executives to address challenges within their companies. Corporate. Strategy ... Creating Effective Demand Generation Us
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europe
Segmentation and the Value Proposition 2012
marketing priorities survey results
TWEET ABOUT THE SURVEYS
#2012priorities Co-Sponsor
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growth team m e m b e r s h i p™
2012 survey results
CONTENTS Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 INTRO
Survey Purpose and Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4 What is the Growth Team Membership™ . . . . . . . . . . . . . . . . . . . . . . . . .5 Marketing Overarching Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
SECTION
1
SECTION
2
SECTION
3
SECTION
4
Key Marketing Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7
Marketing Resource Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Special Interest Topic: Demand Generation . . . . . . . . . . . . . . . . . . . . . . . 18
Respondent Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
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2
growth team m e m b e r s h i p™
2012 survey results Introduction
3
Marketing Survey Executive Summary SECTION 1:
Key Marketing Challenges
Key Internal Challenge
Key Internal Challenge Root Cause
Developing a value proposition
Insufficient personnel and process
SECTION 2:
Marketing Resource Trends
Budgets
Resources
Resource Allocation
Marketing 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
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
SECTION 3:
Demand Generation
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Growth Team Membership™ research.
growth team m e m b e r s h i p™
2012 survey results Introduction
4
Survey Purpose and Respondents
146
survey respondents
Research Objective To understand the most pressing challenges shaping marketing executives’ 2012 planning
Methodology Web-based survey platform
The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved.
Survey Population
Co-Sponsor
Manager-level and above marketing executives from companies throughout Europe
Growth Team Membership™ research.
growth team m e m b e r s h i p™
2012 survey results Introduction
5
What is the Growth Team Membership™? GTM is a subscription program that supports executives within the functions that report to the CEO CEO’s Growth Team™
GTM: Creating Client Value
GTM’s case-based best practices help executives:
R&D/ Innovation Sales Leadership
Corporate Strategy
Marketing Marketing
CEO
Corporate Development
Market Research
Investors/ Finance
GTM provides best practices, events, and services that enable executives to address challenges within their companies
Competitive Intelligence
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
[email protected]
www.gtm.frost.com
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twitter.com/Frost_GTM
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growth team m e m b e r s h i p™
2012 survey results Introduction
6
What’s Keeping Marketing Executives Up at Night in 2012? Marketing Overarching Challenges
Sample Solutions from GTM
Developing a Value Proposition Marketing 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 Media Employees 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.
Contact us at
[email protected]. The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved.
Growth Team Membership™ research.
growth team m e m b e r s h i p™
2012 survey results
7
INTRO
SECTION
1
Key Marketing Challenges
SECTION
2
SECTION
3
SECTION
4
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Growth Team Membership™ research.
growth team m e m b e r s h i p™
2012 survey results Section 1
8
Top Five Key Marketing Challenges
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%)
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.
SURVEY QUESTION:
What are the top five functional challenges shaping your marketing strategy?
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Growth Team Membership™ research.
growth team m e m b e r s h i p™
2012 survey results Section 1
9
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 2
Understanding changing customer preferences and needs/incorporating voice of the customer
Improving sales and marketing integration (19%)
(16%)
Challenge 3
Prioritizing markets and market segments (18%)
Challenge 4
Driving sales usage of marketing collateral, tools, and resources (16%)
Challenge 5
Improving sales and marketing integration (16%)
Coordinating social media and traditional marketing activities (20%)
Understanding changing customer preferences and needs/incorporating voice of the customer (13%)
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. The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved.
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growth team m e m b e r s h i p™
2012 survey results Section 1
10
Understaffing is the predominant cause of Marketing’s challenges Top Five Marketing Challenges
Root Cause of Top Five Marketing Challenges
Challenge 1
Developing a compelling value proposition
Staff: Limited resources and Process: Ineffective process (24%)
Challenge 2
Understanding 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%)
SURVEY QUESTION:
Please indicate the root cause—staff, process, technology/systems, or strategic alignment—of your top five marketing challenges.
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growth team m e m b e r s h i p™
2012 survey results
11
INTRO
SECTION
1
SECTION
2
Marketing Resource Trends
SECTION
3
SECTION
4
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Growth Team Membership™ research.
growth team m e m b e r s h i p™
2012 survey results Section 2
12
Marketing departments in B-to-B companies are likely to have larger budgets 2012 Marketing Budgets (By Business Model)
68%
70%
60% 49%
50%
F 41%
40%
30%
26% 19%
20%
18%
F
11%
10%
8% 5%
0%
Below $1 Million
$1 Million to $2.99 Million
F
8% 6%
F $3 Million to $4.99 Million
All Companies
SURVEY QUESTION:
The red percentages are for all respondents.
6%
F
0%
$5 Million to $9.99 Million
B-to-B Companies
7% 9%
11%
8%
F 0%
$10 Million to $19.99 Million
$20 Million or more
B-to-C Companies
hich of the above ranges (in $USD) best describes your 2012 total marketing budget (all expenditures on marketing activities and W general & administrative—including staff)?
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growth team m e m b e r s h i p™
2012 survey results Section 2
13
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)
0.40%
0.23% 0.20% 0.15% 0.10%
0.00%
SURVEY QUESTION:
All Companies
B-to-B Companies
B-to-C Companies
What is your 2012 total marketing budget (from the previous question) as a percentage of your company’s total 2011 revenue?
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14
2012 survey results Section 2
B-to-C companies are more likely to embrace online marketing over traditional media Marketing Resource Allocations (By Business Model) 30%
30%
30%
F 25%
20%
15%
15%
F 10% 10%
10%
10%
10%
10% 10%
9% F
F
5%
5% 5% 2%
4% 2%
1% F 0%
Personnel/ Staffing
Marketing Marketing Channel Partner Communications: Communications: Programs Traditional Media Online/Digital Media
F
SURVEY QUESTION:
2%
Marketing Automation Platform
All Companies
5%
F
5% 3%
0% 0%
Customer Content Relationship Development Management (white papers, (CRM) Software brochures, social and Maintenance media, and trade show support)
B-to-B Companies
F
5% 0%
1%
F
0%
Knowledge Management Systems
Training
F
0%
Other
B-to-C Companies
How have you allocated your 2012 marketing budget across the above activities (allocation must total 100%)?
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Growth Team Membership™ research.
growth team m e m b e r s h i p™
2012 survey results Section 2
15
Marketing staffing levels are expected to remain constant in 2012 Marketing Staffing Changes (By Business Model)
All Companies Decrease Substantially 3%
B-to-B Companies Decrease Substantially 2%
Increase Substantially 5%
Decrease Moderately
6%
Decrease Moderately
16% 30%
Increase Substantially
19%
Increase Moderately
28%
46%
Increase Moderately
45%
Stay the Same
Stay the Same
B-to-C Companies Decrease Substantially 5% Decrease Moderately 10%
Increase Moderately 35%
50% Stay the Same
SURVEY QUESTION:
In comparison to 2011, your 2012 marketing staffing will…
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Growth Team Membership™ research.
growth team m e m b e r s h i p™
2012 survey results Section 2
16
Marketing foresees stagnant budgets in 2012 Marketing Budget Changes (By Business Model)
All Companies Decrease Substantially
B-to-B Companies 4%
5% 6%
Decrease Moderately
2% Increase Substantially
Decrease Substantially
Increase Substantially
Decrease Moderately
16%
19% 31%
34%
Increase Moderately
42%
Increase Moderately
41% Stay the Same
Stay the Same
B-to-C Companies Decrease Substantially 5%
Decrease Moderately 10%
Increase Substantially 15%
25%
Increase Moderately
45% Stay the Same
SURVEY QUESTION:
In comparison to 2011, your 2012 marketing budget will…
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Growth Team Membership™ research.
growth team m e m b e r s h i p™
2012 survey results Section 2
17
Marketers indicate their effectiveness is “Average” in comparison to their peers Marketing Effectiveness (By Business Model)
All Companies Exceptional
B-to-B Companies Exceptional 4%
Below Average
4%
14%
15% Above Average
Below Average
36%
Above Average 45%
37% 45%
Average
Average
B-to-C Companies Exceptional 5%
Below Average 15%
Above Average
35% 45% Average
SURVEY QUESTION:
How would you rate the performance or effectiveness of your function compared to others within your industry?
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2012 survey results
18
INTRO
SECTION
1
SECTION
2
SECTION
3
Special Interest Topic: Demand Generation
SECTION
4
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Growth Team Membership™ research.
growth team m e m b e r s h i p™
2012 survey results Section 3
19
Marketers tend to consider their demand generation capabilities as “Average” in comparison to their peers Demand Generation Effectiveness (By Business Model)
All Companies
B-to-B Companies
Exceptional 2%
Below Average
Below Average Above Average
16%
Above Average
15% 30%
27%
55%
55%
Average
Average
B-to-C Companies Exceptional Below Average
6% 17% Above Average
22%
55% Average
SURVEY QUESTION:
How would you rate the effectiveness of your marketing department’s demand generation activities (driving awareness and consideration)?
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growth team m e m b e r s h i p™
2012 survey results Section 3
20
The majority of respondents indicate that mobile marketing is their weakest demand generation capability Demand Generation Activities Effectiveness (All Companies)
100%
2% 23%
28%
5%
18% 22%
42% 50%
5%
50%
2%
2%
5% 17%
31%
23%
42% 44%
20%
25%
42%
55%
47%
52%
52%
27% 27%
25%
22% 22%
23%
19% 0%
36%
1%
8%
3%
11%
4%
Develop lead Clean and qualify Allocate spend Identify and Integrate social Integrate mobile Employ qualification leads across demand integrate media tactics marketing tactics campaigns criteria with generation appropriate customized by Sales platforms content for each vertical stage of the buying cycle Do Not Use
SURVEY QUESTION:
Below Average
Average
Above Average
15% 3% Leverage customer segmentation
Generate new customer segments
Best-in-Class
How would you rate the effectiveness of your marketing department’s ability to execute the above demand generation activities?
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Growth Team Membership™ research.
growth team m e m b e r s h i p™
2012 survey results Section 3
21
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)
100%
2% 22%
4%
2%
3%
7%
18%
20%
30%
29%
26%
20%
29% 42%
47% 50%
51%
41%
37%
48%
38%
56%
48% 42%
27% 22% 0%
24%
28%
29%
32%
20%
20% 4%
2%
9%
4%
Develop lead Clean and qualify Allocate spend Identify and Integrate social Integrate mobile Employ qualification leads across demand integrate media tactics marketing tactics campaigns criteria with generation appropriate customized by Sales platforms content for each vertical stage of the buying cycle Do Not Use
SURVEY QUESTION:
Below Average
Average
Above Average
13% 4% Leverage customer segmentation
Generate new customer segments
Best-in-Class
How would you rate the effectiveness of your marketing department’s ability to execute the above demand generation activities?
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growth team m e m b e r s h i p™
2012 survey results Section 3
22
Integrating mobile marketing tactics is B-to-C respondents’ largest area for improvement Demand Generation Activities Effectiveness (B-to-C Companies)
100%
5% 21%
26%
21%
11% 6%
6%
11%
5% 16%
21%
17%
45% 32% 50%
48%
63%
61%
52%
44%
74% 53%
26% 44% 21% 11% 0%
16%
33%
16%
15% 5%
5%
16%
SURVEY QUESTION:
26%
6%
Develop lead Clean and qualify Allocate spend Identify and Integrate social Integrate mobile Employ qualification leads across demand integrate media tactics marketing tactics campaigns criteria with generation appropriate customized by Sales platforms content for each vertical stage of the buying cycle Do Not Use
21%
Below Average
Average
Above Average
Leverage customer segmentation
Generate new customer segments
Best-in-Class
How would you rate the effectiveness of your marketing department’s ability to execute the above demand generation activities?
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Growth Team Membership™ research.
growth team m e m b e r s h i p™
2012 survey results Section 3
23
Marketing is focused on activities involving segmentation and the value proposition Demand Generation Activities for 2012 (By Business Model)
All Companies Developing segment-specific campaigns (64%)
Developing qualification criteria collaboratively with Sales (61%)
B-to-B Companies
Refining the value proposition (64%)
Developing segment-specific campaigns (62%)
B-to-C Companies Developing segment-specific campaigns (72%)
Developing qualification criteria collaboratively with Sales (67%)
Refining the value proposition (58%)
Developing qualification criteria collaboratively with Sales (60%)
Identifying new segments (61%)
Identifying new segments (55%)
Identifying new segments (53%)
Enhancing contact database (56%)
Reevaluating target segments (50%)
Enhancing contact database (40%)
Improving lead cleansing (44%)
SURVEY QUESTION:
Reevaluating target segments (61%)
Which of the above demand generation activities does your marketing department intend to focus on in 2012 (check all that apply)?
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growth team m e m b e r s h i p™
2012 survey results Section 3
24
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)
All Companies
B-to-B Companies
B-to-C Companies
20%
20%
25%
5%
5%
5%
25%
25%
10%
10%
15%
10%
Email
Social Media
Live Events
Internet (search engine optimization)
SURVEY QUESTION:
What is the percentage mix of media tactics (listed above) associated with your demand generation activities (total must equal 100%)?
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growth team m e m b e r s h i p™
2012 survey results
25
INTRO
SECTION
1
SECTION
2
SECTION
3
SECTION
4
Respondent Demographics
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26
2012 survey results Section 4
Respondent Demographics Enterprise Type Venture Capital Hybrid 4% 6%
Business Model The majority of the respondents come from Public companies.
The majority of the respondents come from B-to-B companies.
B-to-C Company (Indirect) 23%
Private
B-to-C Company (Direct)
29% 60%
Public
6% 71% B-to-B Company
N = 144
N = 144
Company Revenue 40% 29% 24% 20%
20%
18% 9%
0%
SURVEY QUESTION:
N = 143 Below $100 Million
$100 Million to $499.99 Million
$500 Million to $999.99 Million
$1 Billion to $11 Billion
More than $11 Billion
Please indicate the type of enterprise, business model, and revenue that best represents your company.
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growth team m e m b e r s h i p™
2012 survey results Section 4
27
Respondent Demographics: Top Five Participating Industries
Automotive and Transportation
22%
23%
Environmental and Building Technologies
25%
Chemicals, Materials, and Food
29%
Healthcare and Life Sciences
31%
Energy and Power Systems
0%
SURVEY QUESTION:
20%
40%
N = 144
Please indicate which region you are located in and which industry categories best describe your company (check all that apply).
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Growth Team Membership™ research.