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What the CEO Really Thinks of Marketing and 5 Things You Can Do About It,[object Object],Dave Kellogg,[object Object],www.kellblog.com,[object Object]
Intro and Disclaimers,[object Object],Intro,[object Object],Techie turned marketer,[object Object],Product marketing  VP marketing  CEO,[object Object],Ran marketing at BusinessObjects for 9 years during growth from $30M to $850M,[object Object],CEO of MarkLogic from $0 to $80M run-rate,[object Object],Disclaimer,[object Object],B2B background and bias,[object Object],During Q&A let’s see how we can apply these lessons to consumer-oriented businesses,[object Object]
Let’s Cut to the Chase,[object Object],What does the CEO really think of marketing?,[object Object]
or more specifically,[object Object],When most CEOs think marketing, they think this,[object Object]
John Wannamaker’s Famous Quote	,[object Object],“Half the money I spend on advertising is wasted; the trouble is I don't know which half.”,[object Object]
Scott McNealy At Sun’s Ten Year Anniversary Celebration,[object Object],Thanks to engineering for building our fine products,[object Object],Thanks to sales for selling our systems,[object Object],Thanks to customer support for servicing our customers,[object Object],Thanks to finance for accurately recording our profit and loss,[object Object],Thanks to facilities for maintaining our fine buildings,[object Object],Thanks to IT for running our internal systems,[object Object],Thanks to marketing for … whatever it is they do.,[object Object]
Business Objects GM Quote,[object Object],“Until I hired Charles, I must secretly admit that I never felt comfortable spending money on marketing.”,[object Object]
Why?,[object Object],Most CEOs do not understand marketing,[object Object],Few CEOs have worked in marketing,[object Object],Most come up through product or sales,[object Object],Marketing costs a lot of money,[object Object],Marketing spending is usually variable / discretionary cost … and easy to cut in a pinch,[object Object],Marketing delivers ambiguous returns,[object Object],Marketing agencies like bravado and the implication of voodoo and black magic (“marketing guru”),[object Object],(We do it to ourselves),[object Object]
Why?,[object Object],“If I hire an incremental salesperson, I get $1.7M.  If I hire an incremental marketer, I get <what>?”,[object Object],I have a strong marketing background,[object Object],I have been a CMO for over a decade,[object Object],I believe in marketing,[object Object],I consider myself a marketing person,[object Object],I confess to having had this thought,[object Object]
The Even-Darker CEO Thought,[object Object],The board wants 6 more points of operating margin,[object Object],I wonder if I stopped marketing completely would anybody even notice?,[object Object]
What Can We Do About It?,[object Object],Remember my marketing exists,[object Object],Measure helpfulness,[object Object],Be metrics driven,[object Object],Be accountable,[object Object],Do periodic ROI work,[object Object]
1. Why Does Marketing Exist?,[object Object],If we had a three-person company, what would we have?,[object Object],1 founder,[object Object],1 developer,[object Object],1 salesperson,[object Object],“Code, sell, or get out of the way.”,[object Object]
Why Does Marketing Exist?	,[object Object],Why might we add marketing,[object Object],Let’s not have every salesperson make his/her own slides,[object Object],Let’s be consistent in what we tell people,[object Object],Let’s generate leads for sales so they can focus on selling,[object Object],Someone needs to build the website,[object Object],Let’s capture that technical message in a white paper,[object Object],Let’s get the word out so sales isn’t calling on cold prospects,[object Object],…,[object Object],Marketing exists to makes sales easier,[object Object]
Make Sales Easier	,[object Object],I first heard this a product manager in 1987 from Chris Greendale (who went out to found CTG),[object Object],I embraced it and used it as a mantra that drove my marketing career from product manager to CMO of a $1B company,[object Object],Its simplicity is disarming,[object Object],It does not imply that marketing is tactical and not strategic,[object Object],Designing products that sell more easily in is included,[object Object],Strategic acquisitions (e.g., of competitors) are included,[object Object],Use this as a North Star to orient your organization,[object Object]
2. You Can Measure Helpfulness,[object Object],Periodic marketing internal satisfaction survey,[object Object],What tools have you used and to what extent are they useful?,[object Object],How is our marketing in an absolute sense?,[object Object],How is our marketing compared to other companies you’ve worked at?,[object Object],Please allocate 100 units of marketing resource to these categories of spend?,[object Object],What do you think of the website?,[object Object],What percent of your leads come from marketing?,[object Object],If you could change one thing in marketing, what would it be?,[object Object],Use the same research techniques on your internal customers as on your internal ones,[object Object]
The Ever-Popular People Quadrant,[object Object],% would,[object Object],want to ,[object Object],take on ,[object Object],salescall,[object Object],Best-kept ,[object Object],secrets,[object Object],Superstars,[object Object],The pack,[object Object],Soon to be ,[object Object],former,[object Object],employees,[object Object],% awareness,[object Object]
Get Respondee Demographics,[object Object],Have long have you worked at the company?,[object Object],How long have you worked in the industry?,[object Object],Did you make your quota last year?,[object Object],Enables slice-and-dice which can reveal very interesting patterns,[object Object]
The Helpfulness Key is Intelligent Debate,[object Object],Any idiot can show up and say “what do you want” and then do it,[object Object],A value-added marketer challenges sales during the conversation,[object Object],A “tough love” conversation,[object Object],I know you think you want that, but I think you don’t.  Let me explain why.,[object Object],You are my customer, and I am not a doormat,[object Object]
3.  Be Metrics-Driven,[object Object],Could be a two-hour speech in itself,[object Object],Use systems like Salesforce for leadsand opportunities and Eloqua or Marekto for incubation,[object Object],Report back on these metrics (e.g., at ops reviews),[object Object],Do not gag your audience with data,[object Object],Show them data; talk about insight and action,[object Object],Our top 5 campaigns were … and we are going to … ,[object Object],Our bottom 5 were … and we are going to … as a result,[object Object]
Easy Areas for Metrics,[object Object],Website,[object Object],Advertising / adwords,[object Object],Leads,[object Object],PR,[object Object],Salescalls,[object Object],Support calls,[object Object],Speeches,[object Object],Analyst meetings,[object Object],Trainings,[object Object],…,[object Object]
Take an Intelligent Approach to Metrics,[object Object],Don’t be a metrics slave,[object Object],Never do stupid things in the name of driving a metric,[object Object],Don’t incent your people blindly,[object Object],Thinks of metrics as a cockpit / dashboard,[object Object],Need to look at multiple panels to understand the situation,[object Object],Ask good questions that close loops,[object Object],Test your “knowledge”,[object Object],Do our A-scored leads actually convert at a better rate than the Bs?,[object Object],Hire a quant – if you’re not one, then get one,[object Object]
4. Be Accountable,[object Object],One of the fundamental tensions between sales and marketing results from marketing’s perceived lack of accountability,[object Object],Sales feels (and usually is) highly accountable,[object Object],Marketing can be perceived as a country club,[object Object],One way to make yourself more accountable is to publish goals and do quarterly assessment (e.g. , at ops review),[object Object],They will never see you as accountable as themselves, but they will appreciate the effort,[object Object],And it’s a best-practice anyway if only for alignment,[object Object],Wait a minute, you’re cancelling the XYZ!  We love that!,[object Object]
5.  Do Periodic ROI Work,[object Object],Most B2B sales processes are complex and involve multiple touches to multiple individuals from an organization over the course of months and years,[object Object],Most ROI studies are not believed by the people who read them,[object Object],Either on a external or internal basis,[object Object],(Aside:  prefer ROI tools to ROI calculations for external use),[object Object],Ergo measuring ROI of B2B marketing is extremely difficult on a forward basis,[object Object],Which programs lead to which sales?,[object Object]
Do Periodic ROI Work,[object Object],I prefer to periodically run it on a backwards basis,[object Object],Which sales were influenced by which programs?,[object Object],Marketing-influenced pipeline,[object Object],Helps the organization understand the difficulty of the problem,[object Object],Do not count angels on pinheads,[object Object],e.g., use surrogates like credit the last program or the first contact or the first program, etc.,[object Object]
Summary,[object Object],Most CEOs don’t understand marketing,[object Object],All CEOs worry that marketing money is wasted,[object Object],Marketing money is usually variable and easy to cut,[object Object],Marketing can proactively protect itself from the “I wonder if we stopped doing this would anyone care” question that the CEO will occasionally consider,[object Object],Marketing can do this by,[object Object],Remembering why it exists,[object Object],Measuring helpfulness,[object Object],Being metrics-driven,[object Object],Being accountable,[object Object],Periodically doing ROI work,[object Object]

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