04 Marketing IT supplement
B2BM MAR 08 – www.b2bm.biz
The impact of structural changes within the technology sector, combined with an
uncertain economic outlook, are changing the ways in which IT products and services
are marketing to business. Mark Tobin reports
ALL CHANGE FOR
TECH MARKETING?
here’s a storm a-coming. It is not just the existing customers hardly represents a paradigm shift. But
T
metaphorical skies that are darkening; increasing the change here is more subtle. It represents a move away
amounts of ink are being slathered over the from focusing on new client wins toward using business
business pages warning us of an economic downturn. intelligence, data analytics and older techniques such as
Whatever the real prospects, what is not open to senior level peer-to-peer networking to take tech marketing
conjecture is that all this talk is having an effect, with the to a new level of sophistication.
tightening of purse strings in many industries. This is a move that is not only a reaction to the
At the beginning of February, specialist technology economic climate, but one that may also capitalise on
market analyst IDC revised its worldwide forecasts for IT some of the anxieties felt by IT purchasers.
spend in light of what it called “macroeconomic Central to this is a focus on humanising marketing,
weakness”. Predictions for the growth of the global IT moving away from talk about product specs toward a
“What is needed is market were cautiously scaled down – to five per cent in focus on how the product can directly benefit the business.
measurements on the value of 2008 compared to six per cent in 2007. Things look more Increasingly, vendors will need to become trusted partners
the relationship. Peer-to-peer challenging in the US, but Western Europe is not in the and educators for their clients in order for them to
networking is a fantastic way of clear: IT spending here is forecast to grow four per cent in maximise the potential of valuable customers.
building a relationship, but you 2008 compared to last year’s five per cent. “Vendors can’t afford the arrogance they once had,”
wouldn’t say it was the function The slowdown is compounded by rising costs. IDC attests says Chris Sykes, MD at Volume. “We have to get a deeper
of DM, new media or an event, it that “IT marketing costs are rising faster than revenue”. understanding of the customers’ business. We’re moving
is a combination of everything” Technology marketing is often seen as the most away from providing a commodity to delivering
advanced form of B2B marketing, leading where other infrastructure and resources. We now host one global
PAUL EVERETT sectors follow. Yet, despite its position in the vanguard, organisation’s intranet – a few years ago that would have
Marketing director even technology marketing is feeling the strain. been unthinkable.”
The Marketing Practice The challenge, as 2008 rolls on, is in how these innovative For a sector so tied in with technological innovation
marketers are able to make marketing revenues go further. and the advancement of new marketing channels, the irony
The techniques and innovations technology marketers adopt is that the real innovation in 2008 is nothing to do with
may provide valuable insights into what other sectors can do podcasts, webinars or having the fastest processor. It’s a
to safeguard themselves during turbulent times. new way of thinking.
The changing face of IT Relationship ROI
Quite apart from the wider economic issues, the IT If recent research is correct, marketing more products and
industry is undergoing changes of its own that services to existing customers may not be as difficult as
fundamentally affect margins. first thought. IDC claims that a survey of IT buyers
The UK IT market has matured, products and services demonstrates that “time and again buyers want partners,
are becoming commoditised and competition is increasing. not vendors”.
There is also widespread consolidation. The reasons are clear: IT solutions can deliver
Therefore the key battleground for most technology efficiencies and demonstrate solutions to business
marketers is finding ways to create more revenue from problems. Take convergence solutions as an example. This
existing customers. is a huge growth area, but one that brings its own
Upselling and cross-selling have always been key headaches around data, integration and security. These
strategies for any business; leveraging greater spend from difficulties are a vendor’s opportunity – increasingly,
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