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WHAT WORKS IN B2B MARKETING 2010Original Research on B2B Marketing Budgets, Strategies, Tactics, and Trends From MarketingProfs and Forrester Research

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2MarketingProfs What Works In B2B Marketing 2010

Introduction Marketing is the most rapidly changing business discipline today, due largely as result of advances in information technology. Now, buyers are fully informed about alternative choices in any product or service category, and sellers have complete customer intelligence to establish prospects and customer engagements with the right product and appealing offer at the right time. Throughout this dramatic transformation, MarketingProfs has been devoted to the mission of publishing marketing know-how to produce the best marketers in the world.

To help fulfill our mission, we remain committed to conducting research to explore the trends in the practice of B2B marketing. We are gratified to have collaborated with Forrester Research for the past three years on an annual tracking study focused on strategies and budgets. The research con-sistently identifies changes in what is working, which gives our members insight into best practices and understanding of how to improve their strategies and tactics.

In 2010, for the first time, MarketingProfs supplemented this research with an additional original survey to produce an expanded report on issues affecting B2B marketers. With one of the largest communities of marketers in the world, MarketingProfs can develop surveys with large sample bases, which produce results that more accurately reflect the complete population of B2B market-ers and allowing for detailed analysis of segments. The full report has more than 100 charts, each offering insight into specific questions in various ways to ensure relevance for all marketing challenges.

Combining these two data sources, this short summary broadly covers some of the key develop-ments identified by the research. This document covers only a few trends, with more comprehen-sive reports of specific details to come in future documents.

We welcome your feedback and input to help us give you the information to best serve your needs.

Sincerely,Roy YoungPresidentMarketingProfs


Executive SummaryBoth B2B and B2C marketers have had a rough year. They’ve had to do more with less because of budget cuts and increasingly inefficient traditional media markets. Our study finds, however, that the common trait of the marketers successfully navigating through this hostile climate is great tenacity. And that tenacity is reshaping the way marketers are doing business.

Media plans are leaner, more efficient, and more integrated, and marketing strategies are more likely to be data-driven. Other changes include:

• Marketing budgets are now returning to 2008 levels after a significant decrease in 2009.• Budgets migrated from traditional media to less expensive new media options and “smart”

marketing technology.• B2B marketers were late to the social media party, but quickly became proficient at using

Twitter and LinkedIn to drive sales and generate leads.• B2B marketers are starting to see the benefits of brand awareness now that new media has

made the tactic more targeted, efficient, and affordable.• Investments in marketing technology are on the rise, and a small but growing number of B2B market-

ers are reporting that their companies are aggressive about marketing tech investment in 2010. Though all this hard work seems to be paying off, there is still much to do. Many B2B marketers have trouble handling leads successfully. And investment in database integration, lead nurturing, lead scoring, and CRM technologies is still lagging.


Though deeply slashed in 2009, marketing budgets in 2010 are starting to return to normal. Nearly twice as many of the B2B marketers surveyed in January expect their 2010 budget to be bigger this year (46.2%) than their peers did in 2009 (25%).

10.1%

43.8% 46.2%

33.5%

41.5%

25.0%

0%

20%

40%

60%

Decrease No change Increase

2010 2009

Source: Forrester Research and MarketingProfs Marketing Budgets and Tactics Survey Methodology: Online survey of 416 B2B professionals in January 2010 and 656 B2B professionals in January 2009 Chart Base: B2B marketing professionals, 2010 n=416, 2009 n=656

Expected Budget Change for next Year vs. Prior Year Q: Do you expect your marketing program budget to change?


B2B marketers have a reputation for being fairly conservative regarding marketing budgets and tactics. With increasing budgets and rapid changes in the media landscape, B2B marketers are becoming more aggressive with their marketing technology investments.

12.5% 16.8%

39.2% 37.2%

32.0% 32.5%

16.3% 13.6%

0%

20%

40%

60%

80%

100%

2010 2009

Very Aggressive: We Frequently Adopt Emerging Technologies

Somewhat Aggressive: We Adopt Technologies That Prove Effective

Not Very Aggressive: We Adopt Technologies in Line With Trends

Not at All Aggressive: We Only Adopt Tried and True Technology


Aggressiveness of Company Investment in Marketing Technology

Q: How aggressive is your company when it comes to investing in marketing technology?


Lead generation (53.2%) and increasing awareness (46.5%) came in as the top two challenges of 2010. B2B marketers are hungry for new business, but the question is how to get it. We will examine this next.

“Improving lead quality” came in strong at 43.3%. However, most B2B marketers are still “con-sidering” investment in the technology and tactics to make this happen than are actively investing. This is likely the unfortunate side effect of number five on the list: “working within budget and/or economic constraints.”

21.3%

21.5%

23.3%

23.3%

26.7%

27.0%

27.7%

34.2%

34.9%

39.4%

43.3%

46.0%

46.5%

53.2%

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

Improving Customer Data Quality and Availability

Deepening Insight/Relationships with Existing Customers

Allocating the Marketing Budget Across the Mix

Making Partner Relationships More Productive

Enabling Sales Better, Improving Sales Support

Understanding Buyer/ Prospect Behavior

Retaining Customers, Developing Loyalty

Developing the Company's Brand

Demonstrating Marketing Results/ Impact on the Business

Working Within Budget and/ or Economic Constraints

Improving Lead Quality

Reaching Decision Makers

Increasing Product/ Service Awareness

Generating More Leads

Source: Forrester Research and MarketingProfs Marketing Budgets and Tactics Survey Methodology: Online survey of 416 B2B professionals in January 2010 Chart Base: 416 B2B marketing professionals

Top B2B Marketing Challenges in 2010 (Please select up to five responses)


Because B2B marketers are almost obsessive about leads, we asked them what the most effective traditional/offline marketing tactics for generating leads are. Despite tried and true sales calls remain-ing stable and strong, we found quite a shake-up in the data for other media year over year. Hosting executive events dropped from first to third place (∆ - 13.5%), while PR (∆ - 10.3%), TV (∆ - 14.3%), and radio (∆ - 9.9%) all took major hits. The only traditional media option that saw real positive movement is in-person meetings at trade shows and conferences (∆ + 11.4%).

7.8%

17.6%

25.8%

10.5%

11.6%

24.5%

16.8%

49.7%

28.7%

46.3%

6.9%

7.7%

11.5%

12.7%

13.3%

14.2%

19.0%

36.2%

40.1%

47.6%

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

Print Advertising

Radio

TV Advertising

Sponsorships

Outdoor Media

Public Relations

Direct Mail

Executive Breakfasts, Seminars and Events

Tradeshows, Conferences (In Person)

Inside Sales/Telemarketing (Internal or External)

2010

2009


Traditional/Offline Marketing Tactics Found Highly Effective for Generating Leads 2009 vs. 2010

(% Finding Tactic "Highly Effective")


The study showed some positive movement and continued strength in using online marketing options, such as webinars and webcasts (35.8% “highly effective”), for generating leads. The workhorses of nearly every online marketing plan—search, email, and a corporate website— demonstrated continued strong performance. Newer entrants to the marketing mix, such as social networks and widgets, did not see such strong numbers, even though social networks still managed to outperform PR. Also, podcasts and rich media outperformed TV advertising, and blogs beat out print.

3.8%

13.1%

10.7%

6.6%

19.5%

25.1%

30.7%

28.1%

20.8%

33.1%

5.0%

8.2%

10.4%

10.5%

10.5%

12.7%

15.3%

15.5%

24.5%

27.9%

33.1%

35.8%

0% 10% 20% 30% 40%

Other Web 2.0 tools: RSS subscriptions, mashups, widgets, wikis

Online video (i.e. YouTube, corporate)

Twitter*

Blogs

Online display ads: banner, pop-ups

Discussion forums, social networks, or communities*

Discussion threads, support forums*

Podcasts or other rich media*

Social networks or online communities (i.e. LinkedIn)*

Email or electronic newsletters

Company Web site

Search marketing (includes search engine optimization and paid placement)

Virtual trade shows*

Webinars, webcasts

2010 2009

Source: Forrester Research and MarketingProfs Marketing Budgets and Tactics Survey Methodology: Online survey of B2B Professionals, 416 responses collected January 2010 and 656 collected January 2009;* question not repeated in both 2009 and 2010 Chart Base: B2B Marketing Professionals: 2010=416; 2009=656

Online Marketing Tactics Found Highly Effective for Generating Leads 2009 vs. 2010

(% Finding Tactic "Highly Effective")


In March 2010, MarketingProfs Research surveyed a second group of B2B marketers. Looking at how media is working out, we simultaneously compare use, volume of sales, and ROI. By placing offline and online media vehicles on the same playing field, we can quickly see what is performing—and what is not. In the upper-right-hand corner, email marketing to house lists and online content show that they are performing well. Both have high usage, strong ROI, and relatively high volumes of sales. However, email list rentals do poorly despite the otherwise strong return on email marketing. Advertising in someone else’s email newsletter scored high marks for ROI but low volume of sales. The second tier appears to be search, direct mail, and print advertising. All provide a high volume of sales, but print lags a little on reported ROI. Online-only PR performs well (just a bit better than traditional PR). Mobile and out-of-home did reasonably well but have relatively low usage numbers. Both managed to beat out TV advertising and online display advertising.

Radio Advertising

32.5%

E-newsletter Advertising

(not your list) 43.1%

Online Display Advertising

52.6% Television Advertising

27.4%

Traditional Public Relations

75.5%

Online-Only Public Relations

(including social media) 78.1%

Mobile Advertising, Including Apps

26.3%

Out-of-Home Advertising

(billboards or digital signage) 32.1%

Direct Mail (snail mail)

60.2%

Search Engine Marketing

(PPC & SEO) 76.6%

Print Advertising

67.5%

Email Marketing (your own list)

89.4%

Online Content (websites, blogs,

podcasts) 91.2%

1.25

1.50

1.75

2.00

2.25

2.50

2.75

3.00

3.25

2.75 3.00 3.25 3.50 3.75 4.00 4.25 4.50

RO

I

Sales Volume

Bubble size represents % Use

Source: MarketingProfs March 2010 Survey Methodology: Online survey of 3,449 MarketingProfs readers Chart Base:274 B2B marketing professionals

B2B Marketers Rate Media by Volume of Sales and ROI For sales volume, 1 = very low volume, 10 = very high volume

For ROI, - 5 = very bad ROI, + 5 = very good ROI, 0 = break even

Traditional Media Digital Media


With 15.5% of B2B marketers finding social networks “highly effective” for generating leads, they clearly deserve attention. However, social networking for business can be a nebulous topic. The term is often defined differently from one person to another or one business to another. For this reason, we broke out different types of social media activities to find out which is getting more attention from B2B marketers. Social activities that combine a one-to-many broadcast element with one-on-one interaction seem to be the most popular (62.9% plan to use more), while virtual worlds, such as Second Life, garner significantly less enthusiasm among B2B marketers (38.4% plan to use less).

4.5%

13.4%

19.8%

22.3%

31.4%

48.3%

53.7%

62.9%

57.2%

64.6%

57.2%

55.0%

57.4%

42.3%

39.4%

30.4%

38.4%

22.0%

23.0%

22.8%

11.1%

9.4%

6.9%

6.7%

0% 20% 40% 60% 80% 100%

Virtual Worlds (Second Life, etc.)

Wikis (e.g., Wikipedia, Vendor Sponsored, etc.)

Private or White-Label Online Community Sites

Virtual Trade Shows or Virtual Conferences

Discussion Threads, Support Forums

Microblogs (Twitter, etc.)

Blogs

Open, Public Social Networks (Facebook,

LinkedIn, etc.)

Plan to use MORE of this tactic

SAME use in the 2010 mix as compared with 2009

Plan to use LESS of this tactic

Source: Forrester Research and MarketingProfs Marketing Budgets and Tactics Survey Methodology: Online survey of 416 B2B professionals in January 2010 Chart Base: 404 B2B marketing professionals

Expected Change in Use of Social Media Tactics for 2010


Looking at how B2B marketers are using social media and comparing that to the full sample of all marketers, we see again a huge emphasis on lead generation. B2B marketers are slightly more likely than average to be concerned with using social media to increase brand awareness. This reflects a particular savviness among the group, given that the main deterrent to the strategy has traditionally been the high cost of reaching niche targets within broadcast media, an obstacle that social media easily overcomes.

0.8%

2.4%

1.6%

3.3%

4.1%

4.1%

6.5%

10.6%

7.3%

17.9%

41.5%

0.8%

2.3%

2.5%

3.3%

4.0%

5.3%

9.0%

12.1%

14.6%

17.3%

28.9%

0% 10% 20% 30% 40% 50%

Increasing Staff and Budget to Support our Social Media Strategy

Not Applicable

I Don't See Any Value in Marketing Through Social Media

Not Sure

Tracking My Social Media Efforts Back to Bottom-Line Business Benefits

Finding the Right Tools and Services to Help Me Market Using Social Media

Building Positive Sentiment About My Company and Products

Building customer Loyalty and Retention

Developing a Strategy for How to Best Leverage Social Media

Increasing Brand Awareness

Lead Generation and New Customer Acquisition

% of Total

% of B2B Marketers

Source: MarketingProfs March 2010 Survey Methodology: Online survey of 3,449 MarketingProfs readers Chart Base: 398 marketing professionals, 123 B2B marketing professionals

Most Important Social Media Marketing Goal for 2010 B2B Marketers vs. All Marketers


A by-product of focusing on lead-generation is an onslaught of data and a pool of prospects that are often too large for sales staff to handle efficiently. Happy with neither the drought of leads before alead-generation campaign nor the monsoon of often poorly converting leads after one, sales depart-ments have increasingly been turning to technology to help automate the process, triage leads, keep relationships fresh through long purchase cycles, and more efficiently use their time on the phone and in person. Surprisingly, B2B marketers are actually less likely than average to take advantage of many of these technologies. However, this is a huge area of opportunity for B2B marketers hoping to increase the effectiveness and efficiency of their sales funnel.

33.7%

37.4%

18.0%

12.5%

41.3%

43.5%

25.2%

21.9%

34.2%

32.5%

33.7%

33.0%

36.6%

46.4%

28.0%

31.3%

35.4%

40.4%

34.2%

33.3%

32.6%

29.6%

45.4%

41.1%

30.7%

25.2%

39.4%

37.7%

31.6%

34.2%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Total

B2B

Total

B2B

Total

B2B

Total

B2B

Total

B2B

Lead

Nur

turin

g Le

ad S

corin

g Le

ad

Man

agem

ent

Mar

ketin

g A

utom

atio

n D

atab

ase

Inte

grat

ion

Currently Using Considering, But Not Using Not Currently Using


CRM and Database Marketing Tactics Used in 2010 B2B Marketers vs. All Marketers


B2B marketers have an advantage over other marketers in organizational integration. They are particularly successful at integration during the early stages of marketing, with 48.2% reporting that they are “very integrated” in the creative strategy phase, and 45.5% reporting the same during the media planning phase. Being “very integrated,” however, drops into the mid-30% range for analytics, attribution of sales to marketing, and customer relationship management. There is an opportunity for improvement for any willing to invest the mental energy and appropriate budget into database integration, lead nurturing/scoring, and an integrated CRM program.

27.0% 31.5% 32.5% 34.6%

23.9% 20.8%

24.2%

38.9%

48.2% 45.5% 44.5%

35.8% 31.8%

35.8%

0%

20%

40%

60%

Research and Planning

Creative Strategy Media Strategy Marketing Execution

Marketing Analytics Attribution of Sales to Marketing

Customer Relationship

Management

All Marketers B2B Marketers


Incidence of "Very Integrated" Marketing Organizations by Process B2B Marketers vs. All Marketers

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