By Bulldog Solutions

THE STATE OF DEMAND GENERATION 2012

Trends and Guidance

EXECUTIVE BRIEF

Demand Generat ion Unleashed

This executive brief summarizes a recent online panel discussion, “The State of Demand Generation 2012: Trends and Guidance,” presented by Bulldog Solutions, with guest panelists from Demandbase and The Annuitas Group. The panel discussion provides insights from a recent DemandGen Report publication, “The State of Demand Generation 2012.” In the discussion, revenue performance experts share the trends that are reshaping marketing as we know it, and offer guidance about how BtoB marketers can position their organizations to grow revenue for successful transformation. You can view the webinar in its entirety at http://www.bulldogsolutions.com/node/762.

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Executive Summary

The state of demand generation is not static; it’s changing rapidly by necessity. While BtoB buyers are shifting their behaviors, doing more research

and looking for even more control over the purchasing process, the way marketers are talking to their prospects must also shift. At the same time,

marketers are tasked with increased accountability to prove ROI on their activities.

This dynamic environment heralds in a new generation of marketing leadership. The role of the CMO is evolving from a functional department head

to that of a strategic business leader. CMOs are now positioning themselves as change agents in their organization, at the center of the process of

transforming their business.

The State of Demand Generation: Key Trends and Guidance

TREND #1Today’s BtoB buyers are more empowered than ever. In fact, DemandGen Report’s “2011: Inside the Mind of the B2B Buyer” survey revealed that

like consumers, BtoB buyers now want the ability to easily sample new products and have access to flexible pricing models. Further, while the survey

data in 2010 pointed to a significant shift in BtoB buying behavior, results in 2011 indicate that BtoB buyers are looking for even more control over the

purchasing process.

At the same time, the average number of decision makers in an enterprise organization is increasing. Practically speaking, this increases the length of

the buying cycle because there are more people to sell to.

What does this shift mean for BtoB marketers? Precision targeting and messaging strategies that focus on target accounts at the lower part of the

funnel are increasingly being adopted. Marketers are finding that segmentation and targeted messaging increase and enhance interaction with their

prospects in meaningful and measurable ways.

The Empowered BtoB Buyer

Source: DemandGen Report’s “2011: Inside the Mind of the B2B Buyer” survey

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TREND #2Marketing is charged with increased responsibility and accountability to deliver—and prove—ROI. What marketers are waking up to is that

in order to prove ROI on their marketing activities, their prospects need engagement at every stage of the buyer’s journey. As mentioned in Trend

#1, because there are more decision makers to reach in any one BtoB transaction, creating buyer personas is increasingly critical, as is the relevant

content required to communicate with each persona at each stage of the buying cycle.

Technologies such as marketing automation and CRM systems are allowing marketers to operationalize and automate these conversations and then

measure their efficacy much more easily than ever before.

The Buyer Persona

Source: Bulldog Solutions Buyer Persona Template

Economic Buyer Segmentation and Persona Example

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TREND #3As the BtoB buyer becomes more empowered, the relationship between Sales and Marketing is changing by necessity. In the past, Marketing

was responsible for generating leads and passing those leads “over the wall” to Sales; now, Marketing is increasingly held accountable for Marketing-

initiated revenue and in some cases, must account for up to 40% of net new revenue.

One of the ways Marketing has responded to this increased accountability is by starting their analysis of the buyer’s journey with the following

questions:

• “Where is our revenue currently coming from?”

• “How can we drive revenue quickly, measurably, with improved efficiencies and close rates?”

These questions have resulted in marketers shifting their focus in many instances to the bottom of the funnel, traditionally under the purview of Sales.

Marketing and Sales must now look at the entire funnel together—and the data gleaned from MAP and CRM—honing the tools and programs to

ensure all touch points, messages and handoffs between the top of funnel and lower funnel are closed. This requires a significant cultural shift.

TREND #4As technology and related processes increase in complexity, Marketing is experiencing an ever-widening skills gap that inhibits them from maximizing their program potential. SiriusDecisions predicts the adoption of marketing automation technology to increase by 50% over the next

three years. While technologies, and the ensuing processes required in order to implement them effectively, can facilitate marketers’ ability to prove ROI

on their activities, they also introduce new obstacles. Increasingly, there’s a gap between marketing capabilities and the skillsets needed to impact the

bottom line in a measurable way.

Focusing on pinpointing the areas where the gaps need to be filled—most often, content marketing, social media, analytics and of course,

technology—and then investing in the training required to master those disciplines, can mean all the difference in marketing automation’s ability to

impact revenue significantly.

The Evolving Role of the CMO

A 2011 Global Marketing Effectiveness Program conducted by The Fournaise Marketing Group indicates that 73% of CEOs surveyed think marketers

lack business credibility because they can’t prove that they generate business growth.

The trends outlined above point to the absolute necessity of the emergence of a new generation of marketing leader−the CMO−who is responsible for

much more than guiding the traditional marketing mix. The role of the CMO is evolving from a functional department head to that of a strategic business leader, positioning themselves as a change agent in their organization, and at the center of the process of transforming their business.

The historical view of marketing as the proverbial cost center is being replaced by CMOs who embrace the marketing transformation that’s under way

and are investing in people, processes and technology with two primary goals: delivering increasing value to empowered customers and measuring

Marketing’s contribution to the business in quantifiable terms.

This executive brief of “The State of Demand Generation 2012” confirms that challenges and opportunities abound for smart marketers who are

committed to developing transformational strategies—that encompass the whole value chain from Marketing to Sales to close—to grow their

company’s revenue growth.

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To learn more about how Bulldog Solutions helps marketing organizations make a direct impact on sales, email a revenue performance consultant at revenueperformance@bulldogsolutions.com.

About Bulldog SolutionsBulldog Solutions transforms BtoB marketers’ ability to deliver sales-ready prospects to meet business objectives and prove Marketing’s impact on sales. We are BtoB demand-generation specialists recognized for our approach by thought leaders in our industry. Bulldog Solutions is headquartered in Austin, Texas, with operations throughout North America and Europe. www.bulldogsolutions.com

© 2012 Bulldog Solutions. All rights reserved.