Effective Distributed Marketing

Effective Distributed Marketing

Jeff HodginsVice PresidentMarketing and

Strategic Business DevelopmentSeptember 2005

Copyright 2004 StorageTek

•Observations of the effects in a “leaderless” and unstructured decentralized marketing operation

• How a data driven process and structure improved effectiveness

• Make available a best practice tool for self evaluation

OBJECTIVES


Background

Company: StorageTek (Acquired by Sun-Sept 2005)

Business: Technology manufacturer, provider & services for Global 1000 for 35 years

Revenues: $2.2BillionEmployees: 7200Market share: 4% of $55Billion storage market

Over 30- 60% in targeted segmentsHQ: Louisville, ColoradoMarketing: 200 people/$85m budget @ 60/40 split


Key Executive says we are lost….

“Marketing has lost it’s effectiveness over the past two years, we are not part of any leading agenda’s, and not a recognized player in the Information Lifecycle Management (ILM) space.

I don’t know if we spend to much or too little or that what we do is worth what we spend today.

I don’t think I have seen a successful launch in 3 years”

September 2004


Situation

Marketing leader was a lawyer, acting in CMO role, as well as his day job

Field sales had taken the control of the marketing agenda (and money)

Marketing had become a pure service provider

Every who had marketing money, became their own mini CMO

Everyone had an opinion, but no one had any data

...marketing in disarray!


Process

1. Get the data

2. Analyze the data

3. Interpret what the data is telling you

4. Do something!!!

Understand the facts at hand..


What data do you want?

The Program Money

Where and how much marketing money is being spent (or planned to be spent) on what type of activityfor what purposefor what expected outcome..

The M People

Who, and how many are doing whatand how well prepared are they to do what they are doing…


How?

Set objective to capture the program spend by:

Advert/PromoAllinaces

Analyst Rel.Briefing Center

CollateralCommunications

Direct MailMarket Research

PRProduct Launch

Sales Support toolsSeminars

Sponsorship/EventsTrade ShowsWhite Papers

Other

Marketing Category Tactic/Initiative

AwarenessConsideration

Hit RateA & CC & H

All threeOther

Account Target

Global AcctsOEM

Strat AcctsCorp Accts

“White” Accts

BU Objective

21 Corp Goalsover 3

businessUnits

Corp. Theme

ArchiveData ProtectionConsolidation

All 3

Fund Type

Non- MDFMDF

Corporate MarketingField MarketingProduct MarketingChannel MarketingOEM Marketing

Across:


2005 Marketing Plan

Country/Region

Total 2005 Marketing Spend 32,139,428.33$

Detailed Marketing spend statistics:

Spend by "Initiative Type" $'s % Spend by "BU Objectives" * $'s %Advertising/Promo 1,158,692$ 4% ATS1 435,177$ 1%Alliances 24,995$ 0% ATS2 329,991$ 1%Analyst Relations 1,489,500$ 5% ATS3 447,793$ 1%Briefing Center 607,751$ 2% ATS4 387,545$ 1%Collateral 1,104,089$ 3% ATS5 54,300$ 0%Communications 1,566,272$ 5% ATS6 109,365$ 0%Direct Mail 2,303,778$ 7% ATS7 155,180$ 0%Financial Programs 149,836$ 0% ATS8 528,117$ 2%Market Research 1,764,277$ 5% ILMS1 821,695$ 3%Public Relations 2,387,782$ 7% ILMS2 336,854$ 1%Product Launch 393,580$ 1% ILMS3 188,555$ 1%Sales Support Tools 2,832,582$ 9% ILMS4 321,996$ 1%Seminars 1,465,337$ 5% ILMS5 292,389$ 1%Sponsorships/Events 5,994,303$ 19% ILMS6 31,696$ 0%Trade Shows 3,292,318$ 10% ILMS7 261,524$ 1%White Papers 860,615$ 3% GS1 76,388$ 0%Other 4,743,722$ 15% GS2 14,019$ 0%Total 32,139,428$ 100% GS3 70,336$ 0%

GS4 683,284$ 2%Spend by "Marketing Category" $'s % GS5 43,650$ 0%A- Awareness 3,879,739$ 12% GS6 150,697$ 0%C- Consideration 2,256,647$ 7% Other 26,398,874$ 82%H- Hit-rate 2,929,592$ 9% ATS Total 2,447,469$ 8%A & C 11,908,161$ 37% ILMS Total 2,254,710$ 7%C & H 3,745,506$ 12% GS Total 1,038,375$ 3%All Three 2,893,065$ 9% Total 32,139,428$ 100%Other 4,526,718$ 14%Total 32,139,428$ 100% Spend by "Corporate Theme" $'s %

Archive 928,171$ 3%Spend by "Account Target" $'s % Data Protection 912,812$ 3%Global Accounts 106,000$ 0% Consolidation 1,120,706$ 3%OEM 69,192$ 0% All Three 24,923,787$ 78%Red Accounts 926,943$ 3% Other 4,253,953$ 13%Strategic Accounts 1,120,831$ 3% Total 32,139,428$ 100%White Accounts 1,443,119$ 4%Other 28,473,343$ 89% Spend by "Fund Type" $'s %Total 32,139,428$ 100% MDF 878,568$ 3%

Non-MDF 31,260,861$ 97%Spend by "Quarter" * $'s % Total 32,139,428$ 100%Q1 8,131,799.67$ 25%Q2 8,588,012.03$ 27%Q3 8,004,137.22$ 25%Q4 7,415,479.41$ 23%

Worldwide

*Double counting exists… view %'s rather than $'s

Poor alignmentto corp. goals

Poor alignmentto corp. themes

Things weren’t right!

Shotgun@ market

Currentcustomerrelationships


Benchmarks

Key Deltas to Benchmark

People -19% Higher

Trade Shows –9% Lower

Trade Assoc – 5% Lower (Thought Leadership)

Sponsorships/Events - 5% Higher

Advertising - 11% Lower

Web Site – 2% Lower

Public Relations – 3% Lower

Communications – 2% Lower

Source: MarketingLeadership Council High Tech

Benchmarks 2004Competitive Intelligence, Analyst Relation, Strategy, Kickoff,

not included in Benchmark Marketing Spend

38

57

4

3

13

2145

6

3

3

2

5

3

8

3

1

3

3

3

4

3

123

52 1

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Benchmark STK 2005

Other

Kickoff/Club

TBD

Analyst Relations

Communications

Sales Support Tools

Sales Collateral

Web Site

Sponsorships/Events

Trade Associations

Market Research

Public Relations

Trade Shows

Advertising

Direct Marketing

People


Observations

34 individual control and execution points 900 individual activities Highly diffused spending across many small activities Greatest $$ on customer loyalty, retention, not acquiring new accts Duplication of efforts (Newsletters/Seminars/Advert/Collaterals/Direct

Marketing, Trade Shows) Geo field marketing plans only sales driven Significant field spending on awareness versus consideration & hit rate No line of sight from corporate and BU goals to targeted marketing

spend Lack of integrated launch tactics & spend Lack of consistent understanding of Marketing tactics Lack of effectiveness metrics and tracking


Outcomes so far..

This structured model was very well received, as people want structure. It became their tool to reposition marketing with respective management.

The model gave them a clear ability to benchmark and learn from within, as well as from outside.

It enabled a communication among peers, and management via a defined common language

It improved our planning ability

Alignment of the spend to the corporate and field priorities


Outcomes so far..

Worldwide Marketing Council formed Priorities agreed, went from 100’s small activities to key

campaigns, funding rebalanced Acct targeting changed significantly One to one large new accounts marketing strategy added Thought Leadership strategy established. Launch activities focused under single leadership New meaningful metrics in play Marketing getting a reputation for being in tune Marketing staff regaining confidence and leadership


Conclusions

Lawyers don’t make great marketing leaders People want structure, leadership and to be valued Good data is a powerful problem solver Process is key to alignment


Thanks for attending.

Documents

Effective Distributed Marketing