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Case Study #1

Helping IT Marketing Executives Respond to a Difficult Economy

CHALLENGE:  As a result of the poor economic environment, many of our technology clients were struggling to adapt their marketing efforts and wanted to learn how marketing executives in top U.S. software companies were planning to address market challenges moving forward. Software firms were trying to answer questions such as: How were marketing priorities changing as a result of the difficulty economy? Were the majority of firms slashing marketing budgets or were some using this time to invest in marketing activities? What percent of revenue were most firms spending on marketing? Was that changing?  Were software companies altering their marketing plans, budgets, and activities? And if so, how?

SOLUTION: MarketWise Insights, Inc. in conjunction with a marketing communications firm, Smith & Suita, Inc., designed and conducted a detailed market research project; research was conducted via comprehensive executive interviews with 44 software companies headquartered in the U.S.  Lengthy interviews were completed with VPs of Marketing, Chief Marketing Officers, and Marketing Directors.  Marketing executives were questioned on three key areas: marketing planning, spending, and execution, and comparisons were made between current and prior year.  Companies in this study ranged in size from $6M in annual revenue to more than $15 Billion in annual revenue.

After the research was analyzed and presented in a report, software executives were able to have a clear understanding of technology marketing trends. In addition, the data was presented by company size, allowing marketing executives to compare key priorities, spending trends, and percentage of revenue spent on marketing with companies of similar size.  Marketing executives were also able to compare how marketing budgets are split among ten key marketing activities, such as direct mail, advertising, market research, etc.  This landmark research was able to help marketing executives determine priorities going forward, with a deep understanding of how competitors were allocating funds.  


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