growth team membership: americas 2010 marketing priorites survey results
TRANSCRIPT
Growth Team Membership™: Americas 2010 Marketing Priorities
Survey Results
February 2010
2Growth Team Membership™ Research.
What is Growth Team Membership™?
If you have any questions or comments, please contact us at [email protected]
Growth Team Membership™
(GTM) is an annual subscription program that offers research, events and services designed to increase the effectiveness, productivity, and impact of executives in the functions that support the CEO’s growth strategy.
3Growth Team Membership™ Research.
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.
4Growth Team Membership™ Research.
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
5Growth Team Membership™ Research.
External Factors Shaping Marketing Strategy
6Growth Team Membership™ Research.
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.
7Growth Team Membership™ Research.
B-to-B B-to-C Hybrid
Adjusting to the economic downturn (28%)
Changes in customer buying behavior (27%)
Adjusting to the economic downturn (31%)
Intensifying competition (20%)
Adjusting to the economic downturn (27%)
Intensifying competition (18%)
Changes in customer buying behavior (18%)
Intensifying competition (50%)
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
8Growth Team Membership™ Research.
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
9Growth Team Membership™ Research.
Key Marketing Challenges
10Growth Team Membership™ Research.
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, adjacent market opportunities
Identifying new opportunities for existing products
Measuring marketing spend efficiency and effectiveness
B-to-C CompaniesTop three challenges:
Managing brand investments
Identifying new, adjacent market opportunities
Cultivating brand attributes to increase brand differentiation
1
2
3
1
2
3
1
2
3
11Growth Team Membership™ Research.
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%)
12Growth Team Membership™ Research.
B-to-B B-to-C Hybrid
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
13Growth Team Membership™ Research.
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
14Growth Team Membership™ Research.
Marketing Effectiveness and Expenditures
15Growth Team Membership™ Research.
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
Expect their marketing budgets to stay the same 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
Expect their marketing budgets to stay the same in 2010
16Growth Team Membership™ Research.
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.
17Growth Team Membership™ Research.
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.
18Growth Team Membership™ Research.
8.5%
3.0%3.0%
0.0%
5.0%
10.0%
B-to-B B-to-C Hybrid
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%
19Growth Team Membership™ Research.
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.
20Growth Team Membership™ Research.
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%
Decrease Substantially
4%
Increase Moderately
35%Stay the Same41%
Decrease Moderately
9%
Increase Substantially
11%
Decrease Substantially
3%
Increase Moderately
39%Stay the Same
37%
Decrease Moderately
14%
Increase Substantially
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.
All Companies B-to-B Companies
B-to-C CompaniesHybrid Companies
21Growth Team Membership™ Research.
Decrease Substantially
2%
Increase Moderately
21%
Stay the Same65%
Decrease Moderately
9%
Increase Substantially
3%
Stay the Same63%
Decrease Moderately
25%
Increase Moderately
12%
Decrease Substantially
4%
Increase Moderately
26%
Stay the Same53%
Decrease Moderately
11%
Increase Substantially
6%
Decrease Substantially
2%Increase
Moderately20%
Stay the Same67%
Decrease Moderately
8%
Increase Substantially
3%
All Companies B-to-B Companies
B-to-C CompaniesHybrid Companies
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.
22Growth Team Membership™ Research.
Decrease Substantially
1%
Increase Moderately
62%
Stay the Same15%
Decrease Moderately
5%
Increase Substantially
17%
Stay the Same25%
Decrease Moderately
12%
Increase Moderately
63%Increase
Moderately63%
Stay the Same16%
Decrease Moderately
4%
Increase Substantially
16%
Decrease Substantially
2%
Increase Moderately
60%
Stay the Same14%
Decrease Moderately
6%
Increase Substantially
18%
All Companies B-to-B Companies
B-to-C CompaniesHybrid Companies
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.
23Growth Team Membership™ Research.
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
$500 Million to$999 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
24Growth Team Membership™ Research.
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%
All Companies Below $100Million
$100 Million to$499 Million
$500 Million to$999 Million
$1 Billion to $11Billion
More than $11Billion
Marketing Budget (By Company Revenue)
N = 265
Survey Question: Please indicate your 2009 total marketing budget (all expenditures on marketing activities and general & administrative—including staff) was in the range of in US$.
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
25Growth Team Membership™ Research.
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%
All Companies Below $100Million
$100 Million to$499 Million
$500 Million to$999 Million
$1 Billion to $11Billion
More than $11Billion
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 Substantially
Decrease Moderately
Increase Moderately
Increase Substantially
Stay the Same
26Growth Team Membership™ Research.
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%
All Companies Below $100Million
$100 Million to$499 Million
$500 Million to$999 Million
$1 Billion to$11 Billion
More than $11Billion
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
Increase Substantially
Stay the Same
27Growth Team Membership™ Research.
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%
All Companies Below $100Million
$100 Million to$499 Million
$500 Million to$999 Million
$1 Billion to$11 Billion
More than $11Billion
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
Increase Substantially
Stay the Same
28Growth Team Membership™ Research.
Respondent Demographics
29Growth Team Membership™ Research.
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
30Growth Team Membership™ Research.
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).