Transcript The 7th IDM B2B Marketing Conference

HEADLINE SPONSOR
ASSOCIATE SPONSORS
Marketing
Effectiveness
Matthew Palmer,
Deloitte Consulting
MARKETING AND MEDIA PARTNERS
Matthew Palmer
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Head of Deloitte’s Financial Services Marketing
practice
Leads Deloitte’s offerings on brand, marketing cost
reduction and operating models
Background in consulting and advertising
Typical projects include:
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Corporate transformation
Brand valuation and optimisation
Sales and marketing effectiveness
Channel strategy
Operating model improvement
Clients include:
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Lloyds Banking Group, HSBC, Aviva, Standard Chartered
Bank
IBM, Microsoft, Sony, BT, Vodafone, T-mobile, Siebel, SAP
Diageo, Pernod Ricard, Habitat, Royal Mail, Centrica, VOSA
The 7th IDM B2B Marketing Conference
What will we cover today?
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What has changed and what has stayed the same post recession
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How to get your marketing budget approved - and the executive board on
your side
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How to increase marketing ROI
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How to cut costs without slashing performance
The 7th IDM B2B Marketing Conference
Which trends have changed, which have stayed the
same
Marked change in trend
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Increasing power of individuals
on corporate buying decisions
(especially in FS and
technology)
Longer sales cycles
Wider DMU
Exploitation of social media and
opinion management
Continuation of trend
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Getting marketing’s voice heard
Focus on lead quality and
management
Getting sales and marketing
working together better
Cost cutting and effectiveness
Accountability and measurement
Channel and partner
management
Differentiating offerings
Making global work
The 7th IDM B2B Marketing Conference
We will focus on three main areas
Marked change in trend
•
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Increasing power of individuals
on corporate buying decisions
(especially in FS and
technology)
Longer sales cycles
Wider DMU
Exploitation of social media and
opinion management
Continuation of trend
•
•
•
•
•
•
•
•
Getting marketing’s voice heard
Focus on lead quality and
management
Getting sales and marketing
working together better
Cost cutting and effectiveness
Accountability and measurement
Channel and partner
management
Differentiating offerings
Making global work
The 7th IDM B2B Marketing Conference
Getting marketing’s voice heard
In order to help the organisation attain its goals Marketing needs to be
able to influence at board level
The challenge facing marketers is making sure the rest of the business
understands the value they create.
Our research found that C-level execs do not have a common
understanding of marketing and its role in the company
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The CMO’s view
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The CFO’s view
The 7th IDM B2B Marketing Conference
The CEO’s view
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Board level views of marketing are mixed
81%
of CEOs identified
marketing as a key
driver of growth
84%
of CEOs identified
marketing as being
crucial to devising
strategy
1in3
CFOs did not believe
that marketing is
crucial in determining
strategy
16%
of Board level
discussions are about
marketing according to
CMOs.
CEOs believe that the
figure is nearly
at 33%
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double
Impact of marketing’s lack of influence
Seen as a cost
Limited voice
Not seen as
‘Commercial’
Not involved in key
decisions
Constant pressure to
justify expenditure
and reduce costs
Link between
marketing metrics and
company performance
not understood
Budgets frequently
rejected or slashed
The 7th IDM B2B Marketing Conference
Marketing gets its budget approved when it:
• Actively engages with Finance and other functions throughout the
year
• Uses easy to understand metrics to show outcomes of past
programmes and how these relate to proposed activities
• Can explain where and how money is spent
• Uses zero based budgeting linked to specific programmes and
outcomes
• Prioritises its own spend with stretch and retrenchment options
• Presents options to stop some activities to pay for others
• Clearly links programme outcomes to corporate targets (eg revenue
growth, EBITDA, free cash flow)
The 7th IDM B2B Marketing Conference
CMOs recognise this as an issue and are trying to
improve measurement and accountability
CMOs acknowledge that accountable and effectiveness are
important
Analysts predict that marketing accountability and effectiveness
will become increasingly important
What are your top three marketing issues?
44%
39%
34%
28%
24%
‘By 2012, the CMO’s priorities will shift from
creative brand building to an accountable,
business-oriented, customer loyal-driven focus in
55% of organizations’
‘Financial accountability will be an imperative for
60% of marketing’s budget by 2012, up from less
than 20% in 2007’
‘Marketing strategy and processes will need to
change radically during the next 5-10 years in
order to answer to pressures to manage costs and
drive revenue’
The 7th IDM B2B Marketing Conference
How to cut costs while increasing revenue and profits
The 7th IDM B2B Marketing Conference
Cost cutting
The 7th IDM B2B Marketing Conference
Some common cost cutting mistakes
• Cutting costs by the same amount across the board
• Choosing an arbitrary percentage cut
• Trying to do everything with less money
• Failure to plan for budget challenges like ‘tell me what you could do
with 20% less money”
The 7th IDM B2B Marketing Conference
So what works?
• Improve your focus: concentrate on the areas that add most to your
business
• Only pay for what you need
• Make sure you get what you pay for
• Instil a real culture of fact based decision making, and act on it
• Become more accountable
• Improve relationships with the rest of the business, especially
finance
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Improve focus
Increase Shareholder Value
Value
Drivers
Maximize
Brand Equity
Strengthen
Brand Value
Leverage
Brand
Value
Operating Margin
Revenue Growth
Asset Value
Optimize
Pricing
Maximize
Price
Potential
Capture
Price
Potential
Retain & Grow
Current Customers
Increase
LENGTH
of Current
Relationships
Increase
VOLUME
of Current
Relationships
Increase
BREADTH
of Current
Relationships
Acquire
New Customers
Increase
Share in
Current
Customer
Segments
Penetrate
New
Customer
Segments
Be clear how your programmes, products and
target customers contribute to corporate
objectives
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Profit From Higher
Margin Products /
Customers
Create
Innovative
Products
&
Services
Realign
Products
&
Channels
Optimize
Marketing Spend
Improve
Marketing
Program
Spend
Efficiency
(MRM)
Optimize
Marketing
Resources
Get what you pay for, only pay for what you need
• 3rd party suppliers services and SLAs
• Don’t over-specify or gold plate
• Standardise where heterogeneity doesn’t pay
• Many suppliers are trying to grab share coming out of the downturn:
use this to negotiate
• Demonstrate your control over marketing spend to the CFO and
finance community
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Make decisions based on facts, become more
accountable
• Understand how your money is being spent
– Audit of marketing spend based on effectiveness and value
• Test, analyse, learn and implement
– So you can maximise returns on your marketing spend
• Use the knowledge to approach the leadership team to discuss
opportunities for cost reduction or growth
• Involve finance, commercial and other parts of the business to
create joint programmes
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Increase revenue and profits
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Most effective changes to boost revenue and profits
are often
• Improve lead management
– Quality
– Fix leaky buckets
– Recycle leads
• Focus on winning brands, products and segments
• Free up local offices to be entrepreneurial within the overall
company strategy
• Introduce formal programmes to iudentify what works in your
organisation and roll it out
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Further information
Marketing in 3D Report
Structural Cost Cutting in Marketing
Read the summary of key findings from our latest
Read the summary of key findings from our latest
research
research
Marketing in 3D Benchmark
Contact
Take part in our new online Marketing in 3D Benchmark
survey
Matthew Palmer
www.deloitte.co.uk/marketing
Mob: +44 (0) 07764 939920
Tel: +44 (0) 207 007 7293
Email: [email protected]
The 7th IDM B2B Marketing Conference