A new study by the Chief Marketing Officer (CMO) Council reveals significant blind spots in the go-to-market process as marketers focus on strategy, creative development and campaign execution to the detriment of effective demand chain provisioning. The latter includes the efficient and timely delivery of marketing and merchandising materials to dealer, agent, franchise, retail and brand office locations, as well as the processing of customer requests for sales literature and samples through Web, call center and email channels.
According to the report, entitled Competitive Gain in the Demand Chain, many marketing executives admit they have never assessed demand chain performance, nor given it high priority within the marketing operational mix. This may be contributing to the belief, expressed by 80 percent of respondents, that their organization is not efficient or effective enough in provisioning all of the demand chain. A surprising 20 percent of more than 250 marketers audited by the CMO Council in the past three months admit their demand chain is under-performing or in need of improvement.
The study, sponsored by Archway Marketing Services, is part of ongoing research by the CMO Council's Marketing Supply Chain Institute http://www.marketingsupplychain.org/) into ways to improve front-line performance through better go-to-market process innovation, supply chain optimization, and marketing ecosystem management.
Marketers agree that demand chain provisioning is critical to business competitiveness and performance (38 percent of respondents), while an additional 31 percent believe it is important to sustaining sales and channel operations. Yet, only 25 percent of respondents are ensuring sales support materials and resources are delivered on demand, which would improve sell-through and customer conversion.
Only 15 percent are taking steps to audit and assess marketing supply chain effectiveness, indicating that there is little to no visibility into the demand chain provisioning process to truly gauge content, material or operational impact and performance.
"Marketing tends to be preoccupied with staying on track with individual tactical executions or traditional marketing fundamentals like lead generation, campaign execution and content or creative development," said Donovan Neale-May, executive director of the CMO Council. "However, today's demand chain requires a new mix of digital, direct, and retail distribution, fulfillment, measurement and tracking capabilities to maximize customer contact, conversion and interaction."
