Tag Archives: Budget

Should Your Organization Create a Demand Center?

As the annual planning season begins, we have been conducting an increasing number of conversations on organizational design. Especially in the Europe, Middle East and Africa (EMEA) region, where CMOs have identified growth in a tough economy as the number-one priority for their teams, the question of how to balance regional and local resources remains critical. Resource balancing often makes people feel a little uncomfortable, as the word “restructuring” immediately comes to mind. Indeed, research shows that on average, organizations restructure every 2.5 years and often achieve little gain for all the pain they go through. Maybe such restructuring efforts are suboptimal right from the start because organizations are focusing their efforts on the wrong question: centralization vs. decentralization.

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Does Your Budget Match Your Strategy?

When we start with a new client, often the first subject that comes up is strategy. Some clients provide an overview of their business strategy by explaining it or giving a strategy presentation. However, we can get a much better understanding of a client’s strategy by looking at its budget. Budget is the ultimate expression of strategy. A client might say that its strategy is to invest in innovative new products to meet the needs of new buyers and markets, but its budget says the company is spending most of its resources on enhancements to existing offerings to resolve complaints from its current customers.

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CMO: If You Had 10 Percent More Budget, Where Would You Spend It?

In a recent study, SiriusDecisions asked b-to-b CMOs and senior marketing leaders the following question: “If you were given 10 percent more budget, where would you spend it?” In some ways the responses simply raised more questions.

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Is Your PO Process Costing You Precious Marketing Dollars?

Marketing regularly loses a portion of its budget to an insidious financial management process known as “Open PO Reconciliation.” It’s not unusual to see b-to-b organizations lose 5 percent or more of their budgets to the reconciliation monster. However, with just a bit more attention to detail and building a good relationship with the finance team, this money can be recovered and utilized.

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Get Out the Green Eyeshades: Budget Season Looms

Every year we go through the process of setting the next year’s marketing budget. Even though we know it’s coming, we are seldom prepared. As a result, the budgeting process becomes a defensive scramble to justify spend, and often the way it’s approached is to open this year’s budget spreadsheet and click on “File/Save As” to create next year’s template. Besides the fact that the document you just copied is probably not an accurate reflection of spend to date, just re-spinning last year’s model isn’t going to help drive your marketing organization to greater levels of efficiency and effectiveness. Here are a few suggestions for getting the budgeting process off to a better start.

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A Tale of Two Benchmarks

Here’s a tale of two benchmarks, both SiriusDecisions customers. We recently benchmarked their marketing and sales budgets; both have annual revenue of less than $50 million, are primarily software vendors, ...

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What B2B Marketing and Sales Can Learn From Walmart

Famous (and notorious) as a model of ruthless operational efficiency, Walmart is known for mastering just-in-time (JIT) delivery of goods – holding virtually no inventory – to extract from suppliers only what’s needed to sell. While we certainly don’t advocate that B2B marketing and sales adopt the type of adversarial vendor relationships Walmart is legendary for, its success does provide some valuable lessons.

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Taking Calculated Risk With Marketing Investments

Just as with purchasing a stock or mutual fund, investments in marketing have an expected return and associated risk. These investments can range from launching a new product to acquiring ...

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Learning From Outliers

While we’ve all become accustomed to seeing footage of coastal areas being battered by hurricanes, Irene had a surprising impact recently on the northeastern United States. Some places got hit ...

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