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Keeping Our Seat At The Table: A Marketing Report Card

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The modern marketing organization aspires to drive revenue, function as a strategic center of influence and provide leadership to the entire organization. How is it doing? In a benchmarking study sponsored by Pardot, a salesforce.com company, and Demand Metric seeks to find out. Join Jerry Rackley and Alison Gooch as they present and discuss the results of this study. The data provides a perspective - sometimes encouraging and other times sobering - that every modern marketer needs to understand.

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Keeping our seat at the Table: A Marketing Report Card Sponsored by: ! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Safe Harbor ! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Today’s Agenda ü  Background ü  Findings ü  Conclusions #PardotWebinar ü  Next Steps ü  Q & A Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
And the winner is… Carol O. LeadMinders.com #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Today’s Presenters: #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Alison Gooch Sales Manager Pardot, a salesforce.com company Jerry Rackley Chief Analyst Demand Metric Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Study Sponsor #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Pardot, a salesforce.com company Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
#PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Poll Question #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Study Background #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
How do we keep our seat at the leadership table? CEO ing rket a M #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Research Question: “What is the status of marketing’s evolution from a lead generation service bureau to a strategic, center of influence and revenue engine ?” §  How is marketing perceived internally? §  What level of influence does marketing have? §  How is marketing connecting its efforts to revenue? §  How hard is it for marketing to justify its budget? §  How “state-of-the-art” are marketing’s skills? Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. #PardotWebinar
Survey Categorization Data Role Type §  B2B: §  B2C: §  Both: 76% 14% 10% §  President/CEO: §  Marketing: §  Sales: §  Other: Annual Sales 15% 69% 7% 9% §  $10 million or less: §  $11 to $25 million: §  $26 to $100 million: §  $101 to $500 million: §  $501 to $1 billion: §  Over $1 billion: 29% 16% 19% 15% 7% 14% #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Study Findings #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Internal Perception of Marketing Highly profitable revenue center! 12%! 21%! Modestly profitable revenue center! Breakeven center! 8%! Necessary expense! 51%! 8%! Unnecessary expense! 0%! 10%! 20%! 30%! 40%! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. 50%! 60%!
Perceive Marketing as an Expense 70%! 60%! 50%! 40%! 30%! 57%! 44%! Necessary! Unnecessary! 20%! 10%! 0%! 6%! 8%! Non-marketers! Marketers! #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Expense Perception by Company Size 80%! 66%! 60%! 68%! Medium! Large! 52%! 40%! 20%! 0%! Small! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Marketing’s Contribution #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Contribution to Achieving Business Objectives 40%! 37%! 30%! 30%! 22%! 20%! 10%! 10%! 1%! 0%! None! Slight! Modest! Significant! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Indispensible!
Characteristics of “Indispensable” Marketing Orgs 57%! 60%! 50%! 43%! 36%! 40%! 30%! 53%! 32%! Everyone! 23%! "Indispensable"! 20%! 10%! 0%! Strategic orientation! High/complete alignment! Very/completely analytics driven! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. #PardotWebinar
Contribution by Company Size 80%! 74%! 66%! 60%! 53%! 40%! 20%! 0%! Small! Medium! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Large!
Leadership & Respect #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Involvement in Company Leadership & Strategy 50%! 41%! 40%! 29%! 30%! 17%! 20%! 11%! 10%! 2%! 0%! None! Little! Modest! Significant! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Leads entirely!
Leadership Perception by Company Size 70%! 61%! 60%! 47%! 50%! 40%! 40%! 30%! 20%! 10%! 0%! Small! Medium! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Large!
Respect Accorded Marketing vs. Other Functions 60%! 52%! 52%! 50%! 40%! 40%! 30%! 29%! Non-marketers! Marketers! 19%! 20%! 8%! 10%! 0%! Less! Same! More! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. #PardotWebinar
Marketing’s Revenue Impact #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Marketing’s Understanding of its Revenue Impact 50%! 45%! 45%! 41%! 39%! 40%! 38%! 34%! 33%! 35%! 30%! Everyone! 25%! 17%! 16%! 20%! Non-marketers! 19%! Marketers! 15%! 10%! 6%! 6%! 6%! 5%! 0%! None! Vague! Partial! Complete! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
The Revenue Marketing Journey ü  Traditional ü  Lead Generating ü  Demand Generating ü  Revenue Generating #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
The Revenue Marketing Journey 40%! 34%! 31%! 30%! 25%! 20%! 10%! 10%! 0%! Traditional! Lead Generating! Demand Generating! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Revenue Generating!
Difficulty Justifying the Marketing Budget 60%! 48%! 50%! 40%! 27%! 30%! 20%! 11%! 10%! 10%! 4%! 0%! Very difficult! Difficult! Neither difficult nor easy! Easy! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Very easy!
Marketing Skills #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Marketing Skills 40%! 30%! 20%! 38%! ü  Average: 4.8 ü  Average of “Complete understanding of revenue impact”: 5.3 22%! 19%! 10%! 10%! 7%! 1%! 3%! 0%! Obsolete, lagging! 2! 3! 4! 5! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. 6! State-of-the-art!
Analytics, Alignment & Orientation #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Extent Marketing Relies on Analytics? 40%! 32%! 29%! 30%! 28%! 20%! 10%! 7%! 4%! 0%! None! Slight! Moderate ! Great! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Total!
Sales & Marketing Alignment 50%! 39%! 40%! 28%! 30%! 20%! 20%! 9%! 10%! 4%! 0%! None! Slight! Modest! High! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Complete!
Orientation of the Marketing Function 50%! 39%! 40%! 28%! 30%! 18%! 20%! 11%! 10%! 4%! 0%! Very operational! Operational! Balanced! Strategic! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Very strategic!
Marketing Infrastructure #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Marketing Technology Landscape Email marketing! 83%! CRM! 63%! Content management/marketing! 60%! Marketing analytics! 55%! Social media analytics! 53%! Sales Enablement! 34%! Marketing Automation! 34%! Data cleaning/validation! 28%! Marketing attribution! 18%! Other! 1%! 0%! 10%! 20%! 30%! 40%! 50%! 60%! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. 70%! 80%! 90%!
Looking Ahead #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Changes to Boost Marketing’s Performance 48%! 48%! 48%! 45%! 42%! 39%! Additional technology/systems! Additional funding! Add staff! More marketing oriented company Training! Freedom to take creative risks! Greater leadership role for More empowerment! More agile marketing team! Improve marketing's reputation! Stronger executive support! Stronger marketing leadership! More accountable marketing team! Other! 34%! 33%! 32%! 31%! 29%! 24%! 19%! 4%! 0%! 10%! 20%! 30%! 40%! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. 50%! 60%!
Marketing’s Revenue Growth Drivers X  Technology/Systems +  Skills X  Funding +  Analytics X  Staff +  Alignment +  Orientation #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Conclusions #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Analyst Bottom Line ü  Analytics are key to transitioning from cost to revenue center ü  Build state-of-the-art skills ü  Achieve a high-degree of alignment ü  Keep the marketing team strategically oriented #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Dialogue welcome: ü  agooch@salesforce.com msweezey@salesforce.com @aliglassgooch ü  www.salesforce.com ü  @salesforce #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Q&A #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
For more information, visit us at: www.demandmetric.com Demand Metric Research Corporation #300 - 1275 West 6th Avenue, Vancouver, BC CANADA, V6H 1A6 Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.

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Keeping Our Seat At The Table: A Marketing Report Card

  • 1. Keeping our seat at the Table: A Marketing Report Card Sponsored by: ! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 2. Safe Harbor ! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 3. Today’s Agenda ü  Background ü  Findings ü  Conclusions #PardotWebinar ü  Next Steps ü  Q & A Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 4. And the winner is… Carol O. LeadMinders.com #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 5. Today’s Presenters: #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 6. Alison Gooch Sales Manager Pardot, a salesforce.com company Jerry Rackley Chief Analyst Demand Metric Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 7. Study Sponsor #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 8. Pardot, a salesforce.com company Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 9. #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 10. Poll Question #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 11. Study Background #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 12. How do we keep our seat at the leadership table? CEO ing rket a M #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 13. Research Question: “What is the status of marketing’s evolution from a lead generation service bureau to a strategic, center of influence and revenue engine ?” §  How is marketing perceived internally? §  What level of influence does marketing have? §  How is marketing connecting its efforts to revenue? §  How hard is it for marketing to justify its budget? §  How “state-of-the-art” are marketing’s skills? Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. #PardotWebinar
  • 14. Survey Categorization Data Role Type §  B2B: §  B2C: §  Both: 76% 14% 10% §  President/CEO: §  Marketing: §  Sales: §  Other: Annual Sales 15% 69% 7% 9% §  $10 million or less: §  $11 to $25 million: §  $26 to $100 million: §  $101 to $500 million: §  $501 to $1 billion: §  Over $1 billion: 29% 16% 19% 15% 7% 14% #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 15. Study Findings #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 16. Internal Perception of Marketing Highly profitable revenue center! 12%! 21%! Modestly profitable revenue center! Breakeven center! 8%! Necessary expense! 51%! 8%! Unnecessary expense! 0%! 10%! 20%! 30%! 40%! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. 50%! 60%!
  • 17. Perceive Marketing as an Expense 70%! 60%! 50%! 40%! 30%! 57%! 44%! Necessary! Unnecessary! 20%! 10%! 0%! 6%! 8%! Non-marketers! Marketers! #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 18. Expense Perception by Company Size 80%! 66%! 60%! 68%! Medium! Large! 52%! 40%! 20%! 0%! Small! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 19. Marketing’s Contribution #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 20. Contribution to Achieving Business Objectives 40%! 37%! 30%! 30%! 22%! 20%! 10%! 10%! 1%! 0%! None! Slight! Modest! Significant! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Indispensible!
  • 21. Characteristics of “Indispensable” Marketing Orgs 57%! 60%! 50%! 43%! 36%! 40%! 30%! 53%! 32%! Everyone! 23%! "Indispensable"! 20%! 10%! 0%! Strategic orientation! High/complete alignment! Very/completely analytics driven! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. #PardotWebinar
  • 22. Contribution by Company Size 80%! 74%! 66%! 60%! 53%! 40%! 20%! 0%! Small! Medium! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Large!
  • 23. Leadership & Respect #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 24. Involvement in Company Leadership & Strategy 50%! 41%! 40%! 29%! 30%! 17%! 20%! 11%! 10%! 2%! 0%! None! Little! Modest! Significant! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Leads entirely!
  • 25. Leadership Perception by Company Size 70%! 61%! 60%! 47%! 50%! 40%! 40%! 30%! 20%! 10%! 0%! Small! Medium! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Large!
  • 26. Respect Accorded Marketing vs. Other Functions 60%! 52%! 52%! 50%! 40%! 40%! 30%! 29%! Non-marketers! Marketers! 19%! 20%! 8%! 10%! 0%! Less! Same! More! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. #PardotWebinar
  • 27. Marketing’s Revenue Impact #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 28. Marketing’s Understanding of its Revenue Impact 50%! 45%! 45%! 41%! 39%! 40%! 38%! 34%! 33%! 35%! 30%! Everyone! 25%! 17%! 16%! 20%! Non-marketers! 19%! Marketers! 15%! 10%! 6%! 6%! 6%! 5%! 0%! None! Vague! Partial! Complete! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 29. The Revenue Marketing Journey ü  Traditional ü  Lead Generating ü  Demand Generating ü  Revenue Generating #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 30. The Revenue Marketing Journey 40%! 34%! 31%! 30%! 25%! 20%! 10%! 10%! 0%! Traditional! Lead Generating! Demand Generating! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Revenue Generating!
  • 31. Difficulty Justifying the Marketing Budget 60%! 48%! 50%! 40%! 27%! 30%! 20%! 11%! 10%! 10%! 4%! 0%! Very difficult! Difficult! Neither difficult nor easy! Easy! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Very easy!
  • 32. Marketing Skills #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 33. Marketing Skills 40%! 30%! 20%! 38%! ü  Average: 4.8 ü  Average of “Complete understanding of revenue impact”: 5.3 22%! 19%! 10%! 10%! 7%! 1%! 3%! 0%! Obsolete, lagging! 2! 3! 4! 5! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. 6! State-of-the-art!
  • 34. Analytics, Alignment & Orientation #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 35. Extent Marketing Relies on Analytics? 40%! 32%! 29%! 30%! 28%! 20%! 10%! 7%! 4%! 0%! None! Slight! Moderate ! Great! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Total!
  • 36. Sales & Marketing Alignment 50%! 39%! 40%! 28%! 30%! 20%! 20%! 9%! 10%! 4%! 0%! None! Slight! Modest! High! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Complete!
  • 37. Orientation of the Marketing Function 50%! 39%! 40%! 28%! 30%! 18%! 20%! 11%! 10%! 4%! 0%! Very operational! Operational! Balanced! Strategic! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. Very strategic!
  • 38. Marketing Infrastructure #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 39. Marketing Technology Landscape Email marketing! 83%! CRM! 63%! Content management/marketing! 60%! Marketing analytics! 55%! Social media analytics! 53%! Sales Enablement! 34%! Marketing Automation! 34%! Data cleaning/validation! 28%! Marketing attribution! 18%! Other! 1%! 0%! 10%! 20%! 30%! 40%! 50%! 60%! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. 70%! 80%! 90%!
  • 40. Looking Ahead #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 41. Changes to Boost Marketing’s Performance 48%! 48%! 48%! 45%! 42%! 39%! Additional technology/systems! Additional funding! Add staff! More marketing oriented company Training! Freedom to take creative risks! Greater leadership role for More empowerment! More agile marketing team! Improve marketing's reputation! Stronger executive support! Stronger marketing leadership! More accountable marketing team! Other! 34%! 33%! 32%! 31%! 29%! 24%! 19%! 4%! 0%! 10%! 20%! 30%! 40%! Demand Metric Research Corporation Copyright © 2014. All Rights Reserved. 50%! 60%!
  • 42. Marketing’s Revenue Growth Drivers X  Technology/Systems +  Skills X  Funding +  Analytics X  Staff +  Alignment +  Orientation #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 43. Conclusions #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 44. Analyst Bottom Line ü  Analytics are key to transitioning from cost to revenue center ü  Build state-of-the-art skills ü  Achieve a high-degree of alignment ü  Keep the marketing team strategically oriented #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 45. Dialogue welcome: ü  agooch@salesforce.com msweezey@salesforce.com @aliglassgooch ü  www.salesforce.com ü  @salesforce #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 46. Q&A #PardotWebinar Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 47. For more information, visit us at: www.demandmetric.com Demand Metric Research Corporation #300 - 1275 West 6th Avenue, Vancouver, BC CANADA, V6H 1A6 Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.
  • 48. Demand Metric Research Corporation Copyright © 2014. All Rights Reserved.