B2B megatrends
- 1. 12 Reaching Global Executives: Megatrends in B2B Marketing A special marketing paper for our clients
- 2. Preface 12 Megatrends in B2B marketing is an in-depth look at the challenges facing marketing executives across the world. This special marketing paper was compiled by the Economist Intelligence Unit’s sales and marketing team, drawing on a survey of our clients and other organisations active in B2B marketing. The conclusions outlined in this report are based on our annual marketing survey as well as our own experience in offering B2B marketing solutions. The Economist Intelligence Unit has impressive thought leadership capabilities and works with many clients to meet their marketing objectives. Who took the survey? A total of 136 companies responded to our survey. All were engaged in B2B activities, and generally had substantial international operations. Respondents most commonly had responsibility for operations in Asia Pacific and Western Europe, but executives with responsibility for North America, Latin America, Eastern Europe, the Middle East and Africa were all well represented. The respondents operated in a range of different industries, including technology and telecoms, consulting and legal, finance, media and healthcare. Marketing executives constituted 42% of the sample, followed by sales and business development executives and communications executives. The sample was split evenly between Econo- mist Group clients and non-clients. The survey was conducted in 2006. Lou Celi, SVP and Publishing Director, Economist Intelligence Unit, and Jeremy Eagle, Global Director of Marketing, Economist Intelligence Unit, conducted the survey and wrote the marketing paper. March 2007
- 3. Reaching global executives 12 Megatrends in B2B Marketing A special marketing paper for our clients T he Economist Intelligence Unit conducted an annual survey of business-to-business (B2B) marketing that was designed to identify the challenges that face market- ing executives the world over. Our research drew on two main initiatives: an online survey of more than 130 marketing executives from a wide list of B2B firms, including a cross-section of indus- tries, geographical locations and sizes, and views expressed by our clients. Our position as a leading provider of objec- tive research, publishing and conference services l pursuing a broad range of target company sizes; provides a bird’s eye view of promotional strate- l more closely integrating marketing strategy, gies, objectives and practices. Our survey delivers messaging and media a number of insights across a range of sponsorship l still relying on advertisers and public relations activities and media. (PR) firms—but expecting their capabilities to Specifically, our survey reveals that sponsors and evolve to meet their changing needs; advertisers are: l placing greater emphasis on selling globally, l shifting dollars away from single-media promotion particularly in emerging markets—and to in favour of integrated thought-leadership companies domiciled in emerging nations; programmes featuring print ads, sponsored l exploring new media—with high growth from Web research, publications and conferences; 2.0 initiatives on the horizon; l improving return on investment (ROI) l increasingly outsourcing their research and measurement techniques to track lead generation conference activities. and new business; l seeking much closer collaboration with partners The following paper examines these megatrends, to find new ways to achieve unique marketing investigates the differences between key industry objectives; segments, and outlines how the Economist Intelli- l going higher and deeper into organisations, targeting gence Unit can help executives meet their promo- not just decision-makers but also key influencers; tional objectives. © The Economist Intelligence Unit 2007
- 4. Reaching global executives 1 MEGATREND ONE The shift to 360º thought leadership A sked to rate the value of various marketing user communities) and passive (print) promotional activities on a five-point scale, meetings/ channels. conferences and research/surveys top the list. The way forward is clearly a heavier reliance on Today B2B providers view a broad array of creating a programme of thought leadership that sponsored programmes, such as conferences and takes advantage of multiple-entry-point messaging. white papers, as a valuable means of capturing attention and persuading decision makers. 1. How important are the following non-traditional categories of marketing activity to your organisation? This is not to say that traditional advertising (Mean score out of 5) has lost its appeal. Instead, the conclusion is that Meetings/conferences 3.85 organisations seeking to promote their businesses Research/surveys are increasingly relying on a range of channels, 3.76 White papers, executive summaries, articles including print. 3.61 Specifically, these cross-channel programmes Website advertising and sponsorship 3.40 engage, inform and motivate target markets across Rankings, economic analysis and original content a broad range of both active (meetings, webcasts, 3.25 Webcasts, podcasts and interactive forums 3.01 2 Source: 2006 sponsors survey (134 respondents) M E G AT R E N D T WO The ROI imperative S ponsorship and print-based promotion are of generating leads, building new business and known to deliver the intangible benefits of awareness of services. The study turned up many product awareness, brand recognition and the examples of this trend toward more measurable establishment of thought leadership. ROI. For instance, one well-known high-technology While these remain critical objectives, the survey consulting firm now takes a systematic approach demonstrates that marketing and advertising to determining the ROI of events by measuring the professionals want something more from their number of leads from a sponsored meeting, the promotional investments: they want tangible returns. number of subsequent one-on-one sales calls and the Indeed, when asked their top overall sponsorship size of the business actually generated. objectives, respondents cited the concrete goals Although sponsors are increasingly stressing © The Economist Intelligence Unit 2007
- 5. Reaching global executives 2. What are your top sponsorship objectives? Build awareness of services 66% Generate leads 66% Build new business 65% Position firm as thought leader 58% Improve brand perception 51% tangible benefits, qualitative objectives are Reach high-quality audience important to firms in certain circumstances. 51% Meet senior executives Examples: a company seeking to improve a 39% tarnished image in the marketplace or a technology Increase press coverage 36% firm seeking to showcase an area of managerial Associate with a leading brand 21% expertise. Build relations with government, influence policy 19% Gain management support 9% 3 Source: 2006 sponsors survey (134 respondents) “Me too” sponsorship on the wane MEGATREND THREE O ur experience shows that sponsors today presents us uniquely in the marketplace.” aren’t looking merely to pay a fee in exchange The trend towards more tailored programmes is borne for brand association with a multi-sponsor out by the survey. For example, asked what they look for conference, research report or website. As the in choosing a media solution, respondents cited three marketing director of a professional service firm key objectives: achievement of marketing objectives; asserted, “We do not want ‘bimbo sponsorship’ standing out from the competition; and the generation where we just pay money to get our name on an of new ideas. Of course, these goals can only be achieved event. We want a well-thought-out programme that through active collaboration between sponsors and their media partners. 3. How important are the following in choosing a media solution? Of particular interest, we note (Numbers are rounded to nearest tenth) that if a media relationship is Achievement of marketing objectives 75% 17% 8% able to deliver on the top-three Stand out from the competition criteria, price becomes less of 53% 28% 13% 3% 3% New ideas an issue. In short, sponsors are 46% 30% 16% 7% 1% Price willing to pay a fair price in order 34% 32% 24% 10% 42% to achieve their objectives and Integrated media platform 21% 33% 27% 13% 7% to differentiate themselves from their competition. 1 Very important 2 3 4 5 Not important © The Economist Intelligence Unit 2007
- 6. Reaching global executives 4 MEGATREND FOUR Going higher and deeper into organisations B 2B companies are pushing higher and deeper (47%), finance (42%), information technology (IT) into client organisations, and they are becoming (37%) and strategy/business development (36%). more expert at targeting relevant key functions In addition, they are also targeting specific job in both the senior and mid-levels of management. functions such as procurement (33%), supply-chain For example, the survey indicates that promotional management (27%), human resources (26%) and strategies are targeting executive decision makers, risk management (23%). The rising emphasis on procurement is in line with the greater role that this 4a. What level executive are you targeting in your B2B marketing? function plays in many firms. SVP/VP/Director There are some interesting industry trends. For 66% instance, professional service firms differ most from Head of business unit/product head 66% the norm and focus mainly on the upper echelons of C-level management in large multinational organisations. 54% Head of department Technology firms, on the other hand, are interested in 47% a broader set of titles. Board member 35% Country manager 34% 4b. What job functions are you targeting? Manager 31% General management Regional manager 55% 31% Marketing and sales Economist/analyst 47% 9% Finance 42% IT such as business unit heads and senior vice- 37% president/vice-president/director, in addition to Strategy/business development 36% department heads, C-level/senior executives and Procurement board members. However, companies are also going 33% Operations/production down the hierarchy to country managers (34%), 30% managers (31%) and regional managers (31%). Supply chain management 27% While many managers are influencers, B2B marketers Human resources 26% have a bias towards mid- to upper-level executives, who Risk management are more likely to drive actual purchases. 23% RD Survey respondents are also moving across a 18% broader range of activities within organisations. Information/research 16% For example, the top-five functional targets include General counsel/legal general management (55%), marketing and sales 12% © The Economist Intelligence Unit 2007
- 7. Reaching global executives One size does not fit all MEGATREND FIVE 5 I n terms of size, survey participants are 5. What size company does your organisation want to reach through its marketing over the next year? pursuing a surprisingly diverse range of Over $5 billion companies. Although B2B firms tend to target 49% the largest organisations, they are increasingly $1 billion to $5 billion 50% pursuing smaller ones. $500 million to $1 billion In short, the survey demonstrates that B2B 53% $250 to $500 million companies see pockets of opportunity in virtually 46% every size-based demographic. $50 to $250 million 39% $50 million or less 35% Integrated marketing on the rise MEGATREND SIX 6 C onsistent with the growing importance 6. To what extent does your organisation manage/budget marketing on an integrated basis? of 360° thought leadership, sponsors are integrating the management and budgeting of Most of the time 37% their worldwide promotional activities. All of the time 22% For example, asked to what extent they manage Some of the time 28% their promotional strategies on an integrated Rarely/never 12% basis, 59% say they do so most or all of the time. Don’t know 1% Additionally, over half, 52%, say that the ability to provide an integrated media platform is important to their process of selecting media partners. © The Economist Intelligence Unit 2007 7
- 8. Reaching global executives 7A MEGATREND SEVEN The changing role of advertising and PR s companies move towards greater integra- tion of a wider range of promotional activi- ties, advertising agencies and PR firms still Advertising agencies and PR firms aren’t so much driving the trend towards integrated promotion as they are being positioned as specialist suppliers. exert considerable influence. Advertising agencies and PR firms are more For example, in terms of their role in selecting and involved in helping to come up with ideas and managing sponsorship programmes, 13% describe planning out the multi-channel campaigns, and are advertising agency and PR firm influence as very less involved in price negotiations and the formula- significant, and 21% as moderate. About one-third tion of strategy. As the dynamics of B2B marketing of companies, 34%, describe advertising agencies as evolve, so too must the capabilities of advertising “somewhat” influential. and PR firms. 7a. How influential are advertising agencies and PR firms in 7b. What role do advertising agencies or PR firms play for selecting and managing sponsorship programs? your organisation? Somewhat 40% Development of ideas 60% Moderate 26% Media planning 52% Very 16% Influencing strategy Do not use 14% 26% Price negotiations Don’t know 4% 21% NA/do not use 18% Other 4% © The Economist Intelligence Unit 2007
- 9. Reaching global executives T The allure of emerging markets he geographic demographics of today will bear little resemblance to those of the next MEGATREND EIGHT 8. In which markets will your organisation work to build its business and professional exposure over the next year? Asia-Pacific 8 ten years. We predict that by 2017 China will 66% become the world’s largest economy when growth is Central and eastern Europe 54% measured on purchasing power parity. Growth rates Americas in emerging markets are two to three times those of 52% Western Europe developed economies. 46% Accordingly, our clients are already thinking in Africa/Middle East 35% terms of positioning themselves for the changing world marketplace. For example, in terms of geo- graphic prioritisation, the survey shows that for 2006, sponsoring organisations are targeting Asia and central/eastern Europe more than the Americas 9 and western Europe. A new marketing opportunity: Domcoms MEGATREND NINE E 9. Which customer segments will you pursue? stablished multinationals remain the top priority Multinational companies for our clients. Nearly three-quarters (73%) cite this 73% Domestic companies* category as a primary target. 58% However, there is a growing belief that the high-fly- Financial institutions 47% ers of the next decade will arise from the ranks of today’s Public sector domestic companies (domcoms) in emerging markets. At 45% The public 58%, this category achieves second position even over 21% such traditionally favoured prospects as financial institu- High net worth individuals 21% tions (47%) and the public sector (45%). Institutional investors 14% Foreign direct investors 13% Shareholders 10% Pressure groups/lobbyists 7% *in emerging markets © The Economist Intelligence Unit 2007
- 10. Reaching global executives 10 I MEGATREND TEN The global decision matrix ntegrated global marketing campaigns are complicated and frequently require complex 10. Who at your organisation typically makes decisions on sponsorship and advertising? decision matrices, especially in accounting and Corporate management 37% consulting firms. Our survey shows that decisions Country management 25% can be made at different levels and often need to be Joint decision 23% jointly agreed. Many marketing directors recognise Regional management 13% that global decisions made at corporate headquar- Don’t know 2% ters without the support of local management can lead to poor results. The survey indicates a slight bias toward central- ised sponsorship and promotion decisions (37%). However, the results are mixed: 25% make the deci- sion at the local level; 13% at the regional level; and 23% decide jointly. Choosing A Provider The Economist Intelligence Unit T he survey* shed light on the research and promotional objectives, we of helping their organisations associate relative quality and value of came out at the top. For example, 46% of with a leading brand. Forty-three percent various providers of confer- participants say that we are better in terms say that we are better than the competi- ence, research, publishing and promotional services. In terms of How we compare in achieving the following objectives quality and value, and meeting sponsor- Associate with a leading brand 46% ship/research objectives, the Economist Intelligence Unit scores highly in the view Better Reach a high-quality audience 43% of survey participants. than the Meet senior executives 41% Asked how our brands and associated competition Position clients as thought leaders 37% capabilities compare with the competi- tion in terms of achieving key sponsorship, Improve brand perception 33% Obtain press coverage 25% *including a mix of EIU clients and non-clients 10 © The Economist Intelligence Unit 2007
- 11. Reaching global executives T New media poised for rapid growth he survey shows that website advertising and spon- sorship, at 3.4, are becoming more important for B2B marketing. However, new Web 2.0 initiatives— MEGATREND ELEVEN 11 11. How important are the following categories of marketing webcasts, podcasts and blogs—have not yet become activity to your organisation? (Mean score out of 5) commonplace. We expect new media to continue to grow Meetings/conferences in popularity, particularly as a way to build a “community” 3.85 of executives with common interests. Research/surveys 3.76 Consider also the other trends from this survey. Compa- White papers, executive summaries, articles 3.61 nies want tangible ROI; they seek integration in their mes- Website advertising and sponsorship saging and wish to target specific executives. Electronic 3.40 Rankings, economic analysis and original content media can achieve all of these goals. As one marketing 3.25 director said: “in the future, we will not consider working Webcasts, podcasts and interactive forums 3.01 with a company that has no new media capabilities. As Source: 2006 sponsors survey (134 respondents) executives increase their use of these web tools internally, we will see the rise of their use externally”. tion in terms of reaching a high-quality at assisting our clients in positioning their quality and value of services of the Econo- audience. Given the strength of our brand, companies as thought-leaders. mist Intelligence Unit, and its division, 37% say that we are better than the rest Finally, respondents were asked to rate the Economist Conferences. Again, our brands and related capabilities scored favourably in How do we compare in quality and value? all categories. Research/surveys 53% Rankings/economic analysis 41% Better than the White papers/executive summaries 33% competition Meetings/conferences 29% © The Economist Intelligence Unit 2007 11
- 12. Reaching global executives 12 O M E G AT R E N D T W E LV E The growing appeal of outsourcing utsourcing is already prominent among B2B marketers. The survey, however, shows that the next three years will see further growth in 12. Now and in the next three years–do you outsource the following? Research/surveys 63% Website advertising or sponsorship the number of organisations choosing this approach. 49% For example, over half of respondents (53%) say Meetings/conferences 40% that they currently outsource research and surveys. Rankings or other original content However, that figure rises to 63% over the next three 40% White papers, executive summaries years. Similarly, while 26% of respondents say that 36% they currently outsource conference organisation, Webcasts, podcasts 31% that figure rises to 40% over the next three years—a whopping 54% increase. Outsourcing gaining popularity Today In 3 years % increase Research/surveys 53% 63% 1% Rankings/analysis/other content 29% 40% % Meetings/conferences 26% 40% % White papers/executive summaries/articles 23% 36% 7% Conclusion S tronger focus on ROI; greater integration of marketing and messaging; more precise targeting of market segments; deeper penetration of emerging markets; higher levels of outsourcing: the key findings of our survey demonstrate that B2B marketing is becoming increasingly sophisticated. Moreover, we expect this sophistication to further increase as more companies expand their programmes to include new media tools, such as webcasts, podcasts, microsites and interactive forums. 12 © The Economist Intelligence Unit 2007
- 13. Appendix B2B Marketing Megatrends Appendices Demographics The preceding survey was executed in 2006 and com- Survey participants pleted by 136 companies, half of which were clients of the Economist Group. The demographic profiles of our Economist Group clients 51% respondents are as follows. What is your principle business activity? Tech/IT/telecom 26% Consulting/legal 22% Non-Economist Group clients 49% Banking/finance 14% Media/PR/agency 7% Healthcare/life sciences 7% Energy/utility/chemical 2% For which region(s) of the world are you personally responsible? Education 1% Government/trade body 1% Africa/Middle East 26% Other 10% Asia/Pacific 46% Western Europe 43% Americas 28% What is your personal area of responsibility? Central and Eastern Europe 35% Marketing 42% Sales/business development 29% Thought leadership/ practice leader 10% Corporate communications/PR 7% Other 13% © The Economist Intelligence Unit 2007 1
- 14. Appendix B2B Marketing Megatrrends Partnering with the Economist Intelligence Unit to reach global executives At the Economist Intelligence Unit, we believe the best way n Where global means global The Economist Intelligence to reach executives is through thought leadership. Our mul- Unit is the world leader in global business analysis. Client tiple-media approach provides you with a highly effective programmes are enriched by our extensive local business way to engage with your target audience. knowledge, combined with an insightful international perspective. We employ 130 full-time country specialists and economists. Between them they speak 25 languages, 360º thought leadership and have a deep understanding of politics, economics, risk, Web 2.0 industry and management issues. Our team is supported Content-rich advertising Website sponsorship by a global network of over 500 expert contributors in over Custom research and briefings Webcasts 200 countries. Management surveys Microsites Executive interviews Advisory boards Executive programmes n Unique access to senior executives Our clients Corporate network by region comprise over 5,000 organisations worldwide, with many Functional executive groups Publishing services individuals at the top of their fields. Executives come to us White papers Custom websites for analysis and insights they can’t find elsewhere. Articles and newsletters Business rankings Over 1.5m business users are authorised to use our web- sites. There are executives who attend our 250 conferences Executive meetings and meetings throughout the world each year, or read our Executive forums Business roundtables white papers or survey results, or the research we distrib- Government roundtables ute through online partners like Bloomberg, LexisNexis and Thomson. We maintain a survey panel of over 20,000 executives globally. We also draw on The Economist Group’s Our custom approach to thought leadership is unique unique global database of 6m past and current clients, in the business advisory market. We can draw on a range which includes all subscribers to The Economist. of media to position your organisation at the forefront of debate on critical management, industry or regional issue. n Working for you We recognise that you have communi- We value our partnerships with clients and offer cations goals as distinctive as your business. So we create complete sponsorship and advertising programmes that an integrated thought leadership programme aligned with are flexible, high-profile and effective. And our research your objectives. orientation ensures high interest from global opinion-lead- Whether you want to reinforce your position as a thought ers and the media. leader in a particular field, benefit from association with our brand, or create networking opportunities with your n A brand that business leaders trust The Economist target clients, we work with you to achieve your aims. Intelligence Unit is a leading provider of country, industry and management analysis. For nearly 60 years we have delivered vital business intelligence to influential decision- makers around the world. Our extensive global reach and unfettered independence make us a trusted and valuable resource for international companies, financial institutions and government agencies. 1 © The Economist Intelligence Unit 2007
- 15. Whilst every effort has been taken to verify the accuracy of this information, The Economist Intelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this paper or any of the information, opinions or conclusions set out in the paper. Project Directors Lou Celi Jeremy Eagle SVP and Publishing Director Global Marketing Director Economist Intelligence Unit Economist Intelligence Unit 111 West 57 Street 111 West 57 Street New York NY 10019 New York NY 10019 212 554 0632 212 554 0649 louceli@eiu.com jeremyeagle@eiu.com Regional business coordinators Barry Rutizer, Vice-President, Richard Hargreaves, Regional Sales Tim Hill, Director, Sponsorship Sales, Chris Williams, Business Development Business Development Director, Sponsorship Advertis- Asia Pacific Director, CEEMEA Economist Intelligence Unit ing UK Economist Intelligence Unit Economist Intelligence Unit 111 West 57 Street Economist Intelligence Unit Room 6001, Central Plaza Olzeltgasse 3/7A New York NY 10019 26 Red Lion Square, 18 Harbour Road 1030 Vienna 212 554 0611 London WC1R 4HQ Wanchai, Hong Kong Austria barryrutizer@eiu.com +44 (0)20 7576 8162 timhill@economist.com chriswilliams@economist.com richardhargreaves@economist.com 852 2585 3859 +43 (0)1 712 4161
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