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growth team m e m b e rs h i p™
2011 Marketing Priorities Survey Results
Asia Pacific
Marketing Survey Executive Summary . . . . . . . . . 2What is the Growth Team Membership™ . . . . . . 3Survey Purpose and Respondents . . . . . . . . . . . . . 4
Respondent Demographics . . . . . . . . . . . . . . . . . 25
External Factors Shaping Marketing Strategy . . . . 5
Key Marketing Challenges . . . . . . . . . . . . . . . . . . . 8
Marketing Effectiveness and Expenditures . . . . . .11
Social Media Expenditures and Ownership . . . . . .17
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Key Internal Challenge Internal Challenge Root CauseThe challenge is identifying adjacent market opportunities The root cause of the challenge is insufficiently
skilled personnel
Budget Priorities Resources Budget as a % of RevenueMarketers are prioritizing expenditures on traditional Marcom activities and channel partnership programs
2011 budgets will increase moderately while staffing levels will remain constant
The median percentage of company revenue allocated to marketing budgets is 3%
Social Media Use Social Media Objectives Social Media MetricsOnly 40% of respondents use social media in their marketing activities
Increasing the company’s online branding presence is the primary purpose for engaging in social media
“Interaction” is the most important metric
Main External ChallengeThe challenge is capitalizing on opportunities in emerging markets
Marketing Survey Executive Summary
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
What is the Growth Team Membership™?
The Growth Team Membership™ (GTM) is a subscription program that supports executives within the functions reporting to the CEO.
GTM provides best practices, events, and services to enable executives to address internal challenges within their companies.
CorporateStrategy
Corporate Development
Marketing
CompetitiveIntelligence
MarketResearch
SalesLeadership
R&D/Innovation
Investors/Finance
CEOMarketing
Email us [email protected] Visit us online www.gtm.frost.com
CEO’s Growth Team™ GTM: Creating Client Value
GTM’s case-based best practices help executives:
Speed the design and implementation of initiatives by not reinventing the wheel
Save money and reduce risk by avoiding mistakes made by other companies
Accelerate problem solving with a cross-industry perspective
Improve their function/company’s performance and productivity
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Survey Purpose and Respondents
Survey PopulationMethodologyResearch Objective
To understand the most pressing external and internal challenges shaping marketing executives’ 2011 planning .
Web-based survey platform Target respondents were Manager level and above marketing executives from companies throughout Asia Pacific .
56survey
respondents
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
External Factors Shaping Marketing Strategy
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Marketing strategy is heavily influenced by opportunities in emerging markets and the need to drive innovation
Top Three External Factors
Survey Question: Please specify the Top Three external factors shaping your marketing strategy in 2011 .
External Factor 1 Emerging global markets (25%)
External Factor 2 Need for product and service innovation (17%)
External Factor 3 Government regulation and policy (14%)
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Challenges for Marketing
Government regulation and policy (67%)
External Factors Impact on Marketing
Survey Question: Please indicate if the following factors present a challenge or an opportunity for your 2011 marketing strategy .
Opportunities for Marketing
Emerging global markets (100%)
Need for product and service innovation (89%)
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Key Marketing Challenges
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Challenge 1 Identifying new, adjacent market opportunities (21%)
Challenge 2 Developing segment-specific marketing programs (13%)
Challenge 3 Identifying, qualifying, and ensuring action on high-quality leads (17%)
Challenge 4 Improving channel partner effectiveness (20%)
Challenge 5 Measuring marketing ROI (12%)
Marketing executives are under pressure to identify new avenues of growth and work more effectively with their internal and external partners
Top Five Key Marketing Challenges
Survey Question: Please indicate the top five functional challenges shaping your marketing strategy in 2011 .
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Challenge 1Identifying new, adjacent market opportunities
Staff: Lack of knowledge (50%)
Challenge 2Developing segment-specific marketing programs
Staff: Limited resources (40%)
Challenge 3Identifying, qualifying, and ensuring action on high-quality leads
Process: Ineffective process (50%)
Challenge 4Improving channel partner effectiveness
Staff: Inadequate skills (29%)
Challenge 5Measuring marketing ROI
Staff: Lack of knowledge (50%)
Marketers cite staff as the predominant root cause of their challenges—ranging from lack of knowledge and skills to limited resources
Survey Question: Please indicate if the root cause of your top five functional challenges are—staff, process, technology/systems, or strategic alignment .
Root Cause of Top Five Marketing ChallengesTop Five Marketing Challenges
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Marketing Effectiveness and Expenditures
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Marketing Expenditures and Effectiveness Snapshot
Respondents rank their marketing effectiveness as “Average”
3% of their company’s revenue is allocated to the marketing budget
Largest budget item is staff
Expect their staffing levels to stay the same in 2011
Expect their marketing budgets to increase moderately in 2011
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
9%6%
46% 40%
More than 50% of marketers rank their function’s effectiveness as “Below Average” or “Average”
Marketing’s View of Its Effectiveness
Survey Question: Please assess the overall effectiveness of your marketing function compared to those in other firms within your industry .
All Companies
Above Average
ExceptionalBelow Average
Average
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
0%
10%
20%
30%
40%
50%
46%
30%
15%
6%
3%
0%
Most respondents had marketing budgets of under $1 million in 20102010 Marketing Budgets
Survey Question: Please indicate your 2010 total marketing budget (all expenditures on marketing activities and general & administrative—including staff) in the following US$ ranges .
Below $1 Million $1 Million to $2.99 Million
$3 Million to $4.99 Million
$5 Million to $9.99 Million
$10 Million to $19.99 Million
$20 Million or more
percentage of company revenue allocated to marketing
In 2010 companies dedicated approximately 3% of their annual revenue to their marketing budgets.
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Staffing is Marketing’s largest budget allocationMarketing Budget Allocation
Survey Question: Please provide the percentage allocation of your total 2010 marketing budget to the following activities . (These percents represent the median values for each category)
0%
10%
20%
30%
40%
35%
10%
5%
8%
3%
0%
2%
5%
1%
Personnel/Staffing
Marketing Communications
(Traditional Media)
Marketing Communications (Online/Digital
Media)
Channel Partner
Programs
Customer Relationship Management
(CRM) Software and Maintenance
Marketing Resource
Management (MRM)
Software and Maintenance
Knowledge Management
Training Non-CRM And Non-MRM Information Technology
Investments (Lead Management Software,
Sales Tools, etc)
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
7%
3%
43%47%
14%
52%
24%
10%
Marketers expect their staffing levels to remain static, and budgets to increase moderately2011 vs . 2010 Staffing and Budget Plans
Survey Question: In comparison to 2010, your 2011 marketing staff will:
Staffing Budget
Stay the Same
Decrease Moderately Increase Substantially
Increase Moderately
Stay the Same
Decrease Moderately Increase Substantially
Increase Moderately
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Social Media Expenditures and Ownership
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Social Media Snapshot
The majority of companies do not use social media in their marketing activities
Corporate Marketing is the owner of the company’s social media activities
Interaction is the most important social media metric
Brand awareness is the most effectively applied social media metric
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
The majority of marketers do not use social media in marketing activitiesSocial Media Usage
Survey Question: Does your company use social media in your marketing activities?
All Companies
No
Yes41%
59%
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Corporate Marketing is the predominant owner of social mediaOwnership of Social Media
Survey Question: Which department is responsible for managing social media within your company?
E-marketing/Digital
Marketing
Corporate Marketing
Independent Social Media
Team
Corporate Communications
Customer Service
Cross-Functional Team
Other0%
30%
60%
53%
13%
0%
13%
0%
7%
13%
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Objective 1 Increase online share of brand messaging (58%)
Objective 2 Drive word of mouth about existing products and services (25%)
Objective 3 Generate leads (27%)
Objective 4 Engage current customers to increase satisfaction and/or loyalty (40%)
Objective 5 Build relationships with influencers/advocates (20%)
Survey Question: Please rank in order of importance the following objectives of your social media activities .
The majority see social media as a tool to drive awareness and word-of-mouth Social Media Objectives
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Survey Question: Please indicate the importance of the following social media metrics within your company:
Marketers rank “Interaction” as the most important social media metricImportance of Social Media Metrics
0%
50%
100%
33%
50%
17%
36%
64%
33%
58%
9%
25%
50%
25%
50%
41%
9%
33%
42%
25%
33%
50%
17%
Interaction (comments,
retweets, sharing, etc.)
Traffic (page views, time on site, etc.)
Leads (requests for trials or brochures)
Search Marketing (search engine
ranking)
Brand Awareness (number of
mentions online or share of voice)
Sentiment (positive or
negative mentions online)
Satisfaction and Loyalty (repurchase, renewals)
Not Important Slightly Important Important Very Important
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Survey Question: Please rate the effectiveness of your company’s application of the following social media metrics:
Marketers consider “Brand Awareness” to be an effective social media metricEffectiveness of Social Media Metrics
0%
50%
100%
33%
33%
34%
25%
42%
33%
17%
58%
25%
8%
25%
42%
25%
42%
33%
25%
25%
42%
33%
33%
42%
25%
Do Not Use Below Average Average Above Average Best-in-Class
Interaction (comments,
retweets, sharing, etc.)
Traffic (page views, time on site, etc.)
Leads (requests for trials or brochures)
Search Marketing (search engine
ranking)
Brand Awareness (number of
mentions online or share of voice)
Sentiment (positive or
negative mentions online)
Satisfaction and Loyalty (repurchase, renewals)
24
The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
The Growth Team Membership™ (GTM) is an annual subscription program that supports executives in Marketing, Sales Leadership, Corporate Strategy, Corporate Development, R&D/Innovation, Market Research, and Competitive Intelligence . GTM offers best practices research, events, and services to address the internal challenges executives face . Contact us at GTMResearch@frost .com .
The Three Overarching Challenges Affecting Asia Pacific Marketing Executives
what’s keeping marketing executives up at night in 2011?
Marketing’s Overarching Challenges Sample Solutions from the Growth Team Membership
Segmentation
Marketers are focusing on creating segment-specific campaigns and identifying new, adjacent markets .
Learn how Tandberg used customer segmentation as the foundation for building a customer-centric business model to enter adjacent markets .
Return on InvestmentLimitations in staff and moderately increasing budgets require marketing to identify and prioritize the highest potential campaigns .
Learn how Kimberly-Clark instituted an ROI-based process to evaluate, select, and monitor marketing programs .
Social Media MetricsMarketers are beginning to experiment with social media and need to understand where, when, and how to engage .
Learn how Kodak used a systematic approach to create and activate a social media strategy .
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Respondent Demographics
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Respondent Demographics
Survey Question: Please indicate the type of enterprise best represents your company .
N = 55
N = 55N = 55
Enterprise Type Business Model
Company Revenue
2%
42%
56% 56%
11%
33%Public
Hybrid Company
Private
B-to-B Company
Venture Capital
0%
30%
24% 24%
9%
24%
18%
Below $100 Million
$100 Million to $499.99 Million
$500 Million to $999.99 Million
$1 Billion to $11 Billion
More than $11 Billion
B-to-C Company
The majority of respondents work in B-to-B companies .More than half of
the respondents work in a private company .
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 marketing prioritiesgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Respondent Demographics: Top Five Participating Industries
Survey Question: Please indicate which industry categories best describe your company (check all that apply .)
N = 56
Energy and Power Systems
Information and Communication Technologies
Automotive and Transportation
Chemicals, Materials, and Food
Healthcare and Life Sciences
0% 20% 40%
34%
32%
11%
11%
9%