NATIONAL ASSOCIATION OFELECTRICAL DISTRIBUTORS Maximize Your Marke.ng AdVenture 2012 Sue Smith Professor of Marketing Syracuse University
What can you do in the next 3hours that will help you be more successful next year?
Education & Research Foundation Channel Advantage Partnership Council Maximize Marketing Efforts Best Practices in the Electrical Marketing“The study’s goals are to provide a framework and understanding for Electrical Distribu.on marke.ng execu.ves and managers to pursue marke*ng excellence, op*mize resource alloca*on and measure marke*ng produc*vity and performance.”
Goal for this workshop:• Review study as a Community of Electrical Marketing Professionals• Tap into the experience, expertise and insight of others at the conference• Learn something which will enable each of us to be more successful next year• Make new contacts who might be a future resource or sounding board
“Networking” with a FocusFive Contemporary Marketing Themes Marketing Metrics Digital : Online and Building Social Brands Media Best Practices Collaborative Marketing Marke.ng Excellence
Marketing MetricsFocused Networking Online and Social Media Best Practices Building Brands• Seek out others Collaborativ e Marketing Excellence Marke.ng – with common goals for improvements – who have already solved your problems – who can offer an outside perspective – who want to be collaborators or mentors in your continuous improvement journey – who can help with specific and proven tips to turn ideas into actions
Timing Marketing Metrics8 – 10 Review Study & Network Online and Social Media Building Brands Best Address all 5 themes Practices Pick your priority theme Collaborative Marketing Marke.ng Excellence10 – 10:15 Break10:15 – 11 Deep Dive into your high priority theme Work as a Team to share insights, practices and choose the Best. Implement at least one Best Practice from this workshop next year Develop at least one new relationship that will help you
Tools & Rules• Maximize Marketing Journal – IPAD/tablet, I-phone, notebook/pad• Seek out and have discussions with those you haven’t met yet or don’t know well• Never sit down at the same table or pair up with the same individual twice!
If this were a game it would be• 5 Themes of Marketing “Speed Dating” How many new contacts can you make?• 5 Themes of Marketing Scavenger Hunt How many ideas, insights, practices and tips can you collect? Marketi ng Metrics Online and Buildin Social g Best Brands Media Go for it – there are prizes to win! Practices Collabo Marketi rative ng Marke. Excelle ng nce
Maximize Marketing Journal• Record & count contacts• Record ideas, insights, actions, questions, quotes, tips, how-to’s, watch out for, etc.• Self evaluate your “marketing maturity” level on each theme “1 (nubee) to 5 (expert)
Let’s get started • Market ShareMarketing • ROMI Metrics • Customer Satisfaction
Why measure Market Share?• Fundamental measure of competitiveness• Relative measure to market & competition• Helps you plan ahead or measure past performance• Supports segmentation strategy Market Share is the percentage of market (defined in either units or revenue) accounted for by a specific entity.
Approximately how often do you reviewmarket share? 66% of Respondents regularly review MARKET SHARE 23 % occasionally review and 11% never review it 11% 23% 33% 33%
Market Share: Data & Process • What data do you use for market potential? – DISC 32% - Other 24% – EW Magazine 28% - MSA/Census 13% – Vista 2%• What process do you use? – In house 36% - Rely on Mfrs 22% – Purchase Reports 24% - Rely on Reps 11% • DISC or Vista - Other 7%
Why measure Return on Marketing Investment ?• How what you spend on marketing impacts your profits• Improve productivity and efficiency• Compare alternatives Return on Marketing Investment (ROMI): The contribution attributable to marketing (net of marketing spending), divided by the marketing “invested” or risked.
Approximately how often do you reviewReturn on Marketing Investment? 65% of Respondents regularly review ROMI 20% occasionally review and 15% never review it 15% 20% 31% 34%
ROMI: What & How?• What do you measure ROMI on? – Total Marketing Spend 24% – Specific Campaigns & Promotions 36% – Both 40%• What do you use as returns? – Sales Revenue 36% – Gross Profits 45% – Net profits 19%
Why measure Customer Satisfaction?• Will your customers continue to be your customers?• Focuses entire organization on servicing customer requirements• Drives brand integrity for Distributors who differentiate as a service brand Customer Satisfaction: The number or percentage of total customers, whose reported experience with the firm its products and service levels exceeds specified satisfaction. Best Practice includes willingness to recommend.
Approximately how often do you reviewCustomer Satisfaction? 54% of Respondents regularly review Customer Satisfaction, 36% occasionally review it and 10% never review it 10% 36% 28% 26%
Customer Satisfaction: How? • Regular Top Management visits 69%• Formal Surveys 49%• Monitor Complaints 49%• Customer Councils 14%• Other 7% Note – “check all that apply”
Top 3 Distributor Metrics rated by Manufacturers• My lines’ Year over year Sales• My lines’ Market Share• My New Product Performance 29 % of manufacturers get market share data & consider it very important 60% don’t get it but would see great value in it
What is your organization’s Metrics Maturity Level?1. Newbee – we don’t do any marketing metrics2. Novice – we do some, just learning how3. Basic – we’re functional and improving4. Competent – we do this well5. Expert – we’ve been doing consistently for quite a while and using it for strategic decisions
Ready to Speed Date on Metrics?• Give yourself a metrics score from 1 – 5• 4 & 5’s stand up around the perimeter• 10 minutes for Networking – Time your own conversations• Journal contacts & ideas/practices Happy Best Practice Hunting! Hope you make some new friends!
Metrics Conversation Starters• Market Share, ROMI, Customer Satisfaction – Who does it well? Who wants to do it better? • What’s your organization’s maturity level? – Tips about how you do it? • Which Data? What’s your Process? Implementation? – What’s different since you started measuring? – What would you like to improve? – How does your organization react? – Dig into both Manufacturer and Distributor perspectives
Sit down at the nearest (new) table for Theme 2 • Do brands matter? • What defines your Brand brand?Strategy • How do you manage it?
Distributor Leadership clearly understands (91%) the importance of building a strong brand identity1%1% 7% 32% 59% The concept of Brand as our identity and reputation is very important to our leadership team.
Whose Brand Matters? Customer’s Buying Decision Distributors Manufacturers Equal 63% 63% Distributor Brand 25% 4% more important Manufacturer Brand 5% 28% more important Neither maRer – 7% 5% mostly price/delivery
Distributors have Service Brands Brand identity most often defined around1) Commitment to Customer 2) Product Knowledge and 3) Inventory # of Distributors selecting in top 3Of the following elements that might differentiate you from competition, choose the top 3 in order of importance for your brand identity.
Brand Management Top performance for documented Graphic Standards Lowest performance for Brand Positioning Statement Mean Performance Rating: 5 = Excellent; 1= PoorRegarding brand management , rate on a scale of 1 - 5 (1 = poor, and 5 = excellent) how well you achieve these brand practices.
Ready to Speed Date on Brand?• Distributors stand the perimeter – Manufacturers on the inside• Speed date for 10 minutes• Journal your contacts & concepts Happy Best Practice Hunting! Hope you make some new friends!
Brand Conversation StartersIntroduce your brand to your “dates” as if introducing a friendDoes everyone is your organization share a common understanding of what your brand stands for? What about your customers? How do you know?How do you teach your brand to new employees?Do you have a Brand Standard? How has it helped you manage your brand?Do you have Brand Positioning Statement?
Sit down at the nearest (new) table for Theme 3 • LeveragingCollaborative Distributor / Marketing Manufacturer’s Strength
Collaboration is essential to Marketing Effectiveness & Efficiency 94% of Distributors 98% of Manufacturers The level and quality of collaboration between manufacturers anddistributors is a major factor in the effectiveness of a Distributor’s marketing programs.
Sales Teams & Communication Top factors in CollaborationDistributors ManufacturersRate the Importance of these factors to how well Distributors and Manufacturers work together.
Distributors see room for manufacturers to improveIndicate in general how satisfied you are with your manufacturers’ performance.
Manufacturers see room for distributors to improve N = 112 -‐ 117 Indicate in general how satisfied you are with your distributors’ performance.
Distributors rate Ease of Use of Coop programs #1 driver of Marketing Efficiency! # of Distributors ranking 1,2 or 3 Some manufacturers are easier and more efficient in terms of supporting your marketing efforts. Select the top 3 factors important to your efficiency.
Manufacturers’ view of what drives Distributor marketing effectiveness• Execute well and have good metrics• Have a very strong marke.ng dept• They have their own marketing departments and allocate the funds where it is needed. Have dedicated resources to manage the use of the funds• Spend more strategically, have opportunities for richer more robust programs• They invest in activities that specifically generate incremental sales for both the distributor and our company.• They actually use the funds to market our products, run promotions, hold counter days and other training events. We find that a good portion of funds go unused or will be spent on activities with a lower ROI.• They utilize these funds more directly on our brand and product line versus lumping in all manufacturers into one. • Focused marketing strategy which yields better marketing plan for the year.• Top to boRom organiza.onal commitment to innova.ve marke.ng ini.a.ves. • Drive sales through speciﬁc promo.onal ac.vi.es rather than general events like golf ou.ngs, trip sponsorships, etc. What do those distributors who receive a higher proportion of your marketing funds do differently than the rest?
Ready to Speed Date on Collaboration?• Manufacturers stand up around the perimeter• Distributors stay in the inside• Speed date for 10 minutes• Journal your contacts & concepts Happy Best Practice Hunting! Hope you make some new friends!
Collaboration Conversation Starters• How do you encourage communication at all levels?• Share examples of excellent joint planning or achieving true collaboration?• Discuss role of marketing groups in fostering collaboration, follow through and results.• What can be done to mesh marketing calendars more effectively? And be ready for Q1?• Where are the metrics gaps which manufacturers seek? How can this be remedied?• What about accountability and resources – how to insure there is true commitment to plans?• Best way to pick your partners?
Sit down at the nearest (new) table for Theme 4 • Technology’s Digital potential to Marketing Maximize Marketing
Digital Technology will maximize marketing in many ways…• Distributors Direct Marketing to Customers – Email , social media , blogs, web sites• Distributors & Manufacturers arming Sales Forces with Selling Tools – Electronic catalogs, brochures, ads, sales & customer training – Application and product selection guides• Increased metrics which accompanies digital media• Mobility – on the job site, at the sales call• Self-serve 24 x 7 for product support, marketing material, and order processing, transactional data
Websites and direct email are the most actively used internet based marketing tools, followed by ecommerce. # of Distributors Actively Using N= 184 Of the following internet based marketing tools, please describe your level of use.
Many distributors have plans for Mobile Apps # of Distributors not yet using with plans to in the future N= 184 Of the following internet based marketing tools, please describe your level of use.
Interesting phenomena: Distributors tools in place yet they are not actively using them # of Distributors not actively using tools they haveOf the following internet based marketing tools, please describe your level of use.
Product info, marketing collateral and sales training provided on manufacturers’ web increases efficiency 89% 72% 73% 18% 66% 17% 24% 2% With regard to distributors using our website to maximize their marketing effectiveness, our website:
Manufacturers are optimizing websites for tablets and smart phones % of mfrs N = 124 Choose the statement that best describes how you provide digital information for use by your distributors’ sales force.
Distributor & Manufacturer Sales forces rapidly becoming mobile-equipped Distributor Manufacturer Smart Phones 51% 48% Tablets 4% 2% Both SP’s and Tablets 25% 28% Plan to within next year 8% 14% No plans for mobile 11% 8% devices
Ready to Speed Date on Digital Marketing?• Give yourself a digital score from 1 – 5 1. Newbee – we don’t do any digital marketing 2. Novice – we do some, not actively engaged 3. Basic – we’re beginning to find valuable applications & uses 4. Competent – we do some digital well, we are actively engaged and learning 5. Expert – we’ve focused on digital and are actively using for many purposes• 4 & 5’s stand up around the perimeter• Speed date for 10 minutes• Journal your contacts & concepts Happy Best Practice Hunting! Hope you make some new friends!
Digital Conversation Starters• Share Best Practices – specific examples of good marketing applications (goals/results): – social media (facebook, twitter, lindedin, You tube ) – Mobile apps – digital program management (loyalty?) – Email campaigns/ with metrics – Websites optimized for customer needs – Using SEO to find new customers – Crm providing tools or metrics – Driving efficiencies or cost reductions through digital applications
Sit down at the nearest (new) table for Theme 5Marketing • Marketing Roles &Excellence Goals
What is Marketing? Crea;ng Customer value Value and beneﬁcial Listen & rela;onships Respond Customer A B Delivering Communica;ng Value Value Source – Essentials of Marketing; Lamb, Hair, McDaniel
Marketing Role: drive growth & profitability 62% of Distributors 80% of Manufacturers Choose the statement that best describes the marketing function in your organization
Distributor Marketing Managers most often in Advisory Role Marketing Role defined as Customer Insights & Managing the 4P’s # of Distributors Which of the following activities is your marketing department involved with?
Manufacturers Marketing Managers more often a Main Driver Marketing Role defined as Customer Insights & Managing the 4P’s % of manufacturers Which of the following activities is your marketing department involved with?
Distributor Marketing Goals:Building loyal customer relationships & providing the sales force with effective selling tools Priority : high = 10; low = 1 Marketing programs are developed to achieve many different objectives. From the list of objectives indicate your high, medium and low priorities.
Manufacturer Marketing Goals:New Product Introductions and Distributor Loyalty 0 = not an objec.ve, 1 = low priority, 10 = high priority Marketing programs are developed to achieve many different objectives.From this list of objectives indicate your high, medium and low priorities.
Distributors conduct a wide range of marketing activitiesCounter Days & Trade shows, Customer Training and Customer Events are most common # of Distributors N = 190 From the list of marketing promotional activities below, check all the ones that you do.
Distributors believe Customer Training yields the highest ROI From the list of marketing promotional activities that you do, select the one that you believe yields the highest ROI (return on your marketing investment)
Even higher percent of Manufacturers believe Customer Training yields the highest ROI No other activity comes close From the list of distributor promotional activities that you support financially, select the one you believe yields the highest ROI.
Ready to Speed Date on Roles & Goals?• Speed date for 10 minutes• Journal your contacts & concepts Happy Best Practice Hunting! Hope you make some new friends!
Roles & Goals Conversation Starters• How is marketing defined in your organization?• How many of the 4P’s does marketing do? As a driver? As an advisor?• Do roles need to change in any way to maximize marketing?• What are your primary marketing goals?• Which marketing activities do you do?• Should there be more variety among marketing activities?• Which activity do you believe yields the highest ROI? How do you know?
15 minute BreakPick a theme for the Deep Dive (your priority forimprovement next year)When you come back, sit at a new table by thetheme you selectedYou can keep networking on break!
“Deep Dive” into your Theme Marketing MetricsSit by theme & share around your table Online and Social Building • Why this is your high priority ? Media Brands Best Practices • What’s your challenge with regard to this theme? Collaborative Marketing • What would you like to accomplish next year? Marke.ng Excellence • What insights, ideas or best practices did you collect while speed dating? • Select the Top Best Practice – summarize on chart • “Got to tell you about this idea!” 15 minutes • Select a spoke person (up to 1 minute pitch )
Got to tell you about this idea! Marketing Metrics Online and Social Building Media Brands Best PracticesAward Prizes for the most Collaborative Marke.ng Marketing ExcellenceContacts!Award Prizes for the Best Ideas!
Give yourselves a round of applause!• You really put the “work” in workshop!!!• I hope you will hold onto these journals – keep a dialogue going throughout the year – marketing bar in the industry keeps moving up!
Best Practice Resources• NAED publications – Complete survey results – available now – 5 White Papers – Fall – 2 archived webinars• American Marketing Association – Wwwmarketingpower.com – Focus on Marketing Best Practices – Marketers ToolKit – Webinars, AMA TV, publications
ResourcesMarketing Metrics:50+ Metrics EveryExecutive should MasterFarris, Bendle, Pfefer, Reibsteinhttp://www.cmosurvey.org/CMO Survey – Insights & Best PracticesDr. Christine Moorman – Fuqua B – school at Duke University
Thank you! Sue SmithProfessor of Marketing PracticeWhitman School of Management Syracuse University firstname.lastname@example.org