Recession to claim 6,000 tech marketing jobs

16 Sep 2009

With IT vendor marketing budgets set to decline by 8.3pc in 2009 – the first major decrease in tech marketing spend since the bust of 2001 – more than 6,000 tech marketing jobs will be lost by the end of the year.

IDC analysts are also observing that many marketing executives are facing organisational pressure during 2009, with more than 70pc of senior marketers indicating that their marketing departments are experiencing “significant organisational change” in IDC’s latest survey of chief marketing officers.

“Most marketing departments remain adequately funded – even with these recession-led budget cuts,” said Richard Vancil, vice-president of IDC’s Executive Advisory Group.

“The problem is, many funds and activities aren’t in the right place. It’s our observation that the best CMOs and marketing leaders are still making progress this year, and they are doing so through re-direction and re-deployment of existing budgets. They are moving money from product-line marketing to streamlined thematic campaigns.

“They are creating more shared services that remove redundancy in complex marketing organisations. And this year, sales enablement has been a major trend that can reduce expenses while boosting productivity,” Vancil said.

The 2009 recession is also causing significant organisational pressure on tech marketing and sales organisations, Vancil noted.

“The root cause of organisational change is the continued dysfunction between marketing and sales; where money is wasted and processes are sloppy. And so, in 2009, at many companies, we are seeing the creation of a more unified sales and marketing organisation.

“In some cases, global marketing and sales are now organisationally united under one executive with the title of ‘Chief Sales and Marketing Officer’ or ‘SVP of WW Field Operations.’

“This is a cause for concern for some CMOs who may be losing power, because those big areas of budget savings and impact that we suggest be identified and executed are really only available when the CMO has influence over all marketing: corporate, product and field,” Vancil warned.

By John Kennedy

Photo: Many marketing executives are feeling organisational pressure this year, IDC analysts say.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years