Australian Marketing Institute

Transcription

1 1 Australian Marketing Institute Senior Marketer Monitor 2013 February 2013 Enquiries: Mark Crowe, CEO AMI, Adrian Morgan, Research Director, Colmar Brunton

2 2 Background & Methodology The Australian Marketing Institute (AMI) commissioned Colmar Brunton to conduct a study of Australia's senior marketing professionals. The aim of the study is to understand senior marketer sentiment, priorities, perspectives and challenges in the current marketing environment. The first online survey was administered in to a selection of Australian Marketing Institute members and Colmar Brunton clients who were senior marketing professionals. The study was repeated in, and. The fieldwork was conducted in November and December and included responses from n=259 senior marketers.

3 3 Key Findings Overall, the results of the Senior Marketer Monitor in are mixed for the marketing profession. Given continued financial uncertainty, it is encouraging that marketing budgets, overall, are budgeted to increase albeit only 1%. Marketers are positive about the role of marketing in Australia, and in particular it is smaller organisations that are growing fastest and most positive. Marketing Budgets One third () are expecting their marketing budget to increase in 2013 and are expecting it to remain the same. On a total level, senior marketers have indicated a total marketing budget increase of about 1% in Encouragingly, of the organisations who are expecting an increase, an average budget increase of 16% is expected. Organisations with a turnover of under $150 million were more likely to expect an increase in their budget for Marketing Priorities and Challenges The top marketing priorities include measures to increase sales, maximising efficiency of marketing expenditure, and focusing on more profitable market segments. Overall, there was slightly more emphasis on increasing sales and less focus on efficiency and brand building compared with previous years. Shifts in Communications Channels The use of social networking and Web 2.0 as a communication channel continues to grow, but the growth in this channel is less pronounced than in. The popularity of Viral marketing has decreased somewhat with less intending to use this channel more, compared with previous years. Role and Influence of Marketing Similar to, most senior marketers (76%) feel positive about the role and influence of marketing in Australia.

4 4 One third () expect their marketing budget to increase in 2013, which is fewer than a year ago. In total, expect a decrease in 2013 and expect their budget to stay the same. Marketing Budget Changes 44% Increase Decrease 21% Stay exactly the same 0% 5% 10% 15% 20% 25% 30% 45% 50% Q3A. In 2013, how do you expect your marketing budget to change from? Do you expect it to...?

5 5 Marketing budgets will grow by only 1% in 2013, following growth in of 3.4%. In 2013, of marketers expect their marketing budget to increase, with these organisations anticipating an average increase of 16%. expect a decrease in 2013, and for these they anticipate an average decrease of 16% Budget 2008 Budget (indexed at 100) Budget Budget Budget Budget 2013 Budget Q3A. In, how do you expect your marketing budget to change from 2013? Do you expect it to? Q3B. Can you specify the % that it is likely to increase? Q3C. Can you specify the % that it is likely to decrease?

6 6 Nearly half of organisations with employees again expect to increase marketing budgets in These smaller organisations are more positive than the mid sized and larger organisations. Marketing Budget Changes - Employee Size Increase Decrease Stay the same Total 44% 21% Total Total Employees 52% 14% Employees 48% 14% Employees 47% 18% 101-1,000 Employees 46% 19% 101-1,000 Employees 27% 101-1,000 Employees 30% 1,000+ Employees 29% 1,000+ Employees 29% 30% 41% 1,000+ Employees 21% 41% 0% 10% 20% 30% 50% 60% 70% 80% 90% 100% Q3A. In, how do you expect your marketing budget to change from? Do you expect it to? Q3B. Can you specify the % that it is likely to increase? Q3C. Can you specify the % that it is likely to decrease?

7 7 Far fewer larger organisations are planning to increase marketing budgets in 2013, compared to a year ago. Marketing Budget Changes - Turnover Increase Decrease Stay the same Total 44% 21% Total Total $0-$30m Turnover 57% 15% $0-$30m Turnover 58% 11% $0-$30m Turnover 42% 16% 42% $31-150m Turnover 65% 12% 23% $31-150m Turnover 32% 37% $31-150m Turnover 41% $151m+ Turnover 47% 22% $151m+ Turnover 26% $151m+ Turnover 25% 44% 0% 10% 20% 30% 50% 60% 70% 80% 90% 100% Q3A. In, how do you expect your marketing budget to change from? Do you expect it to? Q3B. Can you specify the % that it is likely to increase? Q3C. Can you specify the % that it is likely to decrease?

8 8 There is a great deal of variation at an industry level when it comes to outlook for marketing budgets. Media & communications (13%) and Manufacturing (19%) have the lowest proportion increasing budgets in 2013 and Non for profit (67%) and professional services the highest (45% increasing budgets). Marketing Budget Changes - Industry Increase Decrease Stay the same Total Total Total Financial Services Financial Services Financial Services Manufacturing Manufacturing Manufacturing Education Education Education Professional Services Professional Services Professional Services Retailling Retailling Retailling Media & Communciations Media & Communciations Media & Communciations Non For Profit Non For Profit Other Other Other 44% 26% 51% 19% 19% 21% 14% 55% Q3A. In, how do you expect your marketing budget to change from? Do you expect it to? Q3B. Can you specify the % that it is likely to increase? Q3C. Can you specify the % that it is likely to decrease? 13% 29% 33% 45% 43% 53% 60% 57% 33% 63% 67% 48% 33% 44% 26% 41% 29% 23% 33% 22% 21% 17% 25% 13% 10% 12% 10% 64% 20% 13% 13% 41% 48% 41% 20% 43% 33% 20% 32% 26% 0% 10% 20% 30% 50% 60% 70% 80% 90% 100%

9 9 Most organisation types and most industry sectors are reducing marketing budgets in 2013, with only smaller organisations, professional services and Not for Profit growing budgets Budget 2008 Budget Budget Budget Budget Budget 2013 Budget Change from Total % 0 to % Number of Employees 101 to 1, % % Annual Turnover (millions) < $ % $ % $ % Financial Services % Manufacturing % Education* % Professional Services % Retailing % Media & Communications Not for Profit* % *Base year is

10 10 Marketing Priorities Measures to increase sales and maximise efficiency of marketing expenditure continue to be the top marketing priorities. More Focus Less Focus Measures to increase sales 65% 2% 58% 2% 66% 2% 63% 2% Maximising efficiency of marketing expenditure 68% 2% 61% 2% 62% 4% 58% 3% More profitable market segments 52% 2% 50% 2% 52% 2% 51% 3% Q4. Have your marketing priorities shifted in the past 12 months? More Focus Less Focus Customer acquisition 56% 8% 46% 6% 63% 6% 49% 7% Maintaining, building brand(s) 50% 8% 52% 6% 53% 11% 47% 11% Measures to increase current period profits 47% 2% 37% 3% 49% 4% 47% 3% Customer retention 58% 2% 45% 4% 48% 4% 45% 4% New product development 43% 19% 46% 9% 41% 15% 42% 12% Pricing issues 47% 8% 9% 6% 5% Channels, channel partners 39% 8% 45% 6% 11% 7% Longer term return on marketing investment 33% 18% 27% 14% 33% 16% 29% 17% Internal marketing 33% 16% 33% 19% 20% 20% Your direct competitors 23% 14% 18% 15% 21% 16% 16% 16%

11 11 Major Marketing Challenges Acquiring new customers, maintaining current customers, along with effectively getting the message to market, continue to be the major challenges for senior Australian marketers. Effectively getting your message to market Acquiring new customers Maintaining current customer base Demonstrating the contribution of marketing to senior management Maintaining pricing /margins Committing sufficient budget to long term goals Maintaining marketing budgets Product issues Dealing with competition Supply channel, distribution issues 54% 51% 50% 52% 45% 47% 52% 51% 46% 37% 33% 39% 27% 30% 25% 29% 30% 29% 30% 29% 26% 22% 18% 20% 18% 20% 18% 37% 39% 39% 30% 50% 45% 42% 37% 33% 46% 42% 42% 45% 39% 37% 41% 39% 37% 39% 32% Q5. What are the major marketing challenges you are facing in your organisation today. Very high level High level

12 12 Use of social networking and Web 2.0 is high but growth is less pronounced. The popularity of Viral marketing has decreased. Social Networking and Web 2.0 applications Online advertising Public relations Viral marketing Direct marketing Mobile / SMS -6% -2% -2% -2% -9% -5% -4% -4% -10% -10% -10% -13% -9% -6% -9% -8% -9% -12% -11% -15% -13% -9% -7% -9% 61% 71% 77% 66% 63% 64% 64% 56% 46% 44% 47% 43% 32% 23% 50% 41% 48% 46% 30% Q6. Has your use of different communications channels changed in the past 12 months? Using more Using less

13 13 Traditional media is being used more by a minority of marketers e.g. Free to air TV (4%), print (12%) and radio (8%). Point of sale advertising Outdoor Free to air television Sponsorships Pay Television Print advertising Radio advertising - -14% -13% -11% -15% -18% -23% -19% - -23% - -17% - -22% -25% -26% -32% -19% - -16% - -27% - -42% % -22% 32% 20% 27% 11% 21% 23% 18% 8% 22% 22% 22% 22% 21% 18% 4% 20% 19% 19% 12% 25% 18% 23% 8% Q6. Has your use of different communications channels changed in the past 12 months? Using more Using less

14 14 Similar to prior years, most senior marketers (76%) feel positive about the role and influence of marketing in Australia. Furthermore, 72% of marketers are highly positive about the role & influence of marketing within their own organisations. 16% 67% 9% 7% 0% 17% 61% 9% 12% 1% In Australia 16% 64% 45% 10% 9% 11% 11% 2% 32% 47% 8% 10% 2% 46% 11% 13% 3% In your organisation 14% 58% 49% 10% 15% 14% 3% 12% 1% Very Positive (8-9) Positive (6-7) Neutral (5) Negative (3-4) Very Negative (1-2) Q1. How do you feel about the role and influence of marketing in Australia organisations today? Q2. How do you feel about the role and influence of your marketing department/team in your organisation today?

15 15 Senior Marketers - Sample Characteristics Industry Category N= % N= % N= % N= % Financial Services 57 17% 42 11% 50 14% 17 7% Manufacturing 49 14% 47 13% 32 9% 36 14% Education 32 9% 37 10% 36 10% 14 5% Professional Services 32 9% 31 8% 44 12% 47 18% Retailing 25 7% 17 5% 20 5% 16 6% Media & Communications 23 7% 30 8% 25 7% 15 6% Other % % % % Total % % % % Q8. In which sector does your organisation operate primarily?

16 16 Senior Marketers - Sample Characteristics Number of Employees of Organisation Category N= % N= % N= % N= % 0 to % % to 1, % % % % 76 30% Total % % % % Annual Turnover (millions) Category N= % N= % N= % N= % < $ % 61 30% $ % 43 21% 68 29% 51 29% $ % % 96 41% 64 Total % % % % Q9. How many employees are there currently working for your organisation in Australia? Q10. What is your organisations approximate annual turnover in Australia (in AU$ millions)?