RENOVATE TO INNOVATE™

Building Performance-Driven Marketing Organizations

Today’s top marketing executives admit that their group’s performance is not up to par, and that’s causing a lack of influence and credibility within the corporate hierarchy. In a new survey conducted by the CMO Council, only 10 percent of the respondents say their marketing groups are “highly influential and strategic” within the company, while less than half believe their teams are “well regarded and respected.” This at a time when two-thirds of CEOs polled say their marketing groups are mission-critical for creating top-line company growth.

Those are among the surprising findings in the CMO Council study “RENOVATE TO INNOVATE: Building Performance-Driven Marketing Organizations,” a four-month research initiative that gathered insights into how senior marketers plan to improve the yield and accountability of their organizations, as well as increase the value, effectiveness and stature of their marketing groups. The results come at a time when many marketing leaders appear to be struggling to add new analytic business skills, digital marketing competencies, demand generation processes, and customer acquisition and retention systems.

The concept of Performance-Driven Marketing and the roots of the RENOVATE TO INNOVATE initiative are closely related to the CMO Council’s Marketing Performance Measurement (MPM) study which launched in 2004. Results from that study showed that while 90 percent of CMOs polled felt that the ability to measure their marketing results was a significant priority--they wanted to better understand their own organization and initiatives--80 percent were unhappy with their ability to do so. Further, just 17 percent had a comprehensive marketing measurement system in place.

RENOVATE TO INNOVATE goes several steps further than the MPM initiative, examining current realities as well as the internal transformations, new skills and realignments necessary to further the value, yield, and accountability of marketing groups.

DESCRIPTION
SPONSORS
TASK FORCE
METHODOLOGY
KEY FINDINGS
WEBINAR
ALL PROGRAMS

SPONSORS

	MarketBridge works with leading global corporations to improve their go-to-market strategies, processes, and performance results. The firm provides a combination of professional services, technology-based analytic tools, and business process outsourcing (BPO) to grow top-line revenues and improve the productivity and yield of client's sales and marketing spending. www.market-bridge.com
	BtoB Magazine is the only publication dedicated to all disciplines of business-to-business marketing. Incorporating traditional channels with new techniques, BtoB covers online and offline advertising, campaign management, CRM, search, direct marketing, and more. This approach helps more than 100,000 senior-level marketers design a winning integrated marketing strategy for their companies. With 86% of subscribers responsible for developing a sound strategy, this is information and analysis they need to do their jobs better. www.btobonline.com
	Sales & Marketing Management is the leading authority for executives in the sales and marketing field. In every issue of the magazine, and on the Web site, readers have easy access to the most relevant trends, strategies, exclusive research, expert voices, and cutting-edge case studies designed to help them sell more, manage better, and market smarter. SalesandMarketing.com is a VNU Business Publications and VNU eMedia production. www.salesandmarketing.com
	Chief Executive is the only magazine written strictly for CEOs and their peers. As the leading source of intelligence for and about CEOs, it provides ideas, strategies and tactics for top executive leaders seeking to build more effective organizations. Chief Executive conveys the full range of the CEO experience: the corporate challenges, as well as the personal pressures and satisfactions that come with the most demanding job in business. The readers of Chief Executive include the world's most influential leaders - the CEOs of major corporations around the globe. They are not only shaping new economies around the world, but new societies as well. Chief Executive offers clear-eyed reporting of their successes - and their failures - in ways that illuminate, educate, entertain, and inspire other CEOs. Chief Executive is published ten times a year and delivered to a controlled circulation of 42,000 CEOs, Chairmen, Vice Chairmen, Presidents, COOs and other top executives. Total readership exceeds 170,000. www.chiefexecutive.net
	The Society for Marketing Professional Services (SMPS) was created in 1973 by a small group of professional services firm leaders who recognized the need to sharpen skills, pool resources, and work together to create business opportunities. Today, the association has a membership of 5,300+ marketing and business development professionals from architectural, engineering, planning, interior design, construction, and specialty consulting firms located throughout the United States and Canada. SMPS offers a marketing conference, national seminars, awards programs, publications, and educational resources to highlight the latest trends in marketing and business development in the design and construction industries. In addition, SsMPSs' 52 chapters hold educational events and regular meetings nationwide. www.smps.org
	Institute for the Study of Business Markets (ISBM) was founded in 1983 and is currently a leading Academic Center in Business-to-Business Marketing. The Mission of ISBM is to expand research and teaching in business-to-business marketing and sales in academia and to improve the practice of business-to-business marketing and sales in industry. We accomplish our mission through three agendas: Research, education, networking and interchange. ISBM is committed to a leadership role in bringing more talent into our discipline, accelerating high-quality practical research, and spearheading new ways to create more profitable B-to-B marketing and sales practice. www.smeal.psu.edu/isbm/aboutus.html

TASK FORCE

We felt the most useful way to understand Performance-Driven Marketing was to first go directly to top marketing executives. Hence the initiative began with the formation of a corporate task force, composed of 12 senior marketers from name-brand companies. Brands represented in our task force included:

Avaya
Thomson Financial
Siemens Building Technologies
Adobe Systems
Hewlett-Packard
IBM
Oracle
Intel
Xerox
McAfee
CDW
Intermec
Renovate Task Force Leader

METHODOLOGY

The CMO Council conducted one-hour interviews with each of the task force members, who revealed important pain points as well as best marketing practices. From their valuable input, a quantitative RENOVATE TO INNOVATE survey was crafted. This 30-question audit was fielded July through October 2005 by the CMO Council and to the readers and customers of media partners BtoB and Sales & Marketing Management magazines, as well as to the members of association partners: the Society for Marketing Professional Services (SMPS) and the Institute for the Study of Business Markets (ISBM) at Penn State University.

The survey was taken by 414 marketing executives across a variety of titles and industries. Nearly a quarter of respondents were from companies with revenues of $501 million or above; just over a third from companies with revenues of $51 million to $500 million; and about 45 percent represented companies with revenues of $50 million or below.

In addition, in order to gain greater insight into the chief executive officer’s perception of their marketing groups, the CMO Council fielded a special pulse-point survey of CEOs via media partner Chief Executive magazine.

KEY FINDINGS

Among the key findings of the RENOVATE TO INNOVATE research:

Alignment: More than 40 percent of marketers polled say that their organization’s alignment with the company mission falls somewhere between “average” and “not well-aligned.”

Knowledge Gaps: Top areas of weakness: customer insight and access (46 percent); strategic depth and business knowledge (39 percent) and marketing analytics and measurement (35 percent).

Measurement Systems & Reporting: Fundamentals: A whopping 73 percent say they have no formal marketing performance scorecard to effectively rate their organization.

The full complimentary Renovate to Innovate report is available for download

WEBINAR

A special Renovate to Innovate Webinar, held on November 30, explored the study’s key points and presented Performance-Driven Marketing best practices. A blue-ribbon panel, including Scott Gillum, VP at MarketBridge; Jan Soderstrom of the CMO Council; Todd Forsythe, VP of Corporate Marketing at Oracle; and Peter Krainik, VP of Global Marketing at Avaya, offered concrete solutions and suggestions for improving marketing’s yield and accountability. To view the webinar recording register here >>