Under Construction the Sales and Marketing Organization of the Future

Under Construction: The Sales and Marketing Organization of the Future May 12, 2010

Executive Summary

Key issues The current marketing structure must evolve to reflect changing marketplace and sales requirements Many marketing and sales functions will be required to work together on this change over the next five years The marketing organizational structure is not a panacea for all alignment issues What you will walk away with An overview of key roles that will change to reflect the second sea change An understanding of the importance of the demand center A view of what future organizational models might look likeSource: SiriusDecisions3

What Now?SiriusPerspective: As a result of the second sea change, the marketing and sales organizations must evolve.

MarketingResponsible for relationship initiation A broader array of programs will now be required Roles must be redefinedEnableate eler Accd ee S

SalesCr eSelfDirect

at e

Will rely more on internal resources for enablement Selling with social media skills becomes a requirement Readiness is essentialure

Search

Collaborate Engage

Nu rt

Source: SiriusDecisions4

POLL QUESTION

Where do you believe your greatest organizational change will occur over the next five years?1. 2. 3. 4. 5. 6.

Field marketing Web marketing Marketing operations Sales operations Product marketing There will be no change

5

New Roles Debut, Old Roles ChangeSiriusPerspective: The changes in sales and marketing will require organizations to rethink the charter of many functions.

Seed Corporate social media Analyst relations Web marketing

Create Field marketing Event marketing Campaign management

Nurture Field marketing Global marketing Product marketing Marketing operations Demand center Global / Product / Operations Nurturing specialist Inbound marketing manager Portfolio marketing

Enable Field marketing Marketing operations Sales enablement

Accelerate Field marketing Sales enablement

From

To

Communication s center Influencer relations Community development

Demand center model Modular Campaign design Segment managers

Product marketing Sales readiness Sales enablement

VP pipeline acceleration Programs manager: pipeline acceleration


The SiriusDecisions Demand Center ModelSiriusPerspective: xxxx. The demand center is a center-of-excellence model featuring advisory, execution and technical resources.

Teleprospecting Program Assembly

Telemarketing

Project Management Office Nurturing Plan

Campaign Execution

Call Center

Deployment Data Services Campaign Management

Demand Central

Play Alignment Web Anthropology

Infrastructure

Lead Management

Adaptive Marketing

Marketing Database


Demand Center: Key ElementsSiriusPerspective: The responsibilities of the demand center can be broken down into five key elements.

Demand Central: Highly leveraged, repeatable marketing activities which are centralized Infrastructure: Common marketing infrastructure CRM, MAP and measurement Telecenter: In-house or outsourced televendors managed either centrally or regionally Program Assembly/Execution: Marketing components centrally developed, then assembled and executed in regional centers Advisory Services: Agency-like service to provide local marketers with advice on how marketing programs should be deployedSource: SiriusDecisions8

Whats in Store for Field Marketing?SiriusPerspective: We see the role of field marketing move lower in the waterfall to tackle new challenges.Demand Center Event marketing Nurturing programs Portfolio marketing Campaign execution Teleservices Data services/targeting Field Marketing Pipeline acceleration Sales enablement Account-based marketing Campaign execution Event management Closed/Won BusinessSource: SiriusDecisions9

Inquiries

Marketing Qualified Leads (MQLs) Sales Accepted Leads Sales Qualified Leads (SQLs)

Demand Center: Success FactorsSiriusPerspective: Demand centers are only successful with the help of key enabling functions.

Product Marketing Global Marketing Marketing Operations Demand Central

Creates the go-to-market strategy May be focused by product or solution area Develops corporate campaign model Manages asset development Creates modular programs Develops central processes and measurement Manages infrastructure and measurement Manages budget and approval process Part of demand center model Data management and segmentation Highly repeatable activities


The Changing Role of TeleprospectingSiriusPerspective: More companies are choosing a hybrid model of outsourced and insourced teleprospecting.

Outsourced New Markets Nurturing Pipeline acceleration Research Appointment setting Insourced Qualification Key accounts Core markets


The Changing Role of TeleprospectingSiriusPerspective: More companies are choosing a hybrid model of outsourced and insourced teleprospecting.

Outsourced New Markets Nurturing Pipeline acceleration Research Appointment setting Insourced Qualification Key accounts Core markets


Web Marketing: A Change is ComingSiriusPerspective: The Web marketing role can no longer be relegated to a single function; a federated approach is necessary.

Corporate Marketing

Demand Center

IT

Marketing Operations

Online branding User experience Governance Content management strategy Product collateral Social media

Microsite deployment Landing pages SEM/SEO Online media Web nurturing Demand gen copy

Infrastructure/tools Systems development Web services Web data management

Web analytics Marketing data policy Marketing systems


Operations, UnifiedSiriusPerspective: The integrated sales pipeline is driving sales to redefine productivity in conjunction with marketing operations.Sales OperationsSales Performance Demand Creation Closed sales Pipeline Activity Leads Pipeline impact Sourced leads Closed deals

Marketing OperationsDemand Waterfall

Qualified

Solution Enablement Sales utilization Deal size Product launch uptake Selling time Acceleration Demo Deal velocity Influence Stakeholders

Propose Close


Productivity Engine: Sales OperationsSeed Create Nurture Enable Accelerate

VP Sales Operations

VP Field Operations

Worldwide Operations

Sales Technology

Sales Readiness

Sales Training & Development

Sales Planning & Analytics

Sales Programs

Region Operations

Sales Platforms CRM/SFA Systems Report Creation Internal Systems Sales Tools

Lead Management Content & Collateral Messaging Product Launch Campaign Support Competitive Intelligence Sales Communication

New Hire Training Sales Process & Methodology Skills Development Product Knowledge Industry Awareness Leadership Development SFA / Tools Capability

Expense & Budget Planning Territory Coverage Model

Briefing Center Proposal & Strategy Center Sales Support Client Demos

Sales Systems Sales Readiness Sales Training Reporting & Analytics Sales Programs

Reporting and Analytics Comp & Quota Planning Business Policy & Rules Pipelines & Forecast Deal Management

15

Productivity Engine: Sales OperationsSeed Create Nurture Enable Accelerate

VP Sales Operations

Sales Readiness VP FieldOperations

Worldwide Operations

Sales Technology

Sales Readiness

Lead Management

Sales Training & Development

Sales Planning & Analytics

Sales Programs

Region Operations

Sales Platforms CRM/SFA Systems Report Creation Internal Systems Sales Tools

Lead Management Content & Collateral Messaging

Content &New Hire Collateral Training MessagingSales Process & Methodology Skills Development Product Launch Knowledge

Expense & Budget Planning Territory Coverage Model

Briefing Center Proposal & Strategy Center Sales Support Client Demos

Sales Systems Sales Readiness Sales Training Reporting & Analytics Sales Programs

Reporting and Analytics Comp & Quota Planning Business Policy & Rules Pipelines & Forecast Deal Management

Product Product LaunchCampaign Support Competitive Intelligence

CampaignIndustry Awareness Support

Sales Communication

Competitive SFA Intelligence / ToolsCapability

Leadership Development

Sales Communication16

Marketing Operations Makes Its Own ChangesSiriusPerspective: The marketing operations role will need to expand , driven by greater data, systems and planning requirements.The Data Reality

B-to-B Marketing Automation

$1 $100 30% 5%

How much it costs to fix a contact upon it entering your database How much costs to keep a bad record in your database, use it and clean it up later Average percentage of bad records in a b-to-b database Average percentage of bad records in a best-in-class b-to-b database

2010 2015 7%-10% 30%+Less than 25% of organizations that have implemented a MAP fully currently utilize its potential

Doing More with Less Program investment will out pace personnel growth for the next five yearsSource: SiriusDecisions17

Marketing Operations: Alignments GlueSiriusPerspective: xxxx. Marketing operations is a key alignment function as it moves from a tactical role to a strategic imperative.Marketing Measurement Sales Alignment Best Practice Syndication/Training

Marketing Systems


Data Integration

Process Management Data Quality/Management

Budgeting/ Planning


Process and the Product Marketing FunctionSiriusPerspective: With greater upstream planning being implemented, product marketing has become a key alignment leader.Marketing Alignment MapBusiness UnitPRODUCT MANAGEMENT Product strategy Technology assessment Product roadmap Pricing Lifecycle management PRODUCT MANAGEMENT Product launch Technical content Use-case development Release management Solution alignment PRODUCT MANAGEMENT Knowledge requirements for sales Technical content for campaigns Social media PRODUCT MANAGEMENT SME support Training Launch support Analyst/press relations

Product StrategyPRODUCT MARKETING Target market definition Positioning Messaging Pricing Competitive analysis MARKET INTELLIGENCE Win/loss Syndicated research Primary research Client data

GTM StrategyPRODUCT MARKETING/ MARKETING OPS Sales launch plan Product knowledge Solution strategy Strategy interlock PRODUCT CORPORATE MARKETING Analyst relations Global campaign development Solution marketing

Demand CreationPRODUCT MARKETING GLOBAL MARKETING Program strategy Playbook defined Campaign content FIELD MARKETING MARKETING OPS Program assembly Program execution Lead distribution

Sales ReadinessPRODUCT MARKETING Competitive messaging SME sales support Product training Sales support SALES OPERATIONS/ CORP. MARKETING Marketing tools/collateral Sales training Sales systems

Marketing


The Marketing EcosystemSiriusPerspective: The marketing ecosystem is changing to one of specialized roles and shared services.Planning, Process, Data/Systems


Measurement, MAP, Best Practice

Community Development

Product Management

Product Marketing Solution Marketing Industry Marketing

Marketing Programs Campaign Model Asset Development Asset Management Playbook Creation Programs/tacticsEMEA Demand Center Demand Central APAC Demand Center NA Demand Center

Field Marketing Field Marketing Field Marketing Field Marketing Field Marketing

SeedBrand/Adv Influencer Relations

CreateMarcom Web Marketing

Nurture

Market Intelligence

Enable/ ExecuteLead Generation, Enablement, Acceleration Source: SiriusDecisions20

Awareness, Community, Nurturing

An Emerging Market OrganizationSiriusPerspective: Marketing organization structures will evolve with new roles emerging in all areas of marketing. $30MM-$500MM Product-centric/Sales/driven

Influencer relations Marcom Brand Social media strategy Director, Social Media

Product GTM Program content Social media content Director, Enablement Programs

Program Assembly Teleservices Web marketing

Marketing automation Best practices Dashboard Data

Channel development Marketing through partners

Program execution Best practices Dashboard Data

Director, Portfolio Marketing

Director, Nurturing Programs

Director, Pipeline Acceleration

Seed

Enable

Create/Nurture

Accelerate


The AggressorSiriusPerspective: As marketing organizations scale, the demand center and field marketing roles become more specialized.$500MM-$1B Solution-focused/market-drivenSeed Create Nurture Enable Accelerate








The Innovator$1B+ Efficiency/innovation-drivenSeed Create Nurture Enable Accelerate







Account Management


POLL QUESTION

Outside of organizational change, how else can marketing improve alignment to sales?1. 2. 3. 4. 5.

Improve communications Create more leads Develop pipeline acceleration campaigns Increase enablement programs Buy them beer!

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Build Your MenuSiriusPerspective: In addition to organization changes, marketing must align programs for sales in a more comprehensive manner.

Where do my clients gather online? What do they do on our Website? How can marketing help me get leads for clients and non clients? How can you help me nurture leads that arent ready for sales, or reinvigorate dead leads? I need to do my own marketing; how can you help me? Keep the leads coming but everything is stuck in my pipeline. What can you do?

Seed

Targeting Propensity to buy Awareness/favorability Net-new account marketing Cross-sell/upsell programs Programs by sales tier Web nurturing Pre-MQL nurturing Recycling/reconstitution Content assets Campaign-in-a-box Account-based marketing Reason-to-call programs Influencer-based programs Reference-based selling Pipeline acceleration Source: SiriusDecisions31

Create

Nurture

Enable

Accelerate

Program Alignment Menu

Direct

Channel

Inside

20% Marketing contribution to pipeline Demand generation/ enablement blend

Marketing through the channel with demand generation Enablement focused

Demand generation to feed outbound engine Volume-focused


Aligning MeasurementsSiriusPerspective: Marketing investment measurement will move to align to revenue, efficiency and sales impact.Avg. Program Spend 51% 52% 55% 58% 62% Avg. Program $/ Marketing Mgr $110K $181K $253K $265K $274K Avg. Program $ / Salesperson $31K $46K $53K $43K $38K Avg. Revenue $ / Marketing $2.4MM $5.4MM $8.5MM $9.1MM $36MM Average Pipeline Contribution 41% 33% 25% 18% 14%

Revenue Range $30MM$100MM $101MM $500MM $501MM-$1B $1B-$5B $5B +


Action Items

Measure Expand marketing measurements to reflect the sea change Link marketing KPIs to resources and revenue Align Develop a marketing menu to align to key sales questions and sales models Revisit the organizational model and determine how new functions will evolve over the next five years Transform Evolve your field marketing strategy to include a demand center strategy Build your future ecosystemSource: SiriusDecisions34

Recommended Research

Determining the Role of the Demand Center The Dawn of the Demand Center Sales Readiness 2.0: Ready, Set, Grow! Global Marketing Core Strategy Report


Documents

Under Construction the Sales and Marketing Organization of the Future