Putting Accountability into Marketing

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Presentation as given to Communicatiekring Nijmegen in 2011

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Putting Accountability into Marketing

  1. 1. Marketing AccountabilityRonald VeltenDirector Marketing, Communication & CitizenshipThursday April 14th 2011
  2. 2. Objectives of today MY VIEW ON SOME FOOD TWO-WAY ACCOUNTABILITY FOR THOUGHT DISCUSSION2
  3. 3. + + BDR -award dinner5
  4. 4. 1
  5. 5. + + BDR -award dinner = An unprecedented opportunity to transform the traditional marketing function into a powerful business driver13
  6. 6. Accountability.Is a behavioral thing with unprecedentedpossibilities enabled by a smarter planet
  7. 7. RAISE YOUR HANDIf you think marketing has an accountability problem
  8. 8. Accountability to the Business: Making MoneyWhich % of Which % time do Sr. Which % of Sales Which % of TVmarketers define Marketers spend on Promotions are advertisingclear objectives for their media strategy Unprofitable? campaigns generatetheir campaigns? (= largest budget negative ROI? item)?46% 2% 85% 82%WARC, 2007 EMM, 2005 UCLA, 2004 Deutsche Bank, 2004
  9. 9. Over 80% of the ROI of any Marketing Strategy/Initiative is left to chance 31% of projects are canceled before completion. 53% of projects cost nearly double of original estimates. only 16% of projects come in time and budget.Source: Management Centre Europe
  10. 10. Houston, we have a problem
  11. 11. Marketers are faddish, irresponsible, …don’t think like business people …more akin to a recalcitrant child …McKinsey & Company, CEO/CMO Survey, 2005
  12. 12. Marketers: Withhold research Take credit for other’s work Lack structure Are always in meetings Work from 10 to 4 Have long lunches Unaccountable, untouchable Seek quick promotions ChurnCare about cars, stats and lunch Use jargon Slippery Expensive Cranfield University
  13. 13. Accountability,Something we must take seriously to sustain our function
  14. 14. Marketers say“Our campaign generates the branding and strong creative we need to differentiate ourselves in the marketplace.”The CEO/CFO wants to hear…“Our analysis shows us that our € 3 million campaign generated an incremental € 22.3 million in revenue. We can continue to generate ROI up to a € 4.5 million ad spend, generating an additional € 10.6 million in incremental revenue, at which point broad media advertising becomes saturated for our market.”Source: CFO vs. CMO Smackdown, PMD Professional, 2005
  15. 15. Accountability.It’s not about measuring as such, its about our effectiveness and efficiency
  16. 16. And yes …..You have to measure for it
  17. 17. OK …. And now
  18. 18. ATTITUDE AMBITION ACCOUNTABILITY30
  19. 19. The greatest dangerfor most of usis not that our aimis too high andwe miss it, butthat it is too low andwe reach it -Michelangelo 3
  20. 20. 32
  21. 21. B.E. S.M.A.R.T
  22. 22. Marketers (and Agencies) need to show accountability & effectiveness, not just measurement Everything has a Key Performance Indicator (KPI) (without the above, Marketing gets The ROI Question)
  23. 23. Creating a culture of accountabilityAct as a proft center, not cost centerBe Outward-in oriented; Focus Your Business on the CustomerBe Trustworthy; Make Implementation HappenBe Business Savvy; Demonstrate Financial ROIBe Ambitious, and dare to admit failureStart now, start small
  24. 24. Demonstrate Financial ROIMarketing Accountability BUDGET ALLOCATION MEASURE & PREDICT Case: German insurance company Case: Indian Tea company, Greek Telco.
  25. 25. Make Implementation HappenMake deadlines & align employees, agencies, vendors, retailers, … Companies with aligned marketing & sales - grow 5.4 % faster - are 38% better at closing - loose 36% less of their customers MarketingProfs Benchmark Report 2005
  26. 26. Marketeers and agencies need to become a Swiss Army Knife • Planning confident • Implementation skilled Creative thinkers• Business savvy • Optimization focused • Analysis enthusiast
  27. 27. 6 steps to implement accountability1. Define the end-goal2. Define the in between milestones and KPIs3. Set-up a measurement system4. Set-up an governance structure5. Sustain the momentum6. Learn & Invest in skills
  28. 28. Ask yourself the following questions Relevance How do I add value to the business Alignment How do I proof that I am focused on the success of the business, not the size of my budget Rigor How do I get a fact-based, disciplined approach to strategy and execution49
  29. 29. Visit us at TheCMOSite.com Or contact me at
  30. 30. 52

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