Reflecting On Marketing Accountability

Reflecting On Marketing Accountability - Presentation Transcript

FUTURELAB A Reflection Feel free to re-use or mash-up this On Marketing Accountability presentation under Creative Commons 2.0 licence (non-commercial, attribution)

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 marketing has a corporate image problem FUTURELAB

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

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

If you think marketing has a corporate image problem FUTURELAB

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A Forensic Investigation Who Killed Marketing? Photo by ~billysriotgirl0404 FUTURELAB

Bloody Uncomfortable Confronting Don’t shoot the messenger  FUTURELAB

A Forensic Investigation THE VICTIM THE CRIME SCENE THE VICTIM’S WORLD Accountability to the Business Accountability to the Customer Accountability to the World FUTURELAB

A Forensic Investigation Accountability to the Business: Making Money Which % of Which % time do Sr. Which % of Sales Which % of German marketers define Marketers spend on Promotions are TV advertising clear objectives for their media strategy Unprofitable? campaigns generate their campaigns? (= largest budget item)? negative ROI? 46% 2% 85% 82% WARC, 2007 EMM, 2005 UCLA, 2004 Deutsche Bank, 2004 FUTURELAB

A Forensic Investigation Accountability to the Business: Implement Plans The Reasons: Differing Strategies within the organisation Lack of integrated planning Resistance to Change Unco-operative Retailers Lack of Internal Communication Misalignment between Marketing & Sales Turf Battles Organisational Silos … Source: reveries.com survey, July 2005 – n = 198 US marketers FUTURELAB

A Forensic Investigation Accountability to the Business: Implement ... At All Over 80% of the ROI of any Marketing Strategy/Initiative is left to chance  31% of projects are canceled before completion  53% of projects cost nearly double of original estimates.  only 16% of projects come in time and budget. Source: Management Centre Europe FUTURELAB

A Forensic Investigation Accountability to the Customer Which is the failure Which % of CEO’s Which % of their Which % of Germans rate of US Consumer believe their brand customers actually are irritated by TV Products? provides superior agree? advertising customer experience 95% 80% 8% 78% 88% PVR users adskip ACNielsen, E&Y, 2005 Bain & Company Bain & Company GfK Marktforschung FUTURELAB

A Forensic Investigation Accountability to the World: Environment CASE: 25% of all bottled water in the world crosses national borders. • Fiji – New York : 13,000 km by boat & truck • 50% of wholesale cost = transportation • 1 million bottles/day = own electricity generation in “pristine” Fiji • >50% inhabitants do not have reliable drinking water • Glass bottle = 5x weight of plastic bottles (transport & energy) • 2 liters of water to wash/rinse 1 liter bottle before filling • Truck in CO2 from volcanic springwater in Tuscany FUTURELAB

A Forensic Investigation Accountability to the World: People Abroad At home http://www.youtube.com/watch?v=9uUq http://www.youtube.com/watch?v=grH1g Pj7FLBE K1TpW0 (30 second edit) (45 second edit) FUTURELAB

A Forensic Investigation Accountability to the World: People In Your Communication: Neutrality FUTURELAB

A Forensic Investigation Accountability to the World: The Self Do you really believe in what you do? Or do you wear a mask? FUTURELAB

Who Killed Marketing? SUICIDE FUTURELAB Image: http://snapesluvr.deviantart.com/art/CSI-Springfield-29131429

How can you avoid it happening to you? FUTURELAB

Tom Knows http://www.youtube.com/watch?v=9MaKHxsGZ- A&mode=related&search= FUTURELAB

“Drive” or prepare to “Be Driven” Be Accountable to the business, the customer, the world FUTURELAB

Accountability to the Business Demonstrate Financial ROI BUDGET ALLOCATION MEASURE & PREDICT Case: German insurance company Case: Indian Tea company, Greek Telco. FUTURELAB

Accountability to the Business Make Implementation Happen “Companies with aligned marketing & sales • grow 5.4 % faster • are 38% better at “closing proposals” • churn 36% less of their customers MarketingProfs Benchmark Report 2005 Align employees, agencies, vendors, retailers, … FUTURELAB

Accountability to the Customer Focus Your Business on the Customer Create Meaningful Propositions Customer Delight at all Touchpoints Communicate with Respect, Insight, Passion FUTURELAB

Accountability to the World Demonstrate the Profitability of Caring Life Cycle Assessment Create a win-win Aspire Neutrality FUTURELAB

Accountability to the World Look in the Mirror, Every Day... Challenge what has stopped making sense FUTURELAB

Conclusion: The Tools Exist ... The Choice is Yours Heavy but inescapable to address its image problem, marketing needs to become more accountable ... FUTURELAB

FUTURELAB To experiment with, learn about and act on marketing accountability: info@futurelab.net SEPTEMBER 2007: MARKETING ACCOUNTABILITY EXPERIMENTATION LAB (MAX)