Pressure on Marketing for Performance Measures Will Endure Beyond the IT Recovery, According to IDC

FRAMINGHAM, MA – MARCH 11, 2003 – The deep cuts to IT marketing budgets over the past two-plus years are symptomatic of a much larger problem plaguing technology marketing – IT marketers are struggling with measurement and will likely face enduring budget scrutiny until their capabilities improve.

 

According to the preliminary results of a new IDC survey of IT marketing trends, only one out of three technology companies uses program-specific performance measures, such as preference studies or media exposure analysis, to evaluate the results of their marketing programs. Moreover, only two of the more than 90 companies surveyed have established a comprehensive, integrated marketing metric such as a multi-part balanced scorecard.

“Faced with mounting pressure to produce a verifiable return on their marketing investment, many IT marketers have simply sold out on the true charter of marketing,” said Rich Vancil, vice president for Technology Marketing Research at IDC. “Technology marketers have increasingly turned to supporting only tactical program elements tied to narrowly defined, sales-oriented goals. Meanwhile, the more strategic program elements that build brands and image have dramatically declined for lack of measurement.”

While top-line budgets are on the rebound – 70% of the survey respondents indicated that their 2003 marketing budgets are the same or greater than 2002 technology marketers must prepare themselves for the new demands of IT marketing – accountability and measurement at the level of both tactical and strategic marketing programs. To meet these demands, IDC believes a full set of measures looking at internal, program-specific, and external results will be needed. In addition, marketers will need to understand how to benchmark their programs against their competitors and the industry as a whole.

“To determine the success of a given marketing program and justify the expense of that program, the empowered marketer needs more and better information about program implementation, return on investment, and industry best practices,” added Vancil. “Moreover, the measure needs to fit the objective. There is no single measure for marketing. If marketing is to fulfill both its tactical and strategic roles, marketers are going to have to get smarter about measurement and benchmarking.”

To help technology marketers improve the effectiveness and productivity of their marketing programs, IDC has launched a new CMO Advisory Service. The goal of the service is to help technology marketers become more systematic and measurable by developing a framework for measurement and a clear set of

industry benchmarks against which program results can be evaluated. The service will provide clients with marketing measurement and best practice analyses, IT marketing trends and analysis reports, and custom research on IT marketing practices.

IDC’s IT Marketing Trends 2003 survey captured key marketing issues for more than 90 IT companies representing over $85 billion in revenues and over $4 billion in marketing spend. The survey was undertaken as part of IDC’s CMO Advisory Service. Additional survey results will be unveiled at IDC’s Directions 2003 conferences in Boston and San Jose.

For more information about IDC’s CMO Advisory Service, or to download the preliminary survey findings on IT marketing trends, please visit

http://www.idc.com/en_US/CMO_March03.pdf or call 800-343-4952 x6964.

About IDC

IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC’s customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.

IDC is a division of IDG, the world’s leading IT media, research, and exposition company.

 

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