2011 Marketing Trends Report Malaysia - Executive Summary

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Boardroom Research invited client-side marketers in Hong Kong from its proprietary database to participate in an online survey which would explore the decisions made by marketers looking at a variety of areas such as:
• Marketing budget and allocations
• Digital and social media
• Agency selection criteria
• Departmental involvement on agency appointments
• Agency involvement on digital strategy and social media executions
• Challenges marketers face connecting with target audience
• Aggregate satisfaction level for agencies appointed
• Challenges marketers see agencies facing
• Likelihood of marketing service categories where pitches will be called
• Agency Rankings and criteria for rankings in the following categories:
o Creative Advertising Services
o Media Planning and Buying Services
o Public Relations
o Event Marketing Services
o Direct Marketing
o Digital Marketing Services
o Brand Consulting
o Market Research

The Executive Summary takes a brief look at some of the key issues that emerged from the research. While not exhaustive of the entire results of the study, several key themes and trends emerged which are briefly covered herein.

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2011 Marketing Trends Report Malaysia - Executive Summary

  1. 1. 2011MARKETING TRENDS REPORT-MALAYSIAExecutive SummaryIMPORTANT NOTE: The information, data and commentary contained in this Report is under strict copyright to Boardroom Research. No part of this report may be reproduced in any form without written permission from Boardroom Research Pte Ltd. No part of this report may be sold, given, shared or released to any third party without written permission from Boardroom Research.
  2. 2. 2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARYMethodology & RespondentsMethodologyBoardroom Research invited client-side marketers in Malaysia from its proprietary database to participate in anonline survey which would explore the decisions made by marketers looking at a variety of areas such as: • Marketing budget and allocations • Digital and social media • Agency selection criteria • Departmental involvement on agency appointments • Agency involvement on digital strategy and social media executions • Challenges marketers face connecting with target audience • Aggregate satisfaction level for agencies appointed • Challenges marketers see agencies facing • Likelihood of marketing service categories where pitches will be called • Agency Rankings and criteria for rankings in the following categories: o Creative Advertising Services o Media Planning and Buying Services o Public Relations o Event Marketing Services o Direct Marketing o Digital Marketing Services o Brand Consulting o Market ResearchThe Executive Summary takes a brief look at some of the key issues that emerged from the research. While notexhaustive of the entire results of the study, several key themes and trends emerged which are briefly coveredherein.RespondentsA total of 476 marketers in Malaysia took part in the survey to share their industry knowledge, providing anaccurate picture of trends to come from marketers and their behaviours, as well as the most preferred agenciesin various marketing disciplines.All questions were made voluntary throughout the survey; therefore base sizes will vary for each question andchart.Some of the charts you see in this executive summary contain only partial data; the full data, charts and resultscan be obtained through purchasing the 2011 Malaysia Marketing Trends Report.2011 Marketing Trends Report – Malaysia – Executive SummaryIMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released by any means to any third party without the written permission of Boardroom Research. Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115. www.boardroomresearch.com2
  3. 3. 2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARYIndustry Business Arts & Entertainment, Products & Travel Tourism & 0% Services, 5% Retail, 15% Others, 1% Transportation, 1% Consumer Products, 14% Property & Construction, 3% Education & Training, 4% Motor Vehicles, 2% Engineering/Medical & Manufacturing, 3%Healthcare, Financial Services, 5% 2% Government & Personal Services, 1% Media, 35% IT & Telecomms, 10% Marketing Trends 2011Company Staff Size in Malaysia A range of industries were represented by the marketers who took part in the study. Larger groups of respondents were found to be working Less than 50 in the Media industry, Travel Tourism & Retail, 24% 32% 50-100 Consumer Products, and IT & 6% 101-250 Telecommunications sectors. 18% 13% Both large and small businesses made up a healthy 8% 251-500 portion of the sample. About a third of 501-1,000 respondents (32%) hailed from smaller companies Over 1,000 with less than 50 employees, whilst another 30% Marketing Trends 2011 worked in large businesses with over 500 members of staff.Job Function High-level marketing decision makers were well represented; with close to half of respondents coming from a Managerial position (47%) and over 13% a third being VP or Director level marketers (39%). 39% VP/Director Level The remaining 13% were influencers at the 47% Managerial Level Executive level. Executive Level Marketing Trends 2011 2011 Marketing Trends Report – Malaysia – Executive Summary IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released by any means to any third party without the written permission of Boardroom Research. Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115. www.boardroomresearch.com 3
  4. 4. 2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARY Area of Responsibility Most marketers surveyed in Malaysia had a local responsibility only for the Malaysian market (64%), although a healthy sample 37% of those with regional and Regional/ International markets international responsibilities was 64% still observed (37%). Malaysia market only Marketing Trends 2011 Of those who indicated they had Market Coverage of Marketers with Intl. Responsibilties international responsibilities, the main markets that these included Singapore 80% (with the exception of Malaysia, Indonesia 51% which 85% of these marketers covered) were Singapore, Thailand 48% Indonesia, and Thailand. China (PRC) 43% Hong Kong 42% Australia 33% Vietnam 33% Philippines 30% Taiwan 26% India 24% Japan 23% South Korea 17% New Zealand 16% Sri Lanka 11% Bangladesh 11% Pakistan 10% None of the markets listed 3% Marketing Trends 20112011 Marketing Trends Report – Malaysia – Executive SummaryIMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released by any means to any third party without the written permission of Boardroom Research. Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115. www.boardroomresearch.com4
  5. 5. 2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARYMarketing BudgetsCurrent budgets (2011) Marketers were asked what the Marketing Budget for 2011 total marketing budget was for their department or area of More than MYR 10,000,000 18% responsibility for 2011. The most common budget bracket was MYR 5,000,001-MYR 10,000,000 8% found to be between one and five MYR 1,000,001-MYR 5,000,000 20% million MYR, with 20% of marketers indicating so. The MYR 750,001-MYR 1,000,000 7% second most common bracket was the largest option – 18% of MYR 600,001-MYR 750,000 2% respondents indicated their MYR 450,001-MYR 600,000 4% marketing budgets were over ten million MYR. MYR 300,001-MYR 450,000 5% On the lower end of the scale, a MYR 150,001-MYR 300,000 8% good amount of marketers had MYR 1-MYR 150,000 17% budgets below MYR 150,000 (17%). A further 10% expressed No Marketing Budget 10% that they did not have a marketing budget. Marketing Trends 2011Budget increases/decreases from last year Few respondents expressed that Change in Total Marketing Budget: 2010 to 2011 their marketing budgets had fallen from 2010. Half of marketers indicated that their budgets had grown (50%), whilst 39% did not see a change at all. Overall, the average change of total marketing budgets from 2010 to 2011 was a 39% Average Increase 16% increase. Change Decrease 50% = 16% Increase No Change at all 11% Marketing Trends 2011 2011 Marketing Trends Report – Malaysia – Executive Summary IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released by any means to any third party without the written permission of Boardroom Research. Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115. www.boardroomresearch.com 5
  6. 6. 2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARYAllocation of Budgets Marketers were asked to indicate their budget Allocation of Marketing Budgets in 2011 allocations for 2011 and predict how their allocation would look in 2012 and 2016 (2012 and 2016 breakdowns are included in the full report). Respondents first allocated their budgets across various marketing channels, 39% and then followed by allocating their advertising budgets between Traditional and Advertising Non-Traditional media. The final step was asking respondents to break down their Events advertising budget allocation for Non- 24% Traditional media even further by segregating Public Relations it into the various Non-Traditional media Market Research platforms. 13% Looking only at budget allocations for 2011, Other areas most expenditure goes to Advertising and 9% Events; accounting for 63% of marketers’ 15% budgets when combined. The overall breakdown of a business’ marketing budget starts with over a third going to Advertising 2011 (39%), about a quarter going to Events (24%), a further 13% going to Public Relations, 9% to Marketing Trends 2011 Market Research and another 15% accounting for other areas. Allocation of Advertising Budgets in 2011 Chart Title Marketers with budgets have indicated that on average, the majority of advertising budgets in 2011 are still going towards Traditional media (61% to be exact). The shift where Non- Traditional media takes over as receiving the Traditional Media (Print, most funding is not as soon as one might have 61% thought. TV, Radio, Out-of-Home) Non-Traditional Media (Digital, Online, Email, 39% Mobile, Social Media, etc.) 2011 Marketing Trends 20112011 Marketing Trends Report – Malaysia – Executive SummaryIMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released by any means to any third party without the written permission of Boardroom Research. Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115. www.boardroomresearch.com6
  7. 7. 2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARYAllocation of Advertising Budgets for Non- In Malaysia, Social Media is one of the top Chart TitleTraditional Media in 2011 digital platforms for receiving the highest budget investment. It is the most invested in platform in 2011, with Online Display almost on par. Search is the third most invested in, whilst Mobile is the least. Spending and 20% Search Marketing/SEO allocation towards Mobile and Social is predicted by marketers to grow in 2012 and Online display 2016. 24% 13% Mobile Social Media 25% Other areas of non- 18% traditional media 2011Marketing Trends 2011 2011 Marketing Trends Report – Malaysia – Executive Summary IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released by any means to any third party without the written permission of Boardroom Research. Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115. www.boardroomresearch.com 7
  8. 8. 2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARYAgency SelectionCriteria used for selecting an agencyThis section looks at what marketers value most in an agency and what it is that will lure them to one agencyover another when pitches and proposals have been made. Agencies may be interested to take the followingfindings into account before formulating their pitches.The most important thing an agency needs to convey to a potential client is that they understand the client’sbusiness needs & objectives above anything else. This is followed by creativity – clients want to stand out in away that grabs their audience and gives them a nice return on their investment – undoubtedly, regarded as animportant factor to be delivered by an agency. Cost and industry knowledge tied as the third most importantcriteria taken into consideration when selecting an agency. Top 3 Criteria taken into Consideration when Selecting an Agency Agency understanding my business needs and 19% objectives Creativity & ideas 18% Agency understanding of the industry I am in 13% Cost & remuneration 13% Marketing Trends 2011. Nb.: Score is a weighted calculation: Items ranked first are valued higher than the following ranks, the score is the sum of all weighred rank counts.2011 Marketing Trends Report – Malaysia – Executive SummaryIMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released by any means to any third party without the written permission of Boardroom Research. Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115. www.boardroomresearch.com8
  9. 9. 2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARYThe decision making processWhen it comes to appointing an agency for a marketing campaign, several agencies will normally be calledupon for a pitch and at the end of the day; only one agency will make the cut. So who is directly involved inmaking this all important decision on the client side? Simple: The CEO or MD and marketing department. The vast majority (81%) Departments/People Directly Involved in Appointment of indicated that their heads of Agency business have the most influence in the decision CEO/MD 81% making process of choosing an Marketing agency. They are closely 75% followed by the marketing Finance 21% team of the company as the second most influential unit, Sales 21% almost on par with the CEO/MD. There seems to be Procurement/Purchasing 17% high a high level of collaboration between the two Other 11% parties. Surprisingly, Procurement departments have Marketing Trends 2011 little say in this process. Drilling down even further, Person Making Final Decision on Appointment of Agency respondents were then asked who makes that ultimate final CEO/MD decision. It seems it lies with the CEO or MD for the majority Head of of businesses – a whopping Marketing 63%. Marketing department heads have the final say among roughly a quarter of businesses 63% Other, 7% (26%). 26% Head of Procurement, 2% Head of Finance, 1% Marketing Trends 2011 2011 Marketing Trends Report – Malaysia – Executive Summary IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released by any means to any third party without the written permission of Boardroom Research. Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115. www.boardroomresearch.com 9
  10. 10. 2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARYThe Digital DilemmaDigital strategy & executionOverall, most businesses in Malaysia do not have an agency appointed to handle their digital strategy andexecutions (57%). Since this question was only answered by respondents who have marketing budgets; whenrecalculating the budgets reported on earlier to reflect only those with funds, 19% of these marketers havebudgets under MYR 150,000. Considering that on average, only 15% of a total marketing budget will go to non- traditional advertising, as well as the Incidence of Having Agency Appointed to Handle fact that a budget below this figure can be Digital Strategy & Executions anywhere between MYR 1and MYR 150,000, it is almost safe to assume that this bracket of marketers cannot afford the services of an agency or will be looking to “squeeze a dollar out of a 43% Yes dime”. Assuming that budgets above 57% MYR 150,000 can afford agency services, No we are left with 38% of marketers with generous budgets (subjective of course) who do not have an agency appointed to handle their digital activities. There definitely still are opportunities for Marketing Trends 2011 agencies to convert marketers who do not have any digital strategies in place or are Appointed Agencies Handling Marketers Digital formulating them in-house. Strategy & Executions For those who have engaged an agency for digital marketing, about half (49%) are Creative/Full-Service 49% using Creative agencies and not far behind, 44% are using Media Planning & Media Planning and Buying 44% Buying agencies, followed by those that specialise in Digital (43%). Digital Agency 43% Another thing that can be learnt from these multiple-response answers is that Public Relations 14% on average, two agency types are appointed per marketer. Brand Consultancy 12% Direct Marketing/Loyalty 9% Marketing CRM Other 5% Marketing Trends 20112011 Marketing Trends Report – Malaysia – Executive SummaryIMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released by any means to any third party without the written permission of Boardroom Research. Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115. www.boardroomresearch.com10
  11. 11. 2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARYAttitudes toward Digital service offerings Respondents were given two statements How Marketers think Digital is best offered regarding how they thought Digital services should be offered by agencies and were asked which they agreed with most. Overall, the slight majority of marketers (52%) are of the Digital is something that 52% 48% opinion that Digital services are best offered by creative/full-service agencies should be offering in their specialist agencies versus full-service creative spectrum of services agencies. It seems Malaysian marketers are sitting on the fence on this one. Digital is something that requires a specialist agency thats solely focused on digital strategy and executions Marketing Trends 2011Engagement and execution of Social Media marketing Social Media, one of the driving forces behind Marketers Currently Engaging Social Media the growth of digital marketing, of course did not escape this study. With the majority of marketers engaging in it (74%), it is a worthy 26% topic for exploration. Yes 74% No Marketing Trends 2011 Approach towards Social Media Marketing The vast majority of marketers with marketing budgets develop and execute their Social strategies in-house (73%), whilst only about a Develop and execute quarter have an agency appointed to do it on 27% strategy in-house their behalf. 73% Agency develops and executes strategy Marketing Trends 2011 2011 Marketing Trends Report – Malaysia – Executive Summary IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released by any means to any third party without the written permission of Boardroom Research. Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115. www.boardroomresearch.com 11
  12. 12. 2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARY“Anti-Socialists”As identified earlier, about a quarter of marketers who have a marketing budget do not engage in any SocialMedia marketing (26%). The main reasons for this, as expressed by those marketers, foremost are that they donot have the capacity to do this in-house and that they do not know where to begin to develop a Socialmarketing strategy. The third reason is that these “anti-socialists” don’t think that Social Media can reach theirtarget audience. Agencies can use these reasons to their advantage, approaching marketers and explainingthat if they do not have the capacity in-house then why not outsource them? And if they do not believe theycan reach their target audience with Social Media, agencies are in the best position to explain how they can. Top 3 Reasons for Not Engaging in Social Media Marketing Dont have the capacity to do it in-house 33% Dont know where to begin to develop a social media 24% marketing strategy Believe social media marketing doesnt hit my target 23% audience Marketing Trends 2011Social Media marketingWhen asking marketers what type of agency they have appointed to handle their Social activities,interestingly, PR agencies were among the bottom two. With Social Media being a very ‘wordy’ platform, itmay come as a surprise that PR agencies were not among the top appointed agency types by client marketers.2011 Marketing Trends Report – Malaysia – Executive SummaryIMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released by any means to any third party without the written permission of Boardroom Research. Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115. www.boardroomresearch.com12
  13. 13. 2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARYThe (Dis)ConnectionChallenges marketers faceRespondents were asked what the top three challenges were in connecting with their target audience. Thevast majority expressed that engaging with their audience and getting them to respond was the biggestchallenge (84%). This very concern is probably a reason why so many marketers have turned to Social Media,as it is one of the most effective channels in creating a conversation with customers. Not only are customersable to respond directly to brands, but they are also able to interact with each other as customers about thebrand and the campaigns that get fed to them. Other concerns included limited budgets, a lack of consumerinsights and understanding the target audience. Top 3 Challenges Marketers Face Connecting with Target Audience Engaging my target audience; getting them to respond 84% Limited budget 57% Lack of consumer insights and reliable research data 53% Marketing Trends 2011 2011 Marketing Trends Report – Malaysia – Executive Summary IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released by any means to any third party without the written permission of Boardroom Research. Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115. www.boardroomresearch.com 13
  14. 14. 2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARYFor more information and report sales, please contact Curtis Bergh at the following:P: +65-6294-1933E: curtisb@boardroomresearch.comReport Pricing:2011 Marketing Trends Report – Malaysia: $5,000 SGD*price excludes GST applicable upon billing2011 Marketing Trends Report – Malaysia – Executive SummaryIMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released by any means to any third party without the written permission of Boardroom Research. Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115. www.boardroomresearch.com14

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