If it feels like you’re doing more marketing activity, and getting fewer results at the moment, then you need to have a glance through this document. It was given out by Neil Rackham the author of SPIN selling at Verne Harnish’s Sales Conference – www.gazelles.com/sales_summit/Rackham_Selling_Harder_Times.doc

It only takes a couple of minutes to read and debunks a few myths on the way. ie. you don’t have to compete on price, and you shouldn’t be chasing every opportunity.

The Harvard Business Review’s November interview is “Cisco Sees the Future“, a free in-depth interview with the company’s CEO.

The article covers how the IT market is changing, how Cisco seeks to manage that change, where IT is going and how they tap opportunity in economic down cycles.

Finextra’s story this morning on HSBC’s investment in energy management technology shows that with cost-cutting programmes comes IT opportunity.

There was a very interesting view on this from Egg’s ex-CIO, Tom Ilube when I interviewed him last week on what he would be doing if he was still a CIO in the current economic climate. Subscribe to this blog’s RSS feed or subscribe via email to be the first to receive Tom’s interview transcript, coming soon. 

Spending on IT security will continue to grow next year, according to new data unveiled by Forrester Research. 21 percent of respondents expect to increase their IT security budgets in 2009, while nearly three-quarters of those surveyed expect no cutbacks in their security spending.

Only 6 percent of respondents anticipate having to cut their security budget next year despite the current economic uncertainty.
http://www.tradingmarkets.com/.site/news/Stock%20News/1863297/

The research also says security makes up 10 percent of overall IT operating budgets in 2008, up from 8 percent last year.  Nearly 50 percent of respondents report to a board/CEO or an executive committee – security is clearly no longer embedded within IT.

I’m pleased to be able to make available our web 2.0 planning guide. We’ve had a lot of interest in this document, as marketers look to introduce more “pull” techniques into their programmes. You can download it here for free: B2B web2 blotter

It provides a process for thinking through your approach, suggests how different tecnhiques can be used to relieve pressure at points in the sales funnel and provides management considerations for marketers using web 2.0 for lead generation for the first time.

Easy to use, fill in, make notes on, and share in a brainstorming meeting. Do drop me a line or reply in the comments field with any questions.

Another post in our “IT Boomhunter” series – helping you find growth IT markets in fast-changing times.

This McKinsey report that shows how remote infrastructure management is predicted to be a boom area. “While other offshoring services have grown rapidly, the management and maintenance of core infrastructure from afar has been slow to gain popularity. Only a sliver—about 7 percent—of the addressable market is being captured. But our research suggests that this is about to change. Shifts in customer attitudes and economics could trigger rapid growth for these services, known in the industry as remote infrastructure management.”

“34 percent of CIOs say they expect to offshore some infrastructure services over the next three years—a sharp increase from 19 percent in a similar survey a year earlier.” McKinsey.

The PDF of the report is here.

Next week I’ll be interviewing the Tom Ilube, ex-CIO of Egg, for this blog about what it was like to be marketed to by IT companies.

If you’ve always wanted to ask a tame CIO something, here’s your chance. Post any questions you have in the comments field.

Useful 2009 IT marketing spend statistics released this week by IDC research – there’s a free webinar here covering the research. Some of the main benchmarking highlights, as described by Jon Miller:

-Marketing Budget Ratio (marketing spend/revenue): 2.8% average (2.6% for hardware, 5.1% for software, 0.8% for services)

- Program-to-People Ratio (program spend as a % of total mktg. spend): 61%

- Marketing Staff Throughput Ratio (program spend per staff): $293,000

- Slide 23 describes how companies allocate their program budgets across events, advertising, direct marketing, marketing support and sales tools, digital marketing

- Slide 24 shows how staff is allocated across functions

- Slide 25 shows how companies are allocating their digital marketing budgets across advertising, search, email, etc.

Note that these benchmarks are for large IT companies with average revenue of $6 billion a year.

Many B2B marketing campaigns are not fundamentally flawed. They are good ideas that suffer from lacklustre execution. Or a great idea, and great plan – targeted at entirely the wrong people.

We see a number of these issues happening again and again in the B2B marketing industry. Sometimes the devil really is in the detail. Here are 10 common mistakes and how to avoid them. 

1. Not engaging the sales force at the outset – ultimately, the sales force will define whether all your work has been a success. Did your campaigns increase sales opportunities or not? Were they the right kind of opportunity? Talk to them in person before you start to ensure you know what’s expected of you. A lot can get lost in translation.

2. Not listening hard enough – in creating a campaign, as the marketer, you’ll have a lot to add, and you can bring great experience to bear. Don’t forget that the sales and product experts have as much to add too. Ask a lot of questions before you make any broad statements, and don’t assume anything until you’ve checked it. A small misunderstanding can result in a campaign going very wonky later on.

3. Not finding out what current customers think – despite point 2, the best point of reference for any campaign is the people who will eventually be receiving it. Beg, borrow and steal to get the chance to speak to a few tame customers or prospects! For some help in framing up your client interview, see my post on B2B marketing client interviews.

4. Assuming leads can be “generated” for all propositions – it’s a huge and expensive challenge to “make” market opportunity. There is an ongoing debate in the industry about whether “making” demand is possible. Our view is that it can be uncovered, found, prompted, but probably not “made” – certainly not without mammoth budgets. The best way to proceed is to map the market size and build relationships in the long term – so that as opportunity arises you can get to it quickly.

5. Never reaching the real decision maker – many marketing campaigns are simply targeted at the wrong people. Completely understandable, given that the companies we are marketing into may have a hundred thousand employees or more. Being a “data junkie” is the key here – make sure you’re obsessed by the data the campaign will be sent out to. Its relevancy and its quality. Also, it stands to reason that your DM or email will hardly ever hit exactly the right person first time – it’s a process of repetition and refinement.

6. Misqualifying or overblowing new prospects – all campaigns are under pressure to generate leads. As a result, marketing departments can pass “leads” back to a client that don’t live up to expectations. Understand in detail what the sales team’s definition of a lead is – and don’t take it at face value – question them hard on it. Passing back non-leads will only lead to dissatisfaction, but opening the door to a key account (even if it doesn’t strictly meet BANT qualification) can be just what is needed. Sometimes sales don’t always mean exactly what they say.

7. Not following up on leads or nurturing slow burners – sometimes the sales team will commit to follow up on your campaigns themselves. As they get busy, or as other leads turn into bids, the salespeople can become distracted and drop the lead follow up. Make sure you have a plan if this starts happening. Also, have a strategy for “slow burners” – these are people who have expressed an interest but are not ready to move forward yet. How will the campaign keep them warm until they are ready to buy?

8. Not understanding the product or service – the IT world and the marketing world both become more complex by the minute. For us marketers, it’s a big job just to keep up to speed with the day job, never mind what the latest solutions do and how they work. The best campaigns are a perfect unity of customer need and product understanding. To develop the perfect campaign proposition, see a demo for every release, visit a site where it’s in use every day, speak to customers regularly and directly.

9. Assuming the buyer understands the market – it would be very easy to imagine a campaign being designed that proved in concrete terms why your software was palpably, demonstrably better than your competitor’s… and then finding out that the targets of the campaign didn’t understand the nature of the market at all and didn’t respond to the campaign as a result. At the same time, an experienced and savvy IT Director might well know the market backwards and dismiss a campaign as underestimating his/her knowledge. Understanding what the typical buyer does know about the market before getting started on your campaign is key.

10. Measuring activity rather than outcomes - marketers strive to measure the impact of their activity and rightly so. Marketing needs to demonstrate its value to the business. But a lot of metrics measured by marketing are fairly meaningless without knowing how much revenue they’ve generated. Whilst it’s easy to measure hits on a website, clicks from an email, number of mailers sent, number of event delegates (and these should still be measured) unless we know the ultimate impact that these activities had on business through the door, we can’t know how much of a return on its investment we are getting for our marketing spend.

What a week it was last week. The world is changing before our eyes.

What interested financial services companies a week ago may well now hit a brick wall. Our business intelligence team, calling into banks this week on behalf of various clients, have been met with everything from “I’ve just been made redundant” to “I don’t know what’s going on, I simply can’t talk to you – it’s all up in the air.”

So what action can you take, right now, to keep on generating leads? To make sure your marketing messages will continue to strike home?

1. Talk to your customers, more on this below

2. Find out where there is still opportunity to sell. (we’re tracking several of these areas – get in touch if you want to sign up for our email newsletters on this)

3. Find cost-effective ways of getting your message in front of people – and prove why you are worth their time

Our own experience, only last week, was showing that what mattered a month ago is seen as frivolous now. The unusual market conditions are definitely creating opportunities but they are not always immediately obvious.

To use a B2C example, The Sunday Times reported yesterday that John Lewis has seen a 247% increase in sales of hot water bottles versus this time last year. Presumably this is people trying to conserve their cash by keeping the central heating switched off. Makes thrifty sense, but not an immediately obvious market opportunity.

It goes to show that, in a time of unprecedented goings-on, no-one can know for sure what will work. For B2B, it’s back to basics marketing – the most important action you can take is to get out there and ask some questions of your clients.

Ask them how, in this new environment, they will be making decisions, ask what are the pressures they’re facing, and what is valuable to them now. Understand how their own customers are behaving. You need to really understand both of these aspects to be able to put together proposition and messages that will engage them in uncharted territory.

We’ve made available our own client insight questionnaire to speed things up for you. Download it here: customer-insight-questionnaire.Your buyers’ worries (and their urgent need for future performance) are a real opportunity – if you understand them properly.

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