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Monday, 28 January 2013

Push vs. Pull in B2B Marketing

Posted on 11:49 by Unknown
In the world of retail consumer marketing, a Push strategy would indicate a manufacturer's ability and monies to motivate a merchant to carry and promote its products. A Pull strategy would indicate that same manufacturer using advertising and promotion directed at consumers, with the objective of having those consumers demand the product from the merchant.

OK, I paraphrased that from marketing guru Phil Kotler in his 11th edition of "Marketing Management", which is a classic text. Also in this edition, Kotler states: "The internet will not become a major advertising medium like televison , radio, and print media. Internet users generally do not welcome advertising."

When Professor Kotler revises that statement in his 12th edition, he might also write about the new dynamics of Push vs. Pull in B2B Marketing !

B2B marketing and selling  in the tech space is heavy on Push. There is a parallel here to B2C Push as described -- with regard to the strong channel influence that manufacturers maintain. But the Bigger "Push" is the heavy-handed salesmanship that is directed at the B2B buyer. Marketing spends about half its budget on demand generation programs. And the Sales function spends four times as much as all of Marketing, trying to persuade buyers.

It is indeed the internet that is changing this dynamic, as IDC VP Kathleen Schaub has written about exetensively in her New Buyer Journey analysis. The self-educated buyer resists Push. In fact, IDC research  shows that Buyers are practically begging their vendors: "Don't sell so hard!.  So, don't sell so hard; don't push so hard. Customers don't want to be sold to. They want to make self-determined choices.

The mantra for B2B marketers has to be Pull. If we acknowledge that the self-educated buyer will make his or her own choices on where to get educated, our job is to attract them, to pull them,  to our way of  thinking. The new Pull will continue to be advertising and promotion, but it will be more about helpful Social connections; an emphasis on educational marketing content; and greater demonstration that we have deep knowledge of  the customer's business issues.

As you think about the next round of your marketing planning and budgets, also think about the general quotient of Push vs. Pull that you have in your overall mix. And ramp up the Pull -- the gravitional forces that will hopefully draw your prospects into your atmosphere.

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Tuesday, 22 January 2013

Why Participate in IDC's Marketing Barometer Survey

Posted on 07:45 by Unknown

The CMO Advisory Service at IDC is conducting its annual barometer survey. This is the 10th year of the survey.  All respondents will receive a free copy of the report produced from the results of the survey and an invitation to IDC's exclusive Client Telebriefing.

During The CMO Advisory's 2012 Marketing Benchmarks survey we collected data from ~100 of the largest and most influential tech companies, their combined revenue totaled nearly $750 Billion.  The barometer survey provides a "finger in the wind" follow up to the Benchmark Survey providing detailed guidance to senior marketers. Areas of focus include: budget ratios, program spend, headcount allocation, and in-depth insights into key trends in the industry and forward looking roles and programs.   

If you are interested in participating: contact Sam Melnick at smelnick (at) idc (dot) com

Below are some answers to questions you might have:

Q: A free report and webinar, cool! Wait what type of information will they contain?

A: The results of the survey will be used to analyze the direction of marketing resource expenditures and priorities during the next 6-12 months. So questions like the following will be answered:
  • How aggressively are marketing budgets increasing or decreasing in my sector this year?
  • What marketing staff positions or programs should I look to invest in?
  • What up and coming areas should I be looking into this year to create a world class marketing organization?
  •  What are next week's Powerball numbers? (Ok we won’t answer that question, if we knew we probably wouldn't tell you…sorry).
Q: Who should take the survey?

A: Marketing executives who are in a position of responsibility for worldwide marketing practices.

Q: How long will it take?

A: Depending on several factors, as quick as 15 minutes!

Q: I can’t get this done today, when do you need to have it completed by?

A:  To receive the report and an invitation to IDC's exclusive Client Telebriefing participants need to complete the survey by Wed Feb 13, 2013. Also, all of the information must be accurately provided in order to be included in the study and receive the free deliverables.

If you are interested in participating: contact Sam Melnick at smelnick (at) idc (dot) com

Q: I can't answer this question, I need input from my colleagues…help?

A: No worries, if you leave the webpage it will save your progress.

Q: What types of companies participate in this survey?

A: Some of the largest tech and tech related companies in the world participate (again total revenue of participants reaches upwards of $1 Trillion), but plenty of companies who may not have as many 0's in their revenue line, but are growing quickly and have exciting products, do participate and receive great value from the deliverables!

Q: Some of this information is kind of confidential, I want to trust you, but can I?

A: As stated above, the CMO Advisory Service has been doing surveys like this for 10+ years. All answers will be kept confidential by IDC and all data will be aggregated for the purposes of trend analysis.  No client or other participant of the study will ever receive your company-specific data and there is no way that any company can "reverse-engineer" the analysis to derive your data input. Your responses will not be used for any other purpose within IDC.

Q:  Ok I completed the survey…so… when do I get the free research?

A: Heh, I knew you'd ask this one. You can expect the deliverables to begin coming out around late March. For clients who are attending our March Board Meeting we will have in depth discussion around the barometer findings (want to know more about these board meetings? Reach out to the CMO Advisory Group team or send me an email).

If you are interested in participating: contact Sam Melnick at smelnick (at) idc (dot) com
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Posted in Benchmarking, CMO Guidance, marketing, Survey, Tech Marketing Benchmarks | No comments

Tuesday, 8 January 2013

IDC's CMO Predictions for 2013: The CMO Becomes Master of Data

Posted on 11:19 by Unknown
Here are our Top Ten calls for 2013.

Please feel free to contact me in 365 days and we can tally up our success rate!

1. The C-suite (CEO, CFO, and COO) will demand that the CMO produce both a strategy and a plan for how market-driven data will significantly contribute to corporate objectives.

2. The CMO and the CIO will begin the year as functional peers and end the year as either friends or frenemies, and per the CEO, the CIO will become more actively involved with the CMO in all marketing automation decisions that have cross-functional implications.

3. The automation outlay could approach 10% of marketing's discretionary budget in 2013, with two-thirds of the total outlay coming from marketing and one-third coming from IT; for "best practice" organizations, this will shift to 50:50 by 2014.

4. Even with their new partnership with the CIO, many CMOs will find that their positions are in jeopardy as they failed to produce a robust data analytics function — or even a game plan to get there.

5. Starting in 2013, after the CMO realizes that he/she does not have the skill sets in place for data analytics proficiency, 50% of new marketing hires will have technical backgrounds.

6. Eight out of ten companies will report that most social media initiative growth is taking place outside of marketing.

7. By the end of 2013, 5% of CMOs will shift to a "mobile first" strategy.

8. Content isn't king — it's a wild beast; In 2013, CMOs will be pragmatic, shifting focus less on big platform projects and more on linking access to audience needs.

9. The demand for greater insight into the revenue impact of marketing and sales will require that older CRM systems be replaced, creating infrastructure disruption.

10. High-tech pipeline conversion metrics will continue to improve; expect a 20% improvement in target-to-deal ratios and a 10% reduction in time to create a customer, with both due to better automation and analytics-driven process improvement.

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Monday, 10 December 2012

#CMOFact: IDC 2013 Marketing Investment Planner

Posted on 13:45 by Unknown

With 2012 coming to an end, for many businesses planning for 2013 will bleed into the New Year. Marketers are no exception; in anticipation of the planning cycle each year, the CMO Advisory Service publishes our annual Marketing Planner in August/September, developing the B2B tech industry's leading marketing (and sales) benchmarking study. To anyone familiar with the industry, you are probably used to hearing that Marketing is transforming. What is so exciting about our Marketing Planner is we are able to provide specific guidance on changes, challenges, and successes within the industry through incredibly accurate industry data and qualitative information provided by you, the senior marketers. Marketers in turn are able to use this information to successfully plan for the upcoming year.

I’ve taken the liberty of pulling out some key facts below from our report that are particularly interesting or useful. Feel free to share them and remember to follow me on twitteror check out the CMOFact hashtag - we will continue to share some marketing goodness there.

#CMOFact Number 1:  In 2012 the average large B2B Marketing organization is in receipt of a 1.7% budget increase. This is 50% LESS than the 2011 rate.

#CMOFact Number 2:  The Marketing Budget Ratio for B2B tech companies has declined each year from 2009 through 2012. Marketing Investment is not keeping up with revenue growth.

#CMOFact Number 3: B2B Tech CMOs are spending approximately 30% of their budget on digital marketing programs. This is up from 12% in 2009. 

#CMOFact Number 4: For Large Tech Companies, only those in Software (vs Services & Hardware) are receiving increased budgets!

#CMOFact Number 5: The marketing automation train is picking up speed, and fast. Jump on now or prepare to be left behind. This is a new category in our survey and is already at 3.1% of programs budget and 1.6% of staff allocations.


These are just 5 nuggets from the 2013 Marketing Planner. The full version includes a complete overview of the current state of the B2B Tech Marketing it includes; program spend, staffing breakdowns, up and coming technology, and forward looking advice. For your own copy, reach out to Wendy Pemberton at wpemberton@idc.comor find it here. 
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Posted in #CMOFacts, B2B Marketing, Budgeting, CMO Guidance, Marketing Automation, Marketing Investment, Marketing Operations, Planning | No comments

Wednesday, 5 December 2012

Brand Strategy Reminders, Regardless of the Size of Your Company

Posted on 10:55 by Unknown
There was something for everyone at MassTLC's recent marketing seminar - "On Brand: What Does it Take?"; if you're building a brand at a $1B+ company like PTC, or fighting your way up the ladder at a smaller company like Actifio or Verivo Software. Here are some of my keys take-aways:

1.  Something for everyone to learn (or to be reminded of)
  • You need buy-in from executives:  The CEO and his/her team need to admit that there's a problem with your brand strategy, and they're on-board to fix it.
  • Be realistic about the costs involved in branding:
    • "The rule of thumb that we used was 2.5X the cost of our marketing investment over a 5 year period."[Jill St. George, PTC]
    • Brand investment is even more critical today with the more mature Buyer 2.0. IDC recommends 50% of all marketing investment be spend on awareness building.
    • Launch activities will touch many aspects of your customer creation process (e.g., collateral, web site, presentations, videos, training)
  • Set targets for your branding effort
    • "Prior to our rebranding effort, only 40% of our company understood our brand.  Our target penetration is 75%."[PTC]
    • "# analyst briefings, web site activity metrics, social metrics"[Parna Sarkar-Basu, Verivo]
    • "increase in revenue per sales rep, time to rep. productivity, # and quality of inbound leads"[Michael Troiano, Acitifio]
  • Don't forget about the importance of keeping sales in the equation!
    • "Stay close to sales!  They can make or break you." [Actifio]
    • Include sales executives and sales operations on your team
  • Tell it with stories:  Nothing speaks louder or sticks with influencers and buyers more than a good, relevant story.  Drop the MBA speak and industry terminology that all of your competitors have, and capture the essence of your company and value it provides in a story.  And most importantly, get your entire organization to communicate these stories. 
2.  Large companies
  • Strive to be a "branded house" and not a "house of brands":  As Jill St. George from PTC pointed out, managing a company with many disparate brands can be significantly more costly than having a single, corporate brand.  And certainly let's not forget the confusion that a house of brands brings to your sales teams and customers as you're attempting to expand your market share and share of wallet at specific customers.
  • Leverage your resources: PTC outsourced much of their brand strategy and design work (e.g., customer and employee interviews, surveys, design work) to Lippincott.  A smart move for any large company in order to rapidly leverage resources versus trying to support this type of significant effort internally, not to mention the expertise that can be attained by working with this type of firm.
  • Align your branding strategy with your sales enablement strategy: Particularly in large organizations, your key to success will be rolling out a 1 to many strategy, and your sales enablement team(s) in marketing and sales can help here.
3.  Small companies
  • Time is of the essence!  The good news is that you don't have as much to do as a larger company in rebranding your organization.  The bad news is that you don't have as much time or resources to accomplish your goals.  Think "months", not "years".
  • Stay connected at the hip with your sales team:  Go on sales calls with the reps, if they like it or not. Test out your ideas, messages and stories with different folks on the sales team.
  • Align your metrics with the company's and sales' targets. There's little time, resources or patience for brand studies, brand awareness metrics or market share analyses at a small company.  Hard line your team's metrics into sales productivity, sales pipeline and revenue targets.
Please share your thoughts below, or email me at Michael Gerard.
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Thursday, 15 November 2012

FutureM: For Marketers, Times They are a Changin’

Posted on 10:51 by Unknown
I attended FutureM in Boston a few weeks ago and the main take away was: Marketing is changing quickly and organizations must grow and adapt, otherwise they will fall behind.

IDC’s CMO Advisory Service has been advising this for some time, but as I read more blogs and attend more marketing based events like FutureM, the reality of overarching change is becoming obvious. IDC’s data points to this as well; investment in Digital Marketing within the Enterprise Tech industry has increased from 12.6% of budgets in 2009 to 29.2% by the end of 2012* - we expect this trend to continue.

Below I have outlined 3 sessions that did a great job of highlighting the change that is taking place. I then took particularly interesting or relevant quotes and expanded on them.

The Future of Social is Action and ROI

“Social has to be collaborative between agencies and the brand – It has to be done for consumer insight and you cannot do it for the sake of just doing it.
                   - Anthony van Dijk, Brand Manager, Global Gillette Venus Base Business, Gillette

This quote hit home with me – as social, and digital in general, continue to mature, marketers must engage with their agency around these topics. However, don’t just check off a box by giving them the set of keys to your online presence and communities. Hold your team and agency accountable; have a specific plan and goals. Almost as importantly, don’t just give your agency a mandate to improve social, work with them and guide them as your brand and goals change. Social is often instantaneous, you cannot expect the undertaking to be a straight line trajectory – be ready to adjust and if you’re expecting deliverables from your agency give them the best chance to help you succeed!

Understand IDC’s guidance for B2B Social Marketing by downloading our report: “Despite the Hype, B2B Social Marketing Is Still in Its Infancy: 2012 Guidance for New Investment Dollars and Staff”

The End of Depth? Marketing Complex Services and Products

“The buyer is on a journey and the vendor is not invited.”
-                    -  Joe Chernov - VP of Marketing, Kinvey

This was one of my favorite quotes of the entire conference - it was provocative and goes against much of what we have been taught as marketers. If you take a broader view, Joe is right, this isn't your father’s “buyer” the tools and knowledge available today have changed everything. Rather than Sales or Marketing holding all the information, social networks, forums, and the rest of the internet can provide the Buyer with a large majority of answers. As IDC has reported in our recent publication, The 2012 IT Buyer Experience Survey: Accelerating the New Buyer's Journey, marketers and sales must be aware of this new reality and adjust their strategies and tactics. Additionally, my colleague Kathleen Schaub wrote a great blog post on Operationalizing Your Buyer's Journey. The report and post both are great places to start on this topic!

DataXu’s Data Brew: The Data-driven Power Shift

“Good professionals let the data speak, if you don’t have good data – don’t make a decision!”
-                     - Chuck Hollis, VP -- Global Marketing CTO, EMC Corporation

Discussion around Analytics and Big Data resonate strongly with me - they are hot topics in the marketing world and can provide immense value. Our group always urges marketers to utilize data any chance they can. However, it is easy to get caught up in the excitement of trying to quickly move projects forward while using data as a guide. Chuck’s quote reminds us to be honest with yourself and be honest in your decision making process, don’t make a decision based on data unless it is telling a clear objective story.

For more information on data driven marketing download IDC’s study “Data-Driven Marketing: A Survey of Marketing Automation Maturity in Global High-Tech Companies”


-------------------------------------------------------

While these quotes give a quick glimpse into a few sessions at FutureM, the entire conference is a reminder that there is a lot of change in Marketing and many technologies and companies can be a huge asset in this transformation. Don’t ignore this change, take time to educate yourself even if it is just a few hours a week to demo a new product or service or view an interesting webinar. Ultimately, as a marketer if you don't start swimming, you risk sinking like a stone. 

You can follow Sam Melnick on twitter: @SamMelnick or contact him at smelnick (at) IDC (dot) com

*Source:  IDC's 2012 Tech Marketing Benchmark Study (full results to be published this quarter)

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Posted in B2B Marketing, Digital Marketing, FutureM, marketing, Marketing Change, Marketing Conference | No comments

Thursday, 8 November 2012

Data Analytics wins 2012 US Presidential Election

Posted on 08:13 by Unknown
Data analytics was the big winner in the 2012 US Presidential race. In fact, 11:17 PM (US ET) November 6th was the moment data analytics went mainstream. This was when Ohio was officially projected to go to Obama. It was the ultimate validation for Nate Silver and his data analytics approach to election forecasting. To much fanfare he accurately predicted the results of the election in all 50 states without doing any of his own polling. He used sophisticated analytic models based on data from as many third party polls he could find. To this he added the secret sauce of data analytics - a keen understanding of how different types of data from different sources relate to one another in context.

His FiveThirtyEight blog drove as much as 20% of the web traffic to the New York Times website - the 6th most visited US news site on the net - leading up to the election. As a result, data analytics is officially mainstream. Any business leader at any level that does not immediately embrace its power is putting his or her career and company in jeopardy.

Data analytics works. It does not produce miracles, but it does produce results that far outperform human judgment on its own. The Obama campaign employed an army of retail data analytics wonks to beat the Romney campaign in every battleground state. They did it by applying analytic techniques proven in the supermarket industry:
  • Standardizing records: Unifying the customer (voter) database
  • Widening perspective: Combining diverse data types: demographics; buying/voting history; response by media; donation/activity by trigger (celebrity dinner), model (contest) and method (mobile); group/church  membership, social networking activity (Reddit), etc.
  • Judicious targeting: Carefully identifying the potential for influencing voters that could influence the election. Not worth targeting easily influenced voters if they don't live in a county that can help swing a state. Not worth targeting difficult to influence voters even if they live in a critical county. This is essential for achieving impact and ROI.
  • Media mix modeling: which media channels have the greatest impact on which kinds of voters?
  • Action oriented outreach: Understanding the specifics of why and how certain people act and designing multiple outreach experiments (progressive offers, channel mix, social references, etc.) based on that.
  • Openness to innovation: data driven models may point to approaches that are counter intuitive for some decision makers. They can seem risky and mysterious. They will not be right all the time. Controlled risk is part of the evolutionary process to effectiveness. Without a tolerance for experimentation however, you will not develop a data driven culture, you will in fact kill it.

Marketers in the world's largest high tech companies are finally acquiring the enterprise data services needed to apply data analytics to long cycle B2B customer creation processes. We are already seeing signs of how significant the impact of these new approaches to marketing and sales can be:

  • $200M EU lift based on a sophisticated solutions recommendation engine
  • 45% more subscription revenue with no increase in a multi-million dollar marketing budget
  • Tens of millions of dollars in revenue uplift from simple web behavioral changes

Embracing data driven decision making is now a matter of survival. You simply cannot win against competitors that have faster, deeper market insight. They will beat you in every stage of the customer creation process. Your marketing will be months behind, your inside sales reps will be calling customers already committed to alternatives, your field sales reps will miss opportunity after opportunity to get more revenue from existing customers. Your funnel will collapse, your pipeline will dry up, your renewable revenue will shrink, and at that point it will be hard to recover. Hyperbole, you say? In the great A/B test of who uses data analytics and who does not, stay in the B group at your peril.

IDC EAG group has done extensive research on the key ingredients needed to create the enterprise data services that are a prerequisite for data driven customer creation and has ongoing research into how to create a data driven culture. To find out more please contact Gerry Murray - gmurray(at)idc(dot)com. 
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Posted in analytics, Best Practices, Big Data, Campaign Management, CMO Guidance, customer creation, Digital Marketing | No comments
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