What the CEO Really Thinks of Marketing
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A talk that I gave at SVForum's Marketing SIG on 7/11/11 entitled What The CEO Really Thinks of Marke

A talk that I gave at SVForum's Marketing SIG on 7/11/11 entitled What The CEO Really Thinks of Marke

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What the CEO Really Thinks of Marketing Presentation Transcript

  • 1. What the CEO Really Thinks of Marketing and 5 Things You Can Do About It
    Dave Kellogg
    www.kellblog.com
  • 2. Intro and Disclaimers
    Intro
    Techie turned marketer
    Product marketing  VP marketing  CEO
    Ran marketing at BusinessObjects for 9 years during growth from $30M to $850M
    CEO of MarkLogic from $0 to $80M run-rate
    Disclaimer
    B2B background and bias
    During Q&A let’s see how we can apply these lessons to consumer-oriented businesses
  • 3. Let’s Cut to the Chase
    What does the CEO really think of marketing?
  • 4. or more specifically
    When most CEOs think marketing, they think this
  • 5. John Wannamaker’s Famous Quote
    “Half the money I spend on advertising is wasted; the trouble is I don't know which half.”
  • 6. Scott McNealy At Sun’s Ten Year Anniversary Celebration
    Thanks to engineering for building our fine products
    Thanks to sales for selling our systems
    Thanks to customer support for servicing our customers
    Thanks to finance for accurately recording our profit and loss
    Thanks to facilities for maintaining our fine buildings
    Thanks to IT for running our internal systems
    Thanks to marketing for … whatever it is they do.
  • 7. Business Objects GM Quote
    “Until I hired Charles, I must secretly admit that I never felt comfortable spending money on marketing.”
  • 8. Why?
    Most CEOs do not understand marketing
    Few CEOs have worked in marketing
    Most come up through product or sales
    Marketing costs a lot of money
    Marketing spending is usually variable / discretionary cost … and easy to cut in a pinch
    Marketing delivers ambiguous returns
    Marketing agencies like bravado and the implication of voodoo and black magic (“marketing guru”)
    (We do it to ourselves)
  • 9. Why?
    “If I hire an incremental salesperson, I get $1.7M. If I hire an incremental marketer, I get <what>?”
    I have a strong marketing background
    I have been a CMO for over a decade
    I believe in marketing
    I consider myself a marketing person
    I confess to having had this thought
  • 10. The Even-Darker CEO Thought
    The board wants 6 more points of operating margin
    I wonder if I stopped marketing completely would anybody even notice?
  • 11. What Can We Do About It?
    Remember my marketing exists
    Measure helpfulness
    Be metrics driven
    Be accountable
    Do periodic ROI work
  • 12. 1. Why Does Marketing Exist?
    If we had a three-person company, what would we have?
    1 founder
    1 developer
    1 salesperson
    “Code, sell, or get out of the way.”
  • 13. Why Does Marketing Exist?
    Why might we add marketing
    Let’s not have every salesperson make his/her own slides
    Let’s be consistent in what we tell people
    Let’s generate leads for sales so they can focus on selling
    Someone needs to build the website
    Let’s capture that technical message in a white paper
    Let’s get the word out so sales isn’t calling on cold prospects

    Marketing exists to makes sales easier
  • 14. Make Sales Easier
    I first heard this a product manager in 1987 from Chris Greendale (who went out to found CTG)
    I embraced it and used it as a mantra that drove my marketing career from product manager to CMO of a $1B company
    Its simplicity is disarming
    It does not imply that marketing is tactical and not strategic
    Designing products that sell more easily in is included
    Strategic acquisitions (e.g., of competitors) are included
    Use this as a North Star to orient your organization
  • 15. 2. You Can Measure Helpfulness
    Periodic marketing internal satisfaction survey
    What tools have you used and to what extent are they useful?
    How is our marketing in an absolute sense?
    How is our marketing compared to other companies you’ve worked at?
    Please allocate 100 units of marketing resource to these categories of spend?
    What do you think of the website?
    What percent of your leads come from marketing?
    If you could change one thing in marketing, what would it be?
    Use the same research techniques on your internal customers as on your internal ones
  • 16. The Ever-Popular People Quadrant
    % would
    want to
    take on
    salescall
    Best-kept
    secrets
    Superstars
    The pack
    Soon to be
    former
    employees
    % awareness
  • 17. Get Respondee Demographics
    Have long have you worked at the company?
    How long have you worked in the industry?
    Did you make your quota last year?
    Enables slice-and-dice which can reveal very interesting patterns
  • 18. The Helpfulness Key is Intelligent Debate
    Any idiot can show up and say “what do you want” and then do it
    A value-added marketer challenges sales during the conversation
    A “tough love” conversation
    I know you think you want that, but I think you don’t. Let me explain why.
    You are my customer, and I am not a doormat
  • 19. 3. Be Metrics-Driven
    Could be a two-hour speech in itself
    Use systems like Salesforce for leadsand opportunities and Eloqua or Marekto for incubation
    Report back on these metrics (e.g., at ops reviews)
    Do not gag your audience with data
    Show them data; talk about insight and action
    Our top 5 campaigns were … and we are going to …
    Our bottom 5 were … and we are going to … as a result
  • 20. Easy Areas for Metrics
    Website
    Advertising / adwords
    Leads
    PR
    Salescalls
    Support calls
    Speeches
    Analyst meetings
    Trainings

  • 21. Take an Intelligent Approach to Metrics
    Don’t be a metrics slave
    Never do stupid things in the name of driving a metric
    Don’t incent your people blindly
    Thinks of metrics as a cockpit / dashboard
    Need to look at multiple panels to understand the situation
    Ask good questions that close loops
    Test your “knowledge”
    Do our A-scored leads actually convert at a better rate than the Bs?
    Hire a quant – if you’re not one, then get one
  • 22. 4. Be Accountable
    One of the fundamental tensions between sales and marketing results from marketing’s perceived lack of accountability
    Sales feels (and usually is) highly accountable
    Marketing can be perceived as a country club
    One way to make yourself more accountable is to publish goals and do quarterly assessment (e.g. , at ops review)
    They will never see you as accountable as themselves, but they will appreciate the effort
    And it’s a best-practice anyway if only for alignment
    Wait a minute, you’re cancelling the XYZ! We love that!
  • 23. 5. Do Periodic ROI Work
    Most B2B sales processes are complex and involve multiple touches to multiple individuals from an organization over the course of months and years
    Most ROI studies are not believed by the people who read them
    Either on a external or internal basis
    (Aside: prefer ROI tools to ROI calculations for external use)
    Ergo measuring ROI of B2B marketing is extremely difficult on a forward basis
    Which programs lead to which sales?
  • 24. Do Periodic ROI Work
    I prefer to periodically run it on a backwards basis
    Which sales were influenced by which programs?
    Marketing-influenced pipeline
    Helps the organization understand the difficulty of the problem
    Do not count angels on pinheads
    e.g., use surrogates like credit the last program or the first contact or the first program, etc.
  • 25. Summary
    Most CEOs don’t understand marketing
    All CEOs worry that marketing money is wasted
    Marketing money is usually variable and easy to cut
    Marketing can proactively protect itself from the “I wonder if we stopped doing this would anyone care” question that the CEO will occasionally consider
    Marketing can do this by
    Remembering why it exists
    Measuring helpfulness
    Being metrics-driven
    Being accountable
    Periodically doing ROI work