Marketing Budget Planner 2005: Benchmarks and Key Performance Indicators: Industry

Marketing Budget Planner 2005: Benchmarks and Key Performance Indicators

Product Type: Market Research Report
Published by: IDC
Published: August 2004
Product Code: R104-16537

Description

This IDC study on technology marketing spending and resource priorities discusses the results of IDC's second annual marketing benchmarks survey of more than 100 technology firms within the software, hardware, and services sectors. The analysis provides a detailed evaluation of quantitative and qualitative data, including key performance indicators that should be a part of every CMO's marketing dashboard, a breakdown of 13 staff levels, and 34 program spend areas by sector, as well as identification of keys for success for marketing executives during 2004 and beyond.

"Marketing spending by technology vendors will increase by 6.0% for 2004, a significant shift in spending from the 1.7% decrease experienced in 2003. However, today's marketing organization is leaner and more efficient, expanding its role in tech firms to develop the differentiation required to compete in today's more competitive, slower-growth market. IDC's second annual CMO Advisory's Technology Marketing Benchmarks Survey provides insight into the management and budgeting strategies of many of the world's largest and most influential technology vendors. This study identifies the most effective strategies for CMOs to maximize their future success from a marketing perspective as well as an overall organizational perspective." ? Michael Gerard, director, CMO Advisory Research

Table of Contents

Table of Contents
IDC Opinion
In This Study
Methodology
Fiscal Year Basis and Year-on-Year Data Analysis
Quality Control Processes
Organization of Survey Questions
Survey Eligibility Criteria
Data Comparison with Other IDC Surveys
Executive Summary
Methodology
Budgeting and Spending Analysis
Priority Number 1: Awareness Building
Marketing Becomes More of a Science
Marketing Organization Challenges
Future Outlook and Essential Guidance
Respondent Companies: A Partial List
Table: Survey Participants
Table: Technology Vendor Revenue by Technology Sector ($M)
Profile of Respondents
Figure: Respondents by Title and Technology Sector
Table: Technology Vendor Revenue by Technology Sector (% of Respondents)
Table: Technology Vendor Marketing Spending Share by Company Revenue and Technology Sector (% of Total Marketing Spend)
Figure: Technology Vendor Revenue Share and Marketing Spending Share by Company Revenue
Table: Technology Vendors by Number of Employees and Technology Sector (% of Respondents)
Respondent Companies' Sources of Revenue
Figure: Technology Vendor Revenue Share by Geographic Region and Technology Sector
Figure: Technology Vendor Revenue Share by Customer Segment and Technology Sector
Situation Overview
Introduction
Tech Marketing Benchmarks and KPIs
Budgeting and Spending Analysis
Planning for 2005 Marketing Budgets
Table: Profile of Respondents by Key Performance Indicators and Technology Sector (Mean %)
Marketing KPIs: Impact of Company Size, Sector, and Channel Strategy
Figure: Marketing Spending as a Percentage of Technology Vendor Revenue by Company Revenue
Figure: Marketing Spending as a Percentage of Technology Vendor Revenue by Technology Sector
Figure: Marketing Spending as a Percentage of Technology Vendor Revenue by Channel Strategy
Program-to-People Spend Ratio
Figure: Technology Vendor Marketing Spending Share for Programs and Staff by Technology Sector
Awareness-Demand Ratio
Figure: Awareness-Demand Ratio for Technology Vendors, 2003 and 2004
Table: Importance of Corporate Marketing Activities in the Next 12 Months by Technology Sector (Mean Score)
Marketing Program Budget Distribution
Table: Technology Vendor Marketing Program Spending Share by Activity and Technology Sector (Mean %)
Program Spending: Advertising
Figure: Technology Vendor Advertising Spending Share by Technology Sector
Program Spending: Marketing Support and Sales Tools
Figure: Technology Vendor Marketing Support and Sales Tools Spending Share by Technology Sector
Program Spending: Direct Marketing
Figure: Technology Vendor Direct Marketing Spending Share by Technology Sector
Program Spending: Events
Figure: Technology Vendor Event Spending Share by Technology Sector
Program Spending: Collateral
Figure: Technology Vendor Collateral Spending Share by Technology Sector
Marketing Staff Head Count Distribution
Table: Technology Vendor Marketing Staff by Activity and Technology Sector
Priority Number 1: Awareness Building
Figure: Top Marketing Challenges Facing Technology CMOs
Tech Marketing Expands Its Role, Becoming More of a Science
The Need for Growth Drives a Shift in Strategy: Focus on the Channel
Figure: Change in Marketing Strategy Required by Shifting Sales Model by Technology Sector
Figure: Technology Vendor Revenue Share by Sales Channel and Technology Sector
Software Trends
Services Trends
Hardware Trends
KPIs and Other Marketing Data Based on Four Different Channel Models
75%+ Direct Sales
50?74% and 25?49% Direct Sales
<25% Direct Sales
Table: KPIs and Distribution of Marketing Spending and Staff by Technology Sector: Technology Vendors with 75%+ of Revenue from Direct Sales
Table: KPIs and Distribution of Marketing Spending and Staff by Technology Sector: Technology Vendors with 50-74% of Revenue from Direct Sales
Table: KPIs and Distribution of Marketing Spending and Staff by Technology Vendor: Technology Vendors with 25-49% of Revenue from Direct Sales
Table: KPIs and Distribution of Marketing Spending and Staff by Technology Sector: Technology Vendors with <25% of Revenue from Direct Sales
Marketing Measurement: The Quest for ROI Continues
Marketing Measurement Challenges
What Are Companies Doing to Improve Marketing Measurement?
Successfully Implementing a Measurement Program
What Metrics Are CMOs Reporting to the CEO/President Today?
Top Marketing Metrics by Program Area
Table: Top Marketing Metrics Reported to the CEO or President by Technology Sector (% of Respondents)
Table: Top 3 Marketing Metrics by Program Activity and Technology Sector (Number of Respondents)
Gauging the Efficiency and Capacity of Your Marketing Staff
Marketing Productivity Ratio
Marketing Program Outsourcing
Figure: Marketing Productivity Ratio by Technology Sector: Program Spending per Marketing Employee
Table: Outsourced Share of Marketing Spending on Programs by Activity and Technology Sector (Mean %)
Organizational Issues Challenge Marketing's Effectiveness
Table: Top Internal Challenges Facing Technology CMOs by Technology Sector (% of Respondents)
Alignment and Integration
Figure: Technology Vendor Marketing Organizational Structure by Technology Sector
Figure: Foreseeable Changes to Technology Vendor Marketing Organizational Structure in the Next 12 Months
Table: Technology Vendor Centralized Marketing Budget by Technology Sector (Mean %)
Marketing Skill Set
Doing More with Less
Future Outlook
Impact
Essential Guidance
Actions to Consider
Learn More
Related Research
Upcoming Research
Appendix A: IDC's CMO Advisory's 2004 Technology Marketing Benchmarks Survey
Respondent Eligibility
Company Overview
Marketing Priorities
Organization of Marketing
Marketing Employees
Marketing Spending
Measurement
Best Practices
Appendix B: Glossary for IDC's CMO Advisory's 2004 Technology Marketing Benchmarks Survey
Marketing Budget Glossary and Guidelines: Instructions
Table: CMO Glossary: Program Spend
Table: CMO Glossary: Marketing Employees
Table: CMO Glossary: Regions
Table: CMO Glossary: Sales Channels
Synopsis

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