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Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
Yearly Marketing Survey 2009 Belgium Trends
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Yearly Marketing Survey 2009 Belgium Trends

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Results of The House of Marketing Yearly Marketing Survey (6th edition); over 1000 Belgian marketeers and CMOs respondent

Results of The House of Marketing Yearly Marketing Survey (6th edition); over 1000 Belgian marketeers and CMOs respondent

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  • 1. 2009 2009 April 6th edition 6th edition
  • 2. The Yearly Marketing Survey An initiative by: In collaboration with Supported by
  • 3. This booklet and its content are copyright protected. Text and figures cannot be reproduced without permission of The House of Marketing. Short quotes from the text are allowed, on the condition that the source is mentioned as “The House of Marketing (www.thom.eu)”. For more information or questions, please contact: Philippe Ruttens, Marketing & Knowledge Manager, on +32 (0)478 91 61 92, philippe.ruttens@thom.eu If you wish to organize a presentation of the 2009 Yearly Marketing Survey for your organization or need an article about the survey results, please contact us too.
  • 4. Voorwoord door Patrick De Pelsmacker (Prof. Dr. Marketing – Universiteit Antwerpen) Donkere wolken, back to the basics en een ethisch Wat onmiddellijk opvalt in vergelijking met de reveil vorige “vette jaren” is de ingrijpende impact die het economische klimaat op het gemoed en de Het is weer de tijd van het jaar. De resultaten verwachtingen van de marketeer lijkt te hebben. zijn bekend van de jaarlijkse enquête van The In vorige jaren werd wel eens gemeld dat er meer House of Marketing bij deze keer meer dan 1000 zou moeten gebeuren met dezelfde mensen, maar Belgische marketeers, die in december 2008 en in het algemeen zat er in de verwachtingen van januari 2009 de vragenlijst hebben ingevuld. Zoals de marketeers een positieve trend. Dit jaar is dat gewoonlijk en begrijpelijk zijn business-to-business radicaal anders. marketeers sterk vertegenwoordigd (45% van De door The House of Marketing berekende de respondenten) in vergelijking met uitsluitend “confidence index” die over de voorbije jaren business-to-consumer marketeers (17%). Ook zoals heen vrij stabiel bleef, laat voor 2009 een gebruikelijk werden de traditionele vragen naar diepe duik zien. trends, buzzwords en prioriteiten gesteld, maar anders dan de vorige jaren lag in de vraagstelling De respondenten voorzagen voorlopig nog geen erg veel nadruk op de economische situatie, en vermindering van de marketingteams, maar wel de consequenties ervan voor het marketingvak in minder projecten en minder budget. Vrijwel België. iedereen verwacht drastische budget cuts, gemiddeld met 23%. Bijna de helft verwacht een
  • 5. daling van het mediabudget – een netto-daling, geen financiële, het meten van “return on marketing verschuiving naar andere marketinginvesteringen. investment” (ROMI) worden groter, zowel bij Vooral ICT en financiële instellingen voelen zich business- als bij consumentenmarketeers. bedreigd. Algemeen verwacht men een hogere prijsgevoeligheid, uitstel van aankopen, en een Vergeet de frivole buzzwords en de nieuwigheden, druk op de prijzen, hoewel bijna twee derden vindt maar focus op de basics van prijszetting, inzicht in dat hun producten uniek zijn, en dat de klanten er “customer experience”, klantentrouw en marketing een premium willen voor betalen. Niets nieuws metrics. Hoewel slechts 60% aangeeft beslissingen onder de recessiezon dus. Marketeers reageren te baseren op metrics, geeft de meerderheid aan zoals iedereen in een economische recessie die dat een kritische factor bij het verdedigen van razendsnel om zich heen grijpt: met een dalend het marketingbudget het bewijzen van ROMI vertrouwen in de toekomst, het besef dat er minder is. En praat met uw klanten. Leer directe en te verkopen zal vallen, en dat er voor die inkomsten interactieve communicatietechnieken. Er is een duidelijke verschuiving te zien in de verwachtingen harder zal moeten gewerkt worden dan voorheen. m.b.t. marketinginvesteringen: meer naar direct marketing, events, on-line en e-mail, en een Hoe reageren de marketeers op deze donkere stagnatie van budgetten voor klassieke massamedia. wolken? Naar eigen zeggen met “back to the Het lijkt wel alsof marketeers stellen dat hypes en basics”. De belangrijkste vijf uitdagingen blijven nieuwigheden meer iets zijn voor goede dan voor dezelfde als vorig jaar, maar het belang van slechte tijden, terwijl in moeilijke tijden misschien het bevorderen van klantentrouw en van het
  • 6. net nieuwe en creatieve invalshoeken voor een Maatschappelijk verantwoord ondernemen, impactvoller marketingbeleid kunnen zorgen. “triple bottom line” (de economische, ecologische en sociale opdrachten van bedrijven voor ogen En dan de buzzwords… die gedragen zich qua belang houden), en zorgen voor echte meerwaarde voor in de opeenvolgende jaren als…buzzwords: ze klanten, gebaseerd op inzicht in hun behoeften schieten omhoog als een vuurpijl, en doven net zo en ervaringswereld, vinden we inderdaad al een snel uit. De blijvers zijn inderdaad de basics: ROMI tijdje terug in de missie, strategie en operationele (56% van de respondenten), customer intelligence activiteiten van vele ondernemingen. (57%) en customer experience (66%). Als marketeers hun maatschappelijke Opmerkelijke aandachtspunten, en zelfs verantwoordelijkheid ernstig nemen, worden ze in stijgers in vergelijking met vorige jaren, zijn de toekomst allicht voor voller aangezien door de “authenticity” (57%) en “green marketing” rest van de wereld. Als ze hun basics beter leren (76%). beheersen, worden ze wellicht ook meer au serieux Zijn de marketeers aan een grondige introspectie genomen door hun management. De donkere begonnen, en is er zelfs sprake van een ethisch wolken zijn dan misschien een catalysator geweest reveil? Weg van de gebakken lucht, mensen van een mentaliteitswijziging die hoe dan ook nodig aanspreken op wat echt belangrijk voor hen is, en was. meer aandacht voor de rol van het bedrijf en het merk in de maatschappij? Het zou me niet verbazen. Patrick De Pelsmacker, 18 Maart 2009
  • 7. Table of Contents Introduction 1 Participants 2 Executive Summary 3 Buzzwords, challenges and media for 2009 6 1. Buzzwords 8 2. Challenges 11 3. Marcom budget 14 How is the crisis impacting marketers? 20 1. The Marketers Confidence Index 22 2. Pricing and Value 25 Planned responses to the crisis 28 1. Defending Budgets 30 2. Measuring Marketing Performance 31 3. Building Market Intelligence 32 The House of Marketing’s recommendations 34 Glossary 40
  • 8. Introduction The House of Marketing started conducting the Belgian marketers to the current economic crisis: Yearly Marketing Survey in 2003. It is the most extensive and well-known survey keeping track How are they really impacted? of marketers’ thinking, behaviours, opportunities What is the level of confidence of Belgian and challenges in Belgium marketers in terms of budget, staff and projects? Every year, hundreds of marketing professionals Which strategies are they adopting? across Belgium complete the extended How do they measure their marketing questionnaire in December and January, looking performance? forward to the coming year. As the leading What impact has the economic crisis on barometer of Belgium’s marketing community, the pricing and other policies? 2009 Yearly Marketing Survey will again identify the new trends, current expectations and future In addition, the challenges, buzzwords and challenges of Belgian marketers across B2C and Marcom budgets of Belgian marketers are of B2B sectors. course surveyed, for the sixth year in a row. This document is a summary of the highlights and key The 2009 Yearly Marketing Survey innovates by conclusions of the 2009 Yearly Marketing Survey launching the Marketers Confidence Index, and as presented on April 2, 2009 at the Stichting focuses more on the impact on and reaction of Marketing event.
  • 9. Participants A total of 1028 respondents participated in the Additionally, there were 1240 respondents survey of which 73% are Dutch-speaking, 20% are who either did not provide relevant answers French-speaking and the remainder 7% English- (we recognized random clicking patterns) or speaking. only completed their profile to obtain survey results Respondent classification in terms of size of marketing team finds the highest for 1-4 employees (29%) or for above 50 employees (24%), whereas the lowest response is for department sizes of 25-49 employees (10%) Number of respondents 1240 14 2282 45% of participants work in a B2B environment, 17% in a B2C one and 38% in a hybrid environment The survey was conducted online from Dec 463 1028 5, 2008 to Jan 30, 2009. The questionnaire contained 21 questions and took around 10 565 minutes to answer For each question the response rate fluctuates Full surveys Answers Total responses responses Mere site Total sample between 565 and 1028 (partial survey - reviewed - reviewed viewers completion), depending on the answers given
  • 10. Executive Summary Customer loyalty, experience and intelligence rule, Build a sustainable strategy and organization or they should… Marketers who want their brand to stand out from the crowd in the long-term will need to be The marketers’ confidence index is on a historically genuine and authentic about the value proposition low level. While marketers expect their teams to conveyed to target segments. A perfect fit has to be remain relatively stable in 2009, a huge majority created between the corporate identity, business expect their already revised 2009 budget to be model and culture. reviewed again in the coming months. Healthcare Companies also need to focus on improving their and Utilities marketers are least positive compared internal operations and external touch-points to colleagues in other sectors. within a consistent Customer Experience strategy Belgian marketers need to adopt a longer term Do more with less marketing resources decision horizon in order to sustainably position marketing as a key value adding department The size of the marketing budget is one of the first within the organization. Based on the findings items to be challenged in times of crisis. It is far from our survey, we identified a number of from likely that these will be restored to their pre- attention points that should help building further crisis levels without marketers needing to build up on both the external equity of marketing and the a rock-solid argumentation. internal perception/credibility of the marketing Marketers must develop pragmatic marketing department: performance management tools allowing them
  • 11. to track, manage, benchmark and predict the reactions better. Too many complex decisions are financial return on marketing initiatives. The still judgment-based, many marketers lack proper importance of and focus on measuring ROMI analytical skills to generate relevant customer will return once short-term corrective actions insights from the often non-standardized and have been implemented and companies need to scattered data available within their organization. evaluate future investments. Marketers must also get their basics right (such as pricing policy) before launching into the latest Define, create and capture more value and buzzword; this includes processes, segmentation margins and value proposition. As companies expect to be subject to higher price sensitivity, postponement of purchases and a Some key findings of the 2009 Yearly Marketing decrease of volumes sold, marketers need to focus Survey include: on highlighting the added-value of their products/ services even more. • Marketers expect green marketing and Companies also need to find a better balance customer experience to gain significantly in between top-line and bottom-line (analytical) importance. Green, ethical marketing as well marketers to leverage their customer data as authenticity are definitely contributing to effectively, identify most sustainable and profitable the sustainability wave. customers as well as anticipate customers’
  • 12. • Improving customer loyalty and value is are still under-used while measuring marketing marketers’ biggest challenge for 2009. performance. Marketers seem to place greater emphasis on monitoring the financial impact of marketing. • Analytical deployment is depending on Nevertheless, ROMI is considered as a less organizational context and prioritization. Staff, important challenge, probably due to short time and budget are the key obstacles to term results focus and smaller budgets. improving marketing’s focus on this area. • The top 3 biggest media spend in 2009 remains unchanged compared to last year (direct marketing, events and newspapers). Use of online communication channels such as e-mail marketing has of course been gaining more and more importance in marketers’ minds over the years. • Despite all ingredients being available, key efficiency metrics such as Average Revenue Per Customer and Customer Lifetime Value
  • 13. BUZZWORDS, CHALLENGES AND MEDIA FOR 2009
  • 14. 1. Buzzwords • Green marketing is the n°1 How do you expect the following buzzwords to evolve in terms of importance buzzword for Belgian marketers for the coming year? in 2009, moving up from the third spot in 2008. 76% • Customer experience and authenticity are prominent in Customer Experience 66% their mind too. • Top 2 buzzwords are similar 57% for B2B and B2C marketers. Customer intelligence and ROMI are next on the list of B2B Customer intelligence 57% marketers. For B2C, authenticity and social media rank buzzwords 56% n°3 and 4 respectively. 0% 10% 20% 30% 40% 50% 60% 70% • Interestingly, half of Belgian % of respondents w expect an increase ho marketers have never heard Legend: of “Crowdsourcing” and 1 in In survey 2008 New to the survey 5 are not aware of the “360 N= 598 Marketing” term.
  • 15. Customer Experience and ROMI are the only buzzwords to remain strong over the last five years. BUZZ DROP BUZZ STABLE BUZZ INCREASE Social Media ROMI Green Marketing All others tend to stay just buzzwords, Web 2.0 Customer such as Blogging. Blogging Experience Ethical Marketing Evolution of buzzwords’ importance, perceived by marketers 80% ROMI 70% Blogging Customer experience 60% 50% Remember: buzzwords rankings are Social media usually different from actual usage 40% Web 2.0 2005 2006 2007 2008 2009 trends and challenges. N= 598
  • 16. How sustainable will Green Marketing How do you expect the following buzzwords to evolve in terms of importance be? Which sector is surfing on the for the coming year? “sustainability” wave? As expected Transport & Logistics 91% 71% is the most “green buzzed” sector, Healthcare 88% 63% followed by Healthcare and Utilities. 88% 54% ICT 80% Distribution is the least. Finance & Insurance 79% 38% 71% Consumer Goods 79% 60% Other 79% 65% Authenticity is also seen as a top Industry & Materials … 78% 78% 62% 61% buzzword for all sectors except ICT Professional Services 74% 62% and Utilities. 65% 61% 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% % of respondents who e xpect an increase % of respondents who e xpect an increase Marketers in the financial and Legend: industrial sectors are those who see Top 3 N= 598 customer experience most as a top 3 buzzword, those in Utilities see it least.
  • 17. 2. Challenges • The top 4 challenges for Belgian What will be your major marketing challenges for 2009? marketers are all about improving customer loyalty and value 52% proposition. Build customer loyalty and trust 48% 46% • Financial concerns have increased Building a strong brand 45% as marketers named for the 33% first time margin protection Protect margins Sustain revenue growth 33% and sustainable revenue as top Protect market share 30% challenges. 29% 28% • Competitive differentiation Communicate through online media 27% remains, as expected, one of 0, 0% 10, 0% 20, 0% 30, 0% 40, 0% % of respondents 50, 0% 60, 0% marketers’ top 3 challenges. Legend: Not in 2008 Top 5 In 2008 Top 5 N= 683
  • 18. • Differentiation from competition Evolution of challenges’ importance, perceived by marketers and customer loyalty remain solid top-of-mind challenges for marketers over the past 4 years. among answers 0 1 • Online communications, Building customer loyalty and trust 2 ROMI Innovation and ROMI (measuring 3 4 marketing’s ROI) see a strong 5 media Building a strong brand decline compared to 2008. 6 7 8 • Marketers strongly acknowledge 9 Protect margins the importance of highlighting 10 Sustain revenue growth the value and benefits of 11 2004 2005 2006 2007 2008 2009 products/services they provide as a Top 3 challenge in 2009. N= 598
  • 19. Looking to business environments, What will be your major marketing challenges for 2009? main challenges seem to be quite similar… Nevertheless B2C marketers place greater emphasis on building a strong(er) brand which is in line with their desire to protect market shares. They also assess the challenge of communicating through online media as one of the most important, which is less the case for B2B marketers.
  • 20. 3. Marcom Budget The biggest media spend in 2009 will Please indicate which 3 media represent the largest part of your communication budget for 2009? be: 1. Direct marketing 2. Events 3. Newspapers/magazines 4. E-mail marketing 5. Online interactive marketing These five media are firmly established as main spenders of the Marcom budget since they hold exactly the same position as last year. Nevertheless, the share of top 4 spenders in the total budget tends to stabilize or slightly decrease at the benefit of other media. The Marcom Legend: budget is actually spread over an Not in 2008 Top 5 In 2008 Top 5 N= 661
  • 21. increasing number of activities. In B2B direct marketing and events Which media takes the largest share of the Marcom budget? spend is shifting to e-mail marketing and other media. 25% • As a result of diversification of the 21% 24% media mix expenditures, online 29% media such as e-mail marketing Events 21% 18% are grabbing larger shares in the 13% Marcom budget allocation. Newspapers & 20% Magazines 13% • Newspapers and magazines are E- 7% falling below 2007 levels in terms 12% % of respondents of Marcom budget share. 0% 10% 20% 30% • Direct marketing remains the main spender for B2B Marcom budgets Legend: N2007=323 N2008=290 2007 2008 2009 N2009=262
  • 22. For B2C companies, newspapers & magazines and direct marketing Which media takes the largest share of the Marcom budget? spend is shifting partly to classic TV. • B2C firms are expected to get 27% Classic TV 25% back to basics since classic 30% TV media is regaining share, 21% Newspapers & Magazines remaining the main spender of 12% 19% Marcom budget for 2009. 13% 17% 13% • Moreover, promotions and sampling is conquering share 6% 7% % of respondents at newspapers & magazines 0% 10% 20% 30% and direct marketing’s media expense. Legend: N2007=323 N2008=290 2007 2008 2009 N2009=262
  • 23. 45% of marketers expect a budget I expect further budget reviews in 2009 and I agree that it would impact decrease that would negatively affect negatively our media expenditures their media expenditures. ICT 64% Finance & Insurance 58% Consumer Goods 54% Mostly ICT, Finance and Consumer Industry & Materials 50% 49% Goods sectors are expecting further Professional Services 44% 41% budget reviews to impact the 39% 38% composition of their actual media Average: Other 32% 45% Healthcare % of respondents who agree expenditures. 29% 0% 10% 20% 30% 40% 50% 60% 70% In times of downturn, cutting media Downturn expected to impact media expenditures expenditures means shifting the Yes No media mix, otherwise this shift won’t take place. Downturn to Yes 54% media mix 29% towards online The observed shift in the media mix channels 23% 48% is mainly due to past and expected No budget reviews. % of respondents
  • 24. The House of Marketing Comments… Marketers are struggling to adopt a long term The borders between companies and customers sustainable business model tend to disappear; firms are looking to (or should) gather much more information about their clients BUZZWORDS in order to build deeper and more effective customer relationships. Consumers are also keen The results highlighted by the survey are not that to better know companies and products before surprising. Marketers are definitely matching becoming loyal. customers’ environmental concerns by picking up green marketing as the top buzzword for CHALLENGES the coming year. Ethical marketing as well as authenticity are values that marketers also plan In times of crisis, companies’ challenges are clear: to take into consideration when promoting their it’s all about improving customer loyalty and value products/services. Together these three buzzwords proposition. contribute to the actual sustainability wave. As predicted by buzzwords learnings, companies tend to be much more customer-oriented, The relative importance of customer experience improving their value definition and branding and intelligence terms also documents the efforts, trying to differentiate even more from proactivity shown by Belgian marketers when the competition. Focusing on building customer interacting with customers. loyalty and trust as well as highlighting benefits of products seem to be key strategies used by
  • 25. Belgian marketers for keeping market shares and profit margins at decent levels during economic downturns. Measuring return on marketing efforts isn’t anymore in the top five challenges since companies tend to be more conservative regarding their marketing policies and working with smaller budgets. MARCOM Strong budget reductions have made marketers rethink their media mix. Overall, communications budget have been shifting from Direct Marketing and Events to e-mail marketing and other media. 45% of marketeers still expect a media budget decrease, and those do rebalance their media mix to more measurable media
  • 26. HOW IS THE CRISIS IMPACTING MARKETERS?
  • 27. 1. The Marketers Confidence Index The marketers confidence index is at Net Adjusted 75% an historically low level, featuring a Index(%) strong decrease from 2008 and being 50% seen well below its 2005 level. 26,8% 27,5% 24,7% 22,6% 25% 9,5% 0% 2005 2006 2007 2008 2009 The sharp drop in confidence is mainly due to the increased Legend: pessimism regarding projects and budgets. Note: The marketers confidence index is an average of marketers’ expectations about their budget, projects and staff headcount. The percentage reflects a balance between the positive, neutral and negative views. It can vary from -100% to +100% depending on the amount of confidence.
  • 28. Marketers in healthcare remain least 9% Legend: positive compared to colleagues in Finance & insurance 6% ICT 8% other sectors. -0,2% Average: Based on previous years, healthcare 4% 9.5% expectations appear very accurate in Professional services 20% Industry & materials 15% hindsight, whereas the other sectors Consumer goods 5% tend to to be too positive. 15% Healthcare -3% Other 20% Net Adjusted Index(%) Not a single sector has escaped budget -10% 10% 30% cuts in 2008. Marketing budgets have been cut by 56% on average. What was the actual change of your marketing budget during 2008 compared to the previous year? Transport & Logistics and Finance & Insurance have been the most affected, Distribution the least.
  • 29. Marketers have downward expectations overall. In addition actual 2007 figures were already pessimistic. Belgian marketers are less confident than during the last five years, especially on the budget side Legend: 2009) hindsight)
  • 30. 2. Pricing and Value Prices are expected to remain stable How do you expect the current economic crisis to affect your prices or price or to decrease due to the economic policies in 2009? situation. 43% Lower price or higher discounts 32% Most marketers expect to sustain Higher price 14% their current pricing policy overall. Lower margins 11% 5% Lower volumes 4% % of respondents 0% 10% 20% 30% 40% Companies will need to highlight the How do you expect your customers to react to the economic crisis? added value of their products/services even more. Customers will become far more price sensitive and postpone purchases due to the economic crisis.
  • 31. The House of Marketing Comments… Financial concerns and prospects hit marketers’ • Marketers expect to be subject to higher price confidence. sensitivity, postponement of purchases and a decrease of volumes sold. • The Marketers Confidence Index is on a • Companies will need to focus on highlighting historically low level, after observing the the added-value of their products/services largest absolute change in 5 years. more to customers in order to counter an • This dip can be atributed to a significant expected downward trend. decrease in expected budget and projects evolutions. • All sectors have sustained marketing budget cuts, healthcare and distribution being the most conservative for the future. Marketers need to fight the crisis with lower budgets • 80% of respondents expect their already revised 2009 budget to be reviewed again in the coming months.
  • 32. PLANNED RESPONSES TO THE CRISIS
  • 33. 1. Defending Budgets Return on Marketing Investment (ROMI) is considered the critical What would allow you to better defend your 2009 marketing budget? success factor in defending marketing budgets. ROMI/Proof of performance 46% The need for proofs in these hard Data (availability & quality) 10% times is high; no proof, no budget. New product launches 10% 9% 8% 7% 6% Visibility & trust of 5% % of respondents 0% 10% 20% 30% 40% 50% N= 859
  • 34. 2. Measuring Marketing Performance When tracking marketing How do you expect the current economic crisis to affect your prices or price performance, three hard metrics policies in 2009? and two soft metrics are most often used: 69% 1. Customer satisfaction 2. Number of customers Number of customers 60% 3. Loyalty 4. Brand awareness Loyalty 53% 5. Average revenue per customer (ARPC) Brand awareness 47% Mastering ARPC and CLV (customer Average revenue per customer 47% lifetime value) tend to be key in outperforming competition. % of respondents Legend: Hard metrics
  • 35. 3. Building Marketing Intelligence • Usage of metrics is higher than their usage for decision making. 1 out of 5 marketers do not use Yes No the full combination of metrics available to them. Both metrics Yes 81% 8% Using hard metrics Hard only No metrics No 7% 4% • Reports are more analyzed analysis than reports by marketers than the actual raw data, generating missed Many of the opportunities to keep or increase insights our Yes 37% 55% customer value. department is building are based 16% on intensive data analysis 48% No % of respondents
  • 36. The House of Marketing Comments… Marketers need to invest in measurement and intelligence to tackle future challenges successfully Marketers realise the importance of ROMI … …yet they only apply very basic marketing performance principles. • Almost half of the marketers indicates ROMI as • Half of marketers do not track the average an indispensable tool to defend their budget revenue per customer and less than 20% of • Marketers indicating that they monitor marketers know the customer lifetime value financial performance and key customer of an individual customer metrics are more confident to outperform • 1 out of 5 marketers does not use a combination their competition of hard and soft metrics • Customer Lifetime Value and Loyalty metrics are still under-used despite being expected performance boosters and with all ingredients available
  • 37. THE HOUSE OF MARKETING’S RECOMMENDATIONS
  • 38. Build a Sustainable Strategy and Organization • Marketers need to adopt a longer term decision Marketers must get their basics right horizon in order to sustainably position (such as pricing policy) before launching marketing as a key value-adding department into the latest buzzword; this includes within the organization. processes, segmentation and value • Marketers who want their brand to stand out proposition. from the crowd in the long-term will need to be genuine and authentic about the value proposition conveyed to target segments. A • Companies need to focus on improving their perfect fit has to be created between corporate internal operations and external touch-points identity, business model and company within a consistent Customer Experience culture. strategy. • Companies need to find a better balance between top-line and bottom-line marketers to leverage their customer data effectively and anticipate customers’ reactions.
  • 39. Do More With Less Marketing Resources The size of the marketing budget is one of the first Marketers need to be able to prove items to be challenged in times of crisis. It is far and communicate the return on their from likely that marketing budgets will restore to initiatives if they want to grow and their pre-crisis levels without marketers needing to build up a rock-solid argumentation to support a capitalize on their authority within the future request for marketing budget growth. boardroom. • Marketers should not only think about how to • Marketers must develop pragmatic marketing differentiate their product, brand or company. performance management tools allowing them They should pay at least as much attention to track, manage, benchmark and predict the to the selling proposition of the marketing financial return on marketing initiatives. They department itself and position marketing also need to align their focus more with the internally as an essential tool in the company’s main concern of the boardroom: sustainable value creation model. profitability. • The importance of and focus on measuring ROMI will return once short-term corrective actions have been implemented and companies need to evaluate future investments.
  • 40. Define, Create and Capture More Value Marketing departments aspiring to outperform • Too many complex decisions are still judgment- their peers should invest in developing their based, many marketers lack proper analytical analytical skills to a level allowing them to extract skills to generate relevant customer insights maximal value from internal data and generate from the often non-standardized and scattered relevant customer insights that can be used to data available within their organization. support their decisions. • Some marketers need also to be better educated • Introduce a better pricing power such as about direct and interactive marketing in order value-based pricing, but ensure first the to be able to effectively deliver results in these right deployment of data and customer areas. intelligence. Marketers rely too much on reports analysis instead of data, which can lead to missed customer intelligence opportunities. Marketers need the right strategy, internal coordination and sometimes tools to find and exploit accurate data.
  • 41. Glossary Authenticity effective customer relationships and improve strategic Refers to the action of promoting a brand or product decision making. Customer Intelligence is known to be based on real stories or facts. Customers are looking for a key component of effective Customer Relationship authentic experiences analysing what is real and what Management. is fake about the company and its products/services. Authenticity marketing is then about treating prospecs Data mining/Predictive analytics and customers with respect. Process of extracting hidden patterns from data to facilitate predictions about future events. Transforming Customer Experience data into information allows marketers to better Being the sum of all interactions a customer has with a profiling customers needs and market trends. supplier of goods or services, this concept emerged as the single most important aspect in achieving success Engagement for companies across all industries. Besides, the goal of Also known as participation marketing, engagement customer experience management (CEM) is to move marketing is a strategy that encourage customer to customers from satisfied to loyal and then from loyal participate to the evolution of a brand or a product/ to advocate. service. Rather than being passive, engagement marketers believe that consumers should be actively involved in the production and co-creation of marketing Customer Intelligence programs. Process of gathering and analyzing information regarding customers in order to build deeper and more
  • 42. Green marketing Marketers Confidence Index Green marketing is the marketing of products that are The average of Belgian marketers’ expectations about presumed to be environmentally safe. Thus, green their budget, projects and staff headcount. This marketing incorporates a broad range of activities, percentage reflects the balance between all the positive, including product modification, changes to the neutral and negative views. It can vary from -100% to production process, packaging changes, as well as +100% depending on the amount of confidence, from modifying advertising. Other similar terms used are totally pessimistic to totally optimistic respectively. Environmental Marketing and Ecological Marketing. ROMI Net Adjusted Index (NAI) ROMI stands for ‘Return on Marketing Investment’ and Degree of ‘outspokenness’ of a direction; i.e. a positive is a concept that makes the link between the money NAI indicates an increase of importance of an item, but that is being spent on marketing investments, such as the number reveals how relevant or outspoken this advertising, and the money (in euro) that is earned by increase is, according to the survey respondents.Net every euro invested. Index represents the difference between respondents seeing an increase versus those seeing a decrease. 360° marketing Moreover, the NAI gets adjusted by the weight that Mix of integrated marketing and web 2.0 usages, these two opinions represent against those stating a 360 degree marketing characterizes a multichannel status quo. marketing strategy consisting of the exploitation of each promotion media.
  • 43. About The House of Marketing The House of Marketing is Belgium’s first Marketing Expertise and Excellence Center. For the last 15 years, it has been offering clients in B2B and B2C sectors strategic marketing advice, marketing project management, and marketing interim management; from strategy and go-to-market, to marketing organization, process and marketing performance. The House of Marketing is based in Mechelen and currently has a team of 70 marketing experts. More on www.thom.eu Follow us also on www.twitter.com/thomeu and www. slideshare.com/thomeu
  • 44. Kardinaal Mercierplein 2 | 2800 Mechelen | tel + 32 (0)15 444 000 | fax +32 (0)15 444 044 www.thom.eu | info@thom.eu

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