With a shrug, she said, “I do what we did last year. We have a marketing plan,” she continued. “We review last year's spend and make adjustments, usually on a budget the CFO gives us.”
Note: This is one of our most popular posts and brought back for your amusement. To see the how much the woman in the photo has changed since the first post, click here.
It’s a proven fact that salespeople can cause premature aging in marketing people. Wrinkles are the most visible indication that salespeople are stressing out the marketing department.
Doctors tell me that another symptom of premature aging in marketing people is increased blood pressure (usually within 25 feet of anyone from Sales, including sales management). Other health issues may be gas and bloating; severe snoring and lack of sleep; heart palpitations and migraine headaches between the eyes. Stomach ailments are also reported when salespeople fail to make quota and complain to Marketing.
It was early September, late in the afternoon on a Friday as I remember, when the company president called me into his office. It was a medical device company, which had gone public in the previous year. Sales were going well, so far.
He started off quickly and got to the point.
“I need a favor,” he said. “We have to cut the budget substantially in this upcoming last quarter; I need $400,000 from Marketing. Please get back to me on Monday and let me know where you can cut.”
A mediocre product can market its way to success, but you have to spend enough money creating and managing demand. Create enough sales leads and me-too products have a place (if your product is superior, you’lldo even better).
Of course price is a consideration for me-too products, but not always if the marketer is good enough
My advice - 7 Simple Rules to create market share:
1. Spend at least 10% of annual company revenues on marketing; less than that and you will have mediocre success. Software companies and will aggressive companies spend upwards of 20%+.
2. Hire the best lead generation marketers you can find. Nothing else will do.
3. Use the 4-to-1 Rule. Create at least 4 qualified inquirers for every product you must sell.
4. Make CRM use a requirement by your salespeople.
5. Require marketing automation to manage demand when you get above 200 inquiries a month.
6. Make 100% follow-up of all sales inquiries by someone (salespeople or via the marketing automation program) mandatory.
7. Every lead generation project needs an ROI estimate. Go to the lead generation calculator on the SLMA site to come up with a quick estimate for the sales results.
If you do these six simple rules you will get the market share you deserve, and even some market share you don’t deserve.
Benjamin Franklin said "Well done is better than well said." about 229 years ago and it is still fresh today.
With the talk we have heard about CRM and the progress marketing automation has made for the last ten years, most marketing managers are still not walking the talk when it comes to measuring ROI for lead generation. I just didn’t realize how much insight Ben had into marketing.
James Lenskold the author of Marketing ROI certainly nailed it when he taught marketers how to stop talking about marketing ROI and start proving it. I am sure every marketer would like to hear “Well done" instead of just well said.
Infographic Title: Top Ten Reasons to Hire a Full–Service Demand Generation Agency
Subtitle: Infographic for B2B Marketers
Published by/Authors: Spear Marketing
Listen and Learn while You Work
Ask a few dozen CMO's how they determine how many leads he or she needs to create for the forecast and the answers vary from a guess to science based on formulas. In this program with Chris Ryan we ask a proven CMO, author and lead generation expert how he determines how many leads are enough for his clients.
Why it’s Important
"Sales Performance is tied to sales lead performance, which is tied to your marketing budget. Period."
Clint Eastwood said it best in the movie, Sudden Impact, “It’s just a question of results. Everyone wants results, but nobody wants to do what it takes to get it done!”
Those with a $ dollar sign lead to immediate increases in sales.