Onward and Up: How Marketers Are Refocusing the Front Office for Growth

As growth slowly returns to the corporate agenda, it is becoming clear that the recovery is likely to be both prolonged and sluggish. Companies will have to work harder to address new customer values and changing behavior, high levels of competition and sustained cost pressure.

To see how marketers view these opportunities and challenges, Accenture surveyed 400 senior marketing executives from companies in the United States, Canada, United Kingdom, Germany, France, Japan, China, India and Australia. All companies had annual revenues exceeding $1 billion except in the cases of India and Australia, where companies with revenues exceeding $500 million were included.

• Nearly eight in 10 respondents said growing profitably was most important to their current marketing strategy.
  
  
• About 60 percent expect to grow market share and revenues in the coming fiscal year.
  
  
• More than 40 percent said that increased profitability has become more important over the last two years—but that operating efficiently remains important to drive growth.
  
  
• A majority of respondents believe that the downturn has heightened customer expectations for value, product quality and service—and that these changes are likely to be lasting.
  
  
• Sixty-two percent believe that the marketing organization will change fundamentally over the next five years.
  
  
• Nearly 80 percent expected little to no growth in marketing budgets—or an actual decline.

The changes in customer expectations will require marketing itself to change quite substantially. Marketers will have to become more responsible to the customer, not only in the sale of the product but also in following up on execution. Marketers will have to develop further the core capabilities that will enable them to do so.

Most respondents agreed that mastering analytics—to understand customers’ new needs—and innovation—to create new offers to meet those needs—will play key roles in the new marketing organization. Almost as important, marketers will have to develop capabilities in customer engagement to deliver the brand promise.

Six barriers to improving marketing performance were identified by the research. These are: inefficient business practice; lack of funding and other resources from senior leadership; poor integration with other functions; lack of technology or tools; required workforce skills; and access to key customer data.

• Boost the efficiency of their marketing people, processes and technologies in order to generate cash for priority investments.
  
  
• Master customer analytics to translate customer and market data into value-added strategic insights for high-potential customer segments.
  
  
• Innovate with unique value propositions to solidify loyalty from existing customers and draw new customers.
  
  
• Bring tailored experiences to customers through the channels and ways that are most relevant to customers.
  
  

Contact us to find out how Accenture can help your marketing organization transform to meet new customer expectations.