Focus Groups
Focus groups are sessions with randomly selected individuals who represent a particular demographic or viewpoint. These individuals are asked questions and for opinions relating to a very specific topic.
Focus groups are typically used for external customers to give feedback on consumer products. A few customers are selected to discuss current products or discuss new product prototypes and ideas.
Focus groups are led by professional, independent facilitators who are skilled at observation and listening. The facilitator does not participate in the group discussion and does not attempt to influence any opinions. These sessions are often held in a special location, convenient for group members. Some market research companies have focus group rooms with two-way mirrors for observation and/or recording capabilities.
BAs don’t usually conduct focus groups on their own. They work with an experienced market research professional who conducts the sessions. The BA helps the facilitator determine the appropriate participants based on the type of information needed. The BA also develops specific questions for the participants and analyzes the results. If possible, the BA can observe the focus group live or via recording later.
Competitive Analysis
Another method for learning about the enterprise as a whole is competitive analysis. A BA should always be aware of the competition. Individual departments focus on external competitors to the extent necessary for their work. Marketing, sales, and new product development areas are extremely aware of the competition and closely follow competitive trends. A BA working with these business units must familiarize himself or herself with the competition. Recognize that competitive analysis may be less important in business areas such as accounting. The human resources department may consider its external competitors to be other companies which employ people with similar skill sets. IT departments frequently view foreign IT service providers as competitors.
As a BA, you must be aware of who your stakeholders consider to be their competition. You don’t need to be an expert on all the competitive organizations, but you must be aware of them. Find out if your company publishes any regular reports on the competition and try to get on the distribution list. This will help you keep informed about competitive changes.
Who are your company’s competitors? Does your project assignment involve direct customer or product impacts? If so, you must understand the products and services that your competition offers. Does the organization lead its industry with state-of-the-art products or is it an industry laggard? How does the company differentiate itself from its competitors? Often, you can easily find competitors and their products and services by doing simple research. Review competitive marketing materials, just as you would your company’s. How do they compare? Where are there areas for possible advantages?
Competitive analysis is the most important technique for a product manager. Product managers who support externally sold products are responsible for making sure that their products offer value superior to their competitors’ products by constantly staying aware of competitive changes. Product managers must be in constant contact with current customers, listening for suggestions and for problems with their products and jumping on trends as quickly as appropriate.
