growth team membership: 2011 americas marketing priorities survey results

1

The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.

growth team m e m b e rs h i p™

co-sponsor

2011 Marketing Priorities Survey Results

Americas

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

Respondent Demographics . . . . . . . . . . . . . . . . . 43

External Factors Shaping Marketing Strategy . . . . 5

Key Marketing Challenges . . . . . . . . . . . . . . . . . . . 9

Marketing Effectiveness and Expenditures . . . . . 15

Social Media Expenditures and Ownership . . . . . 29

2


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

Source: Growth Team Membership™ research.

Marketing Survey Executive Summary

Key Internal Challenge Internal Challenge Root CauseThe challenge is to identify new, adjacent market opportunities The root cause of the challenge is the lack of marketing staff

Budget Priorities Resources Budget as a % of RevenueB-to-B marketers focus expenditures on traditional marcom activities, while B-to-C marketers are focusing on online marcom activities

2011 marketing budgets and staffing levels will remain constant compared to 2010

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

Social Media Use Social Media Objectives Social Media MetricsThe majority of marketers use social media in their marketing activities

Lead generation is the primary purpose for engaging in social media

Lead generation and website traffic are the most important metrics

Main External ChallengeThe challenge is capitalizing on the opportunities created by emerging markets

3




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

4




Survey Purpose and Respondents

Co-SponsorSurvey 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 North and Latin America .

316survey

respondents

5




External Factors Shaping Marketing Strategy

6




Marketing strategy is influenced heavily 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 (18%)

External Factor 2 Need for product and services innovation (22%)

External Factor 3 Government regulation and policy (13%)

7




B-to-B B-to-C Hybrid

External Factor 1 Emerging global markets (20%)

Government regulation and policy (27%)


External Factor 2 Need for product and services innovation (21%)

Increasing number of competitors (30%)

Need for product and services innovation (30%)

External Factor 3 Government regulation and policy (13%)

Decreasing customer willingness to pay [downward price pressure] (20%)

Continuing economic instability (21%)

There is a considerable overlap in challenges regardless of business modelTop Three External Factors (By Business Model)

8




Challenges for Marketing


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 (94%)

Need for product and service innovation (79%)

9




Key Marketing ChallengesBy Business ModelBy Company Revenue

10




Key Marketing Challenges Snapshot

Identifying new, adjacent market opportunities

Challenge 1

Identifying new, adjacent market opportunities

Challenge 1

Prioritizing content use to create maximum value with customers

(social media, white papers, benchmarking tools, etc .)

Challenge 1

Developing segment-specific marketing programs

Challenge 3

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

Challenge 3

Measuring marketing ROI

Challenge 3

Understanding changing customer preferences and needs

Challenge 2

Developing segment-specific marketing programs

Challenge 2

Understanding changing customer preferences and needs

Challenge 2

All CompaniesTop three challenges:

B-to-B CompaniesTop three challenges:

B-to-C CompaniesTop three challenges:

11




Challenge 1 Identifying new, adjacent market opportunities (22%)

Challenge 2 Understanding changing customer preferences and needs (12%)

Challenge 3 Developing segment-specific marketing programs (12%)

Challenge 4 Identifying, qualifying, and ensuring action on high-quality leads (9%)

Challenge 5 Providing high-impact tools to the sales force (12%)

Marketing executives are under pressure to identify new avenues of growth and respond to changes in customer behavior

Top Five Key Marketing Challenges

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

12




Marketing’s top challenges are largely the same across business models, but vary in their prioritization

Top Five Marketing Challenges (By Business Model)

B-to-B B-to-C Hybrid

Challenge 1 Identifying new, adjacent market opportunities (22%)

Prioritizing content use to create maximum value with customers [social media, white papers, etc .] (25%)

Identifying new, adjacent market opportunities (20%)

Challenge 2Developing segment-specific marketing programs (12%)

Understanding changing customer preferences and needs (25%)


Challenge 3Identifying, qualifying, and ensuring action on high-quality leads (11%)

Measuring marketing ROI (25%)

Developing segment-specific marketing programs (16%)

Challenge 4 Measuring marketing ROI (9%)

Embedding voice of the customer data into marketing strategies (29%)


Challenge 5 Improving Sales and Marketing integration (11%)

Providing high-impact tools to the sales force (29%)


13




Marketing’s top challenges are largely the same across revenue bands, but vary in their prioritization

Top Five Marketing Challenges (By Company Revenue)

Below $100 Million

$100–$500 Million

$500 Million–$1Billion

$1–$11 Billion

More than $11 Billion

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




Increasing the pace of new product and service introductions (27%)

Challenge 2






Challenge 3Measuring marketing ROI (14%)

Identifying, qualifying, and ensuring action on high-quality leads (21%)

Preparing the organization for a social media strategy (17%)

Improving Sales and Marketing integration (16%)


Challenge 4






Challenge 5

Identifying, qualifying, and ensuring action on high-quality leads (12%)

Improving Sales and Marketing integration (9%)




14




Challenge 1Identifying new, adjacent market opportunities

Staff: Limited Resources (64%)

Challenge 2Understanding changing customer preferences and needs

Staff: Limited resources (30%)

Challenge 3Developing segment-specific marketing programs


Challenge 4Identifying, qualifying, and ensuring action on high-quality leads


Challenge 5Providing high-impact tools to the sales force


The root cause of Marketing’s challenges is limited staff

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

15




Marketing Effectiveness and ExpendituresBy Business ModelBy Company Revenue

16




Marketing Expenditures and Effectiveness Snapshot

Rank their marketing effectiveness as “Above Average”

6% of their company’s revenue is allocated to the marketing budget

Largest budget item is staff

Expect their staffing levels to stay the same or increase moderately in 2011

Expect their marketing budgets to stay the same or increase moderately in 2011




Expect their staffing levels to stay the same in 2011

Expect their marketing budgets to stay the same in 2011




Expect their staffing levels to stay the same in 2011

Expect their marketing budgets to stay the same in 2011

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

17




Half of marketers rate their function’s effectiveness as “Above Average” or “Exceptional”Marketing’s View of its Effectiveness (By Business Model)

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

All Companies B-to-B Companies

B-to-C CompaniesHybrid Companies

9%

17%

8%

41% 43%

50%

36%

42%

38%

6%

37%

25%

12% 13%

25%

Above AverageAbove Average

Above Average

Above Average

Exceptional Exceptional

Exceptional

Below Average Below Average

Below AverageBelow Average

Average Average

Average

Average

18




0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

61%

100%

55%

18%

0%

10%6%

0%3%

7%

0%3% 4%

0%

7%4%

0%

21%

5% 7%4%

7%

60%

16%

On average, Hybrid companies have larger marketing budgets2010 Marketing Budgets (By Business Model)

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

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 Hybrid Companies

19




B-to-C companies allocate more revenue to marketing than companies with other business models

Percentage of Annual Company Revenue Allocated to Marketing (By Business Model)

Survey Question: Please provide your 2010 total marketing budget (from the previous question) as a percentage of total company revenue: The graph above indicates the median percentages of each business model .

0%

5%

10%

2%

6%

5%

All Companies2%

B-to-B Companies

B-to-C Companies

Hybrid Companies

20




Staff is the largest budgetary expenditure across business modelsMarketing Budget Allocation (By Business Model)

Survey Question: Please provide the percentage allocation of your total 2010 marketing budget to the following activities .

0%

10%

20%

30%

40%40%40%40%

11%

8%

18%

10%

13%

10%

5%7%

4%5%

6%5%

1%

3%

1%

4%

1%

5%5%5%5%5%

1%

40%

19%

10%

5% 5%

2%

5% 2%

5%

The red percentages are the median values for all companies’ marketing budget by category .

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)

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

21




Regardless of business model, Marketing will avoid further staff cuts, either maintaining existing numbers or recruiting moderately

2011 vs . 2010 Staffing Plans (By Business Model)

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



8%

2%3%

7%

25%

4%

8%

3% 1%

54% 53%

50%

57%

7%

50%

34% 35%

Stay the Same Stay the Same

Stay the Same

Stay the Same

Decrease Moderately Decrease Moderately

Decrease Moderately

Decrease Substantially Decrease Substantially

Decrease Substantially

Increase Substantially Increase Substantially

Increase Substantially

Increase ModeratelyIncrease Moderately


22




Budget cuts appears to be over—the majority of companies expect to maintain existing budgets

2011 vs . 2010 Budgets (By Business Model)

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



8%

2%3%

7%

25%

4%

8%

3% 1%

54% 53%

50%

57%

7%

50%

34% 35%

Stay the Same Stay the Same

Stay the Same

Stay the Same

Decrease Moderately Decrease Moderately

Decrease Moderately

Decrease Substantially Decrease Substantially

Decrease Substantially

Increase Substantially Increase Substantially

Increase Substantially


Increase Moderately

Increase Moderately

23




As a company’s revenue increases, marketing executives are more likely to rate their function’s effectiveness as “Above Average”

Marketing’s View on its Effectiveness (By Company Revenue)

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

Below $100 Million

All Companies $100 Million to $499.99 Million


$1 Billion to $11 Billion


0%

50%

100%

3%

21%

49%

27%

7%

37%

37%

20%

7%

36%

46%

11%

13%

25%

50%

13%

6%

49%

41%

4%

24%

48%

24%

4%

Below Average Average Above Average Best-in-Class

24




As company revenue increases so does marketing’s budgetMarketing Budget Allocation (By Company Revenue)

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

Below $100 Million





0%

50%

100%

60%

16%

5%

7%

4%

7%

90%

9%

1%

44%

32%

4%

8%

12%

40%

20%

40%

42%

22%

9%

13%

7%

7%

21%

16%

5%

5%

5%

47%

25




Smaller companies are more likely to allot a larger portion of their revenue to marketing

2010 Marketing Budget (By Company Revenue)

Survey Question: Please provide your 2010 total marketing budget (from the previous question) as a percentage of total company revenue: The graph above indicates the median percentages of each revenue category .

Below $100 Million





0%

1%

2%

3%

4%

5%5%

1% 1% 1%

2% All Companies2%

26




Staffing is Marketing’s largest expenditure across revenue rangesMarketing Budget Allocation (By Company Revenue)

Survey Question: Please provide the percentage allocation of your total 2010 marketing budget to the following activities .

Personnel/StaffingMarketing Communications (Traditional Media)

Marketing Communications (Online/Digital Media)

Channel Partner ProgramsCustomer 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)

Below $100 Million





0%

50%

100%

40%

19%

10%

5%

5%2%

5%2%

5%

39%

13%

15%

5%

5% 2%2%1%

35%

25%

6%

5%5%

1%2%

5%

39%

7%

3%

10%

3%3%5%

5%

48%

10%

8%

4% 1%2%

5%

5%

38%

15%

10%

8%

1%1%

1%5%3%

27




Regardless of revenue, respondents see their 2011 staffing levels as staying the same or increasing moderately

2011 vs . 2010 Staffing Levels (By Company Revenue)

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

Below $100 Million





0%

10%

20%

30%

40%

50%

60%

6%

39%38%

12%

4%

9%

40%

44%

4%3%

4%

46%

29%

17%

4%

0%

60%

20%20%

0%3%

33%

40%

17%

7%5%

37%37%

16%

5%

Increase Substantially Increase Moderately Stay the Same Decrease Moderately Decrease Substantially

28




Marketers from larger companies are less optimistic about budget changes for 20112011 vs . 2010 Budget (By Company Revenue)

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

Below $100 Million





0%

10%

20%

30%

40%

50%

60%

70%

80%

2%

34%

54%

8%

3% 3%

32%

55%

8%

2%4%

46%

29%

17%

4%

0%

25%

75%

0% 0% 0%

31%

56%

10%

3%0%

32%

58%

5% 5%

Increase Substantially Increase Moderately Stay the Same Decrease Moderately Decrease Substantially

29




Social Media Expenditures and Ownership

30




Social Media Snapshot

The majority use social media in their marketing activities

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

Lead generation is the most important social media metric

Traffic is the most effectively applied social media metric



Traffic and lead generation are the most important social media metrics

Search marketing is the most effectively applied social media metric



Lead generation is the most important social media metric

Search marketing is the most effectively applied social media metric

All Companies B-to-B Companies Hybrid Companies

Note: Due to small response rates, there is no B-to-C data for this section.

31




Companies are likely to integrate social media with their marketing activitiesSocial Media Usage (By Business Model)

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


Hybrid Companies

38%37%

30%

62%63%

70%

NoNo

No

YesYes

Yes

32




Corporate Marketing predominantly owns social mediaOwnership of Social Media (By Business Model)

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

Other

H

HH

H

H

H

H

0%

10%

20%

30%

40%

50%

60%

70%

63%

53%

6% 6% 5%

0%

15%18%

0% 0%

7%

24%

4%

0%

60%

6% 4%

15%

0%

4%

11%

All Companies B-to-B Companies Hybrid Companies

33




Objective 1 Generate leads (21%)

Objective 2 Engage current customers to increase satisfaction and/or loyalty (19%)

Objective 3 Drive word of mouth about existing products and services (25%)

Objective 4 Build relationships with influencers/advocates (19%)

Objective 5 Listen for insights from conversations (16%)

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 revenue opportunitiesSocial Media Objectives

34




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

Findings ways to measure social media’s impact continues to be crucial for marketersImportance of Social Media Metrics

0%

50%

100%

33%

52%

14%

1%

26%

43%

20%

11%

50%

34%

12%

3%

37%

40%

19%

4%

38%

45%

16%

1%

26%

44%

23%

7%

45%

33%

14%

8%

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

35





B-to-B marketers stress the importance of site traffic and lead generation as social media metrics

Importance of Social Media Metrics (B-to-B Companies)








ranking)





0%

50%

100%

33%

52%

15%

27%

42%

18%

14%

49%

35%

12%

4%

36%

41%

19%

4%

35%

47%

17%

1%

24%

45%

24%

7%

42%

35%

15%

8%

36





Hybrid company marketers stress lead generation as the most important social media metricImportance of Social Media Metrics (Hybrid Companies)








ranking)





0%

50%

100%

27%

60%

7%

7%

27%

47%

27%

57%

36%

7%

40%

33%

20%

7%

47%

40%

13%

33%

40%

20%

7%

53%

27%

13%

7%

37




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

Most marketers see themselves as “Average” in measuring their success in social mediaEffectiveness of Social Media Metrics






ranking)






0%

50%

100%

7%

22%

50%

18%

4%

11%

39%

42%

8%

2%

15%

45%

33%

5%

7%

30%

39%

20%

6%

7%

17%

47%

24%

5%

4%

20%

39%

23%

14%

7%

21%

39%

22%

12%

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

38





B-to-B marketers feel they are least effective at measuring social media interactionsEffectiveness of Social Media Metrics (B-to-B Companies)







ranking)





0%

50%

100%

7%

18%

50%

20%

5%

11%

36%

45%

8%

3%

15%

41%

35%

7%

8%

30%

38%

19%

5%

7%

14%

45%

29%

5%

5%

19%

37%

24%

15%

8%

20%

37%

21%

13%


39





Hybrid company marketers feel they are using traffic metrics most effectivelyEffectiveness of Social Media Metrics (Hybrid Companies)







ranking)





0%

50%

100%

7%

40%

40%

13%

13%

47%

33%

7%

20%

53%

27%

27%

40%

27%

7%

7%

27%

60%

7%

20%

47%

20%

13%

20%

47%

27%

7%


40




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

Regardless of revenue band, most companies use social media in their marketing activitiesSocial Media Usage (By Revenue Category)

Yes No

Below $100 Million





0%

50%

100%

63%

37%

71%

29%

48%

52%

67%

33%

53%

47%

78%

22%

41




Below $100 Million





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

Irrespective of revenue band, Corporate Marketing tends to manage social mediaOwnership of Social Media (By Company Revenue)

0%

50%

100%

60%

6%

4%

15%

11%

4%

67%

5%2%2%

17%

7%

58%

8%

8%

25%

75%

25%

54%

8%

4%

19%

15%

54%

8%

8%

31%

Other Cross-Functional Team

Customer Service

Corporate Communications

Independent Social Media Team

E-marketing/Digital Marketing

Corporate Marketing

42




Marketing Overarching Challenges Sample Solutions from the Growth Team Membership

SegmentationMarketers are focusing on creating segment-specific campaigns in response to changes in customer needs .

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

Return on InvestmentStaff limitations and stagnant marketing 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 recognize the importance of social media metrics but struggle to identify and apply relevant measures .

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

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 Top Three Overarching Challenges Affecting North and Latin American Marketing Executives

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

43




Respondent Demographics

44




Respondent Demographics

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

N = 291

N = 294N = 293

Enterprise Type Business Model

Company Revenue

35%

6%

59%

19%

4%

77%

Public

Hybrid Company

Private

B-to-B CompanyVenture Capital

0%

30%

60%

40%

13%

6%

27%

11%

Below $100 Million





B-to-C Company

The overwhelming majority of the respondents work in B-to-B companies .

More than half of the respondents work in a private company .

45




Respondent Demographics: Top Five Participating Industries

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

N = 307

Energy and Power Systems

Electronics and Security

Chemicals, Materials, and Food

Healthcare and Life Sciences

Professional Services

Information and Communication Technologies

0% 20% 40%

26%

19%

13%

11%

10%

10%

growth team membership: 2011 americas marketing priorities survey results

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