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Growth Team Membership Asia Pacific 2010 Marketing Priorities Survey Results

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Growth Team Membership Asia Pacific 2010 Marketing Priorities Survey Results.

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Growth Team Membership Asia Pacific 2010 Marketing Priorities Survey Results

  1. 1. Growth Team MembershipTM:Asia Pacific Marketing Priorities 2010 Survey Results October 2009
  2. 2. What is Growth Team Membership™?The Growth Team Membership™ (GTM) is anannual subscription program that supportsindividual executives in the eight functions (CEO’sGrowth Team) that CEOs rely on to shape andexecute their growth strategy.GTM offers growth-focused research, events andservices designed to increase the effectiveness,productivity and impact of these executives. If you have any questions or comments, please contact us at GTMResearch@frost.com 2
  3. 3. Table of Contents Growth Team MembershipTM Research PageSection 1: Summary of Findings …………………………………..……………….…..4Section 2: Business Environment Factors….............................……………………..8Section 3: Key Marketing Challenges…................................................................12Section 4: Marketing Effectiveness and Expenditures………………………………16Section 5: Conclusions and Implications……………………..……………………....22Section 6: Respondent Demographics……………………..…………………...…....23 The content of these pages are © 2009 Frost & Sullivan. All rights reserved. 3
  4. 4. Summary of Findings Growth Team MembershipTM Research Factors in current business environment shaping marketing plans in 2010Respondents identified the following as the top five environmental factors:1.Global economic downturn (54%)2. Intensifying competition (43%)3. Increasing need for product/service innovation (39%)3. Corporate restructuring (39%)4.Emerging global markets (34%) 4
  5. 5. Summary of Findings continued Growth Team MembershipTM ResearchKey Challenges facing MarketingRespondents identified the following top three challenges:1. Measuring marketing spend efficiency and effectiveness (16%)2. Identifying growth opportunities in emerging markets (13%)3. There was a tie for the third challenge: • Identifying new opportunities for mature products (11%) • Improving Sales and Marketing integration (11%) 5
  6. 6. Summary of Findings continued Growth Team MembershipTM ResearchMarketing’s effectiveness and expendituresThe effectiveness of the marketing function• The largest number of respondents (45%) rated the effectiveness of their function as“Average,” while 21% rated it as “Above Average”• Respondents identified their Sales Team (60%) as the most effective method for attainingtheir marketing communication objectivesMarketing expenditures• The largest number of respondents (17%) indicated that less than 0.5% of their company’sannual revenue is allotted to their marketing budget• The two largest components in Marketing’s budget are: 1. Staffing (33%) 2. Marketing Communications (30%) 6
  7. 7. Summary of Findings continued Growth Team MembershipTM ResearchSurvey Population • The survey was sent to Executives in Marketing throughout Asia Pacific • The number of respondents was 133Respondent Demographics • 62% work in a B2B company while 31% work in a hybrid (B2B and B2C) • 56% work in a private company while 42% work in a public company • The largest set of respondents (23%) was from companies with revenues between $1 and $11 billion (USD) • The Information and Communication Technologies (33%), and the Healthcare and Life Sciences (20%) industries had the largest number of respondents 7
  8. 8. Growth Team MembershipTM ResearchBusiness Environment Factors 8
  9. 9. Top Five Business Environment Factors Growth Team MembershipTM ResearchGiven the current recession, it is unsurprising that the global economic downturn (54%) was the dominant businessenvironment factor. Given Marketing’s role in developing growth opportunities, respondents emphasized the effect of productand service innovation (39%) and the emergence of global markets (34%) on their 2010 plans. Emerging global markets 34%Increasing need for product/service 39% innovation N=90 Corporate restructuring 39% Intesifying competition 43% Global economic downturn 54% 0% 10% 20% 30% 40% 50% 60%Please indicate the two business environment factors that have the most impact on your 2010 Marketing plans. 9
  10. 10. Business Environment Impact on Marketing Growth Team MembershipTM ResearchThe global economic downturn, the increase in competition and the resulting corporate restructuring continue to benegative influences as Marketing plans its 2010 strategies. However, two of the top five factors were judged to have apositive impact as they provided opportunities to stimulate growth via innovation and by tapping into emerging globalmarkets. Business Environment Positive Impact No Impact Negative Impact Global economic downturn 16% 4% 80% Intensifying competition 21% 10% 69% Corporate restructuring 25% 13% 62% Increasing need for product/service 88% 10% 2% innovation Emerging global markets 74% 17% 9% N=90Please indicate the impact that each of the following forces have on your 2010 Marketing plans. 10
  11. 11. Direction of the Business Environment in the Next Six Months Growth Team MembershipTM Research Marketing respondents were optimistic when asked about the immediate future of the national economy and IT spending. In contrast, respondents were much less positive about the outlook for employment. 60% 49% 50% 50% 40% 35% N=90 32% 28% 30% 19% 19% 20% 13% 12% 12% 10% 10% 7% 5% 3% 4% 0% National Economy IT Spending Unemployment Worsening 2 Neutral 4 ImprovingPlease indicate the direction you believe each of the following will change over the next six months. The perceived change was measured on a five pointscale where 1=Worsening, 3=Neutral, and 5=Improving. 11
  12. 12. Growth Team MembershipTM ResearchKey Marketing Challenges 12
  13. 13. Top Three Key Marketing Challenges Growth Team MembershipTM Research Executives in Marketing indentified their primary concern, in these harsh economic climes, as measuring the efficiency and effectiveness of their spending. Challenge One Challenge One ••Measuring marketing spend efficiency and effectiveness (16%) Measuring marketing spend efficiency and effectiveness (16%) •• Identifying growth opportunities in emerging markets (13%) Identifying growth opportunities in emerging markets (13%) Challenge Two Challenge Two •• Identifying growth opportunities for mature products (11%) Identifying growth opportunities for mature products (11%) Challenge Three Challenge Three ••Improving Sales and Marketing integration (11%) Improving Sales and Marketing integration (11%) N=83Please indicate the top three challenges shaping your Marketing decision-making in 2010. 13
  14. 14. Top Three Marketing Challenges by Business Model Growth Team MembershipTM Research Regardless of business model, Marketing’s top challenges remain the same, but vary in their prioritization. Hybrid (B-to-B and B- B-to-B B-to-C to-C) •Measuring market spend efficiency and •Identifying new opportunities for •Allocating marketing budgetChallenge One effectiveness (16%) mature products (67%) across disparate channels (25%) •Identifying new growth •Identifying new growth opportunities in •Measuring market spend efficiency opportunities in emerging marketsChallenge Two emerging markets (10%) and effectiveness (25%) (18%) •Improving Sales and Marketing integration (10%) •Identifying new, adjacent market opportunities (12%) •Improving Sales and Marketing •Improving Sales and Marketing integration (12%)Challenge •Identifying new opportunities for mature integration (33%) •Enhancing lead generation forThree products (15%) •Identifying emerging customers Sales (12%) preferences and needs (33%) •Identifying and integrating customer value into sales and marketing strategies (12%) N=83 14
  15. 15. Top Three Marketing Challenges: root cause Growth Team MembershipTM ResearchThe majority of the respondents designated process or staff as the predominant root cause of their top three challenges. Marketing Challenge Staff Technology Process 1. Measuring marketing spend efficiency and 32% 26% 42% effectiveness 2. Identifying new growth opportunities in emerging 40% 27% 33% markets 3a. Improving Sales and Marketing integration 50% 7% 43% 3b. Identifying new opportunities for mature markets 30% 20% 50% N=83For the top three challenges you selected above, please indicate whether the root-cause of the challenge is staff, technology or process. 15
  16. 16. Growth Team MembershipTM ResearchMarketing Effectiveness and Expenditures 16
  17. 17. Marketing Function Effectiveness Growth Team MembershipTM ResearchThe largest number of respondents (49%) rated the effectiveness of their function as “Average,” while only 21% rated theirsas “Above Average.” 3% 21% 27% N=63 49% Below Average Average Above Average ExceptionalPlease asses the overall effectiveness of your function as compared to other firms in your industry. 17
  18. 18. Percentage of Annual Company Revenue Allocated to Marketing Budget Growth Team Membership Research TM There was considerable variation in responses, but the answer with the greatest number of respondents (17%) was under 0.5% of their company’s annual revenue is allocated to their marketing budget. 18% 17% 16% 15% 14% 14% 12% 10% N=59 10% 8% 8% 7% 6% 5% 5% 5% 5% 4% 3% 3% 2% 2% 0% 0% 0% % 9% 9% 5% % % % % % % % % % % % 20 9 0 49 99 99 99 99 99 99 99 9 0. 9 9 0. -2 .9 1. 2. 1. 3. 4. 5. 6. 7. 8. 9. r 5- 4 15 w ve 5- 0- 1- 3- 4- 5- 6- 7- 8- 9- -1 0. lo O 1. 2. 10 BePlease indicate what percentage of your annual company revenue is allocated to your marketing budget including Staff, Technology, MarketingCommunications, Competitive Intelligence, Market Intelligence, Field Marketing/Lead Generation, and Thought leadership event, whitepapers, etc. 18
  19. 19. Marketing Budget Allocation Growth Team MembershipTM Research Regardless of business model, executives indicated that the largest percentages of the marketing budget are allocated to staffing and to all forms of marketing communications, respectively.50% 43%40% Overall 35% B-toB 33% 33% B-to-C 30% Hybrid30% 27% 27% 25% N=6320% 17% 16% 15%15%10% 7% 7% 7% 7% 6% 6% 6% 6% 6% 6% 5% 5% 5% 4% 4% 3% 3% 3% 3% 0% Staffing Marketing Competitive Market Marketing Customer Knowledge Other Communications Intelligence Intelligence Technology Relationship Management of all types ManagementWhat percentage of your total Marketing Budget is spent on the following? The graph above indicates the average percentages assigned to each component. 19
  20. 20. Top Three Most Effective Marketing Methods Growth Team MembershipTM ResearchThe majority of marketing executives in (60%) specify the sales team as its most effective marketing method. Most Effective Most Effective ••Sales Team (60%) Method Sales Team (60%) Method Second Most Second Most ••References from Peers (23%) References from Peers (23%)Effective MethodEffective Method Third Most Third MostEffective Method ••Trade Shows (25%) Trade Shows (25%)Effective Method N=60Of all the marketing methods below, please select the top three in terms of most effective in achieving your marketing communication objectives. 20
  21. 21. Top Three Least Effective Marketing Methods Growth Team MembershipTM ResearchRespondents indicate that the most expensive marketing methods are also the least effective for achieving marketingcommunication objectives. ••TV Shows (17%) TV Shows (17%) Least Effective Least Effective ••TV Advertising (17%) Method TV Advertising (17%) Method ••Cinema Advertising (17%) Cinema Advertising (17%) Second Least Second Least ••Radio Advertising (10%) Radio Advertising (10%) Effective Method Effective Method Third Least Third Least ••Telemarketing (10%) Effective Method Telemarketing (10%) Effective Method N=60Now using the same list (repeated below), please select the top three least effective in terms of achieving your marketing communications objectives. 21
  22. 22. Conclusions and Implications Growth Team MembershipTM ResearchBusiness EnvironmentMarketing executives are predominantly concerned with the current economic downturn and thecorporate restructuring and intensified competition it engenders. However, emerging globalmarkets and innovation are seen as positive channels for potential growth.Key Marketing ChallengesMarketing’s principal challenge, measuring the effectiveness and efficiency of spend, reflects therecession’s impact on Marketing: cost cutting, budgetary scrutiny, and doing more with lessresources. The pressure to identify growth in a restrained market is evident in Marketing’s otherchallenges: identifying new avenues of growth for mature products, and tapping into emergingmarkets.Given Marketing’s indication that their Sales Team is their most effective marketing asset, anotherkey challenge to overcome is improving Marketing’s relationship with Sales. Addressing the root-causes of these challenges necessitates Marketing enhancing their processes and staffing.Moving ForwardThe Growth Team MembershipTM is focusing its Best Practice Guidebooks to address the keyissues that have been identified in this survey.If you have any questions or comments please contact us at GTMResearch@frost.com 22
  23. 23. Growth Team MembershipTM ResearchRespondent Demographics 23
  24. 24. Demographics: Enterprise Type Growth Team MembershipTM Research Over half of the respondents work in a private company Enterprise Type 2% 42% N=108 56% Public Private Venture CapitalPlease indicate the type of enterprise best represents your organization. 24
  25. 25. Demographics: Business Model Growth Team MembershipTM Research The overwhelming majority of the respondents work in B-to-B companies Both B-to-B and B-to-C 31% B-to-C 7% N=107 B-to-B 62% 0% 10% 20% 30% 40% 50% 60% 70%Please indicate which of these options best describes your business model. 25
  26. 26. Demographics: Company Revenue Growth Team MembershipTM Research The largest set of respondents are in companies with revenues between $1 to $11 billion (USD) 30% 23% 20% 20% 18% 18% N=108 10% 8% 0% Below $100 million $100 to $499.99 million $500 million to $999.99 $1 billion to $11 billion More than $11 billion millionPlease indicate which of these company revenue ranges best represent your organization. This should include all divisions, business units, and facilities. 26
  27. 27. Demographics: Top Five Participating Industries Growth Team MembershipTM ResearchOver 50% of the respondents are in the Information and Communication Technologies or Healthcare and Life Sciences industries Professional Services 10% Automotive and Transportation 10% 11% N=123 Energy and Power Systems Electronics and Security 14% Healthcare and Life Sciences 20%Information and Communication 33% Technologies 0% 10% 20% 30% 40%Please indicate which of these Industry categories best describes you organization. 27

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