Marketing Operations Management

MARKETING OPERATIONS MANAGEMENTTransforming Marketing Departments into Marketing Powerhouses

Marketing Delivered.

www.archway.com

by Megan Effertz: Vice President, MarketingJanuary 2009

BEST PRACTICES

www.archway.com

Page 1 ©2011 Archway Marketing Services. www.archway.com. Ten Tips for Consolidating Fulfillment Partners

MARKETING OPERATIONS MANAGEMENTTransforming Marketing Departments into Marketing Powerhouses

EXECUTIVE SUMMARY

As the Vice President of Marketing at Archway, Megan’s responsibilities include marketing strategy,

branding, public relations, communications and sales operations. Leveraging her decade of marketing

experience, Megan is able to understand her clients’ marketing challenges and helps drive growth.

Prior to joining Archway, Megan was responsible for marketing strategies and product development for

a range of industries (agriculture, packaging, construction, etc.) at an international plastics company.

She also provided all sales and communication strategies at a national insurance company.

Megan has won various awards for her marketing programs and serves on the Business Marketing

Association Board, MN Chapter. She holds a Bachelor’s in Communications from the University of

Minnesota and a Master’s in Business Communication from the University of St. Thomas Graduate.

by Megan Effertz: Vice President, Marketing

TABLE OF CONTENTS

INTRODUCTION: THE EVOLUTION OF MARKETING

THE BENEFITS OF MARKETING OPERATIONS MANAGEMENT

IS OUTSOURCING RIGHT FOR YOU?

IMPROVE YOUR MARKETING EFFICIENCY WITH ARCHWAY

MARKETING OPERATIONS MANAGEMENT CASE STUDY

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INTRODUCTION: THE EVOLUTION OF MARKETING

The role of marketing is constantly changing. As budgets shrink and demands grow, marketing departments across the country are being carefully scrutinized for their effectiveness. Top executives are holding marketers more accountable, which means they must not only deliver results, but also find ways to measure the actual bottom-line impact of their marketing initiatives.

Previously, the success of a marketing initiative was primarily judged on the tangible deliverables the marketing team produced, such as media coverage at an event. However, those days are long gone. As the discipline of marketing evolves, marketing practitioners are becoming far more sophisticated in terms of their ability to deliver measurable results and a solid return on investment (ROI).

In addition, advancements in technology also help elevate marketing to a more exact science by replacing campaign-by-campaign

reporting with the ability to establish meaningful metrics at the beginning of a marketing program, at key points throughout its execution, and at the program’s conclusion. Such technology allows marketing teams to look at campaign performance in real-time, evaluate the success or failure of a particular initiative, and make changes accordingly.

As the trend toward merging marketing “creativity” with marketing “science” continues, more companies are expanding their marketing departments to include a marketing operations management (M.O.M.) function, which directly links its marketing programs to concrete business results.

Adding marketing operations management to a company’s marketing mix enables it to run its marketing department as a viable, accountable business unit within the organization where people, processes and technology are fully leveraged to help make marketing outcomes more predictable.

Marketing Operations Management is often

defined as automated end-to-end marketing, from

planning and budgeting, through marketing content

management, to marketing execution and analysis,

resulting in optimum marketing performance.


THE BENEFITS OF MARKETING OPERATIONS MANAGEMENT

Marketing operations management is an emerging discipline that is growing both in popularity and in practice as more companies struggle with ways to optimally leverage their marketing department’s shrinking resources. As more organizations are discovering, implementing marketing operations management into a company’s infrastructure can help transform a marketing department into a marketing powerhouse.

How do marketing departments go from practiced to powerful?

Marketing operations management “builds a foundation for excellence by reinforcing an organization’s marketing strategy with metrics, infrastructure, business processes, best practices, budgeting and reporting.”1

The obvious desired outcome of marketing operations management is to achieve a measurable return on marketing investment (ROMI). To achieve ROMI, a “marketing dashboard” of sorts must be created, which enables employees to utilize technology and metrics to monitor the status of all ongoing marketing initiatives at any given time.

With marketing activities being evaluated in real-time and directly linked to business results, “marketing departments are in the perfect position to influence strategic decisions and help increase organizational revenue, decrease costs and maintain high levels of customer and employee satisfaction.”2 Overall, building a solid marketing operations infrastructure facilitates informed decision-making and accountability within an organization. Aside from the many benefits, the in-house execution of marketing operations can be costly to manage and is often outside the company’s business scope. Because of this, many Fortune 500 companies are turning to third party service providers, like Archway Marketing Services, to outsource components of their marketing operations.


IS OUTSOURCING RIGHT FOR YOU?

Marketing operations management can re-energize a stressed-out marketing department. Rapidly increasing demands are draining marketing resources, which may lead to high employee turnover, failed marketing programs and missed opportunities. However, partnering with an outsourcer can relieve those pain points by allowing companies to refocus their marketing resources on the initiatives that give them the most bang for their bucks.

Additional findings from the Stanford University study also indicate that companies that outsource programs also benefit from improved technical capabilities, greater competitive differentiation, greater inventory visibility, increased system uptime and availability, and increased ROI.4

Why is outsourcing their marketing operations so beneficial to companies?

First, leveraging an outsourced partnership allows companies to integrate multiple systems and lets the outsourcer manage across multiple platforms and across different parts of the supply chain. Companies can take advantage of the outsourcer’s expertise to help them deploy best practices that further advance their market position.

Additionally, many companies who outsource their marketing operations management experience an increased focus on their more critical revenue generating activities, such as product development and brand management as well as the growth and retention of their customer base.

Overall, successful outsourced partnerships result in:

Increased focus on core competencies•

Reduced spending on infrastructure and •technology upgrades

Rapid adoption of new capabilities versus •building internally

Redeployment of human capital to revenue •generating activities

Reduction in full-time equivalent and •temporary staff

Higher internal customer satisfaction (sales •network, franchises, retail branches, etc.)

Enhanced decision-making•

High-level inventory management•

Improved vendor management•

If your company is looking for ways to maximize shrinking resources, reduce headcount, save capital costs, improve customer satisfaction, and re-engage core competencies, outsourcing might be the solution.


Fortune 500 companies are turning to Archway Marketing Services (Archway) to help them manage their marketing operations. After doing this for more than 55 years, Archway has perfected outsourced marketing operations management and has leveraged its knowledge across a variety of clients and industries. Allowing Archway to do what it does best frees up companies to do what they do best – grow their bottom lines.

Archway offers end-to-end marketing operations management , providing streamlined processes with automated technology to eliminate unnecessary costs, speed time-to-market , and improve brand experience. As a business partner, Archway provides the decision support tools that executives need to gain instant access to data that determines the overall effectiveness of a marketing initiative.

Archway’s marketing operations management services include:

Business Assessments•

Market Planning•

Sales Portals•

Product Procurement•

Vendor Management•

Fulfillment and Production•

Logistics Management •

Reporting and Analytics•

Decision Support Tools•

For more than five decades, Archway has helped some of the largest companies in the world develop and implement marketing operations strategies with the highest efficiencies and effectiveness. As modern marketing continues to evolve, Archway will stay at the forefront of business trends and technology to ensure that your successes become their successes.

IMPROVE YOUR MARKETING EFFICIENCY WITH ARCHWAY

In a recent study from Stanford University,

researchers found that companies deploying

outsourcing solutions experience a 245 percent

greater return than their annual investment and a

62 percent improvement in customer satisfaction.


Overview

Taco Bell selected Archway to provide an outsourced marketing operations management model to manage its in-store marketing needs for 6,000-plus U.S.-based franchises.

Archway deployed an onsite account management team to handle the complete execution of its in-store marketing campaigns including print, logistics, store profiling and financial management. This team acts as an extension of the Taco Bell marketing team, while residing on the Archway payroll.

As a result of this partnership, Taco Bell streamlined its marketing initiatives and reduced its printing and production costs by millions of dollars. To illustrate, Taco Bell had approximately 6,165 stores and spent more than $20 million on print in 2002. By 2006, Taco Bell had grown to 7,004 stores and had reduced printing costs to $10 million.

The Archway Solution

Archway’s onsite account team effectively manages all phases of Taco Bell’s marketing campaigns. For example, Archway developed a store profile database that captures restaurant-specific information for each franchise location, such as the size and number of store windows, whether the store has a one-or-two lane drive-thru, whether language-specific menu boards are needed, price points for the location, etc.

From there, Archway can create customized POP kits for each restaurant. Ninety-eight percent of the system is now merchandised with a “one system, one brand” kit for all restaurants, which gives consumers the same brand experience no matter the location. The store profiling and custom kits also reduce waste and excess cost by only shipping what franchise locations need based on specific schematics.

Furthermore, Archway immediately reduced the number of stock keeping units (SKU’s) through effective inventory analysis. This resulted in a significant material and inventory carrying cost savings of nearly $1 million the first year, and $650,000 every year thereafter. While working with Archway, Taco Bell continues to expand its franchise operations while still cutting costs. Archway’s expertise in marketing operations management allows Taco Bell to redeploy its marketing resources where they are most beneficial.

In addition to a long-term business partnership with Taco Bell, Archway also serves a multitude of clients in a variety of industries, including: Automotive, Consumer Packaged Goods, Entertainment, Financial Services, Food & Beverage, Healthcare, Retail, and Technology.

Archway offers marketing operation evaluations, which pinpoint areas of opportunity for the reallocation of marketing resources. For more information, visit www.archway.com.

MARKETING OPERATIONS MANAGEMENT CASE STUDY

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http://www.archway.com/Clients-Industries/Food-and-Beverage.aspx

ABOUT ARCHWAY

Archway is a leader in marketing operations management, providing marketing execution solutions and complementary business process outsourcing. These solutions include fulfillment services, call center solutions, consumer promotions, rebates, print management, warehouse management, business intelligence and decision support tools. Each solution is designed to reduce marketing operations costs, improve marketing execution processes, leverage emerging technologies, and most importantly, help improve the brand experience at every touch point of their clients’ marketing campaigns. Following the acquisition of the supply chain management division of Resolve on July 1, 2009, Archway has 1,500 employees and 3.5 million sq. ft. of distribution space in 13 major metropolitan areas in North America. For more information, visit www.archway.com or contact us at [email protected].

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Marketing Operations Management