During November and December of 2008, and again in June of 2009, Frantz Group conducted a special market research project.  We contacted senior marketing leaders at high technology companies to better understand how the tough economy was impacting them.  We set two clear goals for our project:

  1. Assess the impact of the economy on marketing departments at technology companies
  2. Gain insight into how they were working to overcome it

We have tabulated the findings and completed the final report.  Participants answered questions thoughtfully and took time to write in many comments which increased the overall value of the findings.  Because of the feedback we’ve received from clients and participants, we expect to repeat this research regularly.

The survey was divided into two parts.  The first part contained two questions that qualified participants – one insured they had the proper demand gen responsibilities and the other made sure their primary business focus was technology.  The remaining twenty-four questions covered a wide range of topics including company size, marketing budget, demand gen budget, revenue goals, demand gen issues, demand gen tactics, use of outsourcing, impact of a weak economy, channel plans and more.

The final report was published in August 2008 and distributed to the 49 participants representing 43 technology companies.  Our follow-up survey took place in June of 2009, both reports are available below.

Here’s an excerpt of the analysis found in the Marketing in a Tough Economy reports:

What’s been the impact of the economy?

  • More widespread revenue impact as 71% reported decreases compared with 44% in December
  • Deeper cuts in marketing budgets; in December, only 18% expected a reduction of 15% or more; in June, the number had risen to 37%
  • Widespread increase in sales cycle times; in December, 44% reported a sales cycle time increase; now it’s 75%.; and some are a seeing a 50% or 75% longer sales cycle.
  • When will the economy turnaround? In December, the consensus was by end of 2009; now the feeling is Q1 or Q2 of 2010.

How is the change in demand showing up?

  • Decreases are showing up mainly in direct mail and live events (unchanged from December)
  • Increases are showing up mainly in social networking, email marketing, web events and telemarketing (social networking and email marketing are new for June)

What is marketing doing to meet these challenges?

  • Changing the mix – increasing PR and social networking, changing prices (even some increases), reducing advertising and direct marketing
  • Continued strong investments in channel, online and social networking
  • Putting more emphasis on targeted account marketing
  • Driving focus in many dimensions – specific verticals, certain products, strategic partners, value/ROI messaging, vulnerable competitors, and current accounts.

Report files: 
2008_FG_Tough_Economy_Report
FG_Tough_Economy_June_2009_Report