idc mass tlc march 18 2010 final
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MassTLC, IDC study, 2010 marketing studyTRANSCRIPT
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Tech Marketing in 2010: Investment and Budgeting Trends, Forecast, and Essential Guidance
Rich Vancil
Vice President, CMO Advisory Service
Executive Advisory Group, IDC
Mar-10© IDC
What Does It Cost to Create a New B2B Tech Customer?
13% of Total Revenue
Marketing Awareness Building(1.5% of revenue)
Marketing Demand Generation(1.5% of revenue)
Sales(11% of revenue)
Sales and Marketing Cost Envelope
Source: IDC
Mar-10© IDC
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%
Mar-10© IDC
You DO Have Enough Marketing Budget!
• Marketing $$ are ALWAYS scarce.
• Re-deploying dollars is easier than asking
for new dollars.
Mar-10© IDC
Source: IDC’s Technology Marketing Barometer, 2010 (n = 45)
Barometer Reading: Revenue Growth Sentiment
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%)
5
Mar-10© IDC
Increase60%Decrease
20%
No change
20%
Increase54%
Decrease13%
No change
29%
Don’t know 4%
Source: IDC’s Technology Marketing Barometer, 2010 (n = 45)
Barometer Reading: Marketing Budget Sentiment
Q. Will your Marketing Budgets change in 2010?
1st
Half ’10 2nd
Half ’10
6
Mar-10© IDC
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)
Ma
rke
tin
g In
ve
stm
en
t C
ha
ng
e,
20
09
to
20
10
Q. Will your Marketing Budgets change in 2010?
7
Mar-10© IDC
Marketing Budgets in Detail
8
Mar-10© IDC
“Programs + People” = 100% of Your Marketing Budget
Source: IDC’s CMO Advisory’s 2009 Tech Marketing Benchmarks Study
Programs (60%)
Advertising21%
Events18%
Marketingsupport & sales tools
18%
Digitalmarketing
13%
Directmarketing
11%
Other 3%Analyst relations 2%
PR 4%
Market intel. 5%
Collateral 5%
People (40%)
% 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%
9
Mar-10© IDC 10
Trends in Marketing Program Budget Allocations
Program Allocation for Hardware, Software and Services Companies
Advertising
21%
Events
18%
Marketing
Support & Sales
Tools
18%
Digital Marketing
13%
Direct Marketing
11%
Collateral
5%
Public Relations
4%
Analyst
Relations
2%
Other
3%
Market
Intelligence
5%
Social networking
and digital events
remain high-
growth
investment areas
• Continued push toward
smaller, more targeted
proprietary events
• Significant drop in
tradeshow investment
Print and broadcast
advertising down
year-on-year
Mar-10© IDC 11
*2009 Tech Marketing Benchmarks Database (n=75): program spend only
How Do You Allocate Your Digital Marketing Program Mix?
Program
Display Ads
24%
Marketing
19%
Search
Ads
19%
Web Site
17%
Digital Events
9%
SEO
7%
SocialNetworks
3%
Mar-10© IDC
Source: IDC’s Technology Marketing Barometer, 2010 (n = 45)
The Shifting Flow of New vs. Traditional Media in Marketing Budgets
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
12
Mar-10© IDC
Source: IDC’s Technology Marketing Barometer, 2010 (n=45)
Digital Program Priorities for 2010:
Increase
Decrease
Company web site
% of Respondents
Social networks/comm.
Digital events*
SEO
Search/display ads
Email marketing
Q. What Digital Marketing program areas
will grow or decline in 2010?
13
Mar-10© IDC 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.
1.9%
1.9%
2.1%
2.2%
3.1%
3.9%
4.8%
4.8%
5.4%
5.5%
5.6%
6.4%
6.8%
15.5%
25.4%
0% 5% 10% 15% 20% 25% 30%
Technical Marketing
Analyst Relations
Sales Enablement
Advertising
Public Relations
Market Intelligence
Marketing Operations
Event Marketing
Partner Marketing
Campaign Management
Direct Marketing
Digital Marketing
Marketing Communications
Field Marketing Support
Product, Industry, and Solution Marketing
% of Total Marketing Staff*2009 Tech Marketing Benchmarks Database (n=76)
14
Mar-10© IDC
Some Thoughts on Building MarketingBudgets and Organizations
15
Mar-10© IDC
The Challenge:Marketing’s Execution Is Bound by “Silos”
Corporate
Marketing
AnalystRelations
MarketingCommunications
Direct Marketing
Event Marketing
Digital and Social
MarketingOperations
Advertising
MarketIntelligence
PublicRelations
ProductMarketing
IndustryMarketing
Solution Marketing
Product
Marketing
Field
Marketing
FieldMarketing
RegionalMarketing Managers
Country and Local Marketing Managers
16
Mar-10© IDC
Corporate
PublicRelations
Events
Advertising
CampaignManagement
Don’t Think Silos … Think Circles
Product Field
SalesEnablement
Sales Region 3
Sales Region 4
Sales Region 2
Sales Region 1
ProductLine 3
ProductLine 4
ProductLine 2
ProductLine 1
17
Mar-10© IDC
An Emerging Organization Challenge for 2010: The Sales and Marketing “Mash-Up”
Sales
ChannelSales and
Operations
Regional/Country/
LocalSales
Sales VPsProduct
Marketing
IndustryMarketing
Solution Marketing
Product
Marketing
Corporate
Marketing
AnalystRelations
MarketingCommunications
Direct Marketing
Event Marketing
Digital and Social
MarketingOperations
Advertising
MarketIntelligence
PublicRelations
Field
Marketing
FieldMarketing
RegionalMarketing Managers
Country and Local Marketing Managers
Chief Sales Officer
18
Mar-10© IDC
(8.3%)
(4.5%)
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*
3.5%3.2%
19
IT global sales investment growth
4.7%
Mar-10© IDC
Marketing Organizational Changes Expected in 2010
Less centralization/regional and BU empowerment
Respondents Planning on This Change
2010
2009
Org
an
izati
on
al C
ha
ng
e T
yp
e
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
20
Mar-10© IDC
Source: IDC’s Technology Marketing Barometer, 2009 (n = 44)
Sales and Marketing Alignment: Priority Areas for Improved Alignment Abound
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
21
Mar-10© IDC
IDC Essential Guidance for Marketing Executives for 2010
• “Bundle” your new budget requests with budget savings
• Do not lose control over the “Three Pillars” of Marketing
• Create new Sales Enablement Tools
• “Go Digital” with strong corporate-led digital marketing operations.
22
Mar-10© IDC
Marketers: Embrace Sales in 2010!
What’s the
Worst that
Could Happen?
23
Mar-10© IDC
The CMO Advisory Practice Team
Joe FerrantinoResearch [email protected]: 508-988-6973
Rich VancilVice President, EAG [email protected]: 508-935-4327
24
Mar-10© IDC
Appendix
IDC Tech Marketing Barometer Study.
March, 2010
Survey Participant list and demographics
Mar-10© IDC
IDC Marketing Barometer 2010: Respondent List
Actuate
Adobe
Autodesk
Avanade
Avaya
Brocade
CGI
Compuware
CSC
CSG
ECI
FICO
Freescale Semiconductor
FTI Consulting
Getronics
Hitachi Consulting
Infosys
Ingram Micro
Insight
Intechra
Intel
Intuit
Kronos
Lenovo
Lexmark
The Mathworks
Microsoft
NetApp
Novell
ON24
Red Hat
Ricoh Americas
RWD
SAP
Siemens Enterprise Communications
SunGard
Sybase
Symantec
Tektronix
Teradata
Unisys
VeriSign
Xerox
Total Revenue:
$290b
AverageRevenue:
$7b
Mar-10© IDC
February 2010: Marketing Budget Survey Respondents
Respondents by Revenue
Less than $500M18%
$1B to under $3B18%
$500M to under $1B26%
$3B to under $10B20%
$10B or more18%
Chief Marketing Officer20%
VP of Marketing33%
Marketing Manager9%
Other 7%
Director of Marketing31%
Respondents by Title
Hardware31%
Software42%
Services27%
Respondents by Primary Industry
27