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Postgraduate student: Shapovalova E.,

Scientific supervisor: Yerysh L

Donetsk National University of Tugan-Baranovsky, Ukraine

Global Marketing Industry

The global management and marketing consultancy industry recorded almost 6% growth in 2010 to reach $270 billion, reports MarketLine. The market is expected to reach almost $388 billion in 2015, representing nearly 44% expansion over five years. Operations management represents the leading segment, accounting for close to 30% of the overall global management and marketing consultancy market. The Americas holds over 50% of total market share.

The rapid expansion of the global social media sphere has been changing the landscape of the marketing industry over recent years. Industry players are eager to avail of social media as a marketing channel to take advantage of access to an almost limitless potential customer base. The medium also allows companies to gather information vital to product development, gain insight into customer motivation, better understand the purchasing process and facilitate consumer feedback.

Key Market Segments. Social media marketing is highly effective due to it scope and capacity to engage consumers. Datamonitor estimates close to 40% of consumers would be interested in receiving product information through social media marketing. Inbound marketing engages the consumer more, encouraging them to research companies and products of their own initiative. Obstacles to social media within the financial services industry concern regulation and ROI. The latter is a problem that can be solved through best practice guidelines and proper regulation of marketing through this medium.

Social media platforms such as Twitter, YouTube and Facebook are proving to be increasingly attractive marketing channels for the pharmaceuticals industry. According to research from Markets and Markets, pharmaceutical companies use these platforms not only for marketing purposes, but also to strengthen consumer relationships and streamline brand management using market intelligence gleaned by examining user-generated content.

Companies already using social media marketing include Novartis, which is availing of Facebook and Youtube to boost OTC sales of drugs including Bufferin, Orofar, and Comtrax. Pharmaceutical players using social media for purposes other than marketing include J&J, which used social media for crisis management purposes following the recall of Benadryl tablets and Tylenol. The company was able to reach its consumers to apologize after the FDA uncovered manufacturing plant discrepancies, which led to the product recall.

The rise of social media across the BRIC countries (Brazil, India, Russia and China) makes it an ideal channel for marketing. BRICDATA notes companies are increasingly incorporating social media into their marketing strategies. Social media marketing is used to develop products for specific consumer groups, survey brand image perception and launch new products on the market. Accessing customers through social media can prove difficult due to industry fragmentation, underdeveloped mobile infrastructure and relatively lower literacy rates.

The world enterprise marketing management software industry is expected to record yearly expansion of almost 16% between 2010 and 2014, reports TechNavio. Market growth will be fuelled by demand for quality marketing management software. Obstacles to market growth include the implementation of software across the different levels of the organization. Leading players operating in the market include Teradata, SAS Institute, Unica and Oracle.

Sports sponsorship marketing in the UK is divided according to the type of sport sponsored or in line with the sponsor’s relevant industry sector. Formula 1 racing and football represent over 50% of overall sports sponsorship spending in the UK, according to Key Note. The UK sports sponsorship market is forecast to exceed $3 billion by 2015, up from over $2.5 billion in 2010. The leading contributors to the market are traditionally alcoholic drinks brands and financial services, for example the Guinness Championship and the Heineken Cup for rugby, or the Barclays Premier League for soccer.

Market Outlook. BRICDATA estimates more than half of companies in India grew their customer base by way of digital media campaigns in 2010. Rising adoption of mobile internet across China is likely to encourage marketing initiatives. Companies will increase budget allocations for mobile phone and social media ads as the country’s mobile penetration increases and 3G and 4G services are launched.

Berg Insight points to the importance for companies to streamline marketing strategies to optimize mobile channel marketing benefits. Companies need to remain informed concerning the mobile landscape to predict future trends. While SMS and coupons hold strong potential as marketing tools, a wide range of advertising formats are proving popular such as applications and the mobile web.

Leading Industry Associations: French Marketing Association, American Marketing Association, Canadian Marketing Association The Marketing Association (New Zealand), Belgian Management and Marketing Association

How will marketers change their future social media activities? Some people asked marketers to indicate how they will change their social media use in the near future. Respondents were asked to indicate whether they will increase, decrease, remain  the same or not utilize various social media networks and tools. Marketers plan on increasing their use of YouTube (69%), Facebook (66%), blogging (66%), LinkedIn (65%) and Twitter (64%), in that order. A significant 80% said they have no plans to utilize daily deals or will reduce their efforts. Sixty five percent have no plans to utilize geolocation.

Here is a breakdown by social media channel:

#1: YouTube. For the third year in a row, YouTube is the top area where marketers plan on increasing their social media efforts. A significant 69% of marketers plan  on increasing their YouTube  marketing. This is down from 2012 (76%).

#2: Facebook. Facebook is clearly a top choice. Ninety -two percent of marketers are using Facebook and 66% plan on increasing their activities.Only 4% of marketers surveyed do not plan to utilize Facebook. Second only to YouTube, Facebook is an area where marketers feel they can achieve substantial results.Seventy percent of B2C plan on increasing Facebook efforts. Social media newcomers (77%) were more likely to increase their use of Facebook.

#3: Blogs. Blogs remain a strong area of focus for social media marketers, with 66% indicating they'll increase their  blogging activities. Note: blogging came in just a hair below Facebook (#2). Blogging jumped from #4 in 2012 to #3 this year. B2B marketers are more likely (71%) to increase blogging activity compared to B2C marketers (62%). At least 70% of small businesses are looking to increase blogging,compared to 58% of large businesses. The last few years have seen a decline in these numbers.In 2012, 68% were increasing activities, 75% in 2011 and in 2010, 81% of marketers planned on increasing their blogging.

#4: LinkedIn. Jumping from #6 in 2012, a significant 65% of marketers plan on increasing their use of LinkedIn.As expected, B2B marketers are significantly more likely to plan on increasing their use of LinkedIn (78% of B2B vs.54% of B2C). Social media newcomers (75%) were more likely to increase their use of LinkedIn. Enterprise level businesses were least likely to increase their use (69%).

#5: Twitter. A majority of marketers (64%) will increase their activities on Twitter, slightly down from 69% in 2012 and 73% in 2011.Large businesses are about 10%more likely to increase Twitter activities than small businesses.

#6: Google+. Google+ is on the radar for many marketers. Most businesses (53%) plan on increasing their Google+ activities (down from 67% in 2012), while more than 1in 4 have no plans to use Google+.Fifty- seven percentof B2B marketers will increase Google+ activities,compared to 50% of B2C.Male marketers (58%) are more likely to increase their Google+ use than female marketers (51%).

#7: Pinterest. More than half of marketers plan to increase their use of Pinterest.Considering how new the social network is, these numbers are impressive.B2C marketers are significantly Pinterest activities (57%) versus 44% of B2B. Female marketers (54%) are also more likely to increase their use than male marketers (47%).

#8: Photo Sharing Sites. Thirty-eight percent of marketers plan to increase their use of photo sharing sites like Instagram.B2C marketers are significantlymore likely (44%) to increase activities than B2B marketers (29%).Younger marketers are far more likely to use this form of marketing (48% of 20 to 29-year-olds vs. no more than 33% of those over the age of 40).Marketers with 5 or more years of experience are more likely to increase activities here (45%).

#9: Forums. Only 29% of businesses will increase their forum activities, while nearly half of marketers have no plans to use forums.In 2012, 40% of marketers had no plans for using forums. Now that number has jumped to 47%.

#10: Podcasting. While only 5% of marketers are currently involved with podcasting, a significant 24% plan on getting involved this year—a nearly five-foldincrease!This is a significant finding and likely fueled by (1) more than 1 billion smartphone users, (2) Apple's introduction of a dedicated podcasting mobile app and (3) major auto manufacturers like BMW and Ford integrating podcasting into new cars.Thirty-one percentof marketers with five or more years of experience plan on increasing podcasting activities.B2B marketers are more likely to increase activities (27%) compared to B2C marketers (21%).

#11: Social Bookmarking. A mere 17% of businesses plan on increasing their social bookmarking activities with sites like StumbleUpon (down from 30% in 2012), while 65% have no plans to use social bookmarking.

#12: Geo-location. Only 16% of marketers plan on increasing their use of geo-location services like Foursquare, down from 23%in 2012.Male marketers (19%) are more likely to use geo-location than female marketers (13%).

#13: Q&A Sites. A significant 74% of marketers have noplans to use Q&A sites (like Quora).Indeed only 14% of marketers plan on increasing their activities with these types of platforms.

#14: Daily Deals . At the bottom of the list are daily deal sites like Groupon and LivingSocial. A significant 80% of marketers have noplans to use these types of sites, down from 72% in 2012.Only 7% of marketers plan on increasing their marketing efforts here (down from 12% in 2012).

Bibliography:

1.     http://www.marketsandmarkets.com/

2.     http://www.strategyr.com/

3.     http://www.reportlinker.com/p01930466/Foresight-Report-Digital-Marketing-in-Financial-Services.html