Gleanster CheatSheet: Marketing Resource Management (MRM)


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How to define marketing resource management and how it's unique
How marketing resource management software supports back-office marketing execution
Definitions of common jargon and acronyms associated with MRM: marketing operations, DAM, EMM, etc.
Common out-of-the-box features in marketing resource management tools
How to justify investments in MRM
How much marketing MRM technology will cost
Essential pre-purchase tips and tricks to maximize an investment in marketing operations optimization

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Gleanster CheatSheet: Marketing Resource Management (MRM)

  1. 1. Entire content © 2014 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction prohibited. Note: This document is intended for individual use. Electronic distribution via email or by posting on a personal website is in violation of the terms of use. Technology Cheat Sheet What’s a CheatSheet? Gleanster Research produces two types of CheatSheats: ÆÆ Concept CheatSheats: Explaining the nuances of a key concept. ÆÆ Technology CheatSheats: A comprehensive guide to a technology. CheatSheats offer a quick and consumable overview of a key concept or technology. Our analysts develop these with one goal in mind; explain the concept or technology as if you were talking to your grandmother. It’s the quickest way to get acclimated to emerging business terms and impress your colleagues and your boss with practical insights at your next meeting. Inside a Concept CheatSheet The Technology, Defined What’s does it do? Industry Jargon Acronyms Features Functions Pricing Justifying the Investment Before You Buy Compliments of: This CheatSheet is made available compliments of: Gleanster is a new breed of market research and advisory services firm. Its analyst reports highlight the experiences of Top Performing organizations; why they invest in technology, how they overcome challenges, and how they maximize the value of their investments. Marketing Resource Management (MRM) The Technology, Defined MarketingResourceManagement(MRM) provides the software infrastructure to support Marketing Operations Management. MRM generally refers to technology for the areas of planning, design and production within marketing and MRM solutions do not provide the analytics, decision making and automated execution capabilities for personalized marketing across channels. MRM is a subset of Enterprise Marketing Management (EMM) that embodies a combination of technologies to support all aspects of the marketing supply chain. What Does It Do? MRM is a software application that supports back office operations though workflow, approval, and business rules. MRM offers a methodical and systematic way for very large and complex marketing teams to capture budget, link ongoing campaigns to strategic initiatives, manage processes that include suppliers and agencies, centralize collaboration, centralize the marketing calendar, and centralize digital asset creation and storage. The easiest way to think of MRM is it supports everything that needs to happen before a campaign goes out the door. MRM is not a campaign execution tool. You feed your Campaign Management (email, direct mail, web, etc.) with the output from MRM. MRM allows organizations to customize workflows to capture and support any marketing process and make it repeatable, streamlined and systematic. In a way MRM is to marketing execution as ERP is to Finance or CRM is to Sales. Unfortunately, it’s all too common for marketers to accept manual and inefficient processes as “part of the job.” As such, marketers don’t always take too kindly to changes in process during MRM rollouts. So maybe don’t call it the ERP of Marketing unless you want a mutiny on your hands. Industry Jargon Acronyms There are a ton of related technologies in this space and all of them come nicely wrapped with their own acronyms. Some of these were developed by vendors in an attempt to differentiate products, and they stuck. Enterprise Marketing Management (EMM) isn’t really a technology; it’s a combination of technologies. EMM delivers an end-to-end internal process for managing marketing operations through three technologies that are typically delivered as modules: Marketing Resource Management, Digital Asset Management, and Marketing Campaign Management. Digital Asset Management capabilities are called out separately in EMM solutions because DAM is frequently sold as a more robust asset management module that integrates with MRM for an end-to-end solution to manage work-in-progress assets, production ready assets, and asset storage. A fully integrated DAM capability allows organizations to easily re-use marketing content during the production process to save costs and maintain brand consistency. Marketing Resource Management (MRM) is a class of technology that was designed exclusively for marketers to help manage back-office marketing execution (pre-campaign execution). MRM supports marketing operations in the areas of planning, design, and production through features such as
  2. 2. Entire content © 2014 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction prohibited. Note: This document is intended for individual use. Electronic distribution via email or by posting on a personal website is in violation of the terms of use. Technology CheatSheet: Marketing Resource Management (MRM) 2 COMPLIMENTS OF:   workflow, asset management, budgeting, a central marketing calendar, and operational reporting. Marketing Campaign Management (MCM) is a stand-alone module for executing direct marketing campaigns. These tools execute campaigns across demand channels like email, mobile, direct mail, landing pages, and social media. The best way to think about MCM is that these tools utilize the assets created and managed by MRM, or the back-office content production process, and push them out through customer engagement campaigns. The campaign production process demands some level of content management, therefore, most MCM tools have light content management capabilities for storing and locating the creative and copy used in direct marketing campaigns. MCM is typically insufficient for large enterprise organizations to manage all digital assets produced by marketing. Marketing Operations Management (MOM) is an alternative name for MRM used by some vendors. The term refers to the end-to-end optimization of marketing operations from planning to creative to execution and finally measurement. Features and Functions MRM automates the back-office marketing operations processes through the following features: Strategic Alignment: The ability to create a hierarchy of strategic imperatives and goals from within the system and link every activity to one or more goals. This gives executive marketers visibility into how spend is being allocated to meet strategic targets and objectives on a periodic basis. Budgeting and Planning: MRM solutions typically integrate with the financial system of record so marketing budget can be allocated and tracked from within MRM at a more granular level. Budgets can be approved, moved, re-allocated, and canceled from within MRM for a holistic view of spending and forecasted spend. Workflow: Role based security allows business rules to be customized for different users. Marketing projects, production processes, and activities can be systematically mapped within MRM to assign tasks and timelines to specific roles. Business rules can be configured to route tasks through approval workflows and ensure timely delivery of projects. Workflow gives marketing executives visibility into the marketing cycle time and granular drill-down into bottlenecks or resource constraint issues before they manifest themselves in lost revenue. Offer management: Offers can be configuredwithinMRMandsystematically optimized based on business rules and an offer optimization engine. This allows offers to be associated of specific campaigns to close the loop on ROI from production to execution. Asset management: Most MRM systems have a rudimentary form of digital asset management (DAM) built into the system. This allows assets that are in progress, production ready, or archive ready to be routed appropriately during the production process and can provide an effective means of capturing meta-data from users who have context about the asset use or intended use. Project management: MRM assigns specific roles to specific tasks and can be configured to govern the cycle-time on various tasks. Marketing projects can then be aggregated on a marketing calendar and flagged as on-time or late for further action. Marketing calendar: Marketers struggle with managing global calendars, especially in enterprise environments. Instead of managing dozens of excel calendars or separate tools for each department, MRM users can add all activities automatically to a central marketing calendar, with role-based views of marketing activities. Marketing taxonomy: Configure standardized views of products, geography, the marketing organizational hierarchy, campaigns, and customer segments from within MRM. Partner and supplier access: MRM provides portal based access to fulfillment, agencies, and marketing services partners who play an ongoing role in marketing operations. Pricing On-premise MRM solutions typically aren’t a cheap date. An on-premise solution typically generates sustainable return on investment when implemented for a larger scale, which is why enterprise class MRM solution licenses tend to be between $375k to $1M. About five years ago on-demand MRM solutions became a viable option for mid-to-large businesses that had basic needs for out-of-the-box MRM capabilities and a limited budget. On-demand MRM is typically a good fit for mid-size organizations with $100M in revenue and up and ranges from $10k/m and up depending on the number of users and modules. No discussion of MRM pricing is complete without also factoring in the cost of implementation. MRM rollouts demand process re-engineering, customization and configuration, and change management- which means they typically require support from vendor services, systems integrators, and/or consultants. In a large enterprise
  3. 3. Entire content © 2014 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction prohibited. Note: This document is intended for individual use. Electronic distribution via email or by posting on a personal website is in violation of the terms of use. Technology CheatSheet: Marketing Resource Management (MRM) 3 COMPLIMENTS OF:   setting MRM implementation can be expected to span 12-18 months. Generally service partners will phase the rollout by core processes or functional teams and incorporate requirements gathering, configuration, change management, training, and communication within each phase. You can expect system integrators to recommend a team of 3-7 consultants to support the initiative and the team will need access to stakeholders on-site for at least 6-9 months. Many business stakeholders get sticker shock when they realize the implementation is often double or triple the license costs. Services for an on-premise MRM implementation can range from $500k up to $1.5M or more. Nine times out of ten organizations that try to cut costs and support the initiative internally fail. You end up having to bring in consultants to fix things, which is a lot harder than just doing it right the first time. One executive from a large financial institution that had been using on-premise MRM for seven years put it this way “last year we had a power surge that shut down our MRM servers, it literally shut down marketing at the same time.” Stakeholders need to ask themselves if it makes sense to outsource this kind of mission critical work to the lowest bidder or cut costs. Justifying the Investment When implemented appropriately MRM investments play a central and long- term role in the marketing operations infrastructure. Unlike some marketing technologies MRM can be implemented with a 7-10 year timeline in mind because the solutions will likely become a critical conduit for marketing execution and reporting. The strongest business case for MRM is typically derived from a robust understanding of current state processes and future state potential. Most marketing leaders are shocked to peel back the layers of the onion and find out how business really gets done at the executional level. Generally MRM is going to justified from a productivity and cost savings standpoint. That means a thorough understanding of the process efficiencies and overhead costs in current marketing cycle time aggregated over months or years across dozens or hundreds of employees will ultimately make the strongest tangible case. Benefits of MRM include: • Reduce Training Expenses • Eliminate unaligned marketing investments • Reduce Cycle Time (Planning) • Improve Productivity (Execution) • Reduce Analysis Time (Visibility) • Reduce Production Mistakes • Savings attributed to shifting to electronic fulfillment • Reduction of Late Fees and Penalties • Reduction of Supplier Costs due to consolidation • Revenue lift due to better communication and lead management • Improvement in Portfolio Optimization Cost factors that should be included in the current state evaluation: • Existing software or licensing fees (particularly software that can be divested of completely) • Support for existing software and processes • Hardware maintenance • Support costs from finance, IT, operations, marketing • Number of employees impacted globally • Agency or service costs from outsourcing processes that could be done in MRM • Time spend locating files manually • Time spent budgeting and planning • Time spent reporting on basic metrics • Time spent conducting on- off analysis projects • Average employee salary • Forecast accuracy • Budget accuracy • Aggregated time spent per process per employee (multiply by number of employees) Successful implementations also provide CMOs with visibility into global processes, spending, and return on investment in campaigns. Before You Buy Organizational Readiness for MRM MRM has the potential to provide cadence and structure to marketing execution and back-office marketing operations. However, marketers usually don’t take kindly to changes in process that demand rigorous steps and structured processes. Some marketers will refer to MRM as the ERP of marketing, and that’s partially true. But MRM remains the most effective way to gain visibility and control into chaotic enterprise marketing execution. For organizations considering an MRM solution, consider engaging a consulting partner that is skilled at configuring and rolling out MRM. People are the most common reason MRM systems fail. Rigorous training, ongoing support, and regular engagement with business users will be critical to the system actually getting used.
  4. 4. Entire content © 2014 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction prohibited. Note: This document is intended for individual use. Electronic distribution via email or by posting on a personal website is in violation of the terms of use. Technology CheatSheet: Marketing Resource Management (MRM) 4 COMPLIMENTS OF:   How long will MRM take to implement? MRM implementations range from 6 months to a year. But, depending on the complexity or global scale of the rollout, implementations could take as long as 2 years. Bottom line, it’s going to take more than a few months to configure something useful AND get users trained on the new platform. You should look at a phased approach to MRM implementation capturing some small wins and milestones along the way. Are there limitations with respect to MRM customization? Yes. You can add custom attributes to MRM deployments to capture unique information that is necessary for the organization, but there are limitations to how many attributes. At the same time, excessive customization’s could cause issues with future version updates and system performance, so it’s generally a better idea to simplify processes to work within the system rather than customize the system to work with overly complex marketing operations processes.
  5. 5. Entire content © 2014 Gleanster, LLC. All rights reserved. Unauthorized use or reproduction prohibited. Note: This document is intended for individual use. Electronic distribution via email or by posting on a personal website is in violation of the terms of use. Technology CheatSheet: Marketing Resource Management (MRM) 5 COMPLIMENTS OF:   Headquarters Gleanster, LLC 4695 Chabot Drive Pleasanton, CA 94588 For customer support, please contact For sales information, please contact Related Research The Gleanster Marketing Resource Management Research Topic Area features: Gleansight Benchmark Reports with Vendor Rankings Deep Dive Research Reports Vendor Showcases Resources Analyst Commentary Vetted Whitepapers Upcoming Webinars Events The Gleanster website also features carefully vetted white papers on these and other topics as well as Success Stories that bring the research to life with real-world case studies. To download Gleanster content, or to view the future research agenda, please visit Browse Research Resources About Gleanster Gleanster benchmarks best practices in technology-enabled business initiatives, delivering actionable insights that allow companies to make smart business decisions and match their needs with vendor solutions. Gleanster research can be downloaded for free. All of it. For more information, please visit: