WHAT DID YOU SELL TODAY? Your New Mandate In Technology Marketing

This American Marketing Association (AMA) roundtable event was held on June 2, 2004.

The Panel

  • Nikki Gore, Senior Marketing Manager, Enterprise Marketing, Microsoft Canada
  • Carl Griffin, Sales Consulting Vice President, Oracle Direct, Oracle Corporation Canada Inc.
  • Jeff Watts, Senior Vice President, Marketing and Alliances, SAP Canada Inc.
  • Nick Foster, Vice President, Marketing, Softchoice Corporation
  • Randy Fougere, Vice President, Marketing, RAND Worldwide

This discussion was moderated by Bob Becker, Principal, SMA.

How has general management’s view of marketing changed - is it “ What did YOU sell today?”

  • What has changed is that marketing now has to constantly demonstrate ROI. Marketing is integrated with sales, services and partners as it has been proven to be strategically important.
  • It’s all about ROI and focusing on traditional approaches to determine ROI. There is a significant shift, more coupling with sales, a push-pull relationship.
  • Marketing and sales work together to track ROI. We have increased our focus on marketing over the last few years, with an equal spend on marketing and sales.
  • The big change is a focus on CRM to measure ROI.
  • Two years ago we had to change our sales and marketing tacts. Originally, we needed to build awareness; now we’re focused on direct sales.
US versus foreign-owned: do subsidiaries have more difficulty in communicating to head office?
  • With world headquarters in Germany and North American headquarters in Philadelphia, we have to straddle both lines.
  • Previously, marketing had a lot of autonomy but it has now shifted to a centralized approach with more focus on relationship/partnership with sales.
  • North America is fairly simple and transparent. However, we have to downplay the fact that we are a Canadian company to the U.S. subsidiaries. Advantage is that we pay in Canadian dollars.
  • It’s more difficult with foreign-owned. We try to align sales and marketing and try to align all of the countries, which needs a good process.
Longer-term strategic marketing- where does it fit in now that we are more focused on sales?
  • We still have a healthy mix. We tend to focus our discussions on sales and now we have to leverage long-term marketing more strategically. The big M marketing has multiple roles - strategy at the executive level, subservient to it at a lower level.
  • The mix is still there, but percentages have changed, with more focus on lead generation. It forces you to become more effective in leveraging the Internet and partnerships to get an equal bang for less bucks.
  • The challenge is to identify ROI, but there is still importance placed on all aspects of marketing. Executives want us to focus on lead generation.
  • We’re all about measurement. Everything we do has to have a proven business case. Metrics are in place to measure all marketing disciplines to show progress and success.
  • With good brand awareness already in place you can spend less money on the brand. We utilize our brand awareness to drive new customers and new sales. Everything we do is tracked against brand and visibility.
Measuring soft marketing – how do you measure it?
  • We measure PR and brand awareness by applying points to type of audience and message. The total number of points lets us see the value.
  • We use traditional advertising and PR metrics. The key is that everyone in the organization understands the metrics – everyone buys into the metrics.
  • Applying metrics makes it easier for all to understand the value of any campaign.
  • To get a broader sense of marketing campaigns, we don’t necessarily get the sense of individual smaller campaigns. We have to get the sales organization to capture the value.
  • We try to drive everyone (prospects, customers, etc.) to back door of web site with a unique identifier which gives us a better picture of what campaign works and what doesn’t.
  • We have less money for soft marketing (golf tournaments, lunches, etc.). It’s more difficult to show the value of those activities.
How have you changed your internal communications regarding the value of marketing?
  • We need to provide sales with tools and qualified leads to show marketing’s value on a day-to-day basis to gain respect from the rest of the organization.
  • There has been a significant shift. We now have to articulate the role and value of marketing to the rest of the organization. We need to communicate how marketing functions, educate the organization.
  • We had to work hard to prove that marketing is more than just noise. Too much activity becomes less valuable. We needed to determine what the rest of the organization deemed valuable, then communicate back to them. It’s as much about relationship building as building value.
  • Educating the organization about what you’re doing and why -- then the proof is in the pudding.
In the technology arena, what is marketing and what is sales?
  • Everyone in the organization should consider themselves in sales.
  • Marketing is an arm of sales.
  • Direct sales is an element of Big “M” marketing – ultimately we are all in sales.
  • Sales people should have a marketing orientation and vice versa.
Is sales asking, “what has marketing sold today”?
  • We have so much focus on ROI and activities to generate sales. We need to get feedback from sales on what is working.
  • A better working relationship between sales and marketing is the key. Talk to your sales people, understand what they need, what they want, and what is bugging them. Then educate them on what marketing can and cannot do.
Lead complacency – no follow-up by sales to marketing-driven leads - why?
  • It’s great for marketing to put lead generation processes in place. The key is to have buy-in before putting these processes in place. Have the sales team set the criteria and amount of time for follow-up.
  • If sales are not going to buy in, then it is difficult for marketing to enforce – we need to gain sales feedback.
  • Ensure the quality of leads is good. “BANT” (budget/authority/need/timing) formula needs to be in place. Marketing needs to take ownership of the lead until its completion or death.
  • Put a campaign in place. Line up all the tools required, then track all sales calls at the end of the day. Determine whether the campaign worked. Gather sales feedback instantly.
  • Lead issues are clearly sales issues. Need to address all the customers’ needs when turning a lead over to sales.
What works well?
  • Very customer-driven campaigns that are not necessarily “splashy” relationship building activities are important. Focus on specific customer issues, not a brand-based focus. Focus on a targeted audience with specific activities.
  • The basics – everything has to be surgical. Small audience, qualified, specific product – more targeted and focused.
  • We utilized CRM to focus on the audience’s pain points and needs. It’s all about what is your pain and how can we help you - the solution/product eventually follows. We need to be more flexible and creative and leverage the client asset more effectively.

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