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Boardroom Research invited client-side marketers in Hong Kong from its proprietary database to participate in an online survey which would explore the decisions made by marketers looking at a variety of areas such as: • Marketing budget and allocations• Digital and social media• Agency selection criteria• Departmental involvement on agency appointments• Agency involvement on digital strategy and social media executions• Challenges marketers face connecting with target audience• Aggregate satisfaction level for agencies appointed• Challenges marketers see agencies facing• Likelihood of marketing service categories where pitches will be called• Agency Rankings and criteria for rankings in the following categories: o Creative Advertising Serviceso Media Planning and Buying Serviceso Public Relationso Event Marketing Serviceso Direct Marketingo Digital Marketing Serviceso Brand Consulting o Market ResearchThe Executive Summary takes a brief look at some of the key issues that emerged from the research. While not exhaustive of the entire results of the study, several key themes and trends emerged which are briefly covered herein.
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2011 MARKETING TRENDS REPORT- MALAYSIA
Executive Summary
IMPORTANT NOTE: The information, data and commentary contained in this Report is under strict copyright to Boardroom Research. No part of this
report may be reproduced in any form without written permission from Boardroom Research Pte Ltd. No part of this report may be sold, given, shared or released to any third party without written permission from Boardroom Research.
2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARY
2011 Marketing Trends Report – Malaysia – Executive Summary IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released
by any means to any third party without the written permission of Boardroom Research.
Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115.
www.boardroomresearch.com 2
Methodology & Respondents Methodology
Boardroom Research invited client-side marketers in Malaysia from its proprietary database to participate in an online survey which would explore the decisions made by marketers looking at a variety of areas such as:
• Marketing budget and allocations
• Digital and social media
• Agency selection criteria
• Departmental involvement on agency appointments
• Agency involvement on digital strategy and social media executions
• Challenges marketers face connecting with target audience
• Aggregate satisfaction level for agencies appointed
• Challenges marketers see agencies facing
• Likelihood of marketing service categories where pitches will be called
• Agency Rankings and criteria for rankings in the following categories: o Creative Advertising Services o Media Planning and Buying Services o Public Relations o Event Marketing Services o Direct Marketing o Digital Marketing Services o Brand Consulting o Market Research
The Executive Summary takes a brief look at some of the key issues that emerged from the research. While not exhaustive of the entire results of the study, several key themes and trends emerged which are briefly covered herein.
Respondents
A total of 476 marketers in Malaysia took part in the survey to share their industry knowledge, providing an accurate picture of trends to come from marketers and their behaviours, as well as the most preferred agencies in various marketing disciplines. All questions were made voluntary throughout the survey; therefore base sizes will vary for each question and chart. Some of the charts you see in this executive summary contain only partial data; the full data, charts and results can be obtained through purchasing the 2011 Malaysia Marketing Trends Report.
2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARY
2011 Marketing Trends Report – Malaysia – Executive Summary
IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released by any means to any third party without the written permission of Boardroom Research.
Boardroom Research
785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115.
www.boardroomresearch.com 3
A range of industries were represented by the marketers who took part in the study. Larger groups of respondents were found to be working in the Media industry, Travel Tourism & Retail, Consumer Products, and IT & Telecommunications sectors.
Both large and small businesses made up a healthy portion of the sample. About a third of respondents (32%) hailed from smaller companies with less than 50 employees, whilst another 30% worked in large businesses with over 500 members of staff.
High-level marketing decision makers were well represented; with close to half of respondents coming from a Managerial position (47%) and over a third being VP or Director level marketers (39%). The remaining 13% were influencers at the Executive level.
Arts & Entertainment, 0%
Business Products &
Services, 5%
Consumer Products, 14%
Education & Training, 4%
Engineering/ Manufacturing, 3%
Financial Services, 5%
Government & Personal Services, 1%
IT & Telecomms, 10% Media, 35%
Medical & Healthcare,
2%
Motor Vehicles, 2%
Property & Construction, 3%
Transportation, 1%
Travel Tourism & Retail, 15% Others, 1%
Marketing Trends 2011
Industry
32%
13% 8%
18% 6%
24%
Less than 50
50-100
101-250
251-500
501-1,000
Over 1,000
Marketing Trends 2011
Company Staff Size in Malaysia
39%
47%
13% VP/Director Level
Managerial Level
Executive Level
Job Function
Marketing Trends 2011
2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARY
2011 Marketing Trends Report – Malaysia – Executive Summary IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released
by any means to any third party without the written permission of Boardroom Research.
Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115.
www.boardroomresearch.com 4
Most marketers surveyed in Malaysia had a local responsibility only for the Malaysian market (64%), although a healthy sample of those with regional and international responsibilities was still observed (37%).
Of those who indicated they had international responsibilities, the main markets that these included (with the exception of Malaysia, which 85% of these marketers covered) were Singapore, Indonesia, and Thailand.
37% 64%
Regional/ International markets
Malaysia market only
Area of Responsibility
Marketing Trends 2011
3%
10%
11%
11%
16%
17%
23%
24%
26%
30%
33%
33%
42%
43%
48%
51%
80%
None of the markets listed
Pakistan
Bangladesh
Sri Lanka
New Zealand
South Korea
Japan
India
Taiwan
Philippines
Vietnam
Australia
Hong Kong
China (PRC)
Thailand
Indonesia
Singapore
Market Coverage of Marketers with Intl. Responsibilties
Marketing Trends 2011
2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARY
2011 Marketing Trends Report – Malaysia – Executive Summary
IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released by any means to any third party without the written permission of Boardroom Research.
Boardroom Research
785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115.
www.boardroomresearch.com 5
Marketing Budgets Current budgets (2011)
Marketers were asked what the total marketing budget was for their department or area of responsibility for 2011. The most common budget bracket was found to be between one and five million MYR, with 20% of marketers indicating so. The second most common bracket was the largest option – 18% of respondents indicated their marketing budgets were over ten million MYR.
On the lower end of the scale, a good amount of marketers had budgets below MYR 150,000 (17%). A further 10% expressed that they did not have a marketing budget.
Budget increases/decreases from last year Few respondents expressed that their marketing budgets had fallen from 2010. Half of marketers indicated that their budgets had grown (50%), whilst 39% did not see a change at all. Overall, the average change of total marketing budgets from 2010 to 2011 was a 16% increase.
10%
17%
8%
5%
4%
2%
7%
20%
8%
18%
No Marketing Budget
MYR 1-MYR 150,000
MYR 150,001-MYR 300,000
MYR 300,001-MYR 450,000
MYR 450,001-MYR 600,000
MYR 600,001-MYR 750,000
MYR 750,001-MYR 1,000,000
MYR 1,000,001-MYR 5,000,000
MYR 5,000,001-MYR 10,000,000
More than MYR 10,000,000
Marketing Budget for 2011
Marketing Trends 2011
50%
11%
39% Increase
Decrease
No Change at all
Change in Total Marketing Budget: 2010 to 2011
Marketing Trends 2011
AverageChange = 16%
Increase
2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARY
2011 Marketing Trends Report – Malaysia – Executive Summary IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released
by any means to any third party without the written permission of Boardroom Research.
Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115.
www.boardroomresearch.com 6
Allocation of Budgets
Marketers were asked to indicate their budget allocations for 2011 and predict how their allocation would look in 2012 and 2016 (2012 and 2016 breakdowns are included in the full report). Respondents first allocated their budgets across various marketing channels, and then followed by allocating their advertising budgets between Traditional and Non-Traditional media. The final step was asking respondents to break down their advertising budget allocation for Non-Traditional media even further by segregating it into the various Non-Traditional media platforms.
Looking only at budget allocations for 2011, most expenditure goes to Advertising and Events; accounting for 63% of marketers’ budgets when combined. The overall breakdown of a business’ marketing budget starts with over a third going to Advertising (39%), about a quarter going to Events (24%), a further 13% going to Public Relations, 9% to Market Research and another 15% accounting for other areas.
Marketers with budgets have indicated that on average, the majority of advertising budgets in 2011 are still going towards Traditional media (61% to be exact). The shift where Non-Traditional media takes over as receiving the most funding is not as soon as one might have thought.
15%
9%
13%
24%
39%
2011
Advertising
Events
Public Relations
Market Research
Other areas
Allocation of Marketing Budgets in 2011
Marketing Trends 2011
39%
61%
2011
Chart Title
Traditional Media (Print, TV, Radio, Out-of-Home)
Non-Traditional Media (Digital, Online, Email, Mobile, Social Media, etc.)
Allocation of Advertising Budgets in 2011
Marketing Trends 2011
2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARY
2011 Marketing Trends Report – Malaysia – Executive Summary
IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released by any means to any third party without the written permission of Boardroom Research.
Boardroom Research
785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115.
www.boardroomresearch.com 7
In Malaysia, Social Media is one of the top digital platforms for receiving the highest budget investment. It is the most invested in platform in 2011, with Online Display almost on par. Search is the third most invested in, whilst Mobile is the least. Spending and allocation towards Mobile and Social is predicted by marketers to grow in 2012 and 2016.
18%
25%
13%
24%
20%
2011
Chart Title
Search Marketing/SEO
Online display
Mobile
Social Media
Other areas of non-traditional media
Allocation of Advertising Budgets for Non-Traditional Media in 2011
Marketing Trends 2011
2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARY
2011 Marketing Trends Report – Malaysia – Executive Summary IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released
by any means to any third party without the written permission of Boardroom Research.
Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115.
www.boardroomresearch.com 8
Agency Selection Criteria used for selecting an agency
This section looks at what marketers value most in an agency and what it is that will lure them to one agency over another when pitches and proposals have been made. Agencies may be interested to take the following findings into account before formulating their pitches.
The most important thing an agency needs to convey to a potential client is that they understand the client’s business needs & objectives above anything else. This is followed by creativity – clients want to stand out in a way that grabs their audience and gives them a nice return on their investment – undoubtedly, regarded as an important factor to be delivered by an agency. Cost and industry knowledge tied as the third most important criteria taken into consideration when selecting an agency.
13%
13%
18%
19%
Cost & remuneration
Agency understanding of the industry I am in
Creativity & ideas
Agency understanding my business needs and objectives
Top 3 Criteria taken into Consideration when Selecting an Agency
Marketing Trends 2011. Nb.: Score is a weighted calculation: Items ranked first are valued higher than the following ranks, the score is the sum of all weighred rank counts.
2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARY
2011 Marketing Trends Report – Malaysia – Executive Summary
IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released by any means to any third party without the written permission of Boardroom Research.
Boardroom Research
785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115.
www.boardroomresearch.com 9
Marketing Trends 2011
Person Making Final Decision on Appointment of Agency
The decision making process When it comes to appointing an agency for a marketing campaign, several agencies will normally be called upon for a pitch and at the end of the day; only one agency will make the cut. So who is directly involved in making this all important decision on the client side? Simple: The CEO or MD and marketing department.
The vast majority (81%) indicated that their heads of business have the most influence in the decision making process of choosing an agency. They are closely followed by the marketing team of the company as the second most influential unit, almost on par with the CEO/MD. There seems to be high a high level of collaboration between the two parties. Surprisingly, Procurement departments have little say in this process.
Drilling down even further, respondents were then asked who makes that ultimate final decision. It seems it lies with the CEO or MD for the majority of businesses – a whopping 63%. Marketing department heads have the final say among roughly a quarter of businesses (26%).
11%
17%
21%
21%
75%
81%
Other
Procurement/Purchasing
Sales
Finance
Marketing
CEO/MD
Departments/People Directly Involved in Appointment of Agency
Marketing Trends 2011
63%
26% Head of Procurement, 2% Head of Finance, 1%
CEO/MD
Head of Marketing
Other, 7%
2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARY
2011 Marketing Trends Report – Malaysia – Executive Summary IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released
by any means to any third party without the written permission of Boardroom Research.
Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115.
www.boardroomresearch.com 10
The Digital Dilemma Digital strategy & execution
Overall, most businesses in Malaysia do not have an agency appointed to handle their digital strategy and executions (57%). Since this question was only answered by respondents who have marketing budgets; when recalculating the budgets reported on earlier to reflect only those with funds, 19% of these marketers have budgets under MYR 150,000. Considering that on average, only 15% of a total marketing budget will go to
non- traditional advertising, as well as the fact that a budget below this figure can be anywhere between MYR 1and MYR 150,000, it is almost safe to assume that this bracket of marketers cannot afford the services of an agency or will be looking to “squeeze a dollar out of a dime”. Assuming that budgets above MYR 150,000 can afford agency services, we are left with 38% of marketers with generous budgets (subjective of course) who do not have an agency appointed to handle their digital activities. There definitely still are opportunities for agencies to convert marketers who do not have any digital strategies in place or are formulating them in-house.
For those who have engaged an agency for digital marketing, about half (49%) are using Creative agencies and not far behind, 44% are using Media Planning & Buying agencies, followed by those that specialise in Digital (43%).
Another thing that can be learnt from these multiple-response answers is that on average, two agency types are appointed per marketer.
43% 57% Yes
No
Incidence of Having Agency Appointed to Handle Digital Strategy & Executions
Marketing Trends 2011
5%
9%
12%
14%
43%
44%
49%
Other
Direct Marketing/Loyalty Marketing CRM
Brand Consultancy
Public Relations
Digital Agency
Media Planning and Buying
Creative/Full-Service
Appointed Agencies Handling Marketers' Digital Strategy & Executions
Marketing Trends 2011
2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARY
2011 Marketing Trends Report – Malaysia – Executive Summary
IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released by any means to any third party without the written permission of Boardroom Research.
Boardroom Research
785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115.
www.boardroomresearch.com 11
Attitudes toward Digital service offerings Respondents were given two statements regarding how they thought Digital services should be offered by agencies and were asked which they agreed with most. Overall, the slight majority of marketers (52%) are of the opinion that Digital services are best offered by specialist agencies versus full-service creative agencies. It seems Malaysian marketers are sitting on the fence on this one.
Engagement and execution of Social Media marketing
Social Media, one of the driving forces behind the growth of digital marketing, of course did not escape this study. With the majority of marketers engaging in it (74%), it is a worthy topic for exploration.
The vast majority of marketers with marketing budgets develop and execute their Social strategies in-house (73%), whilst only about a quarter have an agency appointed to do it on their behalf.
73%
27% Develop and execute strategy in-house
Agency develops and executes strategy
Approach towards Social Media Marketing
Marketing Trends 2011
48% 52% Digital is something that creative/full-service agencies should be offering in their spectrum of services
Digital is something that requires a specialist agency that's solely focused on digital strategy and executions
How Marketers think Digital is best offered
Marketing Trends 2011
74%
26% Yes
No
Marketers Currently Engaging Social Media
Marketing Trends 2011
2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARY
2011 Marketing Trends Report – Malaysia – Executive Summary IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released
by any means to any third party without the written permission of Boardroom Research.
Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115.
www.boardroomresearch.com 12
“Anti-Socialists” As identified earlier, about a quarter of marketers who have a marketing budget do not engage in any Social Media marketing (26%). The main reasons for this, as expressed by those marketers, foremost are that they do not have the capacity to do this in-house and that they do not know where to begin to develop a Social marketing strategy. The third reason is that these “anti-socialists” don’t think that Social Media can reach their target audience. Agencies can use these reasons to their advantage, approaching marketers and explaining that if they do not have the capacity in-house then why not outsource them? And if they do not believe they can reach their target audience with Social Media, agencies are in the best position to explain how they can.
Social Media marketing
When asking marketers what type of agency they have appointed to handle their Social activities, interestingly, PR agencies were among the bottom two. With Social Media being a very ‘wordy’ platform, it may come as a surprise that PR agencies were not among the top appointed agency types by client marketers.
23%
24%
33%
Believe social media marketing doesn't hit my target audience
Don't know where to begin to develop a social media marketing strategy
Don't have the capacity to do it in-house
Top 3 Reasons for Not Engaging in Social Media Marketing
Marketing Trends 2011
2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARY
2011 Marketing Trends Report – Malaysia – Executive Summary
IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released by any means to any third party without the written permission of Boardroom Research.
Boardroom Research
785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115.
www.boardroomresearch.com 13
The (Dis)Connection Challenges marketers face
Respondents were asked what the top three challenges were in connecting with their target audience. The vast majority expressed that engaging with their audience and getting them to respond was the biggest challenge (84%). This very concern is probably a reason why so many marketers have turned to Social Media, as it is one of the most effective channels in creating a conversation with customers. Not only are customers able to respond directly to brands, but they are also able to interact with each other as customers about the brand and the campaigns that get fed to them. Other concerns included limited budgets, a lack of consumer insights and understanding the target audience.
53%
57%
84%
Lack of consumer insights and reliable research data
Limited budget
Engaging my target audience; getting them to respond
Top 3 Challenges Marketers Face Connecting with Target Audience
Marketing Trends 2011
2011 MARKETING TRENDS REPORT – MALAYSIA – EXECUTIVE SUMMARY
2011 Marketing Trends Report – Malaysia – Executive Summary IMPORTANT NOTE: None of the information contained in this Report may be reproduced in any form or released
by any means to any third party without the written permission of Boardroom Research.
Boardroom Research 785A North Bridge Road, Singapore 198753. Tel: +65 6294 1933 Fax: +65 6297 6115.
www.boardroomresearch.com 14
For more information and report sales, please contact Curtis Bergh at the following: P: +65-6294-1933 E: [email protected] Report Pricing: 2011 Marketing Trends Report – Malaysia: $5,000 SGD *price excludes GST applicable upon billing