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Introduction to Marketing Intelligence - Part II
 

Introduction to Marketing Intelligence - Part II

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Lecture 3 of the Marketing Inte

Lecture 3 of the Marketing Inte

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    Introduction to Marketing Intelligence - Part II Introduction to Marketing Intelligence - Part II Presentation Transcript

    • The  Metrics   And  Why  They  Are  Important  To  Marketers  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • ‘‘Half  the  money  I  spend  on  marke)ng  is   wasted—the  problem  is  I  don’t  know   which  half.’’   -­‐  John  Wanamaker  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • ‘‘Half  the  money  I  spend  on  marke)ng  is   wasted,  but  today  I  know  which  half:  TV   adver)sing.’’  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • The  Metrics  That  Work  Ø  Non  Financial  Metrics   Ø  Financial  Metrics   –  Brand  awareness   –  Profit   –  Test-­‐drive   –  Net  present  value  (NPV)   –  Churn   –  Internal  rate  of  return   –  Customer  sa)sfac)on   (IRR)   (CSAT)   –  Payback   –  Take  rate   –  Customer  life)me  value   (CLTV)    HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • The  Metrics  That  Work  Ø  New  Age  Metrics  (Internet   Ø We  will  have  an  in-­‐depth   Metrics)   discussion  of  Internet   –  Cost  per  click  (CPC)   marke)ng  best  prac)ces   –  Transac)on  conversion   Ø Give  mul)ple  examples  of   rate  (TCR)   how  to  use  the  Internet  to   –  Return  on  ad  dollars   radically  improve  marke)ng   spent  (ROA)   performance   –  Bounce  rate   –  Word  of  mouth  (WOM)   (social  media  reach)  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   Ø  A  stamped  ‘‘raw’’  metal  plate  was   delivered  to  exis)ng  Turbo  Cab  owners   to  coincide  with  the  press   announcement  of  the  new  product   launch   Ø  The  mailing  provided  personalized  log-­‐ in  creden)als  and  encouraged  visits  to   the  web  site  with:  ‘‘The  raw  Porsche   911  Turbo  Cabriolet  awaits  your  color   selec)on.’’   Ø  On  the  web  site,  the  customers  chose   their  favorite  color  and  ordered  a   personalized  Turbo  Cab  poster  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • The  Product  Launch   Ø  The  design  of  the  campaign,  integrated   with  the  Internet  web  site,  enabled   end-­‐to-­‐end  tracking   Ø  There  were  2,700  unique  log-­‐ins  with   an  average  session  )me  of  almost  15   minutes,  and  5,670  posters  were   ordered   Ø  Interes)ngly,  there  was  also  a   significant  WOM  component,  with   nearly  500  send-­‐to-­‐a-­‐friend  invita)ons   Ø  The  campaign  overall  had  a  30  percent   response  rate,  and  38  percent  of  Turbo   Cab  buyers  during  this  period  received   the  mailer  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • The  Product  Launch   Ø  The  response  rate  and  )me  on  site  is   truly  amazing  given  the  high  cost  of  the   product  -­‐  $130,000     Ø  Target  demographic:  busy  execu)ves,   lawyers,  and  doctors.     Ø  This    example  is  that  the  direct-­‐mail   marke)ng  was  designed  for   measurement  and  was  integrated  with   the  Web,  enabling  the  capture  of   customer  response  data  and   iden)fying  poten)al  leads    HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • Customiza)on  and  marke)ng   intelligence  can  have  a  significant  and   measurable  performance  impact  for   both  small  and  large  firms  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • DuPont  Tyvek  HomeWrap     &   NASCAR  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • DuPont  Tyvek  HomeWrap   Ø  DuPont  Tyvek  is  a  well  known  US   brand   Ø  The  product  is  successful  because  of   the  innova)ve  proper)es  of  the   product  and  the  marke)ng  strategy   that  DuPont  used   Ø  Tyvek  has  a  unique  property  that  keep   liquid  water  from  passing  through   making  it  extremely  durable   Ø  Tyvek  is  used  in  packaging,  protec)ve   apparel,  envelopes,  covers,  graphics   and  home  construc)on   Ø  It  is  extremely  useful  in  the   construc)on  industry  where  it  is   wrapped  around  the  building  frame  to   keep  mold  and  mildew  out  while   protec)ng  homes  &  buildings  from   water  damage  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • The  Challenge   Ø  Marke)ng  Intelligence  and  marke)ng   metrics  start  with  the  principle  of   keeping  score  for  all  major  marke)ng   ac)vi)es   Ø  This  is  challenging,  since  the   adver)sing  is  designed  to  brand  Tyvek   by  crea)ng  awareness  for  the  product   and  an  emo)onal  atachment  that  your   home  is  safe  with  Tyvek   Ø  In  addi)on  to  the  print  marke)ng,   DuPont  used  the  sponsorship  of  Jeff   Gordon  in  NASCAR.  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • NASCAR   Ø  NASCAR  is  an  extremely  popular  sport   in  the  United  States   Ø  It’s  also  very  interes)ng  from  the   marke)ng  perspec)ve   Ø  It  is  the  #1  in-­‐person  atended  spor)ng   event  and  the  #3  most  watched  sport   in  the  United  States   Ø  Almost  80  million  people  regularly   watch  NASCAR   Ø  Combined  with  F1,  auto  racing  is  the   #1  live  event  in  the  world  today  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • Jeff  Gordon   Ø  DuPont  also  sponsors  Jeff  Gordon   Ø  Has  won  the  NASCAR   Championship  4  )mes   Ø  ESPN  rates  him  the  8th  most   recognized  sports  figure  in  the   United  States  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • Car  Branding  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • Ac)va)on  Campaign   Ø  Campaign  included  pain)ng  Jeff   Gordon’s  car  with  a  Tyvek  “TV  panel”   on  the  back  for  a  race  in  Kansas  &  TV   adver)sing  blanketed  the  Kansas  area   during  the  race  to  build  customer   awareness   Ø  Primary  focus  of  the  campaign  was  on   three  groups:   –  Retailers   –  Builders   –  Specialists  in  Construc)on  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   Ø  The  offer  was  for  an  ‘‘ul)mate  race   weekend’’  luxury  box  for  the  race  and   opportunity  to  actually  meet  Jeff   Gordon   Ø  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  exis)ng  retailers  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • The  Results   Ø  438  retailers  signed  on   – 202  new  and  236  exis)ng   – 186%  sales  increase  during  the   promo)onal  period  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • The  Weakness  of  the  Measurement  Ø A  weakness  of  the  marke)ng   Ø Tyvek  logo  that  is  visible  on   measurement  was  that  the   all  new  construc)on  that   impact  of  the  brand  and   uses  the  Home  Wrap  product   awareness  component  of  the   Ø The  following  was  posted  on   marke)ng  was  not  captured   the  www.NASCAR.com  blog:   par)cularly  well  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.    HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • We  didn’t  put  it  together  for  a  couple  of   months,  but  every  )me  we  would  walk   by  or  drive  by  a  new  housing   development  Jeff  Gordon  almost  always   had  a  house  there.    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.  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • The  takeaway  is  that  the  Tyvek  Home   Wrap  campaign  primary  objec)ves  were   designed  to  be  measured;  DuPont   marke)ng  was  keeping  score,  and  the   pre-­‐post  change  in  number  of  pallets   shipped  jus)fied  future  marke)ng   investments.  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,  you  most  onen  hear  the   percentage  spent  on  TV,  print,  Internet,   direct  mail,  telemarke)ng,  and  so  on.  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • But  this  breakdown  is  not  par)cularly   useful,  since  it  does  not  tell  us  what   these  organiza)ons  actually  do  with   their  money.  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • What  is  the  intended  outcome  of  the   marke)ng?  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • We  want  to  know  what  marke)ng   investments  are  actually  intended  to  do   or  achieve?  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • We  define  5  buckets  of  funding  based  on   achieving  different  goals  and  objec)ves  –   such  as  demand  genera)on,  branding/ awareness,  customer  rela)onships,  shaping   markets  and  infrastructure.  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • The  5  Buckets  in  Detail  Ø  Demand  Genera:on  –  marke)ng  ac)vi)es  to  drive  revenues   in  a  rela)vely  short  )me  period  aner  the  campaign   –  Sales,  coupons  and  events  Ø  Branding  &  Awareness  –  marke)ng  ac)vi)es  drive  awareness   and  can  include  sponsorships,  naming  rights  to  events  or   proper)es,  and  adver)sing  specifically  for  awareness,  not   promo)ng  an  upcoming  sale  Ø  Customer  Rela:onships  –  marke)ng  focuses  on  crea)ng  a   personal  link  to  the  customer  that  drives  loyalty  and   engagement   –  Thank  you  notes  aner  purchase  and  loyalty  programs  such   as  concierge  shopping  services  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • The  5  Buckets  in  Detail  Ø  Shaping  Markets  –  ac)vi)es  designed  to  make  the  market   more  recep)ve  to  your  products  or  services,  through  3rd  party   recommenda)ons   –  Analyst  rela)onships  for  B2B  firms  and  social  media   blogging  to  influence  percep)on  Ø  Infrastructure  –  investments  into  technology  and  training  to   support  the  marke)ng  team   –  Enterprise  Data  Warehousing  (EDW),  analy)cs  and   marke)ng  resource  management  sonware  to  support   marke)ng  intelligence  func)ons  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?  Ø  The  Marke)ng  Divide  Is  Real!  Ø  There  is  a  Significant  Difference  Between  Leaders  &  Followers  Ø  Leaders  spend  less  on  demand  genera)on  marke)ng  and   more  on  branding,  customer  rela)onships,  and  infrastructure   to  support  marke)ng  intelligence  Ø  Leaders  have  processes  in  place  to  op)mize  marke)ng   management  –  it’s  not  done  ad  hoc  Ø  Leaders  have  significantly  beter  sales  growth  and  financial   performance  compared  with  the  followers  Ø  And  no  surprise,  key  marke)ng  processes  of  leaders  include   metrics  to  keep  score  and  marke)ng  intelligence  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’s  reac)on  is  to   aggressively  cut  costs  –  but  they  use  a   hatchet  instead  of  a  scalpel  –  causing   significant  impact  on  both  short  and   long-­‐term  performance  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • Marke)ng  may  seem  like  an  easy  cost-­‐ cuxng  target  due  to  the  difficulty  with   which  its  returns  are  quan)fied  –  but   when  you  understand  the  link  between   investment  into  marke)ng  and   performance  during  and  following  a   recession.  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  adver)sing   expenditures  during  the  1981  –  1982   recession  averaged  significantly  higher  sales   growth  during  the  recession  and  the  three   years  aner.  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • By  1985,  sales  of  companies  that  took  an   aggressive  adver)sing  approach  during   the  recession  had  risen  by  256%  over   those  who  lowered  or  failed  to  maintain   their  adver)sing  spending  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • In  the  2001  technology  industry   recession,  Intel  invested  $2  billion  in   new  chip  manufacturing  facili)es  and   aggressively  marketed  new  dual-­‐core   technology  in  order  to  grab  market   share  from  compe)tor  AMD  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • In  2008,  three  years  into  a  recession  in   construc)on,  Johnson  Controls  rolled  out  a   new  ad  campaign  con)nuing  its  ‘‘Ingenuity   Welcome’’  effort.  The  campaign,  which   included  significant  print  and  online   adver)sing,  demonstrates  Johnson  Controls’   efforts  to  build  energy-­‐efficient  environments   for  customers.    HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • The  First  Step  –  Defining  the  Marke:ng   Intelligence  Strategy  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  important   using  the  80/20  rule:  ask  what  is  the  20   percent  of  data  that  will  give  80  percent   of  the  value?  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • Know  Your  Customers  –     Fine-­‐grained  segmenta)on,  which  then   leads  ul)mately  to  customer  targe)ng   and  data-­‐driven  marke)ng  ac)vi)es.  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  retail,  and  for  the  first   )me  this  enabled  the  tracking  of   individual  consumer  product  purchases   at  the  point  of  sale  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • This  technological  innova)on  spawned   ‘‘marke)ng  science,’’  the  idea  that   marketers  could  quan)fy  marke)ng   using  analy)c  principles  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • Today,  the  Internet  and  cell  phone   networks  are  enabling  the  next  leap  in   data  collec)on  of  customer  interac)ons   with  marke)ng  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
    • Now  is  the  best  and  most   exci)ng  )me  to  be  in  marke)ng  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  marke)ng  game,   and  there  is  incredible  opportunity  for   those  who  can  act  upon  the  new  insights   the  data  provides  HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED