APAC Issue Q3 2019

8 APAC / Issue Q3 2019 , 73% of CEOs Believe Marketers Lack Business Credibility. 75% of Marketing Campaigns Underperform. What’s the Problem with Marketing? APAC Insider: “Jerome, why do CEOs think Marketers Lack Business Credibility?” Fontaine : Over the last 11 years we’ve been running a Global Marketing Effectiveness Tracking program (across the Americas, Europe and Asia Pacific) to (A) better understand Marketers around the world (what they think their job is, how effective they are, what type of results they deliver) and (B) better understand what CEOs expect of these Marketers. We tracked and identified that: - 80% of CEOs expect Marketers to generate incremental customer demand for their organisations’ products/services. That’s true in both Large Enterprises and SMEs. - 73% of CEOs think Marketers lack business credibility and are not the business growth generators they should be. Why? Because they are still too far from being able to unquestionably demonstrate how the Marketing strategies, programs, activities and campaigns they deploy grow their organisations’ top line in terms of generating more customer demand, more sales, more prospects, more conversions or more market share. The key word is “unquestionably”. The top issues CEOs in Asia Pacific and around the world have with their Marketers are: 1. They keep on talking about brand, brand values, brand equity and other similar parameters that their top management has great difficulties linking back to results that really matter: revenue, sales, EBIT or even market valuation (77%) 2. They focus too much on the latest marketing trends such as digital and social media, because they believe they represent the new marketing frontiers – but can rarely unquestionably demonstrate how these trends help them generate more business for the company (74%) 3. When asked to increase their Marketing ROI, they tend to understand it as cost cutting through better economies of scale or negotiations with their third- party partners and agencies, instead of top-line growth Mar19317 The FournaiseMarketing Group (“Fournaise”) is one of the world’s leadingMarketing Effectiveness Tracking & Boosting (METB) companies. Using its proprietaryMETB technology andmodels Fournaise has over the last 15 years tracked and boosted the effectiveness of more than 2.5 millionmarketing strategies, products, programs, campaigns & ads, across 20 countries, 13 industries (B2C & B2B) and 18 languages, for Fortune 500 companies, SMEs and top advertising agencies. In April 2019 Fournaise was awarded “Most OutstandingMarketing Effectiveness Specialists, 2019 – Asia Pacific” by APAC Insider. We sat downwith Jerome Fontaine, Fournaise’s Global CEO&Marketing Performance Chief, to get his views onwhat Marketers should do to push theirMarketing spending to be more effective and deliver better business results. generation: more revenue, more sales, more prospects, more buyers (73%) 4. They bombard their stakeholders with marketing data that hardly relate to or mean anything for the company’s P&L (70%) 5. Unlike CFOs and Sales forces, they don’t think enough like business people: they focus too much on the creative, “arty” and “fluffy” side of marketing and not enough on its business science, and rely too much on their creative and media agencies to come up with the next big idea (67%) The worrying part: while on one hand 73% of CEOs think Marketers lack business credibility