6000 jobs lost in tech marketing – is it any surprise?
Wednesday, November 11, 2009 by Stewart Baines
News from IDC that 6000 technology marketing executives will have lost their jobs by the end of 2009 is hardly a surprise.
You only have to glance at the recent figures from Gartner about 2009 IT spending to see that those that are responsible for marketing, branding and selling kit are going to be in for a rough time. They paint a picture of the IT industry’s “worst year ever”, with worldwide IT spending falling by 5.2% during 2009,with enterprise IT hardest hit, with a fall in spending of 6.9%.
IT services declined during 2009 by 3.6% to $781 billion, global telecom spending was down 4% to $1.9 trillion, software spending fell 2.1% to $197 billion. The biggest kicking was felt in hardware (servers, storage, network equipments, computers, printers) with sales falling 16.5%, to $317 billion.
(Please bear in mind that this time last year during the worst of the economic crisis, Gartner estimated that the worst case, global IT spending would grow at 2.3%. If you don’t remember this bullish optimism, check it out: http://www.gartner.com/it/page.jsp?id=776112 )
So it’s not the fault of marketing departments then? Well, according to IDC, they have contributed to their own demise. Yes, IT vendor marketing budgets will have declined by 8.3% during 2009, the first decrease in year-on-year marketing spend since the dot-com bust of 2001-2002.
But what money has been available has often been poorly spent, with inefficiencies from product-based marketing not being aligned with brand, sales and corporate marketing. IDC recommends more thematic marketing campaigns, and shared services to remove redundancies.
Over the past decade, we have worked with many of the world’s largest (and smaller) IT organisations, and we’ve experienced these inefficiencies first hand. Many of our clients really do understand integrated marketing, and are a pleasure to work with, but others (ex-clients) can be ingredibly disorganised with product, brand, corporate and PR pulling in opposite directions, with completely different messages and timescales. Projects get abandoned because they are not cleared, audiences recieve mixed messages and marketing is the first to be cut when lean times begin. It’s a pretty simple rule for success though – recognise that sales and marketing are inexorably linked, that your brand must be apparent in everything you do, and be committed to communicating your messages when times get harder. Now, more than ever, your customers need you to be confident.
