Enterprise marketing management (EMM) encompasses the business strategies, process automation and technologies required to effectively operate a marketing department, align resources, execute customer-centric strategies and improve marketing performance. From a technology perspective, EMM is an integrated, enterprisewide platform for marketing, including all roles and functions that support executional, operational and analytical marketing processes.

Vendors offer functionality that supports campaign management and marketing resource management (MRM). Vendors may also offer other capabilities, such as lead management, event management, loyalty management, marketing performance management and industry-specific capabilities. One of the biggest differentiators for vendors in this Magic Quadrant was their vision and approach to marketing performance management, which Gartner expects to become an important driver for adoption of the EMM platform. A future differentiator will become the development of a robust and flexible workflow tool that spans all capabilities on the platform and can link in third-party tools.

Carefully assess the underlying architecture, including platform, database, content/knowledge repository, workflow, business rules and Web services, to support openness, integration capability, configurability, scalability and flexibility. Users must carefully assess a vendor's capabilities, as well as its vision and product road map, against its short- and long-term requirements for marketing automation. Expect to make trade-offs regarding functionality, architecture and usability.

With the recession, few companies made EMM platform investments for the entire marketing function in 2009. However, tactical investments in campaign management, MRM, loyalty management and lead management that are quick to implement and fast to achieve ROI remain strong. Gartner has observed renewed interest in EMM and more technology investments being made and considered during the first half of 2010, compared with all of 2009. There is particularly high interest in software-as-a-service (SaaS) delivery models, midmarket companies and B2B, as well as business-to-business-to-business-or-consumer industry segments. We continue to see tactical integration across certain components of marketing, such as campaign and lead management, campaign and loyalty management, digital marketing and e-commerce, social CRM and marketing, and campaign management and MRM. If EMM investments continue to accelerate through the second half of 2010 and into 2011, then we expect to see the first Leaders fully emerge in the Leaders quadrant in the 2011 update. The acquisition of Unica by IBM, along with the premium price for buying Unica, provide solid evidence that the time for marketing automation and EMM has indeed finally arrived.

B2B industries are more likely to consider EMM as an integrated platform for marketing than are business-to-consumer (B2C) industries. As a latecomer to marketing automation, B2B industries have made fewer investments and are more likely to be focused on an integrated platform from the start. Gartner is seeing more B2C companies that are heavily invested in a variety of tactical marketing technologies looking to consolidate their marketing applications and move to more-integrated platforms with fewer vendors, but this tends to be a slower path, due to the time it takes to reconcile past tactical investments. Although the economy has improved, continued pressure on chief marketing officer (CMO) accountability and marketing budgets is driving increased interest in marketing performance management across all of marketing to measure, plan, manage and optimize the marketing mix, resources and budget. The need for marketing performance management will be a primary driver and accelerator for EMM adoption during the next three years.

Only seven vendors qualify for the EMM Magic Quadrant. Most of these vendors offer modular suites of marketing applications that support a variety of marketing roles and functions, such as campaign management, MRM, customer data mining, e-marketing, lead management, event management and loyalty management. The most-notable vendor trends include a focus on digital marketing, marketing performance management, mobile, loyalty, lead management, collaborative or distributed campaign management, industry-specific solutions and templates, SaaS platforms for delivery, and improved partner strategies and management.

Although most vendors provide an integrated set of marketing modules, not all are written from the same code base and architecture due to industry acquisitions and consolidation. This can affect the level of integration between functional capabilities and roles within marketing. Of critical importance in EMM is the shift from a set of integrated modules built on a common architecture to highly configurable (based on role) functionality components offered as services on an open service-oriented architecture (SOA) with a marketing data model and analytical toolset for measuring marketing performance. Assessing a vendor's vision for this architectural shift to support role-based application delivery is an important criterion for selecting a primary vendor to supply an EMM platform. As industry consolidation continues, we expect a fully integrated suite on a common code base to be an ongoing challenge for vendors.

Alternative delivery models, such as SaaS, are also distinguishing features for these vendors. All vendors offer on-premises solutions — most can be hosted by the vendor or a marketing service provider (MSP) partner. However, not all vendors offer multitenancy, SaaS options. Many of those that offer a SaaS platform do not do so across their entire EMM suite. SaaS is critical to adoption among small and midsize businesses that have lower budgets and fewer resources to manage an on-premises solution. Both Aprimo and Unica released SaaS marketing platforms last year that contained a broader set of integrated marketing functionality.

We expect market consolidation to continue among MRM and campaign management vendors. We expect at least two EMM vendors to make significant MRM purchases during the next two years. We also expect larger vendors to move into the marketing automation space or expand their capabilities for EMM via acquisition. IBM completed its acquisition of Unica in October 2010; this indicates that large companies will continue to enter the market through acquisition.

EMM encompasses the business strategies, process automation and technologies required to effectively operate a marketing department, align resources, execute customer-centric strategies and improve marketing performance. This includes functionality for campaign management, lead management, MRM, loyalty management, event management, industry-specific functionality, marketing performance management and analytics. However, EMM is more than simply the sum of "parts" (such as campaign management, plus MRM). It also emphasizes the architecture and platform for role-based distribution of information, content, functionality, data and analysis for performance management. As a platform, EMM includes a common architecture to support users across the marketing organization. It should support process-level integration (workflow) and not just data-level integration across the suite.

The platform consists of a marketing database and data model, a single content and digital asset management (DAM) repository, a set of workflow tools, a set of analytical tools and dashboards, a common user interface (UI), and, ideally, one code base built on top of a standard, open architecture, such as Java Platform, Enterprise Edition (Java EE) or Microsoft .NET. Critical elements of this platform include SOA and composite application functionality for integration within the suite and with other business applications. Marketing performance management and the ability to make data-driven decisions regarding investments in marketing programs and campaigns is a key benefit for investing in an EMM platform.

To be included in the 2010 EMM Magic Quadrant, a vendor must meet the following minimum criteria:

Market traction and momentum:

• Vendor has at least 25 production customers for marketing applications (for example, campaign management and/or MRM).

• Vendor has at least 12 new customers for marketing applications (for example, campaign management and/or MRM) in the past four rolling quarters.

EMM product capabilities:

• Vendor must (1) meet the minimum criteria for inclusion in the campaign management and MRM Magic Quadrants; or (2) have been evaluated on the campaign management Magic Quadrant and have a generally available MRM solution, but may not yet meet the minimum criteria to be included in the MRM Magic Quadrant; or (3) have been evaluated on the CRM Multichannel Campaign Management Magic Quadrant and have a strong technology partnership with an MRM vendor to deliver a preintegrated EMM solution, but may not yet meet the minimum criteria to be included in the MRM Magic Quadrant.

• Vendor must offer capabilities that support the operational (workflow, business rules, tasks and project management), as well as the analytical (reporting, analysis, predictive modeling and optimization) aspects of EMM.

• Vendor must demonstrate a vision for EMM that includes (1) a broad focus on capabilities that cross the marketing function; (2) role-based delivery of functionality, information and content; (3) flexibility and usability of applications by marketing users; (4) SOAs; and (5) marketing performance management.

No new vendors were added this year.

Infor was dropped because it did not meet the minimum criteria for inclusion.

The criteria for the Ability to Execute in 2010 include:

• Product/Service (High): Because the EMM market is immature, the breadth and depth of product capabilities and product architecture are key differentiators in vendor capabilities, and are among the most important criteria for selecting a vendor. Subcriteria include:

  • Campaign management (30%)

  • MRM (25%)

  • Other marketing solutions/capabilities, such as lead management, loyalty management and event/trade show management (15%)

  • Marketing performance management (5%)

  • Architecture design flexibility or workflow (10%)

  • Application usability or interface design and role-based access (10%)

  • SOA and composite application functionality (5%)

• Overall Viability (Standard): Viability is an important criterion for investing in a strategic vendor to support your enterprise marketing platform. Subcriteria include:

  • Overall financials (50%)

  • Marketing-related revenue (30%)

  • Sales, marketing and partner strategies (20%)

• Sales Execution/Pricing (Low): Although this criterion is less important than product capabilities and the overall viability of the vendor, organizations should consider the ability to purchase marketing capabilities/functionality incrementally to support key processes and look for flexible pricing options. This criterion receives a low weighting.

• Market Responsiveness and Track Record (High): A key evaluation criterion is how responsive the market is to a vendor and its solution, as well as the customer's experience working with the solution in the customer's geography and industry. This criterion provides validation points for the vendor's solution. Vendor experience in the market, particularly an emerging market, often is key to a company's success.

• Marketing Execution (No rating): This is subsumed under the Market Responsiveness and Track Record criterion.

• Customer Experience (No rating): This is subsumed under the Market Responsiveness and Track Record criterion.

• Operations (Standard): Implementation and support are relevant considerations during vendor evaluations, and can affect an organization's successful implementation. Professional service experience is key to faster implementation. Access to knowledgeable support staff can increase the appropriate ongoing use of the solution (see Table 1). Subcriteria include:

  • Customer service and support (50%)

  • Professional services (50%)

The criteria for the Completeness of Vision for 2010 include:

• Market Understanding (High): Marketing vision and innovation is an important criterion for EMM because this is an immature market. A vendor's understanding of the EMM market and its specific value proposition for different sets of marketing users, including the CMO and senior marketing executives, is critical to selecting a vendor with the vision to meet the user requirements of the marketing function. This criterion has the second-highest weighting, behind Offering (Product) Strategy.

• Marketing Strategy (No rating): This is subsumed under the Business Model criterion.

• Sales Strategy (No rating): This is subsumed under the Business Model criterion.

• Offering (Product) Strategy (High): Innovation and vision across the breadth and depth of EMM capabilities and architectures are critical to meeting the needs of a maturing market and to establishing a platform that all marketing users (roles and functions) can employ. Subcriteria include the vendor's vision and road map for:

  • Campaign management (20%)

  • MRM (30%)

  • Vision for other capabilities, such as lead management, loyalty management and event/trade show management (15%)

  • Marketing performance management (15%)

  • Architecture flexibility or workflow (10%)

  • Application usability or interface design and role-based access (5%)

  • SOA and composite application functionality (5%)

• Business Model (Standard): The business model for how a vendor aligns marketing and sales strategies for particular industries and geographies to deliver on its EMM value proposition is an important component of its vision, although less so than market understanding and product capabilities. Market understanding is key to developing the right solutions, while the business model provides vendors with the ability to execute on effectively selling these solutions. This criterion receives a standard weighting.

• Vertical/Industry Strategy (No rating): This is subsumed under the Business Model criterion.

• Innovation (No rating): This is subsumed under the Offering (Product) Strategy criterion.

• Geographic Strategy (No rating): This is subsumed under the Business Model criterion (see Table 2).

Leaders in the EMM market have clients that have adopted their solutions as the primary vendor and platform to support all marketing roles and functions. These vendors deliver breadth and depth of integrated marketing functionality on large, enterprisewide and global platforms that extend across the marketing organization, providing the role-based delivery of information, content and functionality to all marketing roles and functions that support all marketing processes. Leaders successfully articulate business propositions that resonate with marketing buyers, particularly CMOs and marketing executives. Emphasis is placed on marketing performance management and process integration across marketing. Because industry adoption of EMM as a platform for all marketing functions and roles remains low, there are no Leaders in this market, despite the maturing of vendor solutions.

Challengers in the EMM market primarily provide marketing offerings that complement other business applications. These vendors typically offer breadth of functionality on an integrated platform, although often at the expense of depth. The focus is typically on IT buyers, rather than on business users. Challengers may have a diminished understanding of market trends, marketing buyers, and particular marketing processes and roles. They may not be able to effectively articulate their vision or may not have mobilized their resources to excel in the market segment. There are no Challengers in the EMM market.

Visionaries have a strong vision for applying technology and developing a platform to support a wide variety of integrated marketing roles, functions and processes. They tend to have a broad focus on marketing functionality. Although they may have core competencies in certain areas, they may lack depth in others. Visionaries are distinguished by their applications' usability and flexibility, their vision for marketing performance management, and industry-specific marketing capabilities. Visionaries are market thought leaders and innovators for creating a platform for the entire marketing department that have not yet gained broad market penetration and adoption as the primary marketing platform for their visionary capabilities on EMM.

Niche Players perform well in a small segment of the EMM market, and may be focused on a specific set of marketing functionality, roles and processes. Niche Players are likely to lack breadth of marketing functionality across roles, and to have gaps in broader EMM functionality and platform requirements. They may have depth in particular role and process areas. Niche Players may have a limited vision for the broader marketing function, marketing performance management and flexible marketing workflow; however, they may have a good understanding of a few specific marketing roles/functions.

Alterian is a Niche Player for its focus on basic campaign management, MRM and online marketing capabilities. Consider Alterian a midmarket alternative (or for a division of a larger company) if your company doesn't have the appropriate marketing resources to fully leverage on-premises marketing applications.

• Revenue growth: Alterian's revenue has grown more than 40% from 2008 to 2009, with much of the new business coming from the U.S.

• Breadth of functionality: Alterian offers marketing capabilities in campaign management, MRM, Web content management and e-mail marketing. Following the 2009 acquisition of Techrigy for social-media monitoring, in September 2010, Alterian also acquired Intrepid, an international social-media analytics and consultancy company, to enhance its service offering around its social-media capability. Alterian will complement the SM2 listening platform with social-media engagement for execution of campaigns to social-networking sites, such as Facebook and Twitter. In March 2010, Alterian released WebJourney, a Web analytics tool that analyzes and tracks website visitor behavior, as well as pages and assets.

• Partner development: Alterian has a large network of MSPs, including Acxiom, Experian, Epsilon, Harte-Hanks, Merkle, The Allant Group, Donnelley Marketing and KnowledgeBase Marketing. Alterian continues its relationships with professional service providers such as Deloitte and MarketSphere. For campaign management, MSPs typically see Alterian as a lower-cost, operationally focused alternative they can offer to their clients. They do 40% of their business via MSPs.

• Flexibility of deployment options: Although Alterian emphasizes on-premises at client sites or hosted deployments at partner sites, Alterian does host solutions on request. It has hosted e-mail, Web campaign management, MRM and campaign management for its clients. Alterian's MRM solution is multitenant, so users can chose that as an option.

• Usability: References mentioned the need for ease of use overall, including the need for an improved graphical UI (GUI). This is on Alterian's road map for 2010.

• Limited focus on other marketing solutions: Alterian does not provide prepackaged capabilities outside of database marketing and MRM, such as event management or lead management. It has not demonstrated a strong vision for loyalty management, marketing performance management and flexible marketing workflow across its modules.

• Slow adoption of MRM: Adoption of Alterian's MRM solutions remains slower than its campaign management capabilities. It should put more emphasis on its own marketing of its MRM solution, as its MRM functionality tends to be positioned within the context of campaign management and Web content management.

• Integration of core functionality: The MRM and campaign management products are built on different architectures. The MRM solution is based on Microsoft .NET, supports SQL Server 2005 databases and uses Web services to support its APIs. Its campaign management product is client-/server-based. Alterian plans to offer a new customer engagement solution using a browser-based framework on the Microsoft Silverlight architecture. Some of the products remain on separate architectures and are run from separate servers. Clients looking for integrated marketing capabilities should carefully assess integration between the products required, particularly if they are buying direct, rather than via an MSP.

Aprimo is a visionary for its broad marketing focus and suite, its role-based vision, its robust MRM solution, its vision for industry-specific solutions, its use of mobile applications by marketing staff, and its vision of an EMM SaaS platform. It is poised to move more firmly into the Leader's quadrant within a year or two if it continues executing in the market. Consider Aprimo for its strong MRM capabilities and as an integrated platform for EMM.

• Continued growth: Aprimo had approximately $65 million to $70 million in revenue in 2009, up 15% from 2008, and recurring revenue of approximately $40 million in 2009, up 29% from 2008. Aprimo reports that, through 2Q10, recurring revenue is up 33% year over year, and total revenue is up 44% year over year. It reports that it is profitable, has over $25 million in cash and investments on its balance sheet (as of 30 June 2010), and has no debt.

• Breadth and depth of marketing functionality and platform: Aprimo's role-based vision for EMM demonstrates an understanding of the entire marketing function, its value chain and its ecosystem. Aprimo offers a breadth of marketing capabilities across MRM, campaign management, e-mail marketing, lead management, marketing performance management and event management. Aprimo introduced e-mail marketing and integration in its 8.5 release, and is developing industry-focused solutions. Aprimo's latest release features several enhancements, including digital marketing, mobile marketing, and integrated annotations for video, e-mail messages, websites and microsites. Aprimo is also packaging life sciences capabilities inclusive of terminology and functionality to address compliance requirements. It has a strong vision for business process management and marketing workflow.

• Mobile marketing vision: Most vendors focus on mobile as another channel to market directly to customers. However, marketers are still struggling with how to appropriately leverage the mobile device for offers and coupons without annoying its customers. Aprimo's vision has been focused on the use of the mobile device for remote or travelling marketing staff to access internal applications and complete work tasks. Aprimo's mobile applications are accessible via a browser, and support reviews and approvals, task management, access to assets and content with the ability to view and forward, access to customer profiles and past activities, and access to report graphics and data.

• SaaS strategy and deployment options: In 2009, Aprimo released its new EMM SaaS product, Aprimo Marketing Studio On Demand which includes capabilities for MRM, campaign management, e-mail marketing and lead management, including integrations with salesforce.com, Siebel On Demand, Microsoft CRM Dynamics and Omniture EMM, is still available in an on-premises or hosted (third-party) solution via Aprimo Marketing Studio. The on-premises, hosted solution is targeted to clients with complex requirements that want flexibility and a highly customized/configured solution. Industry-specific solutions will be add-ons to the on-premises, hosted solution. The on-demand SaaS solution is for users whose requirements can be met with Aprimo's out-of-the box capabilities, along with configuration.

• Developing partner ecosystem: Aprimo is strengthening its partner strategy and ecosystem, which includes vendors that provide implementation services (e.g., Accenture, Capgemini, CoreMatrix, Acceleration Partners, Datalicious, Velteo, MarketSphere, Crystalloids, MTS Consulting Group, Numeric Analytics and Top Right Partners), MSPs (Acxiom and Harte-Hanks), interactive agencies (RAPP, Digital Cement, Fulcrum, Extraprise, Transcontinental, and Centripetal Media), platform technologies (Microsoft), integration technologies (Boomi and Cast Iron Systems) and business applications (salesforce.com, Adobe [Omniture], Webtrends, Compendium, Return Path, KXEN and Teradata).

• Increased competition: Aprimo faces threats from larger enterprise application vendors as their solutions and the market mature and acquisitions continue, and from smaller vendors offering lower price points and alternatives for entry. We also expect entrance from large print management and document management vendors to increase competition. The market is becoming increasingly crowded. As the consolidation continues, Aprimo will be an attractive acquisition target by larger companies.

• Marketing performance management: Although Aprimo was one of the first vendors to release a solution in this area, it has not invested significantly in it during the past few years. It did make an investment in 2009 to support access to multiple external data sources, to allow its customers to execute reports with both Aprimo and non-Aprimo data. However, other vendors have more aggressively invested in closing the gap between themselves and Aprimo for providing dashboards with key performance indicators (KPIs) and articulating visions that exceed Aprimo's capabilities in this area. Aprimo will need to push more into advanced areas of marketing performance management in the future to maintain its leading visionary status.

• Software partnerships for campaign management: Aprimo has chosen to partner with other companies to fill certain visionary areas in campaign management, such as advanced predictive analytics, in its products. As relationships change or acquisitions occur, Aprimo is forced to change partners in these advanced areas of campaign management. In general, partners have cited difficulties in partnering with Aprimo.

• UI and navigation: References on the previous versions of Aprimo 8.0.xx (Studio 8.5 was released in December 2009) mentioned that improvements were needed around Aprimo's UI navigation and menus. References reported too much cutting and pasting of data fields that should be maintained by the navigation. They also noted a complex upgrade path to later versions.

• Market perceptions must be overcome: Although its basic and advanced campaign offerings continue to improve and win stand-alone deals, Aprimo's mind share comes from its MRM capability and its integration with MCCM. Along with a strong focus on deep MRM comes the perception that Aprimo is only relevant to large enterprises. Aprimo will need to aggressively market its SaaS solution as an EMM platform to the midmarket, and provide midmarket success stories using its on-demand solution.

Oracle (Siebel) is positioned in the Visionaries quadrant for its focus on loyalty management, marketing performance management and industry-specific marketing capabilities. Consider it for its breadth of marketing capabilities, integration into the broader CRM suite, and vision for EMM based on loyalty, enhanced customer experience and optimized operations.

• Growth in marketing: Oracle reports that Siebel Marketing license revenue and deal size continue to grow. Gartner estimates 30% growth in 2009, with its loyalty management offering continuing to be the major draw. Oracle sells Siebel Marketing as a suite of products that most commonly includes campaign, loyalty and lead management, and, to a lesser extent, MRM. Oracle's vision for Siebel EMM centers on driving loyalty for cross-CRM processes that span sales and customer service.

• Breadth of functionality: Oracle Siebel Marketing continues to have one of the broadest sets of capabilities for EMM, including campaign management, MRM, loyalty management, lead management, event management, price management, privacy management and several industry-specific capabilities, such as trade promotion management, market fund development and financial profitability analysis for banking.

• Continued R&D investment: Product updates for releases in 2009 include new loyalty, lead and pricing business intelligence (BI) applications, as well as Siebel Adapter for Oracle Content Management. Siebel has also introduced a loyalty marketing business process outsourcing (BPO) program and pricing. Siebel's road map for Loyalty Marketing includes a new graphical promotion designer, a simplified UI, and the ability to perform promotions based on events or themes for loyalty, such as promotions based on a customer becoming a new father. In addition, expect to see social-monitoring capability in 2010.

• Vision for customer experience marketing operations: The vision for Siebel Marketing includes a focus on customer-centric, multichannel engagement and optimized marketing operations. Siebel's optimized marketing operations vision, in particular, includes the ability to provide role-based and action-oriented marketing performance management, strategic planning and financial management, collaborative production management, and more-flexible marketing process management.

• Depth in MRM: Companies that use Oracle (Siebel) for MRM still primarily select it for integration with the broader Siebel Marketing suite, sales force automation and industry-specific capabilities, such as trade promotion management. There are few Siebel MRM stand-alone deals in which other parts of the Marketing suite are not being considered. The vendor's depth of capabilities in MRM (for example, workflow for production management, detailed financial management and marketing fulfillment beyond partner relationship management) continues to lag best-of-breed MRM vendors. Expect partnerships or potential acquisition in this area.

• No multitenancy SaaS option: Although Oracle now provides hosting for Siebel Marketing and Loyalty via Oracle On Demand, it does not provide an on-demand multitenancy option for its Marketing suite. However, Oracle acquired the intellectual property assets of Market2Lead, a provider of SaaS lead management software. Oracle plans to integrate Market2Lead's technology into the Oracle CRM On Demand SaaS solution, and to release Oracle CRM On Demand for Marketing as a completely SaaS-based option for integrated multichannel demand generation and lead/opportunity management. In the meantime, this may preclude companies with tightened budgets and investment limitations from considering Siebel Marketing, because the on-demand option is more expensive than a pure SaaS model. The vendor does offer term licensing and financing to help companies with tightened budgets that can't afford to make an upfront capital investment.

• Stand-alone marketing deals: Many references reported choosing Siebel because of an existing relationship with the company, rather than choosing it for best-of-breed marketing capability. However, its loyalty capability was the exception. Market and brand perceptions around Siebel CRM as more of a CRM suite than a stand-alone marketing suite limit the number of stand-alone marketing deals for which Siebel CRM is considered. However, Gartner has seen competitive wins against other marketing vendors.

• Usability and calendaring: References reported that Siebel's Marketing UI is too complex for the marketer and needs to be easier to use. References also gave Siebel's calendaring capability a low rating.

SAP is in the Visionaries quadrant for its CMO-level focus, broad marketing vision, loyalty management, collaborative campaign management (distributed partner marketing), marketing performance management and its industry-specific capabilities. Consider SAP if you want to standardize on the SAP platform, plan to integrate your marketing applications with other SAP business applications, plan to integrate campaign and loyalty management, or have industry-specific marketing requirements in consumer packaged goods (CPG), high tech or manufacturing.

• Market momentum: SAP reports that Global CRM license revenue is growing significantly faster than SAP revenue, with strong performance in North America and Latin America. SAP states that it has over 275 customers live with CRM 7.0 and more than 600 customers live with CRM 2007. Approximately 48% of the live CRM customers are using marketing functionality. We expect new functionality, such as loyalty management, to drive sales into new industries for SAP, including retail, financial services and telecommunications.

• Breadth of functionality: SAP has a broad range of capabilities for marketing organizations, including campaign management, loyalty management, high-volume segmentation, MRM, lead management, DAM, mass e-mailing, marketing analytics, marketing performance management and partner channel management. SAP also provides industry-specific marketing capabilities, particularly for CPG, retail and high tech industries, such as trade promotion management, market fund development, coupon management, product development management and channel partner marketing. SAP also provides SAP Real-Time Offer Management, which adds more advanced, real-time decision capability to the product. SAP also offers social-media marketing integrations with Twitter and Facebook. The SAP CRM 7.0 UI has much improved since previous versions.

• Introduction of Solution Packages: SAP is now offering Solution Packages of preconfigured CRM software and services. The marketing standard includes campaign management, segmentation, lead management and reporting. These are delivered at a fixed price and with a time scope of six to eight weeks. For example, clients can pay a subscription price of $35 per user per month or an annual $1,500 license per user. These packages will be attractive to companies in the midmarket, those that are resource-constrained (capital IT budget and IT staff), or those that prefer simple, easy-to-use solutions over complexity and flexibility. The solution is not currently available in a multitenant SaaS model, but can be implemented on-premises or hosted.

• Collaborative campaign management R&D: SAP will launch a new collaborative campaign management solution in 4Q10. The focus of this product is to drive increased collaboration between corporate marketing and partner/distribution networks. The solution will enable corporate marketing to empower partners with marketing processes, expertise and campaigns, as well as corporate marketing to leverage the knowledge and information of its partner network. The solution will enable companies to split target groups across partners, monitor and execute each partner campaign and handle responses.

• Customer-driven innovation: SAP has transformed its marketing vision and products by listening to its customers — marketing leaders, not CIOs. SAP actively leverages its CMO Community, a professional community of CMOs, to provide feedback into product enhancements, as well as to craft its vision based on CMO requirements. This community includes SAP clients and non-SAP clients, and it will help SAP not only with its next-generation products built for marketing users (rather than IT users), but also with building credibility in the market. Social media will be actively leveraged in the user community to gather customer feedback that supports product development and management. SAP has also interviewed CEOs to determine their expectations for their CMOs.

• Part of a suite solution: Although SAP's loyalty management module is gaining traction in new industries, such as retail, there is little visibility for EMM outside of SAP's product, and it is often evaluated as part of an ERP offering. Gartner rarely sees SAP in competitive, best-of-breed campaign management or MRM deals where the client is not already an SAP customer.

• Lack of depth in some marketing areas: In general, the vendor's marketing solutions lack depth, as compared with best-of-breed marketing vendors in some areas of MRM and campaign management, where it remains a Challenger. SAP continues to work to close the gap. Its collaborative campaign management solution is one area in which it is showing innovation, compared with other vendors, and will appeal to business-to-business-to-business-or-consumer companies with partner and distributor networks.

• Weak SaaS strategy: Although SAP offers a SaaS offering for campaign management, including segmentation capability, e-mail marketing, customer attributes, and lead management, customer uptake for SAP's SaaS offerings has been slow. SaaS for EMM will be significant, particularly in the area of MRM (planning, creative production management and marketing fulfillment). Therefore, its on-demand capabilities for marketing are missing the market, and are likely to cost SAP marketing deals.

• Scalability issues for campaign management: The solution has shown scalability for 50 million customer records with a handful of references, with the goal of reaching several hundred million.

• Professional services: References consistently mention the need to have expert capability and strong internal knowledge of the product beyond implementation service help, before and during implementation, to achieve success.

SAS is an EMM visionary for its strong, pioneering vision in marketing performance management, advanced analytics, social-media analytics, industry analytics, and its broad marketing suite across campaign management and MRM. Consider SAS for its integrated suite of solutions for database marketing (taking customer insights into the interaction) and as a platform for EMM, with an emphasis on marketing performance management (planning, financial management, profitability management, pricing and promotion).

• Market momentum: SAS reports that year-to-date sales for Customer Intelligence are up by double digits globally. It is aggressively hiring to keep up with the growth.

• Breadth of EMM capabilities: SAS Customer Intelligence supports campaign management, segmentation, marketing performance management, customer data integration, customer data mining, customer profitability analysis and management, governance and risk management, planning and financial management (MRM), lead management, community marketing, price and promotion optimization, revenue management, media mix and marketing mix optimization, merchandising management, and distributed marketing. SAS has numerous enhancements planned in its next three releases of Customer Intelligence. Most noteworthy are a Web UI refresh, mobile dashboards, real-time workflow capabilities for social-media analytics, a new event-driven marketing solution, a new distributed marketing solution for collaboration between local and central marketing, a new Web-based SAS Workflow Studio, and new interactive advertising optimization.

• Marketing performance management and optimization vision: SAS continues to set the visionary pace in this area, compared with other vendors. Its marketing performance management solution ties together planning, execution and optimization processes using the SAS platform and portal. SAS's solution features analytical competencies that are flexible enough to support top-down or bottom-up marketing planning based on analysis and optimization. SAS supports advanced analytical capabilities for marketing mix optimization, as well as media planning/optimization for pricing, promotion and placement. Analytics and marketing performance management is one of the key strengths of its solution, and often a weaker point for its competition. There are few mature solutions for marketing performance management to date because it is an area of early innovation.

• In-database processing: SAS supports native access to all leading databases (including IBM and Microsoft) and in-database processing, which increases the scalability and decreases the processing time for high data volume analysis (e.g., market basket or offers). The analysis can be done within seconds within the database, whereas it would take hours on the server. Its strong analytics focus differentiates SAS from other EMM vendors.

• Improved partner strategy: Historically, SAS was known to be difficult to partner with, particularly among software vendors. However, SAS has been partnering from more of a co-opetition, rather than a competition perspective during the past 12 to 18 months, and has put an emphasis on improving its partner strategy. Partners in the SAS partner ecosystem include technology partnerships (Netezza, Teradata), software (Air2Web, Assetlink, Return Path, Saepio, Speed-Trap and Sword-Ciboodle), MSPs (Epsilon, IS Solutions, Merkle, New Marketing Labs) and professional services (Accenture, The Allant Group and Amdocs).

• Creative workflow: Although SAS has improved its workflow capabilities for reviews and approvals, they are not comparable to solutions that support pure, creative production management for creative advertising or brand and product managers. We know of few companies that use SAS for creative workflow, and prospects do not tend to shortlist SAS for this particular capability. Clients looking for creative production management should carefully assess whether SAS meets their requirements, and should consider alternative vendors, including SAS's partner Assetlink. SAS is leveraging its Workflow Studio to create more capabilities in this area.

• No lead management solution: SAS does not provide a separate solution for lead management. Rather, lead management capabilities are achieved through the combination and integration of SAS Interaction Management for lead detection and SAS Real-Time Decision Manager for lead routing and execution. SAS provides adapters to integrate with Siebel, Oracle (PeopleSoft), SAP Sales Force Automation and salesforce.com. SAS intends to continue to support clients' lead management needs through more prepackaged offerings, including a revamping of its distributed marketing module. The vendor's new workflow solution could also help speed time to development for more-process-oriented lead management capabilities.

• SaaS strategy and midmarket focus: SAS released a SaaS version of its Campaign Management offering in April 2009. The SaaS offering includes prebuilt analytics, reports and templates for quick access. SaaS for Customer Experience Analytics and SAS Web Analytics are also available. A new SaaS-delivered Social Media Analytics solution was added earlier this year. However, the SAS MRM solution is not available in the SaaS model. The MRM solution is available on-premises, hosted (via SAS and partners) and hybrid (mixed/remote hosting), but does not provide a multitenant SaaS alternative to date. SAS Marketing Mix Advisor is only available via hosting. Therefore, the vision to provide EMM in a SaaS model and to target the midmarket is less clear. With the release of both Aprimo and Unica solutions on a SaaS model, and on their SaaS road maps, puts SAS behind in this area.

• B2B focus: The vendor's strong focus on campaign management and advanced analytics appeals to B2C companies. Its lack of a prepackaged lead management solution and full SaaS suite significantly limits its appeal to B2B marketers. B2B is a rapidly growing area of marketing investment. SAS will need to develop a strategy quickly here as other vendors are ahead in this area.

• Market perception: Most clients and prospects view SAS as an analytics company, and are less aware of its campaign management and MRM capabilities. References considered SAS for power-user-type work with advanced analytic capability, rather than for its strengths in operational campaign management or MRM. SAS will need to continue to promote its marketing capabilities beyond its core competency in advanced analytics.

Teradata is a Niche Player with a strong campaign management solution and a partnership with Assetlink for MRM. Consider Teradata for EMM for its customer analysis and customer-intelligence-driven marketing solutions.

• Strong data-driven vision: Teradata's value proposition and vision for EMM revolves around a customer data-centric view of marketing, driving customer intelligence into multiple channels, with MRM managing processes for enablement. Teradata Enterprise Data Warehouse (EDW) enables this foundation for its single view of the customer to support customer analytics and campaign management solutions with integration to its partner Assetlink for MRM capabilities.

• Strength in campaign management: Teradata provides a broad range of basic and advanced campaign management capabilities for campaign planning and execution, offer management, and communication optimization. It also provides analytical tools and models for customer insights, including relationship pricing, next-best activities, propensity to buy, customer-profitability analysis and propensity to churn. Changes for 2009 included a self-service/distributed marketing module with a configurable UI and a field of objects to deploy to users. Partners can create and/or choose collateral, send for approval, etc. Users can create simple segments, offer collateral and generate outbound campaigns. Teradata also has integrated lead, contact and offer optimization into a single interface, with simulation capability for "what if" analysis. Teradata has partnerships with Attensity for text mining and customer feedback analysis. References consistently give Teradata Relationship Manager (TRM) high marks for scalability and the ability to run large amounts of segments and campaigns.

• Building partnerships: MRM capabilities for planning, budgeting, reporting and resource management are provided via integration with Assetlink's marketing operations management solution. Assetlink runs as a native Teradata application. Although Teradata did not meet the minimal criteria with its rebranded MRM solution for the MRM Magic Quadrant, it has clients using the solution, with more deals in the pipeline. Teradata is also using the workflow from Assetlink to augment its TRM solution. Teradata will continue partnership expansion, which has included vendors such as SAS and StrongMail for e-mail, in addition to its OEM arrangement with NCR, and will include additional vendors, such as KXEN and others.

• Improved midmarket strategy: Teradata offers Teradata Accelerate for Marketing, which is essentially a smaller version of Teradata's data warehouse, which packages TRM with hardware and services. Teradata expects a 60-day implementation time frame and a lower price point.

• Need to invest in Teradata EDW: Companies must invest in Teradata EDW as part of TRM. This limits platform choices for the underlying marketing database. Teradata EDW appeals mostly to large B2C clients, thus limits appeal for smaller clients and B2B industries.

• Breadth of EMM vision: Teradata does not have prepackaged solutions for lead management, event management or loyalty management; therefore, the breadth of its EMM solution is more limited, compared with the visionary vendors in this market. Although Teradata provides an advanced set of analytical tools for marketing, it still does not have a clear vision for marketing performance management, based on different marketing roles.

• Partner risk for MRM: Teradata does not own Assetlink. If Assetlink is acquired by another vendor, particularly one of Teradata's competitors, then clients with integrated campaign management and MRM capabilities could be at long-term risk of solution upgrade and integration issues. Teradata is mitigating some of this risk through more open-integration capabilities, which could provide customers with more options.

• Lack of SaaS/alternative delivery models: Teradata's solutions are deployed primarily on-premises. It does not have a clear strategy for developing on-demand solutions or for cultivating service partners for hosting. This may limit consideration from clients that have capital budgets to make an on-premises purchase, thus limiting client adoption.

• Ease of use: Teradata TRM was built for the power marketing user, and requires substantial skill to use fully. The vendor continues to add functionality to its UI to accommodate the casual user in the next release, slated for the end of 2010.

Unica (IBM) is a visionary for its broad marketing vision, online marketing focus, and plans for marketing performance management and enabling EMM in the midmarket via SaaS. Unica could become one of the first Leaders in the Magic Quadrant during the next one to two years, but that will depend on its continued execution as an IBM company. Consider Unica for its strong campaign management and digital (Internet and e-mail) marketing capabilities, or as an integrated marketing solution for campaign management and MRM.

• Improved revenue growth: Revenue is up in 2010, compared with the same quarters in 2009 for the past three quarters. The quarter ending 30 June 2010 reported $30.7 million, with an annual $127 million run rate. Subscription revenue is up 70% year over year, and perpetual licenses were up 69% year over year.

• Breadth and depth of multichannel campaign management: Unica provides clients in many industries with the broadest range of campaign management capabilities, depending on users' current and growing needs. Unica is also meeting the needs of campaign management departments for augmentation of campaign management with MRM. The vendor has leading capabilities for basic and advanced functionality for campaign management, and offers additional functionality for advanced analytic capabilities, such as predictive analytics, campaign optimization and e-marketing. It has a strong vision for the online channels and its integration to the offline channels. Given IBM's focus on its online channel strategy, we expect this to continue to be a major focus for Unica's product strategy.

• SaaS strategy: In 2009, Unica released Interactive Marketing OnDemand for integrated customer analytics, Web analytics, e-mail and outbound marketing, and Web personalization in a SaaS model. NetInsight has been integrated into the new SaaS solution, but is also still sold separately. Short-term plans will integrate search bid management and online ad management. Unica plans to integrate its Marketing Operations OnDemand platform and code base within the next 12 months, to create a more integrated EMM SaaS solution. This solution will appeal to midmarket customers that prefer usability and simplicity over flexibility and complexity.

• MRM growth and expansion: Unica is continuing to grow its revenue in the MRM market, adding more than 75 new customers. The average deal size for Marketing Operations OnDemand continues to increase. New functionality for its OnDemand solution includes Markup 2.0 capabilities, which add non-PDF document, audio and video markup support. The road map has plans to continue to deliver customer enhancements. The main investment for 2010 will be to merge the Marketing Operations code base into a single OnDemand code base with the other applications (NetInsight, Marketing Operations and Interactive Marketing). This will enable Unica to sell Marketing Operations OnDemand as a stand-alone solution or to bundle it with other on-demand capabilities. Unica partners with Saepio for marketing fulfillment and print capabilities.

• Marketing performance management road map: Although Unica has come later than some of the other vendors to developing a marketing performance management solution, it now has an aggressive vision and road map for developing more-advanced capabilities in this area. Plans call for phased releases, from planning (investment management), response attribution, performance data management and performance analysis/reporting through to optimization.

• MRM challenges continue in some areas: Unica does not offer a marketing fulfillment solution but is partnering with Saepio. Clients and prospects have reported that the MRM workflow is not as robust and easy to use as other MRM solutions, and have cited that as a reason why they did not select Unica. Prospects with calendaring and workflow requirements should evaluate capabilities in version 8.0. Another concern from MRM clients is the ability to address issues with Mac users. In general, clients feel that upgrades and improvements to Unica's MRM products are slow in coming, and rate it lower than its campaign management solution. Initial feedback on version 8 is positive, but Unica will have to continue to invest R&D in MRM to maintain its leadership position in the MRM Magic Quadrant.

• No loyalty points module: Although Unica supports loyalty marketing via its campaign management, event-triggered marketing and MRM capabilities, it does not offer a points accrual/redemption engine. It has no plans to offer a prepackaged points solution, but will continue to rely on integration with other vendors and solutions, such as current customer and partner Groupe Aeroplan, for loyalty points management.

• B2B appeal: Unica's strong focus on online channels, Web analytics and multichannel campaign management appeal more to B2C than B2B clients, although it does have some large B2B clients. Many B2B prospects state that they do not feel Unica understands B2B marketing during the initial sales call, and Unica is often removed from consideration by B2B clients after the initial meeting. Unica does not push or promote its own lead management products, nor does it integrate them well into the EMM story, which would be more appealing for B2B marketers. It does not offer event management capabilities that would add further appeal. Even its SaaS solution is currently targeted to midmarket B2C organizations. However, some of the highest demand for SaaS marketing solutions is in the B2B space, where other vendors are experiencing rapid growth.

• Process-level integration: The vendor that owns the EMM platform will have a vision for business process management and workflow across its different marketing solutions and modules, and will also seek to link in third-party tools at a process level; however, Unica has not demonstrated a strong vision for business process management and workflow across its suite and with other third-party solutions. As mentioned previously, workflow in the MRM suites is often cited as a concern by prospects. However, Unica's acquisition by IBM could present opportunities to leverage IBM's business process management tools to address this requirement.

• Potential market confusion with the IBM acquisition: Gartner expects that the IBM acquisition will cause some disruption and market confusion, per the nature of major acquisitions of this type by large vendors. IBM has made several recent acquisitions. It will take some time for the product strategy and road map to be defined, and for what it means to the market and clients to be made clear. In the meantime, prospects will likely consider alternatives where the future product strategy and road map are more clearly defined. Clients and prospects should carefully monitor Unica's road map and investment plans as part of IBM for its different marketing products and modules.