Spotting industry and technology trends and market shifts is key to entrepreneurial success. Changing market dynamics have a constant (if often hard to see) impact on the attractiveness of an emerging growth company’s products and services. Critical determinants of a company’s success-- such as its buying power with its suppliers and its pricing power with its customers-- are also changing all the time. Capital-strapped companies need to define their best approach to understanding the markets in which they compete — so as to optimize their chances to be the disrupter not the disrupted.
How can emerging growth companies best keep track of market trends? According to founder and director of The Trends Research Institute Gerald Celente: “First, [business owners need to] understand that current events drive future trends. If you keep up with what's going on socially, environmentally [and] with business and consumers, you can see that all things are connected."
Should entrepreneurial CEOs and their investors trust to their own (hopefully wide) circle of contacts to keep their finger on the pulse of the markets in which they compete? Newport Board Group partners work with some of the most innovative companies in the middle market and emerging growth sectors. We asked them what they see successful CEOs doing to stay abreast of fast moving market opportunities and risks. Here are their responses.
Keith is a Newport partner in New England who has been president of operating divisions in four different Fortune 500 companies, in sales/marketing roles as well as other strategic leadership responsibilities.
“The best thing management can do to gather more market intelligence is to leverage their sales organizations to gather timely intelligence directly from their customers and prospects.”
Kim Denney is an experienced Houston area leader with a record of solving top- level problems as an executive with broad responsibilities in the Chemical, Petrochemical, Energy, and Manufacturing industries.
“A wise CEO is never happy with status quo and will question everything. Executives should always seek feedback from those employees who touch the clients/customers. This includes sale and business development personnel, but also the project managers, customer service representatives and even the receptionists. Active participation in relevant Associations, attending conventions, subscribing to push communications, and otherwise raising their head up and getting out on a monthly basis to mix with people who are in the same market gives business leaders both information and the opportunity to test their beliefs about the market. Openness to input allows you to spot market changes (even-or especially-changes you don’t welcome). Insight as to next steps requires constant infusion of market intelligence so that you can take advantage of the new market realities.”
Tom Henricks began his four decades in aerospace as a fighter test pilot in the U.S. Air Force before being selected by NASA to become an astronaut. After leaving NASA, Tom has held a series of senior level positions in the aviation industry.
“Middle market companies seem to rely on networking and trade media to spot shifts and trends.”
Sam, a Newport partner in Atlanta, is a seasoned executive with a record of implementing strategies to enhance revenues and profits across a variety of industries. He has particular expertise in assisting clients in redesigning their sales organization and sales management processes.
“What works for a middle company looking to improve its market research: an astute executive team keeps its collective ear constantly to the rail; giving credibility to gut feelings; an active program to drive communications via sales and marketing teams including with vendors and the competition; blogs and analysis of competitors’ and potential competitors’ content marketing i.e. regularly tracking, blogs, competition, newsletters, etc.”
Art Medici has a diverse background as an executive leader in e-commerce, high tech, telecom and information companies. His experience spans startups, high growth small/mid cap firms and global leaders like Thomson Reuters.
“The best practices I see include regular in-house "surveys" of customers and prospects and extensive monitoring of social media.”
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Billie is a Newport partner in the Pacific Northwest who has been Executive VP and CIO of TrueBlue Inc. (NYSE: TBI) the largest industrial staffing firm in the U.S.
“Most rely on a combination of insights that they get wind of via frequent contacts with trade associations, vendors/suppliers, friends and professional service providers.“
Ted Parrish is a Newport partner in Dallas. His background in advisory services includes solving strategic and operating problems for banks, financial service companies, manufacturers, distributors, retailers and transportation companies.
“Companies I work with and know well tend to obtain awareness of market trends from the networks and contacts of their management team, board, or advisors. They are mistrustful of market research as it is conducted by marketing consultants whom they do not generally trust (even when it may be appropriate to trust them and act accordingly).”
Mark is a co-founder of Newport Board Group and its Chief Knowledge Officer.
“I see companies relying for market intelligence on do-it- yourself Web searches and social media networking via LinkedIn groups and forums like that. Also placing ads in LinkedIn to test interest in a new concept — doing “A-B” tests of different ads with slightly different pitches to gauge viewer response.”
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