Chairman’s Series on Growth
        Asia Pacific Edition

   The CEO’s Marketing Team:
  Spearheading Profitable Growth




                                   June, 2009
Today’s Presenters


        Craig Baty                         Michael Buchholz
   Global VP, IT Practice               VP Marketing, Asia Pacific
      Frost & Sullivan                      Frost & Sullivan




                            Today’s Moderator:
                           Hwee Har Tan
                     Marketing Manager, Asia Pacific
                             Frost & Sullivan
Agenda



1. Poll Results from Last Months AP CSG
2. Overview: Where We Are in the Series
3. Challenges to the Marketing Career
4. Marketing’s Role on the Growth Team™
5. Case History: Marketing Best Practices
6. Marketing Best Practices Thought Leadership Model
7. Serious About Growth: Next Steps
Polling Responses from April APAC CSG
Does your company currently have a culture focused on Growth, Innovation and Leadership?
Yes
                                                                         66.6%

No
                                                                 33.3%




What challenge(s) does your CEO and/or management team face in developing and creating a
culture of Growth, Innovation and Leadership?
The CEO doesn’t have the required leadership skills
                                                                         66.6%
Getting the entire team on the same page
                                                              33.3%
Eliminating the ‘not invented here’ or the challenge of evolving silos
                                                                         66.6%
Lack of visionary skills to develop a powerful growth strategy
                                                              33.3%
Lack of time to engage in the required growth workshops
                                                                         66.6%
Lack of budget to travel to GIL and or invest in long term growth
                                                              33.3%
The Growth Acceleration System
CEO's Growth Team
Building Teamwork and A Culture of Growth Innovation & Leadership
Internal Challenges for the Marketing Function

   Marketing’s insular focus and reactive behavior relegate it to a highly
   operational role that provides minimal value to the CEO’s Growth Team.


  Situation                                          Resulting Challenge
  Operational issues dominate the agenda         -     Soft ROI – budget constraints; undervalued by
                                                       CEO and executive team

  Lack of goal alignment between marketing and   -     Combative relationship – weak integration with
  sales                                                sales goals

  Lack of integration with R&D                   -     Higher risk product strategy – miss market
                                                       demand

  Lack of input to growth pipeline               -     Growth pipeline is overly dependent on new
                                                       product development for growth
External Challenges for the Marketing Function

   Without a 360 Degree Perspective, Marketing can provide minimal value
   to the CEO’s Growth Team.™

 Situation                                        Resulting Challenge
 Technology of marketing is accelerating          -   Increased pressure on marketing to leverage
                                                      Best Practices for growth

 Changing economic and political landscape        -   Assess future growth pipeline
                                                  -
                                                      Puts your current growth strategy at risk

 Increasingly competitive markets                 -   Offer comprehensive picture of competitive
                                                      landscape
                                                  -   Prepare company to address competition

 Smarter customers with shorter attention spans   -   Build accurate audience profiles with effective
                                                      messaging
Marketing: Relationship with Leaders
                                                                                                 CEO




                                      CEO/Leadership                                                   Marketing




                  Marketing Role                                          CEO’s Role

 •   Responsible for generating growth opportunities   •   Open-minded, willing to explore, nurturing of
     and ideas                                             innovation
 •   Instrumental in communicating growth strategy     •   True collaboration with marketing
     and vision to internal team                       •   Supports GIL (Growth, Innovation and
 •   Communicates to Growth Team™ on progress              Leadership) Culture, open forum
     of vision                                         •   Clearly communicates objectives and vision
 •   Facilitates strategic communication within        •   Provides time and budget for long-term strategy
     Growth Team™
                                                       •   Inspires, nurtures and unifies Growth Team™
 •   Supports growth implementation                        to create and achieve vision
Marketing: Relationship with Competitive Intelligence
                                                                                    CI




                             Competitive Intelligence (CI)                                        Marketing




                   Marketing Role                                       CI’s Role

   •   Drives Competitive Intelligence programs to   •   Best Practices within CI function
       ensure successful growth opportunities        •   Proactive not reactive
   •   Ensures CI is aligned with Growth Team™       •   Supports diversification opportunities
       on competitive landscape for growth
   •   Expands CI to all roles on Growth Team ™
       and all projects
Marketing: Relationship with Market Research


                                    Market Research
                                                                                      Market
                                                                                                     Marketing
                                                                                     Research




                    Marketing Role                             Market Research Role

   •   Identify key customer/consumer and            •   Develop research agenda focused on growth
       marketplace information gaps needed to            opportunities
       drive growth strategies                       •   Synthesize disparate sources of information
   •   Prioritise key growth customer segments for       to evaluate opportunities
       evaluation                                    •   Generate “voice of the customer” insights
   •   Collaborate with Market Research to embed     •   Support decision making by Marketing with
       customer insight into new product                 data and insights
       development, marketing communications
       and strategies
Marketing: Relationship with Corporate
Strategy/Development
                                                                                                          Strategic Business
                                                                                                             Development




                       Corporate Strategy/ Development                                             Marketing




                     Marketing Role                 Corporate Strategy/Development Role


 •   Responsible for increasing Corporate           •   Generate and evaluate growth options for the
     Strategy/Development activities                    company
 •   Creates communication system to optimise       •   Collaborates on ideas, opportunities, visions
     collaboration                                      and strategies
 •   Aligns short-and long-term ideas               •   Connects short- and long-term visions
 •   Provide long-term growth ideas for Corporate   •   Be measurable
     Strategy/Development                           •   Provides strong feedback
 •   Provides feedback on ideas generated by        •   Clear role and objectives, building together with
     Corporate Strategy/Development                     marketing
Marketing: Relationship with Research & Development
                                                                                  R&D




                       Research & Development (R&D)                                                Marketing




                  Marketing Role                        Research & Development’s Role


   •   Supports open collaboration between          •   Open communications with other business
       business units and R&D                           units
   •   Identifies market opportunities for R&D –    •   Capabilities of development, what's possible
       Customer Perspective, Competitor             •   Communicates through all phases of product
       Perspective                                      development cycle
   •   Communicates internally and externally the   •   Proactive probe for marketing-driven new
       growth potential of various R&D activities       ideas
                                                    •   Focus on relationship and teamwork
Marketing: Relationship with Sales Management


                                      Sales Management                                         Sales
                                                                                            Management
                                                                                                         Marketing




                   Marketing Role                                         Sales’ Role

 •   Building strategies to respond to competition     •   Captures measurable customer feedback
 •   Creates marketing communications based on         •   Key 360 Degree Perspective - feedback to
     CEO’s Vision, Growth Team™ collaboration,             Growth Team™ and marketing
     customers voice, brand promise and                •   Feedback on message effectiveness
     communication channels
                                                       •   Open communication and collaboration with
 •   Responsible for partnering with Market Research       other business units
     to create customer profiles that aid the
     segmented selling approach
 •   Drives competitive benchmarking to enhance
     Sales effectiveness
Marketing: Relationship with Investor/Finance
                                                                                                            Investors




                                      Investor/Finance                                              Marketing




                  Marketing Role                                      Investor’s Role

 •   Collaborates to identify and generate ways to   •   Collaboration and communication with
     leverage 10 Growth Processes                        marketing and Growth Team™ on costs and
 •   Provide unbiased and unhyped data from              investment criteria
     various sources including CRM system and        •   Feedback on financial analysis on Growth
     customer surveys                                    Pipeline
                                                     •   Help prioritise growth pipeline
                                                     •   Sharing ROI and IRR calculations with team
                                                     •   Creates financial model of growth opportunities
                                                     •   Conducts sensitivity analysis of growth models
Marketing: Current vs. Growth Team MembershipTM (GTM)


              Marketing Needs to Evolve to Optimise Impact
Today’s Marketing Role                   Empowerment Through GTM
•   Consumed with Operations             •   Big Picture Marketing Strategy
•   One-way Communication w/ CEO         •   2-way Communication w/ CEO
•   No Budget or Time for long term      •   Fights for Budget & Time
•   Little Insight into R&D Pipeline     •   Drives Growth Strategy
•   Adversarial Role with Sales          •   100% Integration with R&D
•   Marketing not on Pipeline            •   Partnership with Sales on
                                             Implementation
•   Marketing thinks Dept is at Best
    Practice                             •   Source of 50% of Growth Pipeline
•   Marketing has Market Perspective     •   Team Exposed to Best Practices
•   Not Concerned with Culture           •   Learning 360 Degree Perspective
                                         •   Drives Growth Innovation and
                                             Leadership Culture Internally
Marketing’s Impact on the Growth Pipeline


Marketing could fuel 50% of Growth Pipeline opportunity

 •   Distribution Channel
 •   Geographic Expansion
 •   New Applications for Existing Technology
 •   Customer Segmentation Strategies
 •   Customer Strategies
 •   Sales Strategies
 •   Pricing Strategies
 •   Merger & Acquisition
 •   Growth Sourcing
 •   New Product Enhancements Driven by Customers
Michael Buchholz,
VP Marketing, Asia Pacific
    Frost & Sullivan
The Financial Opportunity


      Sustainable Profitable Revenue Growth
       Sustainable Profitable Revenue Growth

  Profit
   Profit




                                               Time
                                                Time
            Reduce Impact Of Industry Cycle
             Reduce Impact Of Industry Cycle
New Strategic Capabilities


                               Growth Strategy

                                  Strategic
Operational                       Acquisitions                       Market
Efficiency                        and                                Development
                                  Integration


                              •   Brand Development
         •   “Helping Customers Complete Their Important Construction Projects”
Growth Team … a collaborative approach to growth


         Market                         Market Research &
       Assessment                       Analysis



      New Product                       R&D
      Development


       Operational
       Integration
                                        Commercial Strategy
           and                          and Planning
         Pricing


      Sales Strategy
           and                          Sales
        Account
       Management
Case In Point: Making The Old New Again…

                                  Old Markets… New Value

             •    Residential                                            •   Paving




         •       Concrete Homes                                 •    Recycled Pavements
     •   30-50% ↓ Energy Costs                              •       66%↓Material to Landfill



                      Increase Use of Cement and Concrete vs. Other Materials
Repositioning Brand to Support Growth

                     Brand Development



Internal Focus                                   Customer Focus


Rational                                         Rational + Emotional


Products                                         Customer Projects



                 Innovative Solutions Provider
Ingredients of Success


                 Making It Happen AND Making It Stick


•   Change “Commodity” Thinking


•   Develop Compelling Business Case


•   Measure and Communicate Results


•   Make It a “Big” Team Effort
Definition: What is Best Practice?




     Specific activities performed to solve a tough
     business challenge that 9 out of 10 companies are
     NOT performing but SHOULD, with measurable
     results proving effectiveness
Marketing: Best Practices Thought Leadership Models Future
Research Topics

   Building and Training the Growth Team™
   Developing the Growth Pipeline from Marketing Perspective
   The Marketing Function: Top 6 Growth Thought Leaders (GTLs)
   Which Companies, Departments and Leaders are at Best Practice Level?
   Strategic Actions for Key Challenges in Marketing
   Creating a Customer and Competitor Landscape for Growth Evaluation
   Customer-driven Marketing Strategy
   Competitive-driven Marketing Strategy
   Brand Leadership & Change
   Strategic Partnering
   Lead Generation and Management Systems
   Customer Relationship Management
   Marketing-driven Product Development Process
www.frost.com/gilglobal
GIL GLOBAL 2009
A global community focused on Growth, Innovation and Leadership



September 2009                                                        October 2009
                                                                      Kuala Lumpur
Phoenix, Arizona

                                                                      October 2009
October 2009
                                                                      Shanghai
Dubai


October 2009                                                          December 2009

Bangalore                                                             Sao Paulo


                                                                      May 2010
                                                                      London
Next Steps

 Request a proposal for Growth Partnership Services to support you and your team to
 accelerate the growth of your company.
 Attend Frost & Sullivan Executive MindXchange best practice networking events
 (http://www.frost.com/cal) to share and address strategic challenges
 Consider Conducting a 360 Degree Growth Workshop to support your long-term growth
 strategy
 Join us at a Growth, Innovation and Leadership 2009: A Frost & Sullivan Global Congress
 on Corporate Growth (www.frost.com/gilglobal)
 Register for the next Chairman’s Series on Growth: (http://www.frost.com/growthapac)
 Schedule a Recession Strategy Session with a Frost & Sullivan Industry consultant (email
 us: alvin.chua@frost.com)
 Schedule a One-on-One Growth Strategy Dialogue with a Frost & Sullivan Growth
 Consultant (email us: alvin.chua@frost.com)
 Register for Frost & Sullivan’s Growth Opportunity Newsletter and Growth Team
 Membership e Bulletin to keep abreast of growth opportunities in your industry and best
 practices in your career track. (www.frost.com)
Contact Us

   If you have questions or would like further information about anything we
   discussed, please send your query to the email provided below and we will
   get back to you shortly.




                        Alvin Chua
                        Account Manager
                        Automotive, Transportation & Logistics
                        DID: +65 6890 0997
                        Mob: +65 9199 4566
                        eMail: alvin.chua@frost.com

0906 CEOs Marketing Team

  • 1.
    Chairman’s Series onGrowth Asia Pacific Edition The CEO’s Marketing Team: Spearheading Profitable Growth June, 2009
  • 2.
    Today’s Presenters Craig Baty Michael Buchholz Global VP, IT Practice VP Marketing, Asia Pacific Frost & Sullivan Frost & Sullivan Today’s Moderator: Hwee Har Tan Marketing Manager, Asia Pacific Frost & Sullivan
  • 3.
    Agenda 1. Poll Resultsfrom Last Months AP CSG 2. Overview: Where We Are in the Series 3. Challenges to the Marketing Career 4. Marketing’s Role on the Growth Team™ 5. Case History: Marketing Best Practices 6. Marketing Best Practices Thought Leadership Model 7. Serious About Growth: Next Steps
  • 4.
    Polling Responses fromApril APAC CSG Does your company currently have a culture focused on Growth, Innovation and Leadership? Yes 66.6% No 33.3% What challenge(s) does your CEO and/or management team face in developing and creating a culture of Growth, Innovation and Leadership? The CEO doesn’t have the required leadership skills 66.6% Getting the entire team on the same page 33.3% Eliminating the ‘not invented here’ or the challenge of evolving silos 66.6% Lack of visionary skills to develop a powerful growth strategy 33.3% Lack of time to engage in the required growth workshops 66.6% Lack of budget to travel to GIL and or invest in long term growth 33.3%
  • 5.
  • 6.
    CEO's Growth Team BuildingTeamwork and A Culture of Growth Innovation & Leadership
  • 7.
    Internal Challenges forthe Marketing Function Marketing’s insular focus and reactive behavior relegate it to a highly operational role that provides minimal value to the CEO’s Growth Team. Situation Resulting Challenge Operational issues dominate the agenda - Soft ROI – budget constraints; undervalued by CEO and executive team Lack of goal alignment between marketing and - Combative relationship – weak integration with sales sales goals Lack of integration with R&D - Higher risk product strategy – miss market demand Lack of input to growth pipeline - Growth pipeline is overly dependent on new product development for growth
  • 8.
    External Challenges forthe Marketing Function Without a 360 Degree Perspective, Marketing can provide minimal value to the CEO’s Growth Team.™ Situation Resulting Challenge Technology of marketing is accelerating - Increased pressure on marketing to leverage Best Practices for growth Changing economic and political landscape - Assess future growth pipeline - Puts your current growth strategy at risk Increasingly competitive markets - Offer comprehensive picture of competitive landscape - Prepare company to address competition Smarter customers with shorter attention spans - Build accurate audience profiles with effective messaging
  • 9.
    Marketing: Relationship withLeaders CEO CEO/Leadership Marketing Marketing Role CEO’s Role • Responsible for generating growth opportunities • Open-minded, willing to explore, nurturing of and ideas innovation • Instrumental in communicating growth strategy • True collaboration with marketing and vision to internal team • Supports GIL (Growth, Innovation and • Communicates to Growth Team™ on progress Leadership) Culture, open forum of vision • Clearly communicates objectives and vision • Facilitates strategic communication within • Provides time and budget for long-term strategy Growth Team™ • Inspires, nurtures and unifies Growth Team™ • Supports growth implementation to create and achieve vision
  • 10.
    Marketing: Relationship withCompetitive Intelligence CI Competitive Intelligence (CI) Marketing Marketing Role CI’s Role • Drives Competitive Intelligence programs to • Best Practices within CI function ensure successful growth opportunities • Proactive not reactive • Ensures CI is aligned with Growth Team™ • Supports diversification opportunities on competitive landscape for growth • Expands CI to all roles on Growth Team ™ and all projects
  • 11.
    Marketing: Relationship withMarket Research Market Research Market Marketing Research Marketing Role Market Research Role • Identify key customer/consumer and • Develop research agenda focused on growth marketplace information gaps needed to opportunities drive growth strategies • Synthesize disparate sources of information • Prioritise key growth customer segments for to evaluate opportunities evaluation • Generate “voice of the customer” insights • Collaborate with Market Research to embed • Support decision making by Marketing with customer insight into new product data and insights development, marketing communications and strategies
  • 12.
    Marketing: Relationship withCorporate Strategy/Development Strategic Business Development Corporate Strategy/ Development Marketing Marketing Role Corporate Strategy/Development Role • Responsible for increasing Corporate • Generate and evaluate growth options for the Strategy/Development activities company • Creates communication system to optimise • Collaborates on ideas, opportunities, visions collaboration and strategies • Aligns short-and long-term ideas • Connects short- and long-term visions • Provide long-term growth ideas for Corporate • Be measurable Strategy/Development • Provides strong feedback • Provides feedback on ideas generated by • Clear role and objectives, building together with Corporate Strategy/Development marketing
  • 13.
    Marketing: Relationship withResearch & Development R&D Research & Development (R&D) Marketing Marketing Role Research & Development’s Role • Supports open collaboration between • Open communications with other business business units and R&D units • Identifies market opportunities for R&D – • Capabilities of development, what's possible Customer Perspective, Competitor • Communicates through all phases of product Perspective development cycle • Communicates internally and externally the • Proactive probe for marketing-driven new growth potential of various R&D activities ideas • Focus on relationship and teamwork
  • 14.
    Marketing: Relationship withSales Management Sales Management Sales Management Marketing Marketing Role Sales’ Role • Building strategies to respond to competition • Captures measurable customer feedback • Creates marketing communications based on • Key 360 Degree Perspective - feedback to CEO’s Vision, Growth Team™ collaboration, Growth Team™ and marketing customers voice, brand promise and • Feedback on message effectiveness communication channels • Open communication and collaboration with • Responsible for partnering with Market Research other business units to create customer profiles that aid the segmented selling approach • Drives competitive benchmarking to enhance Sales effectiveness
  • 15.
    Marketing: Relationship withInvestor/Finance Investors Investor/Finance Marketing Marketing Role Investor’s Role • Collaborates to identify and generate ways to • Collaboration and communication with leverage 10 Growth Processes marketing and Growth Team™ on costs and • Provide unbiased and unhyped data from investment criteria various sources including CRM system and • Feedback on financial analysis on Growth customer surveys Pipeline • Help prioritise growth pipeline • Sharing ROI and IRR calculations with team • Creates financial model of growth opportunities • Conducts sensitivity analysis of growth models
  • 16.
    Marketing: Current vs.Growth Team MembershipTM (GTM) Marketing Needs to Evolve to Optimise Impact Today’s Marketing Role Empowerment Through GTM • Consumed with Operations • Big Picture Marketing Strategy • One-way Communication w/ CEO • 2-way Communication w/ CEO • No Budget or Time for long term • Fights for Budget & Time • Little Insight into R&D Pipeline • Drives Growth Strategy • Adversarial Role with Sales • 100% Integration with R&D • Marketing not on Pipeline • Partnership with Sales on Implementation • Marketing thinks Dept is at Best Practice • Source of 50% of Growth Pipeline • Marketing has Market Perspective • Team Exposed to Best Practices • Not Concerned with Culture • Learning 360 Degree Perspective • Drives Growth Innovation and Leadership Culture Internally
  • 17.
    Marketing’s Impact onthe Growth Pipeline Marketing could fuel 50% of Growth Pipeline opportunity • Distribution Channel • Geographic Expansion • New Applications for Existing Technology • Customer Segmentation Strategies • Customer Strategies • Sales Strategies • Pricing Strategies • Merger & Acquisition • Growth Sourcing • New Product Enhancements Driven by Customers
  • 18.
    Michael Buchholz, VP Marketing,Asia Pacific Frost & Sullivan
  • 19.
    The Financial Opportunity Sustainable Profitable Revenue Growth Sustainable Profitable Revenue Growth Profit Profit Time Time Reduce Impact Of Industry Cycle Reduce Impact Of Industry Cycle
  • 20.
    New Strategic Capabilities Growth Strategy Strategic Operational Acquisitions Market Efficiency and Development Integration • Brand Development • “Helping Customers Complete Their Important Construction Projects”
  • 21.
    Growth Team …a collaborative approach to growth Market Market Research & Assessment Analysis New Product R&D Development Operational Integration Commercial Strategy and and Planning Pricing Sales Strategy and Sales Account Management
  • 22.
    Case In Point:Making The Old New Again… Old Markets… New Value • Residential • Paving • Concrete Homes • Recycled Pavements • 30-50% ↓ Energy Costs • 66%↓Material to Landfill Increase Use of Cement and Concrete vs. Other Materials
  • 23.
    Repositioning Brand toSupport Growth Brand Development Internal Focus Customer Focus Rational Rational + Emotional Products Customer Projects Innovative Solutions Provider
  • 24.
    Ingredients of Success Making It Happen AND Making It Stick • Change “Commodity” Thinking • Develop Compelling Business Case • Measure and Communicate Results • Make It a “Big” Team Effort
  • 25.
    Definition: What isBest Practice? Specific activities performed to solve a tough business challenge that 9 out of 10 companies are NOT performing but SHOULD, with measurable results proving effectiveness
  • 26.
    Marketing: Best PracticesThought Leadership Models Future Research Topics Building and Training the Growth Team™ Developing the Growth Pipeline from Marketing Perspective The Marketing Function: Top 6 Growth Thought Leaders (GTLs) Which Companies, Departments and Leaders are at Best Practice Level? Strategic Actions for Key Challenges in Marketing Creating a Customer and Competitor Landscape for Growth Evaluation Customer-driven Marketing Strategy Competitive-driven Marketing Strategy Brand Leadership & Change Strategic Partnering Lead Generation and Management Systems Customer Relationship Management Marketing-driven Product Development Process
  • 27.
    www.frost.com/gilglobal GIL GLOBAL 2009 Aglobal community focused on Growth, Innovation and Leadership September 2009 October 2009 Kuala Lumpur Phoenix, Arizona October 2009 October 2009 Shanghai Dubai October 2009 December 2009 Bangalore Sao Paulo May 2010 London
  • 28.
    Next Steps Requesta proposal for Growth Partnership Services to support you and your team to accelerate the growth of your company. Attend Frost & Sullivan Executive MindXchange best practice networking events (http://www.frost.com/cal) to share and address strategic challenges Consider Conducting a 360 Degree Growth Workshop to support your long-term growth strategy Join us at a Growth, Innovation and Leadership 2009: A Frost & Sullivan Global Congress on Corporate Growth (www.frost.com/gilglobal) Register for the next Chairman’s Series on Growth: (http://www.frost.com/growthapac) Schedule a Recession Strategy Session with a Frost & Sullivan Industry consultant (email us: alvin.chua@frost.com) Schedule a One-on-One Growth Strategy Dialogue with a Frost & Sullivan Growth Consultant (email us: alvin.chua@frost.com) Register for Frost & Sullivan’s Growth Opportunity Newsletter and Growth Team Membership e Bulletin to keep abreast of growth opportunities in your industry and best practices in your career track. (www.frost.com)
  • 29.
    Contact Us If you have questions or would like further information about anything we discussed, please send your query to the email provided below and we will get back to you shortly. Alvin Chua Account Manager Automotive, Transportation & Logistics DID: +65 6890 0997 Mob: +65 9199 4566 eMail: alvin.chua@frost.com