CMO Council Study Finds Blind Spots in Delivery of Go-to-Market MaterialsNovember 29, 2010
PALO ALTO, CA—Nov. 29, 2010—A new study by the Chief Marketing Officer (CMO) Council reveals significant blind spots in the go-to-market process as marketers focus on strategy, creative development and campaign execution to the detriment of effective marketing materials distribution. The latter includes the efficient and timely delivery of marketing and merchandising materials to dealer, agent, franchise, retail and brand office locations, as well as the processing of customer requests for sales literature and samples through Web, call center and e-mail channels.
While 56 percent of marketers are focused on campaign design, development and execution, only 16 percent are looking to production, warehousing, inventory management or delivery as critical elements in an effective demand chain. In addition, just 2 percent are looking to optimize the actual delivery, fulfillment or distribution of their critical marketing materials.
According to the report—entitled “Competitive Gain in the Demand Chain”—many marketing executives admit they have never assessed demand chain performance, nor given it high priority within the marketing operational mix. This may be contributing to the belief, expressed by 80 percent of respondents, that their organization is not efficient or effective enough in provisioning all of the demand chain.
The study, sponsored by Archway Marketing Services, is part of ongoing research by the CMO Council's Marketing Supply Chain Institute (www.marketingsupplychain.org/) into ways to improve frontline performance through better go-to-market process innovation, supply chain optimization and marketing ecosystem management.
Marketers agree that demand chain provisioning is critical to business competitiveness and performance (38 percent of respondents), while an additional 31 percent believe it is important to sustaining sales and channel operations. Yet, only 25 percent of respondents are ensuring sales support materials and resources are delivered on-demand, which would improve sell-through and customer conversion. Only 15 percent are taking steps to audit and assess marketing materials supply chain effectiveness, indicating that there is little to no visibility into the demand chain provisioning process to truly gauge content, material or operational impact and performance.
“Marketing tends to be preoccupied with staying on track with individual tactical executions or traditional marketing fundamentals like lead generation, campaign execution and content or creative development,” said Donovan Neale-May, executive director of the CMO Council. “However, today’s demand chain requires a new mix of digital, direct and retail distribution, fulfillment, measurement and tracking capabilities to maximize customer contact, conversion and interaction.”
One area that potentially holds an immediate opportunity for improvement and value creation is specific to vendor selection or management. Nearly half of respondents view demand chain procurement and fulfillment as a compilation of individual vendors, asking each vendor to bid on individual elements of the demand chain. Only 7 percent of marketers view the demand chain as an area for consolidation and rationalization to gain more control and efficiency.