Published on July 4, 2014
G00264107 Agenda Overview for Marketing Management, 2014 Published: 21 May 2014 Analyst(s): Richard Fouts Increased participation in strategic business decisions and an evolving organization put new strains on today's digital CMO. Gartner's 2014 research will help marketing executives and their direct reports design, organize and execute leading priorities in this new environment.
Analysis Figure 1. Marketing Management Agenda Overview Source: Gartner (May 2014) Visionary CMOs develop strategies to acquire and retain not just any customer — but the right customer. To accomplish this mission, marketing leaders face new challenges and opportunities to: ■ Engage customers in more robust ways: Digital technology and new tactics have introduced new capabilities for both buyers and sellers. Marketers can now foster far more intimate customer relationships, but they must also be sensitive to customer privacy and security concerns. ■ Rethink the organization: As digital marketers step up their participation in strategic business decisions and deploy new technologies that help them transcend space and time, they must run operations in more automated and coordinated ways. ■ Build business advantage through multidisciplinary teams: Some emerging and powerful techniques cross boundaries — for example, content marketing can touch on content Page 2 of 8 Gartner, Inc. | G00264107
production, partner marketing, thought leadership experts, public relations, website management and social marketing. Thus, digital marketers will increasingly draw on a range of skill sets from people with different backgrounds. Many will reside outside the marketing department. New capabilities enable marketers to penetrate customer segments and explore opportunities for growth through modern, digitally inspired strategies. Our 2014 research guides marketing leaders through the operational and organizational challenges they must conquer to thrive in this new era of digital marketing. Key Issues Strategic Management ■ How are CMOs and their direct reports identifying and implementing strategic options for growth? ■ How are all marketing leaders collaborating with other stakeholders to advance the goals of the business through digital marketing? Operations Management ■ How are marketing leaders allocating their budgets for capital investment and expense? ■ How are marketing leaders harnessing human capital and organizational innovation to improve operational effectiveness? ■ What are best practices for selecting and managing partners (internal and external)? Performance Management ■ What emerging tools and techniques are marketing executives and their direct reports using to measure and improve effectiveness and operational performance? Strategic Management How are CMOs and their direct reports identifying and implementing strategic options for growth? How are all marketing leaders collaborating with other stakeholders to advance the goals of the business through digital marketing? You now have the ability to understand your customer better than you could have even imagined five years ago — if you can harness engagement and capture the data. Through digital marketing, your prospects and customers are telling you what they want — you just need to find the opportunities and methods to listen. A digital marketing strategy will: ■ Position marketing as the authority on what makes customers tick, by knowing them in excruciating detail Gartner, Inc. | G00264107 Page 3 of 8
■ Use customer insight to inform overall awareness, acquisition and retention strategies ■ Form new, creative alliances and partnerships to penetrate and develop existing and new markets ■ Launch new products based on the fine-point detail marketing develops about customers, prospects and competitors ■ Retire or enhance products that are no longer relevant in a digital world Planned Research Our 2014 research will show how marketing leaders plan for the changes made possible by digital technologies. We'll publish Impact Appraisals and Predicts reports to describe how these changes will affect you and make recommendations for what you should do to adapt. We'll show you how digital marketing increasingly supports market development. We'll focus on trends and best practices for dealing with shifting relationships with sales, customer service, and brands or business units. Significant primary research will inform our research. Operations Management How are marketing leaders allocating their budgets for capital investment and expense? How are marketing leaders harnessing human capital and organizational innovation to improve operational effectiveness? What are best practices for selecting and managing internal and external partners? Digital marketers struggle to set priorities when too many good ideas compete for too few resources. Internal turf wars with traditional marketers who resist change or a staff that lacks modern skills adds to the strain. Although funding earmarked for digital marketing has increased, resources alone are no panacea. Choosing the right investments is still a challenging balance to: ■ Execute digital plans with an eye toward value delivery and optimization ■ Deploy agile marketing principles ■ Hire and retain the right staff in the face of emerging techniques and technologies ■ Manage financials (both operating expense and capital investment) ■ Strategically source marketing activities to the best partner (internal or external) Planned Research In 2014, we will conduct primary research about how much marketing executives spend on digital marketing and the type of new investments they are making. We'll even break out the data by industry and offer best practices. We'll identify skills to look for in new hires for roles such as chief marketing technologist, and we'll show those new to digital marketing roles how to get started on the road to long-term success. We'll help you develop a team and program to create value as part Page 4 of 8 Gartner, Inc. | G00264107
of your overall marketing initiatives. Our research will enable you to build a case to allocate resources, including people, processes and technology, to strengthen your digital marketing operations — and to shift spending, when necessary, to gain the best returns. Performance Management What emerging tools and techniques are marketing executives and their direct reports using to measure and improve effectiveness and operational performance? Today's high performing marketing executive: ■ Evaluates, quantifies and measures new growth opportunities. As new investment dollars flow to digital marketing, CEOs expect marketers to paint a new performance picture; one that hones in on ideas to penetrate existing markets while revealing opportunities to diversify. ■ Grows the customer base with an acute eye on retention. Acquiring new customers is the lifeblood of any organization. But, it's not enough. Marketing executives must also increase retention rates and overall customer lifetime value through programs that not only add continuous value, but are informed by signals that prevent potential defections before they occur. To increase marketing's performance and positive business impact, you'll need to choreograph both dances. And at the same time, skillfully integrate the services of external providers that offer tools, platforms and hubs directed at improving marketing performance. Planned Research Our 2014 research will help you define and prioritize metrics and benchmarks for measuring success. We'll help you examine technologies and services to build out and manage your digital marketing performance initiatives. We will publish Magic Quadrants and Cool Vendor reports to help you consider the right providers. We'll flag what's hype and what's not in our annual Hype Cycle reports for digital marketing and advertising. Market Guides will extend our Digital Marketing Transit Map. Other research will examine changing project management tools that enable fast-cycle collaboration and execution. We'll also discuss the trade-offs of buying versus building in the quest for a digital marketing hub. Related Priorities Key Initiatives address significant business opportunities and threats, and typically have defined objectives, substantial financial implications, and high organizational visibility. They are normally implemented by a designated team with clear roles and responsibilities, as well as defined performance objectives. Gartner, Inc. | G00264107 Page 5 of 8
Table 1. Related Priorities for Digital Marketing Management Key Initiative Focus Multichannel Marketing Optimizing engagement according to the way customers want to research, talk, compare, shop and buy products and services through digital and traditional channels, orchestrated to build ensemble interactions that create differentiated and compelling experiences. Emerging Marketing Technology and Trends Emerging marketing technology and trends, such as big data, social media, wearables, augmented reality and contextual computing, create new opportunities to acquire and retain customers, fueling growth and taking market share. Data-Driven Marketing The discipline for acquiring, analyzing and applying all information about customer and consumer wants, needs, motivations and behaviors. Digital Commerce The buying and selling of goods and services using the Internet, mobile networks and commerce infrastructure. Includes the marketing activities that support these transactions such as people, processes and technologies to execute the offering of development content, analytics, promotion, pricing, customer acquisition and retention. Also included is customer experience at all touchpoints throughout the customer buying journey. Social Marketing A marketing discipline that captures customers on social networking sites, engages with them through social interactions, and uses social interactions to enhance brand reputation or drive them to buy through social commerce. Mobile Marketing A discipline of digital marketing that targets consumers on their mobile devices by linking first- and third-party data about consumers with relevant offers and information. Source: Gartner (May 2014) Suggested Next Steps ■ Collaborate with other senior business leaders to extend the CEO's strategy and vision into a set of goals and objectives to build competitive strength. ■ Map your digital marketing activities and investment to business objectives. If an activity isn't relevant, eliminate or reshape it. ■ Structure your organization for change: ■ Empower your marketing leads ■ Set incentives to encourage intradepartmental collaboration ■ Act as change agents; reach out to other functions within the company; build relationships to drive digital business Page 6 of 8 Gartner, Inc. | G00264107
■ Identify the three to five opportunities in your digital marketing operation that have the highest potential for advancing your leading priorities. Use this insight to adjust your road map for acquiring skills, technology and budget. Gartner Recommended Reading Some documents may not be available as part of your current Gartner subscription. "Gartner Glossary of Digital Marketing Terms" "Toolkit: Inventory of Digital Marketing Metrics" "Toolkit: The Digital Marketing Transit Map" "How Much Progressive Companies Invest in Digital Marketing" "Give Your Digital Marketing Team New Social Science Skills" Agenda Manager Profile Richard Fouts analyzes best practices in marketing management, including insight and advice in brand management, market and competitive positioning, sales enablement, demand generation and go-to-market strategies. Before joining Gartner, Mr. Fouts ran marketing for several IT services firms, and later managed a brand communications company in New York City, where he designed and developed strategies for technology companies, financial services and insurance, and professional consulting firms. Gartner, Inc. | G00264107 Page 7 of 8
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