blogging is Not Dead
Didn’t really think blogging was dead, but I guess with a few bloggers ditching blogging for micro-blogging some were wondering where the blog fits in.  The take-away is that blogs should be a hub for your online marketing initiatives.  For B2B folks, they’re great for thought-leadership positioning too.

2) Search Marketers Start with Google
Google AdWords is easy to use and on the platform where more than 60% of search traffic resides.  Unless you know your audience is on Yahoo/Bing, or your budget is significantly lacking, Google is where you want to start. One other theme around search marketing is that it can also be used effectively for branding purposes.

3) Analytics are Increasingly Important
Think measurement first. Tie your business goals with analytics (read: reverse engineer the goal to the measurement).  Include KPIs as part of budget discussion.

4) Email Marketers use Best Practices
Be relevant (know your audience)
Think holistically (where does email fit into your overall marketing campaign)
Segment and personalize emails (this ties back into relevance)

5) Twitter is Versatile
Great for monitoring brand (customer service) and as a content distribution medium. Expectations are that niche providers like Yammer and the like will start gaining popularity in 2010.

What do you think?  Did the Internet Summit 09 get it right?

Market Sizing

Accurately estimating the market size of your product or service is crucial to determine whether the business or specific industry is worth pursuing.  And if you want financing, investors will want to know what the potential return of their investment could be.  Fortunately, there is a wealth of information at your fingertips to help you determine the market size of your business.

I prefer take the wide view when quantifying markets. This can reveal unexpected relationships between types of people or businesses within a market and can also help identify the most suitable market niche to pursue once the business has achieved success in an ancillary niche.

With this in mind, I recommend sizing up three types of markets: the total available market, the served available market, and the target market.

Take the Wide View
Take the wide view by estimating the total available market size (anyone who could potentially use your product or service) first.  After this, narrow your wide view of the market by determining the served available market size (the portion of the total available market your sales channel can reach, which often includes geographic limitations) and identify the further segmented target market size (the segmented piece or niche of the market to whom your company will be marketing your product or service first).

Quantify the Market with Numbers
To quantify these markets, you need numbers. If you’re pursuing an existing market, check out industry and market research reports (e.g. – Frost & Sullivan, Gartner, Forrester, etc.). These reports are often expensive, so you may need to look elsewhere.  Sometimes you can find other articles referencing an industry report, so do a quick search of articles referencing the report and check the Google cached view to easily identify where the information you want is referenced (this can save a lot of time if its a big report).

Still no luck?  Look in the researcher’s news archives, which often includes useful data in press releases about their reports. Research industry trade groups can also be very helpful, and often publish market statistics about the industry they cover.

If all this fails, visiting your competitors websites may provide you with the numbers you seek.  Estimate the market size by looking at competitors’ annual report and dividing their sales revenue by their market share.

Bring It All Together
Remember, one report won’t tell you everything and there are many ways to get an approximate market size for your business.  You may need to take a multiple data points from various sources and assemble it into a tailored market size report that quantifies the total market size, served available market size, and the target market size.

Researching data from various sources will help you see a more complete picture of your industry.  With these numbers, you’ll better understand the potential for your business and which segments of the industry are most attractive.

Happy market sizing!

How have you determined the market size for your company?  Share your experience.