Magic Quadrant for Integrated Marketing Management

31 October 2013 ID:G00252155
Analyst(s): Kimberly Collins, Adam Sarner

VIEW SUMMARY

We evaluate vendors that provide applications that integrate executional, operational and analytical marketing processes. Companies seeking a solution that integrates campaign management, marketing resource management and analytics should review this research.

Market Definition/Description

Integrated marketing management (IMM) represents the marketing strategy, process automation and technologies required to integrate people, processes, campaigns, channels, resources and technologies across the marketing ecosystem. IMM supports closed-loop marketing by integrating operational, executional and analytical marketing processes. The closed-loop process starts at the concept/idea and goes through to planning to resource allocation to creation/project management to piloting to full-scale execution to, ultimately, evaluation and analysis that feeds back into and helps optimize ideas and planning.

IMM emphasizes architectures and platforms for the role-based distribution of information, content and functionality. From a technology perspective, vendors in this market provide an integrated set of marketing functionality that integrates executional, operational and analytical marketing processes. These may not all reside in the same solution, but should be preintegrated if they are not on the same architecture. Clients must assess the architecture and integrated nature of the solutions, as well as the robustness of required functionality.

Magic Quadrant

Figure 1. Magic Quadrant for Integrated Marketing Management
Figure 1.Magic Quadrant for Integrated Marketing Management

Source: Gartner (October 2013)

Vendor Strengths and Cautions

Adobe

Adobe Campaign, formerly Neolane, is considered a Visionary in the 2013 IMM Magic Quadrant. Adobe continues to raise mind share in business-to-consumer (B2C) campaign management and B2B lead management. Consider Adobe Campaign for its focus on integrated campaign management functionality.

Strengths
  • Growth: Before its acquisition by Adobe in 3Q13, Neolane reported revenue of $58 million and year-over-year growth of 40% in 2012. It focuses on North America, Europe and the Asia/Pacific markets.
  • Digital marketing focus: Adobe purchased Neolane in 3Q13. Neolane's offering, now called Adobe Campaign, is a product line among the Adobe Marketing Cloud offerings. Adobe Campaign has the opportunity to complement and combine Adobe's digital marketing strengths in content creation and analytics with its own strengths in orchestrating multichannel campaigns.
  • Stated future road map plans: These include incorporating Adobe Target for testing and machine learning during a campaign process, and incorporating Adobe Media Optimizer, an ad management platform, to find look-alikes based on Adobe Campaign's known segments. These are two areas in which there were no prior shared capabilities before the Neolane acquisition. Additionally, Adobe Campaign will integrate with Adobe Experience Manager to streamline email and landing page creation, personalization, execution, and measurement.
  • Reference feedback: References stated that they selected Adobe Campaign for its integrated solution, vision and innovation for marketing, and robust campaign management functionality.
Cautions
  • Adobe integration: Adobe Campaign has some integrations with Adobe, but not more than other multichannel campaign management (MCCM) vendors. The vendor will need to do a lot of work to build tighter integrations with the other five Marketing Cloud solutions (Analytics, Target, Experience Manager, Social and Media Optimizer), and a more unified architecture and user experience.
  • Lack of a prepackaged marketing resource management (MRM) solution: Adobe Campaign's operational processes are supported as part of its campaign and lead management processes. It does not sell or market a separate MRM solution.
  • Workflow: Several references mentioned complexity in setting up and running workflows, as well as workflow consistency.

Direxxis

Direxxis is a Niche Player, due to its small size, regional execution in North America and focus on local marketing enablement solutions. North American clients looking for an integrated solution to support marketing and sales communications should consider Direxxis.

Strengths
  • Growth: Direxxis reports approximately 30% revenue growth in IMM from 2012 to 2013, with 18 net new clients. It currently has around 75 marketing application customers. Gartner estimates that Direxxis generated between $14 million and $16 million in MRM revenue in 2012.
  • Marketing and sales communications focus: The strength and focus of Direxxis' solution lies in integrating marketing and sales to deliver consistent communications across a number of different channels. Its MRM capabilities are focused predominantly on marketing asset management and fulfillment. Its campaign management functionality supports multiwave, multichannel and multitouch campaigns. Marketing performance management (MPM) enables marketers to track and report performance metrics based on marketing efforts within the system. The platform is built on customer data integration and management technologies, including those for matching and deduping. The platform also automates statistical and predictive modeling to segment and target customers.
  • R&D: Most of the investment for this year has been spent on replatforming the dmEDGE 5.0 solution. The new platform is focused on the front end to modernize and simplify navigation in the user interface, and to make it accessible on laptops, tablets and mobile devices. The underlying architecture remains the same. Direxxis is also moving to a continuous release cycle (instead of quarterly) so that clients can elect to use new capabilities as they are completed and tested. New functional capabilities include: (1) new corporate campaign management features; (2) the ability to create campaign/program bundles; (3) a My Plan dashboard for individual agents; (4) an improved social media module; and (5) the ability for field users to participate in corporate-sponsored digital media campaigns.
  • Solution options, SaaS and pricing: Direxxis has four solution options called "editions" — Group Edition, Professional Edition, Enterprise Edition and Unlimited Edition — as part of dmEDGE 5.0. The dmEDGE solution features a multitenant data architecture, and dmEDGE servers and computing resources are shared among all dmEDGE clients on a server, although each client has its own set of data that remains logically isolated from data that belongs to all other tenants. Data is isolated by storing each client's (tenant's) data in separate databases. Each client has its own dedicated set of application server instances. Pricing is very straightforward for the various editions, so clients can select the one that is most appropriate for their requirements. The pricing model is a user-based SaaS one, with a monthly fee structure based on the number of dmEDGE modules and users required per client.
Cautions
  • Size and geographical focus: Direxxis is one of the smaller vendors evaluated in this Magic Quadrant. It is predominantly focused on the North American market. Its sales and distribution are quite small, with few (six) direct sales resources. To continue to grow, the vendor will need to aggressively expand its direct sales and leverage partners' sales teams.
  • Limited market visibility: Direxxis is one of the lesser-known and lesser-recognized players in this market. It will need to improve its visibility in the market and increase its marketing execution to compete with the larger and better-known players. Further consolidation continues to fuel increased competition from larger and more global IMM vendors, such as Adobe, IBM, Infor, Microsoft, Oracle, SAP, SAS and Teradata.
  • MRM and campaign functionality: For MRM, Direxxis lacks financial management capabilities, and its creative production management capabilities are limited. Although it has added capabilities for centralized, targeted marketing campaigns, these are very basic and lack advanced campaign management features for segmentation, event-triggered marketing and inbound marketing.
  • On-premises deployment option: On-premises deployment is not a standard option. The vendor is a marketing service provider (MSP), as well as a technology provider, and prefers to host its dmEDGE solution in a SaaS model. However, on-premises is a custom option.

IBM

IBM is a Leader for its broad IMM vision, its execution in MCCM and integrated MRM offerings, its developing digital marketing, and its on-demand production management capabilities. IMM capability is part of the vendor's broader plans for its Smarter Commerce initiative.

Strengths
  • Viability: IBM has a global reach, with $104 billion in revenue in 2012, making it one of the larger and more viable vendors in the IMM market.
  • Digital-marketing-focused deployment option: Notable changes in 2012 included the release of IBM cross-channel marketing optimization applications (no longer called Unica), which focused on real-time marketing, marketing performance management and usability. IBM Marketing Center, a SaaS option, exploits Coremetrics and provides email and digital campaigns, site personalization, tracking, and management. IBM purchased Tealeaf Technology for customer experience management and behavioral analysis.
  • Road map for 2013: IBM continues to emphasize real-time, email and digital marketing, and continued integration with the rest of the IBM portfolio. The vendor will focus heavily on marketing performance optimization and full-response (including statistically inferred) attribution management. (Some early components of these plans were originally released in 2012.) In addition, IBM will likely create partnerships with digital marketing providers for paid media capability.
  • Chief marketing officer (CMO) focus: IBM has gained market visibility with its focus and research efforts aimed at CMOs, from a product and service perspective.
  • Breadth of offerings: References mention that the breadth of offerings for IMM is IBM's biggest strength.
Cautions
  • Competition: The vendor must continue to provide and accelerate a leading vision as a digital marketing provider. There is accelerating competition, including from other markets (such as content marketing and Web analytics), gaining mind share and revenue in this area.
  • Robustness of MRM functionality: Although IBM provides a broad solution and has growing market momentum, prospects cite a lack of robust MRM functionality as one of the main reasons for not selecting the vendor for MRM. Compared with other MRM leaders, IBM scores lower with its references on functionality ratings for planning, financial management, creative production management, content management, reporting and dashboards.
  • B2B appeal: Although the vendor has some large B2B clients, many of Gartner's B2B clients state that they do not feel that IBM understands B2B marketing well enough during the initial sales calls, which sometimes removes it from further consideration. IBM does not heavily push or promote its Leads product to B2B prospects, nor does it emphasize it in its IMM story, which would be more appealing for B2B marketers.
  • SaaS offering: Although IBM has SaaS capabilities for areas such as MRM and email marketing, it focuses on offering a hybrid IMM solution that supports multiple functional areas. Clients interested in a SaaS offering will have to evaluate whether the capabilities in its offerings meet their requirements and the degree of integration required if two or more SaaS products would be required.
  • Sales execution and pricing: References that considered IBM but chose an alternative vendor cited poor response to RFPs and presentation of capabilities, as well as pricing, as their top reasons for not selecting IBM. Gartner has received similar feedback from its clients as well.

Infor

Infor is a Challenger for its broad solution, R&D investment and overall investment resources. Companies seeking advanced campaign management and MRM capabilities should consider Infor.

Strengths
  • Broad solution: With its acquisition of Orbis Global, Infor now provides a broad set of IMM capabilities across executional, operational and analytical processes.
  • R&D investment: Infor has had five new releases of Orbis in the nine months since its acquisition. In the past 12 months, it has had 17 releases of Infor Epiphany campaign management to help close gaps with competitors in that area. New capabilities include campaign management integration with Infor Ming.le, improvements in event-triggered campaigns, cloud deployment of inbound marketing, release of Inforce Marketing for lead management, a new social channel and release of Infor Epiphany Social Commerce, a rebuilt user interface (UI) with search and filtering functionality for Infor Orbis, new planning and forecast functionality, improvements in budgeting, improvements to tasks and workflows, new manage work functionality, Orbis-Epiphany integration, rebuilt UI for reporting and analytics, integration of analytics with Infor Ming.le and cloud deployment for analytics, and integration between social commerce and Infor Ming.le. Plans for 2014 include incorporation of big data, a social data advisor, a geo-based marketing advisor, budget planning and approvals, creative showroom improvements, advanced querying functions, deeper integration between Epiphany and Orbis, a completely rebuilt UI, a mobile UI, and continued cloud expansion.
  • Deployment models and pricing: Infor's marketing solutions are available to be deployed on-premises, via the cloud, or hosted by Infor or a third party. Pricing is based on modules and is flexible across capital, term and subscription-based models, with financing available.
  • Future innovation: The vendor will leverage its innovations for marketing from its SoHo Experience project to deliver a next-generation UI, Infor Ming.le for collaboration, Infor Analytics for real-time business intelligence, Infor Motion for its mobile marketing applications, and Infor Intelligent Open Network (ION) for data and process integration. It will also develop industry microsuites and analytics.
Cautions
  • Market perception and visibility: Infor is perceived by clients and prospects as an ERP company. The vendor needs to increase visibility in the market for its marketing applications to become a major player. It will need a more aggressive marketing and sales plan to help it attract attention for its marketing applications, particularly outside its installed base.
  • Multiple products: Infor now has both campaign management and MRM capabilities. However, they are not on the same platform and codebase. Although integration between the products has been accomplished, there are still areas where customers may find the need to further expand integration capabilities among the solutions. Understand if your solution will require integration beyond the work that has already been completed.
  • MCCM and MPM: Clients and prospects state that the campaign management product still needs new features and functionality, particularly in areas of digital marketing like social and mobile, as well as an updated UI to compete with other offerings. Infor still has some work to do to close gaps in campaign management. The vendor does not have as strong a vision for MPM compared with some of the leading IMM vendors. Infor has some catching up to do in marketing analytics and performance management.
  • Market momentum: Although we see some deals for MRM and campaign management, Gartner does not see the same volume of deals as we do for the Leaders in the market.

Marketo

Marketo is a Visionary in the IMM Magic Quadrant, with B2B lead management capabilities for midsize and large organizations. B2B marketers should consider Marketo as a provider of SaaS IMM focused on enabling the lead process.

Strengths
  • Growth: Marketo's revenue grew substantially in 2012, and it now has more than 2,500 customers in technology and media, business services, and manufacturing, with an approximately 50/50 split for new customers between large enterprises and small or midsize businesses (SMBs). Marketo became a public company in May 2013.
  • 2012 enhancements: Marketo introduced and is now growing its Program Exchange as part of its Marketing Nation. Program Exchange creates a network through which customers can share Marketo programs and access best-practice campaigns. Customers can clone Marketo programs directly within the subscription, reducing manual effort for new campaigns. The vendor completed the integration of social marketing applications, including social sharing, social sign-on, forms, video sharing, polls, referrals and sweepstakes. It launched Marketo Financial Management for forecasting, reallocating budget, and spend- and plan-type functionality.
  • Road map for 2013 to 2014: Marketo released the Customer Engagement engine, and will be releasing support for search engine optimization (SEO) and pay-per-click programs, new predictive analytics capabilities (beginning with lead scoring), expanded mobile functions, and additional native CRM integrations, including SAP (launched), NetSuite and SugarCRM. Marketo will also be releasing a version 1 MRM solution.
  • References: References point to ease of setup, use and expansion as strengths, and continue to score Marketo above average for its lead management product. Clients benefit from the Marketing Nation community. They perceive their Marketo investment as having a high ROI.
Cautions
  • Salesforce.com: Marketo is dependent on salesforce.com, with more than 80% (a Gartner estimate) of its customers using it. Marketo has partnerships with Microsoft (Dynamics CRM), SAP and other technology partners, but could be exposed as salesforce.com expands its own lead management capabilities.
  • Enterprise reach: About half of Marketo's customers are SMBs. The vendor continues to build its enterprise customer base, but large organizations should assess their product needs, particularly around adjacent marketing application segments in which Marketo may not participate, and should identify Marketo and partner resource availability against the scope of their requirements.
  • Customer service: References give customer support mixed reviews — good service is available, although it can be slow.
  • Lack of robust MRM: Marketo does not sell an MRM solution separately to the market. So, clients looking for robust MRM capabilities will need to consider alternatives. Marketo is working on a set of version 1 MRM functionality, but these are mainly meant to augment its lead management. The initial focus on MRM was on financial management released in 2013, with the next release focused on planning (marketing calendars).

Microsoft

Microsoft is a Niche Player for its broad integrated marketing platform, strong MRM solution, North American traction and growing client interest. Midmarket companies looking for a broad set of integrated MRM, campaign management, lead management and advertising capabilities with a strong focus on MRM should consider the Microsoft Dynamics offering.

Strengths
  • Focus: Microsoft has articulated a broad vision for IMM that includes MRM, campaign management and broadcast media in a cloud-based environment. The vision for IMM is effective marketing management combined with multichannel customer engagement in a data-driven, customer-focused approach. This vision is potentially game-changing for the midmarket, which prefers an integrated solution from one vendor across operational, executional and analytical capabilities. Most solutions in this market have been narrowly focused on executional processes, such as lead management in a B2B marketing environment. Although strong in MRM, Microsoft will have to execute at a fast pace in campaign management to close numerous gaps with competitors to fully achieve its IMM vision.
  • Functional breadth: Microsoft Dynamics provides capabilities for MRM, campaign management, lead management, and advertising/media planning and promotion. Microsoft is one of the few IMM vendors with media-planning capabilities for broadcast (radio/TV), print (newspaper, magazine, direct mail inserts), outdoor, social and digital media, including search engine marketing and online advertising.
  • R&D investment: Microsoft has scaled the development team to six times the size of the MarketingPilot team at the time of that acquisition to accelerate product development. MarketingPilot 15 (known as Gemini) includes a new and consistent user experience and interface (process area hierarchy, streamlined navigation, role-based information for user), CRM integration to Microsoft Dynamics (master data integration for account and contact information, transactional data integration for campaigns, leads, email marketing, behavioral data, tasks, and opportunities), improved hardware and infrastructure based on Microsoft technologies, and meets Microsoft compliance. Planned 2014 enhancements in Microsoft's IMM solution include: (1) extending global reach; (2) scaling the online service by making it Microsoft-compliant and moving the solution to the Microsoft data; (3) tighter integration with Microsoft Dynamics CRM; (4) improved campaign and lead management capabilities; and (5) collaborative marketing with Yammer integration.
  • Deployment options: Microsoft supports cloud-based deployments of its foundational MarketingPilot application, which includes MRM functionality. It does the hosting for its solutions. Its Akela Marketing Cloud solution is a multitenant, cloud-based solution, and functionality includes campaign and lead management and media planning. Microsoft is working to bring the MarketingPilot platform up to Microsoft standards and to extend it to several new languages in 2014, when a full multitenant SaaS solution is planned for availability.
Cautions
  • Geographic availability: MarketingPilot was predominantly focused on the North American market. Although the Microsoft acquisition will bring MarketingPilot scale over time, it will need to extend its language support and train resources to sell, service and implement the product in different regions. Microsoft will begin extending the capabilities to 17 countries in 2014 with 10 languages. Global prospects should carefully assess the capabilities of the vendor to support their regions of deployment.
  • Campaign management and analytics: Microsoft has numerous gaps it must close in campaign and lead management functionality and advanced analytics to be competitive in the market. In general, its campaign management and analytics capabilities are less robust than its competitors. Gartner estimates that it will take the vendor at least a year, based on current aggressive road maps, to close gaps with midmarket competitors. To move upstream to larger clients, it will need to greatly improve capabilities in this area to be competitive.
  • R&D balance: Microsoft has certainly scaled its product development since the acquisition of MarketingPilot. However, it has numerous gaps in campaign and lead management and analytics that will require investment. It also has to make the MarketingPilot architecture fully Microsoft-compliant and localizable. Integration with various Microsoft applications, such as Dynamics, SharePoint, Yammer, Skype and Lync, is also of interest. Balancing investments in functionality, architecture and integration, while delivering on schedule, can be difficult, even with a large development team. Microsoft could also make another acquisition in an area such as campaign management, which would accelerate functionality investments, but would likely delay integration. There has been some turnover in former MarketingPilot personnel, so the new team will need to ramp up fast and create a more detailed road map.
  • Market execution: Although there is growing interest from the Microsoft client and partner base in its newly acquired marketing capabilities, we have seen little traction beyond MRM in North America when it comes to actual deals. Microsoft will need to accelerate its efforts in marketing and sales to maintain the interest and buy-in of its executives in the importance of investing in marketing applications.

Oracle

Oracle is a Challenger for its focus on multichannel campaign management, loyalty management and industry-specific marketing capabilities. Consider this vendor for its integration into the broader Siebel CRM suite.

Strengths
  • Growth: Oracle reports that Siebel Marketing's licensed revenue continued to grow in 2012, with stronger performance in Europe and the Asia/Pacific region, although growth in the U.S. and Latin America were flat.
  • Loyalty and customer experience approach: Siebel Marketing includes a focus on an enhanced customer experience via multichannel engagement. Siebel offers capabilities in areas such as social marketing, social listening and engagement, marketing websites, lead management, campaign management, and loyalty management. IMM developments in 2012 were mainly in Social Media Marketing, with capabilities such as socially enabled dynamic emails, social rewards and recognition, and an open UI to enable any browser/any device support for marketing users.
  • Road map: Future plans include Siebel CRM In-Memory Next Best Action, offering an Oracle Engineered System, the integration of Siebel Marketing, and Oracle Eloqua to deliver improved support for digital channels (Web, mobile and Twitter). The vendor also has plans to incorporate paid social media marketing capability using Siebel Marketing segmentation and Oracle Social Cloud to publish campaigns for targeted audiences on social media.
  • References: Customers cite the broad range of functionality, support for complex campaigns, and global support and scalability as key to their success with Oracle Siebel.
Cautions
  • MRM: Oracle's Siebel Marketing solution did not meet the minimum criteria for inclusion in the 2013 MRM Magic Quadrant. Gartner does not see Oracle in MRM deals where campaign management and loyalty management are not also being considered.
  • SaaS: A full set of IMM competencies is not yet available via a SaaS deployment model. Siebel Marketing and Siebel Loyalty Management are hosted by Oracle or on-premises, and are also available as business process outsourcing (BPO) offerings. Clients looking for a B2B lead management SaaS solution should consider Oracle Eloqua instead.
  • Siebel versus multiple products: Many marketing buyers today expect vendors to offer a single integrated solution, not multiple products. Some prospects have cited concerns that multiple Oracle products beyond Siebel (e.g., Oracle WebCenter Sites, Oracle Real-Time Decisions [RTD] and Oracle Customer Hub) are required to complete their IMM requirements. Oracle still needs to do a better job of articulating the IMM road maps for its various products to avoid confusion among clients and prospects.

SAP

SAP is a Leader for its growth, market momentum and vision for integrated marketing. SAP clients and prospects should consider SAP solutions for marketers, as should companies looking for marketing analytics, loyalty management, advanced segmentation and MRM as part of a broader marketing solution.

Strengths
  • Market momentum: SAP reports a 41% year-over-year increase in live marketing customers, with over 60% of new wins coming from B2C industries. Retail, consumer goods and telecom make up 48% of new customer wins. More than 50% of SAP CRM deals include marketing. Most of its marketing go-live customers are in EMEA and North America, but there has been a 53% increase in the Asia/Pacific region.
  • Vision and innovation: SAP's integrated marketing vision is to enable companies to understand customers and their impact on the business (analytics, marketing performance management and dashboards), define marketing strategy (MRM and marketing optimization) and engage to deliver optimal customer experiences (orchestrate personalized interactions and multichannel commerce). Areas of innovation include: (1) analytics powered by SAP Customer Engagement Intelligence Suite on SAP Hana; (2) mobile consumer solutions (SAP Precision Marketing, SAP Customer Loyalty, SAP mPayment/Wallet, SAP Shopping Assistant); (3) multichannel commerce via the hybris acquisition; and (4) new go-to-market partner strategy (Marketing Performance Solution by Accenture and SAP, powered by Hana and the IBM SAP Loyalty Management Solution).
  • Broad solution: SAP provides a broad set of IMM capabilities across campaign management, MRM and marketing analytics. It also has integrations to industry solutions for marketing, such as trade promotion management and channel marketing. It provides a robust set of MRM capabilities and is a Leader in the MRM Magic Quadrant. SAP has closed gaps in its multichannel campaign management solution, where it is a Challenger in the market, by adding more-predictive analytics, real-time marketing, and digital (social and mobile) marketing capabilities.
  • Marketing awareness and thought leadership: SAP is focused on winning the mind share of CMOs. It established its CMO Council several years ago, and has continued to evolve its thought leadership activities both within and outside SAP through speaking engagements, writing/publishing books and online communities (e.g., Customer Edge). SAP Marketing applications now have the vendor's executives behind their CMO positioning, and SAP held its first CMO Executive Summit at Sapphire in 2013. Regional CMO forums extend across multiple SAP events globally.
Cautions
  • Part of a suite solution: Most clients state that they choose SAP for the integrated value proposition of marketing applications with other business applications for CRM, ERP and industries. However, SAP states that some of its recent deals are from net new customers.
  • SaaS solution: Although interest in cloud-based applications is growing, most clients have deployed on-premises or hosted solutions. Solutions and functionalities are available in the SaaS model. However, SaaS marketing capabilities are spread across different integrated products (e.g., SAP Social Media Analytics with SAP Cloud for Social Engagement and SAP Jam). SAP is refocusing its cloud strategy for marketing applications. However, the focus is more on hosted than pure SaaS implementations. SAP recently launched its SAP Customer Engagement Intelligence (CEI) suite on Hana, which is offered on-premises or via cloud through SAP Hana Enterprise Cloud. SAP CRM Rapid Deployment Solution has campaign, lead management and some MRM capabilities available as a hosted cloud solution for upper-middle to large enterprise markets. Request road maps for future SaaS capabilities if you're interested only in SaaS deployments.
  • Reliance on partnerships: SAP relies on partnerships for key areas of its integrated marketing solution, such as OpenText for MRM capabilities around marketing asset management and marketing fulfillment, and NetBase for social listening. Partnerships can be risky if they dissolve or if the vendor is acquired by or partners with a competitor. Clients should also evaluate the level of integration between products from SAP compared with those offered in conjunction with partners. Clients have also reported differences in the interface (e.g., between SAP and OpenText).
  • Market perception: Many prospects that are not SAP clients will not consider SAP because they view large vendors as too difficult to engage for a marketing solution. Some believe that, if they are not considering other areas of CRM and ERP, then it does not make sense to pursue SAP as an option for IMM, and will not put SAP on their shortlists. However, SAP has begun to see some momentum for its cloud solutions, like SAP Social Media Analytics and SAP Customer Engagement Intelligence products. SAP has also won some net new clients with SAP Marketing. However, it still needs to work on this large vendor and ERP-centric perception in the market to grow its non-SAP client revenue faster.

SAS

SAS is a Leader in the IMM market for its robust capabilities and market momentum across analytical, executional and operational marketing processes. Clients should consider SAS for its robust IMM capabilities and strong focus on MPM and advanced analytics.

Strengths
  • Breadth of IMM vision and capabilities: SAS provides a robust and broad set of solutions and capabilities across executional, analytical and operational marketing processes, including campaign management, predictive analytics, optimization, MRM, MPM and customer information integration. SAS is also strong in industry solutions in areas such as financial services, hospitality, retail, telecommunications and pharmaceuticals, with solutions that support profitability management, pricing and churn management.
  • Advanced analytics and MPM: SAS continues to have a strong vision and robust set of solutions in this area, and is one of the few IMM vendors with a robust MPM solution that includes advanced capabilities for predictive modeling and optimization. Its MPM solution ties together planning, execution and optimization processes using the SAS platform and portal. SAS supports advanced analytical capabilities for marketing mix optimization, as well as media planning/optimization for pricing, promotion and placement.
  • Cloud solutions: SAS will soon offer clients the ability to select and configure specific applications from the IMM portfolio that can be hosted in a single-tenant model through SAS App Central via either a private or public cloud. It is also working on its multitenant SaaS solution for SAS Marketing Cloud, which is integrated with SAS Marketing Hub for multichannel marketing.
  • R&D: SAS continues to make significant investments in its marketing solutions, with new features and capabilities available almost every quarter. Focus for the Customer Intelligence suite in the second half of 2013 has centered on improvements to SAS Marketing Operations Management, SAS Social Media Analytics, SAS Campaign Management, SAS Real-Time Decision Manager, SAS Digital Marketing, SAS Marketing Optimization, SAS Adaptive Customer Experience, SAS Conversation Center, SAS Marketing Performance Management and SAS Customer Analytics for Industries. Plans for 2014 include additional enhancements to SAS Marketing Operations Management, SAS Social Media Analytics, SAS Conversation Center, SAS Campaign Management, SAS Real-Time Decision Manager, SAS Digital Marketing, SAS Marketing Optimization, SAS Adaptive Customer Experience, SAS Marketing Performance Management and SAS Customer Analytics for Industries, as well as new capabilities for audience intelligence and real-time, event-driven marketing. SAS is also in the process of integrating its MRM solution, acquired from Assetlink, into the common SAS architecture for Customer Intelligence.
Cautions
  • MRM execution: The MRM solution seems to lag behind other solutions in IMM sales. Historically, campaign management, analytics and social media solutions have predominated. SAS has staffed up around MRM recently and, based on prospect feedback from Gartner clients, there is still a bit of confusion in the market from a business perspective regarding its acquired Assetlink MRM capabilities. References and prospects cite that salespeople aren't always able to adequately demonstrate the solution's true capabilities. Buyers should ensure that an MRM specialist from SAS is involved in their sales processes to ensure that market dynamics and other MRM factors are fully considered.
  • SaaS/multitenant momentum: Although SAS has a number of SaaS options for its marketing solutions, SaaS momentum in key areas like campaign management remains slow. We have seen momentum in tactical areas, such as social media analytics and MRM.
  • B2B and midmarket focus: The vendor's strong focus on campaign management and advanced analytics primarily appeals to large, B2C companies. It is gaining some B2B traction with its MRM solution. However, its lack of a prepackaged lead management solution and full SaaS suite significantly limits its appeal to B2B marketers and the midmarket. B2B and the midmarket are rapidly growing areas of marketing investment. SAS needs to develop a strategy quickly, as other vendors are ahead in this area.
  • Market perception: SAS is predominantly known as an analytics company and, consequently, is less well-known for its campaign management and MRM capabilities. The vendor will need to continue to promote its marketing capabilities beyond its core competency in advanced analytics.

SDL

SDL is a Niche Player in this year's IMM Magic Quadrant. The vendor offers basic campaign management, campaign analytics and digital marketing capabilities, and targets the retail, consumer goods, and travel and leisure industries. Consider SDL particularly if you want hosted campaign management with analytics tools for midmarket campaign management.

Strengths
  • Overall viability: SDL is a large, profitable provider of global information management systems. Gartner estimates its annual MCCM revenue at $30 million.
  • Functionality: SDL Campaign Manager v.2.8 became generally available in the third quarter of 2012, with performance and scalability for campaign audiences of 100 million individuals. Solutions became generally available for the retail, consumer goods, and travel and leisure industries. SDL also worked on integration with its Tridion and Fredhopper offerings for Web personalization, content optimization and offer management. SDL Campaign Manager v.2.9 became generally available in May 2013, adding drop-down multiple-channel selection and an event-triggered API. The SDL Intelligent Marketing Suite has also been available since May, combining SDL's Email Manager, Campaign Manager, Customer Analytics and other partnerships, such as Dynmark for mobile intelligence and EngageSciences for social campaigns.
  • Road map: Plans for 2014 include moving toward a single platform and packaged integration for more simplified deployments.
  • Reference feedback: References mention data repository, email functions and segmentation as top strengths for SDL.
Cautions
  • MRM: SDL is not actively selling MRM offerings, although it is concentrating on planning and scheduling functionality for campaign management activities.
  • Solution migration: SDL is slowly migrating its offerings from Silverlight to HTML5, starting with its email offerings.
  • MSP-centric: The channel partner, not the marketing department, usually selects SDL for IMM. In addition, MSPs tend to view SDL's IMM offerings as lower-cost, operationally focused alternatives to larger offerings.

Teradata

Teradata is a Leader for its strong IMM vision, innovations, broad set of marketing capabilities and continued market execution. Companies should consider Teradata for its robust campaign management and MRM capabilities.

Strengths
  • Vision: Teradata has one of the strongest and broadest visions for IMM. Its current vision focuses on a data-driven marketing-as-a-service approach to fuel analytical, executional and operational processes. Teradata offers a broad set of IMM capabilities across campaign management, MRM and marketing analytics. It has a strong focus on C-level marketing executives and has recently published a book on big data marketing. It has also created a five-step advisory workshop for marketing executives. At the buyer level, it is focusing on industry consultants and a four-phase implementation approach to enable buyers to achieve business value from the solutions.
  • Technology investments: Teradata continues to make substantial investments in its IMM portfolio. Investments in campaign management include integration between real-time interaction manager and digital marketing with campaign management, an enhanced user interface, a data anywhere strategy for segmentation, marketing intelligence visualization capabilities and master data management integration. Digital messaging investments include Cloud + (based on Hadoop) for using content from any Web source in campaigns and more sophisticated personalization, integration with customer interaction manager with single sign-on and optimized for cloud, Magento extensions, message check, and multichannel support, including landing pages and an API integration framework. Investments in MRM include an updated next-generation interactive marketing calendar, a new interface for Spend Central, improved collaboration, enhanced annotations and review capabilities for regulatory environments, and an open architecture with a RESTful API framework. Analytical innovations are derived from the Teradata Aster Discovery Platform using a logical data warehouse approach for integrating and analyzing data and making the results easy to consume, with visualizations using Visual SQL — MapReduce, Aster Lens and Tableau.
  • Industry consultants: Teradata is hiring marketing-focused industry consultants to work with sales and account teams. These industry consultants will also be aligned with Teradata's industry teams. While these services already exist in EMEA, Teradata will be launching them in North America in 4Q13. These industry consultants are intended to help demonstrate the value of the Teradata marketing applications to clients and prospects. These individuals should help alleviate some of the issues that Gartner has seen with the traditional Teradata sales team not understanding and not demonstrating the marketing applications effectively.
  • Customer service and support: Teradata is hiring and training employees for cross-IMM solution support to help clients that are implementing multiple marketing applications, especially with the points of integration between solutions. It also has a critical application management service that provides recommendations for different releases. The vendor is now offering more flexibility in migration so that clients can decide when and where to participate in an a la carte fashion.
Cautions
  • Pricing and statement of work (SOW): Some clients and prospects have complained about pricing being high or the lack of transparency with pricing and in the negotiation process. The SOWs for services have been particularly troublesome from some clients' perspectives, with a lack of detail and transparency in both deliverables and pricing. Pricing (total cost of ownership) was one of the main reasons given by references for the IMM Magic Quadrant for considering, but not selecting, Teradata. Teradata has recently released a new service SOW template that provides a greater level of detail and transparency to the customer.
  • Campaign management confusion and issues: Clients and prospects still find the vendor's campaign management strategy and direction confusing. Clients and prospects do not understand which of the two campaign management products Teradata will go to market with (Teradata's or Aprimo's). Teradata has stated that the product strategy will focus on a next-generation Customer Interaction Manager product, leveraging the Aprimo Relationship Manager (the original Teradata solution) with capabilities for lead management and dialogue management brought in from the former Aprimo campaign management solution, and providing open customer database support for Oracle, SQL Server and Teradata. However, one of the main reasons references stated they selected an alternative vendor was due to lack of integration, particularly between MRM and campaign management. Understand your integration needs between MRM and campaign management and Teradata's strategy to support.
  • Customer service and support: Some clients have complained about an erosion of customer service with the traditional Aprimo applications postacquisition in terms of resolution and knowledge. A few clients have complained about Tier 2 issues taking longer than expected to resolve. Clients also stated that it took longer to find the most appropriate knowledgeable resource, and that even queries on how to use the solution more effectively (which Aprimo had traditionally supported through customer service) were treated as trouble tickets. Some clients have reported that consulting resources were new to Teradata, and not that familiar or comfortable with the solution and implementation methodology. A few clients have turned to alternative resources from process design as a result. Understand Teradata's customer service and support strategy as part of your evaluation.
  • SaaS: While Teradata provides all solutions in the cloud, not all solutions and functionality are available in a multitenant SaaS model. Understand which capabilities are and which are not. Request road maps for future SaaS capabilities if you're interested only in SaaS deployments.

Vendors Added and Dropped

We review and adjust our inclusion criteria for Magic Quadrants and MarketScopes as markets change. As a result of these adjustments, the mix of vendors in any Magic Quadrant or MarketScope may change over time. A vendor appearing in a Magic Quadrant or MarketScope one year and not the next does not necessarily indicate that we have changed our opinion of that vendor. This may be a reflection of a change in the market and, therefore, changed evaluation criteria, or a change of focus by a vendor.

Added

Adobe is now included, through its acquisition of Neolane.

Dropped

Neolane is now included as Adobe.

Inclusion and Exclusion Criteria

The inclusion criteria remain the same as last year. To be included in the 2013 IMM Magic Quadrant, a vendor must meet all the following minimum criteria.

Market Traction and Momentum

  • The vendor has at least 25 production customers for marketing functionality (for example, campaign management, lead management and MRM).
  • The vendor has at least 15 new customers for marketing applications (for example, campaign management, lead management and/or MRM) in the past rolling four quarters.
  • The vendor must be evaluated in either the Magic Quadrant for Multichannel Campaign Management or the Magic Quadrant for Marketing Resource Management to be considered for inclusion.
  • The vendor has at least $15 million in annual revenue in 2011 for its marketing applications.

IMM Product Capabilities

The vendor must have capabilities in each of the process areas: executional, operational and analytical. To be included, the vendor must have at least three or more of the capabilities listed below for each process type (executional and operational), and four or more for analytical processes. These capabilities must be provided by owned solutions, not via partners. Many vendors meet either the executional and analytical criteria or the operational and analytical criteria, but few meet all three process types. Therefore, many vendors do not meet the inclusion criteria due to missing either operational or executional process criteria (for example, they focus on campaign management or MRM, but not both).

Executional Processes: The vendor must support outbound campaign or lead management as well as two or more of the other capabilities listed below:

  • Outbound campaigns
  • Event-triggered marketing
  • Inbound marketing
  • Lead management
  • Segmentation
  • Multichannel support
  • Loyalty management
  • Digital marketing
  • Social marketing
  • Mobile marketing

Operational Processes: The vendor must support three or more of the following capabilities:

  • Planning
  • Budgeting
  • Financial management
  • Creative production and project management
  • Asset and content management
  • Marketing fulfillment

Analytical Processes: The vendor must support four or more of the following capabilities:

  • Reporting
  • Data mining
  • Dashboards and visualization
  • Predictive modeling
  • Campaign/offer optimization
  • Media mix optimization
  • Marketing mix optimization
  • MPM

Evaluation Criteria

Ability to Execute

The evaluation criteria remain the same as last year.

Product/Service (High): Breadth and depth of product capabilities and product architecture are among the key differentiators in vendor capabilities, and product/service is one of the most important criteria for selecting a vendor.

Subcriteria include the following set of capabilities:

  • Executional Functionality (30%):
    • Outbound campaigns
    • Event-triggered marketing
    • Inbound marketing
    • Lead management
    • Segmentation
    • Multichannel support
    • Loyalty management
    • Digital marketing
    • Social marketing
    • Mobile marketing
  • Operational Functionality (20%):
    • Planning
    • Budgeting
    • Financial management
    • Creative production and project management
    • Asset and content management
    • Marketing fulfillment
  • Analytical Functionality (10%):
    • Reporting
    • Data mining
    • Dashboards and visualization
    • Predictive modeling
    • Campaign/offer optimization
    • Media mix optimization
    • Marketing mix optimization
    • MPM
  • Architecture and Platform (40%):
    • Workflow
    • Database support
    • Usability
    • Web services and service-oriented architecture (SOA)
    • Configurability
    • Deployment options (on-premises, hosted, SaaS)
    • Integration between process types and modules, and across deployment options

Overall Viability (High): Viability is an important criterion for investing in a strategic vendor to support an integrated marketing platform. Subcriteria include overall financials (45%), marketing-related revenue (30%) and partner strategy (25%).

Sales Execution/Pricing (Medium): This refers to the ability of the vendor to provide global sales and distribution coverage of its IMM solution directly and/or through partnerships. Vendors must also have specific experience selling IMM to the appropriate buying center (marketing and IT), and offer consistent and transparent pricing models and structures. Pricing structures that support both large businesses and SMBs, and both in-house and SaaS-based deployments, are also important. Although less important than product capability or the overall viability of the vendor, other criteria, such as the flexibility of deployment models (on-premises, hosted and on-demand) and pricing, are important client considerations. Subcriteria include flexibility of deployment models (75%) and pricing (25%).

Market Responsiveness and Track Record (High): A key evaluation criterion is the responsiveness of the market to a vendor and its solution, and the customer's experience working with that solution in its geography and industry. The vendor provides validation points for its solution. Vendor experience in the market, particularly an emerging market, is often key to success. Subcriteria include geographic penetration (50%) and industry/vertical penetration (50%).

Marketing Execution (Medium): This refers to the ability of the vendor to consistently generate market demand and awareness of its IMM solution through marketing programs and press visibility. The clarity, quality and creativity that go into this are just as important as the revenue assigned to generate new leads and reinforce/increase brand awareness. This criterion evaluates the vendor's marketing strategy and execution to build recognition for the IMM solution in ways that gain traction for the IMM solution across geographies and industries.

Customer Experience (High): This is an assessment of the aspects related to ensuring that each customer has ongoing success with its IMM deployment. Aspects considered include implementation services and partners, global technical support (direct and via partners), account management, and user groups/panels and customer communities. Each vendor must provide a sufficient number of recent references to prove the ongoing viability and acceptance of its product in the marketplace. This evaluation criterion takes into account customer ratings, reviews and evaluations of the vendor, and its IMM solution (functionality, architecture, usability), implementation services, account management and ongoing customer support. This criterion receives a High rating because the customer experience will be a strong determinant of whether the client will invest more in the vendor's IMM platform in the future.

Operations (Medium): Implementation and support are also relevant considerations during vendor evaluation and can affect an organization's successful implementation. Professional services experience is key to faster implementation. Access to knowledgeable support staff can increase the appropriate, ongoing use of the solution. Subcriteria include customer service and support (50%) and professional services (50%).

Table 1. Ability to Execute Evaluation Criteria

Criteria

Weight

Product or Service

High

Overall Viability

High

Sales Execution/Pricing

Medium

Market Responsiveness/Record

High

Marketing Execution

Medium

Customer Experience

High

Operations

Medium

Source: Gartner (October 2013)

Completeness of Vision

The evaluation criteria remain the same as last year.

Market Understanding (High): A vendor's understanding of the IMM market and its specific value proposition to 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.

Marketing Strategy (Medium): The vendor's marketing strategy is critical to its ability to gain broader recognition for its IMM solutions, and gain the attention of the CMO and other marketing executives.

Sales Strategy (Medium): The vendor's sales strategy is critical to market penetration and global expansion. We assess the go-to-market approach for selling the IMM product and services, both directly and through partnership networks globally. A diverse range of aspects spanning strategic account management to industry expertise/targeting is assessed.

Offering (Product) Strategy (High): Innovation and vision across the breadth and depth of IMM capabilities and architectures are critical to continuing to meet the needs of a maturing market and establishing a platform that all marketing users (roles and functions) can use.

Subcriteria include vision for the following set of capabilities:

  • Executional Functionality (25%):
    • Outbound campaigns
    • Event-triggered marketing
    • Inbound marketing
    • Lead management
    • Segmentation
    • Multichannel support
    • Loyalty management
    • Digital marketing
    • Social marketing
    • Mobile marketing
  • Operational Functionality (25%):
    • Planning
    • Budgeting
    • Financial management
    • Creative production and project management
    • Asset and content management
    • Marketing fulfillment
  • Analytical Functionality (20%):
    • Reporting
    • Data mining
    • Dashboards and visualization
    • Predictive modeling
    • Campaign/offer optimization
    • Media mix optimization
    • Marketing mix optimization
    • MPM
  • Architecture and Platform (30%):
    • Workflow
    • Database support
    • Usability
    • Web services and SOA
    • Configurability
    • Deployment options (on-premises, hosted, SaaS)
    • Integration between process types and modules, and across deployment options

Business Model (Medium): The business model for how a vendor aligns marketing and sales strategies for particular industries and geographies to deliver on its IMM 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 a vendor with the ability to execute on effectively selling those solutions.

Vertical/Industry Strategy (Low): Here, we evaluate the vendor's go-to-market strategy for industries, solution capabilities (product verticalization), industry templates and packaging, and plans for vertical industries.

Innovation (High): This criterion assesses the vendor's innovation in new and emerging areas of IMM, such as process management, knowledge management, collaboration, digital marketing (Web, social, mobile), mobile connectivity, marketing mix optimization, MPM and predictive modeling.

Geographic Strategy (Medium): This criterion assesses the vendor's global understanding of IMM requirements, and its strategy and plans for geographical expansion, including marketing, sales, implementation and customer support.

Table 2. Completeness of Vision Evaluation Criteria

Evaluation Criteria

Weighting

Market Understanding

High

Marketing Strategy

Medium

Sales Strategy

Medium

Offering (Product) Strategy

High

Business Model

Medium

Vertical/Industry Strategy

Low

Innovation

High

Geographic Strategy

Medium

Source: Gartner (October 2013)

Quadrant Descriptions

Leaders

Leaders in the IMM market have clients that have adopted their solutions as the primary vendors and platforms to support most marketing roles and functions. These vendors deliver breadth and depth of integrated marketing functionality. Leaders successfully articulate business propositions that resonate with marketing buyers, particularly CMOs and marketing executives. Emphasis is placed on MPM and process integration across marketing.

Challengers

Challengers in the IMM 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, may not have mobilized their resources to excel in the market segment or may be limited to selling to existing clients.

Visionaries

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. They 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.

Niche Players

Niche Players perform well in a small segment of the IMM market, and may be focused on a specific set of marketing functionality, roles and processes. They may also be focused on certain industry segments, such as B2B or midmarket, or they may have a geographical or regional market focus that limits global adoption. Niche Players are likely to lack breadth of marketing functionality across roles, and to have gaps in broader IMM functionality and platform requirements.

Context

Vision, areas of innovation, product focus and industry focus vary from one vendor to the next. Marketing organizations must ensure that their vision and focus (product and industry) match those of the vendors. Areas of common focus include basic capabilities for campaign management, MRM and analytics. Areas of innovation and differentiation include MPM, advanced analytics, inbound and event-triggered marketing, social and mobile marketing, collaboration, mobile access, marketing asset management, visual workflow, and optimization.

Clients should be aware that solutions from one vendor may not all be integrated. Acquisitions have resulted in different modules and functionality on different architectures and codebases. Some vendors had different codebases prior to acquisitions. Carefully evaluate integration between different solutions and modules, and ask for integration road maps for acquired solutions.

Market Overview

Organizations of all sizes seem to be able to relate to IMM, and the introduction of SaaS players has opened up more opportunities for the SMB market. Although we continue to see a lot of tactical buying around areas such as social, campaign management, analytics and MRM, we are also seeing areas of focused integration among executional, operational and analytical processes. Key areas of interest in integrated marketing include integrating multichannel (offline and online) campaigns, planning and managing the marketing mix across all media and channels, integration between planning and budgeting with campaign management, integrating sales and marketing (lead management), integration of creative planning and marketing fulfillment with asset management, and MPM.

Industry consolidation has continued with Microsoft buying MarketingPilot, Infor buying Orbis Global, Oracle buying Eloqua and Adobe buying Neolane. We expect that consolidation will continue among all sizes of marketing application vendors. Clients need to stay vigilant regarding market consolidation.

The top four reasons that references reported for selecting a vendor included that the vendor provided an integrated solution; that the vendor offered robust campaign management capabilities; its vision and innovation for marketing; and its pricing. Other commonly cited reasons for selecting the vendor included it being viewed as a strategic partner, its robust MRM capabilities, a positive prior experience with the vendor and good quality response to the RFP. References for this Magic Quadrant reported being mostly satisfied with the vendors and the capabilities of their solutions. Most references gave their vendors overall ratings of 4.33 or higher, out of 7.

References also shed light on the deployment models being used for IMM. Forty-four percent of the deployments were on-premises, followed by 55% SaaS (multitenant) and 8% hosted (single tenant). Seventeen percent were a hybrid of on-premises, hosted and SaaS. Most clients used their own resources (85%) for deployment, 44% used the vendors' services for implementation and 21% used at least one external system integrator. Only 11% of references were using the application out of the box. Twenty-five percent of references required customization, 19% required configuration, and 44% required both customization and configuration.

Companies are clearly getting value from their IMM investments. Most references stated that they had achieved or exceeded expected business results with their IMM solutions. Fifty-six percent stated that their business results were as expected, with another 36% stating they had actually exceeded their expected business results. Only 8% had attained results worse than expected.

Evaluation Criteria Definitions

Ability to Execute

Product/Service: Core goods and services offered by the vendor for the defined market. This includes current product/service capabilities, quality, feature sets, skills and so on, whether offered natively or through OEM agreements/partnerships as defined in the market definition and detailed in the subcriteria.

Overall Viability: Viability includes an assessment of the overall organization's financial health, the financial and practical success of the business unit, and the likelihood that the individual business unit will continue investing in the product, will continue offering the product and will advance the state of the art within the organization's portfolio of products.

Sales Execution/Pricing: The vendor's capabilities in all presales activities and the structure that supports them. This includes deal management, pricing and negotiation, presales support, and the overall effectiveness of the sales channel.

Market Responsiveness/Record: Ability to respond, change direction, be flexible and achieve competitive success as opportunities develop, competitors act, customer needs evolve and market dynamics change. This criterion also considers the vendor's history of responsiveness.

Marketing Execution: The clarity, quality, creativity and efficacy of programs designed to deliver the organization's message to influence the market, promote the brand and business, increase awareness of the products, and establish a positive identification with the product/brand and organization in the minds of buyers. This "mind share" can be driven by a combination of publicity, promotional initiatives, thought leadership, word of mouth and sales activities.

Customer Experience: Relationships, products and services/programs that enable clients to be successful with the products evaluated. Specifically, this includes the ways customers receive technical support or account support. This can also include ancillary tools, customer support programs (and the quality thereof), availability of user groups, service-level agreements and so on.

Operations: The ability of the organization to meet its goals and commitments. Factors include the quality of the organizational structure, including skills, experiences, programs, systems and other vehicles that enable the organization to operate effectively and efficiently on an ongoing basis.

Completeness of Vision

Market Understanding: Ability of the vendor to understand buyers' wants and needs and to translate those into products and services. Vendors that show the highest degree of vision listen to and understand buyers' wants and needs, and can shape or enhance those with their added vision.

Marketing Strategy: A clear, differentiated set of messages consistently communicated throughout the organization and externalized through the website, advertising, customer programs and positioning statements.

Sales Strategy: The strategy for selling products that uses the appropriate network of direct and indirect sales, marketing, service, and communication affiliates that extend the scope and depth of market reach, skills, expertise, technologies, services and the customer base.

Offering (Product) Strategy: The vendor's approach to product development and delivery that emphasizes differentiation, functionality, methodology and feature sets as they map to current and future requirements.

Business Model: The soundness and logic of the vendor's underlying business proposition.

Vertical/Industry Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of individual market segments, including vertical markets.

Innovation: Direct, related, complementary and synergistic layouts of resources, expertise or capital for investment, consolidation, defensive or pre-emptive purposes.

Geographic Strategy: The vendor's strategy to direct resources, skills and offerings to meet the specific needs of geographies outside the "home" or native geography, either directly or through partners, channels and subsidiaries as appropriate for that geography and market.