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World's Most Clueless Marketing Group?

September 11th, 2007 @ 5:30 am

5 Comments

Categories: Blogroll, General, Sales Tips

Tags: Public Relations, Marketing, Problem, Analyst, Gartner Inc., Gartner PR, Geoffrey James

Regular readers of this blog know that I’m critical of marketing groups that don’t pull their weight. I thought it would be interesting to share a recent, real-life experience that, for me, illustrates exactly how absurd some marketing organizations can get.

First some background. As some of you know, I currently get the bulk of my income selling ideas for articles and then writing them. Like every writer, I often work with public relations (PR) groups to arrange interviews with executives and experts. Most of the time, PR folk are helpful because they know that getting their company’s gurus quoted in a business-oriented publication is good publicity for their firm, which translates into higher sales and bigger profits.

Because I often write about high tech issues, I frequently need to interview analysts who cover a particular technology area. And there’s where I sometimes run into problems.

I don’t know if you’re familiar with Gartner, but it’s the world’s largest high tech market research and analysis organization. They sell high-priced market research subscription services, along with special reports and consulting… to the tune of over a billion dollars a year.

Gartner’s ability to make money depends entirely on their analysts being perceived as experts in their respective areas of interest. The primary way to establish this all-important credibility is through getting quoted as an expert in as many publications as possible. (At some of Gartner’s competitors, in fact, analysts are compensated for getting quoted.) It’s therefore vastly in Gartner’s interest to have a PR group that helps writers contact and interview Gartner analysts.

Nevertheless, in the decade or more that I’ve been selling my writing for a living, I have never had Gartner’s PR group get me in touch with an analyst in time to meet a deadline. Not once. In every case, I’ve had to do a last-minute end-run around Gartner PR and contact the analyst on my own.

When writers call Gartner’s main number and ask to speak to an analyst, they’re routed to PR’s voice mail and given a recorded promise of a response within a few days. The half-dozen times that I’ve complied with these instructions, it’s been like dropping a message into a black hole. No response; nada. The other option is email, which most of the time has the same result.

For example, I tried emailing Gartner PR a couple of weeks ago. In this case, I was writing a story for a publication whose readership consists entirely of executives in the electronics industry. These are the very people to whom Gartner sells its reports and the story was about a subject that Gartner had recently issued a press release. Under the circumstances, you’d think that Gartner PR would jump at the opportunity, because this was a case where the publicity could not help but make it easier for Gartner’s reps to sell Gartner’s services.

This time, my email did get a response from a Gartner PR person, who sent me another copy of the press release. However, when I asked to speak with an analyst, I received no response for a few days, then, long after my deadline had passed, a message reading:

Regrettably, I have not been able to find analyst [sic] available for comment on this occasion.. I apologise for any inconvenience. Kindest regards…

What’s absurd about this response is that Gartner employs hundreds of analysts, four of whom were on the record being quoted on this very subject. Furthermore, getting an analyst to talk to reporters is about as difficult as getting a toddler to eat cake for breakfast. Gartner’s analysts know that getting quoted is their bread and butter; only Gartner PR seems to have missed this segment of the “how the analyst business works” meeting.

By the time I received the email from Gartner PR, I had not only already managed to locate and interview two Gartner analysts, but had found the time to write and file the article. Since I found the situation mildly irritating, I sent the PR contact a complaint to the effect that I’ve learned not to depend upon Gartner PR. While I sent the complaint privately to the PR contact, it apparently made its way up the management chain, because it resulted (several days later) in a response from Gartner’s head of communications, which read (in part):

Our global PR team handles more 800 [sic] incoming media requests each month. We endeavor to assist all journalists, but on occasion we can not meet deadlines due to increased workload or limited analyst availability.

He obviously expected me to think something like “Gosh, I’m just one of 800 journalists and those poor folk at Gartner are swamped.” Unfortunately, I know how to do simple mathematics, so I wasn’t particularly impressed. Here’s why:

While 800 requests a month sounds like a lot, Gartner has 3800 employees. If only a quarter of them are analysts (and I suspect the percentage is actually far higher), reporters are therefore requesting less than one interview, per analyst, per month — hardly a burdensome workload on the analysts’ busy schedules.

As for the “increased workload” on the PR group, assuming 22 eight-hour workdays in a month, that’s roughly one request from a reporter every thirteen minutes. A reasonably competent receptionist could manage that level of traffic — and still have time to do the odd typing job. I’ll bet, though, that Gartner’s “global” PR staff consists of dozens of “professionals.” What in God’s name are they actually doing?

But here’s the real irony: this is a company that purports to be qualified to give useful advice to the ultra-brainy billionaires at Microsoft and Dell, but which apparently can’t get its own marketing act together.

According to its most recent financial report, Gartner’s Selling, General and Administrative (SGA) cost consumes fully 40 percent of their gross revenue. That’s a high overhead compared with that of Gartner’s competitors, which means that Gartner is wasting money, big time, somewhere in the sales and marketing function. And based upon what I know about Gartner’s sales pros (who are among the best in the business), it ain’t the feet on the street that’s burning through the cash. Could it be the PR function? Hard to tell, but based upon what I’ve seen it isn’t adding much value to Gartner’s bottom line.

At root, Gartner’s problem is the same I see in company after company — an utter misconception of marketing’s proper role in the corporation. If Gartner PR realized that its primary job is to generate qualified leads (and was compensated for doing so) there would be no question about helping writers get in touch with analysts.

Rather than giving writers the runaround — and then quoting statistics that prove their own ineptitude — Gartner PR would be actively pitching stories, trying to get even more analysts quoted in even more publications. Instead, they’ve become yet another “sales prevention team” that’s actively making it more difficult for Gartner’s reps to sell.

So Gartner PR has my vote for the world’s most clueless marketing group. But I’m sure that there are worse examples out there. Anyone want to share?

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  •  
    1

    jyarmis@...

    09/11/07 | Report as spam

    Gartner PR

    While I wholeheartedly agree with your fundamental premise that Gartner PR is not a top-notch organization, I need to correct a few errors and faulty conclusions in your piece.

    First, it is far from accurate to claim "the primary way to establish this all-important credibility is through getting quoted as an expert in as many publications as possible." In fact, Gartner has done a sufficiently strong job of branding itself that at this point in their evolution, one could make the argument that the primary way to establish credibility in the end user community is just to work at Gartner. Looking back historically (and I was at Gartner from '87-'97), media relationships even then were a love/hate situation. On the one hand, Gartner clearly did benefit from the exposure of its analysts to a broad audience. However, given that clients were paying $10,000 and up to access an analyst's insights, great pains had to be taken so that the insights you were selling to clients didn't appear broadly in the media. Even today if you were to look at press releases issued by Gartner, you'll find that they're either data-oriented (and thus not giving away key insights) or incomplete sensationalisms that draw media attention but don't give away the key insights to the vast media audience.

    I'd further add that while you rant about Gartner PR, you were able to connect with the appropriate analysts without PR's involvement. That's because unlike a product company or even unlike many large consulting firms (where only a few key individuals are empowered to talk to the media), Gartner analysts have (or take) free rein when it comes to media engagements for their own personal and business objectives. It has been said that managing analysts is like herding cats and any PR organization that attempted to regulate the flow of media/analyst interactions would be destined for failure from both sides of the equation. I would instead suggest they've got a good self-regulating mechanism in place (even while I'm not convinced it was a strategic decision). It's kind of like the old Groucho Marx joke "I wouldn't belong to any organization that would have me as a member." Here, those who go through PR are clearly not worthy of any significant support from PR.

    You might then ask "what does Gartner PR do?" I don't know their relationships with senior business publications but if they're managing just a few important relationships while cranking out a volume of press releases that from where I sit get widespread distribution, well, maybe at the end of the day that's all they need to do...

    I know I sound like a Gartner apologist but I'm nothing of the sort. Having spent the last seven years on the other side of the street, trying to help vendors work effectively with Gartner and the other analyst firms, I'm well aware of their (considerable) shortcomings. (That in fact should be something I blog about now that I'm an independent.) However, in this instance, I think you're off base. They're very good at getting the word out. You're not on the priority list at a corporate level but you've figured out how to work around that. (And note to those who are trying to work around PR: firstname.lastname@gartner.com will get you to whom you want to get. Aren't naming conventions grand?!)

    Jonathan

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    2

    billh44

    09/12/07 | Report as spam

    PR?

    I'm afraid, as a PR guy with over 20 years experience, that you do sound like an apologist for the World's Most Clueless Marketing Group (WMCMG).

    Helping reporters is a primary PR function. If you're not doing it, you are a failure. If you're actively disrespecting reporters, you're worse than an idiot ... you have a degree in Communications.

    Being "busy cultivating a few key relationships" is just a bad excuse. It is the kind of hooey PR pitchmen use to differentiate "their firm" from others. ("We have key relationships!") In fact, the best way to cultivate reporters is to give them information. Going to lunch to talk about general subject is expense account abuse.

    I suspect the WMCMG has a constipated management structure in which a simple press release is agonized over to the tune of thousands of dollars. This is appropriate in a major corporation dealing with controversial issues (e.g. an oil company). It is ridiculous in an organization of analysts.

    Everyone has a "love/hate relationship" with the press. The trick is to make the relationship work. I'll bet the PR department at Gartner has a high divorce rate.

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    3

    Geoffrey James, Sales Machine

    09/13/07 | Report as spam

    My Response

    I wanted to think about this comment before responding. Here are my follow-ups to the issues raised:

    Gartner has done a sufficiently strong job of branding itself that at this point in their evolution, one could make the argument that the primary way to establish credibility in the end user community is just to work at Gartner.

    Gartner?s ?branding? is simply a reflection of the fact that its analysts are quoted in the press. Without the quotes, nobody would know Gartner from Adam (or Acme). The branding ?job? that Gartner did was get its analysts quoted, which is the very activity that Gartner PR either blocks or fails to facilitate.

    Given that clients were paying $10,000 and up to access an analyst's insights, great pains had to be taken so that the insights you were selling to clients didn't appear broadly in the media.

    If all that a Gartner analyst has to offer a paying client is something that a journalist can summarize in 1200 word article, then the offering isn?t worth much. Generic insights about markets are dime-a-dozen; hey, even I?ve got some. The analysts are being paid to adapt those insights to specific business situations at specific companies. And those companies are more likely to be convinced to hire Gartner if the press continues to view Gartner analysts as expert sources.

    I'd further add that while you rant about Gartner PR, you were able to connect with the appropriate analysts without PR's involvement; Gartner analysts have (or take) free rein when it comes to media engagements for their own personal and business objectives.

    I don?t want to alarm you, but I can pretty much get anybody on the phone anytime I want. (That's Sales Skills 101 thing.) When I work through a PR group it?s because I want them to make my job easier. In this case, I wasn't sure which analyst would want to comment on the specific aspect of the subject matter. Sure, I found the right person, but I had to do the legwork. I wanted Gartner PR to do it for me.

    Like many journalists, I tend to use Gartner as a last resort unless I already know the analyst's name, simply because trying work with Gartner PR when I?m not sure who?s covering a certain technology or company just isn?t worth the bother. Unless I have a particular source in mind, I?ll call IDC first, every time. IDC may not be as large as Gartner, but they have a PR group that isn?t a waste of office space.

    Those who go through PR are clearly not worthy of any significant support from PR. You might then ask "what does Gartner PR do?" I don't know their relationships with senior business publications but if they're managing just a few important relationships while cranking out a volume of press releases that from where I sit get widespread distribution.

    Gee, they?re focusing on ?senior business publications.? Gosh, I?m so abashed. The publication for which I was writing the article is only read by 60,000 top executives in the electronics business ? the very people who buy large quantities of Gartner?s reports. And I write for BNET, which is the fastest-growing general business website in the world. I guess I?ll just have to crawl back under my rock and wait for Gartner PR, in its infinite wisdom, to decide I?m worthy of being an ?important relationship.?

    You're not on the priority list at a corporate level but you've figured out how to work around that.

    The point here is that journalists shouldn't have to work around a PR group to get their job done. The problem here is that Gartner PR is trying to set the agenda and have a ?priority list? when in fact they need to add value, which they?re not doing. As for the effectiveness of Gartner?s press releases, any bozo can spend $400 on eRelease.com and get picked up in dozens of publications. And most of those releases are as full of Dilbertesque jargon and techno-gobbledegook as an Oracle CRM press release.

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    4

    cjsamuels

    09/13/07 | Report as spam

    RE: World's Most Clueless Marketing Group?

    Wow! What a sad description. It appears that you have been provoked by your experience with The Gartner Group. I'm not sure that this is the best description of their normal approach to folks like you.

    I'm surprised by the details and bet management at the Gartner will be surprised, too.

    My company produces customer-input from communities and I can attest that I have seldom found a PR unit at a client company not ready to work hard to get the story out when we have given them a calendar and materials from customers responses.

    Nevertheless, a revealing story about Gartner.

  •  
    5

    Geoffrey James, Sales Machine

    09/13/07 | Report as spam

    Gartner PR

    Although it may seem that I'm just complaining about Gartner PR because I had a bad experience, my perception of the group is based upon a decade of working with them. And I've tried to encourage them, repeatedly, to make the kind of changes that would allow them to serve the journalism community better. I even took the time to send a detailed list to one of their research fellows, who used to be my boss.

    Over the years, I've heard many other journalists complain; and I've had the Gartner analysts themselves apologize, or just roll their eyes, when the subject of Gartner PR comes up. The reason that I bothered to air my grievances in this blog is that Gartner PR illustrates how, even in a good company, a seriously broken marketing organization can survive for years, continuously sucking profit out of the SG&A costs.

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