MAKE OR BREAK?

Market transformations While natural and man-made events remain perennial concerns, changes in consumer behaviour have reached a stage where key questions about the validity of previous marketing models and the effectiveness of new ones have now become a priority. Steve Garton, head of Asia-Pacific media for Synovate, the research agency which carried out the survey, says: "People will never look back to the simple models of the past because the market has moved."
His advice to agencies? "Take absolute consideration or perish."

Ploughing on ahead Marketers are by no means gloomy about the future. Toys R Us head of marketing and customer relationship management in Asia Argha Sen says: "From a regional perspective, the opportunities lie in harnessing the talent and best practices. The challenges are two-fold: growing market share in mature and relatively stable markets; and managing growth in developing markets amid changing consumer behaviour; volatile political, real-estate and financial markets; and the constant threat of calamities like tsunamis and bird flu."

BTL becomes a priority Public relations is by far the most important communication channel, with almost nine out of 10 marketers rating PR as a must-have or important.
Online, CRM and instore all rated highly -- in each case, one in three said these were critical marketing channels, compared with just one in five saying the same for traditional above-the-line media such as print and television.
The main beneficiary in the shift of focus to BTL is the internet; the appeal of the web over traditional radio and TV among Asia's youths was also tagged as an important trend. A Malaysia-based marketer says the "time has come for new media to make its mark. Traditional channels like print and TV have to get more interactive to retain consumer interest".
Laura Ashton, Shell's regional marketing manager for consumer lubricants, suggests that marketing activity should be segmented under the general headings of strategic brand building and tactical volume building, both of which require a mix of ATL and BTL. "We need to review the language," Ashton says. "It's so ingrained, people don't think about it. I think they throw around these terms too easily."
An era of greater accountability requires more accurate terminology to describe marketing activity, Ashton argues.

Whither above-the-line? Traditional media remains important, especially for product launches, but, increasingly, the creative use of other media and communication channels is what gives brands the edge in a crowded competitive landscape.
"Below-the-line is more and more important, but it's not necessarily more important than above-the-line," the media manager of a large MNC told Media.
Traditional print and TV still scored highly, with around six in 10 saying these channels are important elements of their media plans.
And one respondent from the Philippines, a market where mobile phones have become particularly enmeshed in popular culture, sees potential for the mobile to become a key communication vehicle of the future. "We expect things to move from computer screens to mobile phones within the next five years, potentially making mobile phone companies the big broadcasters of the new era."
While well-established media channels still occupy strong positions, diversification is starting to manifest itself in developing markets, where TV is a central plank for brand communications.
"The change is trivial, but as year-on-year spend on TV is decreasing, I am already seeing brands switching funds into all other non-traditional media," says MediaCom Pakistan executive Qaiser Khalil.

Numbers that matter Whatever the merits of above- versus below-the-line, it is worth noting that what marketers really value are integrated campaigns.
Almost half the survey voted integrated campaigns as crucial. "I believe integration is critical," says one regional marketer. "Effective marketing is like cooking. You need different ingredients to create the perfect meal."
However, what counts is marketing with numbers attached, with ROI measurement and market research both scoring highly.
"Cost consciousness is on the increase, which should have been the case all along," one Singapore-based marketer remarks.
"Effectiveness of channels is under greater scrutiny."
Meanwhile, consumer involvement in marketing, through disciplines such as market research, is gaining in importance.
"Always embrace consumers," one marketer says. "Don't just sit and think in the office. Allow consumers to see, feel, sense and try the new product or service before final market roll-out."
Laura Ashton, Shell's regional marketing manager for consumer lubricants, says: "Ownership and passion about brand health must be owned at board level."
This includes understanding what is measured and what needs to be improved. Concern over brand health should be a company-wide undertaking.

Money and relationships Issues such as budgets, long-term relationships and agency remuneration are regarded as important but not critical.
Less than one in five said a substantial budget was vital, while fewer than one in seven said the same about long-term agency relationships and performance-related agency remuneration.
Although many marketers see differentiation as increasingly important -- "More and more, it's about originality that makes you stand out from the crowd," says one -- breaking new ground is not a priority for most.
Experimenting with untested formats fared poorly in the survey, underscoring how marketers have to be able to justify investments with hard returns. New areas of marketing, such as the internet, are often the first to go when companies look to rein in costs.
Although few marketers in Asia see the need to bring in additional expertise from consultants, one voices disappointment on how some agencies work.
"Quality agency executives are scarce, not to say strategists and those who can understand business. Effective marketing is driven inhouse and by consultancy advice."
Other brand managers distilled the formula for effective marketing into concise observations -- "focus" -- and, of course, "simplicity, simplicity, simplicity".

Agencies under the spotlight The health of Asia's advertising industry is poor, according to several marketers who blasted agencies, for how much they charge -- "after the first few months of service, the value for money begins to decline," remarks one; the 'phenomenal' staff turnover that sabotages any efforts to develop meaningful relationships; and the seemingly low levels of understanding of what is really important to advertisers.
"Agencies and service providers must take time to understand the client's business as if was their own," says one.
The importance of local staff -- rated as critical -- is a strong influence in agency choice. Not everyone saw this as an issue however.
"Staffing is key to deliver the best service, but it is not about local or expatriate staff," says one China marketer. Another pointed out that key staffing issues should be what sort of people are hired, with clients preferring hard-headed business types rather than those seeking the glamour of a career in advertising.

The creative challenge While knowledge and understanding came top in marketers' wish-lists for their perfect agency, creativity -- in terms of the sort of creativity that wins agencies awards -- fared less well.
"Chemistry between parties and respective brand-building philosophy is key," observes one brand-owner. "Creatives working for awards are to be avoided."
The message from the region's marketers is that creativity needs to be harnessed with business discipline. "Agencies should realise that creativity that is not relevant to the brand is a waste," remarks one marketer.
A Hong Kong-based marketer with a regional remit says both agencies and advertisers must share the blame.
"In my experience, most agencies focus on investing in creative services. Planning, training and other propositions are generally neglected, as they are harder for agencies to justify. Clients don't want to pay for these services, and deadlines and process conspire against them."
Though some marketers have some harsh words to say about the industry, only about one in six say a good reputation among their peers is a key determinant for which agency they use.