Time to rethink marketing ?



                              Richard Meyer
The signs are everywhere
Americans Still Cutting Back on the Small Things to Save
Money

 (45%) say they are brown baggin...
Retailers are eliminating brands
  The world's biggest retailers are wrestling with having too many
   types of brand-nam...
Demand for simplicity is increasing




Consumers are seeking uncomplicated, user-friendly products and services
         ...
It’s a consumers world now
  Easy access to information and friction- free purchasing is
   making consumers ever more ag...
Brand extension = consumer confusion
  The feeling is that as these companies keep extending their [product] lines, it's
...
And way too many brand choices
  As a consumer, "Do I really need to decide between 15 different types of
   detergent wh...
Marketers are stumped
Yet some brands are doing well
Because they focus on the customer
While others focus on price
But price leads to a spiral




   If you keep lowering your price or offer more promotional
allowances you’re losing bran...
So what’s more important ?




      Market
      Share       Profitability
New Metrics of new marketing

        OLD METRIC               NEW METRIC
    Product Profitability    Customer Profitabil...
Instead of product manager driven
Customer driven
Customer driven organization
Customer Service

             Empower customer service people to solve customer
 Customer   problems on the spot.
  Serv...
Market Research

            Don’t use market research to validate what you should already
 Market    know.
Research
    ...
Customer Relationship Management

             Focus all your efforts on managing the customer
           relationship.
 ...
Research & Development
           Is your R&D customer focused or do they do what’s best for
          your business and ...
And all this is bought together by
Chief customer officer
“An executive that provides the
comprehensive and authoritative view of
the customer and creates co...
Drive profitable customer behavior

 To help customers spend more,
and more often, the CCO must
focus on initiatives such...
Delivering and demonstrating value

 CCO must strive to deliver
demonstrable value to all
stakeholders, such as the CEO,
...
Create a customer-centric culture
 Strong, customer-centric
culture complete with
accountability and ownership at
all lev...
Today your company is your brand
Outraged by corporate malfeasance, people are punishing
         companies for unethical ...
In the end….
Your decisions on how you treat your customers reveal who and
what you really value.
  The best marketing in ...
About me
  Richard Meyer

  My CV http://www.richardameyer.com

  My marketing BLOG http://www.richsblog.com

  MY DTC...
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Rethinking Marketing

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It's time to rethink marketing and reorganize the organization around your best most profitable customers

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Rethinking Marketing

  1. 1. Time to rethink marketing ? Richard Meyer
  2. 2. The signs are everywhere Americans Still Cutting Back on the Small Things to Save Money  (45%) say they are brown bagging lunch instead of purchasing it, with 8% having considered doing so;  Two in five (39%) are going to the hairdresser/barber/stylist less often and 8% have considered doing so;  One-third of Americans (34%) have switched to refillable water bottles instead of purchasing bottles of water while 10% have considered doing so;  33% of U.S. adults have cancelled one of more magazine subscriptions, one in five (19%) have cancelled a newspaper subscription and 22% have cancelled or cut back on cable television  One in five Americans say they have cut down on dry cleaning (22%) and stopped purchasing coffee in the morning (21%)
  3. 3. Retailers are eliminating brands   The world's biggest retailers are wrestling with having too many types of brand-name products. At the same time, shoppers are buying less and looking for bargains.   Unless a particular brand is a top seller in its category, it's getting knocked off the shelf -- and sometimes getting replaced by a cheaper store brand.   Market research firm ConsumerEdge Research, expects Wal-Mart and other sellers will trim several name-brands across categories in coming months, or negotiate deals to get better pricing.
  4. 4. Demand for simplicity is increasing Consumers are seeking uncomplicated, user-friendly products and services that simplify their lives.
  5. 5. It’s a consumers world now   Easy access to information and friction- free purchasing is making consumers ever more agile—and less loyal.   Outraged by corporate malfeasance, people are punishing companies for unethical governance.   Even those who don’t need to economize are pursuing a more wholesome and less wasteful life.
  6. 6. Brand extension = consumer confusion   The feeling is that as these companies keep extending their [product] lines, it's only causing confusion for shoppers and not really driving them to buy more products.
  7. 7. And way too many brand choices   As a consumer, "Do I really need to decide between 15 different types of detergent when I go to a store?"
  8. 8. Marketers are stumped
  9. 9. Yet some brands are doing well
  10. 10. Because they focus on the customer
  11. 11. While others focus on price
  12. 12. But price leads to a spiral If you keep lowering your price or offer more promotional allowances you’re losing brand equity and making it harder to compete against store brands.
  13. 13. So what’s more important ? Market Share Profitability
  14. 14. New Metrics of new marketing OLD METRIC NEW METRIC Product Profitability Customer Profitability Current Sales Customer lifetime value Brand Equity Customer equity Market Share Customer equity Mass Market Ultra target market Segmentation Microsegmentation Mass Message Personally relevant messages Talking Listening Gross Rating Points Brand Ambassadors via social media
  15. 15. Instead of product manager driven
  16. 16. Customer driven
  17. 17. Customer driven organization
  18. 18. Customer Service  Empower customer service people to solve customer Customer problems on the spot. Service  Customer service is not an integral part of your brand & company.  Have your marketing people call customer service as a customer to ensure that the experience is representative of your brand.  Ensure that customer service people have a way to alert key decision makers as problems become prominent.  Quantify customer service complaints and solve bottlenecks quickly or else your marketing dollars could be wasted.
  19. 19. Market Research  Don’t use market research to validate what you should already Market know. Research  Market research should provide insights not validation.   Social media can provide a wealth of valuable insights in real time.  Web analytics can actually show you how consumers are going through the decision making process when it comes to your product.  Ensure that when you do market research that the panel is representative of your best customers.  Market research online can save you lot’s of time and money.
  20. 20. Customer Relationship Management   Focus all your efforts on managing the customer relationship. CRM  This means listening to what your customer wants and ensuring that the relationship is of value to your customers  Segment your audience by demographics and psychographics to ensure that CRM communication is personally relevant.  Measure and optimize CRM programs and evolve into more segments if necessary. This is essential in an era of microsegmention.
  21. 21. Research & Development  Is your R&D customer focused or do they do what’s best for your business and production costs? R&D  If you have a hard time explaining what your product does to customers in prototype than you’re way off the mark.  Focus on making life easier for consumers.  If you improve the product but not the customer brand experience you’re farting in the wind.
  22. 22. And all this is bought together by
  23. 23. Chief customer officer “An executive that provides the comprehensive and authoritative view of the customer and creates corporate and customer strategy at the highest levels of the company to maximize customer acquisition, retention, and profitability.” Responsibilities include;   Drive profitable customer behavior   Create a customer-centric culture:   Delivering and demonstrating value to the CEO, the Board, peers, and employees Your decisions reveal who and what you really value
  24. 24. Drive profitable customer behavior  To help customers spend more, and more often, the CCO must focus on initiatives such as;   profitability segmentation   customer retention  customer loyalty, satisfaction  improving the customer experience.  CCOs should use in-depth customer insight to inform the sales and marketing efforts to acquire more of the “right.
  25. 25. Delivering and demonstrating value  CCO must strive to deliver demonstrable value to all stakeholders, such as the CEO, the Board, and peers.  CCOs must be very clear about their performance metrics to allay concerns about performance.
  26. 26. Create a customer-centric culture  Strong, customer-centric culture complete with accountability and ownership at all levels in the company.  CCOs must prioritize customer initiatives to drive the most profitable initiatives with the greatest customer impact.  They must put a face on customers and help employees (especially the non-customer- facing employees) remain focused on driving customer value.
  27. 27. Today your company is your brand Outraged by corporate malfeasance, people are punishing companies for unethical governance.
  28. 28. In the end…. Your decisions on how you treat your customers reveal who and what you really value. The best marketing in the world is not going to save your company or brand if you can’t execute and put the customer at the center of everything you do. Peter Drucker was right “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself”
  29. 29. About me   Richard Meyer   My CV http://www.richardameyer.com   My marketing BLOG http://www.richsblog.com   MY DTC BLOG http://www.worldofdtcmarketing.com Marketing linchpin who is an original thinker, provocateur, and passionate about branding and marketing. Leader who understands the challenge of of making human connections inside and outside the organization. Change maker who strives to bring new creative thinking to current business problems to provide solutions. The only way to stand out is to exert emotional labor and be seen as indispensable and to produce interactions that organizations and people care deeply about. Marketer who has a depth of knowledge combined with excellent judgment

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