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http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
Introduction to Marketing Intelligence –
Part II
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The Metrics
And Why They Are Important To Marke...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
‘‘Half the money I spend on marketing is
wasted...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
‘‘Half the money I spend on marketing is
wasted...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The Metrics That Work
 Non Financial Metrics
–...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The Metrics That Work
 New Age Metrics (Intern...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
2008 Porsche Turbo Cabriolet
New Product Launch
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The Product Launch
 A stamped ‘‘raw’’ metal pl...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The Product Launch
 The design of the campaign...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The Product Launch
 The response rate and time...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
Customization and marketing
intelligence can ha...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
DuPont TyvekHomeWrap
&
NASCAR
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
DuPont TyvekHomeWrap
 DuPont Tyvek is a well k...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The Challenge
 Marketing Intelligence and mark...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
NASCAR
 NASCAR is an extremely popular sport
i...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
Jeff Gordon
 DuPont also sponsors Jeff Gordon
...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
Car Branding
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
Activation Campaign
 Campaign included paintin...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The Poster Sent to Distributors
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The Offer
 The offer was for an ‘‘ultimate rac...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The Results
 438 retailers signed on
– 202 new...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The Weakness of the Measurement
A weakness of ...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
My favorite NASCAR memory includes
our favorite...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
We didn’t put it together for a couple of
month...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
Finally, we realized our two-year-old was
match...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The takeaway is that the Tyvek Home
Wrap campai...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The Difference Between Leaders &
Followers
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
If you ask CMOs how they spend their
budget, yo...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
But this breakdown is not particularly
useful, ...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
What is the intended outcome of the
marketing?
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
We want to know what marketing
investments are ...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
We define 5 buckets of funding based on
achievi...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The 5 Buckets in Detail
 Demand Generation – m...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The 5 Buckets in Detail
 Shaping Markets – act...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
How Do Marketers Allocate Budget?
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The Difference – Leaders & Followers
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The Difference – Leaders & Followers
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
What Do We Know?
 The Marketing Divide Is Real...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
Using Metrics to Deal With Hard
Economic Times
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
When the economy gets tough, senior
management’...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
Marketing may seem like an easy cost-
cutting t...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
In a study covering 16 different industries
fro...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
By 1985, sales of companies that took an
aggres...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
In the 2001 technology industry
recession, Inte...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
In 2008, three years into a recession in
constr...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The First Step – Defining the Marketing
Intelli...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The Framework
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
Know Yourself –
Figure out which data are impor...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
Know Your Customers –
Fine-grained segmentation...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The Closing
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
In 1974, bar code scanners were
introduced in r...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
This technological innovation spawned
‘‘marketi...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
Today, the Internet and cell phone
networks are...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
Now is the best and most
exciting time to be in...
http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
The new data-driven approaches and
infrastructu...
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Introduction to Marketing Intelligence - Part II

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The second lecture in the marketing intelligence session - foundations continued

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Transcript of "Introduction to Marketing Intelligence - Part II"

  1. 1. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled Introduction to Marketing Intelligence – Part II
  2. 2. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The Metrics And Why They Are Important To Marketers
  3. 3. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled ‘‘Half the money I spend on marketing is wasted—the problem is I don’t know which half.’’ - John Wanamaker
  4. 4. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled ‘‘Half the money I spend on marketing is wasted, but today I know which half: TV advertising.’’
  5. 5. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The Metrics That Work  Non Financial Metrics – Brand awareness – Test-drive – Churn – Customer satisfaction (CSAT) – Take rate  Financial Metrics – Profit – Net present value (NPV) – Internal rate of return (IRR) – Payback – Customer lifetime value (CLTV)
  6. 6. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The Metrics That Work  New Age Metrics (Internet Metrics) – Cost per click (CPC) – Transaction conversion rate (TCR) – Return on ad dollars spent (ROA) – Bounce rate – Word of mouth (WOM) (social media reach) We will have an in-depth discussion of Internet marketing best practices Give multiple examples of how to use the Internet to radically improve marketing performance
  7. 7. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled 2008 Porsche Turbo Cabriolet New Product Launch
  8. 8. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
  9. 9. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The Product Launch  A stamped ‘‘raw’’ metal plate was delivered to existing Turbo Cab owners to coincide with the press announcement of the new product launch  The mailing provided personalized log- in credentials and encouraged visits to the web site with: ‘‘The raw Porsche 911 Turbo Cabriolet awaits your color selection.’’  On the web site, the customers chose their favorite color and ordered a personalized Turbo Cab poster
  10. 10. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The Product Launch  The design of the campaign, integrated with the Internet web site, enabled end-to-end tracking  There were 2,700 unique log-ins with an average session time of almost 15 minutes, and 5,670 posters were ordered  Interestingly, there was also a significant WOM component, with nearly 500 send-to-a-friend invitations  The campaign overall had a 30 percent response rate, and 38 percent of Turbo Cab buyers during this period received the mailer
  11. 11. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The Product Launch  The response rate and time on site is truly amazing given the high cost of the product - $130,000  Target demographic: busy executives, lawyers, and doctors.  This example is that the direct-mail marketing was designed for measurement and was integrated with the Web, enabling the capture of customer response data and identifying potential leads
  12. 12. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled Customization and marketing intelligence can have a significant and measurable performance impact for both small and large firms
  13. 13. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled DuPont TyvekHomeWrap & NASCAR
  14. 14. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled DuPont TyvekHomeWrap  DuPont Tyvek is a well known US brand  The product is successful because of the innovative properties of the product and the marketing strategy that DuPont used  Tyvek has a unique property that keep liquid water from passing through making it extremely durable  Tyvek is used in packaging, protective apparel, envelopes, covers, graphics and home construction  It is extremely useful in the construction industry where it is wrapped around the building frame to keep mold and mildew out while protecting homes & buildings from water damage
  15. 15. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled
  16. 16. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The Challenge  Marketing Intelligence and marketing metrics start with the principle of keeping score for all major marketing activities  This is challenging, since the advertising is designed to brand Tyvek by creating awareness for the product and an emotional attachment that your home is safe with Tyvek  In addition to the print marketing, DuPont used the sponsorship of Jeff Gordon in NASCAR.
  17. 17. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled NASCAR  NASCAR is an extremely popular sport in the United States  It’s also very interesting from the marketing perspective  It is the #1 in-person attended sporting event and the #3 most watched sport in the United States  Almost 80 million people regularly watch NASCAR  Combined with F1, auto racing is the #1 live event in the world today
  18. 18. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled Jeff Gordon  DuPont also sponsors Jeff Gordon  Has won the NASCAR Championship 4 times  ESPN rates him the 8th most recognized sports figure in the United States
  19. 19. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled Car Branding
  20. 20. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled Activation Campaign  Campaign included painting Jeff Gordon’s car with a Tyvek “TV panel” on the back for a race in Kansas & TV advertising blanketed the Kansas area during the race to build customer awareness  Primary focus of the campaign was on three groups: – Retailers – Builders – Specialists in Construction
  21. 21. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The Poster Sent to Distributors
  22. 22. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The Offer  The offer was for an ‘‘ultimate race weekend’’ luxury box for the race and opportunity to actually meet Jeff Gordon  Awards went to – top 24 retailers across the country who sold the most DuPont products – top 24 builders who bought the most DuPont products – top 24 specialists who signed up the most new and existing retailers
  23. 23. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The Results  438 retailers signed on – 202 new and 236 existing – 186% sales increase during the promotional period
  24. 24. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The Weakness of the Measurement A weakness of the marketing measurement was that the impact of the brand and awareness component of the marketing was not captured particularly well Tyvek logo that is visible on all new construction that uses the Home Wrap product The following was posted on the www.NASCAR.com blog:
  25. 25. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled My favorite NASCAR memory includes our favorite driver, Jeff Gordon, and my son, Logan. When Logan was two, we would drive by new housing developments and he would tell us which houses were Jeff Gordon’s.
  26. 26. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled We didn’t put it together for a couple of months, but every time we would walk by or drive by a new housing development Jeff Gordon almost always had a house there.
  27. 27. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled Finally, we realized our two-year-old was matching the DuPont Logo from Jeff Gordon’s racecar with the DuPont House Wrap logo (Tyvek) on the new homes. Kudos to DuPont for its brand.
  28. 28. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The takeaway is that the Tyvek Home Wrap campaign primary objectives were designed to be measured; DuPont marketing was keeping score, and the pre-post change in number of pallets shipped justified future marketing investments.
  29. 29. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The Difference Between Leaders & Followers
  30. 30. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled If you ask CMOs how they spend their budget, you most often hear the percentage spent on TV, print, Internet, direct mail, telemarketing, and so on.
  31. 31. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled But this breakdown is not particularly useful, since it does not tell us what these organizations actually do with their money.
  32. 32. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled What is the intended outcome of the marketing?
  33. 33. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled We want to know what marketing investments are actually intended to do or achieve?
  34. 34. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled We define 5 buckets of funding based on achieving different goals and objectives – such as demand generation, branding/awareness, custo mer relationships, shaping markets and infrastructure.
  35. 35. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The 5 Buckets in Detail  Demand Generation – marketing activities to drive revenues in a relatively short time period after the campaign – Sales, coupons and events  Branding & Awareness – marketing activities drive awareness and can include sponsorships, naming rights to events or properties, and advertising specifically for awareness, not promoting an upcoming sale  Customer Relationships – marketing focuses on creating a personal link to the customer that drives loyalty and engagement – Thank you notes after purchase and loyalty programs such as concierge shopping services
  36. 36. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The 5 Buckets in Detail  Shaping Markets – activities designed to make the market more receptive to your products or services, through 3rd party recommendations – Analyst relationships for B2B firms and social media blogging to influence perception  Infrastructure – investments into technology and training to support the marketing team – Enterprise Data Warehousing (EDW), analytics and marketing resource management software to support marketing intelligence functions
  37. 37. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled How Do Marketers Allocate Budget?
  38. 38. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The Difference – Leaders & Followers
  39. 39. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The Difference – Leaders & Followers
  40. 40. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled What Do We Know?  The Marketing Divide Is Real!  There is a Significant Difference Between Leaders & Followers  Leaders spend less on demand generation marketing and more on branding, customer relationships, and infrastructure to support marketing intelligence  Leaders have processes in place to optimize marketing management – it’s not done ad hoc  Leaders have significantly better sales growth and financial performance compared with the followers  And no surprise, key marketing processes of leaders include metrics to keep score and marketing intelligence
  41. 41. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled Using Metrics to Deal With Hard Economic Times
  42. 42. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled When the economy gets tough, senior management’s reaction is to aggressively cut costs – but they use a hatchet instead of a scalpel – causing significant impact on both short and long-term performance
  43. 43. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled Marketing may seem like an easy cost- cutting target due to the difficulty with which its returns are quantified – but when you understand the link between investment into marketing and performance during and following a recession.
  44. 44. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled In a study covering 16 different industries from 1980 – 1985, results showed that firms that maintained or raised their advertising expenditures during the 1981 – 1982 recession averaged significantly higher sales growth during the recession and the three years after.
  45. 45. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled By 1985, sales of companies that took an aggressive advertising approach during the recession had risen by 256% over those who lowered or failed to maintain their advertising spending
  46. 46. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled In the 2001 technology industry recession, Intel invested $2 billion in new chip manufacturing facilities and aggressively marketed new dual-core technology in order to grab market share from competitor AMD
  47. 47. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled In 2008, three years into a recession in construction, Johnson Controls rolled out a new ad campaign continuing its ‘‘Ingenuity Welcome’’ effort. The campaign, which included significant print and online advertising, demonstrates Johnson Controls’ efforts to build energy-efficient environments for customers.
  48. 48. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The First Step – Defining the Marketing Intelligence Strategy
  49. 49. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The Framework
  50. 50. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled Know Yourself – Figure out which data are important using the 80/20 rule: ask what is the 20 percent of data that will give 80 percent of the value?
  51. 51. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled Know Your Customers – Fine-grained segmentation, which then leads ultimately to customer targeting and data-driven marketing activities.
  52. 52. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The Closing
  53. 53. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled In 1974, bar code scanners were introduced in retail, and for the first time this enabled the tracking of individual consumer product purchases at the point of sale
  54. 54. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled This technological innovation spawned ‘‘marketing science,’’ the idea that marketers could quantify marketing using analytic principles
  55. 55. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled Today, the Internet and cell phone networks are enabling the next leap in data collection of customer interactions with marketing
  56. 56. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled Now is the best and most exciting time to be in marketing
  57. 57. http://emagine-group.com Brand Focused, Socially Active, Digitally Enabled The new data-driven approaches and infrastructure to collect customer data are truly changing the marketing game, and there is incredible opportunity for those who can act upon the new insights the data provides
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