Four Trends Impacting Demand Marketing Leaders in 2018

Four Trends Impacting Demand Marketing
Leaders in 2018
Laura Cross
Senior Research Director,
Demand Creation Strategies
SiriusDecisions
Kristen Cardinalli
Group VP,
Demand Generation
Marketo

Laura Cross
@lauracross
DATE TBD, 2017
2018 Demand Creation
Planning Assumptions

3 © 2017 SiriusDecisions. All Rights Reserved@SiriusDecisions
Quad Play
Mobile
Broadband
Phone
TV

Executive Summary
• Key issues
• What you will walk away with
• The scope of demand creation has expanded significantly in recent years, which can make
assessing the function’s overall competency challenging
• Reaching advanced competency levels requires investments in planning, automation,
integration, agility and the demand creation team
• SiriusDecisions has identified four areas of opportunity that should drive the priorities of
demand creation leaders in 2018
• Overview of the questions and answers that will drive marketing agendas in 2018
• Insight into where demand gen leaders must challenge entrenched assumptions
• Recommendations to support the development of capabilities in new or weak areas

Flagship
Model
Flagship
Model
Program Pendulum Scope of Demand
Creation
Delivery Mechanism
Management Model
Demand Waterfall
Demand Creation Strategies Priorities
Build and optimize
aligned demand
management
processes to increase
marketing's
contribution to pipeline
and growth.
Demand
Management
Process
Design, build and
execute demand
creation programs that
enable buyers
throughout their
decisionmaking
process.
Program Design,
Planning
and Execution
Understand, implement
and optimize the most
effective delivery
mechanisms.
Demand Program
Delivery
Mechanisms
Transform the demand
creation function to
ensure best-in-class
performance and
optimal business value
contribution.
Demand Functional
Design and
Development

Demand Creation Strategies Priorities
Question:
How do we
define
”the buyer”
in B-to-B?
Demand
Management
Process
Question:
Is our program
structure the
problem, or is a
tactic failing?
Program Design,
Planning
and Execution
Question:
How can I use
advanced
analytics to
decrease time
to action?
Demand Program
Delivery
Mechanisms
Question:
Are we as good
at demand
creation as we
think?
Demand Functional
Design and
Development

Demand Management Processes
Revisit Assumptions for Demand Management

SiriusPerspective:
Market
Market: Multiple company entities
cluster around a common market
segment attribute such as industry,
geography or enterprise size
What Do We Mean by “Buyer” in B-to-B?
While we often use the term “account” in b-to-b, an account is often not the true target
that product, marketing and sales have in mind when they think about the buyer.
Account Account: The buying entity – where
the contractual relationship exists
Buying Center Buying Center: A function or
department that the buyer persona is
associated with
Buying Group
Buying Group: A collection of
personas involved in the process to
buy an offering
B-to-B Buyer Audience Echelons
Persona
Persona: An individual characterized
by job role

SiriusPerspective:
Buying Group
Champions Ratifiers Influencers CXOs

SiriusPerspective:
Buying
Group
When defining Buying Groups
they are personas
Later, as we interact and get to
know them, they become real
people

SiriusPerspective:
Buying Groups and Their Needs Form Demand Units
A demand unit consists of a buying group that has been organized to address needs
the organization is challenged with.
Buying
Group
• Unique
Perspectives
• Biases
• Influence/
Power Relationships
• Unique Perspectives
• Biases
• Influence/ Power
Resources
• Ability to
source and
mobilize
resources

SiriusPerspective:
Buying Groups and Their Needs Form Demand Units
A demand unit consists of a buying group that has been organized to address needs
the organization is challenged with.
UrgencyFit
Needs
• Organizational
• Functional
• Individual

Demand Units: Defining B-to-b Buyers
Needs
Demand units are buying groups
with needs addressed by the
solution
Fit
What does a good-fit
need look like?
What causes buy
cycles to start and
what influences their
prioritization?
+
Relationships
Who engages with
sellers & influences
purchase?
What resources must the
group command to
acquire the solution?

SiriusPerspective:
Operationalizing Demand Units
Any given organization may represent one or many buying centers, and each buying
center has unique needs and business requirements.
Identifying Buying Centers:
Marketing
Sales
Finance
TeleservicesBusiness Intelligence ToolsProject Management Application
Americas
EMEA
APAC
Product Management
IT
Marketing

SiriusPerspective:
Operationalizing Demand Units
Any given organization may represent one or many buying centers, and each buying
center has unique needs and business requirements.
Buying Group 1
HR
Buying Group 2
Customer Support
Buying Group 3
Sales
Need 1
Training/Compliance
Learning
Management
System
Learning
Management
System
Need 2
Talent Acq./Admin
HR admin/
talent
acquisition
Need 3
Skills Enablement
Skills
assessment/
enablement
Skills
assessment/
enablement
Skills
assessment/
enablement
• Low sample size markets can be mapped manually,
with sales providing most of the intelligence about
where potential Demand Units reside
• Larger markets require data and analytic processes
to identify potential demand units.

Replace Fuzziness With Clarity
In current lead management systems, your prospect pool looks like this…..And that obscures the reality, which looks like this…
Many individuals already working as buying groups.

Demand Program Design, Planning, Execution
Diagnose and Optimize Program Performance

SiriusPerspective:
Campaigns, Programs and Tactics Defined
Productive discussion of planning and measurement is grounded in a common
understanding of terminology; SiriusDecisions has created standards for key terms.
Campaign Program TacticProgram Family
• Theme based on
buyer need
• Drives go-to-market
strategy
• 12-month-plus
runtime
• All programs of a
specific type
• Reputation, demand
creation, sales
enablement, market
intelligence
• Quantifiable
objective
• Defined audience
• Integrated mix of
inbound and
outbound tactics
• Used in programs to
drive interactions
• Consists of an offer
and a delivery
mechanism

SiriusPerspective:
Common Challenges with Program Optimization
Barriers to program optimization keep demand marketers focused on small pieces of
the program that can only net incremental improvements.
Tactic Emphasis No Discipline Fear of FailureProgram Goals
Tactics are often
executed and
optimized in a siloed
manner
Lack of program
definition prevents
visibility of demand
creation impact
across tactics
Program and tactics
are executed with a
“set it and forget it”
approach
Culture does not
support smart failure,
so program owners
rely on what they
know

The SiriusDecisions Program Pendulum
3 4 5
Pendulum 1: Program Goals
Determine business objectives and
context.
Pendulum 2: Program Requirements
Validate what is required to meet
objectives.
Pendulum 3: Program Design
Define the best approach to engage
prospective buyers.
Pendulum 4: Tactic Deployment
Deploy and measure program
performance.
Pendulum 5: Program Diagnostics
Identify opportunities for optimization.

SiriusPerspective:
Program and Tactic Diagnostics: How It’s Done
Program and tactic diagnostics methodology leverages performance results,
hypothesis maps and pilot approaches to improve overall program performance.
Identify
Opportunity
Evaluate
Hypotheses
Prove
Hypotheses
Take
Action
Step
1
Step
2
Step
3
Step
4
Where? Why? How?
• Determine where
change can have
greatest impact
• Program component
vs. tactic component
• Consider all possible
courses of action to
improve performance
• Collect data
• Prioritize by
biggest impact
against ease of
implementation
• Control group
vs. test group
• Time to assess
impact change

SiriusPerspective:
Opportunity Identification: Program or Tactic?
The complexity of demand creation programs makes it even more challenging to
assess where the opportunities for optimization lie within the program.
Step 2
Step 3
Step 4
Identify
Opportunity
YES
Program
achieving goals?
YES
NO
NO
Tactics performing as
expected?
Fix Tactics
Fix
Program
Optimize
Tactics
Optimize
Program
YES
Area of
focus
NO

SiriusPerspective:
Program Test or Pilot Considerations
Specific tactic hypothesis map evaluation requires prioritization and appropriate data
collection in order to properly identify causes of underperformance.
Revisit marketing expectations for
contribution
Conduct buyer’s journey analysis
Test offer packaging and positioning
Test creative and images
Conduct touch analysis and
sequence/mix testing
Hypothesis Map Potential Actions
No Yes
Input
Execution
Poorly scoped program objective and
strategy
Offer and message not engaging
recipients
Wrong intensity of tactics
Audience needs and context
misunderstoodProgram? Tactics?
Wrong mix or sequence of tactics
Fix Program
Creative theme not engaging recipients
Revisit demand model
Complete buyer role/preferences
analysis to inform tactic testing

Key Considerations for a Pilot
Scope Pilot Test
Analyze/
Adjust
Share
Learning
• Determine
objective of pilot
and components to
be tested
• Execute test and
collect data
• Analyze data to
determine impact
• Adjust test as
necessary
• Review results with
broader group of
program owners
and stakeholders

Marketo Proprietary and Confidential | © Marketo, Inc.
A/B Testing to Determine
Where to Introduce Personalization

Where to Introduce Personalization?
Late StageMid StageEarly Stage
Winner: Generic From Name
Results:
• 10% higher open rate
• 26% higher click to open rate
• 38% higher click through rate
100% statistical significance
Results:
• 3% lower open rate
Results:
• 4% higher open rate
Since these numbers aren’t significant
and these are late stage leads, we stick
with the Personalized From Name.

Demand Program Delivery Mechanisms
Leverage Advanced Analytics to Guide Execution

Demystifying Artificial Intelligence
Inputs/ Experience Processes Abilities & Inferences
The ability to acquire and apply
knowledge and skills…Intelligence:Artificial Intelligence:
Technologies that acquire inputs,
and apply algorithms to make
decisions, predictions and
automate actions…

Machine Learning
Programs that learn from experience (generating
intelligence)
Deep Learning (aka Deep Machine Learning)
A machine learning technique/ subset
Artificial Intelligence:
automate actions…

Predictive analytics is the application of
artificial intelligence to find patterns in data
that allow us to make predictions about future
outcomes and to take appropriate actions.
AI and Predictive
automate actions…

Support humans
making better
decisions
Better
Increase the
speed with
which human
make decisions
Faster
Replace human
decisions –
especially
repetitive ones
Automatic
All use cases are about making decisions and automating actions…
automate actions…
predictions and automating actions…

Use Cases for Artificial Intelligence
Better Faster Automatic
Source &
Prioritize
Prospects
Insights for
Engagement
Sales Resource
Allocation
Sales
Performance
Management
Forecasting Cross-sell, Upsell
and Retention

Marketo ContentAI

Personalized Web & Email Campaigns
Require Significant Time and Effort
• Lost web traffic – 98% of web visitors are
anonymous and only a small percent
convert
• Lackluster email conversions – Marketers
typically don’t have time to test 2nd and 3rd
level CTAs in their emails
• Low Content ROI – Hundreds of content
assets but most are collecting virtual dust in
their Resources section

ContentAI Simplifies One-to-One
Personalization
ContentAI uses artificial intelligence to scale personalization by
automatically recommending the right content to each person across
web and email.
Web Email

• Analyzes performance of different assets for different audiences
• Machine learning algorithms learn which content works best and for
who in real-time – continuously optimized
• Add the human touch to AI – marketers determine what content
gets recommended, through which channels and where
• Bar, Rich Media, Email
Artificial Intelligence Provides Scale and Is
Balanced by Human Control

Demand Functional Design and Development
Continually Assess Demand Creation Capabilities

SiriusPerspective:
Demand Creation Priorities
Demand creation leaders have four key priorities that form the boundaries of the
function.
Build and optimize
aligned demand
management
marketing’s
and growth.
Demand
Management
Process
Design, build and
execute demand
enable buyers
throughout their
decisionmaking
process.
Program Design,
Planning
and Execution
effective delivery
mechanisms.
Demand Program
Delivery
Mechanisms
performance and
contribution.
Demand Functional
Design and
Development

SiriusPerspective:
Demand Creation Priorities
Demand creation leaders have four key priorities that form the boundaries of the
function.
Build and optimize
aligned demand
management
marketing’s
and growth.
Demand
Management
Process
Design, build and
execute demand
enable buyers
throughout their
decisionmaking
process.
Program Design,
Planning
and Execution
effective delivery
mechanisms.
Demand Program
Delivery
Mechanisms
performance and
contribution.
Demand Functional
Design and
Development
Big Companies
Small Companies
All Companies
Fractured Organization
Limited Resources
Staff Churn, Speed of Technology
Change, Corporate Insulation

The 10 Functional Capability Stacks of Demand Creation
Demand Management Process
Prospect
Insights
Lead
Management
Processes
Waterfall
Performance
Management
Automatic
integration of
prospect
insights
Automated and
adaptive lead
and SLA
management
Embedded
predictive
processes
Aggregation of
internal and
external
prospect
insights
Active
enforcement of
SLAs and lead
definitions
Application of
predictive
analytics
Prospect
attribute and
behavior
enrichment
Formal SLAs
and lead
definitions
Diagnostic
performance
based
management
Readily
available
prospect
information
Informal SLAs
and lead
definitions
Historical
descriptive
reporting
No insights Does not exist Ad hoc
Program Design, Planning and Execution
Program
Management
Discipline
Program
Execution and
Offers
Program
Performance
Management
Program agility
(acuity,
nimbleness)
Adaptive to
persona and
buyer’s journey
Program
diagnostics
Demand
modelling and
reconciliation
Multi-channel,
multi-tactic
integrated
programs
Program
analysis and
optimization
Demand
creation
program plans
Targeted and
objectives-
based programs
Program
performance
measurement
Tactical plans Batch and blast
Tactic
performance
measurement
Ad hoc Ad hoc No measures
Demand Program
Delivery Mechanisms
Delivery
Mechanism
Management
Digital
Capabilities
Adaptive
optimization of
delivery
mechanisms
Embedded
digital
Delivery
mechanisms
integrated and
aligned
Programmatic
integration of
digital and non-
digital
Individual
mechanisms
aligned to
programs
Integration
between digital
tactics
Delivery
mechanisms
managed
independently
Individual digital
tactic execution
Does not exist Web site only
Functional Design and
Development
Demand
Technology
Landscape
Organization
Design
Personalized
via adaptive
technology
Consultative
center of
excellence
Holistic
via augmented
technology
Cohesive unit of
shared services
Coordinated via
integrated
technology
Interdependent
team
Siloed via point
solutions
Independently
operating roles
No martech No staff
I
A
B
A = Advanced I = Intermediate B = Beginner
Demand
Profile
Can my team sustain a high level of
demand creation performance?

SiriusPerspective:
Prospect
Insights
Lead
Management
Processes
Waterfall
Performance
Management
Enthusiastic Beginners: Mastering the Basics
Demand creation functions frequently fall into one of several profiles.
Program
Management
Discipline
Program
Execution and
Offers
Program
Performance
Management
Demand Program
Delivery Mechanisms
Delivery
Mechanism
Management
Digital
Capabilities
Development
Demand
Technology
Landscape
Organization
Design
I
A
B
Enthusiastic
Beginners
Limited or mixed experience
Building credibility
Focused on the basics

SiriusPerspective:
Prospect
Insights
Lead
Management
Processes
Waterfall
Performance
Management
Enthusiastic Beginners: Mastering the Basics
Program
Management
Discipline
Program
Execution and
Offers
Program
Performance
Management
Demand Program
Delivery Mechanisms
Delivery
Mechanism
Management
Digital
Capabilities
Development
Demand
Technology
Landscape
Organization
Design
I
A
B
Enthusiastic
Beginners Become overwhelmed

SiriusPerspective:
Prospect
Insights
Lead
Management
Processes
Waterfall
Performance
Management
Super-Specialized: Creating Balance
Program
Management
Discipline
Program
Execution and
Offers
Program
Performance
Management
Demand Program
Delivery Mechanisms
Delivery
Mechanism
Management
Digital
Capabilities
Development
Demand
Technology
Landscape
Organization
Design
I
A
B
Super-
Specialists
Respected by organization
Pushing the envelope in some places

SiriusPerspective:
Prospect
Insights
Lead
Management
Processes
Waterfall
Performance
Management
Super-Specialized: Creating Balance
Program
Management
Discipline
Program
Execution and
Offers
Program
Performance
Management
Demand Program
Delivery Mechanisms
Delivery
Mechanism
Management
Digital
Capabilities
Development
Demand
Technology
Landscape
Organization
Design
I
A
B
Super-
Specialists
Siloed

SiriusPerspective:
Prospect
Insights
Lead
Management
Processes
Waterfall
Performance
Management
Competent Operators: Extending Integration
Program
Management
Discipline
Program
Execution and
Offers
Program
Performance
Management
Demand Program
Delivery Mechanisms
Delivery
Mechanism
Management
Digital
Capabilities
Development
Demand
Technology
Landscape
Organization
Design
I
A
B
Competent
Operators
Lengthy experience
Defined processes
Considered critical to organization

SiriusPerspective:
Prospect
Insights
Lead
Management
Processes
Waterfall
Performance
Management
Competent Operators: Extending Integration
Program
Management
Discipline
Program
Execution and
Offers
Program
Performance
Management
Demand Program
Delivery Mechanisms
Delivery
Mechanism
Management
Digital
Capabilities
Development
Demand
Technology
Landscape
Organization
Design
I
A
B
Competent
Operators Complacent

SiriusPerspective:
Prospect
Insights
Lead
Management
Processes
Waterfall
Performance
Management
Platonic Ideal: The Finish Line Is Always Moving
Program
Management
Discipline
Program
Execution and
Offers
Program
Performance
Management
Demand Program
Delivery Mechanisms
Delivery
Mechanism
Management
Digital
Capabilities
Development
Demand
Technology
Landscape
Organization
Design
I
A
B
Platonic
Ideal Perfect in every way

SiriusPerspective:
Prospect
Insights
Lead
Management
Processes
Waterfall
Performance
Management
Platonic Ideal: The Finish Line Is Always Moving
Program
Management
Discipline
Program
Execution and
Offers
Program
Performance
Management
Demand Program
Delivery Mechanisms
Delivery
Mechanism
Management
Digital
Capabilities
Development
Demand
Technology
Landscape
Organization
Design
I
A
B
Platonic
Ideal Please see us after class

SiriusPerspective:

Gaining momentum with
prospects & customers.
Finding out what works.
Seeing positive benefits.
Building momentum
internally. Starting to
automate within a single
channel. Measuring &
analyzing campaign
performance.
Recognizing inefficiencies
of current state.
Scrambling to respond to
needs of sales. Primarily
email only, maybe some
events. Ad hoc reporting.
Organization and processes
now aligned supporting
targeting & personalization.
Automated communication
across channel. Mature
reporting includes program
performance (FT, MT, LT).
Occasional attribution of
revenue to marketing
programs.
Strategic planning occurs
across the organization. 1:1
communication across a the
customer lifecycle. Listening
& responding to customers’
needs & desires with
automated. Personalized,
multi-channel programs.
Clear understanding as to
program objectives and
outcomes of marketing
generated revenue.
Strategic
Value
Engagement Marketing Maturity Curve

• 1 Year Goals & Objectives
• Cross-Functional Alignment
• Repeatable Processes
• Moderate Tool Integration
• Agreed Upon Metrics & KPIs
 Email – Trigger Campaigns
 Basic Nurture Campaigns
 Basic Email Personalization
 Demographic Segmentation
 Engagement Scoring
 Events, Webinar Programs
 End-to-End Reporting
 Insights for Non-Marketing Teams
 Social Marketing Integration
 Personalized Landing Pages
 Personalized Web Content
 Target Account Based Marketing
• Multi-Year Objectives
• Multiple BU Alignment
• Scalable, Cross-Business Processes
• Advanced Tool Integration
• Results-Based Collaborative Decision Making
 Multi-Channel Campaigns
 Advanced Nurturing
 Advanced Email Personalization
 Behavioral Segmentation
 Revenue Model Attribution
 Program & Campaigns Analyzers
 Mobile Integration (SMS & App)
 Predictive Web Content
 Multiple Integrated Data Sources
 Look-Alike Ad Targeting
• Company-Wide Multi-Year Objectives
• Global Alignment
• Globally Integrated Tools
• Predictive, Strategic Insights
 Lifecycle Nurturing
 Multi-Channel Predictive Content
 Omni-Channel campaigns
 Advanced revenue analytics
 Global/Enterprise-Wide
• Short-Term Goals & Objectives
• Limited Team Alignment
• Ad Hoc Processes
• Isolated Tools
• Tactical, Manual Decision Making
Business
Competency
 Email – Batch Campaigns
 Landing Page Creation
 Forms and Progressive Profiling
 Basic Segmentation
 Email/Landing Page Templates
 CRM/Data Source Integration
 Ad-hoc Campaign Reporting
 Email Deliverability Optimization
 Website Visitor Tracking
Marketing
Competency
Gaining momentum with prospects &
customers. Finding out what works. Seeing
positive benefits. Building momentum
internally. Starting to automate within a
single channel. Measuring & analyzing
campaign performance.
Recognizing inefficiencies of current
state. Scrambling to respond to
customer needs. Primarily email only,
maybe some events. Ad hoc reporting.
Organization and processes now aligned
supporting targeting & personalization.
Automated communication across channel.
Mature reporting includes program
performance. Occasional attribution of
revenue to marketing programs.
Strategic planning occurs across the
organization. 1:1 communication across a
customer’s lifecycle. Listening & responding
to customers’ needs & desires. Clear
understanding as to program objectives
and outcomes of marketing generated
revenue.
Strategic
Value
Engagement Marketing Maturity Curve

Demand Creation Strategies for 2018
Answer:
Track
engagement
across the
Buying Group
Demand
Management
Process
Answer:
Support “smart
failure” within
the programs
team
Program Design,
Planning
and Execution
Answer:
Define your
needs;
determine which
AI application fits
Demand Program
Delivery
Mechanisms
Answer:
Find out how
you stack up
against the four
DCS priorities
Demand Functional
Design and
Development

Action Items • Demand Management Process
• Marketing, Sales and Product work together to define
buying groups and their needs to track demand units
• Program Design, Planning and Execution
• Build testing and optimization plans directly into the
program planning process itself
• Demand Program Delivery Mechanisms
• Evaluate AI use cases against your needs and determine
your readiness to leverage AI
• Demand Functional Design and Development
• Regularly assess your demand profile to build a roadmap
that will drive sustainable improvements

Thank you!
Laura Cross
SiriusDecisions
Kristen Cardinalli
Group VP,
Demand Generation
Marketo

Four Trends Impacting Demand Marketing Leaders in 2018

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