Wednesday, March 17, 2010

Watch that Org Chart in 2010

Twenty percent of tech vendors $1b or greater in revenue are now reporting that they have experienced some form of organizational "mash-up" between marketing and sales over the last 12 months. This is the C-level effort to adddress the long-standing mis-alignments and costly points-of-friction between sales and marketing.

Lots of thoughts on this...but the most important is a "heads-up" to expect more organizational pressure and change in 2010. IDC forecasts marketing expenses (investment) to rise by 3.5% this year. We expect sales expenses (investment) to rise by 4.7%. Finally, we expect average revenue to to rise by 3.2 %. So, the math is not hard: operating margins will be under continued pressure. My sense is that the C-Level will respond with more brute force re-drawing of organization charts.

3 comments:

  1. Rich,
    I'm looking for industry averages for ad/sales ratios for tech companies, especially colo/hosting types. Any ideas where this can be found?

    Thanks

    jeff

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  2. I am curious if you have seen any trends on marketing mix ratios due to SoMe?

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  3. Another question - it is my experience that in IT marketing spending varies both on sector and lifecycle. Hardware tends to be a lower percent of revenue (3-5%) with software being higher (8-12%). When launching a new product or entering a new region I have seen 18-25%. Is this still accurate?

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