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Abbreviated Summary | B018AS Services Marketing Budgets and Benchmarks 2008 Budget Allocations and Trends ABBREVIATED SUMMARY Data from ITSMA Key Metrics Survey May 2008 Julie Schwartz Senior Vice President Thought Leadership and Research ITSMA
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ITSMA Services Marketing Budgets And Benchmarks 2008

May 17, 2015

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ITSMA

Services Marketing Budgets and Benchmarks: 2008 Budget Allocations and Trends delivers a detailed look at the state of the services marketing profession as it exists in early 2008. It provides data on services marketing budgets, budget allocations, and marketing priorities from a range of companies across the technology and consulting industries.
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Page 1: ITSMA Services Marketing Budgets And Benchmarks 2008

Abbreviated Summary | B018AS

Services Marketing Budgets and Benchmarks2008 Budget Allocations and TrendsABBREVIATED SUMMARY

Data from ITSMA Key Metrics Survey

May 2008

Julie Schwartz

Senior Vice President

Thought Leadership and Research

ITSMA

Page 2: ITSMA Services Marketing Budgets And Benchmarks 2008

Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 2Services Marketing Budgets and Benchmarks

Introduction

In this report, ITSMA shares the results of 46 responses from 44

unique companies that provided data on and insights into:

Services marketing budget size, allocations, and growth rates

Marcom budget allocation

Services revenue and profitability

Services marketing staffing and operations

Solutions marketing

Gross margin trends

Top services marketing initiatives and priorities

Note: This abbreviated summary highlights some of the significant findings from

ITSMA’s IT Professional Services and Solutions, 2008 Brand Tracking Study.

A more in-depth discussion of the study findings can be found in the full report.

Page 3: ITSMA Services Marketing Budgets And Benchmarks 2008

Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 3Services Marketing Budgets and Benchmarks

Marketers are Optimistic Amid a Slowing Economy

Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2000, 2001, 2002, 2003, 2004, 2005, 2006, 2007, 2008

2008 Growth Forecasts Are Optimistic

1114 15

21 19 1818

26

38

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

(est.)

Projected Growth in Services Revenue

-2

Page 4: ITSMA Services Marketing Budgets And Benchmarks 2008

Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 4Services Marketing Budgets and Benchmarks

Heading into 2008, marketers are predicting both marketing budget and staff increases

Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2008

What changes do you anticipate

in your services marketing

budget in 2008?

% of Respondents (N=46)Decrease (15%)

Increase (61%)

Amount of

increase: 18.9%

(N=28)

Stay the same

(24%)

Amount of decrease: 9.9%

(N=8)

What changes do you

anticipate in your services

marketing staff in 2008?

% of Respondents (N=25)

Decrease (12%)

Increase (40%)

Amount of

increase: 6.4%

(N=10)

Stay the same (48%)

Amount of decrease:

1.7% (N=3)

Page 5: ITSMA Services Marketing Budgets And Benchmarks 2008

Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 5Services Marketing Budgets and Benchmarks

ITSMA data shows a steady trend toward allocating more marketing budget for programs, rather than personnel

What percentage of the services marketing budget was personnel costs (direct

employees and benefits) vs. marketing program expenses?

Mean % of Services Marketing Budget

Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2005, 2006, 2007, 2008

51 47 44 43

49 53 56 57

2005 (N=22) 2006 (N=44) 2007 (N=44) 2008 (N=44)

Nonpersonnel

Personnel

Page 6: ITSMA Services Marketing Budgets And Benchmarks 2008

Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 6Services Marketing Budgets and Benchmarks

There are two drivers reducing marketing personnel expense

Increasing prominence of Indian services providers with lower

personnel costs

Growing penchant for outsourcing marketing

4915

5185

NA/EMEA

Companies

(N=36)

Indian

Companies

(N=8)

Nonpersonnel

Personnel

In FY2008, do you expect outsourcing

of marketing initiatives and programs

to increase, decrease, or stay the same

when compared to FY2007?

% of Respondents (N=43)

Increase

(51%)

Stay the

same

(44%)

Decrease (5%)

What percentage of the services

marketing budget was personnel costs

(direct employees and benefits) vs.

marketing program expenses?

2008 Mean % of Services Marketing

BudgetNote: Differences by region are statistically significant.

Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2008

Page 7: ITSMA Services Marketing Budgets And Benchmarks 2008

Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 7Services Marketing Budgets and Benchmarks

The biggest news this year is that 67% of respondents plan to increase their spending on sales enablement activitiesWhat are your spending plans in 2008 for the following budget categories?

% of Respondents (N=27)

Sales (channel) enablement and support

Strategy and market planning

Offering management

Marcom

Marketing operations

Market intelligence/market research

Business partners/alliances

Customer satisfaction/relationship

management and monitoring

Other 11

26

31

37

44

48

48

52

67

41

11

19

11

11

7

4

19

15

48

63

50

52

44

44

48

30

19

Increase Decrease Stay the Same

Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2008

Page 8: ITSMA Services Marketing Budgets And Benchmarks 2008

Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 8Services Marketing Budgets and Benchmarks

The marcom emphasis is on highly targeted campaigns using face-to-face events, digital media, and thought leadership

Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2008

OtherSponsorships of Sports/Cultural Events

Public/Press/Media/Community Relations

Advertising

Industry Analyst Relations/Events

Thought Leadership Development and Dissemination

Direct Marketing/Database Marketing

Public Trade Shows

Private Events, Seminars, and Conferences

Interactive/Online/Digital Marketing

Collateral (brochures, datasheets, etc.)

Marcom Budget Allocation FY2008 Mean % (N=21)

Page 9: ITSMA Services Marketing Budgets And Benchmarks 2008

Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 9Services Marketing Budgets and Benchmarks

Services marketers are shifting more of the marcom budget online

Online

(29%)

Offline

(71%)

Approximately what percentage of your services marcom budget is online vs. offline?Mean % of Marcom Budget

2007 (N=25)

Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2007, 2008

2008 (N=23)

Offline

(66%)

Online

(34%)

Page 10: ITSMA Services Marketing Budgets And Benchmarks 2008

Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 10Services Marketing Budgets and Benchmarks

Search engine marketing is poised for growth, however, the most effective marketers are also expanding their use of new social media

Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2008

Email, electronic newsletters

Wikis

Corporate Website

Virtual worlds (e.g., Second Life,

Universe, Forterra, There.com)

Extranets or Microsites

Online communities

Podcasts

Intranets/internal collaboration

Webinars

Blogs

Search engine marketing/advertising70%

% of Respondents Increasing Investment

(N=23)

50-60%

<=30%

Page 11: ITSMA Services Marketing Budgets And Benchmarks 2008

Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 11Services Marketing Budgets and Benchmarks

Account-Based Marketing continues to gain momentum

% Spent on

Account-Based

Marketing

FY2006 (N=28)

% Spent on

Account-Based

Marketing

FY2007 (N=18)

7.6% 13.7%

Approximately what percentage of your services marketing budget is

dedicated to Account-Based Marketing?

% To Be Spent on

Account-Based

Marketing

FY2008 (est.) (N=19)

20.1%

Note: Only includes companies that have implemented Account-Based Marketing programs.

Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2006, 2007, 2008

Page 12: ITSMA Services Marketing Budgets And Benchmarks 2008

Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 12Services Marketing Budgets and Benchmarks

Marketing shakes things up

Rank

2008 2007

1 1 Differentiating the company or offerings

2 3 Enabling the sales force

3 7 Generating demand

4 8 Improving customer satisfaction and loyalty

5 — Developing thought leadership

6 — Refining value propositions

7 16 Increasing use of digital tools and online marketing channels

8 6 Leveraging Account-Based Marketing

9 9 Developing and launching new offerings

10 10 Increasing focused marketing programs for vertical/industry markets

Note: Top priorities that did not make the list in 2008 but were in the Top 10 of 2007 include developing and refining the

marketing strategy (#2 in 2007), deepening customer insight (#4), and enhancing the company's reputation (#5).

Source: ITSMA, Budget Allocations and Trends: Key Metrics Survey, 2007, 2008

Page 13: ITSMA Services Marketing Budgets And Benchmarks 2008

Abbreviated Summary | B018AS © 2008 ITSMA. All Rights Reserved. 13Services Marketing Budgets and Benchmarks

ContactJulie SchwartzSenior Vice President

Thought Leadership and Research

ITSMA

[email protected]

+1-781-862-8500, Ext. 112