Marketing3 Presentation

Slide 1: 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

Slide 2: 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

Slide 3: If you think marketers have an image problem FUTURELAB

Slide 4: FUTURELAB What People Think of Marketers Don’t shoot the messenger 

Slide 5: FUTURELAB Marketers are faddish, irresponsible, … don’t think like business people … more akin to a recalcitrant child … McKinsey & Company, CEO/CMO Survey, 2005

Slide 6: The average tenure of CMOs in consumer markets is 23, 15 or 12 months. FUTURELAB

Slide 7: FUTURELAB Too many marketers have become so specialised that they don’t think in terms of the company’s big picture. Philip Kotler

Slide 8: FUTURELAB Marketers are frivolous and difficult to approach Australian Society of Certified Public Accountants

Slide 9: 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

Slide 10: "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

Slide 11: Buy Stormhoek Wine  FUTURELAB

Slide 12: FUTURELAB

Slide 13: If you think marketers have an image problem FUTURELAB

Slide 14: 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

Slide 15: FUTURELAB The Marketer’s Bushido Changing marketing’s bad image

Slide 16: Insight Respect Integrity Financial Acumen Inclusion Perspective Passion FUTURELAB The Marketer’s Bushido

Slide 18: 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

Slide 19: FUTURELAB German Traditional Chains vs. Hard discounters McKinsey & Company, Nov 2004

Slide 20: 60% of sensory experience of drinking espresso comes from the retail environment (and you lose it when you go home) FUTURELAB

Slide 21: « 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

Slide 22: Don’t forget to understand the “influencers”

Slide 23: Real Insight Understand what truly drives and moves me ... and those who influence me ... at every step of the overall experience you offer FUTURELAB

Slide 25: RESPECT FUTURELAB

Slide 26: FUTURELAB http://www.youtube.com/ watch?v=D3qltEtl7H8 RESPECT ??

Slide 27: Don’t treat me like a child “one message doesn’t fit all” FUTURELAB

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

Slide 30: To simplify and give meaning: Humans seek patterns, even where there are none

Slide 31: FUTURELAB “It’s the easy way out, and as long as we all do it, we’re fine” Romanian marketer

Slide 32: RESPECT Let go of mindless segmentation Treat markets like “people” Bring back the love And you might get some in return FUTURELAB

Slide 34: perception 80% of CEO’s believe of believe their brand provides a superior customer experience 8 % of their customers agree (Bain & Company) FUTURELAB

Slide 35: 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

Slide 36: Companies break their promises every single day. Does your business keep yours? FUTURELAB

Slide 37: Breaking promises in a WoM world is suicidal FUTURELAB

Slide 38: But I’m just a marketer That is not my department … FUTURELAB

Slide 39: 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

Slide 40: Consider Each Moment of Truth as a Brand Expression FUTURELAB Source: DAVIS S., LONGORIA T., “Harmonising Your Touchpoints”, Brand Packaging, Jan/Feb 2003

Slide 41: In a million channel world, brands whose consumers tell the best stories, win EXPERIENCES - EMOTIONS - STORIES

Slide 42: 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

Slide 44: A Reminder from Tom http://www.youtube.com/ watch?v=9MaKHxsGZ-A FUTURELAB

Slide 45: 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

Slide 46: 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

Slide 47: Pragmatism: Focus your money where it matters Average Media Consumption by Week (Europe), 2005 14 IMPACT 12 Source: Nielsen Interactive Europe, 2005 10 8 6 4 2 0 es ic o t D s on s ne ok di DV e us m i in Ra er is Bo M Ga az v t In le ag Te M Purchase Advocacy Repurchase Loyalty Preference

Slide 48: Resist Orthodoxy • Booking TV = higher margin • Standard rate-cards are less work • Digital avoidance is easier on the brain • Agency co-operation is inconvenient

Slide 49: 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

Slide 51: 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

Slide 52: Only 5% of the workforce understands what the strategy is Source: Norton, D. Aligning your Strategy to the Customer Value Proposition, 13/9/2005

Slide 53: 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

Slide 54: YET THEY ARE THE “MOMENT OF TRUTH” FUTURELAB

Slide 55: FUTURELAB Do people “get” your strategy ? What will you do to make it “clear”

Slide 56: 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

Slide 58: FUTURELAB Dreaming of a better future … where there is more to business than making money.

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