2011 Marketing Trends Report Malaysia - Executive Summary

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

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

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
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Industry
Business
Arts & Entertainment, Products &
Travel Tourism & 0% Services, 5%
Retail, 15% Others, 1%
Transportation, 1% Consumer Products,
14%
Property &
Construction, 3% Education & Training,
4%
Motor Vehicles, 2%
Engineering/
Medical & Manufacturing, 3%
Healthcare, Financial Services, 5%
2%
Government &
Personal Services, 1%

Media, 35%
IT & Telecomms, 10%
Marketing Trends 2011

Company Staff Size in Malaysia A range of industries were represented by the
marketers who took part in the study. Larger
groups of respondents were found to be working
Less than 50 in the Media industry, Travel Tourism & Retail,
24% 32% 50-100 Consumer Products, and IT &
6% 101-250
Telecommunications sectors.
18% 13% Both large and small businesses made up a healthy
8% 251-500
portion of the sample. About a third of
501-1,000
respondents (32%) hailed from smaller companies
Over 1,000 with less than 50 employees, whilst another 30%
Marketing Trends 2011 worked in large businesses with over 500
members of staff.
Job Function High-level marketing decision makers were well
represented; with close to half of respondents
coming from a Managerial position (47%) and over
13% a third being VP or Director level marketers (39%).
39% VP/Director Level The remaining 13% were influencers at the
47% Managerial Level Executive level.
Executive Level



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.

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Area of Responsibility Most marketers surveyed in
Malaysia had a local responsibility
only for the Malaysian market
(64%), although a healthy sample
37%
of those with regional and
Regional/ International markets
international responsibilities was
64%
still observed (37%).
Malaysia market only


Of those who indicated they had
Market Coverage of Marketers with Intl. Responsibilties international responsibilities, the
main markets that these included
Singapore 80% (with the exception of Malaysia,
Indonesia 51% which 85% of these marketers
covered) were Singapore,
Thailand 48%
Indonesia, and Thailand.
China (PRC) 43%
Hong Kong 42%
Australia 33%
Vietnam 33%
Philippines 30%
Taiwan 26%
India 24%
Japan 23%
South Korea 17%
New Zealand 16%
Sri Lanka 11%
Bangladesh 11%
Pakistan 10%
None of the markets listed 3%




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Marketing Budgets
Current budgets (2011)
Marketers were asked what the
Marketing Budget for 2011 total marketing budget was for
their department or area of
More than MYR 10,000,000 18% responsibility for 2011. The most
common budget bracket was
MYR 5,000,001-MYR 10,000,000 8% found to be between one and five
MYR 1,000,001-MYR 5,000,000 20%
million MYR, with 20% of
marketers indicating so. The
MYR 750,001-MYR 1,000,000 7% second most common bracket was
the largest option – 18% of
MYR 600,001-MYR 750,000 2%
respondents indicated their
MYR 450,001-MYR 600,000 4% marketing budgets were over ten
million MYR.
MYR 300,001-MYR 450,000 5%
On the lower end of the scale, a
MYR 150,001-MYR 300,000 8% good amount of marketers had
MYR 1-MYR 150,000 17% budgets below MYR 150,000
(17%). A further 10% expressed
No Marketing Budget 10% that they did not have a marketing
budget.

Budget increases/decreases from last year
Few respondents expressed that
Change in Total Marketing Budget: 2010 to 2011 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
39% Average Increase
16% increase.
Change Decrease
50%
= 16%
Increase No Change at all

11%




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Allocation of Budgets
Marketers were asked to indicate their budget
Allocation of Marketing Budgets in 2011 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,
39% and then followed by allocating their
advertising budgets between Traditional and
Advertising Non-Traditional media. The final step was
asking respondents to break down their
Events advertising budget allocation for Non-
24% Traditional media even further by segregating
Public Relations
it into the various Non-Traditional media
Market Research platforms.
13% Looking only at budget allocations for 2011,
Other areas most expenditure goes to Advertising and
9%
Events; accounting for 63% of marketers’
15% budgets when combined. The overall
breakdown of a business’ marketing budget
starts with over a third going to Advertising
2011
(39%), about a quarter going to Events (24%), a
further 13% going to Public Relations, 9% to
Marketing Trends 2011 Market Research and another 15% accounting
for other areas.
Allocation of Advertising Budgets in 2011
Chart Title 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
Traditional Media (Print,
most funding is not as soon as one might have
61% thought.
TV, Radio, Out-of-Home)

Non-Traditional Media
(Digital, Online, Email,
39% Mobile, Social Media, etc.)

2011




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Allocation of Advertising Budgets for Non- In Malaysia, Social Media is one of the top
Chart Title
Traditional Media in 2011 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
20% Search Marketing/SEO allocation towards Mobile and Social is
predicted by marketers to grow in 2012 and
Online display 2016.
24%

13% Mobile

Social Media
25%

Other areas of non-
18% traditional media

2011




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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.

Top 3 Criteria taken into Consideration when Selecting an Agency

Agency understanding my business needs and
19%
objectives
Creativity & ideas 18%

Agency understanding of the industry I am in 13%

Cost & remuneration 13%

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.



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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%)
Departments/People Directly Involved in Appointment of
indicated that their heads of
Agency business have the most
influence in the decision
CEO/MD 81%
making process of choosing an
Marketing
agency. They are closely
75%
followed by the marketing
Finance 21% team of the company as the
second most influential unit,
Sales 21% almost on par with the
CEO/MD. There seems to be
Procurement/Purchasing 17% high a high level of
collaboration between the two
Other 11% parties. Surprisingly,
Procurement departments have
Marketing Trends 2011 little say in this process.
Drilling down even further,
Person Making Final Decision on Appointment of Agency respondents were then asked
who makes that ultimate final
CEO/MD decision. It seems it lies with
the CEO or MD for the majority
Head of of businesses – a whopping
Marketing 63%. Marketing department
heads have the final say among
roughly a quarter of businesses
63% Other, 7% (26%).
26% Head of Procurement, 2%
Head of Finance, 1%




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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
Incidence of Having Agency Appointed to Handle fact that a budget below this figure can be
Digital Strategy & Executions 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
43% Yes dime”. Assuming that budgets above
57%
MYR 150,000 can afford agency services,
No
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
Appointed Agencies Handling Marketers' Digital formulating them in-house.
Strategy & Executions
For those who have engaged an agency
for digital marketing, about half (49%) are
Creative/Full-Service 49% using Creative agencies and not far
behind, 44% are using Media Planning &
Media Planning and Buying 44% Buying agencies, followed by those that
specialise in Digital (43%).
Digital Agency 43% Another thing that can be learnt from
these multiple-response answers is that
Public Relations 14% on average, two agency types are
appointed per marketer.
Brand Consultancy 12%

Direct Marketing/Loyalty
9%
Marketing CRM

Other 5%




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Attitudes toward Digital service offerings
Respondents were given two statements
How Marketers think Digital is best offered 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
Digital is something that
52% 48% opinion that Digital services are best offered by
creative/full-service agencies
should be offering in their specialist agencies versus full-service creative
spectrum of services agencies. It seems Malaysian marketers are
sitting on the fence on this one.

Digital is something that requires
a specialist agency that's solely
focused on digital strategy and
executions


Engagement and execution of Social Media marketing
Social Media, one of the driving forces behind
Marketers Currently Engaging Social Media
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
26% topic for exploration.
Yes
74%
No


Approach towards Social Media Marketing The vast majority of marketers with marketing
budgets develop and execute their Social
strategies in-house (73%), whilst only about a
Develop and execute quarter have an agency appointed to do it on
27% strategy in-house their behalf.
73%
Agency develops and
executes strategy




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“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.
Top 3 Reasons for Not Engaging in Social Media Marketing

Don't have the capacity to do it in-house 33%

Don't know where to begin to develop a social media
24%
marketing strategy

Believe social media marketing doesn't hit my target
23%
audience

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.



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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.

Top 3 Challenges Marketers Face Connecting with Target Audience

Engaging my target audience; getting them to respond 84%

Limited budget 57%

Lack of consumer insights and reliable research data 53%




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For more information and report sales, please contact Curtis Bergh at the following:

P: +65-6294-1933
E: curtisb@boardroomresearch.com

Report Pricing:
2011 Marketing Trends Report – Malaysia: $5,000 SGD
*price excludes GST applicable upon billing



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2011 Marketing Trends Report Malaysia - Executive Summary

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2011 Marketing Trends Report Malaysia - Executive Summary