growth team membership: americas 2010 marketing priorites survey results

Growth Team Membership™: Americas 2010 Marketing Priorities

Survey Results

February 2010

2Growth Team Membership™ Research.

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Table of Contents

Page

Section 1: Survey Purpose and Respondents

4

Section 2: External Factors Shaping Marketing Strategy

5

Section 3: Key Marketing Challenges

9

Section 3.1: By Business Model

10

Section 4: Marketing Effectiveness and Expenditures

14

Section 4.1: By Business Model

16

Section 4.2: By Company Revenue

23

Section 5: Respondent Demographics

28

The content of these pages are ©

2010 Frost & Sullivan. All rights reserved.


Survey Purpose and Respondents

There were 437 survey

respondents

Research ObjectiveTo understand the most pressing external and internal challenges shaping marketing executives’

2010 planning.

MethodologyWeb-based survey platform

Survey PopulationTarget respondents were Manager level and above marketing executives from companies throughout North and Latin America.

Co-Sponsor


External Factors Shaping Marketing Strategy


Top Three External Factors

N = 387

19%

28%

16%

0% 25% 50%

Changes in customer buyingbehavior

Intesifying Competition

Adjusting to the economicdownturn

KEY TAKEAWAY:

Marketing executives are still concerned with the global economic downturn and its consequences.

Survey Question: Please indicate the three business environment factors that have the most impact on your 2010 Marketing plans.


B-to-B B-to-C Hybrid

Adjusting to the economic downturn (28%)

Changes in customer buying behavior (27%)


Intensifying competition (20%)



Changes in customer buying behavior (18%)


Need for product/service innovation and capabilities (16%)

External Factor 1

External Factor 1

KEY TAKEAWAY: There is a considerable overlap in challenges regardless of business model

Top Three External Factors (By Business Model)

N = 387

External Factor 2

External Factor 2

External Factor 3

External Factor 3


84%

71%

90%

0%

50%

100%

Adjusting to the economic downturn Intensifying Competition Changes in customer buying behavior

External Factors Impact on Marketing

N = 370

Survey Question: Please indicate the impact that each of the following forces have on your 2010 Marketing plans.

KEY TAKEAWAY: For 2010, the top three external factors impacting strategies are overwhelmingly negative.

Negative Impact


Key Marketing Challenges


Key Marketing Challenges Snapshot

All CompaniesTop three challenges:

Identifying new, adjacent market opportunities

Identifying new opportunities for existing products

Measuring marketing spend efficiency and effectiveness

B-to-B CompaniesTop three challenges:


Identifying new opportunities for existing products

Measuring marketing spend efficiency and effectiveness

B-to-C CompaniesTop three challenges:

Managing brand investments


Cultivating brand attributes to increase brand differentiation

1

2

3

1

2

3

1

2

3


Top Five Key Marketing Challenges

Challenge 1Challenge 1 Identifying new, adjacent market opportunities (19%)

Challenge 2Challenge 2 Identifying new opportunities for existing products (11%)

Challenge 3Challenge 3 Measuring marketing spend efficiency and effectiveness (10%)

N = 307

Survey Question: Please indicate the top five challenges shaping

your Marketing decision-making in 2010.

KEY TAKEAWAY:

Marketing executives are under pressure to focus on identifying new avenues of growth.

Challenge 4Challenge 4 Prioritizing content offerings to create maximum value with customers

(social media, white papers, benchmarking tools, etc.) (10%)

Challenge 5Challenge 5 Monitoring changing customer preferences and needs (8%)



Identifying new, adjacent market opportunities (18%)

Managing brand investments (33%)

Identifying new, adjacent market opportunities (19%)

Identifying new opportunities for existing products (11%)

Identifying new, adjacent market opportunities (11%) Improving Sales and Marketing

Integration (12%)

Measuring marketing spend efficiency and effectiveness (9%)

Cultivating brand attributes to increase brand differentiation (22%)

Monitoring changing customer preferences and needs (14%)

Prioritizing content offerings to create maximum value with customers (social media, white papers, benchmarking tools, etc.) (10%)

Monitoring changing customer preferences and needs (29%)

Identifying new opportunities for existing products (10%)

Improving Sales and Marketing Integration (9%)

Prioritizing content offerings to create maximum value with customers (29%)

Prioritizing content offerings to create maximum value with customers (10%)

Challenge 1

Challenge 1

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

Top Five Marketing Challenges (By Business Model)

N = 307

Challenge 2

Challenge 2

Challenge 3

Challenge 3

Challenge 4

Challenge 4

Challenge 5

Challenge 5


Root Cause of Top Five Marketing Challenges

N = 290

Technology16%

Technology40%

Process28%

Process31%

Process43%

Process39%

Process57%

Staff59%

Staff53%

Staff17%

Staff57%

Staff33%

10%4%Technology

13%0%

50%

100%

Identifying new,adjacent markets

Identifying newopportunities forexisting products

Measuring marketingspend efficiency and

effectiveness

Prioritizing contentofferings to create

maximum value withcustomers

Monitoring changingcustomer preferences

and needs

Survey Question: For the top five challenges you selected above, please indicate whether the root cause of the challenge is staff, technology, or process.

KEY TAKEAWAY:

Staff or process issues are the key root causes of Marketing’s top challenges.

Technology


Marketing Effectiveness and Expenditures


Marketing Expenditures and Effectiveness Snapshot

All CompaniesRank 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 increase moderately in 2010

Expect their marketing budgets to stay the same in 2010

B-to-B CompaniesRank their marketing effectiveness as above average

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

Largest budget items are staff followed by online media/marcom activities

Expect their staffing levels to increase moderately in 2010


B-to-C CompaniesRank their marketing effectiveness as average

8.5% of their company’s revenue is allocated to the marketing budget

Largest budget expenditure is traditional media/marcom activities

Expect their staffing levels to stay the same in 2010



Average49%

Above Average21%

Exceptional3%

Below Average27%

Average62%

Above Average25%

Exceptional0%

Below Average13%

Average43%

Above Average30%

Exceptional9% Below Average

18%

Average36%

Above Average43%

Exceptional9%

Below Average12%

All Companies B-to-B Companies

B-to-C CompaniesHybrid Companies

Marketing’s View of Its Effectiveness (By Business Model)

N = 274

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

KEY TAKEAWAY: B-to-B Marketer’s are more likely to rate their effectiveness as above average.


58%

20%

6% 6% 5% 5%

43%

57%

0% 0% 0% 0%

64%

17%

8%

0%4%

7%5%4%5%

59%

21%

6%

0%

20%

40%

60%

80%

Below $ 1 Million $ 1 Million to $2.99Million

$ 3 Million to $ 4.99Million

$ 5 Million to $ 9.99Million

$ 10 Million to $19.99Million

$ 20 Million or more

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

2009 Marketing Budgets (By Business Model)

N = 265

Survey Question: Please indicate your 2009 total marketing budget (all expenditures on marketing activities and general & administrative—including staff) was in the range of in US$.

KEY TAKEAWAY: On average, B-to-C companies have larger marketing budgets.

The red percentages are for all respondents.

The red percentages are for all respondents.


8.5%

3.0%3.0%

0.0%

5.0%

10.0%


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

N = 206

Survey Question: Please provide your 2009

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.

KEY TAKEAWAY: B-to-C companies allocate twice the amount of revenue to marketing as

companies with other business models.

All Companies: 3.0%


35%

10%

15%

5%

0%

5%2% 1%

10%

20%

10%

5%

10% 10%

4% 5%

30%

10% 10%

3%5% 5% 5%

2%

1%2%

5%2%

5%

33%

10%15%

0%

20%

40%

Staffing MarketingCommunications:Traditional mediaand promotions

MarketingCommunications:

Online/media

Public Relations Channel PartnerPrograms

CustomerRelationshipManagement

KnowledgeManagement

Training

B-toB B-to-C Hybrid Overall

Marketing Budget Allocation (By Business Model)

KEY TAKEAWAY: In

B-to-B companies online media is the largest Marcom activity while staffing absorbs a third of the budget. B-

to-C companies spend more on traditional media activities.

N = 180

The red percentages are the median values for all companies’

marketing budget by category.

The red percentages are the median values for all companies’

marketing budget by category.

Survey Question: What percentage of your total Marketing Budget is spent on the following? The graph above indicates the median percentages assigned to each component.


Decrease Substantially

3%

Increase Moderately

37%Stay the Same

39%

Decrease Moderately

13%

Increase Substantially

8%

Stay the Same63%

Decrease Moderately

12% Increase Moderately

25%


4%

Increase Moderately

35%Stay the Same41%

Decrease Moderately

9%


11%


3%

Increase Moderately

39%Stay the Same

37%

Decrease Moderately

14%


7%

2010 vs. 2009 Staffing Plans (By Business Model)

N = 290

Survey Question: In comparison to 2009, your 2010 marketing staff

will:

KEY TAKEAWAY:

Regardless of business model, Marketing will avoid further staff cuts, either maintaining existing numbers or recruiting at a moderate level.





2%

Increase Moderately

21%

Stay the Same65%

Decrease Moderately

9%


3%

Stay the Same63%

Decrease Moderately

25%

Increase Moderately

12%


4%

Increase Moderately

26%

Stay the Same53%

Decrease Moderately

11%


6%


2%Increase

Moderately20%

Stay the Same67%

Decrease Moderately

8%


3%



2010 vs. 2009 Budgets (By Business Model)

N = 290

Survey Question: In comparison to 2009, your 2010 marketing budget

will:

KEY TAKEAWAY: Budget cutting appears to be over—the majority of companies are optimistic—expecting a moderate or substantial increase in budget.



1%

Increase Moderately

62%

Stay the Same15%

Decrease Moderately

5%


17%

Stay the Same25%

Decrease Moderately

12%

Increase Moderately

63%Increase

Moderately63%

Stay the Same16%

Decrease Moderately

4%


16%


2%

Increase Moderately

60%

Stay the Same14%

Decrease Moderately

6%


18%



Anticipated Company Performance in 2010 (By Business Model)

N = 290

Survey Question: In comparison to

2009, your company’s performance by the end of 2010

will:

KEY TAKEAWAY:

Marketers believe the economy is rebounding and predict a moderate increase in their company’s 2010 performance.


18% 16% 11%4%

41%38%

38%45%

18%

37%38%

40% 42% 47%

47%

4% 8% 11% 8% 4%12%

23%

8%

42%

0%

50%

100%

All Companies Below $100Million

$100 Million to$499 Million


$1 Billion to $11Billion

More than $11Billion

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

N = 274

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

KEY TAKEAWAY:

As a company’s revenue increases, marketing executives are more likely to rate their function’s effectiveness as above average.

Exceptional

Above Average

Average

Below Average


59%

85%

29% 26%

21%

11%

49%

28%

31%

6%

3%

8%

16% 9%

6%

5%

1%

8%

12%

6%

4%6%

12%

9%

13%

5% 8%16%

31%

36%

13%

16%

12%

0%

50%

100%






Marketing Budget (By Company Revenue)

N = 265

Survey Question: Please indicate your 2009 total marketing budget (all expenditures on marketing activities and general & administrative—including staff) was in the range of in US$.

KEY TAKEAWAY:

As company revenue increases so does marketing’s budget.

$20 Million or More

$10 to $19.99 Million

$3 to $4.99 Million

$1 to $2.99 Million

$5 to $9.99 Million

Below $ 1 Million


8% 8% 13%7%

37% 42%42%

28%36%

39%38% 29%

30%

40%43%

13% 8% 16%

18%21%

3% 4%

18%7%

4%

48%

0%

50%

100%






2010 vs. 2009 Staffing Levels (By Company Revenue)

N = 290

Survey Question: In comparison to 2009, your 2010 marketing staff

will:

KEY TAKEAWAY:

Regardless of revenue, respondents see their 2010 staffing levels as staying the same or increasing moderately.


Decrease Moderately

Increase Moderately


Stay the Same


2010 vs. 2009 Budget (By Company Revenue)

N = 290

3% 2% 6% 4%

21% 21%

32%

16%

29%

65% 67%

56%

74%56%

64%

9% 7%6%

22%

2% 3% 2%

4% 7%

13%

9%

0%

50%

100%




$1 Billion to$11 Billion


Survey Question: In comparison to 2009, your 2010 marketing budget

will:

KEY TAKEAWAY:

Marketers from larger companies are more optimistic about budget changes for 2010.

Decrease SubstantiallyDecrease Moderately

Increase Moderately


Stay the Same


Anticipated Company Performance for 2010 (By Company Revenue)

N = 290

17% 21% 19%10%

62% 56% 63%71% 80%

15% 16% 9%21% 14%

13%5% 7% 9%1% 5%

9% 7%

70%

0%

50%

100%




$1 Billion to$11 Billion


Survey Question: In comparison to 2009, your company’s performance by the end of 2010

will:

KEY TAKEAWAY:

As company revenue increases, so does the conviction that company performance will increase moderately.

Decrease SubstantiallyDecrease Moderately

Increase Moderately


Stay the Same


Respondent Demographics


Venture Capital6%

Public35%

Private59%

B-to-C Company

3%

Hybrid Company

21%

B-to-B Company

76%

Demographics

N = 408

Over half of the respondents work in a private company.

Over half of the respondents work in a private company.

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

KEY TAKEAWAY:

Respondents tended to be from private, B-to-B companies whose 2009 revenue was below $100 Million.

11% 8%18%

8%

51%

0%

30%

60%

Below $100 million $100 to $499.99million

$500 million to$999.99 million

$1 billion to $11billion

More than $11billion

Enterprise Type Business Model

Company Revenue

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

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

N = 415 N = 413


20%

14%

11%

10%

10%

33%

0% 20% 40%

Information and CommunicationTechnologies

Healthcare and Life Sciences

Electronics and Security

Energy and Power Systems

Automotive and Transportation

Professional Services

Demographics: Top Five Participating Industries

N = 408

More than 50% of the respondents are in the Information and Communication Technologies

or Healthcare and Life Sciences

industries.

More than 50% of the respondents are in the Information and Communication Technologies

or Healthcare and Life Sciences

industries.

Survey Question: Please indicate which of these Industry categories best describes you organization (please indicate all that apply).