Market Development Research
The first key to creating larger companies is to start building companies that serve consumer markets rather than business markets. The second key is start companies that serve horizontal rather than vertical markets. Finally, if you want to create a world-class company you’ll need to create it in a world-class market, not locally.
This is what Blackberry did exceptionally well. They built a company that served consumers and businesses and gave it enough fuel to become globally competitive.
Creating World Class Companies
Canada has had difficulty creating world-class companies in the past and there have been number of reasons for this. In past reports we have examined management and financing practices and how they contribute to our challenges at scaling companies. In this report we want to go back to the beginning and look at the nature of technology companies that are being formed in Canada.
Triggers and Barriers
Here I am again pushing the book. If you haven’t read it yet you really should as it’s all about figuring out if you have a market for your product or company.
This report is full of growth metrics for software companies. The beginning section is on market size.
Canadian Tech Tortoises
Anecdotal evidence suggests that many Canadian technology companies wait until their products are completed before raising and spending funds on crucial functions, including marketing and sales (M&S) and that this practice is delaying success in raising funding.
A Nation of Soft Sellers
Our success as an “Innovation Nation” depends not only on our ability to come up with novel ideas or inventions but also on our ability to market and sell those ideas. Unfortunately there is a striking difference in the spending behaviour of Canadian and American on marketing and sales (M&S).
How Buyers Use the Internet to Select a Vendor
The Internet has drastically changed the dynamics between buyers and sellers and this shift has presented both tough challenges and great opportunities for sales and marketing departments. The landscape has changed from sellers “pushing” their wares to one where buyers now “pull” what appeals to them in their own way and at their own pace. Companies stuck in the old growth paradigm will eventually find it more difficult to compete and survive. Some may be feeling the pain already. We recently conducted some research to understand how the buying process has changed and how decision-makers rely on technology to: find potential solutions to their problems; narrow down potential vendors; and select the short-list of those lucky enough to participate. We surveyed 500 business people across industries to find out how buyers use the Internet when they are ready to buy. The context of the research and this report applies to consumer behavior on many levels, but has particular relevance to the B2B buying process.
Are you Spending Enough on Sales and Marketing?
Always a key question for any business leader is “how much should I spend on sales and marketing?” We researched 350 public companies in the software industry to understand the relationship between investments in sales and marketing and revenues.
The problem is that many companies expect to be able to grow without devoting enough resources to this critical expense area. They wonder why they can’t beat the competition consistently when they are being outspent. If it is true that you have to touch a prospect seven times before he becomes a customer then you have to have enough resources in sales and marketing to be able to do reach out to a prospect on a consistent basis.
If you want to see the high-level results of our research, click the button on the right to view the infographic. If you want to see how your company compares with others, contact us for detailed benchmarks.