MarTech Podcast ™ // Marketing + Technology = Business Growth

Episode Summary: "How To Stop Starvation Marketing"

Release Date: November 13, 2024
Host: Guest-hosted by Doug Bell, CMO of Chief Outsiders
Guest: Chris Slocum, Founder at ClarityQuest and Chief Growth Officer at Supreme Group

Introduction to Starvation Marketing

In this insightful episode of the MarTech Podcast™, guest host Doug Bell engages in a compelling conversation with Chris Slocum about the concept of "starvation marketing." Drawing from over 25 years of experience, Chris introduces listeners to the critical issue where marketing departments in B2B technology and healthcare companies receive minimal budget allocations, hindering their ability to drive growth and achieve strategic objectives.

Notable Quote:
"Starvation marketing is putting all the money into R&D and sales, forgetting about marketing until the last minute when it's in crisis mode." – Chris Slocum [03:13]

The Origins and Evolution of Starvation Marketing

Chris traces the origin of the term "starvation marketing" back to his early days as an engineer at Motorola in the 1990s. He observed that Motorola focused heavily on technological advancements while neglecting marketing efforts. This imbalance ultimately led to Motorola being outpaced by competitors like Nokia and Apple, who combined superior technology with robust marketing strategies.

Notable Quote:
"At Motorola, the marketing department was where engineers went to die. It's why I got out of there." – Chris Slocum [07:14]

Impact of Underfunded Marketing Departments

The discussion delves into how systemic undervaluing of marketing persists across economic cycles, especially within B2B tech and healthcare sectors. Chris highlights that many companies founded by technologists or business professionals often lack a holistic view of marketing's potential, relegating it to minimal roles such as trade show booths and basic collateral. This shortsighted approach undermines efforts to measure marketing's return on investment (ROI) and hampers growth.

Notable Quote:
"Even in boom times with low interest rates, I saw a lack of belief from the C-level in what marketing could actually do for their organization." – Chris Slocum [05:46]

The Motorola vs. Nokia vs. Apple Case Study

Doug Bell steers the conversation towards the historical case study of Motorola's decline in the face of Nokia and Apple’s advancements. He underscores the importance of synergizing product innovation with effective marketing, which Motorola failed to achieve. This example serves as a cautionary tale for modern companies to prioritize marketing alongside technological development.

Notable Quote:
"Apple has a fabulous technology and innovation, but they also have equivalently fabulous marketing and brand." – Doug Bell [07:14]

Measuring Marketing ROI and Attribution Challenges

A significant portion of the episode addresses the perennial struggle marketers face in measuring ROI and attributing marketing efforts to revenue outcomes. Chris acknowledges advancements in Martech that facilitate better attribution tracking but emphasizes that data quality remains a critical hurdle. He advocates for stringent CRM data hygiene and fostering a culture where accurate data entry is incentivized and enforced.

Notable Quote:
"Garbage in, garbage out. Good sales CRM data is part of our culture." – Chris Slocum [10:30]

Strategic Allocation of Marketing Budgets

Chris provides actionable insights into how companies should determine their marketing budgets based on industry benchmarks and revenue figures. He references his book, "Stop Starvation: 23 Power Growth Moves for Health, Tech, IT and Biotech Companies," which outlines recommended marketing spend percentages tailored to various verticals.

Notable Quote:
"In pharma biotech, the average marketing spend is around 17% of revenue. For B2B product companies, about 10% is typical." – Chris Slocum [15:24]

Recommended Marketing Spend Benchmarks:

• Pharma/Biotech: ~17%
• Healthcare B2B: 5-10%
• B2B Product Companies: ~10%
• B2B Services: ~8%

Chris emphasizes that these percentages should be adjusted based on factors such as market competitiveness and company size, advocating for a tailored approach rather than a one-size-fits-all model.

Overcoming Systemic Marketing Challenges

The conversation shifts to addressing deeper, systemic issues that perpetuate starvation marketing. Chris stresses the importance of educating C-level executives on the strategic value of marketing and the necessity of integrating marketing initiatives with measurable outcomes. He advocates for regular audits of marketing plans to assess performance and adjust strategies proactively.

Notable Quote:
"You have to put together a plan, A/B test it, measure everything, and then audit the darn thing." – Chris Slocum [14:48]

Conclusion and Future Directions

As the episode wraps up, Doug Bell praises Chris for his actionable strategies and announces a follow-up episode where they will delve deeper into effective marketing strategies for healthcare and life sciences. Chris’s insights aim to empower marketers to advocate for adequate budget allocations and demonstrate their impact through data-driven approaches.

Notable Quote:
"There are case studies showing that companies investing significantly in marketing can achieve 6x ROI and successfully acquire or go public." – Chris Slocum [09:43]

Additional Resources

• Book Mentioned: "Stop Starvation: 23 Power Growth Moves for Health, Tech, IT and Biotech Companies" by Chris Slocum
• Where to Find the Book: Available on Amazon, Barnes and Noble, and other major online retailers.
• Contact Information:
  • Chris Slocum: LinkedIn Profile
  • Doug Bell: LinkedIn Profile, Twitter @MarketAdvocate
  • Supreme Group Website: supremegroup.io

Join the Conversation:
Stay tuned for the next episode where Doug Bell and Chris Slocum will explore effective marketing strategies tailored for the healthcare and life sciences industries. Subscribe to the MarTech Podcast™ on your preferred podcast platform to ensure you don't miss out on future insights and expert discussions.

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• Contact Host: LinkedIn – Benjshap

Final Thoughts:
Christian Slocum's expertise highlights the critical need for balanced budget allocations that recognize marketing as a strategic driver of growth. By overcoming systemic challenges and embracing data-driven marketing practices, companies can avoid the pitfalls of starvation marketing and achieve sustained business success.