- Provide you with skills to aid your team in making business decisions - Marketing Strategy 101 - Determine the role your CMO should play - Evaluate the effectiveness of your CMO

1. Finding the Right Marketing Strategy And the Person to Lead It…

3. Chief Outsiders (Austin team) Kirk Brand Coburn Pete Hayes Rex Bull 4M Scorecard

4. Objectives Provide you with additional skills to aid the TEAM in making optimal business decisions Provide you with a fundamental knowledge base of Marketing Strategy 101 Help you determine the ROLE your CMO should play Help you evaluate the effectiveness of your CMO

5. What do you want to Learn?

6. Out of Alignment "We're 50% short." “We're halfway there.” “Only 13% of C-Level believe their vision is aligned with the CMO’s.” Source: Peppers and Rogers Group

8. Ops Issues = Shipping Delays (Bad Planning)

9. Finance Issues = Less Profit (Wrong Products)

10. Cust Svc Issues = Complaints (Different KPI’s)= MARKETING ISSUE

11. PART II: The Role of the Marketing Lead

12. What are the Marketing Lead’s responsibilities? Marketing shares the responsibility for the creation, maintenance, and growth of the value of the company Marketing should position the company strategically in the market and in customers’ minds Marketing should deliver a marketing strategy that makes customers believe the company is different and better than the competition When this works, companies prosper. Top 100 Marketing Focused Companies vs. MSCI World Index and S&P 500 Performance Interbrand Source and Copyright: Interbrand Corporation 2008

15. Leads the dialogue that keeps the organization focused and working together

17. Channel Partnerships

18. Communication

19. Measurement and Analysis

21. Understand the customer

22. Understand the competition

23. Align the organization

25. Go-To-Market

26. Communication

28. Phase II: Align the Organization Once a direction has been set, the organization needs to align behind the vision. Every department needs to understand its role in the market-based go-to-market strategy Operational, systems or procedural changes can be the biggest part of a marketing strategy Often the best marketing strategies are based on changing how products, services, or information are delivered to a customer If Sales & Marketing charge off promising one thing to customers, and Operations is focused, measured, and bonused on something different, and if Finance is not a partner that helps to develop, measure and evaluate the profit impact, nobody wins.

29. Case Study: VanguardAligning an organization behind customer insights Vanguard learned customer service is not a one-size-fits-all proposition. (Phase I) Vanguard aligned the way it did business with the market learning. (Phase II) Vanguard's market segmentation approach drives customer loyalty, a key driver of future revenues. Working media and advertising (Phase III) were a small part of this marketing effort.

31. Changing product and store operations (Phase II)

32. Telling consumers about the changes (Phase III)Copyright/Trademark McDonald's Market Capitalization From 1998 to 2003 as Ronald McDonald's image wore thin and fast food purveyors were being linked to obesity, McDonald's market capitalization fell $12.2 billion. (Source: BusinessWeek) In 2004 McDonald's began revitalizing the brand by modernizing its image and adding salads, fruit slices, and grilled chicken to the menu. The change at McDonald’s was marketing led, starting with changing the product, then the message.

34. They did NOT adequately align the internal team and plan around the new channel (Phase II)

35. The Retail Decision still remains to be seen as to whether it is accretive … (Phase III)Dell Retail was out of alignment Target growth unattainable with current marketing plan New retail channels reduced profit margin percentages New channel products created internal and external confusion No systems in place to track results, sales, or customers Tier 3 Non-computer savvy, technology-averse Tier 2 Need to touch-and-feel before purchase Tier 1 Computer savvy, middle-aged, high disposable income Dell Core Market

36. Phase III: Marketing Minefields Measuring the effect of short-term decisions on long-term objectives. Net effect of advertising budget cuts Diminished customer experience Lower grade materials Product pipeline cuts Here is where things can get “touchy feely” or hard to measure. Rule of thumb – A well-qualified marketing lead who understands Phases I and II, and works with finance to develop and implement marketing strategy, can likely be trusted in Phase III as well.

37. Intangible Doesn’t Mean Immeasurable While elements of the marketing “spend” may be immeasurable, the results they are intended to drive should be measureable. Leading Indicators Critical business drivers that are: Measurable Manipulable Customer Centric (at least 2) Lagging Indicators Revenues Profits Economic Value (Add 4 score) Net Promoter Score

38. Sample Dashboard Driving Analysis Around Marketing Activities to Ensure Accountability and Transparency

39. Comprehensive Approach – Investment Strategy Each marketing activity is intended to drive toward a specific result. Look for ways to measure results at multiple levels. Awareness Consideration Decision Support Refer Upgrade Search Engine Optimization Web Refresh New Booth? Social Marketing/BLOGS Major Events Collateral Online & Print Advertising Cooperative Partner Mktg Reseller Relationships Product 3.0 Launch Giveaways Product Satisfaction Survey Case Studies/Testimonials Press/Analyst relations Reseller Event? Video Demos (Web & Syndication)

40. Case Study – Harrah’s Casino: Target Practice, Marketing Style Marketing helps identify the most profitable customers, then aligns the organization to develop and execute strategies to win them over. Phase I: Research Harrah's Casinos identified customers that were Passionate about Good at serving Could distinguish themselves from the competition with Phase II: Business Planning Harrah's targeted: Gamblers (not spa-goers or show-seekers) Gamblers who spent >$100/day but <$500 per day Harrah's created: Rewards program to track behaviors and measure key indicators Operations and IT Systems New financial reporting Plan to align entire company around new focus Phase III: Launch and Execution Harrah's tracked: Share of wallet Loyalty program upgrades Result: Leading indicator The number of customers visiting cross-properties predicted future revenues

41. PART III: Evaluating the Effectiveness of your CMO

43. Forecast net income with +/-10% margin

44. Can lead the market focused portion of executive team discussions

45. Track and measure leading and lagging indicators to determine success of marketing programs and objectives

47. Can logically discuss the customer’s business and business drivers

48. Know the cost of customer acquisition

49. Can clearly define the market size, market position and market share of the company

51. Treat budgets seriously

52. Drive profitable growth via positioning and differentiation

53. Trend leading and lagging indicators higher, year over year

54. Only make promises the company can keep

55. Convince customers you are easier and faster to do business each cycle and vs. competitors

57. Here’s a sample marketing budget: How would you evaluate it? EXPENDITURE SUCH AS BUDGETED It can’t be done. Nothing on this page helps you determine how good this marketing budget is. Without a solid understanding of the market (Phase I) and a marketing strategy (Phase II) a marketing budget is useless. Tradeshow booth, visitor center Courses, Marketing Assoc fees Tradeshows, Excellence Awards Website, Graphic Design, Customer Profiling Bacon's Monitoring Service, PR firm Print, Internet Global shipping Pricing strategy MDFDocumentation, Media, Getting Started Guides APAC, EMEA, NAM, LAM APAC, EMEA, NAM, LAM CapEx Headcount Employee Education Programs/Tradeshows Market Research/Business Intelligence Marketing Projects Public Relations Advertising Other Shipping Solutions Marketing Partner Levarage Product Packaging Field Marketing Sales Programs TOTAL 250,000 565,000 100,000 225,000 75,000 182,000 93,000 340,000 101,000 42,000 (225,000) 65,000 300,000 355,000 2,468,000 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

58. When to Pull the Trigger or the Plug Q: How can the MGT TEAM be sure new initiatives will be successful? Q: How much information or research is enough? Q: How can customer demands and volume forecasts be confirmed? A: You will never know. Get over it and start asking yourself and your team the best questions you can ask.

60. What is the financial exposure at that time?

63. Measure, then Align for Success Chief Outsiders Scorecard

64. Vragen? Preguntas? Fragen? Vragen? Questions? Spørgsmål? Kysymykset? Frågor? Kysymykset? Spørgsmål? Preguntas?

65. Thank You For your FREE COPY of our CMO Scorecard, email Kirk@ChiefOutsiders.com Kirk Brand Coburn Principal Chief Marketing Outsider kirk@chiefoutsiders.com Pete Hayes Chief Marketing Outsider pete@chiefoutsiders.com Rex Bull Chief Marketing Outsider rex@chiefoutsiders.com www.ChiefOutsiders.com