© 2009 MarketSphere Consulting, LLC From Planning to Execution: The Strategic Advantage of Efficient Marketing Operations May 21, 2009
May 13, 2015
© 2009 MarketSphere Consulting, LLC
From Planning to Execution:The Strategic Advantage of Efficient Marketing OperationsMay 21, 2009
© 2009 MarketSphere Consulting, LLC 2
Agenda
• Introduction• What’s on your CMO’s Mind?• Model for a Marketing Operations Center of Excellence• Metrics and measurement of marketing programs
– Results from 2009 Lenskold Group study
• What can I do next?• Questions and Answers
The Strategic Advantage of Efficient Marketing Operations
© 2009 MarketSphere Consulting, LLC
Marketing Planning to Execution ModelEfficient processes are critical to success
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© 2009 MarketSphere Consulting, LLC 4
IntroductionExample of a high-level marketing supply chain
BUILDSUPPLY
TextGraphics
VideoAudio
PicturesData
Source: Existing, Created, Purchased
or Licensed
DEMAND
Product ManagersMarketing ManagersHuman Resources
SalesField Marketing
FinanceManufacturing
Corp. CommunicationField Offices
Foreign Offices
PLAN OBJECTIVESGATHER/ANALYZE INFORMATION
IDEATIONWRITE CREATIVE BRIEF
4) Produce
1) Create, gather, edit component materials
3) Review & Approve
5) Distribute
2) Integrate
6) Report and evaluate
REQUEST
ENTER WORKFLOW
Primary or Secondary Market Research-----------------------
Database Analytics-----------------------
Past Results
Knowledge Repository------------
KPI’s
CHANNEL
Mass AdvertisingDirect Response
Website & Social MediaCollateralPackaging
Point-of-Sale
FULFILLMENT
Response or Action
DigitalAsset Library
-----------Content Manager
© 2009 MarketSphere Consulting, LLC 5
IntroductionExample of a mid-level marketing process map
Business Unit-------------------
Need Identified
Marketing Planner---------------------
Review & Develop Marketing Charter
Creative Brief
Media Brief
Campaign/Program Development
ProductionIn Market/Go Live
Track & Report Results
Close Campaign/After-Action Review
A B C1 D
H G F E
Optimize Campaign
Project Brief
Agencies/Vendors
Other projects, including Customer Communications
Customer sales and campaign response data, ROMI analytics
Messaging & Media Plans
Corporate Marketing PMO
Financial Investment
C2
This chart represents an aggregate view of the flow of marketing campaigns through Corporate Marketing in a hypothetical company.
© 2009 MarketSphere Consulting, LLC 6
A marketing operations challenge A story from my past
$2.5 Billion global software company with 375 products/16 product lines
• Problem: Marketing materials needed to support field sales activities were almost never on-time, direct mail was dropping late, there was “chaos” and not order in the MarCom area as priorities changed hourly. Late fees were the routine and staff was stressed.
• Challenge: Establish a process that ensured all marketing materials are created and distributed on time to meet marketing objectives.
• Solution– Established standards and key milestones for each type of activity– Established a quarterly planning process – forward looking 4 quarters (2/2)– Built a home-grown Marketing Ops application that organized projects and
provided reports and status to all marketing stakeholders (published weekly on Monday)
– Enlisted EVP Marketing to support change
© 2009 MarketSphere Consulting, LLC 7
Transformational successProven results
HelpPeopleChange
ApplyTechnology
ImproveProcess
Result: 90-day changeover to a fully integrated plan, improved on-time delivery of projects from 50% to 89%, reduced rush and re-work charges $1.2 Million.
• 4 Qtr Planning Horizon
• Integrated Calendar
• Standards
• Management tool to track projects
• Reports based on Milestones
• Weekly Report & Red Flag Status
• EVP Support
• Deliver as Promised
© 2009 MarketSphere Consulting, LLC
What’s on your CMO’s mind?
© 2009 MarketSphere Consulting, LLC 9
Issues facing the CMO and Marketing
• CFO wants visibility into marketing performance– “What is all this money buying?”– CEO and Board demand more accountability– Sarbanes-Oxley compliance
• Disconnect between the languages of finance and marketing• Quarterly financial reporting• Turnover of C-level executives• CEO urges marketing to become a center of innovation and growth• Flat or reduced budgets and headcount in marketing, with expectation
marketing will deliver at same level of effort and quality• Staff turnover together with lack of “corporate memory” about marketing
strategies, plans and programs, assets
Internal pressures
© 2009 MarketSphere Consulting, LLC
Issues facing the CMO and Marketing
• The Challenging Economy• “Internet effect”
• 24x7 markets• Faster time-to-market• Consumers have more choice• New competitors where they did not exist before
• Traditional competitors have become more effective marketers• Proliferating communication channels• Social networking – how do I use it effectively?• Agencies as project resources versus long-term Agency-Of-Record• Agency staff turnover• Short-term, quarterly financial reporting for public companies
External pressures
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© 2009 MarketSphere Consulting, LLC 11
CMO Council “Calibrate How You Operate” Study
• 60 percent of respondents believe that marketing operational transformation is an essential area of focus.
• Only 4.5 percent are satisfied with their current level of marketing operational visibility, accountability and output.
• Overall marketing operational effectiveness is considered the least developed operational area by nearly 50 percent of respondents.
2009 - Key Findings
This study was sponsored by Alterian. Visit www.alterian.com for a copy of the report.
© 2009 CMO Council
© 2009 MarketSphere Consulting, LLC 12
Marketing Imperatives
• Demonstrate value - Identify more accurately and conclusively the return on marketing investment at all levels of detail
• Execute effective programs - Gather and analyze significant amounts of customer data to enable greater insight into what customers need, and how and when they buy
• Execute programs efficiently - Gather and analyze operational and financial data to improve the effectiveness of programs while driving down the cost of marketing
• Establish a corporate memory for Marketing - Preserve and protect staff knowledge and marketing intellectual property, as well as digital assets, to ensure legal and contract compliance, facilitate reusability and ensure continuity of plans and strategies across years
Marketing leaders address the pressures
© 2009 MarketSphere Consulting, LLC
The Case for a Marketing Operations Center of Excellence
© 2009 MarketSphere Consulting, LLC 14
The Business of Marketing
The “business of marketing” is --
the organization and management of internal and external supply chains -- to produce insight‐driven programs --
that launch on time and on budget -- are aligned to corporate objectives -- and demonstrate a return on investment at or above the company’s minimum acceptable rate of return*.
* Companies often use 12% as the “hurdle” rate.
MarketSphere definition
© 2009 MarketSphere Consulting, LLC
The Five Roles of MarketingMarketing Operations is the “Fifth Role” of Marketing
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Brand
Life Cycle/Revenue
Voice of theCustomer
Product &Innovation
MarketingOperations
© 2009 MarketSphere Consulting, LLC 16
Marketing Operations Organization
• –
Five key responsibilities
Responsibility Advantage
“Chief of Staff” to the CMO Focus the CMO on strategy and innovation, but focus a senior officer on marketing operations, including finance
Marketing Governance Better manage the marketing investment portfolio and ensure alignment of investment with corporate goals
Project Management Office Better manage marketing process and ensure “on time, on budget” programs
Shared Services Eliminate duplication of resources and drive down cost of purchased services, improve productivity, and ensure consistency of brand and message across all programs, and communication channels
Enterprise Marketing Management Strategy
Ensure proper alignment of marketing staff, marketing operational processes and marketing automation with the objectives of the marketing department, and the company overall
© 2009 MarketSphere Consulting, LLC
Marketing Operations organizational conceptMarketing Operations chief should be equal to the others
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XYZ Incorporated
Chief Marketing Officer
Voice of the Customer
Life Cycle/Revenue
Product &Innovation
Marketing Operations
Brand
SharedServices
Supply Chain/Purchasing
MarketingGovernance
Technology Support
MarketingPlanning / PMO
HumanResources
© 2009 MarketSphere Consulting, LLC 18
Planning and Project Management Office
• Create and monitor the annual Marketing Plan• Create and monitor the integrated Marketing Calendar• Work with Brand, Product, Voice of the Customer, and Life Cycle Marketing teams to
translate corporate objectives into action plans• Hold quarterly reviews in conjunction with the CMO• Operate a marketing resource management application• Monitor and publish reports and dashboards that combine customer, operational and
financial metrics and Key Performance Indicators
Managing the integrated project schedule
Measurement: On-time and on-budget performance of actions plans in conjunction with assigned managers
© 2009 MarketSphere Consulting, LLC 19
Marketing Governance
• Manage and control the marketing budget• Monitor and report financial and operations
metrics (KPI’s), and calculate ROI of marketing programs
• Translate “finance speak” into “marketing speak” and vice versa
• Ensure alignment and reporting of corporate objectives to marketing budgets and results
• Recommend to CMO the optimal allocation of marketing budget dollars (or other currencies)
• Audit financial performance of suppliers; ensure compliance with corporate purchasing guidelines
• Provide Sarbanes-Oxley compliance
Managing the investment portfolio
Measurement: performance against plan(s), forecast accuracy, increased year-over-year ROMI (return on marketing investment)
Corporate Objectives
Marketing Objectives
Marketing Budget
Programs & Activities
Results
Corporate objectives aligned with marketing budget and programs
© 2009 MarketSphere Consulting, LLC 20
Shared Services
• Manage marketing services– Graphic arts and writing– Web and e-mail operations– Marketing research and analysis– Traffic and production management
• Implement approved programs on the marketing calendar• Manage day-to-day relationships with agencies, oversee procurement• Manage or coordinate with other marketing-related functions like Customer Services,
Call Centers or Fulfillment, to ensure brand/message consistency, and awareness to marketing programs
• Maintain labor standards and attain optimal mix of staff, freelance and agency resources• Maintain service level standards and enforce brand consistency
A model for more efficient operations
Measurement: reduction in the cost of operations, internal brand stewardship score, “internal customer” satisfaction – service delivery level
© 2009 MarketSphere Consulting, LLC
Enterprise Marketing Management Strategy
• MS-Office is the technology workhorse of Marketing, especially MS-Excel
• The move to Customer-centricity drove the need for Customer Resources Management, Sales Force Automation and customer analytics
• Email combined with websites, micro sites and landing pages has emerged as a “lower cost” communication channel, which continues to drive the need for campaign management, email processing software and web analytics
• Compliance and the need to manage and share knowledge, and protect a company’s intellectual property, is driving the need for marketing systems of record
• Applications and data are often managed in their respective silos of marketing functionality (i.e., direct marketing owns campaign management, IT owns the website, customer services owns CRM)
Introduction
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© 2009 MarketSphere Consulting, LLC 22
Marketing Automation EcosystemA not-so-integrated set of technologies that support Marketing
COMPANY
SALES MARKETING FINANCE
Lifecycle MarketingDemand Management
Customer Service
MarketingCommunicationsMarketing Svcs
Sales OperationsMPM/
Analytics &Research
Brand/ProductManagement
CompanyWebsite
MarketingData Mart
AnalyticTools
CompanyIntranet/Extranet
KPIDashboards
Procurement------------
Accounting
En
tity
Fu
nct
ion
Sys
tem
CRMCampaignMgmt **
Optionally, could connect directly to an ERP system
for replenishment of packaging & print materials
(i.e., user manuals)
SFADatabase
SalesEnablement
LegendCRM: Customer Relationship MarketingERP: Enterprise Resource PlanningKPI: Key Performance IndicatorsMOM: Marketing Operations ManagementSFA: Sales Force Automation
VENDORSAGENCIES
Knowledge ManagementRepository
Content ManagementRepository
Corp. CommPR
PR/MediaManagementApplication
DigitalAssetMgmt
MarketingOperations
Mgmt
MARCOM Self-Service
EMPLOYEES
CorporateInfo Systems
Channel &PartnerMgmt **
CUSTOMERS
© 2007 MarketSphere Consulting LLC
Rented Lists/External Sources
**Note: Companies operating Partner & Channel Management programs use PRM solutions.
Ver 2.2
© 2009 MarketSphere Consulting, LLC 23
Enterprise Marketing Management Strategy
• An enterprise marketing management strategy defines a goal:
– Alignment of technology to support corporate and marketing objectives
– Role-based application functionality– Marketing data in a central repository
o Enables analytics and insightso Promotes reusability of contento Assures complianceo Promotes knowledge managemento Establishes a “corporate memory” for the
marketing organization (a logical marketing system of record)
• Process and organizational alignment are key success drivers
• Long-term horizon for full realization of benefits
Put into practice
Measurement: Reduced risk of non-compliance, reduction in production cycle times, reduction in “on boarding” time, cost savings, brand consistency, department productivity improvement
© 2009 MarketSphere Consulting, LLC 24
Role-based EMM Model (Sample Retail Client)U
ser
Co
mm
un
ity/
Pro
cess
Ap
plic
atio
ns
Uti
litie
sL
og
ical
MK
TG
S
ys O
f R
eco
rdN
etw
ork
MarketingOperations(Aprimo)
Digital Assets
CustomerAnalytic
Data Mart
Product Master
EmployeeStorage
Leader Planner Implementor AnalystBuyer/
Controller
Manage &Approve
Plan ExecuteBuy &Pay
Show &Tell
Analyze &Learn
Store &Protect
Master DataManagement
E T L Data Cleaning
Security/AccessControl
MRMApp
DAMApp
Product Lifecycle
MgmtAdobe CS
MicrosoftOffice
Analytics(OBIEE)
AribaS A P
Supplier
CustomerHub
CRM
R D B M S
Integrated Portal/Secure Access
Ethernet
CircularAutomat’n
SOA Services
MS-SQL-SVR/ORCL/Terradata
Includes MRM, ECM
WebExperience
Tools
Incl. Dashboards & Reporting
Co
rpo
rate
D
atab
ases
Desktop Applications
WebContentMgmt.
Financial(GL/PO/AP)
Store SalesTransactions
MarketingAnalytic
Data Mart
MarketingKnowledge Repository
Private LabelPLM
C D IInsight
PromotionsMaster
File
ServiceProvider
© 2009 MarketSphere Consulting, LLC 25
Strategic Advantage
• Prepare for the economic rebound to come in 2010 and beyond– Ensure marketing programs and budgets are aligned to corporate objectives– Implement central governance and project management– Streamline and rationalize marketing processes– Reorganize the marketing department to compete in the new economy– Measure marketing programs and calculate their ROI
• With an efficient operation, you can:– Compete more effectively in a 24 x 7 marketplace– Compete at a lower unit cost– Launch products into the market quicker– Launch marketing programs faster than your competitors– Preserve and protect the company’s intellectual property– Continue to drive growth with limited resources
Gaining strategic advantage through efficient marketing operations
© 2009 MarketSphere Consulting, LLC 26
Strategic Advantage
• Strategic advantage comes from being highly effective marketers – generating programs that achieve incremental year-over-year growth through insights and smart targeting.
• It also comes from operating a highly efficient marketing organization – generating incremental year-over-year cost savings through cost management and productivity improvement.
Gaining incremental savings through efficient marketing operations
Incremental Savings
Incremental Growth
Shareholder Value
Free cash flow
© 2009 MarketSphere Consulting, LLC
Metrics and Measurement of Marketing Programs
© 2009 Lenskold Group, Inc.
© 2009 MarketSphere Consulting, LLC 28
Lenskold Group ResearchKey Findings – 2009 Marketing ROI and Measurements Study
2009
Marketing ROI &
Measurements Study
The fifth annual research study on marketing ROI and measurements, featuring an assessment of current economic conditions and marketing operations on managing marketing
effectiveness and growth.
“ We consistently see that the high performing marketing organizations tend to have advantages in marketing operations, strengths in generating insights, and ROI discipline.”
• 24% of companies report using some measure of ROI, marketing profitability, or similar measure
• For firms that consider themselves “highly effective and efficient marketers” this number is 54%
Source: 2009 Lenskold Group / MarketSphere Marketing ROI and Measurements StudyAvailable at www.lenskold.com.
© 2009 MarketSphere Consulting, LLC 29
Marketing ROI Performance Trend
35%
35%
24%
6%
Does your firm calulate marketing profitability, ROI?
No Somewhat Yes Don't Know
• Number reporting the use of ROI and profitability metrics has remained steady since 2008
• Organizational pressure from senior management is quite high
• Firms using ROI are more likely to report expecting greater growth than competitors
• Firms reporting that they calculate ROI are 3 times more likely to report marketing as “highly effective and efficient”
Much greater
Somewhat greater
About the same
Somewhat slower
Much slower
0 5 10 15 20 25 30 35 40 45
How would you describe your firm’s expected growth relative to primary competitors?
Traditional Metrics Financial Metrics
ROI Metrics
Highly effective
Somewhat effective
Not effective, but efficient
Not effective or efficient
No clear read
0 10 20 30 40 50 60
Which statement best describes your marketing effectiveness and efficiency?
Traditional Metrics Financial Metics
ROI Metrics
Sou
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Marketing Operations Capabilities
• Over half (59%) report dedicated marketing operations team
• Highly effective and efficient & greater growth more likely to have marketing operations team
• Firms reporting they have dedicated marketing operations report
– Use customer data to improve effectiveness
– Use data/facts to improve spend decisions– Understand profit drivers to prioritize
budget
59%38%
3%
Does your firm have a dedicated marketing operations team or person in place to manage
resources, systems and processes?
Yes No Don't know
Yes
No
Don't know
0% 10% 20% 30% 40% 50% 60% 70% 80%
Does your firm have a dedicated marketing operations team or person in place to manage
resources, systems and processes?
All Others Highly Effective & Efficient
Yes
No
Don't know
0% 10% 20% 30% 40% 50% 60% 70%
Does your firm have a dedicated marketing operations team or person in place to manage
resources, systems and processes?
Slower Growth Greater Growth
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© 2009 MarketSphere Consulting, LLC 31
Lenskold Group Research
• Marketing Operations teams found to have broad range of diverse responsibilities• “Highly effective and efficient” & “greater growth” companies are more likely to have
marketing operations team
Key Findings – 2009 Marketing ROI and Measurements Study
Marketing project or program management (PMO)
Marketing governance (i.e., budgeting/finance)
Shared services (marketing communications, traffic logistics, purchasing)
Marketing technologies and/or systems
Vendor relations (non-agency suppliers)
Agency relations
Other
Don't know
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Which of the following are responsibilities managed by the marketing operations team or person?
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© 2009 MarketSphere Consulting, LLC
What can I do next?
© 2009 MarketSphere Consulting, LLC 33
Ideas for Next StepsHave patience, be persistent
• Learn as much as you can• Participate in vendor webinars• Attend industry conferences• Read “Enterprise Marketing Management”
by Dave Sutton and Tom Klein• Gather research from Aberdeen, Forrester,
Gartner and the CMO Council• Join a LinkedIn Forum (Marketing Operations,
MOCCA, Chief Marketing Officers)• Find a corporate objective that would benefit
directly from a more operationally efficient marketing department
• Review and improve existing marketing processes (pre-automation)
• Partner early with IT and Finance• Enlist an executive sponsor who will benefit from
improved operations• Design a roadmap detailing the steps to be taken• Remember change management!
• Have patience, but be persistent
© 2009 MarketSphere Consulting, LLC
Questions and Answers