About Market Mapping

Market Mapping
A Process for Helping Product Technology Organizations Choose Strategic Direction Based On Emerging Customer Values and Preferences
The Leeman Group

Management Consulting
http://theleemangroup.com
What Do We Mean By Strategy?

Strategy describes how a business intends to win in the markets it chooses to serve in the future
A strategy is based on anticipated future conditions, commits resources, and leads toward a vision of what the business should become at the end of the planning horizon (George Day, Wharton)
Strategy is about being different: choosing a different set of activities that deliver a unique mix of value to selected customers
A company can outperform competitors only if it can establish a difference it can preserve Therefore, strategy is not about improving operational effectiveness, although it is essential for superior performance (Michael Porter, Harvard)
The best strategies require a balance between analysis and creativity

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2005 The Leeman Group
Strategy Is Hierarchical
End Means Business Strategy Corporate Strategy
End Means
End Means Organizational alignment is critical for strategy implementation

Functional Strategy
Strategic Initiatives
The Challenge of Being Market Driven

One of the liabilities of "knowing" a market and its end use customers is that it is natural to build up a set of assumptions about what customers want and what they don't, and about the things that will drive their future buying behavior. This is especially true in product or technology driven organizations. Leaders in these organizations are often mystified when end use customers behave in seemingly inexplicable ways, contrary to what seems rational. They often think the key to success revolves around educating customers, based on the idea that smarter customers will choose their products and services over alternatives. But whats really going on here? Why do some customers make these bad choices? There must be value that these customers see in alternatives that the organization does not. If thats true, then what is the root source of the value/s that drive these customer choices? To discover the answers to these and similar questions, it is necessary to test organizational assumptions in an structured way, helping management re-calibrate their customer knowledge. Building a model of a business s target customers emerging values, attitudes and buying behavior allows the organization to see where the puck is going to be. This view then provides context for strategic decision making.
About Market Mapping

Market Mapping takes a strategic, forward-looking approach to crafting market driven strategy and segmentation, focusing on where customers are going, instead of where they've been.
In addition, the Market Mapping process goes well beyond simply gathering and reporting market data by providing a collaborative, teambased process for bridging the gap between information and action.
Market Mapping is an ideal complement to a Future Mapping scenario planning exercise.

In the same way that scenarios help leadership teams develop and align around a common view of the future, Market Mapping addresses alignment with customers.
Market Mapping Applications

Market Mapping can help leadership teams address issues like these:
We have a vision of the future but were not sure whether our customers share it We think we know the best way to segment our market but we could be wrong We simply don't know our customers well enough to understand where they are going
Were not sure which new products or services they will want in the future, or how theyll want to buy them
We think the decision process for our products/services will change but we're not sure how We expect consolidation in the industry and in our markets but were not sure how that will affect our competitive position We can't agree on how we should differentiate ourselves from our competitors or on our best opportunities for growth and profitability
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Key Steps in Market Mapping

No matter how much quantitative data an organization has in hand, it is critical for them to understand the underlying thought process of the end user and decision maker; their wants, needs and values; the way they evaluate products. Once they understand how customers think about the future, management will be in a position to deliver true solutions. At its best, this is the threshold of discovery leading to a breakthrough idea. Market Mapping has been specifically designed for leadership teams, providing them with both qualitative and quantitative views of customer thinking, integrated into working hypotheses that can provide bridges to action. A typical Market Mapping project has the following steps: Conventional Wisdom Debrief To illustrate the Market Materials Development and Recruiting Mapping process, well use as an example a recent project External Interviews focusing on new software Data Synthesis and Analysis services for advanced process Strategy Workshop control of semiconductor wafer manufacturing
Conventional Wisdom Debrief

This establishes the starting point for the project by identifying the set of critical uncertainties and assumptions about the future of the market environment held by the leadership team and key internal stakeholders Through a series of interviews and/or a structured workshop, we gather input from questions like
Which customers are critical to your future success? How are these customers evolving their business model? What kinds of problems do you think these customers are trying to solve with products and services like yours? What baseline minimum acceptable criteria do you think these customers use to evaluate potential suppliers and their solutions to these problems? Which attributes do you think will differentiate suppliers from each other and drive the choice of products and services in the future?
When Market Mapping is used in conjunction with a Future Mapping session, the outputs from the first phase form the basis for the strategic choices considered in the second phase
Materials Development & Recruiting

We synthesize and integrate input from the internal interviews and workshop to create the structure and content of the customer interviews, including
Identifying target customer segments and corresponding demographics This drives the sampling strategy, which in turn drives project cost and timing. Creating and testing the interview guide/s and supplemental materials Different segments may require different interview guides Pictures, flow charts and similar devices often enhance the interview The materials are usually fine tuned through test interviews with internal personnel who are similar to target respondents, or with friendly customers
Recruiting customers to interview starts after the sampling strategy is approved by the client
We begin by developing or acquiring lists of potential respondents While there are often many sources for lists, the degree of difficulty depends on the number and visibility of potential respondents Respondents who meet the demographic criteria are paid an incentive for a one hour interview in their office or in a market research facility
Example Respondent Criteria (1) Must evaluate and influence the choice of software systems used for Advanced Process Control (APC) of fab tools; and (2) Are Fab Process Engineers responsible for etch, CVD, PVD, or CMP tools; and (3) Are familiar with products provided by at least two of the following suppliers: Advanced Energy, Adventa Control Technologies, AvantCom, Brooks Automation, Brookside Software, HPL / FabCentric, IBEX Process Technology, New Vision Systems, SI Automation, Triant Technologies, Yield Dynamics 9
Our scrap and rework cycles are too high
External Interviews
Using one-on-one In-Depth-Interviews (IDIs), Market Mapping provides quantitative response opportunities for customers while developing a rich database of verbatim responses to open ended questions
We h equ ave to i ip m thro ment u prove o ptim ugh ur put e, and capa city
Our (dev fab (li n ice) yiel e) and ds a s re to ort o lo w
Co m pelli ng P r
Example Question oble ms Q.2. In your role, you undoubtedly have a set of problems or issues that concern you and that you are currently addressing. Here are a set of cards that describe common problems related to process control. Choose and rank order the four problems that you'd most like to solve today and in the near future, and then lets discuss the reasons why youve picked each one.
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External Interviews
In addition to a simple selection among multiple choices, the interviewer can ask respondents to rank order, scale or trade-off specific choices of product attributes, future applications or preferred suppliers
Example Question gy Q.15. Some people believe that the way metrology data are used as an input for process control will change 1 significantly in the future. If we assume that most metrology data is used for lot-to-lot or run-to-run process control today, which card most accurately describes how you think metrology data will be used in the next generation of manufacturing processes? Are there any drawbacks or trade-offs that come to mind in order to get to that level?
Generated off-line, used to adjust process parameters after each run Inte gr used ated in to th para to adju e to o st p met roce l, ers ss (with in rea l-tim in w e afer ) Gen e sop rated u h s mod isticate ing d e met ls & hi mathe r s mat para ology to torical ical met adju ers befo st pro c re e Futu ach ess re o run f Me trolo
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Data Analysis and Reporting

Market Mapping results are best presented interactively, usually in the context of a collaborative workshop. Data is analyzed and reported in three dimensions: quantitative, qualitative and working hypotheses. If conflicting ideas are present, they are offered as counter arguments. Leadership teams that are comfortable with idea conflict usually respect the results more if alternative opinions are evaluated and considered.
Example Reports
2.5 2
Weighted Average Score
1.5 1 0.5 0 Fab and sort yield Uptime / throughput / capacity utilization Scrap and rework cycles Metrology time delay 2.3 2.2
1.1 0.7
Fab (line) and sort (device) yields are too low this is the bottom line, and can be painful because we cant always isolate the cause of a bad process Predictability has great value, but its hard to show how it reduces cost Equipment uptime / throughput / capacity were concerned especially with "bottleneck" toolsit is especially difficult to deal with these in a mixed device fab because the tool could be different for each device type
End-user initiatives to improve yield & capacity utilization will drive demand
Mixed device fabs experience much more set-up time Many will want to manage production based on market demand Lines with more process excursions and unplanned maintenance are unacceptable
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Strategy Workshop
The strategy workshop is collaborative and interactive, using structured exercises that leverage the research data to reach consensus on Strategic Direction, and a supporting portfolio of Value Propositions and Strategic Initiatives. MARKET DRIVEN STRATEGY Template
The choice of
Customer groups (segments) to serve Products and services (integrated solutions) to offer each Differential values (benefits) to provide Risks to take or avoid
SEGMENT VALUE PROPOSITION Template

For (this customer segment) who want to solve (this problem), we offer (this solution). Unlike (other alternative solutions), we provide (this differential benefit). Our solutions and differential benefits are illustrated by (these proof statements). 13
For the planning horizon and the transition from the present Expressed by the extent and allocation of financial and people resources In order to achieve the strategic vision of the business and achieve its goals
Critical Success Factors

Internal Collaboration: Technologists will challenge an assumption, any assumption. Its part of who they are. Thats why they need to be involved in creating the interview guide and actively working with the results. This cant be just another market survey or it will have little impact. Respondent Selection: Perhaps the most important set of assumptions to be tested reflects the perceived differences and similarities across customers the market segmentation strategy. The people we target for interviews have to be carefully selected from relevant segments, or the results may be discounted because you didnt speak with people who represent the XYZ segment. Recruiting the right respondents is often difficult and time consuming but it is critical to the credibility of the results. Data Collection: Considerably more sophisticated than closed-end surveys, the peel the onion nature of In-Depth-Interviews requires superior interviewing skills and a thorough knowledge of the market environment. Our consultants bring years of experience to this task, as well as to the integration, synthesis and analysis of the data.
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About Market Mapping

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About Market Mapping

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Market Mapping

The Leeman Group

What Do We Mean By Strategy?

The best strategies require a balance between analysis and creativity

2005 The Leeman Group

End Means Organizational alignment is critical for strategy implementation

The Challenge of Being Market Driven

2005 The Leeman Group