For a few years, ITSMA has been saying that marketing must transform. The world is changing so fast, though, that changing your marketing incrementally is not an option. In our latest survey, Marketing Transformation: Are we there yet?, we have found clear evidence of marketing leaders rethinking, reskilling, and reinventing the organization. Nevertheless, we are in the early stages of transformation, as many marketers have yet to achieve their objectives. This survey report identifies the six most important characteristics of a transformed marketing organization as well as three distinct roles of a transformed marketing organization. The report also identifies the challenges to transforming your marketing organization, then gives ideas and best practices on what marketers can do to accelerate their transformation. Methodology  Online Web-based Survey – Survey invitations were emailed during May 2012 to ITSMA member and select non-member companies – 178 people completed the survey  Qualitative Interviews: 20 hour-long interviews with members of ITSMA’s Advisory Boards (Europe and North America)  ITSMA Analyzed the Data Four Ways – Company Type: Sells products and services vs. Primarily services – Company Size: Less than $100M, $100–999.9M, $1–10B, More than $10B – How Marketing is Viewed: Marketing is viewed as: Strategic vs. Tactical – Status of Marketing Transformation: Transforming vs. Not yet, and Planning the transformation, in progress, transformed

1. ITSMA Online Survey
Marketing Transformation:
Are we there yet?
Julie Schwartz, Senior Vice President,
Research and Thought Leadership, ITSMA
Dianne Kim, Research Associate, ITSMA
Kerry Johnston, Client Services Director, ITSMA Europe
Abbreviated Summary | May 2012
Note: This Abbreviated Summary highlights some of the significant findings from
Marketing Transformation: Are we there yet?
A more in-depth analysis can be found in the full report.

2. Key Takeaways
Marketing must transform: Marketing does not change in a vacuum—
Our world is changing so fast that the rest of the organization has to
changing your marketing incrementally is change too
not an option
We see clear evidence of marketing The key transformation challenges are:
leaders rethinking, reskilling, and • Changing the internal
reinventing the organization perception of marketing
Nevertheless, we are in the early stages of • Balancing the strategic
transformation, as many marketers have with the tactical
yet to achieve their objectives • Developing new skills
There are three distinct roles of a • Changing the
transformed marketing organization: company culture
• Strategic Business Driver
• Relationship Builder
Despite the desire for marketers to be
• Effective Executor more strategic, tactics are just as
important
Source: ITSMA Survey: Marketing Transformation, May 2012

3. Our world is changing so fast
that incremental is not an option
Data Channel Marketing Changing
Explosion Proliferation Technology Surge Buyer Behavior
Geographic The Rise of the Budget Constraints/
Expansion/Culture Social Buyer Cost Cutting
Shock
Source: ITSMA Survey: Marketing Transformation, May 2012

4. And we see clear evidence of marketing
leaders rethinking, reskilling, and
reinventing the organization
Source: ITSMA Survey: Marketing Transformation, May 2012

5. Two-thirds of marketing organizations
have begun their transformation
Has your marketing organization already
transformed, or is it in the process of But we’re not there yet!
transforming? % of Respondents (N=178)
Don't How far along are you?
know % of Respondents (N=121)
Do you believe such a change 11%
is coming? Our new organization is fully in
% of No 11
place and operating well
Respondents Yes 21%
(N=37) 73%
Yes
68% Our new structure is in place
33 and we are working with teams
Don't
to re-enforce changes
know
No
16%
11%
The planned changes have
31 been communicated with the
team and we are currently
redefining roles
Initial plans have been agreed
7
but not yet communicated
Planning has begun but no
18 decisions have yet been made
Source: ITSMA Survey: Marketing Transformation, May 2012

6. ITSMA has identified the six
most important characteristics of a
transformed marketing organization:
Strategic Instills an outside-in orientation to drive
1 a customer-centric business strategy
Business Collaborates with the lines of business/
Driver 2 P&L owners
Partners with sales throughout the
Relationship 3 buying process
Builder 4 Develops direct relationships with
customers and builds advocacy
Builds a dynamic and flexible workforce,
5 including agency relationships
Effective
Uses data and analytics to improve
Executor 6 marketing efficiency/effectiveness and
business impact
Source: ITSMA Survey: Marketing Transformation, May 2012

7. What are the transformation challenges?
• Changing the internal
perception of marketing
• Balancing the strategic
with the tactical
• Developing new skills
• Changing the company
culture
Source: ITSMA Survey: Marketing Transformation, May 2012

8. Despite the desire for marketers to be more
strategic, tactics are just as important
Source: ITSMA Survey: Marketing Transformation, May 2012

9. Study Methodology
Online Web-based Survey ITSMA Analyzed the Data
Survey invitations were Four Ways
emailed during
May 2012 to ITSMA Company • Sells products and services vs.
member and select Type Primarily services
non-member companies
• Less than $100M
Company • $100–999.9M
178 people completed
the survey
Size •
•
$1–10B
More than $10B
How Marketing • Marketing is viewed as:
is Viewed Strategic vs. Tactical
Qualitative Interviews
Status of • Transforming vs. Not yet
hour-long interviews with Marketing • Planning the transformation,
20 members of ITSMA’s
Advisory Boards (Europe
Transformation in progress, transformed
and North America)
Source: ITSMA Survey: Marketing Transformation, May 2012

10. Type of Company Respondent Titles
How would you describe your company’s Which of the following best describes your role at
business? % of Respondents (N=178) your company? % of Respondents (N=178)
Sales executive
(C-level, SVP,
VP, AVP) Sales staff
Primarily 48% 52%
Both products Sales 1% 1%
services and services manager/director
1% Other
5%
CEO, COO,
CFO, GM,
President
10%
Marketing staff Marketing
Industry Subsector 10% director/manager
54%
Which of these categories best describes your
industry subsector? % of Respondents (N=178) Marketing
executive (CMO,
SVP, VP, AVP)
Professional services firm 46 19%
Computer systems and solutions
provider
20 Organization Size
Software solutions provider
What is your company's annual services revenue?
13
% of Respondents (N=178) 43
Network/telecom solution provider 11
Other hardware systems and
4
solutions provider 19
16
Marketing agency, PR, or 10
3 7
advertising services provider
1 3 1
Medical/health technology
2
products, services, and solutions
Less $50– $100– $250– $500– $1– $5– More
than 99M 249M 499M 999.9M 4.9B 10B than
Other 2
$50M $10B
In Annual Revenue
Source: ITSMA Survey: Marketing Transformation, May 2012

11. Table of Contents for
Marketing Transformation:
Are we there yet?
Slide
Executive Summary 3
Methodology and Respondent
26
Demographics
Detailed Findings 35
Appendix: Study Definitions 70
For More Information
Julie Schwartz
Senior Vice President
Research and Thought Leadership
ITSMA
jschwartz@itsma.com
+1-407-788-8220