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CMO Council Finds Marketing Materials are Hoarded Due to Ineffective Supply Chain

February 28, 2011
(Editor’s note: Here’s an item we missed last week, but thought was interesting enough to still be worth sharing.)

PALO ALTO, CA—Feb. 22, 2011—Lack of confidence in the marketing supply chain appears to be a major contributor to the hoarding of marketing materials by sales executives. According to the results of new a CMO Council study, nearly one in two sales executives over orders critical marketing support materials by as much as 25 percent per order.

The online study of 117 sales leaders reveals that, while sales values the content and tools developed to enable the sales process, the provisioning system fails at the point of delivery and fulfillment. as 67 percent of respondents admitted to facing challenges in obtaining materials from their companies.

In “Straight Line to the Front Line”—sponsored by NVSION—sales executives admit that their material hoarding is in reaction to operational processes that either take too long or deliver damaged materials. While 48 percent of respondents believed that it was hard to get materials in time, meaning that over ordering was merely a “just in case” precaution, the majority of sales executives (64 percent) intentionally over order materials in order to have the required materials on hand because the process of fulfillment takes too long.

Marketing is spending billions on the production of sales literature, premiums, merchandising items, hand-outs, signage, etc., but neglecting the process that actually gets these materials into the hands of key stakeholders, noted the CMO Council. Executive Director Donovan Neale-May believes legacy systems, cumbersome processes and quality assurance oversights are big contributors to inefficient and tardy provisioning of essential tools for sales and channel organizations.

The messages and content being developed by marketing received high praise, as 41 percent of respondents rated the content as being relevant and informative to customers. Among the top issues identified by sales professionals in the material procurement process include:

• Materials taking too much time to be delivered (35 percent),

• Materials not being available in time for a product launch (29 percent), and

• Damaged materials (13 percent).

One key issue stems from where and how sales executives are able to access content, as the majority of sales executives rely on e-mail requests to a field or corporate office to request materials. However, access channels to these materials only received marginal ratings, as 42 percent believed the systems were hardly effective or efficient.
 

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