Marketing3 Presentation

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

FUTURE LAB 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

If you think marketers have an image problem FUTURE LAB

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

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

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

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

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

Cranfield University 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 FUTURE LAB

"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 FUTURE LAB

FUTURE LAB Buy Stormhoek Wine 

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If you think marketers have an image problem FUTURE LAB

Marketers need to become more « accountable » for themselves and for the benefit of the business..

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

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The Marketer’s Bushido FUTURE LAB Changing marketing’s bad image

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

FUTURE LAB 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?

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

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

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

Don’t forget to understand the “influencers”

Understand what truly drives and moves me

... and those who influence me

... at every step of the overall experience you offer

Real Insight FUTURE LAB

FUTURE LAB RESPECT

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

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

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28-34

Online music, movies & laser hair removal

Modest but dependable disposable income

People don’t fit boxes

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

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

Let go of mindless segmentation

Treat markets like “people”

Bring back the love

And you might get some in return

RESPECT FUTURE LAB

perception

80% of CEO’s believe of believe their brand provides a superior customer experience

8 % of their customers agree

(Bain & Company)

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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) FUTURE LAB http://www.youtube.com/watch?v=xaaAYVUWP0I

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

Breaking promises in a WoM world is suicidal FUTURE LAB

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

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” FUTURE LAB

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

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

Ensure that your brand tells the truth when it makes a promise

And when a promise is made

make sure it is kept

INTEGRITY FUTURE LAB

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

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

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

Preference Purchase Repurchase Loyalty Advocacy Pragmatism: Focus your money where it matters IMPACT Average Media Consumption by Week (Europe), 2005 Source: Nielsen Interactive Europe, 2005

Resist Orthodoxy

Booking TV = higher margin

Standard rate-cards are less work

Digital avoidance is easier on the brain

Agency co-operation is inconvenient

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

FINANCIAL ACUMEN FUTURE LAB

90% of businesses are unable to execute the strategy they have on paper 70% of businesses project performance they will never attain Houston, we have a problem 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

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

FUTURE LAB 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”

YET THEY ARE THE “MOMENT OF TRUTH” FUTURE LAB

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

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