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Alterian May 2009 Webinar - From Planning To Execution Presented By Market Sphere
 

Alterian May 2009 Webinar - From Planning To Execution Presented By Market Sphere

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Learn how your company might gain strategic advantage through highly efficient marketing operations. ...

Learn how your company might gain strategic advantage through highly efficient marketing operations.

Guest speaker, Mayer Becker, National Practice Director – Enterprise Marketing Advisory Services, from MarketSphere described one of the many ways companies are achieving strategic advantage during challenging economic times - through efficient and optimized marketing operations. At the heart of the effort to improve the “business of marketing” is the creation of Marketing Operations Centers of Excellence reporting to the CMO, responsible for governance, project management, technology and shared services.

Highlights of the webinar included:

•What’s on your CMO’s mind?
•Model for a Marketing Operations Center of Excellence
•Selection and application of technology to manage and track marketing programs
•Importance of metrics and measurement to demonstrating the value of marketing

During this presentation, Mayer also shared results from a just-released annual study conducted by Lenskold Group, a leading consulting firm focused on marketing ROI, metrics and measurement, which was sponsored by MarketSphere.

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    Alterian May 2009 Webinar - From Planning To Execution Presented By Market Sphere Alterian May 2009 Webinar - From Planning To Execution Presented By Market Sphere Presentation Transcript

    • From Planning to Execution:The Strategic Advantage of Efficient Marketing OperationsMay 21, 2009
    • 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
      2
    • Marketing Planning to Execution Model
      Efficient processes are critical to success
      3
    • Introduction
      Example of a high-level marketing supply chain
      4
    • Introduction
      Example of a mid-level marketing process map
      5
    • A marketing operations challenge
      A story from my past
      6
      $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
    • Transformational success
      Proven results
      7
      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.
      HelpPeopleChange
      ApplyTechnology
      ImproveProcess
      • 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
    • What’s on your CMO’s mind?
    • 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
      9
    • 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
      10
    • 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
      11
      © 2009 CMO Council
      This study was sponsored by Alterian. Visit www.alterian.com for a copy of the report.
    • 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
      12
    • The Case for a Marketing Operations Center of Excellence
    • 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
      14
    • The Five Roles of Marketing
      Marketing Operations is the “Fifth Role” of Marketing
      15
      Brand
      Product &Innovation
      MarketingOperations
      Life Cycle/Revenue
      Voice of theCustomer
    • Marketing Operations Organization

      Five key responsibilities
      16
    • Marketing Operations organizational concept
      Marketing Operations chief should be equal to the others
      17
    • 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
      18
      Measurement: On-time and on-budget performance of actions plans in conjunction with assigned managers
    • 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
      19
      Corporate objectives aligned with marketing budget and programs
      Measurement: performance against plan(s), forecast accuracy, increased year-over-year ROMI (return on marketing investment)
    • 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
      20
      Measurement:reduction in the cost of operations, internal brand stewardship score, “internal customer” satisfaction – service delivery level
    • 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
      21
    • Marketing Automation Ecosystem
      A not-so-integrated set of technologies that support Marketing
      22
    • 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
      Enables analytics and insights
      Promotes reusability of content
      Assures compliance
      Promotes knowledge management
      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
      23
      Measurement: Reduced risk of non-compliance, reduction in production cycle times, reduction in “on boarding” time, cost savings, brand consistency, department productivity improvement
    • Role-based EMM Model (Sample Retail Client)
      24
    • 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
      25
    • 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
      26
      Incremental Savings
      Incremental Growth
      Shareholder Value
      Free cash flow
    • Metrics and Measurement of Marketing Programs
      © 2009 Lenskold Group, Inc.
    • Lenskold Group Research
      Key Findings – 2009 Marketing ROI and Measurements Study
      28
      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 Study
      Available at www.lenskold.com.
    • Marketing ROI Performance Trend
      29
      • 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”
      Source: 2009 Lenskold Group / MarketSphere Marketing ROI and Measurements Study
    • 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
      30
      Source: 2009 Lenskold Group / MarketSphere Marketing ROI and Measurements Study
    • 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
      31
      Source: 2009 Lenskold Group / MarketSphere Marketing ROI and Measurements Study
    • What can I do next?
    • Ideas for Next Steps
      Have patience, be persistent
      33
      • 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
    • Questions and Answers