segmentation and the value proposition - 2012 marketing priorities survey results

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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™

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Segmentation and the Value Proposition

europe

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 value proposition Insufficient personnel and process

SECTION 2: Marketing Resource Trends

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

2012 budgets and staffing levels will increase moderately

Marketers continue to allocate a majority of funding toward personnel/staffing

SECTION 3: Demand Generation

Demand Generation Effectiveness

Demand Generation Activities Demand Generation Focus for 2012

Most respondents indicate their effectiveness is “Average”

Marketers indicate that their teams are best at leveraging customer segmentation

Marketing’s priority is developing segment‑specific campaigns

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Introduction

Survey Purpose and Respondents

Co-SponsorSurvey 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 Europe

146survey

respondents

5




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 GTMResearch@frost .com .

Developing a Value PropositionMarketing executives tend to guess why customers buy, instead of collaborating with Sales or assessing the market . Over time, mixed messages become diffused and 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 using social media—whether you harness it or not is up to you . Marketers need to enable practitioners with best practices 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 .

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INTRO

SECTION

1

SECTION

2

SECTION

4

SECTION

3

SECTION

1 Key Marketing Challenges

8




Section 1

Challenge 1 Developing a compelling value proposition (23%)

Challenge 2 Understanding changing customer preferences and needs/incorporating voice of the customer (15%)

Challenge 3 Prioritizing markets and market segments (17%)

Challenge 4 Driving sales usage of marketing collateral, tools, and resources (14%)

Challenge 5 Measuring marketing ROI (18%)

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.

9




Section 1

Marketers in B-to-B companies are occupied with supporting the sales force, while their peers in B-to-C companies are struggling with balancing traditional and social media tactics

Top Five Marketing Challenges (By Business Model)

B-to-B B-to-C

Challenge 1 Developing a compelling value proposition (25%) Developing a compelling value proposition (18%)

Challenge 2Understanding changing customer preferences and needs/incorporating voice of the customer (16%)

Improving sales and marketing integration (19%)

Challenge 3 Prioritizing markets and market segments (18%)Coordinating social media and traditional marketing activities (20%)

Challenge 4 Driving sales usage of marketing collateral, tools, and resources (16%)

Understanding changing customer preferences and needs/incorporating voice of the customer (13%)

Challenge 5 Improving sales and marketing integration (16%) Measuring marketing ROI (29%)

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.

10




Section 1

Understaffing is the predominant cause 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 and Process: Ineffective process (24%)

Challenge 2Understanding changing customer preferences and needs/incorporating voice of the customer

Process: Ineffective process (31%)

Challenge 3 Prioritizing markets and market segments Staff: Limited resources (43%)

Challenge 4 Driving sales usage of marketing collateral, tools, and resources Staff: Limited resources (27%)

Challenge 5 Measuring marketing ROI Process: Lack of process (36%)

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INTRO

SECTION

1

SECTION

2

SECTION

4

SECTION

3

SECTION

2 Marketing Resource Trends

12




Section 2

F

F

F

F F F

0%

10%

20%

30%

40%

50%

60%

70%

41%

68%

26%

5%8%

18%

8%

0%

6%9%

11%

0%

49%

19%

11%

6%7% 8%

Marketing departments in B-to-B companies are likely to have larger budgets

2012 Marketing Budgets (By Business Model)

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)?

The red percentages are for all respondents .

Below $1 Million $1 Million to $2.99 Million

$3 Million to $4.99 Million



$20 Million or more

All Companies B-to-B Companies B-to-C Companies

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Section 2

B-to-C companies tend to spend a higher percentage of total revenue on marketing activities

Percent of Revenue Dedicated to Marketing Budget (By Business Model)

SURVEY QUESTION: What is your 2012 total marketing budget (from the previous question) as a percentage of your company’s total 2011 revenue?

All Companies B-to-B Companies B-to-C Companies0.00%

0.20%

0.40%

0.15%

0.10%

0.23%

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Section 2

F

F

F

F F

F

F

F

F

F0%

10%

20%

30%30%

25%

15%

10%9%

10%

1%

5%4%

2%

5%

3%

10% 10%

0%1%

5% 5%

0% 0%

30%

15%

2%2%

5%

10%

0%

5%

0%

10%

B-to-C companies are more likely to embrace online marketing over traditional media

Marketing Resource Allocations (By Business Model)

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


15




Section 2

Marketing staffing levels are expected to remain constant in 2012

Marketing Staffing Changes (By Business Model)

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

16%

3%

46%

30%

Stay the Same

Decrease Moderately

Decrease Substantially Increase Substantially

Increase Moderately

All Companies

B-to-C Companies

B-to-B Companies

10%

5%

50%

35%

Stay the Same

Decrease Moderately

Decrease Substantially

Decrease Substantially Increase Substantially

Increase Moderately

5% 6%

2%

45%

28%

19%

Stay the Same

Decrease Moderately

Increase Moderately

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Section 2

Marketing foresees stagnant budgets in 2012

Marketing Budget Changes (By Business Model)

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

16%

4%

2%

5%

42%

31%

Stay the Same

Decrease Moderately

Decrease Substantially Increase Substantially Increase Substantially

Increase Moderately

All Companies

B-to-C Companies

B-to-B Companies

10%

5%

45%

25%

Stay the Same

Decrease Moderately

Decrease SubstantiallyIncrease Substantially

Increase Moderately

6%

15%

41%

34%

19%

Stay the Same

Decrease Moderately

Decrease Substantially

Increase Moderately

17




Section 2

Marketers indicate their effectiveness is “Average” in comparison to their peers

Marketing Effectiveness (By Business Model)

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

All Companies B-to-B Companies

B-to-C Companies

4% 4%

5%

36% 37%

35%

45% 45%

45%

15% 14%

15%

Above Average Above Average

Above Average

Exceptional Exceptional

Exceptional

Below Average Below Average

Below Average

AverageAverage

Average

18




INTRO

SECTION

1

SECTION

2

SECTION

4

SECTION

3SECTION

3 Special Interest Topic: Demand Generation

19




Section 3

Marketers tend to consider their demand generation capabilities as “Average” in comparison to their peers

Demand Generation Effectiveness (By Business Model)

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

All Companies B-to-B Companies

B-to-C Companies

2%

6%

27%

15%

22%

55%

30%

55%

16%

55%

17%

Above Average

Above Average

Above Average

Exceptional

Exceptional

Below Average Below Average

Below Average

Average Average

Average

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Section 3

The majority of respondents indicate that mobile marketing is their weakest demand generation capability

Demand Generation Activities Effectiveness (All Companies)

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%

1%

19%

52%

28%

8%

27%

42%

23%

3%

27%

50%

18%

2%

4%

25%

44%

22%

5%

23%

47%

23%

5%2%

36%

42%

17%

5%

11%

22%

42%

25%

15%

52%

31%

2%

3%

22%

55%

20%

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

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Section 3

B-to-B marketers are unhappy with the effectiveness of their mobile and social media marketing tactics

Demand Generation Activities Effectiveness (B-to-B Companies)



Sales









Employ campaigns


Leverage customer

segmentation


0%

50%

100%

22%

48%

30%

4%

27%

47%

22%

2%

29%

51%

18%

4%

28%

37%

29%

2%

20%

48%

26%

4%2%

32%

41%

20%

7%

9%

24%

38%

29%

13%

42%

42%

3%

4%

20%

56%

20%


22




Section 3

Integrating mobile marketing tactics is B-to-C respondents’ largest area for improvement

Demand Generation Activities Effectiveness (B-to-C Companies)



Sales









Employ campaigns


Leverage customer

segmentation


0%

50%

100%

5%

11%

63%

21%

16%

26%

32%

26%

5%

21%

48%

21%

5%

6%

16%

61%

6%

11%

33%

44%

17%

6%

44%

45%

11%

15%

16%

52%

16%

21%

74%

5%

26%

53%

21%


23




Section 3

Marketing is focused on activities involving segmentation and the value proposition

Demand Generation Activities for 2012 (By Business Model)

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

Enhancing contact database (40%)

Developing segment‑specific campaigns (64%)

Refining the value proposition (64%)Developing segment‑specific campaigns (72%)

Refining the value proposition (58%)Developing qualification criteria collaboratively with Sales (60%)

Identifying new segments (61%)

Reevaluating target segments (61%)

Developing qualification criteria collaboratively with Sales (61%)

Developing segment‑specific campaigns (62%)

Developing qualification criteria collaboratively with Sales (67%)

Identifying new segments (55%) Identifying new segments (53%) Enhancing contact database (56%)

Reevaluating target segments (50%) Improving lead cleansing (44%)


24




Section 3

Respondents in B-to-C companies are likely to use more email campaigns, while their peers in B-to-B companies rely on live events

Media Mix for Demand Generation Activities (By Business Model)

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


Email

20% 20% 25%

Social Media

5% 5% 5%

Live Events

25% 25% 10%

Internet (search engine optimization)

10% 15% 10%

25




INTRO

SECTION

1

SECTION

2

SECTION

4

SECTION

3

SECTION

4 Respondent Demographics

26




Section 4

Respondent Demographics

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

N = 143

N = 144N = 144

Enterprise Type Business Model

Company Revenue

29%

6%4%

60%

23%

6%

71%Public

Private

Hybrid

B-to-B Company

Venture Capital

0%

20%

40%

24%20%

9%

29%

18%

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 .

The majority of the respondents come from Public companies .

27




Section 4

Environmental and Building Technologies

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 = 144

Automotive and Transportation

0% 20% 40%

31%

29%

25%

23%

22%

Chemicals, Materials, and Food

Energy and Power Systems

Healthcare and Life Sciences

segmentation and the value proposition - 2012 marketing priorities survey results

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