Aligning sales & marketing presentation along with a case study at the 2007 Chief Sales Executive Forum

1. 2007 2007 Aligning Sales & Marketing: Mission Not Impossible CHRISTINE CRANDELL

2. Who Am I? Vice President, Ariba Global responsibility for marketing, strategy and sales productivity 20 year enterprise technology market strategist SAP, Oracle, PriceWaterhouse President of New Business Strategies 70 projects in N. America, Europe and Australia Market strategy, organizational optimization, M&A Slate of brand-names: Oracle, Nortel, Clarify, SatMetrix, Indus

3. Even if you are on the right track, you will get run over if you just sit there.

4. The New World The customer is smarter and she’s your boss Customer have near total control of the buying process and marketing channels The “purchase funnel” is the Web Web is the primary influencer in the decision making process. There is no secret sauce Marketing is “Try, morph, toss, try again”. The rules are changing as fast as the costs are dropping. Consumerization of B2B marketing It’s all about entertainment-factor, interactivity and customer communities. Success is defined by rapid adoption; stickiness defined by perceived value.

5. 2007 Section 1 Case of Different Missions

6. Different Missions Sales: Focused on the individual By closing sales Month and quarter time horizon Easy to see who and what is successful It’s immediate and visible Marketing: Focused on projects Multiple metrics and objectives Differing time horizons – some short, some long term Hard to see who and what is successful Link between ‘lead and close’ not obvious or immediate

7. Where Missions Collide Economics How budget is divided between Marketing and Sales Price setting and packaging Marketing’s promotion costs vs. more quality ‘feet on the street’ Product roadmaps and releases Size of budget reflects political clout ROI and how it fits to corporate objectives Cultural Attract different types of people Marketing: analytical, long term oriented Sales: relationship masters, short term/deal oriented Spend their time differently Marketing: desk jockeys that LOVE meetings Sales: in the field making relationships actionable Compensated differently: Salary vs. commission/perks

8. The Run Over Where are my leads? You aren’t sending prospects to events. Sales management won’t make time to review marketing plans. How is Marketing spending my money? I need more leads. Why haven’t you followed up on last month’s leads? Why are 60% of deals disengaging? I missed my quota because of Marketing. Lead quality stinks. Why aren’t the AEs using the CRM system? Why are prospect contacts in Outlook? You’re not using sales tools. I didn’t learn anything at sales training. Sales isn’t focusing the right features. Marketing isn’t that hard; I write my own copy. I’m losing deals! My prospect never heard of me; PR doesn’t work.

9. 2007 Section 2 Path to Alignment

11. No shared metrics

12. Conflict-based meetings

13. Independent Teams

15. Common language

16. Roles defined

17. Stick to own tasks

19. Cross-border collaboration

20. Flexible but clear boundaries

21. One vocabulary

23. Joint planning & execution

24. Blurred boundaries

25. Marketing embedded in sales

26. Up/downstream marketing IV. Unified

28. Common processes and metrics

29. Appoint Chief Revenue Officer

30. Define steps in marketing and sales funnels

31. Split Marketing into up- and down-stream groups

32. Set shared revenue targets and reward systems

34. Create joint assignments

35. Job rotation

36. Co-locate marketers / sales

37. Assign liaisons

41. Defined common, global processes

42. Defined steps in mktg / sales funnel

43. Shared targets

44. Integrated planning

45. Integrated sales / marketing metrics

46. MBOs set to revenue metrics

47. CRO established

48. Integrated campaign

49. Processes Redefined

50. Embedded Field Marketing

51. Campaigns and lead tracking in SDFC

53. Random acts of marketing

54. Reactive to Sales

55. No metrics / lead tracking2005 2006 2007

56. Ariba Organization Highly decentralized and matrixed – and lean organization.

58. Delivery of more, qualified leads through focused marketing programs and a channel partnership program

59. Focused employee development and productivity enhancement plansBetter understanding of customer needs and wants Innovation tied to specific customer segments Right resources always engaged with customer objectives Improved customer satisfaction Expand Ariba as the leading Spend Management business solution provider

60. Global Marketing Strategy &Goals Make Ariba the leading Spend Management business solution provider Global Sales Vision Become the market share and thought leader by anticipating customer needs before they articulate them and fully satisfying them. Marketing Vision Customer Success Inc. # of references Rebuild effective customer communication Launch ACE community and 1:1 customer marketing partnerships Market Expansion Update new messaging / vision Drive global demand programs in key markets and new initiatives Drive new thought leadership in new sectors Operational Excellence Implement improved lead processes globally Shift branding, collateral and digital marketing to persona marketing Rebuild training to decrease AE ramp Build deep, rich customer relationships Improve AE productivity Double net new Demand Strategic Goals Operating Goals

61. Customer Centric Marketing Structure Legal Council Finance Procure / Sourcing IT Supplier Strategy & Content Market Perception - Media Shared Service / Agency Model Demand Generation - Campaigns Execution ACU / Enablement Customer Relationships - References

62. CCMO Process Cycle Attracting Market Perception Shaping Persona / Segmentation Marketing Customer Relationship & Enablement Growing Winning "Customer" Demand Execution Winning

63. Path To CCMO Start small by determining ‘ideal’ customers and develop test micro-segments Test offers and communication streams Segment and profile customers and target audiences Expand SDFC to micro-segment on 20 criteria Align processes around continuous performance measurement and process refinement Build models of ‘personalized’ interactions for unique personas (6) Begin automating precision marketing processes Establish a robust marketing technology framework Provide a seamless multi-channel experience unique for each micro-segment based on profitability

64. Marketing Scorecard

66. Exceptional Staff on Both Teams

67. Have a Passionate Vision

68. Change Everything including Policy

69. Shared Rewards Especially CLUB

70. Extreme Technology