Tech Marketing in 2010:  Investment and Budgeting Trends, Forecast, and Essential Guidance Rich Vancil Vice President, CMO...
What Does It Cost to Create a  New B2B Tech Customer? Sales and Marketing Cost Envelope Source: IDC 13%  of Total Revenue ...
The Ebb and Flow of Marketing Budgets Source: IDC’s  CMO Tech Marketing Benchmarks and Barometer Studies 2003–2010  and  I...
You DO Have Enough Marketing Budget! <ul><li>Marketing $$ are  ALWAYS  scarce. </li></ul><ul><li>Re-deploying dollars is e...
Barometer Reading:  Revenue Growth Sentiment Source:  IDC’s Technology Marketing Barometer, 2010 (n = 45) Q. How do you EX...
Barometer Reading:  Marketing Budget Sentiment Source:  IDC’s Technology Marketing Barometer, 2010 (n = 45) Q. Will your M...
And the Final Tally: Marketing Budget Outlook for 2010 <$1B $3B+ Min. Max. Average $1B–<$3B 5.9% 0.6% 6.4% Source:  IDC’s ...
Marketing Budgets in Detail
“ Programs + People” =  100% of Your Marketing Budget Source: IDC’s CMO Advisory’s 2009 Tech Marketing Benchmarks Study Pr...
Trends in Marketing Program Budget Allocations Program Allocation for Hardware, Software and Services Companies Social net...
How Do You Allocate Your  Digital Marketing Program Mix? *2009 Tech Marketing Benchmarks Database (n=75): program spend on...
The Shifting Flow of New vs. Traditional Media in Marketing Budgets Source:  IDC’s Technology Marketing Barometer, 2010 (n...
Digital Program Priorities for 2010: Source:  IDC’s Technology Marketing Barometer, 2010 (n=45) Q. What  Digital Marketing...
Trends in  Marketing Staff Allocations  Q. Please indicate the allocation of full-time marketing employees in each of the ...
Some Thoughts on Building Marketing Budgets and Organizations
The Challenge:   Marketing’s Execution Is Bound by  “Silos” Corporate Marketing Analyst Relations Marketing Communications...
Don’t Think Silos … Think Circles Corporate Product Field Public Relations Events Advertising Campaign Management Sales En...
An Emerging Organization Challenge for 2010:  The Sales and Marketing “Mash-Up” Sales Channel Sales and  Operations Region...
Sales & Marketing Expenses:  Growing Faster than Revenues in 2010 Source: IDC’s  CMO Tech Marketing Benchmarks and Baromet...
Marketing Organizational Changes  Expected in 2010 Less centralization/regional and BU empowerment Respondents Planning on...
Sales and Marketing Alignment: Priority Areas for Improved Alignment Abound Source:  IDC’s Technology Marketing Barometer,...
IDC Essential Guidance for Marketing Executives for 2010 <ul><ul><li>“ Bundle” your  new  budget requests with  budget  sa...
Marketers: Embrace Sales in 2010! What’s the  Worst that  Could Happen?
The CMO Advisory Practice Team Joe Ferrantino Research Analyst [email_address] Phone: 508-988-6973 Rich Vancil Vice Presid...
Appendix <ul><li>IDC Tech Marketing Barometer Study. </li></ul><ul><li>March, 2010 </li></ul><ul><li>Survey Participant li...
IDC Marketing Barometer 2010: Respondent List <ul><li>Actuate </li></ul><ul><li>Adobe </li></ul><ul><li>Autodesk </li></ul...
February 2010:  Marketing Budget Survey Respondents Respondents by Revenue Respondents by Title Respondents by Primary Ind...
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Idc Mass Tlc March 18 2010 Final

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  • 2009 IDC Directions
  • Title of Presentation Client Copyright 2007 IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • Title of Presentation Client Copyright 2007 IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • Title of Presentation Client Copyright 2007 IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 2009 IDC Directions
  • Title of Presentation Client Copyright 2007 IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • Title of Presentation Client Copyright 2007 IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • 2009 IDC Directions
  • 2009 IDC Directions
  • Title of Presentation Client Copyright 2007 IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • Let’s look at the classic tech marketing organization. We describe three pillars of marketing . In some cases these pillars have equal weight in terms of the dollars of marketing throughput and the allocation of personnel. But in too many cases we see that corporate marketing is somewhat bloated. It carries 45 or 50% of the total budget.
  • Let’s look at the classic tech marketing organization. We describe three pillars of marketing . In some cases these pillars have equal weight in terms of the dollars of marketing throughput and the allocation of personnel. But in too many cases we see that corporate marketing is somewhat bloated. It carries 45 or 50% of the total budget.
  • Title of Presentation Client Copyright 2007 IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • Title of Presentation Client Copyright 2007 IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • Title of Presentation Client Copyright 2007 IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • Title of Presentation Client Copyright 2007 IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • Title of Presentation Client Copyright 2007 IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • Title of Presentation Client Copyright 2007 IDC. Reproduction is forbidden unless authorized. All rights reserved.
  • Idc Mass Tlc March 18 2010 Final

    1. 1. Tech Marketing in 2010: Investment and Budgeting Trends, Forecast, and Essential Guidance Rich Vancil Vice President, CMO Advisory Service Executive Advisory Group, IDC
    2. 2. What Does It Cost to Create a New B2B Tech Customer? Sales and Marketing Cost Envelope Source: IDC 13% of Total Revenue Marketing Awareness Building (1.5% of revenue) Marketing Demand Generation (1.5% of revenue) Sales (11% of revenue)
    3. 3. The Ebb and Flow of Marketing Budgets Source: IDC’s CMO Tech Marketing Benchmarks and Barometer Studies 2003–2010 and IDC Q4 ’09 Black Book * Constant Currency (US$ values based on an average of 2008 calendar year exchange rates) IT global revenue growth IT global marketing investment growth 10% 5% 0% -5% -10% 2003 2004 2005 2006 2007 2008 2009 2010 Year-on-Year Investment Change* (8.3%) (4.5%) 3.5% 3.2%
    4. 4. You DO Have Enough Marketing Budget! <ul><li>Marketing $$ are ALWAYS scarce. </li></ul><ul><li>Re-deploying dollars is easier than asking for new dollars. </li></ul>
    5. 5. Barometer Reading: Revenue Growth Sentiment Source: IDC’s Technology Marketing Barometer, 2010 (n = 45) Q. How do you EXPECT expect your revenue to grow in 2010, compared with IDC’s Overall forecast of + 3.2% ? Percent of Respondents $3B or more $1B to $2.9B Less than $1B 24% 12% 65% 50% 50% 50% 5% 45% Significantly higher (>6%) About the same Significantly lower (<1%)
    6. 6. Barometer Reading: Marketing Budget Sentiment Source: IDC’s Technology Marketing Barometer, 2010 (n = 45) Q. Will your Marketing Budgets change in 2010? 1 st Half ’10 2 nd Half ’10 Increase 60% Decrease 20% No change 20% Increase 54% Decrease 13% No change 29% Don’t know 4%
    7. 7. And the Final Tally: Marketing Budget Outlook for 2010 <$1B $3B+ Min. Max. Average $1B–<$3B 5.9% 0.6% 6.4% Source: IDC’s Technology Marketing Barometer, 2010 (n = 44) Marketing Investment Change, 2009 to 2010 Q. Will your Marketing Budgets change in 2010?
    8. 8. Marketing Budgets in Detail
    9. 9. “ Programs + People” = 100% of Your Marketing Budget Source: IDC’s CMO Advisory’s 2009 Tech Marketing Benchmarks Study Programs (60%) People (40%) Advertising 21% Events 18% Marketing support & sales tools 18% Digital marketing 13% Direct marketing 11% Other 3% Analyst relations 2% PR 4% Market intel. 5% Collateral 5% % of Total Marketing Staff Product/industry/solution mktg. Field mktg. support Marketing comm. Digital mktg. Direct mktg. Campaign mgmt. Partner mktg. Event mktg. Marketing ops. Market intel. PR Advertising Sales enablement Analyst relations Technical mktg. 25.4% 15.5% 6.8% 6.4% 5.6% 5.5% 5.4% 4.8% 4.8% 3.9% 3.1% 2.2% 2.1% 1.9% 1.9%
    10. 10. Trends in Marketing Program Budget Allocations Program Allocation for Hardware, Software and Services Companies Social networking and digital events remain high-growth investment areas <ul><li>Continued push toward smaller, more targeted proprietary events </li></ul><ul><li>Significant drop in tradeshow investment </li></ul>Print and broadcast advertising down year-on-year
    11. 11. How Do You Allocate Your Digital Marketing Program Mix? *2009 Tech Marketing Benchmarks Database (n=75): program spend only Program Display Ads 24% E-mail Marketing 19% Search Ads 19% Web Site 17% Digital Events 9% SEO 7% Social Networks 3%
    12. 12. The Shifting Flow of New vs. Traditional Media in Marketing Budgets Source: IDC’s Technology Marketing Barometer, 2010 (n = 45) Q. What marketing program areas will grow or decline in 2010? Increase Decrease Digital mktg.** Direct mktg. MSST* Events (in-person) PR* MI* Advertising AR* Collateral % of Respondents
    13. 13. Digital Program Priorities for 2010: Source: IDC’s Technology Marketing Barometer, 2010 (n=45) Q. What Digital Marketing program areas will grow or decline in 2010? Increase Decrease Company web site % of Respondents Social networks/comm. Digital events* SEO Search/display ads Email marketing
    14. 14. Trends in Marketing Staff Allocations Q. Please indicate the allocation of full-time marketing employees in each of the following areas at the close of your current fiscal year. *2009 Tech Marketing Benchmarks Database (n=76)
    15. 15. Some Thoughts on Building Marketing Budgets and Organizations
    16. 16. The Challenge: Marketing’s Execution Is Bound by “Silos” Corporate Marketing Analyst Relations Marketing Communications Direct Marketing Event Marketing Digital and Social Marketing Operations Advertising Market Intelligence Public Relations Product Marketing Industry Marketing Solution Marketing Product Marketing Field Marketing Field Marketing Regional Marketing Managers Country and Local Marketing Managers
    17. 17. Don’t Think Silos … Think Circles Corporate Product Field Public Relations Events Advertising Campaign Management Sales Enablement Sales Region 3 Sales Region 4 Sales Region 2 Sales Region 1
    18. 18. An Emerging Organization Challenge for 2010: The Sales and Marketing “Mash-Up” Sales Channel Sales and Operations Regional/ Country/ Local Sales Sales VPs Product Marketing Industry Marketing Solution Marketing Product Marketing Corporate Marketing Analyst Relations Marketing Communications Direct Marketing Event Marketing Digital and Social Marketing Operations Advertising Market Intelligence Public Relations Field Marketing Field Marketing Regional Marketing Managers Country and Local Marketing Managers Chief Sales Officer
    19. 19. Sales & Marketing Expenses: Growing Faster than Revenues in 2010 Source: IDC’s CMO Tech Marketing Benchmarks and Barometer Studies 2003–2010 and IDC Q4 ’09 Black Book * Constant Currency (US$ values based on an average of 2008 calendar year exchange rates) IT global revenue growth IT global marketing investment growth 10% 5% 0% -5% -10% 2003 2004 2005 2006 2007 2008 2009 2010 Year-on-Year Investment Change* IT global sales investment growth 4.7% (8.3%) (4.5%) 3.5% 3.2%
    20. 20. Marketing Organizational Changes Expected in 2010 Less centralization/regional and BU empowerment Respondents Planning on This Change 2010 2009 Organizational Change Type Creation of marketing shared services centers More outsourcing Change in sr. mktg. leadership in past 12 and/or next 12 months More centralization Increasing organizational structure alignment between mktg. & sales
    21. 21. Sales and Marketing Alignment: Priority Areas for Improved Alignment Abound Source: IDC’s Technology Marketing Barometer, 2009 (n = 44) Q. Where are Marketing and Sales most poorly aligned ? Less vs. More Aligned CXO-level marketing & sales Sales support needs Integration of planning & budgeting Lead management infrastructure Lead management process Shared metrics for mktg. & sales
    22. 22. IDC Essential Guidance for Marketing Executives for 2010 <ul><ul><li>“ Bundle” your new budget requests with budget savings </li></ul></ul><ul><ul><li>Do not lose control over the “Three Pillars” of Marketing </li></ul></ul><ul><ul><li>Create new Sales Enablement Tools </li></ul></ul><ul><ul><li>“ Go Digital” with strong corporate-led digital marketing operations. </li></ul></ul>
    23. 23. Marketers: Embrace Sales in 2010! What’s the Worst that Could Happen?
    24. 24. The CMO Advisory Practice Team Joe Ferrantino Research Analyst [email_address] Phone: 508-988-6973 Rich Vancil Vice President, EAG [email_address] Phone: 508-935-4327
    25. 25. Appendix <ul><li>IDC Tech Marketing Barometer Study. </li></ul><ul><li>March, 2010 </li></ul><ul><li>Survey Participant list and demographics </li></ul>
    26. 26. IDC Marketing Barometer 2010: Respondent List <ul><li>Actuate </li></ul><ul><li>Adobe </li></ul><ul><li>Autodesk </li></ul><ul><li>Avanade </li></ul><ul><li>Avaya </li></ul><ul><li>Brocade </li></ul><ul><li>CGI </li></ul><ul><li>Compuware </li></ul><ul><li>CSC </li></ul><ul><li>CSG </li></ul><ul><li>ECI </li></ul><ul><li>FICO </li></ul><ul><li>Freescale Semiconductor </li></ul><ul><li>FTI Consulting </li></ul><ul><li>Getronics </li></ul><ul><li>Hitachi Consulting </li></ul><ul><li>Infosys </li></ul><ul><li>Ingram Micro </li></ul><ul><li>Insight </li></ul><ul><li>Intechra </li></ul><ul><li>Intel </li></ul><ul><li>Intuit </li></ul><ul><li>Kronos </li></ul><ul><li>Lenovo </li></ul><ul><li>Lexmark </li></ul><ul><li>The Mathworks </li></ul><ul><li>Microsoft </li></ul><ul><li>NetApp </li></ul><ul><li>Novell </li></ul><ul><li>ON24 </li></ul><ul><li>Red Hat </li></ul><ul><li>Ricoh Americas </li></ul><ul><li>RWD </li></ul><ul><li>SAP </li></ul><ul><li>Siemens Enterprise Communications </li></ul><ul><li>SunGard </li></ul><ul><li>Sybase </li></ul><ul><li>Symantec </li></ul><ul><li>Tektronix </li></ul><ul><li>Teradata </li></ul><ul><li>Unisys </li></ul><ul><li>VeriSign </li></ul><ul><li>Xerox </li></ul>Total Revenue: $290b Average Revenue: $7b
    27. 27. February 2010: Marketing Budget Survey Respondents Respondents by Revenue Respondents by Title Respondents by Primary Industry Less than $500M 18% $1B to under $3B 18% $500M to under $1B 26% $3B to under $10B 20% $10B or more 18% Chief Marketing Officer 20% VP of Marketing 33% Marketing Manager 9% Other 7% Director of Marketing 31% Hardware 31% Software 42% Services 27%

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