One of my friends who runs a multi-billion dollar APAC
channels business for one of the largest ISVs told me about an interesting
problem. His marketing team was finding it very difficult to convince many of
his business partners on the need to participate in their annual kick-off
conference. Having done business with them in the past and having worn the hats
of marketing as well as alliance I had my logic taking sides. These two
functions are diagonally opposite in their thought frame but equally critical
and aligned to business. Diagonally opposite as ‘typical’ marketing thinking
rests in the future while a 'typical' alliance thinking (where the rubber hits
the road) rests in the present (read quarter).
The sales team of his partners may not invest in this
kick-off as they do not see an RoI in a conference where you mostly have the
large ISVs sales team and some of their top customers. A custom event where you
are seen as a ‘Platinum sponsor’ costs the same and might give you much more
access to prospects (and hence pipeline)
Large organizations, especially ISVs these days are no more
organizations, rather ecosystems. Steadily, and at times subtly, customers too
get intertwined in ecosystems. Their entry into the ecosystem might be
through something as small as a 'feature' to as big as a 'platform'. However
once business drivers take the engagement forward the entire world of options
reduces to the ecosystem around that product. This essentially means there is
a strong incentive for all, if not most (seller) organizations, to align and be
seen as a part of an ecosystem.
Identifying the right ecosystem to play is an extremely
strategic decision which the 'strategic alliance’ function has to lead while
ensuring the world knows of your allegiance to that ecosystem is a function of
'tactical' marketing. However there is a layer in between these two which is
often forgotten - 'Strategic alliance marketing'. The end customer (and
shareholders, prospects and employees) are least bothered of your allegiance as
long as you do not bring/articulate a clear value to the ecosystem by being a
part of it. Identifying and articulating/building messages around that value
add is a function of ‘strategic alliance marketing’. Quite often the whole
marketing thinking is missing when the alliance function takes the driver's
seat and the alliance thinking is missing when marketing takes a driver's seat.
This is where the ‘Strategic Alliance marketing’ function becomes most
critical. The world cares nothing about SAP, Intel and Cisco coming together
unless there is a clear incremental benefit of them being together in my data
center, which otherwise I don’t get.
As the ecosystem play expands, the future of these two
pivotal functions, without doubt rests in the 'thinking' alignment of both.
Finding it hard for the ISV to find marketing sponsors for their Annual Kick-Off conference? Was the audience internal Sales or customers?
ReplyDeleteToday's marketing Departments are facing the issue of declining budgets and are under huge pressure to demonstrate value. Revenue Marketing is becoming king: "How much pipeline has Marketing contributed to Sales? Which Marketing Activity will result into the highest ROI per Marketing $ invested? "
Revenue Marketing shifts marketing investments from long term to medium term. In addition Marketing people have sales stakeholders so they tend to do more and more what is in the best interests of sales teams (helping generate quick sales).
Agree with the post that this is where you need to have a Strategic Alliance marketing function. People with budget who can focus on the future even if the investment does not have a short term return. Failure to do that puts the company at risk...