Internal coordination, resources and CRM

Question 1

Describe the Paper:

Nath, et al., (2011). Marketing in the C-suite

Answer 1

The authors investigate the drivers and outcomes of this phenomenon using a hierarchical measure of power for the CMO in the top management team (TMT), or corporate executive suite (C-suite)

Findings:
1. CMO power increases when the CMO has the additional responsibility of sales 1. This suggests that when the CMO is involved in sales activities, their power within the top management team increases.

2. CMO power increases as TMT marketing experience decreases 1. This implies that when there is less marketing experience within the top management team, the CMO’s power tends to be higher.
3. CMO power increases in highly divisionalized TMTs 1. This suggests that in organizations with a high level of divisionalization within the top management team, the CMO’s power is likely to be higher.
4. The additional responsibility of sales for the CMO improves sales growth 1. This indicates that when the CMO is involved in sales activities, it has a positive impact on the firm’s sales growth.
5. CMO power in firms that are unrelated diversifiers reduces profitability 1. This finding suggests that in firms that engage in unrelated diversification, higher CMO power is associated with lower profitability.

Question 2

Describe the Paper:

Sabnis, et al. (2013). The sales lead black hole

Answer 2

This paper explores the issue of the sales lead black hole, where leads generated by marketing departments are not effectively pursued by sales representatives. It examines the factors that influence sales reps’ follow-up of marketing and self-generated leads, including motivation, ability, opportunity, and organizational processes.

Implications:
This study can be useful for sales managers, marketing professionals, and organizations that are interested in improving their lead generation and sales processes. The findings and insights from this study can help managers understand the factors that influence sales reps’ follow-up of marketing leads and identify areas for improvement in lead prequalification and managerial tracking.

*Prequalification is the most important!

Question 3

Describe the Paper:

Venkatesan, R. and Kumar, V. (2004). A customer lifetime value framework for customer selection and resource allocation strategy

Answer 3

In this research study, the authors investigate the concept of customer lifetime value (CLV) as a metric for customer selection and marketing resource allocation. They aim to develop a dynamic framework that explores how marketing contacts across various channels can influence CLV nonlinearly.

Some of the implications discussed in the text include:

1. The superiority of selecting customers for contact based on CLV compared to commonly used metrics such as PCR, PCV, and CLD.
2. The benefits of designing marketing communications that maximize CLV.
3. The potential for improved profits when managers design resource allocation rules that maximize CLV.
4. The ability to allocate marketing resources efficiently across customers and channels of communication using the framework proposed by the authors.

Question 4

What is the role of marketing?

Answer 4

The political game of top management​
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Marketing is often seen money-using, not money-generating​
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Mistakenly compared to communication/PR​
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Marketing is viewed as a support function in many companies​
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CMO: Chief marketing (and communications) officer

Question 5

‘Lead’ follow-up

Answer 5

• Perceived quality of a lead, what is that? Easiness? Size? – It differs a lot, but from a company standpoint, you want to invest in the prospects with highest potential of buying and being loyal  CLV calculations
• As sales reps become more experienced, they move focus away from customer acquisitions, towards customer retention = The case of IBM

Question 6

Brand engagement

Answer 6

The link between creating a strong brand and relational orientation

Question 7

What is Cognitive-emotional brand engagement?

Answer 7

Thinking about, interested, positive feeling, emotions

Question 8

What is Behavioural engagement?

Answer 8

Reading, commenting, participating, sharing

Question 8

What is Behavioural engagement?

Answer 8

Reading, commenting, participating, sharing

Question 9

What are the elements of brand engagement content?

Answer 9

• Helpful content: Ideas, guidelines or helpful instructions
• Relatable content: Something that you find interesting etc.
• Authentic content: It has to be real – Has to come from the heart

Inspiring content: Mix of Helpful and relatable content
Entertaining content: Mix of Relatable and authentic content
Educational content: Mix of Helpful and Authentic content

Question 10

What are the brand components?

Answer 10

Question 11

Explain the CLV model

Answer 11

Question 12

Explain Account-based Marketing

Answer 12

Account based marketing (ABM) is a business marketing strategy that concentrates resources on a set of target accounts within a market. It uses personalized campaigns designed to engage each account, basing the marketing message on the specific attributes and needs of the account

Instead of targeting a large segment in the beginning, you chose one or a few accounts, that you chose to target, and then increase your activities related to them. (100% tailored marketing)

Question 13

Explain resource Allocation matrix

Answer 13

Question 14

What is a service level agreement

Answer 14

Agreement between marketing and sales on when to handoff qualified leads

• Creates a common goal
• Setup lead scoring treshold for handoff
• Updated through monthly reviews

*70 % of the leads generated by marketing are never contacted by sales