1. Matthew Palmer, Deloitte Consulting Marketing Effectiveness HEADLINE SPONSOR MARKETING AND MEDIA PARTNERS ASSOCIATE SPONSORS

2. The 7th IDM B2B Marketing Conference Matthew Palmer Head of Deloitte’s Financial Services Marketing practice Leads Deloitte’s offerings on brand, marketing cost reduction and operating models Background in consulting and advertising Typical projects include: –Corporate transformation –Brand valuation and optimisation –Sales and marketing effectiveness –Channel strategy –Operating model improvement Clients include: –Lloyds Banking Group, HSBC, Aviva, Standard Chartered Bank –IBM, Microsoft, Sony, BT, Vodafone, T-mobile, Siebel, SAP –Diageo, Pernod Ricard, Habitat, Royal Mail, Centrica, VOSA

3. The 7th IDM B2B Marketing Conference What will we cover today? What has changed and what has stayed the same post recession How to get your marketing budget approved - and the executive board on your side How to increase marketing ROI How to cut costs without slashing performance

4. The 7th IDM B2B Marketing Conference Which trends have changed, which have stayed the same Increasing power of individuals on corporate buying decisions (especially in FS and technology) Longer sales cycles Wider DMU Exploitation of social media and opinion management Getting marketing’s voice heard Focus on lead quality and management Getting sales and marketing working together better Cost cutting and effectiveness Accountability and measurement Channel and partner management Differentiating offerings Making global work Marked change in trendContinuation of trend

5. The 7th IDM B2B Marketing Conference We will focus on three main areas Increasing power of individuals on corporate buying decisions (especially in FS and technology) Longer sales cycles Wider DMU Exploitation of social media and opinion management Getting marketing’s voice heard Focus on lead quality and management Getting sales and marketing working together better Cost cutting and effectiveness Accountability and measurement Channel and partner management Differentiating offerings Making global work Marked change in trendContinuation of trend

6. The 7th IDM B2B Marketing Conference Getting marketing’s voice heard In order to help the organisation attain its goals Marketing needs to be able to influence at board level The challenge facing marketers is making sure the rest of the business understands the value they create. Our research found that C-level execs do not have a common understanding of marketing and its role in the company

7. The 7th IDM B2B Marketing Conference The CMO’s view

8. The 7th IDM B2B Marketing Conference The CFO’s view

9. The 7th IDM B2B Marketing Conference The CEO’s view

10. The 7th IDM B2B Marketing Conference 81% of CEOs identified marketing as a key driver of growth 84% of CEOs identified marketing as being crucial to devising strategy 1in3 CFOs did not believe that marketing is crucial in determining strategy 16% of Board level discussions are about marketing according to CMOs. CEOs believe that the figure is nearly double at 33% Board level views of marketing are mixed

11. The 7th IDM B2B Marketing Conference Impact of marketing’s lack of influence Seen as a cost Not seen as ‘Commercial’ Link between marketing metrics and company performance not understood Limited voice Not involved in key decisions Constant pressure to justify expenditure and reduce costs Budgets frequently rejected or slashed

12. The 7th IDM B2B Marketing Conference Marketing gets its budget approved when it: Actively engages with Finance and other functions throughout the year Uses easy to understand metrics to show outcomes of past programmes and how these relate to proposed activities Can explain where and how money is spent Uses zero based budgeting linked to specific programmes and outcomes Prioritises its own spend with stretch and retrenchment options Presents options to stop some activities to pay for others Clearly links programme outcomes to corporate targets (eg revenue growth, EBITDA, free cash flow)

13. The 7th IDM B2B Marketing Conference CMOs recognise this as an issue and are trying to improve measurement and accountability What are your top three marketing issues? 44% 39% 34% 28% 24% CMOs acknowledge that accountable and effectiveness are important ‘By 2012, the CMO’s priorities will shift from creative brand building to an accountable, business-oriented, customer loyal-driven focus in 55% of organizations’ ‘Financial accountability will be an imperative for 60% of marketing’s budget by 2012, up from less than 20% in 2007’ ‘Marketing strategy and processes will need to change radically during the next 5-10 years in order to answer to pressures to manage costs and drive revenue’ Analysts predict that marketing accountability and effectiveness will become increasingly important

14. The 7th IDM B2B Marketing Conference How to cut costs while increasing revenue and profits

15. The 7th IDM B2B Marketing Conference Cost cutting

16. The 7th IDM B2B Marketing Conference Some common cost cutting mistakes Cutting costs by the same amount across the board Choosing an arbitrary percentage cut Trying to do everything with less money Failure to plan for budget challenges like ‘tell me what you could do with 20% less money”

17. The 7th IDM B2B Marketing Conference So what works? Improve your focus: concentrate on the areas that add most to your business Only pay for what you need Make sure you get what you pay for Instil a real culture of fact based decision making, and act on it Become more accountable Improve relationships with the rest of the business, especially finance

18. The 7th IDM B2B Marketing Conference Improve focus Be clear how your programmes, products and target customers contribute to corporate objectives

19. The 7th IDM B2B Marketing Conference Get what you pay for, only pay for what you need 3 rd party suppliers services and SLAs Don’t over-specify or gold plate Standardise where heterogeneity doesn’t pay Many suppliers are trying to grab share coming out of the downturn: use this to negotiate Demonstrate your control over marketing spend to the CFO and finance community

20. The 7th IDM B2B Marketing Conference Make decisions based on facts, become more accountable Understand how your money is being spent –Audit of marketing spend based on effectiveness and value Test, analyse, learn and implement –So you can maximise returns on your marketing spend Use the knowledge to approach the leadership team to discuss opportunities for cost reduction or growth Involve finance, commercial and other parts of the business to create joint programmes

21. The 7th IDM B2B Marketing Conference Increase revenue and profits

22. The 7th IDM B2B Marketing Conference Most effective changes to boost revenue and profits are often Improve lead management –Quality –Fix leaky buckets –Recycle leads Focus on winning brands, products and segments Free up local offices to be entrepreneurial within the overall company strategy Introduce formal programmes to iudentify what works in your organisation and roll it out

23. The 7th IDM B2B Marketing Conference Further information Marketing in 3D Benchmark Take part in our new online Marketing in 3D Benchmark survey www.deloitte.co.uk/marketing Marketing in 3D Report Read the summary of key findings from our latest research Contact Matthew Palmer Tel: +44 (0) 207 007 7293 Mob: +44 (0) 07764 939920 Email: mapalmer@deloitte.co.uk Structural Cost Cutting in Marketing Read the summary of key findings from our latest research