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Rethinking the four_ps[1] Rethinking the four_ps[1] Document Transcript

  • 3Rethinking the “Four Ps”:Marketing Operations Management and theNew Pathway to ProductivityA Winterberry Group White PaperApril 2012
  • © 2012 Winterberry Group LLC.2 April 2012AcknowledgementsThis white paper would not be possible without the significant contributions of morethan two dozen executive-level marketing thought leaders—representing a range ofvertical markets and almost every functional discipline within the advertising andmarketing ecosystem. Additionally, Winterberry Group is grateful to our sponsors, TheBuffkin Group and Group O, for their generous support of this research initiative.To all those whose insights, time and other contributions helped in the developmentof this white paper, we thank you.NoticeThis report contains brief, selected information pertaining to marketing operationsmanagement and the associated service provider and technology developmentsupport industries, and has been prepared by Winterberry Group LLC with thesponsorship of The Buffkin Group, LLC and Group O, Inc. It does not purport to be all-inclusive or to contain all of the information that a prospective investor or lender mayrequire. Projections and opinions in this report have been prepared based oninformation provided by third parties. Neither Winterberry Group nor its sponsorsmake any representations or assurances that this information is complete orcompletely accurate, as it relies on self-reported data from industry leaders—including advertisers, marketing service providers, technology developers andagencies. Neither Winterberry Group, its sponsors nor any of their officers,employees, representatives or controlling persons make any representation as to theaccuracy or completeness of this report or any of its contents, nor shall any of theforegoing have any liability resulting from the use of the information contained hereinor otherwise supplied.
  • © 2012 Winterberry Group LLC.3 April 2012Executive SummaryAsk any CMO—or spend just a few moments reviewing the day’s industry news,replete with announcements of emerging technologies, data sources and mediaalternatives—and one truth will become abundantly clear: A new era of marketingpossibility is upon us.“What an exciting time to be a marketer! Never before in history has there beena combination of technology, social realignment, behavioral changes and avariety of channels converging at once, causing marketing organizations toreally consider how, in fact, they are prepared to deal with the new normal ofconstant change.”—2011 Mid-Year Marketing Trends Study, The Kern Organization“Marketing is moving from the outskirts to the core of the enterprise as the keyowner of critical activities like nurturing the dialogue with customers, developingcustomer-centric strategies across the enterprise and helping other executivesimplement these concepts across their respective departments.”—The Evolved CMO 2012, Forrester Research and Heidrick & Struggles“More than ever before, marketers are implementing transformationalprograms to revitalize marketing operations, accelerate customer acquisitionand revenue and predict how to better shape and influence market demand.”— The 2011 State of Marketing, CMO CouncilOn the surface, the promise of this “new era” is substantial, offering brandsunprecedented new tools to identify ideal prospects, extend real-time offers andmaintain profitable, long-term customer relationships. But for all this potential, manyexecutives gripe that their efforts to drive substantial marketing performanceimprovement continue to be stymied by one fundamental challenge:They can’t make them work.Dig a little deeper, and their complaints resonate in unison. Corporate bureaucraciesdon’t allow for the quick decision making needed to capitalize on new opportunities.Institutional silos (separating lines of business, functional groups, geographic divisionsand other internal units) independently manage data, creative, financial and humanresources, limiting their ability to fully leverage the company’s assets. And even thoseinvestments focused on driving positive change—new marketing automationplatforms, for example—often suffer from lengthy implementation and reviewprocesses, sapping value at every stage of the effort.Considered collectively, this span of challenges suggests that for many companies,existing marketing infrastructures—designed to support long-discarded economicmodels, advertising strategies and media toolsets—are simply no longer viable.For all thispotential, manymarketingoperationsexecutives gripethat their effortsto drivesubstantialperformanceimprovementscontinue to bestymied by onefundamentalchallenge: theycan’t make themwork.
  • © 2012 Winterberry Group LLC.4 April 2012More concerning is the approach that most enterprises have adopted in tackling thatchallenge. Rather than seeking out the kind of transformative change necessary tokeep pace in a media landscape increasingly paced by disruptive digital innovations,most are approaching their fundamental “marketing misalignment” challenge as aseries of smaller, disconnected operational issues—each demanding their owntechnology, manpower and budgetary fixes.That approach, not surprisingly, isn’t working.Increasingly, marketers are looking for a new path to marketing productivity,grounded in the experience of seeing their enterprise peers benefit from holisticprocess optimization efforts, and focused on the critical imperative that a true “newera” infrastructure be built upon functional pillars that are both stronger and moreextensible than those that have supported advertising and marketing execution todate.This white paper—based on Winterberry Group’s extensive strategic consultingexperience in the advertising and marketing ecosystem, as well as a dedicatedresearch effort that included in-person and telephone interviews with over two dozenexecutive-level marketing thought leaders in early 2012—explores the extent to whichthat “new era” is truly upon us, and outlines a series of operating principles thatmarketers should view as fundamental to enabling substantial, profitable change inthe years to come.It will demonstrate that traditional approaches to managing marketing channels,campaigns and brand messages are rapidly falling by the wayside. Likewise, it willillustrate how achieving true transformative performance improvement demands theholistic optimization of four central marketing operations pillars—people, platforms,partners and processes—as driven by five overarching priorities:• Speed: to enable “right-time” responsiveness, provide for a constant first-mover capability and minimize costly cycle time issues• Insight: to better understand customers and prospects (and their likely needs,preferences and response cues) as well as the contributions of variouspromotional channels in the broader media mix• Access: to provide a steady stream of the appropriate inputs—including data,creative assets and business rules—to drive seamless, “always-on” execution• Flexibility: to support rapid (and sometimes substantial) changes in businessneed, strategic priority, channel preference and competitive demand• Security: to safeguard critical resources—including customer information,brand assets and delivery tools—and reinforce confidence in the marketingoperations infrastructure and its underlying value proposition.
  • © 2012 Winterberry Group LLC.5 April 2012The Challenge: Pain Points Confronting Enterprise MarketersTimes are tough for the CMO.Even while technology, process innovations and emerging media open new doors togenerate value through advertising execution, just as numerous are the obstacles thathave emerged to inhibit growth in the marketing function. Panelists said it oftenseems that for every new, groundbreaking marketing innovation, an equal array ofimplementation challenges creep up to offset that particular advance. For every newmobile platform, for example, there’s a corresponding data capture issue; for everypromising real-time media buying platform, vexing questions about the “real” value ofa customer audience.In the language of the enterprise marketer, these disparate challenges—these painpoints—often conspire to undermine the value of a whole marketing enterprise (tosay nothing of their impact on individual channel management efforts, campaigns ormedia programs). Collectively, they present a compelling case for marketingoperations process reinvention, setting the stage for the development of guidingpriorities around which those programs may be based.Pain Point In Their Own Words…Finding the Right Multichannel Mix:With the growing need to maintain “in market” presenceacross a range of promotional, response and engagementchannels, marketers are seeking a central platform from whichthey may coordinate (and optimize) their variouscommunications.“It used to be a lot less complex, because it was all about newchannels. Now it’s not about new channels; it’s about howyou use the channels.”— Vice President, Consumer Banking Operations,Top 10 Credit Card Issuer“We are challenged by the fact that marketing execution ishandled separately across different channels that don’t allshare common segmentation, campaigns, key metrics, etc.”— Vice President, Customer Marketing, Top 15 Retailer“We send our messages, other teams send their messages.Many small fiefdoms in our kingdoms are protective of theirterritory.”— Senior Advertising Project Manager,Top 5 Telecommunications ProviderSearching for Accountability Metrics in the Data:Armed with voluminous tracking and result data, marketersfeel they should be further along in the science of attributionand optimization.“Asking our agency about channel attribution is like asking akid to write his own report card.”— Senior Partner, Data- and Technology-FocusedPrivate Equity Firm“We do a lot of analysis at an individual marketing level tosee the incremental impact of an impression. But this doesn’treally address the attribution issue; instead, it kind of dumbsit down.”— Manager, Customer Insights, Top 5 Automaker
  • © 2012 Winterberry Group LLC.6 April 2012Developing a “Full Picture” from Disparate Customer DataSources:Marketers are bombarded with multiple disconnected (andlargely incompatible) data sources and platforms. But whatthey need isn’t more data—it’s a viable approach togenerating useful insights from the overlay of thatinformation.“We try to do matchbacks whenever possible, but data isn’talways clean and useful from a decision making perspective.”— Director, Marketing, Telecommunications,Top 5 Telecommunications Provider“Our data is siloed. There is a lot of it, but we lack anintegrated view of what it can provide.”— Global Chief Marketing Communications Officer, Top10 Technology and Consulting Company“We have the ability to technically sew the data backtogether, but it’s viewed differently by each organization….Our biggest problem is agreeing on a single definition of acustomer. The data is very messy.”— Vice President, Customer Marketing, Top 15 RetailerOrchestrating a Promotional Cadence Commensurate withSophisticated Customer Needs:Marketers lack the tools to move at “right time” with theircommunications.“We try to be honest with ourselves about how long it takesto get campaigns up and running.”— Senior Vice President, Marketing Strategy,Top 10 Publishing Company“Quality and timeliness of follow up: ‘Who’s going to makethe next touch?’ That’s critical.”— Vice President, Worldwide Marketing,Top 5 Technology CompanyLeveraging the Full Force of the Extended Enterprise:Suppliers bring a wealth of offers to the table, but marketersstruggle to engage and benefit appropriately from their ownpartners.“We know we need to outsource essential (but non-value-add) work, but we are having a hard time doing it because oflegacy operating issues.”— Senior Vice President, Marketing Strategy,Top 10 Publishing CompanyAligning the Various Stakeholders—Local, Regional,Corporate—with the Single, Renewed Marketing Vision:Different incentives and outcomes drive inconsistentmarketing investments and interests.“There is a movement here to coordinate all marketingprocesses at the corporate and local level—we are a year anda half into this effort. Difficulties include getting the rightdata in the right places and getting the right peopleconnected to it.”— Manager, Customer Insights, Top 5 AutomakerExecuting Campaigns with Quality—and Confidence:Expertise and delivery bandwidth that is needed for step-level improvement is spent ensuring that “business-as-usual”execution quality (and adherence with security guidelines)aligns with the organization’s standards.“As our bar for error/need for security has heightened, notthat many start-ups are viable suppliers to a company likeus.”— Vice President, Consumer Banking Operations,Top 10 Credit Card Issuer
  • © 2012 Winterberry Group LLC.7 April 2012The Opportunity: Marketing Operations Management andthe Argument for ChangeMany of the most daunting challenges facing large enterprises today—including a hostof issues that may appear closely linked to the financial, operational, sales or“executive” functions of the organization—are rooted in fundamental marketingconsiderations. Take, for example, some of the paradigm shifts that are nowconfronting senior managers across vertical markets:• The emergence of new, disruptive media and product delivery channels• The acceleration (and ultimate shrinking) of product lifecycles, especiallywhen those products are grounded in digital content or technology platforms• Widespread shifts in pricing approaches—favoring dynamic, automation-driven market pricing, versus fixed benchmarks; and• Growing consumer sophistication—and intensified demand for niche productsand services that cater to unique interests.Objectively, these shifts speak directly to those traditional concerns—including the“four Ps” of product, promotion, pricing and placement—that the modern marketingfunction was designed to address (and that every business student learns at theoutset of their Marketing 101 coursework). But rare is the organization that hasassigned their marketing department the resources and oversight authority needed toactually act on these theoretical responsibilities. In fact, marketing’s veryprominence—its association with advertising, creative, promotions, events and theother trappings of the customer-facing business—may actively work to inhibit its roleas a strategic influencer.Increasingly, though, senior executives are coming to see that perspective as flawed.Seeking to become more responsive to the needs of a digital world (and needing anaccountable lever to manage the exchange of material resources, data, decisionmaking and other assets), many companies are working to realize the potential of themarketing department to fulfill a role of strategic influence equal to that of finance,operations and the other fundamental pillars of organizational success.Conceptually, the benefits of that approach—including better utilization of corporateassets and improved matching of product development efforts to marketplace need—are clear and compelling. But given the substantial embedded barriers to change thatexist in many large organizations, achieving this bold transformation requires acomplete rethinking of the role that marketing plays in a complex enterprise,addressing its structure, resourcing and relationships with both in-house “customers”as well as third parties.In short, it requires a renewal of those “four Ps”—and development of an entirely newframework upon which marketing operations structures should be designed. The goal:to assure maximum effectiveness, efficiency and the room to grow to meet evolvingenterprise demands over time.Achieving thisboldtransformationrequires acompleterethinking of therole thatmarketing playsin a complexenterprise,addressing itsstructure,resourcing andrelationshipswith in-houseand third-party“customers.”
  • © 2012 Winterberry Group LLC.8 April 2012If the traditional marketing organization is hallmarked primarily by the existence ofparallel “silos”—independent functional units within which resources, expertise andtools exist in competition with others—then perhaps the baseline of thistransformation should be grounded in complementary “pillars,” working collectivelyto enable a marketing enterprise that’s stronger and more fundamentally prepared toaddress the more complex challenges of tomorrow.Developing a coordinated plan for marketing reinvention, though, requires more thanjust acknowledging the need for change. It requires an intense inward-lookinginvestigation focused on understanding the organization’s “as-is” situation andpotential platform for change, as informed by the new pillars of marketingproductivity (as well as the specific organizational priorities that should guide decisionmaking with respect to each). Our panelists said that today’s cornerstone marketingpriorities—and thus the ideals which our “pillars” will seek to support—are nearlyuniversal: speed, insight, access, flexibility and security.
  • © 2012 Winterberry Group LLC.9 April 2012People Platforms Processes PartnersGuidingUnderstandingThe right leaders andthe right deliveryteams—armed withthe right skills andtools, and connectedby the rightrelationships—willdrive lasting,defensibledifferentiationLeading-edgetechnology can andshould be a keyenabler of productand processinnovation. Butexploiting the valueinherent in thesetools requiresaligning adjacentorganizationalresources to bestleverage theirpotentialcontributionsThe specific approachby which themarketing team“does things” is acritical factor indriving its ultimatesuccess. As such,processes must bestraightforward,transparent andoptimized to drivedesired outcomesgiven availableresourcesThe complexity andrapid pace-of-changethat characterizetoday’s marketingfunction require notonly a strong internalteam, but a networkof external partners,each bringingstrategicallydesirable expertise,tools and deliverycapabilities to driveinnovationHow Do“Best-in-Class”OrganizationsProsper?Through results-driven hiring andstaff developmentthat promoteeducation, practical/cross-disciplinarytraining andcompensation tied todesired outcomesThrough integratedplatform structuresdesigned around thecentral marketingstrategy, leveragingdata and modular“point” solutions tofuel insight andinnovationThrough dedicatedprocess mapping andoptimizationefforts—focused onminimizing waste,acceleratingproductivity andmeeting fundamentalcustomer needsThrough creation ofa broadconfederation ofservice providersand technologyvendors who may“fill in the executiongaps” and provideconstant marketinsightCriticalQuestions to(Re)consider• How do we recruitand retain the besttalent on anongoing basis?• How do wemaintain aconstant focus onemerging skills anddisciplines?• Do we incentivizethe results that aremost important tous?• How do we createand sustainexcellence in ourpeople?• Are our existingsystems optimizedto execute uponour existing (andlikely future)strategies?• Do we have fullvisibility into thedata we need tomake gooddecisions forcustomers?• Is our technicalarchitectureproviding us withcompetitiveadvantage?• Are we meetingthe expectations ofour customers—both internal andexternal?• How muchflexibility do wegive up to longcycle times andreworkrequirements?• How much fartheralong would we beif we were faster inexecution? And/ordelivering higherquality output?• Has our supplychain been builtspecifically aroundour marketingstrategy?• Are we doingthings that wouldbe best done byexternal partners?• Do we havesystems in place toextract the mostvalue from oursupplierrelationships?Rethinking Marketing Ops:Four Pillars (“Four Ps”) of Organizational Transformation
  • © 2012 Winterberry Group LLC.10 April 2012Speed: Responding to the Needs of the Business in aCompetitive, Dynamic EnvironmentWhy It’s Important: Enables “right-time” responsiveness, provides for a constant first-mover capability and minimizes costly cycle time issuesWhy Marketers Struggle to Deliver It: Enterprise marketing infrastructures have beenbuilt mainly to execute large, one-time campaigns (rather than continuous programs)supported by complicated, custom—and overwhelmingly manual—processes,resulting in lengthy lead times and prioritization queuesIts Impact on Marketing Performance: Long cycle times add production cost, increasethe likelihood of errors and diminish the relevance of marketing communications (aswell as the value of potential first-mover advantage)People Platforms Processes PartnersWhat “As-Is”ChallengesTypicallyConfrontMarketers?The talent thatmarketers need to re-engineer their processis not in the marketingdepartmentSystems are silo-specific and housetheir own version ofassets that must berecalled rapidly; legacysolutions loserelevance quicklyMarketing executionprocesses havedeveloped piecemeal,with manual executionengines that are slow,not repeatable andprone to errorToo much internalbandwidth is used inexecution—it’s notthat there aren’tenough people, it’sthat they’re doing thewrong thingsWhat Does the“Could Be”State LookLike?Marketers enableflexibility and capacityby becomingdisciplined withrespect to talentcultivation anddeploymentAutomation platformsenable standard workto flow through quicklywith little manualinterferenceProcesses areengineered to firstdiminish cycle time(as precisely aspossible)—and thento realize follow-onbenefits of quality,cost and flexibilitySuppliers contributeto execution in theareas at which theyexcel; arecompensated forexceeding timingexpectations withhigh quality levelsHow Do WeGet From“As Is” to“Could Be”?• Get the right talent(internal, borrowed,external) to rebuild• Make transformationa visible and activeteam priority• Commit to teachingthe team new (andmarketable) skills• Identify the types ofactivities that willoccur most often asbased on themarketing strategy• Source automationsolutions to managetasks as seamlesslyas possible• Marketing approachmust be built withspeed as the desiredoutcome• May require “burningthe ships” by turningoff old processeswhile “as-is”programs continue• Ask the organizationto analyze everyinternal functionagainst industrysolutions• Look for ways toquickly upgradetechnology, process,expertise by sourcingIn Their Own Words…“We’ve built processes and procedures so that we don’tneed to recreate the wheel every time. We can respond tocompetitor’s offers very quickly with a matching offer.”— Vice President, Advertising,Top 5 Telecommunications Provider“Speed to market is priority number one. The challenge liesin getting it done from an executional and operationalstandpoint. The constraints… are a myriad of disconnectedand disparate databases.”— Vice President, CRM, Top 5 Retailer
  • © 2012 Winterberry Group LLC.11 April 2012Insight: Leveraging All Available Data to Better UnderstandCustomers, Markets and the Impact of Multichannel EffortsWhy It’s Important: Allows the marketer to better understand customers, prospectsand the behaviors that impact their ultimate purchase activity, allowing them topromote an ongoing relationship across the channels the customer choosesWhy Marketers Struggle to Deliver It: Integrating disparate data sources (includingthose that that may be “unstructured”) and measuring cross-channel performance is,for many, the elusive “Holy Grail” of targeted marketing. Though many are working toaddress the challenge, no one has yet crafted a comprehensive off-the-shelf solutionIts Impact on Marketing Performance: With the various data sources connected, themarketer can build out an attribution framework to optimize cross-channel effortsPeople Platforms Processes PartnersWhat “As-Is”ChallengesTypicallyConfrontMarketers?Marketers often lackthe deep analyticstalent they need tomake sense of thechallengingquantitative problemof multichannelattributionTypically, data isfragmented, disjointedand built upondifferent taxonomies;BI solutions are not setup to provide deepanalyticsProcesses oftendepend largely oncontributions fromhomegrown “hard-coded” solutionscobbled together tosolve incrementalchallengesSystems and data mayrespectively by housedexternally (where datamay be hard to access)or in a combination ofexternal and internalrepositoriesWhat Does the“Could Be”State LookLike?Marketers engage withquantitative analystsand resourcesschooled in hardsciencesAnalytical needsrequire dedicatedsystems and powerfulanalytical softwarethat is integrated withenterprise decisionmaking enginesSystems areengineered foradaptive control andparameterization; arehighly flexible on keystrategic dimensionsData can be hostedexternally, but needsto be kept in-house toensure accessibilityand securityHow Do WeGet From“As Is” to“Could Be”?• Recruit and build outa team of marketinganalysts; it’s easier totrain analysts on“marketing” thanvice versa• Develop retentionand recognitionprograms to fosteranalytics talent, teamspirit and loyalty• Architect systems tosupport massivecentralized data withintense processingpower• Create separate datastructures optimizedfor analytics• Work backwardsfrom a desired end-state of automateddecision making• Designate a centralpoint of marketinginvestment decisionmaking to provideanalytics direction• Source hosting,connectivity,matching andplatform integration,but keep the strategy(and access to keyresources) in houseIn Their Own Words…“It’s easy to get lost in those multichannel conversationswithout stepping back and looking at the customer.”— Vice President, Consumer Banking Operations,Top 10 Credit Card Issuer“In my experience, I have generally been dissatisfied withthe level of expertise and focus on attribution.”— Vice President, Digital Brand Strategy,Top 5 Credit Card Issuer
  • © 2012 Winterberry Group LLC.12 April 2012Access: Centralizing the Management of Core Marketing Assetsto Maximize Their Contribution to the Whole EnterpriseWhy It’s Important: Rich proprietary assets—including granular data on customers,prospects and their respective purchase and promotional histories; legacy creativematerial and campaign performance records—presents a source of substantialcompetitive advantage for the company, and making these properties available forcross-enterprise use is essential in delivering synergy benefitsWhy Marketers Struggle to Deliver It: Data and content management structures aretypically siloed according to the internal “parent,” often in separate or duplicativedatabases or libraries—and with few protocols in place to govern resource sharingIts Impact on Marketing Performance: Diminishes the organization’s ability to derivea truly complete “view” of their own customer, or leverage previous resources infollow-up marketing effortsPeople Platforms Processes PartnersWhat “As-Is”ChallengesTypicallyConfrontMarketers?Staff may be protectiveof resources and seelittle reason to makeassets available toothersMultiple platforms aresourced (by differentinternal owners) toprovide the same basicfunctionalityProcesses are specificto the department,rather to theenterprise, and aredesigned to preventresource sharingSuppliers deliver singlepoint solutions withoutcomprehensive scopeWhat Does the“Could Be”State LookLike?Assets are managed inuniversal databasesand libraries, with aspecific set of businessrules guiding accessand availabilitySophisticatedmatching, keying andhistorical datasupports completecustomer viewsStreamlined internalapproval processesprovide insightswhere they are mostneeded“Referential” keying,which accesses a fullexternal database forlinks, allows foroptimal consolidationsand visibilityHow Do WeGet From“As Is” to“Could Be”?• Marketing needsshould beincorporated at theearliest possibledevelopment stage• Account for heavylifting if theorganization is notbuilt around centralaccess points• Identifyopportunities tostreamline centralplatforms with focuson data integrationand asset cataloging• Design to drive realtime communication,integrating assetsfrom various cross-enterprisedatabases/libraries• Architect customeridentification as an“always-on” process• Consider third-partysolutions toreference and matchdata (as well as otherassets) and providethe most completepicture possible ofcustomerinteractionsIn Their Own Words…“There is a movement [in our company]… to coordinate allmarketing processes. The difficulties include getting theright data in the right places and getting the right peopleconnected to it.”— Manager, Customer Insights, Top 5 Automaker“It’s critical to get it centralized. What I’ve seen in myhistory with clients is that [data and creative assets] arevery fragmented and siloed.”— Global Chief Marketing Communications Officer, Top10 Technology and Consulting Company
  • © 2012 Winterberry Group LLC.13 April 2012Flexibility: Engaging with Supply Chain Partners to Extend theCapabilities and Scope of the Marketing EnterpriseWhy It’s Important: Allows the marketer to develop a strategy to best maximizeinternal own talent and resources—while leaning on the right set of partners toexpand the organization’s skillset and gain critical operating bandwidthWhy Marketers Struggle to Deliver It: Third-party relationships are treated astransactional, often focused on single activities rather than process outcomesIts Impact on Marketing Performance: Many marketers devote disproportionatetime, cost and attention to managing tasks outside their core competencies (whichwould thus better be left to third parties)People Platforms Processes PartnersWhat “As-Is”ChallengesTypicallyConfrontMarketers?Supply chain expertiseis price-focused,procurement-based,and housed primarilyin the financedepartment—if itexists at allInnovationrequirements arequeued up for internalIT development;delivery timelines aremeasured in months, ifnot yearsMarketers holdsuppliers at arm’slength form the coreoperation (and fromeach other), inhibitingthe benefits ofpotential cooperationSuppliers are largelytransactional in natureand legacy in theirorigins. Decisionsabout what is doneinternally/externallyare implicitWhat Does the“Could Be”State LookLike?Supply chain expertiseis embedded in themarketing department,with a focus onleveraging partners todrive innovation andpromote the positivebenefits of lastingcompetitive tensionSuppliers are selectedfor their ability todeliver solutions viaexisting platforms thatare best-in-class andmeet all the marketingneedsSuppliers rallytogether for the sakeof the process,working as anextension of theinternal team to solvethe marketingchallengeSuppliers are broughttogether with internalteams to deliver jointlyon departmental goalsHow Do WeGet From“As Is” to“Could Be”?• Create and staff amarketing suppliermanagement team,charged with buildingout the necessaryrelationships• This team works withprocurement andserves as supplier’sprimary customer• Mine IT’s “wish list”for biggest impactprojects and longestdelivery timelines• Use suppliermanagers to findproviders who canimmediately deliverobjectives withinexisting platforms• Hold regular reviews(which all suppliersattend) to reviewprogress, obstaclesand goals• Make the overallobjective a part ofeach individualsupplier scorecard• Derive key processand technologyneeds from theoverarchingmarketing strategy• Use suppliersmanagers to sourcepotential third-partiesIn Their Own Words…“One of top challenges was: How do we make theorganization nimble enough and still keep costs down?”— Global Chief Marketing Officer,Top 10 Insurance Provider“We augment with vendors, relying on theirexpertise/technology because it’s not within our core.”— Vice President, Marketing,Top 20 Health Insurance Provider
  • © 2012 Winterberry Group LLC.14 April 2012Security: Ensuring the Viability of the Organization (and theConfidence of its Customers) Through Protection of Critical AssetsWhy It’s Important: Safeguarding critical resources—including customer information,brand assets and delivery tools—reinforces confidence in the marketing operationsinfrastructure and its underlying value propositionWhy Marketers Struggle to Deliver It: Security is rarely seen as a marketingfunction—and marketers are largely unprepared to lead on such issuesIts Impact on Marketing Performance: Security, privacy and the “rules ofengagement” that drive data usage are key considerations in communicating withcustomers; managing them with an eye on customer needs (as opposed to deliveringsecurity “for its own sake”) will provide lasting business benefitsPeople Platforms Processes PartnersWhat “As-Is”ChallengesTypicallyConfrontMarketers?Even though marketinghas a voraciousappetite for data, thestewardship function ismanaged elsewhere, ifat allSecurity and privacyconcerns are system-specific—and each onehas its unique needsthat require attentionand supportSecurity is externallyfocused and managedfrom IT, with novisibility into themarketing value of thedata it is protectingProviders offer adefault level of securityand privacyprotections—and carrytheir own risk ofbreachWhat Does the“Could Be”State LookLike?Marketing designatesdata stewards—teamsdedicated tosafeguarding the data,designing the policiesand monitoringcontrolsSecurity and privacyprocedures aretailored to the dataand managed by thedata stewardship teamMarketing processesare built aroundcentral data, which ismanaged to allow forvarying access basedon its value andsensitivityIdeal service levelagreements spell outnot just recourse, butconsistent standardsfor safe executionHow Do WeGet From“As Is” to“Could Be”?• Create and staff amarketing datastewardship team,charged with buildingout policies andprocedures tosafeguard data• This team works withIT as the serviceprovider for security• Tailor security andprivacy solutions tothe sensitivity andvalue of the datafrom a marketingperspective• Designate the mostsensitive fields in thedata flow andautomatically limitaccess to them• Conduct a “securityaudit” of the keyworkflows and dataflows• Develop the end-state security visionand assess currentstate against itIn Their Own Words…“We have a security office that manages a firewall systemto make sure that we are not passing around consumerdata. There are huge efforts to make sure that consumerinfo is protected.”— Director of Advertising,Top 5 Telecommunications Provider“We have someone in charge of the governance but this ispart of IT infrastructure, not part of marketing. I’m notsure if we have someone in charge of maximizing theopportunity though.”— Senior Vice President, Marketing Strategy,Top 10 Publishing Company
  • © 2012 Winterberry Group LLC.15 April 2012In ConclusionThe demands on today’s marketing operations teams are more varied—and moreintense—than ever before.Wholesale technological advances, channel proliferation, the rise of “big data” and thefragmentation of audiences are the hallmarks of the era. But at the heart of thosedevelopments, a single current flows consistently: Consumers have come to expectmore of the brands with which they do business.That doesn’t just mean the savvy marketers of tomorrow will have to be everywhere(be it on television, in the mailbox, in the retail environment, on the Web or in theinbox). They’ll also have to be more responsive to changing consumer needs, moreattuned to the macro trends driving market opportunities, more interactive in theircustomer relationship management and, above all else, more nimble in how theystrategize, assign resources and build marketing programs to support rapid, continuousinnovation.For most enterprise marketers, supporting that colossal paradigm shift will requiremore than simply “reforming” marketing ops as we’ve known it. It will require aconcerted effort at strategic reinvention, driven with an eye on leveraging the coreoperating assets of the business—the “four pillars” of people, platforms, processes andpartners—as the central enablers of whatever tactical priorities the business deemscritical.Today, senior marketers say that the dynamism of the marketing environment haspositioned five ideals—speed, insight, access, flexibility and security—as thefoundational priorities upon which those pillars must be built. But over time, thosepriorities may well change—demanding that marketing operations (and the strategies,processes and infrastructure that guides it) must change with them.
  • © 2012 Winterberry Group LLC.16 April 2012The Buffkin Group is a retained, specialty boutique search firm comprised of industryleaders. Each partner in the firm has been a leader in their respective fields and eachhas over a decade of retained search experience. Combined, our partners have over65 years of search experience and over 100 years of industry experience. Our job assearch professionals is to recruit leaders that impact our client companies. We recruitexecutives in marketing, healthcare, technology, media and nonprofit. We servepublic, private, venture and private equity backed companies. Our office locations areNashville, New York, Stamford and Washington D.C.For more information, please visit www.thebuffkingroup.com.Group O is a $600 million diversified business services outsourcing provider that helpsits clients to optimize their operations through strategic marketing, packaging andsupply chain solutions.• The company’s Marketing Solutions group offers solutions for loyalty andincentives, mobile and Web applications, information sciences & analytics, callcenter, consumer and trade fulfillment and direct mail, multichannel and printoptimization services• The Supply Chain Solutions group serves the manufacturing, retail and high-tech sectors with serialized, high-velocity and scalable forward- and reverse-logistics services, as well as strategic sourcing and procurement solutions• The Packaging Solutions group provides an extensive nationwide network ofpackaging materials, equipment, analytical and packaging engineering servicesolutions.Group O is ISO 9001:2008 and TL 9000 certified and is SSAE 16 (SAS 70) Type II andHIPAA compliant. As a 100-percent Hispanic-owned MBE and National MinoritySupplier Development Council (NMSDC) Corporate Plus member, Group O is proud tobe recognized as the 2011 National Minority Supplier of the Year (nmsdc.org).Headquartered in Milan, Ill., Group O is the ninth-largest Hispanic-owned company inthe United States and employs more than 1,700.For more information, please visit www.GroupO.com.
  • © 2012 Winterberry Group LLC.17 April 2012Winterberry Group is a unique strategic consulting firm that helps advertising,marketing, media and information companies build value. Our services include:Corporate Strategy: The Opportunity Mapping strategic development processprioritizes customer, channel and capabilities growth options available to advertisingand marketing industry firms, informed by a synthesis of market insights and intensiveinternal analysis.Market Intelligence: Comprehensive industry trend, vertical market and value chainresearch provides in-depth analysis of customers, market developments and potentialopportunities as a precursor to any growth or transaction strategy.Marketing System Architecture: Process mapping, marketplace benchmarking andholistic system engineering efforts are grounded in deep supply chain insights and“real-world” understandings—with a focus on helping marketers and publishers betterleverage their core assets.Mergers & Acquisitions Due Diligence Support Services: Company assessments andindustry landscape reports provide insight into trends, forecasts and comparativetransaction data needed for reliable financial model inputs, supporting the needs ofstrategic and financial acquirers to make informed investment decisions and lay thefoundation for value-focused ownership.For more information, please visit www.winterberrygroup.com.