Transcript Sales Presentation Template - abm

Reactions in B2B Marketing
Sam Sebastian, Director of B2B & Local Markets
September 8, 2008
Google Confidential and Proprietary
1
Chain-reactions in a downturn
Google Confidential and Proprietary
2
At a trough or a ledge?
1080
Line of Business
CIOs
1060
1040
1020
1000
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
07 08
Source: IDC IT FutureScan, July 2008
Jul
Google Confidential and Proprietary
3
Biggest marketing challenges in the downturn
Demonstrate value of marketing when
sales are decreasing
36%
Demonstrate the need for the same
level marketing budget
Realign marketing strategies to
business objectives
Focus appropriate resources on
longer-term brand strategies
Source: AMA Economic Downturn Survey Report, May 2008, n=244
23%
21%
18%
Google Confidential and Proprietary
4
How do we catalyze better marketing reactions?
1. Continue investments in search and online
2. Tap into marketing value of online communities
3. Experiment with new ways to create and share content
Google Confidential and Proprietary
5
1. Continue investments in search and online
Google Confidential and Proprietary
6
At Work Digital Media Rising Among Execs
No digital
Oct 2002
Oct 2007
Some digital
Equal digital & traditional
Mostly digital
All digital
0%
Source: Doremus/Financial Times, October 2007 (n=600).
10%
20%
30%
40%
50%
Google Confidential and Proprietary
7
Business execs rely heavily on the web
C-Suite
67% cite Internet as most influential
and important source
36% decline in newspapers being
cited as main source
Global IT Decision-Makers
Internet cited as most important
resource for product research
Two-thirds of IT research done online
71% use Internet in all decision phases;
61% work with sales rep
Source: Forbes.com & Gartner
Google Confidential and Proprietary
8
Search a core behavior for business execs…
70% of execs use search as primary research resource
77% of execs prefer Google to other search engines
85% or more use Google in every country
except China, Korea & Russia
Source 2007 Enquiro B2B Survey, 2008 Global IT Study
Google Confidential and Proprietary
9
Search a critical touchpoint across whole cycle
70
60
50
Search Engines
40
30
Vendor Site
20
BtoB Search
10
Industry Information
0
Awareness
Research
Source: Enquiro B2B Decision Maker & Influencer Study, 2007
Negotiation
Purchase
Google Confidential and Proprietary
10
Shifts even occurring in mature markets …
% Share of Total U.S. Internet Visits
0.0030%
0.0025%
0.0020%
Player 1
+2.5X
0.0015%
+1.5X
Player 2
0.0010%
0.0005%
0.0000%
Feb Mar Apr May Jun
07 07 07 07 07
Source: Hitwise custom report
Jul
07
Aug Sep Oct Nov Dec Jan Feb
07 07 07 07 07 08 08
Google Confidential and Proprietary
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… Driven by search marketing
Paid Search Traffic
Nov ‘07
17%
Organic Search Traffic
Dec ‘07
Jan ‘08
9%
5%
Feb ‘08
21%
Player 1
0%
0%
0%
0%
Player 2
Source: Hitwise custom report
Google Confidential and Proprietary
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2. Tap into marketing value of online communities
Google Confidential and Proprietary
13
B2B communities – old idea, evolving settings
Top Influencers in B2B Research Phase
1 = least influential, 6 = most influential
offline
5.5
online
4.2
Offline WOM
Source: Enquiro, MarketingSherpa, SSI and ZoomInfo, April 2008
Online WOM
Google Confidential and Proprietary
14
B2B communities – old idea, evolving settings
What are some innovative strategic options when
sourcing MRO (spare parts, process consumables,
general maint supplies)
I’ve already listed some standard ones, i.e., integrator outsourcing,
leverage volume to key distributor, unbundle buyer function from
planner/inventory specialist for staffing flexibility, etc… so I’m
reaching for some “out of the box” thinking here.
Posted 1 month ago in Supply Chain Management, Purchasing | Closed | Flag question as…
Google Confidential and Proprietary
15
Growth in niche communities
Traffic growth of Linked in
Daily Unique Visitors
Jul 2007
Google Trends
Oct 2007
Jan 2008
Apr 2008
Jul 2008
Google Confidential and Proprietary
16
Those engaged in online B2B communities are
heavy users
Hours
per week
IT Toolbox community members
Average IT professional
4
3
3.5
3.3
2.9
3.0
2.7
2.9
2
1
0
Social media/
user-generated
Source: ITtoolbox and PJA Advertising + Marketing Study, 2007
Online Editorial
media
Online Vendor
content
Google Confidential and Proprietary
17
Marketing value of online communities
Generate more word of mouth
Increase product/brand awareness
Increase customer loyalty
Bring outside ideas into organization…
Improve public relations effectiveness
0% 5% 10% 15% 20% 25% 30% 35% 40%
Source: Beeline Labs, Deloitte and the Society for New Communications Research - The 2008 Tribalization of Business
Google Confidential and Proprietary
18
Challenges in implementing online communities
Getting people to engage
Finding enough time to manage community
Attracting people to the community
Getting people to keep coming back
Getting people to join
0%
10% 20% 30% 40% 50% 60%
Source: Beeline Labs, Deloitte and the Society for New Communications Research - The 2008 Tribalization of Business
Google Confidential and Proprietary
19
B2B communities that are catching on
Google Confidential and Proprietary
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B2B communities that are catching on
Google Confidential and Proprietary
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B2B communities that are catching on
Google Confidential and Proprietary
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3. Experiment with new ways to create and
share content
Google Confidential and Proprietary
23
How would marketers rate their own content?
Content Value
(1 to 5, 5 very educational)
47%
53%
scored
3 or below
scored
4 or 5
Source: MarketingSHerpa and KnowledgeStorm, Connecting Through Content Phase III, Aug 2007 n=2700
Google Confidential and Proprietary
24
Content that engages & differentiates brands
… Thought leadership is becoming the
most effective means to attract attention,
differentiate capabilities and spur
customers to action.
Economist Intelligence Unit
Source: Economist Intelligence Unit, Megatrends in B2B Marketing 2008
Google Confidential and Proprietary
25
Advertiser-publisher partnerships
Google Confidential and Proprietary
26
Content distribution via events on the decline
How is the economy affecting trade show attendance plans?
economy73% cite
related reasons
17%
More
43%
40%
Attending
fewer
conferences
no change
in conference
attendance
Source: MarketingSherpa and CMP TechWeb, Business Content Study, March 2008, n=880
Google Confidential and Proprietary
27
More thought leadership planned for virtual consumption
Now
Next 3-5 years
60%
50%
40%
30%
20%
10%
0%
Interactive
Forums
Podcasts
Source: Economist Intelligence Unit, 10 MegaTrends in B2B Marketing
Blogs
Mobile
Devices
Google Confidential and Proprietary
28
Building mountains of content
Search for Content
News Updates
Find a Contact
Videos
Interactive Tools
Thought Leadership
and White Papers
Product Info
Google Confidential and Proprietary
29
Declining CTR for display
Self-reported / normalized
100
75
75
58
2005
2006
Source: Marketing Sherpa, Technology Marketing Benchmark Survey, April 2008
Methodology: See details in Study Methodologies Section, N=915
2007
2008
Google Confidential and Proprietary
30
Bringing the mountain to Mohammed
Google Confidential and Proprietary
31
Google a rich media advocate?
Google Confidential and Proprietary
32
How do we catalyze better marketing reactions?
1. Continue investments in search and online
2. Tap into marketing value of online communities
3. Experiment with new ways to create and share content
Google Confidential and Proprietary
33