differentiating the value proposition: 2012 asia pacific marketing priorities survey report

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The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved.

growth team m e m b e r s h i p™

Differentiating the Value Proposition

asia pacific

2012 marketing priorities survey results

TWEET ABOUT THE SURVEYS

#2012priorities

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2012 survey resultsgrowth team m e m b e r s h i p™

CONTENTS

INTRO

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Survey Purpose and Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

What is the Growth Team Membership™ . . . . . . . . . . . . . . . . . . . . . . . . 5

Marketing Overarching Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Key Marketing Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7SECTION

1

Respondent Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25SECTION

4

Marketing Resource Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11SECTION

2

Special Interest Topic: Demand Generation . . . . . . . . . . . . . . . . . . . . . . . 18SECTION

3

3



Growth Team Membership™ research.

Introduction

Marketing Survey Executive Summary

SECTION 1: Key Marketing Challenges

Key Internal Challenge Key Internal Challenge Root CauseDeveloping a compelling value proposition Insufficient personnel and process

SECTION 2: Marketing Resource Trends

Budgets Resources Resource AllocationMarketing typically has an annual budget under $1 million ($USD)

2012 budgets and staffing levels will remain constant

Marketers are allocating equal resources to their traditional and online communications

SECTION 3: Demand Generation

Demand Generation Effectiveness

Demand Generation Activities Demand Generation Focus for 2012

Most respondents indicate their effectiveness is “Above Average”

Marketers indicate that their teams are best at customer segmentation

Marketing is prioritizing developing segment‑specific campaigns

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Introduction

Survey Purpose and Respondents

Survey PopulationMethodologyResearch Objective

To understand the most pressing challenges shaping marketing executives’ 2012 planning

Web-based survey platform Manager-level and above marketing executives from companies throughout Asia Pacific

96survey

respondents

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Introduction

What is the Growth Team Membership™?

GTM is a subscription program that supports executives within the functions that report to the CEO

GTM provides best practices, events, and services that enable executives to address challenges within their companies

CorporateStrategy

Corporate Development

Marketing

CompetitiveIntelligence

MarketResearch

SalesLeadership

R&D/Innovation

Investors/Finance

CEOMarketing

CEO’s Growth Team™ GTM: Creating Client Value

GTM’s case-based best practices help executives:

Speed the design and implementation of initiatives by not reinventing the wheel

Save money and reduce risk by avoiding mistakes made by other companies

Accelerate problem-solving with a cross-industry perspective

Improve their functions’ and companies’ performance and productivity

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Introduction

Marketing Overarching Challenges Sample Solutions from GTM

What’s Keeping Marketing Executives Up at Night in 2012?

Contact us at [email protected].

Developing a Value PropositionMarketing executives tend to guess why customers buy, instead of collaborating with Sales or assessing the market. Over time, mixed messages weaken the value proposition.

Learn how Kronos collaborated with Sales to refine the value proposition based on key differentiators, and embedded it with the sales force via improved messaging techniques.

Prioritizing Markets and Market Segments

Marketing executives must increase their familiarity with prospects to prioritize segments based on fit with core capabilities.

Learn how Tandberg* made customer segmentation the foundation of its customer-centric business model.

Creating Effective Demand Generation Using Social MediaEmployees and customers are already using social media—whether you harness it or not is up to you. Marketers need to enable practitioners in social networking to speak with one voice and engage prospects.

Learn how Cisco created a Social Media Center of Excellence aimed at improving employees’ capabilities in listening, planning, engaging, and measuring.

* Tandberg is now a part of Cisco Systems Inc.

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INTRO

SECTION

1

SECTION

2

SECTION

4

SECTION

3

SECTION

1 Key Marketing Challenges

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Section 1

Challenge 1 Developing a compelling value proposition (31%)

Challenge 2 Developing an effective channel strategy (16%)

Challenge 3 Improving sales and marketing integration (21%)

Challenge 4 Identifying and qualifying sales-ready leads (14%)

Challenge 5 Prioritizing markets and market segments (13%)

Top Five Key Marketing Challenges

SURVEY QUESTION: What are the top five functional challenges shaping your marketing strategy?

Note: The respondents were asked to rank their top five challenges. The percentage values indicate how many respondents listed that particular challenge as their first through fifth challenge.

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Section 1

Understaffing and a lack of common objectives are the predominant causes of Marketing’s challenges

SURVEY QUESTION: Please indicate the root cause—staff, process, technology/systems, or strategic alignment—of your top five marketing challenges.

Root Cause of Top Five Marketing ChallengesTop Five Marketing Challenges

Challenge 1 Developing a compelling value proposition Staff: Limited resources (26%)

Challenge 2 Developing an effective channel strategy Strategic Alignment: Lack of common objectives (40%)

Challenge 3 Improving sales and marketing integration

Staff: Lack of knowledge (40%)

Strategic Alignment: Lack of common objectives (40%)

Challenge 4 Identifying and qualifying sales-ready leads Process: Ineffective process (50%)

Challenge 5 Prioritizing markets and market segments Staff: Inadequate skills (43%)

10




INTRO

SECTION

1

SECTION

2

SECTION

4

SECTION

3

SECTION

2 Marketing Resource Trends

11




Section 2

The majority of marketing budgets are under $1 million ($USD)

2012 Marketing Budgets

SURVEY QUESTION: Which of the above ranges (in $USD) best describes your 2012 total marketing budget (all expenditures on marketing activities and general & administrative—including staff)?

0%

10%

20%

30%

40%

50%

60% 58%

20%

6%4%

6% 6%

Below $1 Million $1 Million to $2.99 Million

$3 Million to $4.99 Million



$20 Million or more

percentage of company revenue dedicated to marketing budget

In 2012, companies allocated 2% of their 2011 revenue to their marketing budgets.

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Section 2

0%

10%

20%20%

10% 10%

5% 5% 5%

10%

1%

5%

1%

Marketers are allocating resources equally to online and traditional marketing communications

Marketing Resource Allocations

SURVEY QUESTION: How have you allocated your 2012 marketing budget across the above activities (allocation must total 100%)?

Personnel/Staffing

Marketing Communications: Traditional Media

Marketing Communications:

Online/Digital Media

Channel Partner Programs

Marketing Automation

Platform

Customer Relationship Management

(CRM) Software and Maintenance

Content Development (white papers,

brochures, social media, and trade show support)

Knowledge Management

Systems

Training Other

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Section 2

Marketers expect their resources to remain static in 2012

Marketing Staffing and Budget Changes (By Business Model)

SURVEY QUESTION: In comparison to 2011, your 2012 marketing staffing and budget will…

55%

26%

Stay the Same

Increase SubstantiallyDecrease Substantially Decrease Substantially

Increase Moderately

Staffing Budget

Increase Substantially

8% 15%

41%28%

13%8%

3% 3%

Stay the Same

Decrease Moderately Decrease Moderately

Increase Moderately

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Section 2

The majority of marketers rate their function’s effectiveness “Above Average”

Marketing Effectiveness

SURVEY QUESTION: How would you rate the performance or effectiveness of your function compared to others within your industry?

10%

Below Average

8%

52%

30%

Above Average

Exceptional

Average

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INTRO

SECTION

1

SECTION

2

SECTION

4

SECTION

3SECTION

3 Special Interest Topic: Demand Generation

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Section 3

Most marketers rate their departments’ demand generation activities “Above Average”

Demand Generation Effectiveness

SURVEY QUESTION: How would you rate the effectiveness of your marketing department’s demand generation activities (driving awareness and consideration)?

14%

Below Average3%

48%

35%

Above Average

Exceptional

Average

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Section 3

Adoption of mobile marketing and social media are marketers’ weakest demand generation capabilities

Demand Generation Activities Effectiveness

SURVEY QUESTION: How would you rate the effectiveness of your marketing department’s ability to execute the above demand generation activities?

Develop lead qualification criteria with

Sales

Clean and qualify leads

Allocate spend across demand

generation platforms

Identify and integrate

appropriate content for each

stage of the buying cycle

Integrate social media tactics

Integrate mobile marketing tactics

Employ campaigns

customized by vertical

Leverage customer

segmentation

Generate new customer segments

0%

50%

100%

5%

14%

38%

32%

11%

5%

14%

51%

24%

6%

6%

11%

43%

35%

5%

3%

22%

36%

33%

6%

22%

24%

27%

19%

8%

38%

27%

24%

8%

3%

5%

16%

49%

19%

11%

6%

8%

43%

33%

11%

8%

8%

46%

27%

11%

Do Not Use Below Average Average Above Average Best-in-Class

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Section 3

Marketers are focused on segmentation and its related activities

Demand Generation Activities for 2012

SURVEY QUESTION: Which of the above demand generation activities does your marketing department intend to focus on in 2012 (check all that apply)?

Developing segment‑specific campaigns (25%)

Developing qualification criteria collaboratively with Sales (23%)

Identifying new segments (24%)

Refining the value proposition (22%)

Enhancing contact database (22%)

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Section 3

Email Social Media Live EventsInternet

(search engine optimization)

20% 5% 25% 5%

Live events and email campaigns are the pillars of companies’ demand generation activities

Media Mix for Demand Generation Activities

SURVEY QUESTION: What is the percentage mix of media tactics (listed above) associated with your demand generation activities (total must equal 100%)?

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INTRO

SECTION

1

SECTION

2

SECTION

4

SECTION

3

SECTION

4 Respondent Demographics

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Section 4

Respondent Demographics

SURVEY QUESTION: Please indicate the type of enterprise, business model, and revenue ($USD) that best represents your company .

N = 95

N = 95N = 95

Enterprise Type Business Model

Company Revenue

46%

8%

3%

43%37%

8%

55%

Public

Private

Hybrid

B-to-B Company

Venture Capital

0%

20%

40%

27%

22%

10%

22%19%

Below $100 Million



$1 Billion to $11 Billion

More than $11 Billion

B-to-C Company (Indirect)

B-to-C Company (Direct)

The majority of the respondents come from B-to-B companies .

Most of the respondents come from privately held companies .

22




Section 4

SURVEY QUESTION: Please indicate which region you are located in and which industry categories best describe your company (check all that apply) .

Respondent Demographics: Top Five Participating Industries

N = 95

Automotive and Transportation

0% 20% 40%

37%

21%

20%

13%

12%Chemicals, Materials, and Food

Energy and Power Systems

Healthcare and Life Sciences

Information and Communication Technologies