Watch a best practices webinar in marketing budgeting with leading industry analyst IDC and billion-dollar tech cloud and virtualization software company, VMWare. 3 Key Takeways: 1: Best Practices in Marketing Budgeting: Best practice insights and industry trends from the Head of IDC's CMO Advisory Council on managing marketing operating budget allocations 2: Global Budgeting Case Study: How VMWare manages their global marketing investments and budgets across their worldwide marketing organization 3: Building Alignment & ROI: How you can build alignment across your marketing organization to increase marketing's credibility, drive better ROMI, and impact the bottomline

1. WEBINAR
Best Practices in Marketing Budgeting for Improved
ROMI and Better Marketing Alignment
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Presenters:

2. Best Practices in Marketing
Budgeting for Improved ROMI and
Better Marketing Alignment
OCTOBER 2013

3. Host
Guest Presenters
Richard Sharp
Kathleen Schaub
Chethan Chandra
Chief Operating Officer
Vice President,
CMO Advisory Service
Senior Manager,
Business Operations
kschaub@idc.com
chandrac@vmware.com
richard.sharp@allocadia.com

4. Agenda
Improving Global Marketing Alignment with Better Budgeting
1 Overview of IDC’s Marketing Taxonomy and how you
can implement best practices to create better marketing
alignment
2 Case Study: How VMWare aligns their global marketing
organization
3 Key Takeaways
4 Q&A
Housekeeping
• Questions? Please use the Question and Chat Pane on the
GoTo Webinar Panel
• Technical difficulties? Contact brittany.wong@allocadia.com

5. 1
IDC’s Marketing
Taxonomy for
Better Marketing
Alignment

6. © IDC CMO Advisory Service 2013

7. IDC’s Hierarchy of Marketing Metrics
© IDC CMO Advisory Service 2013
© IDC CMO Advisory Service 2013

8. IDC’s Hierarchy of Marketing Metrics
Manage the company
© IDC CMO Advisory Service 2013
© IDC CMO Advisory Service 2013

9. IDC’s Hierarchy of Marketing Metrics
Manage the
marketing function
© IDC CMO Advisory Service 2013

10. IDC’s Hierarchy of Marketing Metrics
Manage
marketing activities
© IDC CMO Advisory Service 2013

11. Marketing
ROI
Return on Investment
© IDC CMO Advisory Service 2013

12. IDC’s Hierarchy of Marketing Metrics
Start with “I”:
Collect the right
investment data in
the right way…
© IDC CMO Advisory Service 2013

13. IDC’s Hierarchy of Marketing Metrics
… to ensure a
useful, accurate,
measurement of “R”
© IDC CMO Advisory Service 2013

14. Organize Data into Taxonomy
Marketing
Programs
1
Advertising
Display Ads
Events
Search Ads
People
Marketing
Automation
Print
© IDC CMO Advisory Service 2013

15. Taxonomy Aligns
© IDC CMO Advisory Service 2013

16. Taxonomy Ensures Accuracy
and Completeness
???
???
Mutually
Exclusive
Collectively
Exhaustive
© IDC CMO Advisory Service 2013

17. Activity-based Benchmarking:
Measure What Marketing Does
People
Program Dollars
IDC Tracks 20+
Staffing Categories
IDC Tracks 40+
Program Categories
© IDC CMO Advisory Service 2013

18. Marketing
ROI
Return on Investment
© IDC CMO Advisory Service 2013

19. 2
How VMWare
aligns their
global marketing
organization

20. Pre - MRM
Direct
VMware Plans
Financi
al P.O.R
Meeting(s)
Dept Plans
Analysis
Forecast Tool
Planning
ERP
Forecast Rollup
(Marketing POR)
FP&A
Email to L1
Budget Managers
Master Project List
Actual Spend
Project Report
HR Systems
B-Mgrs
Region Dept
Budget
Global Dept
Budget
Status Report
MDF
CRM
Marketing BI
Key
Integrated:
Manual

21. Conjoint Analysis
Part Worth:
When multiple attributes come
together to describe the total
worth of the product concept,
the utility values for the
separate parts of the product
(assigned to the multiple
attributes) are part-worths
Value = Weight of an Attribute *
Rating of an attribute
Part Worths
What do we Value?
0.80
0.70
0.60
0.50
0.40
0.30
0.20
0.10
0.00
Simple
Part Worth
Run Reports
Audit Trail
Scalable
Measures ROI
Approval
Workflow
Instant
Spending
status
Ability to
Transfer
Funds
Avoid
redundancy
Timelines
0.60
0.72
0.60
0.42
0.54
0.35
0.70
0.50
0.41
0.57
Key Takeaways: (1) Team wants to eliminate manual work for spend management (by way
of Oracle integration). (2) ROI, while important, may not be part of MRM scope.

22. Change Management
IT approval / Resources
Executive
Approval
Our race to implementation

23. Aligning our internal stakeholders
On MRM
Benchmarking – IDC,
Funnel Spend, Product
allocations
Spreadsheets
Global/Field
Marketing
Separate
budgets.
Manual Churn
to get
Executive view
Single View of
Total Marketing
Spend – on
demand
Product
Marketing
On MRM. Consolidated
View of Product spend
Spreadsheets in each
Product group
FY14 planning. Need to get
view of Total Marketing $$.
Fire Drill. Manual.

24. 2012 Corp/Field Marketing Spend
Mature
Marketing Focus
Emerging

25. 2012 BU Marketing Spend
Mature
Marketing Focus
Emerging

26. Estimate – Savings / Year
6640 hours
(across 150+ users)
44 hours / person
or 5.5 days

27. VMWare – Summary
• Over 150 users on MRM … and growing
Positive Gains
• Allocadia solution has facilitated our
relationship with other organizations inside
VMware
• Mindshift: from spreadsheets to The Cloud
• Positive business process disruption …
takes time …
Challenges
• Priority on company IT roadmap
• Closed Loop Reporting - ROMI
Next Steps
• Expand User Population
• Standardize benchmarking

28. 3
Key Takeaways
• Taxonomy ensures alignment
for accurate measure of ROI
• Activity-based Benchmarking –
measure what Marketing does
• Use of Taxonomy & Allocadia
has driven alignment to
VMWare corporate strategy &
stakeholders
• Single view of marketing spend
on-demand
• ROI – significant time savings
for Marketing

29. 4
Q&A
Please post your questions in
the Question Pane and your
comments in Chat Pane.

30. Contact Us
Upcoming Webinar:
How to Align Marketing
Campaign Plans and
Budgets for Better ROI
THU, OCT 31, 2013
9 AM PT / 12 PM ET
Richard Sharp
COO of Allocadia
richard.sharp@allocadia.com
604. 639. 5736 x. 111
www.allocadia.com