Chairman’s Series on Growth

Asia Pacific Edition

The CEO’s Marketing Team:

Spearheading Profitable Growth

June, 2009
Today’s Presenters

Craig Baty Michael Buchholz

Global VP, IT Practice VP Marketing, Asia Pacific
Frost & Sullivan Frost & Sullivan

Today’s Moderator:
Hwee Har Tan
Marketing Manager, Asia Pacific
Frost & Sullivan
Agenda

1. Poll Results from Last Months AP CSG

2. Overview: Where We Are in the Series
3. Challenges to the Marketing Career
4. Marketing’s Role on the Growth Team™
5. Case History: Marketing Best Practices
6. Marketing Best Practices Thought Leadership Model
7. Serious About Growth: Next Steps
 Polling Responses from April APAC CSG
Does your company currently have a culture focused on Growth, Innovation and Leadership?
Yes
66.6%

No
33.3%

What challenge(s) does your CEO and/or management team face in developing and creating a
culture of Growth, Innovation and Leadership?
The CEO doesn’t have the required leadership skills
66.6%
Getting the entire team on the same page
33.3%
Eliminating the ‘not invented here’ or the challenge of evolving silos
66.6%
Lack of visionary skills to develop a powerful growth strategy
33.3%
Lack of time to engage in the required growth workshops
66.6%
Lack of budget to travel to GIL and or invest in long term growth
33.3%
The Growth Acceleration System
CEO's Growth Team
Building Teamwork and A Culture of Growth Innovation & Leadership
Internal Challenges for the Marketing Function

Marketing’s insular focus and reactive behavior relegate it to a highly

operational role that provides minimal value to the CEO’s Growth Team.

Situation Resulting Challenge

Operational issues dominate the agenda - Soft ROI – budget constraints; undervalued by
CEO and executive team

Lack of goal alignment between marketing and - Combative relationship – weak integration with
sales sales goals

Lack of integration with R&D - Higher risk product strategy – miss market
demand

Lack of input to growth pipeline - Growth pipeline is overly dependent on new

product development for growth
External Challenges for the Marketing Function

Without a 360 Degree Perspective, Marketing can provide minimal value

to the CEO’s Growth Team.™

Situation Resulting Challenge

Technology of marketing is accelerating - Increased pressure on marketing to leverage
Best Practices for growth

Changing economic and political landscape - Assess future growth pipeline

-
Puts your current growth strategy at risk

Increasingly competitive markets - Offer comprehensive picture of competitive

landscape
- Prepare company to address competition

Smarter customers with shorter attention spans - Build accurate audience profiles with effective
messaging
Marketing: Relationship with Leaders
CEO/Leadership
Marketing Role
• Responsible for generating growth opportunities
and ideas
• Instrumental in communicating growth strategy
and vision to internal team
• Communicates to Growth Team™ on progress
of vision
• Facilitates strategic communication within
Growth Team™
• Supports growth implementation
CEO
Marketing
CEO’s Role
• Open-minded, willing to explore, nurturing of
innovation
• True collaboration with marketing
• Supports GIL (Growth, Innovation and
Leadership) Culture, open forum
• Clearly communicates objectives and vision
• Provides time and budget for long-term strategy
• Inspires, nurtures and unifies Growth Team™
to create and achieve vision
Marketing: Relationship with Competitive Intelligence
CI

Competitive Intelligence (CI) Marketing

Marketing Role CI’s Role

• Drives Competitive Intelligence programs to • Best Practices within CI function

ensure successful growth opportunities • Proactive not reactive
• Ensures CI is aligned with Growth Team™ • Supports diversification opportunities
on competitive landscape for growth
• Expands CI to all roles on Growth Team ™
and all projects
Marketing: Relationship with Market Research

Market Research
Market
Marketing
Research

Marketing Role Market Research Role

• Identify key customer/consumer and • Develop research agenda focused on growth

marketplace information gaps needed to
drive growth strategies
• Prioritise key growth customer segments for
evaluation
• Collaborate with Market Research to embed
customer insight into new product
development, marketing communications
and strategies
opportunities
• Synthesize disparate sources of information
to evaluate opportunities
• Generate “voice of the customer” insights
• Support decision making by Marketing with
data and insights
Marketing: Relationship with Corporate
Strategy/Development
Strategic Business
Development

Corporate Strategy/ Development Marketing

Marketing Role Corporate Strategy/Development Role

• Responsible for increasing Corporate
Strategy/Development activities
• Creates communication system to optimise
collaboration
• Aligns short-and long-term ideas
• Provide long-term growth ideas for Corporate
Strategy/Development
• Provides feedback on ideas generated by
Corporate Strategy/Development
• Generate and evaluate growth options for the
company
• Collaborates on ideas, opportunities, visions
and strategies
• Connects short- and long-term visions
• Be measurable
• Provides strong feedback
• Clear role and objectives, building together with
marketing
Marketing: Relationship with Research & Development
Research & Development (R&D)
Marketing Role
• Supports open collaboration between
business units and R&D
• Identifies market opportunities for R&D –
Customer Perspective, Competitor
Perspective
• Communicates internally and externally the
growth potential of various R&D activities
R&D
Marketing
Research & Development’s Role
• Open communications with other business
units
• Capabilities of development, what's possible
• Communicates through all phases of product
development cycle
• Proactive probe for marketing-driven new
ideas
• Focus on relationship and teamwork
Marketing: Relationship with Sales Management

Sales Management Sales

Management
Marketing

Marketing Role Sales’ Role

• Building strategies to respond to competition • Captures measurable customer feedback

• Creates marketing communications based on • Key 360 Degree Perspective - feedback to
CEO’s Vision, Growth Team™ collaboration, Growth Team™ and marketing
customers voice, brand promise and • Feedback on message effectiveness
communication channels
• Open communication and collaboration with
• Responsible for partnering with Market Research other business units
to create customer profiles that aid the
segmented selling approach
• Drives competitive benchmarking to enhance
Sales effectiveness
Marketing: Relationship with Investor/Finance
Investor/Finance
Marketing Role
• Collaborates to identify and generate ways to
leverage 10 Growth Processes
• Provide unbiased and unhyped data from
various sources including CRM system and
customer surveys
Investors
Marketing
Investor’s Role
• Collaboration and communication with
marketing and Growth Team™ on costs and
investment criteria
• Feedback on financial analysis on Growth
Pipeline
• Help prioritise growth pipeline
• Sharing ROI and IRR calculations with team
• Creates financial model of growth opportunities
• Conducts sensitivity analysis of growth models
Marketing: Current vs. Growth Team MembershipTM (GTM)

Marketing Needs to Evolve to Optimise Impact

Today’s Marketing Role
• Consumed with Operations
• One-way Communication w/ CEO
• No Budget or Time for long term
• Little Insight into R&D Pipeline
• Adversarial Role with Sales
• Marketing not on Pipeline
• Marketing thinks Dept is at Best
Practice
• Marketing has Market Perspective
• Not Concerned with Culture
Empowerment Through GTM
• Big Picture Marketing Strategy
• 2-way Communication w/ CEO
• Fights for Budget & Time
• Drives Growth Strategy
• 100% Integration with R&D
• Partnership with Sales on
Implementation
• Source of 50% of Growth Pipeline
• Team Exposed to Best Practices
• Learning 360 Degree Perspective
• Drives Growth Innovation and
Leadership Culture Internally
Marketing’s Impact on the Growth Pipeline

Marketing could fuel 50% of Growth Pipeline opportunity

• Distribution Channel
• Geographic Expansion
• New Applications for Existing Technology
• Customer Segmentation Strategies
• Customer Strategies
• Sales Strategies
• Pricing Strategies
• Merger & Acquisition
• Growth Sourcing
• New Product Enhancements Driven by Customers
 Michael Buchholz,
VP Marketing, Asia Pacific
Frost & Sullivan
The Financial Opportunity

Sustainable Profitable Revenue Growth

Sustainable Profitable Revenue Growth

Profit
Profit

Time
Time
Reduce
ReduceImpact
ImpactOf
OfIndustry
IndustryCycle
Cycle
New Strategic Capabilities

Growth Strategy

Strategic
Operational Acquisitions Market
Efficiency and Development
Integration

• Brand Development
• “Helping Customers Complete Their Important Construction Projects”
Growth Team … a collaborative approach to growth

Market Market Research &

Assessment Analysis

New Product R&D

Development

Operational
Integration
Commercial Strategy
and and Planning
Pricing

Sales Strategy
and Sales
Account
Management
Case In Point: Making The Old New Again…

Old Markets… New Value

• Residential • Paving

• Concrete Homes • Recycled Pavements

• 30-50% ↓ Energy Costs • 66%↓Material to Landfill

Increase Use of Cement and Concrete vs. Other Materials

Repositioning Brand to Support Growth

Brand Development

Internal Focus Customer Focus

Rational Rational + Emotional

Products Customer Projects

Innovative Solutions Provider

Ingredients of Success

Making It Happen AND Making It Stick

• Change “Commodity” Thinking

• Develop Compelling Business Case

• Measure and Communicate Results

• Make It a “Big” Team Effort

Definition: What is Best Practice?

Specific activities performed to solve a tough

business challenge that 9 out of 10 companies are
NOT performing but SHOULD, with measurable
results proving effectiveness
Marketing: Best Practices Thought Leadership Models Future
Research Topics

Building and Training the Growth Team™

Developing the Growth Pipeline from Marketing Perspective

The Marketing Function: Top 6 Growth Thought Leaders (GTLs)

Which Companies, Departments and Leaders are at Best Practice Level?

Strategic Actions for Key Challenges in Marketing

Creating a Customer and Competitor Landscape for Growth Evaluation

Customer-driven Marketing Strategy

Competitive-driven Marketing Strategy

Brand Leadership & Change

Strategic Partnering

Lead Generation and Management Systems

Customer Relationship Management

Marketing-driven Product Development Process
 www.frost.com/gilglobal
GIL GLOBAL 2009
A global community focused on Growth, Innovation and Leadership

September 2009 October 2009

Kuala Lumpur
Phoenix, Arizona

October 2009
October 2009
Shanghai
Dubai

October 2009 December 2009

Bangalore Sao Paulo

May 2010
London
Next Steps

 Request a proposal for Growth Partnership Services to support you and your team to
accelerate the growth of your company.
 Attend Frost & Sullivan Executive MindXchange best practice networking events
(http://www.frost.com/cal) to share and address strategic challenges
 Consider Conducting a 360 Degree Growth Workshop to support your long-term growth
strategy
 Join us at a Growth, Innovation and Leadership 2009: A Frost & Sullivan Global Congress
on Corporate Growth (www.frost.com/gilglobal)
 Register for the next Chairman’s Series on Growth: (http://www.frost.com/growthapac)
 Schedule a Recession Strategy Session with a Frost & Sullivan Industry consultant (email
us: alvin.chua@frost.com)
 Schedule a One-on-One Growth Strategy Dialogue with a Frost & Sullivan Growth
Consultant (email us: alvin.chua@frost.com)
 Register for Frost & Sullivan’s Growth Opportunity Newsletter and Growth Team
Membership e Bulletin to keep abreast of growth opportunities in your industry and best
practices in your career track. (www.frost.com)
Contact Us

If you have questions or would like further information about anything we

discussed, please send your query to the email provided below and we will
get back to you shortly.

Alvin Chua
Account Manager
Automotive, Transportation & Logistics
DID: +65 6890 0997
Mob: +65 9199 4566
eMail: alvin.chua@frost.com