ITSMA’s Annual Marketing Conference: Four Priorities for 2009

As the economic meltdown swirled through the headlines, ITSMA’s Annual Marketing Conference in early November became a testing ground for presenting and refining our views of how marketing must adapt in 2009. We saw four themes emerge from the presentations, our research, and our discussions with ITSMA member attendees:

1. Be a downturn opportunist. When everyone cuts budget in a panic, opportunities emerge. Marketing needs to act on them:
   • Maintain and win. Research shows that companies that are able to maintain their marketing spending while competitors are cutting emerge from recessions in a stronger position.
   • Shift dollars to segments that will hold steady and grow. For example, research from Pierre Audoin Consultants that was presented at the conference showed that there are certain industries that should hold steady or even grow during a recession: utilities, telecom, public sector, and healthcare. Marketing needs to analyze and perhaps reprioritize its industry focus during these times.
   • Focus on demand generation. Our November ITSMA survey, Marketing in a Downturn, found that marketers are shifting budget and resources from brand- and reputation-building activities to demand generation. Other actions that companies are taking, based on the responses to the survey, include developing new products, services, bundles, or solutions; i ncreasing Account-Based Marketing (ABM) marketing to individual accounts; going after customers where competitors may be showing signs of weakness; and l ooking for partners and acquisitions.
   • Start competing on analytics. Tom Davenport, consultant, professor, and author of the book Competing on Analytics, talked about ways marketers have begun using analytics to find the best customers and charge them the right price, determine whether campaigns are working, and prioritize the marketing spend. The next step is to make analytics and fact-based decisions a key element of strategy and competition. This translates into a single, simple question: “What’s the best that can happen?” Examples of using analytics in this way include the flexible pricing (aka yield optimization) models of the airline and hotel industries. The prerequisites for this kind of sophisticated approach are good-quality data; a single, cross-company approach to data analysis; top leadership commitment to analytics; a few clear goals for analysis (for example, Harrah’s, a casino, uses analytics to improve customer loyalty and service); and a core group of talented analytics experts.
2. Become a bullfighter. As marketers look for a way to stand out in a tough market, we need to start thinking about revising our vocabulary. Among the meaningless terms we put in our value propositions, “next generation” was the leading offender in a 2006 survey of press releases by research company Factiva. Malcolm Frank, senior vice president of marketing and strategy for professional services firm Cognizant Technology Solutions, spoke at the conference about what he calls “the Omaha effect,” in which marketers dilute the meaning of their value propositions by trying to make them appeal to everyone in every geography. By being more specific, eliminating jargon from their messages, and not being afraid to focus on smaller market segments, marketers can make their messages more memorable.
3. Improve the quality of senior customer engagement. In hard times, it’s tempting to cut back on labor-intensive attempts to reach high-level executives inside customers and prospects. If cuts are unavoidable, this is the time to focus on quality over quantity. For example, a recent survey of CEOs by IBM that was presented at the conference involved face-to-face interviews with over 1100 CEOs around the world. The depth of the discussions revealed more detailed insights than could have been achieved using other methods. Though few companies have the resources of an IBM, everyone needs to make the time for meaningful face-to-face interactions with senior execs at customer organizations—even if it’s only 10 or 100 rather than 1100. That means including discussion about substantive business issues and relevant, compelling content. Use those interactions not just to glean information but also to build tight relationships.
4. Collaborate more with sales and business partners. Customers have long wanted providers to work together to deliver solutions. In a recent survey, Cisco found that 75% of its channel partners wanted to deliver services collaboratively with the company. Such partnerships are an important focus during the downturn because it’s a way to do more business without adding resources. To make sure its partnerships work, Cisco qualifies its partners carefully. It also surveys customers continually to make sure the partners are maintaining certain customer satisfaction levels. Finally, if the partner is not responsive, the customer can still call Cisco directly and Cisco will track the number of complaints. If a partner isnt delivering its end of the solution, Cisco will discontinue its participation in that program.

ITSMA members will receive an in-depth report on these four priorities and more insight from ITSMA’s Annual Marketing Conference over the coming months.

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ITSMA specializes in helping companies market and sell services and solutions more effectively. We work with the world's leading technology, communications, and professional services providers to generate increased demand, strengthen customer relationships, and improve brand differentiation. ITSMA annual program clients include business leaders such as AT&T, Cisco, Deloitte, EMC, Fujitsu, Hewlett-Packard, IBM, Microsoft, SAP, and Tata Consultancy Services, among others. Our comprehensive research, consulting, and training on topics including ITSMA Account-Based Marketing℠, Brand Positioning, and Solutions Development provide the insight and experience companies need to improve business results. ITSMA is based near Boston, and has offices in London and Tokyo. Learn more at www.itsma.com.