Forging Deep Insights to Grow the Business: How Market Research Organizations Optimize the Mix of Tracking Research and Insight-Oriented Research

Best Practices, LLC Strategic Benchmarking Analysis
February 2014
Forging Deep Insights to Grow the
Business:
How Market Research Organizations Optimize the Mix of
Tracking Research and Insight-Oriented Research

Table of Contents
2
Copyright © Best Practices , LLC
OBJECTIVES, METHODOLOGY & MAJOR THEMES Page 3
PARTICIPATING COMPANIES AND KEY DEMOGRAPHICS Page 5
BALANCING INSIGHT-DRIVEN RESEARCH AND TRACKING PROJECTS IN
THE ANNUAL PLAN
Page 12
SCHEDULING VALUABLE PLANNED RESEARCH AND BUILDING IN
FLEXIBILITY TO HANDLE AD-HOC REQUESTS
Page 20
IMPROVING TRACKING AND INSIGHT-DRIVEN RESEARCH PROJECTS Page 24
USING LIFECYCLE STAGE TO GUIDE RESEARCH REQUIREMENTS Page 27
UNDERSTANDING STRESS POINTS BY RESEARCH TYPE Page 30
MARKET RESEARCH STAFF SELECTION AND TRAINING Page 33
IMPROVING MARKET RESEARCH CREDIBILITY AND CUSTOMER
ENGAGEMENT
Page 37
ELIMINATING REDUNDANT AND LOWER VALUE RESEARCH Page 42
ABOUT BEST PRACTICES, LLC Page 45

Topics IncludedStudy Overview
 Ideal mix of tracking vs. insight research
 Overall relative impact of tracking and insight
research projects
 Impact of projects based on lifecycle stage of
product
 Improving the impact of both tracking and
insight research projects
 Removing redundancy of projects across
brands/therapeutic areas
 Allocation of budget and staffing resources
for different types of projects
 Managing and prioritizing ad-hoc vs. planned
research assignments
 Winning trust and credibility internally
 Training for successful communication and
implementation of insights
Research Objective: This benchmarking study
was designed to show the ideal allocation of
market research resources to best serve internal
customers. Types of projects conducted and their
respective values were assessed, as well as the
internal structures and training needed to
successfully manage the projects.
 Methodology: Best Practices, LLC engaged 14
Market Research leaders through a targeted
benchmark instrument. Data was normalized
throughout the study to account for the size of
division or business unit the participant
represented. Also, where applicable,
considerations for the product portfolio being
supported was taken into consideration.
Research Project Objectives, Methodology & Results
Best Practices, LLC conducted this benchmarking study to give leaders in the market research function
insight into the practices, mix, staffing, activity levels and training requirements needed for Market
Research to consistently provide valuable, forward-looking insights into the business.

Universe of Learning: 14 Leading Healthcare Companies
Contributed To This Benchmark Analysis
Benchmark Class:
Market research leaders from 14 global pharmaceutical and medical device organizations participated in
this benchmark field study and survey analysis.
4

Pool of Market Research Experience Runs Deep In This
Study
The participants in this study represent experienced market research leaders. The pool of
participants is composed of 14% vice-president-level executives, 57% director-level leaders,
and 29% market research managers. Benchmark partners work in various units conducting
market analysis.
(n=14)
Q. Please provide the following information, which will be used for classification purposes and to ensure that you
receive a copy of the study deliverable.
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Job Titles:
BUSINESS INTELLIGENCE
VP, Business Planning & Intelligence
Head, Global Market Research and Business Intelligence
Business Intelligence Manager
MARKET RESEARCH
Senior Director, Marketing Effectiveness
Director of Marketing Research
Director, Market Research
Associate Director, Market Research
Associate Director Market Research
Manager, Market Research
ANALYTICS
Business Analytics Lead
Manager, Market Analytics
MARKET/CUSTOMER INSIGHTS
Senior Director, Global Market Insights
Senior Customer Insights Manager
Director, Strategy Planning and Insights
The Market Research Puzzle

Tracking
Research
Projects-
51%
Insight-
Driven
Projects-
49%
Ideal Mix of
Tracking
Research
Projects-
45%
Ideal Mix of
Insight-
Driven
Research
Projects-
55%
Ideal Mix of Research Calls for More Insight-Driven Projects
Benchmark partners reflected an almost equal split between the breakdown of insight-driven projects and tracking
research projects actually conducted in the last 12 months. The ideal allocation of project types reflects at least a 10%
increase in insight-driven research. This number is closer to a 2 to 1 split in favor of insight-driven research when looking
only at only companies with launch phase/late development product portfolios.
(n=14)
Q. Please provide the breakdown of insight-driven research projects vs. tracking research projects actually conducted
over the last 12 months, as well as the ideal mix of both research types.
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Research Completed Last 12 Months Ideal Future Mix of Projects
The ideal mix of annual projects calls for a 10%
increase in Insight-Driven Research

Tracking Projects Command Lion’s Share of Budget
Although “tracking” projects are seen to provide less valuable insights, half of all respondents reported
that 50-60% of their budget was dedicated to this form of research. This leaves a lot of room for potential
reallocation of research investment.
(n=11)
Q. Please estimate the percentage of your overall market research budget resources dedicated to Tracking Research
and Insight-Driven Research during the past 12 months.
7
Allocation of Budget Resources:
Percent of
Research Budget
Dedicated to
Tracking Projects
Percent of
Research
Budget
Dedicated to
Insight-Driven
Projects
75th
percentile
70% 50%
Mean 59% 41%
Median 50% 50%
25th
percentile
50% 30%

Superior Project Mgt. & Communication Are Most Important For Strong
Tracking Research Recommendations
Selecting the appropriate vendors and managing the vendor throughout the research process plays a
large role in the impact of tracking research. Additionally, communication with marketing customers and
across brands is key when running tracking projects to ensure the findings are aligned with critical
business and project needs.
(n=14)
Q. What approaches work best to help the organization understand how to deliver strong recommendations from
tracking research (Check the one that best applies for each row)
8
Improving Tracking Research:
23%
15%
23%
31%
38%
8%
54%
54%
46%
46%
Market Research rotations
Managing Vendors
Preparing Researchers
Streamlining Tracking Research into consolidated
critical projects
Selecting Vendors
Somewhat Important Highly Important

Build Trust Through Communication Skills
Strong communication skills are highly important in building Market Researchers perceived value in the
minds of internal customers. Communication is developed across a broad spectrum that includes
presentation skills, listening skills, respectful debate, business focus and negotiation skill.
(n=12-14)
Q. Please rate the importance of the following skills in helping market researchers present insights into brand and
marketing leaders
9
Communicating Insights:
38%
23%
31%
8%
8%
54%
69%
69%
92%
92%
Negotiation skill: ability to negotiate for time, attention,
resources or decisions
Prioritization skills: focus leadership on what's
important
Debate: ability to speak up to leadership and debate
ideas
Listening skills: ability to listen well to customers
Communication skill: comfort in presenting insight
ideas

Customer Insight and Engagement Win Trust & Credibility
Inspiring customers to trust and value the work being done by market research takes effort, but is critical
to the long term health of the function. Trust building is best accomplished through customer insight,
meeting frequently and directly with internal customers, and understanding customer business and
therapeutic needs.
(n=11-14)
Q. Please rate the importance of the following management factors in assisting market researchers in delivering
consistently strong insights for brand and functional marketers:
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Winning Trust & Credibility:
23%
45%
38%
50%
15%
46%
46%
38%
23%
23%
18%
38%
33%
69%
46%
46%
54%
69%
100%
Structural Alignment
Brand Experience
Co-location with brand / customer
Account Management: Understanding customer differences
Customer Experience
Training on the brand/function issues
Face Time: in-person exposure to the internal client
Engagement Frequency
Attend brand meetings to get close to customers
Customer insight

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Learn More About Our Company
Our company is an internationally recognized thought leader in the field of best practice benchmarking®. We
are a research, consulting, benchmark database, publishing and advisory firm that conducts work based on
the simple yet profound principle that organizations can chart a course to superior economic performance by
leveraging the best business practices, operating tactics and winning strategies of world-class companies.
Best Practices, LLC
6350 Quadrangle Drive, Suite 200, Chapel Hill, NC 27517
(Ph): 919-403-0251
www.best-in-class.com
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Forging Deep Insights to Grow the Business: How Market Research Organizations Optimize the Mix of Tracking Research and Insight-Oriented Research

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Forging Deep Insights to Grow the Business: How Market Research Organizations Optimize the Mix of Tracking Research and Insight-Oriented Research