growth team membership: 2011 asia pacific marketing priorities survey results

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growth team m e m b e rs h i p™

2011 Marketing Priorities Survey Results

Asia Pacific

Marketing Survey Executive Summary . . . . . . . . . 2What is the Growth Team Membership™ . . . . . . 3Survey Purpose and Respondents . . . . . . . . . . . . . 4

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

External Factors Shaping Marketing Strategy . . . . 5

Key Marketing Challenges . . . . . . . . . . . . . . . . . . . 8

Marketing Effectiveness and Expenditures . . . . . .11

Social Media Expenditures and Ownership . . . . . .17

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2011 marketing prioritiesgrowth team m e m b e rs h i p™

Source: Growth Team Membership™ research.

Key Internal Challenge Internal Challenge Root CauseThe challenge is identifying adjacent market opportunities The root cause of the challenge is insufficiently

skilled personnel

Budget Priorities Resources Budget as a % of RevenueMarketers are prioritizing expenditures on traditional Marcom activities and channel partnership programs

2011 budgets will increase moderately while staffing levels will remain constant

The median percentage of company revenue allocated to marketing budgets is 3%

Social Media Use Social Media Objectives Social Media MetricsOnly 40% of respondents use social media in their marketing activities

Increasing the company’s online branding presence is the primary purpose for engaging in social media

“Interaction” is the most important metric

Main External ChallengeThe challenge is capitalizing on opportunities in emerging markets

Marketing Survey Executive Summary

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What is the Growth Team Membership™?

The Growth Team Membership™ (GTM) is a subscription program that supports executives within the functions reporting to the CEO.

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

CorporateStrategy

Corporate Development

Marketing

CompetitiveIntelligence

MarketResearch

SalesLeadership

R&D/Innovation

Investors/Finance

CEOMarketing

Email us [email protected] Visit us online www.gtm.frost.com

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 function/company’s performance and productivity

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Survey Purpose and Respondents

Survey PopulationMethodologyResearch Objective

To understand the most pressing external and internal challenges shaping marketing executives’ 2011 planning .

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

56survey

respondents

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External Factors Shaping Marketing Strategy

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Marketing strategy is heavily influenced by opportunities in emerging markets and the need to drive innovation

Top Three External Factors

Survey Question: Please specify the Top Three external factors shaping your marketing strategy in 2011 .

External Factor 1 Emerging global markets (25%)

External Factor 2 Need for product and service innovation (17%)

External Factor 3 Government regulation and policy (14%)

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Challenges for Marketing

Government regulation and policy (67%)

External Factors Impact on Marketing

Survey Question: Please indicate if the following factors present a challenge or an opportunity for your 2011 marketing strategy .

Opportunities for Marketing

Emerging global markets (100%)

Need for product and service innovation (89%)

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Key Marketing Challenges

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Challenge 1 Identifying new, adjacent market opportunities (21%)

Challenge 2 Developing segment-specific marketing programs (13%)

Challenge 3 Identifying, qualifying, and ensuring action on high-quality leads (17%)

Challenge 4 Improving channel partner effectiveness (20%)

Challenge 5 Measuring marketing ROI (12%)

Marketing executives are under pressure to identify new avenues of growth and work more effectively with their internal and external partners

Top Five Key Marketing Challenges

Survey Question: Please indicate the top five functional challenges shaping your marketing strategy in 2011 .

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Challenge 1Identifying new, adjacent market opportunities

Staff: Lack of knowledge (50%)

Challenge 2Developing segment-specific marketing programs

Staff: Limited resources (40%)

Challenge 3Identifying, qualifying, and ensuring action on high-quality leads

Process: Ineffective process (50%)

Challenge 4Improving channel partner effectiveness

Staff: Inadequate skills (29%)

Challenge 5Measuring marketing ROI

Staff: Lack of knowledge (50%)

Marketers cite staff as the predominant root cause of their challenges—ranging from lack of knowledge and skills to limited resources

Survey Question: Please indicate if the root cause of your top five functional challenges are—staff, process, technology/systems, or strategic alignment .

Root Cause of Top Five Marketing ChallengesTop Five Marketing Challenges

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Marketing Effectiveness and Expenditures

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Marketing Expenditures and Effectiveness Snapshot

Respondents rank their marketing effectiveness as “Average”

3% of their company’s revenue is allocated to the marketing budget

Largest budget item is staff

Expect their staffing levels to stay the same in 2011

Expect their marketing budgets to increase moderately in 2011

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9%6%

46% 40%

More than 50% of marketers rank their function’s effectiveness as “Below Average” or “Average”

Marketing’s View of Its Effectiveness

Survey Question: Please assess the overall effectiveness of your marketing function compared to those in other firms within your industry .

All Companies

Above Average

ExceptionalBelow Average

Average

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0%

10%

20%

30%

40%

50%

46%

30%

15%

6%

3%

0%

Most respondents had marketing budgets of under $1 million in 20102010 Marketing Budgets

Survey Question: Please indicate your 2010 total marketing budget (all expenditures on marketing activities and general & administrative—including staff) in the following US$ ranges .

Below $1 Million $1 Million to $2.99 Million

$3 Million to $4.99 Million



$20 Million or more

percentage of company revenue allocated to marketing

In 2010 companies dedicated approximately 3% of their annual revenue to their marketing budgets.

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Staffing is Marketing’s largest budget allocationMarketing Budget Allocation

Survey Question: Please provide the percentage allocation of your total 2010 marketing budget to the following activities . (These percents represent the median values for each category)

0%

10%

20%

30%

40%

35%

10%

5%

8%

3%

0%

2%

5%

1%

Personnel/Staffing

Marketing Communications

(Traditional Media)

Marketing Communications (Online/Digital

Media)

Channel Partner

Programs

Customer Relationship Management

(CRM) Software and Maintenance

Marketing Resource

Management (MRM)

Software and Maintenance

Knowledge Management

Training Non-CRM And Non-MRM Information Technology

Investments (Lead Management Software,

Sales Tools, etc)

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7%

3%

43%47%

14%

52%

24%

10%

Marketers expect their staffing levels to remain static, and budgets to increase moderately2011 vs . 2010 Staffing and Budget Plans

Survey Question: In comparison to 2010, your 2011 marketing staff will:

Staffing Budget

Stay the Same

Decrease Moderately Increase Substantially

Increase Moderately

Stay the Same

Decrease Moderately Increase Substantially

Increase Moderately

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Social Media Expenditures and Ownership

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Social Media Snapshot

The majority of companies do not use social media in their marketing activities

Corporate Marketing is the owner of the company’s social media activities

Interaction is the most important social media metric

Brand awareness is the most effectively applied social media metric

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The majority of marketers do not use social media in marketing activitiesSocial Media Usage

Survey Question: Does your company use social media in your marketing activities?

All Companies

No

Yes41%

59%

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Corporate Marketing is the predominant owner of social mediaOwnership of Social Media

Survey Question: Which department is responsible for managing social media within your company?

E-marketing/Digital

Marketing

Corporate Marketing

Independent Social Media

Team

Corporate Communications

Customer Service

Cross-Functional Team

Other0%

30%

60%

53%

13%

0%

13%

0%

7%

13%

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Objective 1 Increase online share of brand messaging (58%)

Objective 2 Drive word of mouth about existing products and services (25%)

Objective 3 Generate leads (27%)

Objective 4 Engage current customers to increase satisfaction and/or loyalty (40%)

Objective 5 Build relationships with influencers/advocates (20%)

Survey Question: Please rank in order of importance the following objectives of your social media activities .

The majority see social media as a tool to drive awareness and word-of-mouth Social Media Objectives

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Survey Question: Please indicate the importance of the following social media metrics within your company:

Marketers rank “Interaction” as the most important social media metricImportance of Social Media Metrics

0%

50%

100%

33%

50%

17%

36%

64%

33%

58%

9%

25%

50%

25%

50%

41%

9%

33%

42%

25%

33%

50%

17%

Interaction (comments,

retweets, sharing, etc.)

Traffic (page views, time on site, etc.)

Leads (requests for trials or brochures)

Search Marketing (search engine

ranking)

Brand Awareness (number of

mentions online or share of voice)

Sentiment (positive or

negative mentions online)

Satisfaction and Loyalty (repurchase, renewals)

Not Important Slightly Important Important Very Important

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Survey Question: Please rate the effectiveness of your company’s application of the following social media metrics:

Marketers consider “Brand Awareness” to be an effective social media metricEffectiveness of Social Media Metrics

0%

50%

100%

33%

33%

34%

25%

42%

33%

17%

58%

25%

8%

25%

42%

25%

42%

33%

25%

25%

42%

33%

33%

42%

25%

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

Interaction (comments,

retweets, sharing, etc.)

Traffic (page views, time on site, etc.)

Leads (requests for trials or brochures)

Search Marketing (search engine

ranking)

Brand Awareness (number of

mentions online or share of voice)

Sentiment (positive or

negative mentions online)

Satisfaction and Loyalty (repurchase, renewals)

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The Growth Team Membership™ (GTM) is an annual subscription program that supports executives in Marketing, Sales Leadership, Corporate Strategy, Corporate Development, R&D/Innovation, Market Research, and Competitive Intelligence . GTM offers best practices research, events, and services to address the internal challenges executives face . Contact us at GTMResearch@frost .com .

The Three Overarching Challenges Affecting Asia Pacific Marketing Executives

what’s keeping marketing executives up at night in 2011?

Marketing’s Overarching Challenges Sample Solutions from the Growth Team Membership

Segmentation

Marketers are focusing on creating segment-specific campaigns and identifying new, adjacent markets .

Learn how Tandberg used customer segmentation as the foundation for building a customer-centric business model to enter adjacent markets .

Return on InvestmentLimitations in staff and moderately increasing budgets require marketing to identify and prioritize the highest potential campaigns .

Learn how Kimberly-Clark instituted an ROI-based process to evaluate, select, and monitor marketing programs .

Social Media MetricsMarketers are beginning to experiment with social media and need to understand where, when, and how to engage .

Learn how Kodak used a systematic approach to create and activate a social media strategy .

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Respondent Demographics

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Respondent Demographics

Survey Question: Please indicate the type of enterprise best represents your company .

N = 55

N = 55N = 55

Enterprise Type Business Model

Company Revenue

2%

42%

56% 56%

11%

33%Public

Hybrid Company

Private

B-to-B Company

Venture Capital

0%

30%

24% 24%

9%

24%

18%

Below $100 Million



$1 Billion to $11 Billion

More than $11 Billion

B-to-C Company

The majority of respondents work in B-to-B companies .More than half of

the respondents work in a private company .

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Respondent Demographics: Top Five Participating Industries

Survey Question: Please indicate which industry categories best describe your company (check all that apply .)

N = 56

Energy and Power Systems

Information and Communication Technologies

Automotive and Transportation

Chemicals, Materials, and Food

Healthcare and Life Sciences

0% 20% 40%

34%

32%

11%

11%

9%

growth team membership: 2011 asia pacific marketing priorities survey results

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