ROLE OF ANALYSTS IN YOUR US MARKETING CAMPAIGN

Written for CEOs and Marketing Managers of European companies

by Sally Goodsell

Introduction
OK, you've done your translations and taken the 'u' out of colour and labour. More importantly, you've probably made your first US sale and it's a big one. A major name that has given you the confidence to do what you have always longed to do ... to conquer the US market. You've done your research and you've identified the niches and competitive flanks that you intend to attack. And for the icing on the cake, you've seen the stats on the potential size of your US market and just what a killing can be made compared to the UK.

You will probably base your marketing strategy on what has worked in the home market. As you assemble your US marcoms plan, and preferably in advance of this, do not forget the industry analysts such as Gartner, IDC, and 'new kids on the block' such as the Meta Group, Forrester, Yankee Group etc.

Why they're there
In the US market these people can prove to be a very powerful and yet dangerously unseen force. As we don't have an equivalent infrastructure here, it is painfully easy to overlook them. Most of the major analyst companies are based in the US because its IT industry has always been large enough to support another layer in its infrastructure. But their sphere of influence extends internationally and any work done with the US based analysts will bring major benefits not only in the US, but worldwide.

What they do and why
Analysts write reports on every aspect of the IT industry. Where these reports address areas of major interest they are published and can be purchased by everyone. They are primarily read by corporations looking to invest in new IT strategies, and as such have tremendous sway in the buying decision, not least by forming the initial shopping list. And if you're not on that then there are a lot of deals that you won't even get to hear about. Any company planning to enter the US market (or any other) would be wise to invest in this research well in advance.

In addition to the published reports on industry sectors, analysts are frequently commissioned by major corporations to produce confidential reports before they make major new IT purchases. If you've been in regular contact with the analyst preparing these reports then you will probably be mentioned - favourably or otherwise is down to you and your communications plan. If you haven't been in contact then you don't stand a chance.

It is impossible to get decent press coverage in the US in, say, Computerworld or PC Week unless you have briefed a number of top analysts whom the journalists can phone to discuss your announcement. The writer will ideally want to speak to a number of analysts about your story. Who can blame them? Paul Gillan, editor of Computerworld US estimates that his journalists receive approximately 3500 press announcements every day. Journalists thus use the analysts as a filter to sort through the dross and help identify the major trends and credible players.

Positive analyst quotes are often included in the coverage and really do add to the weight and integrity of the piece because the analysts are seen as knowledgeable and independent arbiters. This is another area where the unseen power of analysts can be so important. If they have not been briefed properly then they can kill the story, or worse, put a negative spin on it. If such comments are used they will remain unattributed, or you may simply never find out what went wrong with your article being quietly spiked on the editor's desk.

One of the aims of a good analyst campaign, is to ensure that your story appears in the press and that it is supported by positive comments from authoritative analysts. Handled properly, your analyst programme will give you a real competitive edge.

Publication of major new reports usually sparks a round of seminars with the participants paying to attend presentations on current industry trends. These are mainly in the US but are increasingly being given in Europe. Analysts are also on the regular 'speaker circuit' and contribute to general articles about your market.

New reports attract press coverage with the major players being referenced. If you have a hand in orchestrating this coverage then your company may well be one of those mentioned. However, be aware that European journalists are sometimes cynical about information from US analysts, and while analyst comment is essential in the US it needs to be carefully handled in Europe.

Analysts are often retained by major users rather like other professional advisers such as lawyers so the user can simply phone for off the cuff information or a list of recommended suppliers at any time. Suppliers can also benefit from services and some analyst companies, such as Gartner, have formalised these arrangements which includes a fee structure for different levels of interface. However, it is still essential that any presentations and interaction are conducted as professionally as possible.

Like all good communications strategies your campaign needs to be ongoing so that the analysts are always appraised of your plans. It is important to share your future plans with the analysts and this needs to be under a clear embargo.

After all this success in the market, when you decide to gain a Stock Exchange quotation or (US equivalent) then a healthy file of positive analyst reports will impress the financial analysts. But recognise the limitations of your analyst presentation. Whilst it will undoubtedly be a catalyst for you to re-assess your corporate message it is primarily designed for consumption by US analysts, and perhaps the press in the US. Do not assume that it will have universal use. The technical editor of a major national newspaper recently groaned at the prospect of a flood of analyst presentations. The press need a different approach.

When selecting your analysts, don't forget the small specialist analysts such as Peter Davidson who focuses on fax issues and Palo Alto based Nina Burns who specialises in network solutions.

Need for worldwide co-ordination
You need to be part of the analyst's thinking as they set their parameters. As you establish a relationship of trust with the analysts so you will find them an invaluable source of information. They have an important overview of the market which, as a relationship of trust develops, they may well share with you. I have known analysts to act as 'match makers' and recommend companies for strategic relationships, take overs and executive appointments and they can be generous in their feedback on the market. This is one of the many reasons for managing your analyst campaign at corporate level.

Also, analysts' time is valuable and they generally expect to spend it with CEOs. Local US executives often put forward forceful arguments as to why they should handle analyst campaigns, but the problem is that they don't have the overall corporate picture and don't come across with sufficient authority or, worse, make it up. Local executives have their own agendas and often mar any threat to their own futures, such as ignoring recommendations about other strategic alliances that don't match their own local plans. However, having the local manager accompany the corporate spokespeople may be useful because they will have detailed local knowledge and the analyst may well wish to speak to users. If the CEO wishes to keep the session confidential then this information can be supplied later.

There are an increasing number of indigenous analysts in Europe e.g. Xephon, Ovum etc. and while they should not be forgotten they are not yet in the same league as the majors in the US. The large US analyst companies often have single or multiple European offices. Some are appointing local analysts but these offices are frequently sales outlets, and while they are charged with gathering European data they are often little more than post-boxes back to the US HQ. And this is another reason why companies need to have a worldwide communications strategy for addressing analysts. There is little point in the CEO making a major 'bells and whistles' presentation to the selected analyst in the US if this is accompanied by tatty press releases from sundry worldwide offices.

How and when
Like all effective communications strategies you need to understand your audience, and present your information in the correct manner. It may be advisable to take some professional advice at this stage.

Because of the size of the US and because the analysts' time is valuable, Mohammed has to go to the mountain and the usual format is an analyst tour. This involves having a series of appointments with all the major analysts and the CEO visiting them in their offices. Depending on the level of interest and whether you want to include both the East and West coasts, such a tour can take five to ten working days.

If the material merits, it then travelling to analysts can be combined with a press tour. If your presentation does not have sufficient press interest or if it is your first approach to the analysts then you are best advised to delay your press tour.

If this time investment worries you then it is possible to handle the whole exercise by phone. I have executed whole campaigns very successfully just on the phone, but I do recommend that you try and meet with people at some stage. As you become friendlier with the analysts so they will hopefully call before coming to Europe and you can arrange meetings here.

Ongoing
Having established contact then this needs to be seen as an ongoing process, and the CEO needs to make time every 3 - 6 months to re-visit with the analysts. It should not be a knee jerk reaction just because there is a new announcement or a problem which necessitates the rapid building of defensive walls. The prizes in the US are vast but to be successful you need to communicate that you have carefully thought out your company's road map and that you have a communications strategy which professionally reflects this to all your appropriate audiences - including the analysts.

Background

In l979 Sally Goodsell formed the first and only European marketing communications consultancy to specialise in marketing services for software companies. This has enabled her to develop a highly focused service for software clients addressing the UK, European and American software markets. International clients have included BT, Computer Associates (while based in Geneva, Switzerland), Data Connection, Digital Research, IBM, MSA/Dun & Bradstreet, Micro Focus (while based in Paul Alto, Ca), Movex, Software 2000, Topcall, Verimation and X/Open.

Copyright c 2000 Sally Goodsell, International Marketing. All Rights Reserved.