Ralph E. Grabowski - marketingVP - fact-gathering, analytical Marketing to steer the enterprise

 

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"The Board's Fiduciary Responsibility To Market Research"
 

The Board's 
Fiduciary Responsibility 
To Market Research

20 questions for the Board to guide the CEO and the corporation

 
Contents

Abstract
The Evidence is in
The data
Old strategies
New Ratio
Market Research is the upstream process
The Board and strategy
M/E Ratio™ tool
Twenty questions
Reviews and reaction
about The Corporate Board
About the
author

Reprint - PDF, 9 pages, 0.15 MB

 

Reviews and reaction

A panel of reviewers supported the creative process of this paper.  I am grateful, and acknowledge both their encouragement and their contribution.  I am especially appreciative of Dr. Barry Unger of MIT’s Sloan School of Management, who suggested topping off the paper with "twenty questions" from my earlier writings, and who contributed a powerful quotation.  These reviews are shared with permission.

 

Reviewers

"You are making a terrific statement to Boards of Directors.  I like what you are doing with the Marketing/Engineering Investment Ratio™.

"You really deliver some meat-and-potatoes in your ‘twenty questions’ section.  Your approach of proposing well-placed inquiries has real merit.  Boards and CEO’s will have to look in the mirror and ask themselves these questions!"

Albert D. Ehrenfried founded Metritape in Littleton, MA and ran it as Chairman and CEO for thirty years.  He was an early practitioner of upstream market research for technology-based enterprises, as Founder and President of Technical Marketing Associates in the 1950s.  His timeless 1955 paper, "Market Development [market research] — the Neglected Companion of Product Development," formed the basis for a section of my 1995 paper, "Who Is Going To Buy The Darn Thing?"

 

"Extremely well written.  Good article.  Well reasoned.  Sufficiently indicative and persuasive!  I like the ‘do lists’ and action items in your 'twenty questions'."

This is provocative, extremely interesting stuff.  The M/E Ratio™ is a useful guideline for Directors.  You have a lot of evidence.  Congratulations on teasing out the marketing data from the promoting and selling numbers.  A very engaging piece of work."

Dr. Gordon B. Baty is a venture capitalist retired from Zero Stage Capital, a member of several Boards, and holder of faculty appointments at both the MIT Sloan School of Management and Northeastern University.

 

"Great article. There is something pretty substantial here!  I whole-heartedly agree with your thesis that the Marketing/Engineering Investment Ratio™ should be above 1.  Market research should be integrated into the product development process.  Good reading."

Michael E. Frank, a member of several Boards of Directors and a venture capitalist formerly with Advanced Technology Ventures.

 

Reaction
These readers have given permission to share their responses.

 

"Your evidence of the relationship between market research and success is right on!"

Michael S. Dell; Founder, Chairman, and CEO of Dell Computer Corporation.

 

"Every company's President, and every member of the Board, should be required to look at these results."  

Peter Eggleston, formerly of Amerinex Applied Imaging.

 

"Your ’twenty questions' should easily be one of the top checklists anyone who is doing business planning can review against.

"The clarity of the thinking behind them, and the clarity of the thinking they instill into the mind of the business planner is impressive.  With such help, business planning and marketing depart from the traditional 'fuzzy, touchy-feely' realm into the practice of good, focused, and realistic thinking.

"Bravo!"

Sergiu S. Simmel is the President and CEO of Clepsydra Systems 

 

"We are stunned!  We are absolutely blown away by the quality and depth of your scrutiny into the contribution of market research to success.  In our 40+ years of combined experience in all forms of market studies, electronic product development, and in technical journalism, we have never seen such a clear, quantitative justification for market research."

James S. McLeod-Warrick, Director of Research and Steven H. Leibson, Director of Technology; Beacon Technology Partners

 

 
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