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Marketers Neglecting Demand Chain Performance

December 1, 2010

As marketers focus on creative development and campaign execution, they often overlook the operational aspects of their go-to-market processes, resulting in the inefficient delivery of marketing materials to intended audiences and, ultimately, weaker frontline performance, according to a study by the Chief Marketing Officer (CMO) Council.

There's significant opportunity for marketing to improve the go-to-market process: 80% of surveyed marketing executives say their organizations are not efficient enough in go-to-market capabilities and efficiencies relative to provisioning all the elements of the demand chain.

Demand chain provisioning refers to the timely delivery of marketing and merchandising materials, as well as the processing of customer requests for sales literature and samples via the Web, call centers, and email channels, according to the survey.

Below, other findings from the study Competitive Gain in the Demand Chain by the CMO Council.

Value of Demand Chain Provisioning

Marketing execs agree there is value in demand chain provisioning, citing its impact on key business outcomes:

  • Business competitiveness and performance: 38%
  • Sustaining sales and channel operations:31%

However, fewer marketing execs are taking action:

  • 25% are ensuring sales support materials and resources are delivered on-demand, which likely improves sell-through and customer conversion. 
  • 15% are taking steps to audit and assess marketing supply chain effectiveness.

Meanwhile, 56% of marketing execs say they are focused on campaign design, development, and execution, whereas 16% are concerned with production, warehousing, and inventory management or delivery—all critical elements in an effective demand chain.

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