From Planning to Execution:
The Strategic Advantage of Efficient Marketing Operations
May 21, 2009




© 2009 MarketSphere...
Agenda
The Strategic Advantage of Efficient Marketing Operations

•   Introduction
•   What’s on your CMO’s Mind?
•   Mode...
Marketing Planning to Execution Model
Efficient processes are critical to success




© 2009 MarketSphere Consulting, LLC ...
Introduction
Example of a high-level marketing supply chain

                Primary or Secondary
                     Mar...
Introduction
Example of a mid-level marketing process map


                                                              ...
A marketing operations challenge
A story from my past

 $2.5 Billion global software company with 375 products/16 product ...
Transformational success
Proven results

     Result: 90-day changeover to a fully integrated plan, improved on-time deliv...
What’s on your CMO’s mind?




© 2009 MarketSphere Consulting, LLC
Issues facing the CMO and Marketing
Internal pressures

• CFO wants visibility into marketing performance
     – “What is ...
Issues facing the CMO and Marketing
External pressures

•     The Challenging Economy
•     “Internet effect”
        • 24...
CMO Council “Calibrate How You Operate” Study
2009 - Key Findings

• 60 percent of respondents believe that
  marketing op...
Marketing Imperatives
Marketing leaders address the pressures

• Demonstrate value - Identify more accurately and conclusi...
The Case for a Marketing Operations Center of Excellence




© 2009 MarketSphere Consulting, LLC
The Business of Marketing
MarketSphere definition




The “business of marketing” is --
the organization and management of...
The Five Roles of Marketing
Marketing Operations is the “Fifth Role” of Marketing




                                    ...
Marketing Operations Organization
Five key responsibilities


 Responsibility                       Advantage
 “Chief of S...
Marketing Operations organizational concept
Marketing Operations chief should be equal to the others




                 ...
Planning and Project Management Office
Managing the integrated project schedule

• Create and monitor the annual Marketing...
Marketing Governance
Managing the investment portfolio

• Manage and control the marketing budget
• Monitor and report fin...
Shared Services
A model for more efficient operations

• Manage marketing services
    – Graphic arts and writing
    – We...
Enterprise Marketing Management Strategy
Introduction

• MS-Office is the technology workhorse of Marketing, especially MS...
Marketing Automation Ecosystem
           A not-so-integrated set of technologies that support Marketing

                ...
Enterprise Marketing Management Strategy
Put into practice

• An enterprise marketing management strategy
  defines a goal...
Role-based EMM Model (Sample Retail Client)




© 2009 MarketSphere Consulting, LLC           24
Strategic Advantage
Gaining strategic advantage through efficient marketing operations

• Prepare for the economic rebound...
Strategic Advantage
Gaining incremental savings through efficient marketing operations

• Strategic advantage comes from b...
© 2009 Lenskold Group, Inc.




Metrics and Measurement of Marketing Programs




© 2009 MarketSphere Consulting, LLC
Lenskold Group Research
Key Findings – 2009 Marketing ROI and Measurements Study




“ We consistently see that the high p...
Marketing ROI Performance Trend
                                                                                  • Number...
Marketing Operations Capabilities
                                                                                  • Over...
Lenskold Group Research
                                                                                  Key Findings – 2...
Questions and Answers




© 2009 MarketSphere Consulting, LLC
Resource List


 Resource                                                 Website
 LinkedIn Forums                        ...
About MarketSphere




© 2009 MarketSphere Consulting, LLC
Enterprise Marketing
Improving the “business of marketing”

•     Advises the Chief Marketing Officer (CMO) in complex, gl...
MarketSphere Services
A different approach.

                     We bring together strategic advisors and technology expe...
Mayer G. Becker, Practice Director
                                      mayer.becker@marketsphere.com
                   ...
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Alterian Sponsored webinar about how to achieve strategic advantage through efficient marketing operations. 5/21/2009

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Alterian Webinar Market Sphere May 21 2009 Presentation Final V Print

  1. 1. From Planning to Execution: The Strategic Advantage of Efficient Marketing Operations May 21, 2009 © 2009 MarketSphere Consulting, LLC
  2. 2. Agenda The Strategic Advantage of Efficient Marketing Operations • 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 © 2009 MarketSphere Consulting, LLC 2
  3. 3. Marketing Planning to Execution Model Efficient processes are critical to success © 2009 MarketSphere Consulting, LLC 3
  4. 4. Introduction Example of a high-level marketing supply chain Primary or Secondary Market Research PLAN OBJECTIVES ----------------------- GATHER/ANALYZE INFORMATION REQUEST Database Analytics IDEATION ----------------------- WRITE CREATIVE BRIEF Past Results ENTER WORKFLOW DEMAND Product Managers SUPPLY BUILD Marketing Managers Human Resources Text Sales Graphics Field Marketing Video 1) Create, gather, edit 2) Integrate 3) Review & Approve Finance Audio component materials Manufacturing Pictures Corp. Communication Data Field Offices Foreign Offices Source: Existing, 4) Produce 5) Distribute Created, Purchased or Licensed FULFILLMENT 6) Report and evaluate CHANNEL Mass Advertising Digital Response or Direct Response Knowledge Asset Library Repository Action Website & Social Media ----------- ------------ Collateral Content Manager KPI’s Packaging Point-of-Sale © 2009 MarketSphere Consulting, LLC 4
  5. 5. Introduction Example of a mid-level marketing process map Other projects, including C2 Customer Communications This chart represents an aggregate view of the flow of marketing campaigns through Corporate Marketing in a hypothetical company. Project Brief A B Corporate Marketing PMO C1 D Creative Marketing Planner Brief Business Unit --------------------- Messaging & Campaign/Program ------------------- Review & Develop Media Plans Development Need Identified Marketing Charter Media Brief Financial Investment Agencies/Vendors Close Campaign/ Track & In Market/ Production After-Action Review Report Results Go Live Optimize Campaign Customer sales and H G campaign response F E data, ROMI analytics © 2009 MarketSphere Consulting, LLC 5
  6. 6. A marketing operations challenge A story from my past $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 © 2009 MarketSphere Consulting, LLC 6
  7. 7. Transformational success Proven results 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. Help Improve Apply People Process Technology Change • 4 Qtr Planning • Management • Weekly Report & Horizon tool to track Red Flag Status projects • Integrated • EVP Support Calendar • Reports based • Deliver as on Milestones • Standards Promised © 2009 MarketSphere Consulting, LLC 7
  8. 8. What’s on your CMO’s mind? © 2009 MarketSphere Consulting, LLC
  9. 9. Issues facing the CMO and Marketing Internal pressures • 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 © 2009 MarketSphere Consulting, LLC 9
  10. 10. Issues facing the CMO and Marketing External pressures • 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 © 2009 MarketSphere Consulting, LLC 10
  11. 11. CMO Council “Calibrate How You Operate” Study 2009 - Key Findings • 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 CMO Council This study was sponsored by Alterian. Visit www.alterian.com for a copy of the report. © 2009 MarketSphere Consulting, LLC 11
  12. 12. Marketing Imperatives Marketing leaders address the pressures • 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 © 2009 MarketSphere Consulting, LLC 12
  13. 13. The Case for a Marketing Operations Center of Excellence © 2009 MarketSphere Consulting, LLC
  14. 14. The Business of Marketing MarketSphere definition 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. © 2009 MarketSphere Consulting, LLC 14
  15. 15. The Five Roles of Marketing Marketing Operations is the “Fifth Role” of Marketing Product & Brand Innovation Marketing Operations Life Cycle/ Voice of the Revenue Customer © 2009 MarketSphere Consulting, LLC 15
  16. 16. Marketing Operations Organization Five key responsibilities Responsibility Advantage “Chief of Staff” to the CMO Focus the CMO on strategy and innovation, but focus a senior officer on marketing operations, including finance Marketing Governance Better manage the marketing investment portfolio and ensure alignment of investment with corporate goals Project Management Office Better manage marketing process and ensure “on time, on budget” programs Shared Services Eliminate duplication of resources and drive down cost of purchased services, improve productivity, and ensure consistency of brand and message across all programs, and communication channels Enterprise Marketing Management Ensure proper alignment of marketing staff, marketing Strategy operational processes and marketing automation with the objectives of the marketing department, and the company overall © 2009 MarketSphere Consulting, LLC 16
  17. 17. Marketing Operations organizational concept Marketing Operations chief should be equal to the others XYZ Incorporated Chief Marketing Officer Brand Product & Voice of the Life Cycle/ Marketing Innovation Customer Revenue Operations Marketing Marketing Shared Supply Chain/ Technology Support Human Planning / PMO Governance Services Purchasing Resources © 2009 MarketSphere Consulting, LLC 17
  18. 18. Planning and Project Management Office Managing the integrated project schedule • 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 Measurement: On-time and on-budget performance of actions plans in conjunction with assigned managers © 2009 MarketSphere Consulting, LLC 18
  19. 19. Marketing Governance Managing the investment portfolio • 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 Corporate Objectives speak” and vice versa Marketing Objectives • Ensure alignment and reporting of corporate objectives to marketing budgets Marketing Budget and results • Recommend to CMO the optimal allocation Programs & Activities of marketing budget dollars (or other currencies) Results • Audit financial performance of suppliers; ensure compliance with corporate Corporate objectives aligned with purchasing guidelines marketing budget and programs • Provide Sarbanes-Oxley compliance Measurement: performance against plan(s), forecast accuracy, increased year- over-year ROMI (return on marketing investment) © 2009 MarketSphere Consulting, LLC 19
  20. 20. Shared Services A model for more efficient operations • 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 Measurement: reduction in the cost of operations, internal brand stewardship score, “internal customer” satisfaction – service delivery level © 2009 MarketSphere Consulting, LLC 20
  21. 21. Enterprise Marketing Management Strategy Introduction • 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) © 2009 MarketSphere Consulting, LLC 21
  22. 22. Marketing Automation Ecosystem A not-so-integrated set of technologies that support Marketing Legend CRM: Customer Relationship Marketing ERP: Enterprise Resource Planning COMPANY KPI: Key Performance Indicators Ver 2.2 MOM: Marketing Operations Management SFA: Sales Force Automation Entity SALES MARKETING FINANCE Function Lifecycle Marketing Channel & MPM/ Marketing Corp. Comm Brand/Product Sales Operations Demand Management Partner Analytics & Communications PR Management Customer Service Mgmt ** Research Marketing Svcs Analytic Tools SFA Campaign Digital Marketing Procurement CRM PR/Media Database Mgmt ** Asset Operations ------------ Management Mgmt Mgmt Accounting Application KPI Dashboards MARCOM Sales Self-Service Enablement System Corporate Marketing Info Systems Data Mart Optionally, could connect directly to an ERP system for replenishment of packaging & print materials (i.e., user manuals) Rented Lists/ Company External Company Content Knowledge Intranet/ Sources CUSTOMERS Website Management Management Extranet VENDORS Repository Repository AGENCIES © 2007 MarketSphere Consulting LLC **Note: Companies operating Partner & Channel Management programs use PRM solutions. EMPLOYEES © 2009 MarketSphere Consulting, LLC 22
  23. 23. Enterprise Marketing Management Strategy Put into practice • 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 o Enables analytics and insights o Promotes reusability of content o Assures compliance o Promotes knowledge management o 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 Measurement: Reduced risk of non-compliance, reduction in production cycle times, reduction in “on boarding” time, cost savings, brand consistency, department productivity improvement © 2009 MarketSphere Consulting, LLC 23
  24. 24. Role-based EMM Model (Sample Retail Client) © 2009 MarketSphere Consulting, LLC 24
  25. 25. Strategic Advantage Gaining strategic advantage through efficient marketing operations • 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 © 2009 MarketSphere Consulting, LLC 25
  26. 26. Strategic Advantage Gaining incremental savings through efficient marketing operations • 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. Incremental Incremental Shareholder Growth Savings Value Free cash flow © 2009 MarketSphere Consulting, LLC 26
  27. 27. © 2009 Lenskold Group, Inc. Metrics and Measurement of Marketing Programs © 2009 MarketSphere Consulting, LLC
  28. 28. Lenskold Group Research Key Findings – 2009 Marketing ROI and Measurements Study “ 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 measure2009 • 9% of the population consider themselves “highly effective and efficient marketers” - Marketing ROI and 54% of them use some form of ROI measurement The fifth annual research study on & marketing ROI and measurements, featuring an assessment of current economic conditions and marketing operations on managing marketing Measurement effectiveness and growth. s Study Source: 2009 Lenskold Group / MarketSphere Marketing ROI and Measurements Study Available at www.lenskold.com. © 2009 MarketSphere Consulting, LLC 28
  29. 29. Marketing ROI Performance Trend • Number reporting the use of ROI and Does your firm calulate marketing profitability, ROI? profitability metrics has remained steady since 2008 6% • Organizational pressure from senior management is quite high 24% 35% • Firms using ROI are more likely to report Source: 2009 Lenskold Group / MarketSphere Marketing ROI and Measurements Study expecting greater growth than competitors 35% • Firms reporting that they calculate ROI are 3 times more likely to report marketing as No Somewhat Yes Don't Know “highly effective and efficient” How would you describe your firm’s expected Which statement best describes your growth relative to primary competitors? marketing effectiveness and efficiency? Much slower No clear read Somewhat slower Not effective or efficient About the same Not effective, but efficient Somewhat greater Somewhat effective Much greater Highly effective 0 10 20 30 40 50 0 10 20 30 40 50 60 Traditional Metrics Financial Metrics ROI Metrics Traditional Metrics Financial Metics ROI Metrics © 2009 MarketSphere Consulting, LLC 29
  30. 30. Marketing Operations Capabilities • Over half (59%) report dedicated marketing Does your firm have a dedicated marketing operations team operations team or person in place to manage resources, systems and processes? • Highly effective and efficient & greater growth more likely to have marketing operations team 3% • Firms reporting they have dedicated 38% Source: 2009 Lenskold Group / MarketSphere Marketing ROI and Measurements Study marketing operations report 59% – Use customer data to improve effectiveness – Use data/facts to improve spend decisions – Understand profit drivers to prioritize budget Yes No Don't know Does your firm have a dedicated marketing Does your firm have a dedicated marketing operations team or person in place to manage operations team or person in place to manage resources, systems and processes? resources, systems and processes? Don't know Don't know No No Yes Yes 0% 20% 40% 60% 80% 0% 20% 40% 60% 80% All Others Highly Effective & Efficient Slower Growth Greater Growth © 2009 MarketSphere Consulting, LLC 30
  31. 31. Lenskold Group Research Key Findings – 2009 Marketing ROI and Measurements Study • 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 Source: 2009 Lenskold Group / MarketSphere Marketing ROI and Measurements Study Which of the following are responsibilities managed by the marketing operations team or person? Don't know Other Agency relations Vendor relations (non-agency suppliers) Marketing technologies and/or systems Shared services (marketing communications, traffic logistics, purchasing) Marketing governance (i.e., budgeting/finance) Marketing project or program management (PMO) 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% © 2009 MarketSphere Consulting, LLC 31
  32. 32. Questions and Answers © 2009 MarketSphere Consulting, LLC
  33. 33. Resource List Resource Website LinkedIn Forums www.linkedin.com (Marketing Operations, MOCCA, Chief Marketing Officer) MOCCA http://www.moccabayarea.org/ (Marketing Operations Cross-Company Alliance) Industry Analysts www.aberdeen.com Aberdeen Group (Ian Michaels) www.forrester.com Forrester Research (Suresh Vittal) www.gartner.com Gartner Group (Kim Collins, PhD) Marketing ROI Consulting Firms Lenskold Group (Jim Lenskold) www.lenskold.com MarketingNPV (Pat LaPoint) www.marketingnpv.com VisionEdge Marketing (Laura Patterson) www.visionedgemarketing.com Representative EMM / MRM Software Companies Alterian www.alterian.com Aprimo www.aprimo.com MarketingPilot www.marketingpilot.com Unica www.unica.com MarketSphere Enterprise Marketing Practice www.marketsphere.com © 2009 MarketSphere Consulting, LLC 33
  34. 34. About MarketSphere © 2009 MarketSphere Consulting, LLC
  35. 35. Enterprise Marketing Improving the “business of marketing” • Advises the Chief Marketing Officer (CMO) in complex, global marketing organizations regarding marketing operations excellence • Provides integrated advisory and technology services, helping companies successfully transform their marketing operations into more effective ones • Proven approach that aligns marketing process, organization structure and new marketing technologies with measureable marketing strategy to improve return on marketing investment (ROMI) • Largest and most experienced consultancy dedicated to marketing operations, promoting a vision of marketing transformation Strategy & Applications & Partnerships with Marketing Operations Effectiveness Technology Market Leaders • Customer Measurement & • Centers of Excellence • Marketing Resources • Alterian Insight • Organizational Design & Management • Aprimo Corporation • Marketing Metrics, Capability Development • Campaign Management Measurement & ROI • Artestia Digital Media Group • Budgeting & Planning • Digital Asset • Marketing Spend & • Kodak Design2Launch • Process Management & Management Mix Optimization Workflow • Lenskold Group • Dashboards & Scorecards • Brand Strategy • TopRight, LLC • E-marketing © 2009 MarketSphere Consulting, LLC 3
  36. 36. MarketSphere Services A different approach. We bring together strategic advisors and technology experts who deliver results. © 2009 MarketSphere Consulting, LLC 36
  37. 37. Mayer G. Becker, Practice Director mayer.becker@marketsphere.com 180 N. LaSalle St., Suite 3120, Chicago, IL 60601 312.357.4405 LinkedIn: www.linkedin.com/in/mayerbecker © 2009 MarketSphere Consulting, LLC

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