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Segmentation and the Value Proposition - 2012 Marketing Priorities Survey Results

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Results and analysis of segmentation and the value proposition from the 2012 marketing priorities survey conducted in Europe.

Results and analysis of segmentation and the value proposition from the 2012 marketing priorities survey conducted in Europe.

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  • 1. growth team m e m b e r s h i p™ 1 europe Segmentation and the Value Proposition 2012 marketing priorities survey results TWEET ABOUT THE SURVEYS #2012priorities Co-SponsorThe contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved.
  • 2. growth team m e m b e r s h i p™ 2012 survey results 2 CONTENTS Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 INTRO Survey Purpose and Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 What is the Growth Team Membership™ . . . . . . . . . . . . . . . . . . . . . . . . .5 Marketing Overarching Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 SECTION 1 Key Marketing Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 SECTION 2 Marketing Resource Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 SECTION 3 Special Interest Topic: Demand Generation . . . . . . . . . . . . . . . . . . . . . . . 18 SECTION 4 Respondent Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved.
  • 3. growth team m e m b e r s h i p™ 2012 survey results Introduction 3 Marketing Survey Executive Summary SECTION 1: Key Marketing Challenges Key Internal Challenge Key Internal Challenge Root Cause Developing a value proposition Insufficient personnel and process SECTION 2: Marketing Resource Trends Budgets Resources Resource Allocation Marketing typically has an annual budget 2012 budgets and staffing levels will increase Marketers continue to allocate a majority of under $1 million moderately funding toward personnel/staffing SECTION 3: Demand Generation Demand Generation Demand Generation Focus Demand Generation Activities Effectiveness for 2012 Most respondents indicate their Marketers indicate that their teams are best Marketing’s priority is developing effectiveness is “Average” at leveraging customer segmentation segment‑specific campaignsThe contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 4. growth team m e m b e r s h i p™ 2012 survey results Introduction 4 Survey Purpose and Respondents 146 survey respondents Research Objective Methodology Survey Population Co-Sponsor To understand the most pressing Web-based survey platform Manager-level and above marketing challenges shaping marketing executives from companies executives’ 2012 planning throughout EuropeThe contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 5. growth team m e m b e r s h i p™ 2012 survey results Introduction 5 What is the Growth Team Membership™? GTM is a subscription program that supports executives GTM provides best practices, events, and services that enable within the functions that report to the CEO executives to address challenges within their companies CEO’s Growth Team™ GTM: Creating Client Value GTM’s case-based best practices help executives: R&D/ Innovation Corporate Sales Strategy Leadership Speed the design and implementation of initiatives by not reinventing the wheel Marketing Marketing CEO Corporate Development Save money and reduce risk by avoiding mistakes made by other companies Investors/ Market Finance Research Accelerate problem-solving with a cross‑industry perspective Competitive Intelligence Improve their functions’ and companies’ performance and productivity GTMresearch@frost.com www.gtm.frost.com twitter.com/Frost_GTM slideshare.net/FrostandSullivanThe contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 6. growth team m e m b e r s h i p™ 2012 survey results Introduction 6 What’s Keeping Marketing Executives Up at Night in 2012? Marketing Overarching Challenges Sample Solutions from GTM Developing a Value Proposition Marketing executives tend to guess why customers Learn how Kronos collaborated with Sales to refine the value buy, instead of collaborating with Sales or assessing proposition based on key differentiators, and embedded it with the the market. Over time, mixed messages become sales force via improved messaging techniques. diffused and weaken the value proposition. Prioritizing Markets and Market Segments Marketing executives must increase their familiarity Learn how Tandberg made customer segmentation the foundation of with prospects to prioritize segments based on fit its customer-centric business model. with core capabilities. Creating Effective Demand Generation Using Social Media Employees and customers are using social media— whether you harness it or not is up to you. Marketers Learn how Cisco created a Social Media Center of Excellence aimed need to enable practitioners with best practices in at improving employees’ capabilities in listening, planning, engaging, social networking to speak with one voice and engage and measuring. prospects. Contact us at GTMResearch@frost.com.The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 7. growth team m e m b e r s h i p™ 2012 survey results 7 INTRO SECTION 1 Key Marketing Challenges SECTION 2 SECTION 3 SECTION 4The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 8. growth team m e m b e r s h i p™ 2012 survey results Section 1 8 Top Five Key Marketing Challenges Challenge 1 Developing a compelling value proposition (23%) Understanding changing customer preferences and needs/ Challenge 2 incorporating voice of the customer (15%) Challenge 3 Prioritizing markets and market segments (17%) Challenge 4 Driving sales usage of marketing collateral, tools, and resources (14%) Challenge 5 Measuring marketing ROI (18%) Note: The respondents were asked to rank their top five challenges. The percentage values indicate how many respondents listed that particular challenge as their first through fifth challenge. SURVEY QUESTION: What are the top five functional challenges shaping your marketing strategy?The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 9. growth team m e m b e r s h i p™ 2012 survey results Section 1 9 Marketers in B-to-B companies are occupied with supporting the sales force, while their peers in B-to-C companies are struggling with balancing traditional and social media tactics Top Five Marketing Challenges (By Business Model) B-to-B B-to-C Challenge 1 Developing a compelling value proposition (25%) Developing a compelling value proposition (18%) Understanding changing customer preferences Challenge 2 and needs/incorporating voice of the customer Improving sales and marketing integration (19%) (16%) Coordinating social media and traditional Challenge 3 Prioritizing markets and market segments (18%) marketing activities (20%) Understanding changing customer preferences Driving sales usage of marketing collateral, Challenge 4 and needs/incorporating voice of the customer tools, and resources (16%) (13%) Challenge 5 Improving sales and marketing integration (16%) Measuring marketing ROI (29%) Note: The respondents were asked to rank their top five challenges. The percentage values indicate how many respondents listed that particular challenge as their first through fifth challenge.The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 10. growth team m e m b e r s h i p™ 2012 survey results Section 1 10 Understaffing is the predominant cause of Marketing’s challenges Top Five Marketing Challenges Root Cause of Top Five Marketing Challenges Developing a compelling value Staff: Limited resources and Challenge 1 proposition Process: Ineffective process (24%) Understanding changing customer Challenge 2 preferences and needs/incorporating Process: Ineffective process (31%) voice of the customer Prioritizing markets and market Challenge 3 Staff: Limited resources (43%) segments Driving sales usage of marketing Challenge 4 Staff: Limited resources (27%) collateral, tools, and resources Challenge 5 Measuring marketing ROI Process: Lack of process (36%) SURVEY QUESTION: Please indicate the root cause—staff, process, technology/systems, or strategic alignment—of your top five marketing challenges.The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 11. growth team m e m b e r s h i p™ 2012 survey results 11 INTRO SECTION 1 SECTION 2 Marketing Resource Trends SECTION 3 SECTION 4The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 12. growth team m e m b e r s h i p™ 2012 survey results Section 2 12 Marketing departments in B-to-B companies are likely to have larger budgets 2012 Marketing Budgets (By Business Model) 70% 68% 60% 49% 50% F 41% 40% 30% 26% The red percentages are 19% for all respondents. 20% F 18% 11% 7% 9% 11% 8% 10% 8% F 8% 6% 6% F F 5% F 0% 0% 0% Below $1 Million $1 Million to $3 Million to $5 Million to $10 Million to $20 Million $2.99 Million $4.99 Million $9.99 Million $19.99 Million or more All Companies B-to-B Companies B-to-C Companies SURVEY QUESTION:  hich of the above ranges (in $USD) best describes your 2012 total marketing budget (all expenditures on marketing activities and W general & administrative—including staff)?The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 13. growth team m e m b e r s h i p™ 2012 survey results Section 2 13 B-to-C companies tend to spend a higher percentage of total revenue on marketing activities Percent of Revenue Dedicated to Marketing Budget (By Business Model) 0.40% 0.23% 0.20% 0.15% 0.10% 0.00% All Companies B-to-B Companies B-to-C Companies SURVEY QUESTION:  hat is your 2012 total marketing budget (from the previous question) as a percentage of your company’s total 2011 revenue? WThe contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 14. growth team m e m b e r s h i p™ 2012 survey results Section 2 14 B-to-C companies are more likely to embrace online marketing over traditional media Marketing Resource Allocations (By Business Model) 30% 30%30% F 25%20% 15% 15% F 10% 10% 10% 10% 10% 10%10% 9% F F 5% 5% 5% 5% 5% 5% 4% 2% F F 2% 3% 0% 2% 0% 1% F F 1% 0% 0% 0%0% F F Personnel/ Marketing Marketing Channel Partner Marketing Customer Content Knowledge Training Other Staffing Communications: Communications: Programs Automation Relationship Development Management Traditional Media Online/Digital Platform Management (white papers, Systems Media (CRM) Software brochures, social and Maintenance media, and trade show support) All Companies B-to-B Companies B-to-C Companies SURVEY QUESTION: How have you allocated your 2012 marketing budget across the above activities (allocation must total 100%)? The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 15. growth team m e m b e r s h i p™ 2012 survey results Section 2 15 Marketing staffing levels are expected to remain constant in 2012 Marketing Staffing Changes (By Business Model) All Companies B-to-B Companies Decrease Substantially 3% Increase Substantially Decrease Substantially 2% Increase Substantially 5% 6% Decrease Moderately Decrease Moderately 16% 19% Increase Moderately Increase Moderately 30% 28% 46% 45% Stay the Same Stay the Same B-to-C Companies Decrease Substantially Decrease Moderately 5% 10% Increase Moderately 35% 50% Stay the Same SURVEY QUESTION: In comparison to 2011, your 2012 marketing staffing will…The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 16. growth team m e m b e r s h i p™ 2012 survey results Section 2 16 Marketing foresees stagnant budgets in 2012 Marketing Budget Changes (By Business Model) All Companies B-to-B Companies Decrease Substantially Increase Substantially Decrease Substantially 2% Increase Substantially 5% 6% 4% Decrease Moderately Decrease Moderately 16% 19% 31% Increase Moderately 34% Increase Moderately 42% 41% Stay the Same Stay the Same B-to-C Companies Decrease Substantially Increase Substantially Decrease Moderately 5% 15% 10% 25% Increase Moderately 45% Stay the Same SURVEY QUESTION: In comparison to 2011, your 2012 marketing budget will…The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 17. growth team m e m b e r s h i p™ 2012 survey results Section 2 17 Marketers indicate their effectiveness is “Average” in comparison to their peers Marketing Effectiveness (By Business Model) All Companies B-to-B Companies Exceptional Exceptional Below Average Below Average 4% 4% 15% 14% Above Average 36% Above Average 37% 45% 45% Average Average B-to-C Companies Exceptional Below Average 5% 15% Above Average 35% 45% Average SURVEY QUESTION: How would you rate the performance or effectiveness of your function compared to others within your industry?The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 18. growth team m e m b e r s h i p™ 2012 survey results 18 INTRO SECTION 1 SECTION 2 SECTION 3 Special Interest Topic: Demand Generation SECTION 4The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 19. growth team m e m b e r s h i p™ 2012 survey results Section 3 19 Marketers tend to consider their demand generation capabilities as “Average” in comparison to their peers Demand Generation Effectiveness (By Business Model) All Companies B-to-B Companies Exceptional 2% Below Average Below Average Above Average 15% 16% Above Average 30% 27% 55% 55% Average Average B-to-C Companies Exceptional 6% Below Average 17% Above Average 22% 55% Average SURVEY QUESTION: How would you rate the effectiveness of your marketing department’s demand generation activities (driving awareness and consideration)?The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 20. growth team m e m b e r s h i p™ 2012 survey results Section 3 20 The majority of respondents indicate that mobile marketing is their weakest demand generation capability Demand Generation Activities Effectiveness (All Companies) 100% 2% 2% 2% 5% 5% 5% 18% 20% 23% 25% 28% 17% 22% 31% 23% 42% 42% 50% 42% 55% 50% 44% 52% 47% 52% 27% 22% 27% 25% 36% 22% 19% 23% 15% 8% 11% 1% 3% 4% 3% 0% Develop lead Clean and qualify Allocate spend Identify and Integrate social Integrate mobile Employ Leverage Generate new qualification leads across demand integrate media tactics marketing tactics campaigns customer customer criteria with generation appropriate customized by segmentation segments Sales platforms content for each vertical stage of the buying cycle Do Not Use Below Average Average Above Average Best-in-Class SURVEY QUESTION: How would you rate the effectiveness of your marketing department’s ability to execute the above demand generation activities?The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 21. growth team m e m b e r s h i p™ 2012 survey results Section 3 21 B-to-B marketers are unhappy with the effectiveness of their mobile and social media marketing tactics Demand Generation Activities Effectiveness (B-to-B Companies) 100% 2% 2% 3% 4% 7% 18% 20% 22% 30% 29% 29% 20% 26% 42% 51% 47% 41% 38% 56% 50% 37% 48% 48% 42% 24% 27% 29% 28% 32% 20% 22% 20% 13% 2% 9% 4% 4% 4% 0% Develop lead Clean and qualify Allocate spend Identify and Integrate social Integrate mobile Employ Leverage Generate new qualification leads across demand integrate media tactics marketing tactics campaigns customer customer criteria with generation appropriate customized by segmentation segments Sales platforms content for each vertical stage of the buying cycle Do Not Use Below Average Average Above Average Best-in-Class SURVEY QUESTION: How would you rate the effectiveness of your marketing department’s ability to execute the above demand generation activities?The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 22. growth team m e m b e r s h i p™ 2012 survey results Section 3 22 Integrating mobile marketing tactics is B-to-C respondents’ largest area for improvement Demand Generation Activities Effectiveness (B-to-C Companies) 100% 5% 6% 5% 11% 11% 21% 16% 21% 26% 6% 17% 21% 45% 32% 52% 74% 44% 61% 53% 50% 48% 63% 26% 44% 16% 21% 33% 16% 26% 11% 21% 16% 15% 5% 5% 6% 0% Develop lead Clean and qualify Allocate spend Identify and Integrate social Integrate mobile Employ Leverage Generate new qualification leads across demand integrate media tactics marketing tactics campaigns customer customer criteria with generation appropriate customized by segmentation segments Sales platforms content for each vertical stage of the buying cycle Do Not Use Below Average Average Above Average Best-in-Class SURVEY QUESTION: How would you rate the effectiveness of your marketing department’s ability to execute the above demand generation activities?The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 23. growth team m e m b e r s h i p™ 2012 survey results Section 3 23 Marketing is focused on activities involving segmentation and the value proposition Demand Generation Activities for 2012 (By Business Model) All Companies B-to-B Companies B-to-C Companies Developing segment-specific campaigns Developing segment-specific campaigns Refining the value proposition (64%) (64%) (72%) Developing qualification criteria Developing segment-specific campaigns Developing qualification criteria collaboratively with Sales (61%) (62%) collaboratively with Sales (67%) Developing qualification criteria Identifying new segments (61%) Refining the value proposition (58%) collaboratively with Sales (60%) Reevaluating target segments (61%) Identifying new segments (55%) Identifying new segments (53%) Enhancing contact database (56%) Reevaluating target segments (50%) Enhancing contact database (40%) Improving lead cleansing (44%) SURVEY QUESTION: Which of the above demand generation activities does your marketing department intend to focus on in 2012 (check all that apply)?The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 24. growth team m e m b e r s h i p™ 2012 survey results Section 3 24 Respondents in B-to-C companies are likely to use more email campaigns, while their peers in B-to-B companies rely on live events Media Mix for Demand Generation Activities (By Business Model) All Companies B-to-B Companies B-to-C Companies 20% 20% 25% Email 5% 5% 5% Social Media 25% 25% 10% Live Events 10% 15% 10% Internet (search engine optimization) SURVEY QUESTION: What is the percentage mix of media tactics (listed above) associated with your demand generation activities (total must equal 100%)?The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 25. growth team m e m b e r s h i p™ 2012 survey results 25 INTRO SECTION 1 SECTION 2 SECTION 3 SECTION 4 Respondent DemographicsThe contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 26. growth team m e m b e r s h i p™ 2012 survey results Section 4 26 Respondent Demographics Enterprise Type Business Model Venture Capital Hybrid The majority of the B-to-C The majority of the 4% respondents come Company respondents come from 6% from Public companies. (Indirect) B-to-B companies. 23% Private 29% B-to-C Company 6% 60% Public (Direct) 71% B-to-B Company N = 144 N = 144 Company Revenue 40% 29% 24% 20% 20% 18% 9% 0% N = 143 Below $100 Million to $500 Million to $1 Billion to More than $100 Million $499.99 Million $999.99 Million $11 Billion $11 Billion SURVEY QUESTION: Please indicate the type of enterprise, business model, and revenue that best represents your company.The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.
  • 27. growth team m e m b e r s h i p™ 2012 survey results Section 4 27 Respondent Demographics: Top Five Participating Industries Automotive and Transportation 22% Environmental and Building Technologies 23% Chemicals, Materials, and Food 25% Healthcare and Life Sciences 29% 31% Energy and Power Systems N = 144 0% 20% 40% SURVEY QUESTION: Please indicate which region you are located in and which industry categories best describe your company (check all that apply).The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved. Growth Team Membership™ research.