Effective Distributed Marketing
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Transcript of Effective Distributed Marketing
Effective Distributed Marketing
Jeff HodginsVice PresidentMarketing and
Strategic Business DevelopmentSeptember 2005
Copyright 2004 StorageTek
•Observations of the effects in a “leaderless” and unstructured decentralized marketing operation
• How a data driven process and structure improved effectiveness
• Make available a best practice tool for self evaluation
OBJECTIVES
Copyright 2004 StorageTek
Background
Company: StorageTek (Acquired by Sun-Sept 2005)
Business: Technology manufacturer, provider & services for Global 1000 for 35 years
Revenues: $2.2BillionEmployees: 7200Market share: 4% of $55Billion storage market
Over 30- 60% in targeted segmentsHQ: Louisville, ColoradoMarketing: 200 people/$85m budget @ 60/40 split
Copyright 2004 StorageTek
Key Executive says we are lost….
“Marketing has lost it’s effectiveness over the past two years, we are not part of any leading agenda’s, and not a recognized player in the Information Lifecycle Management (ILM) space.
I don’t know if we spend to much or too little or that what we do is worth what we spend today.
I don’t think I have seen a successful launch in 3 years”
September 2004
Copyright 2004 StorageTek
Situation
Marketing leader was a lawyer, acting in CMO role, as well as his day job
Field sales had taken the control of the marketing agenda (and money)
Marketing had become a pure service provider
Every who had marketing money, became their own mini CMO
Everyone had an opinion, but no one had any data
...marketing in disarray!
Copyright 2004 StorageTek
Process
1. Get the data
2. Analyze the data
3. Interpret what the data is telling you
4. Do something!!!
Understand the facts at hand..
Copyright 2004 StorageTek
What data do you want?
The Program Money
Where and how much marketing money is being spent (or planned to be spent) on what type of activityfor what purposefor what expected outcome..
The M People
Who, and how many are doing whatand how well prepared are they to do what they are doing…
Copyright 2004 StorageTek
How?
Set objective to capture the program spend by:
Advert/PromoAllinaces
Analyst Rel.Briefing Center
CollateralCommunications
Direct MailMarket Research
PRProduct Launch
Sales Support toolsSeminars
Sponsorship/EventsTrade ShowsWhite Papers
Other
Marketing Category Tactic/Initiative
AwarenessConsideration
Hit RateA & CC & H
All threeOther
Account Target
Global AcctsOEM
Strat AcctsCorp Accts
“White” Accts
BU Objective
21 Corp Goalsover 3
businessUnits
Corp. Theme
ArchiveData ProtectionConsolidation
All 3
Fund Type
Non- MDFMDF
Corporate MarketingField MarketingProduct MarketingChannel MarketingOEM Marketing
Across:
Copyright 2004 StorageTek
2005 Marketing Plan
Country/Region
Total 2005 Marketing Spend 32,139,428.33$
Detailed Marketing spend statistics:
Spend by "Initiative Type" $'s % Spend by "BU Objectives" * $'s %Advertising/Promo 1,158,692$ 4% ATS1 435,177$ 1%Alliances 24,995$ 0% ATS2 329,991$ 1%Analyst Relations 1,489,500$ 5% ATS3 447,793$ 1%Briefing Center 607,751$ 2% ATS4 387,545$ 1%Collateral 1,104,089$ 3% ATS5 54,300$ 0%Communications 1,566,272$ 5% ATS6 109,365$ 0%Direct Mail 2,303,778$ 7% ATS7 155,180$ 0%Financial Programs 149,836$ 0% ATS8 528,117$ 2%Market Research 1,764,277$ 5% ILMS1 821,695$ 3%Public Relations 2,387,782$ 7% ILMS2 336,854$ 1%Product Launch 393,580$ 1% ILMS3 188,555$ 1%Sales Support Tools 2,832,582$ 9% ILMS4 321,996$ 1%Seminars 1,465,337$ 5% ILMS5 292,389$ 1%Sponsorships/Events 5,994,303$ 19% ILMS6 31,696$ 0%Trade Shows 3,292,318$ 10% ILMS7 261,524$ 1%White Papers 860,615$ 3% GS1 76,388$ 0%Other 4,743,722$ 15% GS2 14,019$ 0%Total 32,139,428$ 100% GS3 70,336$ 0%
GS4 683,284$ 2%Spend by "Marketing Category" $'s % GS5 43,650$ 0%A- Awareness 3,879,739$ 12% GS6 150,697$ 0%C- Consideration 2,256,647$ 7% Other 26,398,874$ 82%H- Hit-rate 2,929,592$ 9% ATS Total 2,447,469$ 8%A & C 11,908,161$ 37% ILMS Total 2,254,710$ 7%C & H 3,745,506$ 12% GS Total 1,038,375$ 3%All Three 2,893,065$ 9% Total 32,139,428$ 100%Other 4,526,718$ 14%Total 32,139,428$ 100% Spend by "Corporate Theme" $'s %
Archive 928,171$ 3%Spend by "Account Target" $'s % Data Protection 912,812$ 3%Global Accounts 106,000$ 0% Consolidation 1,120,706$ 3%OEM 69,192$ 0% All Three 24,923,787$ 78%Red Accounts 926,943$ 3% Other 4,253,953$ 13%Strategic Accounts 1,120,831$ 3% Total 32,139,428$ 100%White Accounts 1,443,119$ 4%Other 28,473,343$ 89% Spend by "Fund Type" $'s %Total 32,139,428$ 100% MDF 878,568$ 3%
Non-MDF 31,260,861$ 97%Spend by "Quarter" * $'s % Total 32,139,428$ 100%Q1 8,131,799.67$ 25%Q2 8,588,012.03$ 27%Q3 8,004,137.22$ 25%Q4 7,415,479.41$ 23%
Worldwide
*Double counting exists… view %'s rather than $'s
Poor alignmentto corp. goals
Poor alignmentto corp. themes
Things weren’t right!
Shotgun@ market
Currentcustomerrelationships
Copyright 2004 StorageTek
Benchmarks
Key Deltas to Benchmark
People -19% Higher
Trade Shows –9% Lower
Trade Assoc – 5% Lower (Thought Leadership)
Sponsorships/Events - 5% Higher
Advertising - 11% Lower
Web Site – 2% Lower
Public Relations – 3% Lower
Communications – 2% Lower
Source: MarketingLeadership Council High Tech
Benchmarks 2004Competitive Intelligence, Analyst Relation, Strategy, Kickoff,
not included in Benchmark Marketing Spend
38
57
4
3
13
2145
6
3
3
2
5
3
8
3
1
3
3
3
4
3
123
52 1
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Benchmark STK 2005
Other
Kickoff/Club
TBD
Analyst Relations
Communications
Sales Support Tools
Sales Collateral
Web Site
Sponsorships/Events
Trade Associations
Market Research
Public Relations
Trade Shows
Advertising
Direct Marketing
People
Copyright 2004 StorageTek
Observations
34 individual control and execution points 900 individual activities Highly diffused spending across many small activities Greatest $$ on customer loyalty, retention, not acquiring new accts Duplication of efforts (Newsletters/Seminars/Advert/Collaterals/Direct
Marketing, Trade Shows) Geo field marketing plans only sales driven Significant field spending on awareness versus consideration & hit rate No line of sight from corporate and BU goals to targeted marketing
spend Lack of integrated launch tactics & spend Lack of consistent understanding of Marketing tactics Lack of effectiveness metrics and tracking
Copyright 2004 StorageTek
Outcomes so far..
This structured model was very well received, as people want structure. It became their tool to reposition marketing with respective management.
The model gave them a clear ability to benchmark and learn from within, as well as from outside.
It enabled a communication among peers, and management via a defined common language
It improved our planning ability
Alignment of the spend to the corporate and field priorities
Copyright 2004 StorageTek
Outcomes so far..
Worldwide Marketing Council formed Priorities agreed, went from 100’s small activities to key
campaigns, funding rebalanced Acct targeting changed significantly One to one large new accounts marketing strategy added Thought Leadership strategy established. Launch activities focused under single leadership New meaningful metrics in play Marketing getting a reputation for being in tune Marketing staff regaining confidence and leadership
Copyright 2004 StorageTek
Conclusions
Lawyers don’t make great marketing leaders People want structure, leadership and to be valued Good data is a powerful problem solver Process is key to alignment
Copyright 2004 StorageTek
Thanks for attending.