Segmentation for a Customer-Centric Approach

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americas

Segmentation for a Customer-Centric Approach 2012

marketing priorities survey results

TWEET ABOUT THE SURVEYS

#2012priorities Co-Sponsor

The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved.

1


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


2


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

SECTION 2:

Marketing Resource Trends

Budgets

Resources

Resource Allocation

Marketing typically has an annual budget under $1 million

2012 budgets will increase moderately and staffing levels will remain constant

Marketers are allocating equal resources to their traditional and online communications and content development

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 employing campaigns by vertical

Marketing’s priority is developing segment‑specific campaigns


Growth Team Membership™ research.



4

Survey Purpose and Respondents

233

survey respondents

Research Objective To understand the most pressing challenges shaping marketing executives’ 2012 planning

Methodology Web-based survey platform


Survey Population

Co-Sponsor

Manager-level and above marketing executives from companies throughout North and South America Growth Team Membership™ research.



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


twitter.com/Frost_GTM

slideshare.net/FrostandSullivan Growth Team Membership™ research.



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.



2012 survey results

7

INTRO

SECTION

1

Key Marketing Challenges

SECTION

2

SECTION

3

SECTION

4




2012 survey results Section 1

8

Top Five Key Marketing Challenges

Challenge 1

Developing a compelling value proposition (22%)

Challenge 2

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

Challenge 3

Improving sales and marketing integration (12%)

Challenge 4

Prioritizing markets and market segments (12%)

Challenge 5

Measuring marketing ROI (11%)

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?





9

B-to-B marketers’ challenges are focused on differentiation, while B-to-C marketers are occupied with supporting the sales force effectively Top Five Marketing Challenges (By Business Model)

B-to-B

B-to-C

Challenge 1


Developing an effective channel strategy (22%)

Challenge 2

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


Challenge 3

Prioritizing markets and market segments (12%)

Improving sales and marketing integration (21%)

Challenge 4

Measuring marketing ROI (13%)

Driving sales usage of marketing collateral, tools, and resources (17%)

Challenge 5

Cultivating brand attributes to increase brand differentiation (10%)

Identifying and qualifying sales-ready leads (12%)

(14%)

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.




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 (29%)

Challenge 2

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


Challenge 3

Improving sales and marketing integration

Strategic Alignment: Insufficient senior management support (24%)

Challenge 4

Prioritizing markets and market segments


Challenge 5

Measuring marketing ROI

Process: Ineffective process (44%)

SURVEY QUESTION:

Please indicate the root cause—staff, process, technology/systems, or strategic alignment—of your top five marketing challenges.




2012 survey results

11

INTRO

SECTION

1

SECTION

2

Marketing Resource Trends

SECTION

3

SECTION

4





12

Marketing departments in B-to-C companies are likely to have larger budgets 2012 Marketing Budgets (By Business Model)

50% 42% 40% 40%

F 34%

34% 27%

30% 24%

F The red percentages are for all respondents.

20%

13% 10%

8%

8% 10%

Below $1 Million

$1 Million to $2.99 Million


All Companies

SURVEY QUESTION:

9%

F

F

6% 3%

0%

13%

10%


B-to-B Companies

5%

F

6%


8%

F

$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)?





13

B-to-C companies allocate three times more to their marketing budget (as a percentage of revenue) than B-to-B companies Percent of Revenue Dedicated to Marketing Budget (By Business Model)

0.50%

0.25% 0.18%

0.09% 0.06%

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?




14


B-to-C marketing departments are more likely to allocate resources to training and channel partner programs 40%

Marketing Resource Allocations (By Business Model)

40% 35%

F 30%

20%

20%

10% 12% 10%

10%

F

10%

10%

10%

10%

F

10% 10% 5%

5%

5% 0%

0%

0% Personnel/ Staffing

F

Marketing Marketing Channel Partner Communications: Communications: Programs Traditional Media Online/Digital Media

F

5%

2% 2%

5%

5% 0%

F

Marketing Automation Platform

All Companies

SURVEY QUESTION:

F

0%

Customer Content Relationship Development Management (white papers, (CRM) Software brochures, social and Maintenance media, and trade show support)

B-to-B Companies

F

0%

Knowledge Management Systems

1% 0% F

Training

5% 0% 0%

F

Other

B-to-C Companies

How have you allocated your 2012 marketing budget across the above activities (allocation must total 100%)?





15

The majority of marketers expect staffing levels to stay the same in 2012 Marketing Staffing Changes (By Business Model)

All Companies

B-to-B Companies

Decrease Substantially 1% 3% Increase Substantially Decrease Moderately 5%

39% Stay the Same

Decrease Moderately 3% Increase Substantially 4%

Increase Moderately

42% Stay the Same

52%

Increase Moderately

51%

B-to-C Companies Decrease Substantially Increase Substantially Decrease Moderately 4% 4% 7% 27%

Increase Moderately

58% Stay the Same

SURVEY QUESTION:

In comparison to 2011, your 2012 marketing staffing will…





16

Marketing foresees a moderate increase in budgets for 2012 Marketing Budget Changes (By Business Model)

All Companies Decrease Substantially 2% Decrease Moderately 15%

Stay the Same

31%

B-to-B Companies Decrease Substantially 2%

Increase Substantially

9%

Decrease Moderately

8%

Increase Substantially

14%

44%

Increase Moderately

Stay the Same

29%

46%

Increase Moderately

B-to-C Companies Decrease Substantially 3% 3% Increase Substantially Decrease Moderately 17%

40% 37%

Increase Moderately

Stay the Same

SURVEY QUESTION:

In comparison to 2011, your 2012 marketing budget will…





17

B-to-B and B-to-C companies report similar levels of performance and effectiveness Marketing Effectiveness (By Business Model)

All Companies Exceptional

Exceptional

Below Average 9%

Above Average

B-to-B Companies

13%

Below Average 11%

38% 40%

Above Average

Average

39%

11%

39%

Average

B-to-C Companies Exceptional 3% Below Average 17%

Above Average

35% 45%

Average

SURVEY QUESTION:

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




2012 survey results

18

INTRO

SECTION

1

SECTION

2

SECTION

3

Special Interest Topic: Demand Generation

SECTION

4





19

The majority of B-to-B companies are satisfied with their ability to generate demand Demand Generation Effectiveness (By Business Model)

All Companies

B-to-B Companies

Exceptional

Below Average

4%

Exceptional

Below Average

18%

22%

Above Average

4%

26%

28%

Average

50%

48% Above Average Average

B-to-C Companies Exceptional 3% Above Average 17% 35%

Below Average

45%

Average SURVEY QUESTION:

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





20

Social media and mobile marketing tactics are identified as respondents’ weakest demand generation capabilities Demand Generation Activities Effectiveness (All Companies) 100%

7%

3%

3%

16%

18%

20%

3% 20%

2%

4% 12%

7%

3%

7%

12%

20%

18% 26%

24%

29% 46% 50%

43%

50%

46%

50% 33% 43%

44%

18%

23%

37%

24%

27%

22%

23%

33%

24%

18% 0%

6%

8%

7%

8%

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

SURVEY QUESTION:

Below Average

Average

Above Average

2% Leverage customer segmentation

5% 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?





21

B-to-B companies are uncertain about their ability to use mobile marketing tactics Demand Generation Activities Effectiveness (B-to-B Companies)

100%

7%

4%

4%

4%

2%

5%

6%

10% 21%

19%

17%

4%

8%

13%

24%

18% 18%

27%

25%

30%

50%

39%

44%

50%

48%

31%

52% 41%

45%

31%

23%

24%

20%

23%

39%

20%

21% 0%

7%

7%

7%

8%

6%


SURVEY QUESTION:

Below Average

Average

Above Average

22%

20% 2% Leverage customer segmentation

4% Generate new customer segments

Best-in-Class






22

B-to-C marketers identify social media tactics as their largest area for improvement Demand Generation Activities Effectiveness (B-to-C Companies)

100%

4% 7%

12%

16%

8%

19%

20%

32%

4%

20%

20%

22%

53%

27% 58%

48%

50%

40%

42%

48%

40% 58%

38%

39% 32% 31% 8% 0%

4%

20%

8%

16% 8%

15%

8%


SURVEY QUESTION:

Below Average

Average

Above Average

36%

35%

4% Leverage customer segmentation

Generate new customer segments

Best-in-Class






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 (62%)

B-to-B Companies Developing segment-specific campaigns (63%)

Identifying new segments (69%)

Refining the value proposition (63%)


Reevaluating target segments (57%)


Developing qualification criteria collaboratively with Sales (56%)

Identifying new segments (54%)

Developing qualification criteria collaboratively with Sales (53%)

SURVEY QUESTION:

B-to-C Companies

Improving lead cleansing (50%) Enhancing contact database (50%)

Creating/refining social media tactics (40%)

Developing segment-specific campaigns (58%)



Creating/refining social media tactics (38%)

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





24

B-to-C companies rely less on email campaigns and more on virtual events, in comparison to their peers in B-to-B companies Media Mix for Demand Generation Activities (By Business Model)

All Companies

B-to-B Companies

B-to-C Companies

20%

20%

10%

5%

5%

5%

25%

25%

20%

4%

2%

5%

10%

10%

5%

Email

Social Media

Live Events

Virtual 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%)?




2012 survey results

25

INTRO

SECTION

1

SECTION

2

SECTION

3

SECTION

4

Respondent Demographics




26


Respondent Demographics Enterprise Type

Business Model

Venture Capital Hybrid 3% 5%

B-to-C Company (Indirect)

The majority of the respondents come from B-to-B companies.

21% 45% Private

B-to-C Company (Direct)

Public

47%

5% 74% B-to-B Company

The majority of the respondents come from privately held companies.

N = 233

N = 233

Company Revenue 40% 32%

20%

29%

15%

15% 9%

0%

SURVEY QUESTION:

N = 227 Below $100 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.





27

Respondent Demographics: Top Five Participating Industries

Electronics and Security

21%

Chemicals, Materials, and Food

22%

24%

Energy and Power Systems

29%

Information and Communication Technologies

30%

Healthcare and Life Sciences

0%

SURVEY QUESTION:

20%

40%

N = 233

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

