Australian Business continues to fail the marketing test
Last year 9 Strategic’s report into the state of marketing in Australia, The Findings, uncovered the large gap in marketing skill and structure that was impacting on businesses’ ability to use marketing to deliver growth. Sadly, in the past year it appears that Australian businesses have continued to fail to take marketing seriously.
Early data collected for this year’s Findings report indicates that Australian businesses are continuing to waste their $43billion investment in marketing, with results as bad, or worse, than last year’s.
“What we are continuing to observe during our benchmarking is a concerning trend among mid-tier companies, which make up a large proportion of Australian businesses, to operate without a functional marketing capability,” said Debbie Richardson, Director, 9 Strategic.
Overall Benchmark Performance
The 2013 Findings report discovered that 80% of CEOs and business owners surveyed were dissatisfied with the ability of their marketing to capture increased market share and drive revenue growth. Results from this year indicate that this statistic has not improved. This is significantly hampering Australian business’s capacity to build value for shareholders, staff and investors.
The Results are Getting Worse
Position is the foundation of revenue generating activity, and last year 40% of businesses had no adequate knowledge of their market positioning and channels to market. If results from this year remain consistent with current indicators, this will rise to over 45% of businesses surveyed. This is particularly concerning as it suggests that Australian businesses’ ability to establish a foundation for a marketing strategy is deteriorating.
There is a Sliver Lining
However, there is a silver lining. We are seeing a slight increase in confidence in businesses’ ability to develop and implement a sales and conversion strategy.
“It appears that Australian businesses have learnt a tough lesson post-GFC. The phones stopped ringing and they discovered that they had to develop a systematic and conscious approach to tracking, communicating and measuring sales leads through to purchase.
This is great news as Convert is the dashboard of business success or failure and it is critical in engendering an environment of continuous improvement, ” said Richardson.
Background on The Findings
The Findings is Australia’s first ever benchmark of the marketing performance of mid-tier companies. The Findings is based on the input from CEOs and business owners of predominantly mid-tier companies with revenues between $10 million and $200 million.
9 Strategic’s proprietary methodology benchmarks the performance of businesses against three broad categories, which underpin the notion that strategic marketing’s role, is to find, convert and deliver customers to achieve business outcomes.
CEOs and business owners self-assessed their organisation’s marketing performance against the following criteria, each of which attract a highest possible score of 15, totalling 45 points in all:
To participate in this year’s survey, visit the Online Benchmark.