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Growth Team Membership:European Union 2010 Marketing Priorities Survey Results
 

Growth Team Membership:European Union 2010 Marketing Priorities Survey Results

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Growth Team Membership:European Union 2010 Marketing Priorities Survey Results.

Growth Team Membership:European Union 2010 Marketing Priorities Survey Results.

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    Growth Team Membership:European Union 2010 Marketing Priorities Survey Results Growth Team Membership:European Union 2010 Marketing Priorities Survey Results Presentation Transcript

    • Growth Team Membership™:European Union 2010 Marketing Priorities Survey Results February 2010
    • What is Growth Team Membership™? Growth Team Membership™ (GTM) is an annual subscription program that offers research, events and services designed to increase the effectiveness, productivity, and impact of executives in the functions that support the CEO’s growth strategy.If you have any questions orcomments, please contact us atGTMResearch@frost.com Growth Team Membership™ Research. 2
    • Table of Contents Page Section 1: Survey Purpose and Respondents 4 Section 2: External Factors Shaping Marketing Strategy 5 Section 3: Key Marketing Challenges 9 Section 3.1: By Business Model 10 Section 4: Marketing Effectiveness and Expenditures 14 Section 4.1: By Business Model 16 Section 4.2: By Company Revenue 23 Section 5: Respondent Demographics 29The content of these pages are © 2010 Frost & Sullivan. All rights reserved. Growth Team Membership™ Research. 3
    • Survey PopulationResearch ObjectiveTo understand the most pressingexternal and internal challengesshaping marketing executives’2010 planningMethodologyWeb-based survey platformSample PopulationTarget respondents were Managerlevel and above marketingexecutives from companiesthroughout the European Union. There were 262Co-Sponsorship: survey respondents Growth Team Membership™ Research. 4
    • External Factors Shaping Marketing Strategy Growth Team Membership™ Research. 5
    • Top Three External Factors KEY TAKEAWAY: The top external factors reflect the need for new growth opportunities and coping with increased competition. Tapping into global market 28% opportunities Need for product/service 20% innovation and capabilities Intensifying competition 18% 0% 20% 40% Survey Question: Please indicate the three business environment factors that have the most impact on your 2010 Marketing plans.N = 218 Growth Team Membership™ Research. 6
    • Top Three External Factors by Business Model KEY TAKEAWAY: Regardless of business model, there is little variation in the external factors impacting Marketer’s 2010 plans. B-to-B B-to-C Hybrid External Need for product/service Tapping into global market Tapping into global market Factor 1 innovation and capabilities opportunities (50%) opportunities (24%) (21%) External Adjusting to the economic Need for product/service Changes in customer downturn (40%) Factor 2 innovation and capabilities buying behavior (17%) (21%) External Intensifying competition Need for product/service Changes in customer Factor 3 (19%) innovation and capabilities buying behavior (21%) (40%)N = 218 Growth Team Membership™ Research. 7
    • External Factor’s Impact on Marketing KEY TAKEAWAY: Marketers are optimistic about the potential of global markets and innovation, but the competitive landscape is distinctly negative. Positive Impact Negative Impact 100% 95% 81% 81% 50% 0% Tapping into global market Need for product/service innovation Intensifying competition opportunities and capabilities Survey Question: Please indicate the impact that each of the following forces have on your 2010 Marketing plans.N = 218 Growth Team Membership™ Research. 8
    • Key Marketing Challenges Growth Team Membership™ Research. 9
    • Key Marketing Challenges SnapshotAll Companies B-to-B Companies B-to-C CompaniesTop three challenges: Top three challenges: Top three challenges:1 Identifying new, adjacent 1 Identifying new, adjacent 1 Coordinating regional, national, market opportunities market opportunities and global brand management2 Identifying new opportunities 2 Identifying new opportunities 2 Developing and implementing for existing products for existing products effective lead generation metrics for Sales3 Monitoring changing customer 3 Measuring marketing spend preferences and efficiency and effectiveness 3 Identifying new, adjacent market opportunities Growth Team Membership™ Research. 10
    • Top Five Key Marketing Challenges KEY TAKEAWAY: Marketing executives’ challenges reflect their external factors—finding new sources of growth. Challenge 1 Challenge 1 Identifying new, adjacent market opportunities (28%) Challenge 2 Challenge 2 Identifying new opportunities for existing proucts (22%) Challenge 3 Challenge 3 Monitoring changing customer preferences and needs (12%) Challenge 4 Challenge 4 Improving Sales and Marketing integration (12%) Challenge 5 Challenge 5 Developing segment-specific offers (12%) Survey Question: Please indicate the top five challenges shaping your Marketing decision-making in 2010.N = 182 Growth Team Membership™ Research. 11
    • Top Three Marketing Challenges (By Business Model) KEY TAKEAWAY: Marketing executive’s challenges vary significantly across business models. B-to-B B-to-C Hybrid Identifying new, adjacent Coordinating regional, national, Identifying new opportunities Challenge market opportunities (28%) and global brand management for existing projects (40%) 1 (25%) Challenge Identifying new opportunities Developing and implementing Embedding voice of the 2 for existing projects (24%) effective lead generation customer into sales and metrics for Sales (50%) marketing strategies (20%) Monitoring changing customer Identifying new, adjacent Improving Sales and Marketing Challenge preferences and needs (13%) market opportunities (25%) integration (17%) 3 Improving Sales and Marketing Understanding the needs of Upgrading talent to stay Challenge 4 integration (12%) distribution and channel competitive in the changing partners (50%) market environment (20%) Increasing the pace of new Measuring marketing spend Developing segment-specific Challenge 5 product and service efficiency and effectiveness offers (26%) introductions (12%) (33%)N = 182 Growth Team Membership™ Research. 12
    • Top Five Marketing Challenges: Root Cause KEY TAKEAWAY: For the top two challenges, Process and Staff are key root causes, but Technology is the critical one for the three remaining challenges. 100% Staff Staff Staff 32% Staff 33% 44% Staff 42% 55% Process 14% Process 50% Process 16% 30% Process Technology 27% Technology 68% 53% Technology Technology 42% Technology 26% 18% 0% Identifying new, Identifying new Monitoring changing Improving Sales and Developing segment- adjacent market opportunities for customer preferences Marketing integration specific offers opportunities existing products and needs Survey Question: For the top three challenges you selected above, please indicate whether the root cause of the challenge is staff, technology, or process.N = 175 13 Growth Team Membership™ Research.
    • Marketing Effectiveness and Expenditures Growth Team Membership™ Research. 14
    • Marketing Expenditures and Effectiveness SnapshotAll Companies B-to-B Companies B-to-C Companies Rank their marketing Rank their marketing effectiveness Rank their marketing effectiveness effectiveness as average as average as above average 3% of their company’s revenue is 3% of their company’s revenue is 4.5% of their company’s revenue is allocated to the marketing budget allocated to the marketing budget allocated to the marketing budget Largest budget expenditure is Largest budget expenditure is staff Largest budget expenditure is staff followed by traditional Marcom channel partner programs activities Expect their staffing levels to stay Expect their staffing levels to stay the same in 2010 Expect their staffing levels to stay the same or increase moderately in the same in 2010 2010 Expect their marketing budgets to stay the same in 2010 Expect their marketing budgets to Expect their marketing budgets to stay the same in 2010 increase moderately in 2010 Growth Team Membership™ Research. 15
    • Marketing’s View of Its Effectiveness (By Business Model) KEY TAKEAWAY: B-to-C marketers rank their function’s effectiveness higher than do their peers. All Companies B-to-B Companies Exceptional Exceptional 4% Below Average Below Average 5% 18% 17% Above Average Above Average 37% Average 37% 41% Average 41% Hybrid Companies B-to-C Companies Exceptional 4% Average Below Average 25% Above Average 24% 28% Average Above Average 44% 75% Survey Question: Please assess the overall effectiveness of your marketing function compared to those in other firms within your industry.N = 160 Growth Team Membership™ Research. 16
    • 2009 Marketing Budgets (By Business Model) KEY TAKEAWAY: B-to-C companies are more likely to allocate over €686,813 to their marketing budgets. 54% The red percentages are 60% The red percentages are 56% for all respondents. for all respondents. 50% 40% 33% 33% 34% 20% 21% 20% 18% 14% 9% 13% 7% 6% 8% 4% 8% 5% 4% 3% 0% 0% 0% 0% 0% Below € 686,813 € 686,813 to €2.05 €2.06 Million to €3.42 €3.43 Million to €6.86 €6.87 Million to €13.73 €13.74 Million or more Million Million Million Million B-to-B B-to-C Hybrid All Companies Survey Question: Please indicate your 2009 total marketing budget (all expenditures on marketing activities and general & administrative—including staff) was in the range of in Euro€.N = 144 Growth Team Membership™ Research. 17
    • Percentage of Annual Company Revenue Allocated to Marketing (By Business Model) KEY TAKEAWAY: B-to-C companies are likely to allocate a greater percentage of their revenue to marketing’s budget. 10.0% 5.0% 4.5% 3.0% All Companies: 3.0% 2.0% 0.0% B-to-B B-to-C Hybrid Survey Question: Please provide your 2009 total marketing budget (from the previous question) as a percentage of total company revenue: The graph above indicates the median percentages of each business model.N = 104 Growth Team Membership™ Research. 18
    • Marketing Budget Allocation (By Business Model) KEY TAKEAWAY: B-to-B and Hybrid companies allocate a significant proportion of their budget to staff. B-to-C companies’ major allocation is to their channel partner programs. 60% The red percentages are the median 40% The red percentages are the median values for all companies’ marketing values for all companies’ marketing budget by category. 40% budget by category. 40% 35% 10% 23% 5% 20% 16% 2% 2% 12% 5% 2% 10% 8% 3% 5% 5% 5% 5% 6% 5% 4% 4% 4% 1% 2% 1% 2% 2% 2% 0% 0% 0% Staffing Marketing Marketing Public Relations Channel Partner Customer Knowledge Training Communications: Communications: Programs Relationship Management Traditional media Online/media Management and promotions B-toB B-to-C Hybrid Overall Survey Question: What percentage of your total Marketing Budget is spent on the following? The graph above indicates the median percentages assigned to each component.N = 104 Growth Team Membership™ Research. 19
    • 2010 vs. 2009 Staffing Plans (By Business Model) KEY TAKEAWAY: The majority of the respondents predict their 2010 staffing levels will remain the same or increase moderately. Overall B-to-B Companies Decrease Increase Substantially Decrease Increase Substantially 5% Substantially Substantially 9% Decrease 4% 9% Decrease Moderately Moderately 12% 11% Increase Increase Moderately Moderately 35% 35% Stay the Same Stay the Same 39% 41% Hybrid Companies B-to-C Companies Decrease Increase Substantially Substantially 12% 6% Decrease Moderately Increase Increase Stay the Same 19% Moderately Moderately 50% 38% 50% Stay the Same 25% Survey Question: In comparison to 2009, your 2010 marketing staff will:N = 136 Growth Team Membership™ Research. 20
    • 2010 vs. 2009 Budgets (By Business Model) KEY TAKEAWAY: For the majority of respondents in all business models, budgets in 2010 will not be cut. Overall B-to-B Companies Decrease Decrease Increase Increase Substantially Substantially Substantially Substantially 1% Decrease 1% 5% 6% Decrease Moderately Moderately 9% Increase Increase 10% Moderately Moderately 19% 22% Stay the Same Stay the Same 63% 64% Hybrid Companies B-to-C Companies Decrease Moderately 7% Increase Moderately Increase 33% Moderately 100% Stay the Same 60% Survey Question: In comparison to 2009, your 2010 marketing budget will:N = 131 Growth Team Membership™ Research. 21
    • Anticipated Company Performance in 2010 (By Business Model) KEY TAKEAWAY: The majority of the respondents, across business models, predict their company’s revenue performance will increase moderately in 2010. Overall B-to-B Companies Decrease Decrease Decrease Substantially Substantially Decrease Increase Moderately Increase 2% 2% Moderately Substantially 3% Substantially 4% 21% 21% Stay the Same Stay the Same 14% 14% Increase Moderately Increase 59% Moderately 60% Hybrid Companies B-to-C Companies Decrease Substantially Decrease Moderately 11% Increase Increase Substantially Substantially Stay the Same 22% 33% 17% Increase Increase Moderately Moderately 50% 67% Survey Question: In comparison to 2009, your company’s performance by the end of 2010 will:N = 142 Growth Team Membership™ Research. 22
    • Marketing’s View of Its Effectiveness (By Company Revenue) KEY TAKEAWAY: Higher-revenue companies are twice as likely to rate their functional effectiveness as below average. 100% 4% 4% 4% 5% Exceptional 8% 14% Above Average 37% 37% 36% 36% 42% 43% Average 50% 41% 41% 41% 50% 42% 43% Below Average 18% 18% 18% 10% 8% 0% All Companies Below €70 Million 70 Million to €348 to €695 696 Million to €7 More than €7 €347 Million Million Billion Billion Survey Question: Please assess the overall effectiveness of your marketing function compared to those in other firms within your industry.N = 160 Growth Team Membership™ Research. 23
    • Marketing Budget (By Company Revenue) KEY TAKEAWAY: As company revenue increases so does marketing budget.100% 2% 9% 11% €13.74 Million or More 8% 15% 4% 25% 4% 6% 30% €6.87 to €13.73 Million 7% 13% €3.43 to €6.86 Million 8% 35% 10% 20% 10% 8% €2.06 to €3.42 Million 18% 50% 90% 25% 30% € 686,813 to €2.05 22% Million 54% 50% 34% 30% 22% Below € 686,813 0% All Companies Below €70 70 Million to €348 to €695 696 Million to More than €7 Million €347 Million Million €7 Billion Billion Survey Question: Please indicate your 2009 total marketing budget (all expenditures on marketing activities and general & administrative—including staff) was in the range of in US$.N = 104 Growth Team Membership™ Research. 24
    • Percentage of Annual Company Revenue Allocated to Marketing (By Company Revenue) KEY TAKEAWAY: Companies with revenue below €70 Million allocate a larger percentage of their revenue to the marketing budget. 10.0% 5.0% 5.0% 4.0% All Companies: 3.0% 3.0% 2.5% 1.0% 0.0% Below €70 Million 70 Million to €347 €348 to €695 Million 696 Million to €7 Billion More than €7 Billion Million Survey Question: Please indicate what percentage of your annual company revenue is allocated to your marketing budget including Staff, Technology, Marketing Communications, Competitive Intelligence, Market Intelligence, Field Marketing/Lead Generation, and Thought leadership event, whitepapers, etc. The graph above indicates the median percentages for each revenue band.N = 104 Growth Team Membership™ Research. 25
    • 2010 vs. 2009 Staffing Levels (By Company Revenue) KEY TAKEAWAY: Companies with revenues over €7 Billion are more likely to cut their marketing staff substantially. 100% 5% 6% 9% 7% 18% Decrease Substantially 12% 4% 23% 21% 10% Decrease Moderately 39% 39% 18% Stay the Same 33% 57% 39% 50% 39% 36% Increase Moderately 35% 33% 30% 30% 18% Increase Substantially 16% 9% 11% 3% 0% All Companies Below €70 €70 Million to €348 Million to €696 Million to More than €7 Million €347.99 Million €695.99 Million € 7 Billion Billion Survey Question: In comparison to 2009, your 2010 marketing staff will:N = 136 Growth Team Membership™ Research. 26
    • 2010 vs. 2009 Budget (By Company Revenue) KEY TAKEAWAY: Companies with revenues over €7 Billion are the only companies reporting substantial reductions in their marketing budgets. 100% 1% Decrease Substantially 9% 13% 10% 16% 24% 10% Decrease Moderately 63% 13% 63% Stay the Same 70% 50% 71% 60% 50% 31% 22% Increase Moderately 13% 20% Increase Substantially 13% 10% 5% 6% 4% 3% 0% All Companies Below €70 €70 Million to €348 Million to €696 Million to More than €7 Million €347.99 Million €695.99 Million €7 Billion Billion Survey Question: In comparison to 2009, your 2010 marketing budget will:N = 131 Growth Team Membership™ Research. 27
    • Anticipated Company Performance in 2010 (By Company Revenue) KEY TAKEAWAY: Across all revenue bands, the majority of respondents predict their company’s performance will increase moderately. 100% 2% 3% Decrease Substantially 4% 9% 5% 9% 18% Decrease Moderately 22% 9% 14% 9% 8% Stay the Same 51% 58% 50% 59% 63% 69% 67% Increase Moderately 31% 25% 21% 19% 11% 14% Increase Substantially 0% All Companies Below €70 €70 Million to €348 Million to €696 Million to More than €7 Million €347.99 Million €695.99 Million €7 Billion Billion Survey Question: In comparison to 2009, your company’s performance by the end of 2010 will:N = 142 Growth Team Membership™ Research. 28
    • Respondent Demographics Growth Team Membership™ Research. 29
    • DemographicsKEY TAKEAWAY: The typical respondent works for a private, B-to-B company with revenues below €70 Million. Enterprise Type Business Model Over half of the Hybrid Over half of the Public respondents work in The overwhelming respondents work in 17% The overwhelming aa private company. private company. majority of the 28% majority of the B-to-C respondents work in respondents work in 3% B-to-B companies. B-to-B companies. Venture Capital 6% Private 66% N = 240 N = 240 B-to-B 80% The largest set of respondents The largest set of respondents Company Revenue are in companies with are in companies with revenues below €€ 70 Million. 40% 33% revenues below 70 Million. 27% 20% 16% 11% 7% 0% N = 233 Below € 70 Million € 70 Million to €3 € 348 Million to € € 696 Million to € 7 More than € 7 Billion 47.99 Million 695.99 Million BillionSurvey Question: Please indicate the type of enterprise best represents your organization. Growth Team Membership™ Research. 30
    • Demographics: Top Five Participating Industries Automotive and Transportation 18% Energy and Power Systems 18% More than 50% of the respondents are in More than 50% of the respondents are in the Information and Communication the Information and Communication Technologies or Healthcare and Life Technologies or Healthcare and Life Sciences industries. Sciences industries. Electronics and Security 19% Healthcare and Life Sciences 20%Information and Communication 28% Technologies 0% 20% 40% Survey Question: Please indicate which of these Industry categories best describes you organization (please indicate all that apply).N = 258 Growth Team Membership™ Research. 31