Marketing3 Presentation

Feel free to re-use or mash-up this presentation under Creative Commons 2.0 license (non- commercial, attribution) Marketing 3: On Accountability Alain Thys (http://blog.futurelab.net) FUTURELAB

Alain Thys: Jekyll or Hyde ? As a retailer/VC/entrepreneur: Double digit ROI As a marketer: Close to € 100,000,000 spent to date, and very little to show for it FUTURELAB

If you think marketers have an image problem FUTURELAB

FUTURELAB What People Think of Marketers Don’t shoot the messenger 

FUTURELAB Marketers are faddish, irresponsible, … don’t think like business people … more akin to a recalcitrant child … McKinsey & Company, CEO/CMO Survey, 2005

The average tenure of CMOs in consumer markets is 23, 15 or 12 months. FUTURELAB

FUTURELAB Too many marketers have become so specialised that they don’t think in terms of the company’s big picture. Philip Kotler

FUTURELAB Marketers are frivolous and difficult to approach Australian Society of Certified Public Accountants

FUTURELAB Withhold research Take credit for other’s work Lack structure Are always in meetings Work from 10 to 4 Have long lunches Unaccountable, untouchable Seek quick promotions Churn Care about cars, stats and lunch Use jargon Slippery Expensive Cranfield University

\"We can't compete on price. We also can't compete on quality, features or service. That leaves fraud, which I'd like you to call marketing.\" Dilbert’s Boss cc 3.0, Megaqwerty FUTURELAB

FUTURELAB Buy Stormhoek Wine 

FUTURELAB

If you think marketers have an image problem FUTURELAB

The « outsider’s » perspective • Marketing campaigns have unsure or negative ROI • Sales promotions don’t generate sales • Consumers get irritated by advertising • Most new value propositions fail in the market • The campaign presentation never reflects consumer reality • Marketing initiatives overpromise • … • And each year they come up with a new story Marketers need to become more « accountable » for themselves and for the benefit of the business.. FUTURELAB

FUTURELAB The Marketer’s Bushido Changing marketing’s bad image

Insight Respect Integrity Financial Acumen Inclusion Perspective Passion FUTURELAB The Marketer’s Bushido

In spite of all “insights” and research, 95% of consumer products introductions and innovations fail to reach their ROI targets How do you make a difference to someone who has infinite choice? FUTURELAB

FUTURELAB German Traditional Chains vs. Hard discounters McKinsey & Company, Nov 2004

60% of sensory experience of drinking espresso comes from the retail environment (and you lose it when you go home) FUTURELAB

« Best Practice » is Insufficient Insight Product Insight Insight Insight Insight Insight Acting on Insight in emotions, rationalisations and choice drivers at every step of the experience. The Experience IS the Product FUTURELAB

Don’t forget to understand the “influencers”

Real Insight Understand what truly drives and moves me ... and those who influence me ... at every step of the overall experience you offer FUTURELAB

RESPECT FUTURELAB

FUTURELAB http://www.youtube.com/ watch?v=D3qltEtl7H8 RESPECT ??

Don’t treat me like a child “one message doesn’t fit all” FUTURELAB

People don’t fit boxes • 28-34 • Online music, movies & laser hair removal • Modest but dependable disposable income FUTURELAB

To simplify and give meaning: Humans seek patterns, even where there are none

FUTURELAB “It’s the easy way out, and as long as we all do it, we’re fine” Romanian marketer

RESPECT Let go of mindless segmentation Treat markets like “people” Bring back the love And you might get some in return FUTURELAB

perception 80% of CEO’s believe of believe their brand provides a superior customer experience 8 % of their customers agree (Bain & Company) FUTURELAB

We show that we value our customers by serving them well, putting their needs and interests at the center of everything we do. (from the AOL mission statement) FUTURELAB http://www.youtube.com/watch?v=xaaAYVUWP0I

Companies break their promises every single day. Does your business keep yours? FUTURELAB

Breaking promises in a WoM world is suicidal FUTURELAB

But I’m just a marketer FUTURELAB That is not my department …

YES IT IS … Your brand communicates every time it touches a customer. As a marketer you need to manage this communication. This makes you responsible for each “moment of truth” FUTURELAB

Consider Each Moment of Truth as a Brand Expression Source: DAVIS S., LONGORIA T., “Harmonising Your Touchpoints”, Brand Packaging, Jan/Feb 2003 FUTURELAB

In a million channel world, brands whose consumers tell the best stories, win EXPERIENCES - EMOTIONS - STORIES

INTEGRITY Ensure that your brand tells the truth when it makes a promise And when a promise is made make sure it is kept FUTURELAB

A Reminder from Tom http://www.youtube.com/ watch?v=9MaKHxsGZ-A FUTURELAB

Show Me the Money Marketers say “Our advertising generates the branding and strong creative we need to differentiate ourselves in the marketplace.” The CEO/CFO wants to hear… “Our analysis shows us that our € 3 million advertising campaign generated an incremental € 22.3 million in revenue. We can continue to generate ROI up to a € 4.5 million ad spend, generating an additional € 10.6 million in incremental revenue, at which point broad media advertising becomes saturated for our market.” Source: CFO vs. CMO Smackdown, PMD Professional, 2005

A Structural Answer: Multivariate and Agent Based Modeling MEASURE & PREDICT AGENT BASED MODELING Case: Indian Tea company, Greek Telco. Case: US Packaged Consumer Goods Company FUTURELAB

Pragmatism: Focus your money where it matters Average Media Consumption by Week (Europe), 2005 14 IMPACT Source: Nielsen Interactive Europe, 2005 12 10 8 6 4 2 0 es t on ic o s s VD ne k e i us ad am oo in i D er is M az R v B t G In le ag Te M Preference Purchase Repurchase Loyalty Advocacy

Resist Orthodoxy • Booking TV = higher margin • Standard rate-cards are less work • Digital avoidance is easier on the brain • Agency co-operation is inconvenient

FINANCIAL ACUMEN Establish structural measures to assess the financial impact of our marketing initiatives, in terms the business can appreciate. Meanwhile, at least allocate your funds where they generate most impact for the business. In short, show me the money FUTURELAB

Houston, we have a problem 90% of businesses are unable to execute the strategy they have on paper 70% of businesses project performance they will never attain Source: Axon, L. Learning to lead: How Companies Grow Profits by Growing Leaders, Sept 22,2004 Source: Norton, D. Aligning your Strategy to the Customer Value Proposition, 13/9/2005

Only 5% of the workforce understands what the strategy is Source: Norton, D. Aligning your Strategy to the Customer Value Proposition, 13/9/2005

THE MOMENT OF TRUTH Your brand communicates every time it touches a customer. As a marketer you need to manage this communication. This makes you responsible for each “moment of truth” FUTURELAB

YET THEY ARE THE “MOMENT OF TRUTH” FUTURELAB

FUTURELAB Do people “get” your strategy ? What will you do to make it “clear”

INCLUSION Make sure that everyone who needs to deliver the promise you make to the market • Understands this promise • Knows what it means to him/her • Supports this direction • Acts upon it FUTURELAB

FUTURELAB Dreaming of a better future … where there is more to business than making money.

DREAM ON … SHOW ME THE MONEY FUTURELAB

Be responsible AND make money FUTURELAB

Consumer Demand 2008 FUTURELAB

Market Opportunity

PERSPECTIVE Do good for the world and for your business FUTURELAB

FUTURELAB Be the First Penguin that resists threaths & temptation

FUTURELAB The Alternative

http://blog.futurelab.net

Marketing3 Presentation

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