embracing marketing operations: what is it and why bother

Embracing Marketing Operations:What is It and Why Bother?

About Your Guide: Gary M. Katz

© 2012 Marketing Operations Partners, Inc. All Rights Reserved.

• Founder and Chief Strategy Officer of Marketing Operations Partners

• First ready-to-go COO and change management team for the marketing department

• Chairman of Marketing Operations Future Forum

• 20+ years experience leading corporate marketing,

• marcom, PR, IR, demand gen & change management

• Certified Strategic Planning Process Facilitator (ICA)

• Noted educator, author, speaker and leader in Marketing Operations field

• MS in Organization Development, BA in Public Relations

The Motivation to Change Marketing’s MO

• Defining Marketing Operations

• Marketing Operations: Rising to the Challenge

• A New Vision for Marketing

Webcast Overview


The Motivation to Change Marketing’s MO


• Your metrics for success are ill-defined

• Your people are slammed

• Your institutional memory is leaky

• Your innovation and creativity are suffering fromconstipation

• Your team, cross-functional or supplier relationships are poorly-aligned

• Your decision-making process is tough to justify

• Your marketing portfolio is not delivering expected results

You Know Your Marketing Resources (and Job) are at Risk When…


Measure Marketing ROI & Demonstrate Value

Measure Marketing ROI & Demonstrate Value

Common Goals for Marketing Success Tied to Other Groups

73%

60%

Justify Marketing’s Role & Contribution to C-Level Executives

Marketing Processes Enable Internal Efficiencies & Effectiveness

Collaboration & Synergy Supported By Corporate Environment

Coordination of Shared Processes Across Functions

Continuity to Maintain Institutional Knowledge & Expertise

Assimilate & Integrate Resources Obtained From M&A

57%

49%

42%

26%

22%

12%

© 2012 Marketing Operations Partners. All Rights Reserved.

High-Priority MO Challenges Emphasize Metrics, Strategy, Cross-functional

Source: Journey to Marketing Operations Maturity Benchmarking Study, Marketing Operations Partners

Scaling for Growth

EnterpriseStrategic Agenda

Customer Profitability

BuyingAcceleration

Accountability Alignment withStakeholders

MarketingIntelligence


Why Marketing Operations is Critical

• Marketing Operations (MO) is a thorough, end-to-end operational discipline that leverages processes, technology, guidance and metrics to run the Marketing function as a profit/value center, growth driver, change agent and fully-accountable business.

• MO reinforces Marketing strategy and tactics with a scalable and sustainable enabling infrastructure, as well as nurturing a healthy, collaborative ecosystem, both within and outside the Marketing department, to drive achievement of enterprise strategic objectives.


Defining Marketing Operations

• Change management

• Total Quality Management

• Manufacturing

• Organizational reengineering

• IT

• Statistical analysis

• Customer experience management

• Enterprise resource management

• Knowledge management

• Sales pipeline management.

Marketing Operations Encompassesa Board Body of Knowledge


Marketing Intelligence

Customer Profitability

• Marketing Org. Assessment• Predictive Analytics• Business Intelligence• Competitive & Industry

Benchmarking

• Voice of the Customer• Customer Experience Management• Customer Reference Dev.• Customer Loyalty/Affinity• Win-Loss Analysis

Enterprise Strategic

Innovation & SalesAcceleration

• Marketing Planning & Ops Reviews• Marketing Charter Definition• Change Management• Socialization & Community Building• Leadership Council• Circles of Excellence• Marketing & Brand Governance• CMO Communications

• Sales Pipeline Optimization• Lead Scoring & Nurturing• CRM• Campaign Management• Product Lifecycle Management

Effective Marketing Operations Requires a Diversity of Subject Matter Expertise


Scaling for Growth

• Process Mapping & Design• Marketing Automation• Knowledge Management• Tool and Template Dev.• Best Practices Documentation• Centers of Excellence• Marketing Competency Dev.• Roles & Responsibilities

Clarification• Team Mix Modeling• Marketing Org. Reengineering• Marketing Resource

Optimization• Supply Chain Management

Accountability

• Metrics and KPI Definition• Dashboard Development• Performance Measurement• Marketing Portfolio Mgt• Budget Mgt & Justification

Alignment withStakeholders

• C-Level Buy-in• Sales Alignment• Finance/IT Alignment• M&A Assimilation

And Even More Subject Matter Expertise!


• Brings a long overdue operational focus to Marketing

• Provides the CMO with an operational partner, a Chief of Staff

• Applies proven, time-tested Best Practices and Business Processes

• Drives Efficiency, Consistent Results

• Provides solid foundation for Marketing Excellence

The Benefits of Marketing Operations


Lack of Confidence inBusiness Intelligence

Challenge:Converting Insight into Value


Marketing Operations: Rising to the Challenge

Lack of Confidence in Business Intelligence

Benchmark Best Practices

Validate Market Demand

Assess Insight/

Opportunity Gaps

Baseline What We Know/What We

Don’t MO BreedsActionable Insight and Innovation


Solution:Converting Insight Into Value

The Price of Acquiring & Keeping a Customer is Growing


Challenge:Maximizing Customer Profitability

The Price of Acquiring & Keeping

Customers is Growing

Calculate Customer Lifetime Value

Capture Customer Decision Drivers

Win Back At-Risk Customers

Mobilize to Meet Customer Expectations

MO Delivers

Customer Experience


Solution:Maximizing Customer Profitability

Every Strategy/Budget Cycle-- a Free-for-All


Challenge:Delivering the Strategic Agenda

Catalyze Shared Vision

Strategy / Budget Cycles are Free-for-Alls

Ensure Message Integrity

Live the Brand

SocializeMarketing Change

MO RealizesStrategy


Solution:Delivering the Strategic Agenda

No or Slow - Growth...Disappointing Revenue Results


Challenge:Accelerating Selling/Buying Process

No or Slow Growth

Integrate Buying/Selling

Cycle

Feed Sales Pipeline

Optimize Sales/ Marketing Hand-offs

Leverage Loyalty Assets

MO Aligns Sales/

Marketing Effort


Solution:Accelerating Selling/Buying Process

Marketing in Reaction Mode


Challenge:Scaling Marketing for Growth

Marketing in Reaction Mode

Diagnose Marketing Health

Architect Enabling Shared Processes

Optimize Marketing Investment

Develop Marketing Competency

MO MObilizes Resources


Solution:Scaling Marketing for Growth

Marketing on Defensive to Show Contribution

“Much of what marketing can contribute right now is seen as less tangible because we lack the metrics” – Dawn Hudson, CEO, Pepsi North America


Challenge:Demonstrating Return on Marketing

Marketing on Defensive To Show

Contribution

Align Marketing/Enterprise

Objectives

Track Individual and Team Performance

Fine-tune Forecasting thru Predictive

Analytics

Define and Track Key Metrics via

Dashboards

MO Enables Account-

ability


Solution:Demonstrating Return on Marketing

A New Vision for Marketing

Enlightenment


Fundamental MO

Expanded MO

Sophisticated MO


Budget Management CRM Marketing ServicesMeasurement Vendor Management

The Progression of Mo Maturity

Ecosystem Alignment

MetricsProcessGuidance

Infrastructure Management

Technology

Strategy

EcosystemAlignment

MO Best Practice Framework


Profile of Best Practice Firms in Marketing Operations

• Marketing full partner to CEO, other CXOs

• Helps formulate & achieve company strategy

• Proactively defines meaningful metrics

• Shows return on Marketing contribution to company success

• Marketing drives innovation, new market penetration & customer profitability

• Tight alignment with R&D, sales & customer service

• Builds CLV, VOC intelligence & pipeline of references

MO Vision: Change the Modus Operandi - 1


• Marketing owns sales leads process

• Nurtures prospects through sales funnel

• Removes barriers that block end-to-end visibility

• Marketing, once operationalized, leads the growth charge

• Provides agility & effective response to opportunity

• Leverages best practices, process & technology to scale organization

• Synchronizes effort & ensures cross-functional knowledge-sharing

MO Vision: Change the Modus Operandi - 2


Is Your Organization Ready for MO? - 1

CHARACTERISTIC PAIN VISION

SubstantialmarketingInvestment

Unmanageable complexity, difficulty demonstrating ROI, Marketing on defensive

Optimize to deliver substantial ROI• Leverage processes, technology,

guidance & best practices to spur productivity, knowledge sharing

• Utilize dashboards & metrics to make informed spend decisions

Recognized by C-team • For accountability & ROI contribution

Dynamic competitive market

No ordisappointing growth, super growth, high customer churn & employee turnover

Marketing aligns w/other functions• Nurturing sales funnel• Revenue targets• Innovation process• New market penetration• Customer experience




Undermedia orregulatoryScrutiny

Compliance pressure, impact of change on compliance, media magnifying glass

Partner with Quality, Finance, IR• Map key processes• Document best practices• Apply LEAN, 6 Sigma, etc.• Demonstrate ROI through KPIs,

dashboards, etc.

M&A integration challenges

Duplicated efforts, loss of continuity, “everything’s urgent”, hard to get buy-in for initiatives

Marketing leads initiatives• Communications leadership• Walking the talk





More tactical than strategic

Firefighting, CYA behavior

Marketing is valued strategic partner to CEO and C-team

- Growth driver- Change catalyst

+

Product Promotion

Price Place

Customers

Competitors

Corporation

Positioning

Source: © 2007, Adrian Ott, Exponential Edge© 2012 Marketing Operations Partners, Inc. All Rights Reserved.

The Future: A New Maturity Model: You`ve Heard of the 5Ps and 3 Cs of Marketing

1. Total Strategy

2. Techniques and Processes

3. Tracking & Predictive Modeling

4. Technology

5. Talent

4Ps 3Cs

MarketingEffectiveness

5Ts

Source: © 2007, Adrian Ott, Exponential Edge© 2012 Marketing Operations Partners, Inc. All Rights Reserved.

More Recently, We Saw the Unveiling of the 5Ts of Marketing Operations™

The 5 P’s +The 3 C’s +The 5 T’s

= 13

The entry age into adulthood in certain cultures


The Addition of the 5 T`s is Marketing`s Rite of Passage

Discipline #1 - Personal mastery

Discipline #2 - Mental models

Discipline #3 - Shared vision

Discipline #4 - Team learning

Discipline #5 - Systems thinking

The 5 D’s

Source: The Fifth Discipline: The Art & Practice of the Learning Organization© 2012 Marketing Operations Partners, Inc. All Rights Reserved.

The Next Step in Marketing`s Evolution is to Embrace Insight from Learning Organizations

3 C’s5 P’s

5 T’s

5 D’s

The Power of 18


Adding the 5 D`s Leads to a New Level of Generative Learning and Marketing Maturity

See What Marketing Ops Thought Leaders are Saying!

Benchmarking study:adopt best practices,

avoid pitfalls,build your MO roadmap!

MOpartners.com/resources/store

Follow our blog!

MOpartners.com/blog

tinyurl.com/Mktg-Ops

Online talk show with execs from Autodesk, Clorox,

Genworth, NetApp, … and more!


Jump-start Your Organization’s Awareness of Marketing Operations Improvement Opportunities

Socialize your assessment results through this coffee table book with more than 2 dozen analyses and recommendations. Excerpts from 88‐page MO:DNA report:

www.MOpartners.com/resources/MO-DNA© 2012 Marketing Operations Partners, Inc. All Rights Reserved.

Advance Your Expertise in Marketing Operations

1) Impact & Promise of Marketing Ops

2) Mobilizing Strategic Impact for Corporate Growth

3) Designing Marketing Infrastructure for Results

4) Journey to Marketing Ops Maturity

Marketing Operations Essentials: 4 modules available online, in‐person, or hybrid

www.MOpartners.com/resources/© 2012 Marketing Operations Partners, Inc. All Rights Reserved.

Join the Marketing Operations Future ForumThe Forum takes you on a discovery process that alters your viewpoint to manage any aspect of marketing more efficiently and effectively

www.MOfutureforum.com© 2012 Marketing Operations Partners, Inc. All Rights Reserved.

Let’s Keep in Touch!

tinyURL.com/MOfutureforum@[email protected]/Mktg-Ops

[email protected]

US +1 408 243 7881London +44 (0)20 7193 7682Singapore +65 8183 4022


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