keeping our seat at the table: a marketing report card

Keeping our seat at the Table:

A Marketing Report Card

Sponsored by:

Safe Harbor

Today’s Agenda

ü  Background

ü  Findings

ü  Conclusions

ü  Next Steps

ü  Q & A

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And the winner is…

Carol O.

LeadMinders.com

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Today’s Presenters:

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Jerry Rackley Chief Analyst

Demand Metric

Alison Gooch Sales Manager

Pardot, a salesforce.com company

Study Sponsor

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Pardot, a salesforce.com company

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Poll Question

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Study Background

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How do we keep our seat at the leadership table?

Marketing

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Research Question:

“What is the status of marketing’s evolution from a lead generation service

bureau to a strategic, center of influence and revenue engine ?”

§  How is marketing perceived internally?

§  What level of influence does marketing have?

§  How is marketing connecting its efforts to revenue?

§  How hard is it for marketing to justify its budget?

§  How “state-of-the-art” are marketing’s skills?

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Survey Categorization Data

Type §  B2B: 76% §  B2C: 14% §  Both: 10%

Role §  President/CEO: 15% §  Marketing: 69% §  Sales: 7% §  Other: 9%

Annual Sales §  $10 million or less: 29% §  $11 to $25 million: 16% §  $26 to $100 million: 19% §  $101 to $500 million: 15% §  $501 to $1 billion: 7% §  Over $1 billion: 14%

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Study Findings

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Internal Perception of Marketing

0%! 10%! 20%! 30%! 40%! 50%! 60%!

Unnecessary expense!

Necessary expense!

Breakeven center!

Modestly profitable revenue center!

Highly profitable revenue center!

Perceive Marketing as an Expense

6%! 8%!

Non-marketers! Marketers!

Necessary!Unnecessary!

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66%! 68%!

Small! Medium! Large!

Expense Perception by Company Size

Marketing’s Contribution

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Contribution to Achieving Business Objectives

None! Slight! Modest! Significant! Indispensible!

Characteristics of “Indispensable” Marketing Orgs

36%!32%!

57%!53%!

Strategic orientation! High/complete alignment! Very/completely analytics driven!

Everyone!"Indispensable"!

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74%!66%!

Contribution by Company Size

Leadership & Respect

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None! Little! Modest! Significant! Leads entirely!

Involvement in Company Leadership & Strategy

Leadership Perception by Company Size 61%!

47%!40%!

Respect Accorded Marketing vs. Other Functions

Less! Same! More!

Non-marketers!Marketers!

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Marketing’s Revenue Impact

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Marketing’s Understanding of its Revenue Impact

39%! 38%!

None! Vague! Partial! Complete!

Everyone!Non-marketers!Marketers!

The Revenue Marketing Journey

ü  Traditional

ü  Lead Generating

ü  Demand Generating

ü  Revenue Generating

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The Revenue Marketing Journey

34%!31%!

Traditional! Lead Generating! Demand Generating! Revenue Generating!

11%!4%!

Very difficult! Difficult! Neither difficult nor easy!

Easy! Very easy!

Difficulty Justifying the Marketing Budget

Marketing Skills

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Marketing Skills

1%!3%!

Obsolete, lagging!

2! 3! 4! 5! 6! State-of-the-art!

ü  Average: 4.8

ü  Average of “Complete understanding of revenue impact”: 5.3

Analytics, Alignment & Orientation

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Extent Marketing Relies on Analytics?

32%!29%! 28%!

None! Slight! Moderate ! Great! Total!

Sales & Marketing Alignment

None! Slight! Modest! High! Complete!

Orientation of the Marketing Function

Very operational! Operational! Balanced! Strategic! Very strategic!

Marketing Infrastructure

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Marketing Technology Landscape

0%! 10%! 20%! 30%! 40%! 50%! 60%! 70%! 80%! 90%!

Other!Marketing attribution!

Data cleaning/validation!Marketing Automation!

Sales Enablement!Social media analytics!

Marketing analytics!Content management/marketing!

CRM!Email marketing!

Looking Ahead

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Changes to Boost Marketing’s Performance

4%!19%!

24%!29%!

31%!32%!33%!34%!

39%!42%!

45%!48%!48%!48%!

0%! 10%! 20%! 30%! 40%! 50%! 60%!Other!

More accountable marketing team!Stronger marketing leadership!

Stronger executive support!Improve marketing's reputation!

More agile marketing team!More empowerment!

Greater leadership role for Freedom to take creative risks!

Training!More marketing oriented company

Add staff!Additional funding!

Additional technology/systems!

Marketing’s Revenue Growth Drivers

X  Technology/Systems

X  Funding

X  Staff

+  Skills

+  Analytics

+  Alignment

+  Orientation

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Conclusions

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Analyst Bottom Line

ü  Analytics are key to transitioning from cost to revenue center

ü  Build state-of-the-art skills

ü  Achieve a high-degree of alignment

ü  Keep the marketing team strategically oriented

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Dialogue welcome:

ü  agooch@salesforce.com msweezey@salesforce.com

@aliglassgooch

ü  www.salesforce.com

ü  @salesforce

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For more information, visit us at:

www.demandmetric.com

Demand Metric Research Corporation #300 - 1275 West 6th Avenue, Vancouver, BC CANADA, V6H 1A6

keeping our seat at the table: a marketing report card

research question

marketings revenue impact

protable revenue center

revenue engine

marketing report card

marketings contribution

leadership perception

company size

Marketing

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