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

From Planning to Execution:
The Strategic Advantage of Efficient Marketing Operations

May 21, 2009
© 2009 MarketSphere Consulting, LLC

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

Marketing Planning to Execution Model
Efficient processes are critical to success

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

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

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

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

What’s on your CMO’s mind?

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

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

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.

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

The Case for a Marketing Operations Center of Excellence

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.

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

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

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

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

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)

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

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)

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

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

Role-based EMM Model (Sample Retail Client)

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

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 Lenskold Group, Inc.
Metrics and Measurement of Marketing Programs

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.

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

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

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%
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

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
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%

Questions and Answers

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

About MarketSphere

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

3
MarketSphere Services
A different approach.
We bring together strategic advisors and technology experts who deliver results.

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

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From Planning to Execution:

The Strategic Advantage of Efficient Marketing Operations

© 2009 MarketSphere Consulting, LLC

© 2009 MarketSphere Consulting, LLC 2

© 2009 MarketSphere Consulting, LLC 3

ENTER WORKFLOW DEMAND

© 2009 MarketSphere Consulting, LLC 4

Other projects, including

This chart represents an aggregate view of the flow of marketing

A B Corporate Marketing PMO C1 D

Close Campaign/ Track & In Market/

Customer sales and

© 2009 MarketSphere Consulting, LLC 5

© 2009 MarketSphere Consulting, LLC 6

Result: 90-day changeover to a fully integrated plan, improved on-time delivery of

• 4 Qtr Planning • Management • Weekly Report &

© 2009 MarketSphere Consulting, LLC 7

© 2009 MarketSphere Consulting, LLC

• CFO wants visibility into marketing performance

© 2009 MarketSphere Consulting, LLC 9

• The Challenging Economy

© 2009 MarketSphere Consulting, LLC 10

• 60 percent of respondents believe that

• Only 4.5 percent are satisfied with their

• Overall marketing operational

© 2009 CMO Council

This study was sponsored by Alterian.

© 2009 MarketSphere Consulting, LLC 11

© 2009 MarketSphere Consulting, LLC 12

© 2009 MarketSphere Consulting, LLC

The “business of marketing” is --

* Companies often use 12% as the “hurdle” rate.

© 2009 MarketSphere Consulting, LLC 14

Life Cycle/ Voice of the

© 2009 MarketSphere Consulting, LLC 15

Shared Services Eliminate duplication of resources and drive down

Enterprise Marketing Management Ensure proper alignment of marketing staff, marketing

© 2009 MarketSphere Consulting, LLC 16

Chief Marketing Officer

Brand Product & Voice of the Life Cycle/ Marketing

Marketing Marketing Shared Supply Chain/ Technology Support Human

© 2009 MarketSphere Consulting, LLC 17

• Create and monitor the annual Marketing Plan

Measurement: On-time and on-budget performance of actions plans in

© 2009 MarketSphere Consulting, LLC 18

• Manage and control the marketing budget

speak” and vice versa

of marketing budget dollars (or other

• Audit financial performance of suppliers;

Measurement: performance against plan(s), forecast accuracy, increased year-

© 2009 MarketSphere Consulting, LLC 19

• Manage marketing services

Measurement: reduction in the cost of operations, internal brand stewardship

© 2009 MarketSphere Consulting, LLC 20

• MS-Office is the technology workhorse of Marketing, especially MS-Excel

• The move to Customer-centricity drove the need for Customer Resources

© 2009 MarketSphere Consulting, LLC 21

SALES MARKETING FINANCE

Lifecycle Marketing Channel & MPM/ Marketing

Rented Lists/ Company

© 2009 MarketSphere Consulting, LLC 22

• An enterprise marketing management strategy

© 2009 MarketSphere Consulting, LLC 23