Reflecting on Marketing Accountability

Slideshow Transcript

1. Slide 1: 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)
2. 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
3. Slide 3: If you think marketing has a corporate image problem FUTURELAB
4. Slide 4: Marketers are faddish, irresponsible, … don’t think like business people … more akin to a recalcitrant child … McKinsey CEO/CMO Survey FUTURELAB
5. Slide 5: The average tenure of CMOs in consumer markets is 23, 15 or 12 months. Spencer Stuart FUTURELAB
6. Slide 6: Too many marketers have become so specialised that they don’t think in terms of the company’s big picture. Philip Kotler FUTURELAB
7. Slide 7: Marketers are frivolous and difficult to approach Australian Society of Certified Public Accountants FUTURELAB
8. Slide 8: 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
9. Slide 9: If you think marketing has a corporate image problem FUTURELAB
10. Slide 10: FUTURELAB
11. Slide 11: A Forensic Investigation Who Killed Marketing? Photo by ~billysriotgirl0404 FUTURELAB
12. Slide 12: Bloody Uncomfortable Confronting Don’t shoot the messenger  FUTURELAB
13. Slide 13: A Forensic Investigation THE VICTIM’S WORLD THE VICTIM THE CRIME SCENE Accountability to the World Accountability to the Business Accountability to the Customer FUTURELAB
14. Slide 14: A Forensic Investigation THE VICTIM’S WORLD THE VICTIM THE CRIME SCENE Accountability to the World Accountability to the Business Accountability to the Customer FUTURELAB
15. Slide 15: A Forensic Investigation Accountability to the Business: Making Money Which % of Sales Which % of Which % of German Which % time do Sr. Promotions are marketers define TV advertising Marketers spend on Unprofitable? clear objectives for campaigns generate their media strategy their campaigns? negative ROI? (= largest budget item)? 85% 82% 46% 2% Deutsche Bank, 2004 UCLA, 2004 EMM, 2005 WARC, 2007 FUTURELAB
16. Slide 16: 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
17. Slide 17: 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
18. Slide 18: A Forensic Investigation THE VICTIM’S WORLD THE VICTIM THE CRIME SCENE Accountability to the World Accountability to the Business Accountability to the Customer FUTURELAB
19. Slide 19: A Forensic Investigation Accountability to the Customer Which % of their Which % of Germans Which is the failure Which % of CEO’s customers actually are irritated by TV rate of US Consumer believe their brand agree? advertising Products? provides superior customer experience 8% 78% 95% 80% 88% PVR users adskip GfK Marktforschung Bain & Company Bain & Company ACNielsen, E&Y, 2005 FUTURELAB
20. Slide 20: A Forensic Investigation THE VICTIM’S WORLD THE VICTIM THE CRIME SCENE Accountability to the World Accountability to the Business Accountability to the Customer FUTURELAB
21. Slide 21: 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
22. Slide 22: 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
23. Slide 23: A Forensic Investigation Accountability to the World: People In Your Communication: Neutrality FUTURELAB
24. Slide 24: A Forensic Investigation Accountability to the World: The Self Do you really believe in what you do? Or do you wear a mask? FUTURELAB
25. Slide 25: Who Killed Marketing? SUICIDE FUTURELAB Image: http://snapesluvr.deviantart.com/art/CSI-Springfield-29131429
26. Slide 26: How can you avoid it happening to you? FUTURELAB
27. Slide 27: Tom Knows http://www.youtube.com/watch?v=9MaKHxsGZ- A&mode=related&search= FUTURELAB
28. Slide 28: “Drive” or prepare to “Be Driven” Be Accountable to the business, the customer, the world FUTURELAB
29. Slide 29: Accountability to the Business Demonstrate Financial ROI MEASURE & PREDICT BUDGET ALLOCATION Case: German insurance company Case: Indian Tea company, Greek Telco. FUTURELAB
30. Slide 30: 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
31. Slide 31: Accountability to the Customer Focus Your Business on the Customer Create Meaningful Propositions Customer Delight at all Touchpoints Communicate with Respect, Insight, Passion FUTURELAB
32. Slide 32: Accountability to the World Demonstrate the Profitability of Caring Life Cycle Assessment Create a win-win Aspire Neutrality FUTURELAB
33. Slide 33: Accountability to the World Look in the Mirror, Every Day... Challenge what has stopped making sense FUTURELAB
34. Slide 34: Conclusion: The Tools Exist ... The Choice is Yours Heavy but inescapable to address its image problem, marketing needs to become more accountable ... FUTURELAB
35. Slide 35: FUTURELAB To experiment with, learn about and act on marketing accountability: info@futurelab.net SEPTEMBER 2007: MARKETING ACCOUNTABILITY EXPERIMENTATION LAB (MAX)