SapientNitro Global Marketing Series: Part Two – The New Global Marketing Mindset


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Our CMO Global Marketing Readiness Study, a 6-month research study of 114 CMO-level marketers, has culminated in three separate points of view on the future of global marketing. The second article of The Evolution of Global Marketing series posits a new “Global Marketing Mindset” of the future CMO — one more comfortable with technology, consumer insight, analytics, and multi-disciplinary strategy teams.

For the full series and supporting infographic "Obstacles to Global Marketing," please visit our blog:

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SapientNitro Global Marketing Series: Part Two – The New Global Marketing Mindset

  1. 1. SapientNitro Global Marketing SeriesTheNew GlobalMarketing MindsetArticle 2 of 3 The Evolution of Global Marketing | By Freddie Laker and Hilding Anderson
  2. 2. Executive Summary CMOs are struggling to adapt to a world that is fundamentally different from when they started their careers. Disruptive digital technologies and the new expectations of the global consumer are forcing global firms to adjust and innovate. At SapientNitro, we have made a significant effort to understand how these changes are impacting large global organizations. What we found was surprising: just 15% of senior marketers are prepared to deal with the rapidly changing consumer, and just 8% believe agencies are succeeding in their support of global brands. This should be a wake-up call for global marketers. To further develop an understanding of the causes and implications of these trends, we have conducted a 6-month study of 114 CMO-level marketers, including one- on-one interviews with former or current CMOs including The Home Depot and Intercontinental Hotels. Our research has culminated in three articles. The first is focused on identifying the obstacles, and understanding the implications of these new challenges. The second posits a new “Global Marketing Mindset” of the future CMO — one more comfortable with technology, consumer insight, analytics, and multi-disciplinary strategy teams. The final article explores the implications of these trends for agencies — how agencies can better support large global brands; it also points out major areas where they are currently failing. Together, these pieces represent our perspective on the future of global marketing. While it is a challenging future, it also is full of opportunities for innovative,?! adaptable, and entrepreneurial leaders and businesses.
  3. 3. INTRODUCTION Understanding the New Global Marketing Mindset Strategy – Complexity Drives a New ApproachCMOs are operating in a new environment, one which, as Top CMOs are embracing a substantially new approach toward Social media is the classic example of this ‘silo busting.’we noted in “CMOs Reveal Global Marketing Challenges,” strategy; multiple disciplines must be represented on strategy Businesses and agencies frequently don’t know where socialraises major new challenges to how global brands teams. Specifically, creativity, deep technology knowledge, data media experts should sit, as it has relevance to and informs fluency, mastery of multiple business domains, and the ability a variety of different areas including PR, customer service,operate. Disruptive technologies and changing consumer to manage myriad specialists all should be represented. advertising, and marketing. The strategists of tomorrow needbehavior are making it more difficult to operate efficiently to understand the implications of strategies on all areas of theon a global basis. Our research shows that senior Having too many people at the table is problematic. business in the increasingly connected world.marketers feel that driving successful marketing ona global scale remains a challenge and will become It becomes a democracy. The best ideas should We’re seeing the initial moves toward this vision. Leading CMOs rincreasingly challenging with each passing year. win, not the loudest people. [You need to] find the are creating integrated marketing councils chaired or led by strategic partner who can deliver the right ideas. connecto one agency, which then marshals the skills and experience ofBased on this research, we believe in the rise of SVP Global Media at large global CPG firm other agencies on the council. This structure helps organizea new global marketer. This new global CMO has and structure the conversation, managing the number of voices negotiatorcharacteristics of a traditional marketer, but also The new mindset is about integrating a breadth of skills into at the table. one person or a small team. These highly desirable individualsincludes skills traditionally associated with a CTO and can speak to brand as well as to digital and data; they can CMOs must choose strategists who can navigate the differenteven the relatively recently-created CXO offices. A decade speak to the business contribution of all marketing efforts and personalities and languages of the various business areas.ago the eCommerce or Digital organization would have to how those marketing efforts impact the business. This new They need to be adept negotiators and connectors and bring anreported to the CIO, but today, we’re seeing about 50% strategist must be comfortable with the technology tools at understanding of different terminologies and languages. Theyreport to the CMO, the single largest bucket of C-level their disposal, drive meaningful insights from all of the new are often more like interpreters.oversight for Digital. You’re also seeing the rise of sources available, think across cultures, and be able synthesizeDigital as a CEO issue 1. these materials into future opportunities. Senior leaders with the new global marketing mindset recognize the evolution of strategy. At the senior level, theyMastering this evolved global marketing mindset could In our research, the role of the strategist--the key voice ensure the right teams and skills are present throughout the matching business needs to the consumer insights-- was global what defines the most successful brands of the next reter also recognized. Often CMOs rely upon agencies to providedecade. But having a global mindset isn’t just for globalbrands; as businesses look to export their success into this thinking; in fact, 89% of marketers choose their agency We’re hiring a different person. It is not enough to partners based on the strength of their consumer insights 2. strategistother markets, brands must increasingly defend against The new mindset-driven CMO embraces consumer insights be smart enough to just do the job. You also havenew global competition. and strategists who can use traditional research techniques in to be approachable, create a shared vision, and nterp conjunction with the tremendous access to data now availableOur research and experience has shown that at a global and local level. understand digital – all in a team environment. Andisproportional success comes through adopting a important ability is to have the strategic vision, tonew global marketing mindset grounded in five core Strategists are now shaping new experiences, products andinter-connected pillars: strategy, experience, data, services, and they deliver customer service across platforms influence and align around where business is going ivE itechnology and organization. and spaces. Nike Plus and Nike Fuel Band are perfect - without resorting to the hammer. North American CMO examples of the evolution of marketing as a service. Nike Plus is a marketing tool, a service, and a product. 2 89% of CMOs believe consumer insights capabilities are “moderately”1 Forrester Research “Best Practices In Organizing For eBusiness” or “extremely important” in the agency selection process. Creat December 2009, and Sapient’s estimate of CMO reporting structures in 2012
  4. 4. no experience finishes wEXPERIENCE DESIGN (AT A GLOBAL LEvEL) where ithou e s, enc orie t lea s t ding p e ri r nea a con g exThe second element of the new global marketing mindset is a concept of i sumer n -l into another engagiexperience design and the “organizing idea.” on nIn our research, an integrated experience design remains some distance from ellreality. Just 9% of senior global marketers believe their marketing activities st tare fully integrated. The research also showed that improving coordination of Marketers mumarketing efforts across multiple digital and traditional channels is moderatelyor extremely challenging for over 82% of CMOs. And it is getting worse, with 53%noting the trend will get more challenging in the next 3 to 5 years.Senior marketers have spent many years discussing the merit of big ideas, butat a global level big ideas have far less impact in comparison with organizingideas. Organizing ideas aren’t campaign ideas but are an extension of the brand’spurpose that help to align the individual communication ideas within the broaderexperience space. The most successful organizing ideas focus on universal humantruths that work easily across cultures. Examples include Coca-Cola’s concept of‘Happiness’ and Apple’s ‘Challenging the Status Quo.’Storytelling itself has evolved to accommodate disruptive technologies. The storycontinues to play a powerful role in building brand connections, but marketersmust evolve their techniques to tell non-linear stories, where each experience hasno end. In effect, no experience finishes without leading a consumer into anotherengaging experience.These techniques lead marketers to a new conception of the experience, onewhich spans multiple touchpoints and is rooted in the customer’s journey with FIGuRE 6A:your brand across those touchpoints. Creating these experiences, manifestedfrom the vision of evolved strategists based on this level of insight across so many MuLTI-CHANNEL MARKETING IS GROWING MORE DIFFICuLTchannels, will take a new type of creative partner. Q: How challenging do you consider each of the following for your marketing organization?These “new global creatives” understands both multi-channel marketing and Is this less challenging, more challenging, or about the same as it was 5 years ago? In 3-5 years?multi-channel commerce; they adopt a systems thinking approach – systems ofideas which connects disciplines, skills, and objectives together. They bring richtechnology understanding and can dream of connected experiences that might link TODAY RELATIvE TO 5 YEARS AGO EXPECTED CHANGE IN 3-5 YEARSmarketing to ecommerce and retail. They are able to think about how their creative % responding moderately or extremely challengingideas are part of a larger global ecosystem. They will create brilliant insight-driven LESS MORE LESS MOREideas while still finding ways to drive efficiency and leverage scale. These “new Coordination of marketing effortsglobal creatives” embrace technology fluency; they stop thinking about technology across multiple traditional media and digital channels 82% 11% 53% 15% 43%altogether and instead think only about relevant consumer experiences.By now it is perhaps clear that the gap to achieve the new global mindset inexperience design is perhaps the greatest of any. Embracing the concept of anorganizing idea and then rolling it out globally will require an extended effort, anew set of partners, and skilled team mates.
  5. 5. on INESS NEEDS inf o rmati consumerBUS ins ig Data – Re-defining Consumer Understanding Marketing will soon be s ht Top performers absolutely must embrace the potential of modern analytics to redefine Global retailer Walmart has been consumer understanding. Knowing how to tease out the key relevant insights from forthcoming on their practice of analyzing digital by nature, it will just da the tsunami of big data will enable these CMOs to drive efficiencies as well as develop consumers’ social media posts to help rewarding experiences for consumers. The ability to measure and adapt is key to the new be integrated. Everyone will predict relevant products that a consumer marketing mindset. might desire while shopping online. Global be thinking and monitoring commerce giant Amazon now uses its Deep repositories of knowledge about consumers are being built from myriad structured in real-time.” massive database of sales and consumer ta and unstructured data: website traffic, application log data, purchase behaviors, social shopping data to provide behaviorally- media, CRM, marketing campaign responses, and even offline activities are now tracked Senior Marketer, Global Beverage Company targeted display ads to advertising partners. a and linked to a profile. Ever-increasing data is available from open third-party systems Tesco’s Clubcard data is leveraged through its ly own separate data agency, Dunnhumby, enabling it to target specific shopping behaviors na like Google Maps, real-time weather data, or even commodity price indexes in local markets. Together, these sources are not only providing entirely new global consumer with products and offers; Tesco’s recent initiatives include the ‘Share & Earn’ Facebook insights but are also creating opportunities to create more relevant and personalized experiences to individual consumers. app, which offers double Clubcard points to people who like, share and buy products on its ecommerce site. s is Companies’ appetite for This trend is also accelerating. In our research, Data accessibility throughout the organization emerged as a key factor for the future global marketing mindset. Companies like Harrah’s Hotels & Casinos give employees we found that 90% of the digital data today was data, guidance on how to created in the last two years alone 3. access to their vast loyalty data, enabling employees to create more rewarding and use it grows every year. Together, these sources are not only providing personalized experiences. Real-time marketing data should be accessible to internal marketing teams and agencies at both global and local levels not only to inform decisions They understand that entirely new ways to mine consumer insights but also to evolve experiences. things in traditional and across global markets but are also increasing opportunities to create more relevant and CMOs who have embraced this new marketing mindset will embrace the use of these digital can be optimized; personalized experiences to individual consumers new data sources and analytics and tie them into their work in meaningful and actionable ways. they need mastery of that or target groups. Data will increasingly demonstrate itself as one of the world’s most data. Senior Agency Marketer valuable commodities as our access to data rapidly re-defines our understanding of consumers. 3 IBM Consulting “What is Big Data: Bringing Big Data to the Enterprise” accessed July 2012
  6. 6. Figure 2: How Are Tech-Savvy Marketers Different? FIGURE 2 Much of the new breed of innovation Tech-Savvy1 Non-Tech Savvy Difference CMOs emphasizes the importance of deep % who strongly agreed % who strongly agreed technology knowledge on top of marketing To what extent do you agree with the following statement: expertise. How do these marketers ‘think different’ from traditional marketers? Most The importance of managing global campaigns notably, they place much more importance 55% 29% +25.4% CREAT is greater than it was 5 years ago. on managing global campaigns, relative to IVI five years ago. They also note the importance Back-end IT infrastructure to support digital of global funding of back-end infrastructure TY marketing is best built/funded at a global level. 43% 24% +19.5% and the challenges on changing consumer behavior. Finally, they’re less concerned The interconnectedness of today’s consumer is about creative capabilities when selecting breaking down the barriers between global and 40% 24% +16.3% agency partners relative to non-tech savvy local marketing. CMOs, likely due to their focus on cross- Our global marketing organization is prepared channel capabilities and the ability to build to deal with rapidly changing consumer trends 23% 12% +10.9% the technologies. around digitalization and globalization. Source: Q2 2012 online survey to 114 senior Building our brand’s Social Media communities marketers with global responsibilities 28% 18% +10.4% is best managed at a global level. How important are each of the following capabilities when selecting agency partners? Cross-channel expertise in both digital and traditional commerce 46% 24% +22.7% 4 Tech Savvy is defined as those who agreed or strongly agreed to the statement ‘I consider Best-in-class creative myself to be very knowledgeable about 52% 71% -19.0% technology (e.g. the back-end infrastructure for marketing programs)’ GY Technology – The Great Connector HN O LO Technology plays two key roles in global marketing. Yet in our research, just 1 in 5 senior marketers consider themselves EC ”very knowledgeable” about technology. Our survey results also indicate First, it acts as the great connector for marketers. Delivering multi- consistent differences in how technology-savvy marketers perceive theT channel marketing and commerce experiences at a global level is a world around them and the challenges they will need to overcome. complex affair. The one thing that unites the disparate channels is In fact, by 2017, CMOs will purchase more technology than CIOs 4. technology. Technology enables data collection and analysis to bring strategy to life. by 2017, CMOs will purchase more You don’t have to be a geek, but understanding and respecting technology will help deliver connected experiences to your audience. technology than the CIO. Technology, once viewed as a detriment to creativity, has the potential 4 Gartner High-Tech Webinar Series, “By 2017 the CMO Will Spend More Than the CIO” to be the greatest enabler of creative expression and brand innovation. January 3, 2012.
  7. 7. Second, technology also asks as the great connector for a different local relevance. In our survey, a strong majority of senior marketers (87%) collaborative partnership with IT, but also with regional and externalgroup – consumers. Digitization increases the rate at which ideas will agree or strongly agree that sharing digital assets across geographies partners. In our research, senior marketers who are more comfortablespread through communities. Increased conductivity means that ideas is key to ROI. But simply sharing is not sufficient. The latest iteration of with technology more strongly support collaboration by 20 points morecan be spread further with less investment, particularly by consumers. digital marketing platforms move beyond basic digital asset management than those who are less savvy. systems to establish a system for rapid production of multi-channelThis has huge implications at the global level. marketing initiatives across devices, markets, and even brands – all while In sum, successful marketers must have technology fluency in driving efficiencies. In our results, technology savvy marketers have a their DNA or build a strong team around them with a high level ofDigital communication technologies have been the ultimate disruptor higher natural affinity to cost savings and efficiency plays. technical fluency. Understanding the interplay of digital with real-in creating a new world of connected consumers. In many developing world experiences, and seamlessly integrating the brand across digitalmarkets, the proliferation of mobile devices is bringing entire countries Another indicator of top leaders is that these technology investments and non-digital channels are hallmarks of the new global marketingand consumers online for the first time. It’s the primary accelerator are being made at a global level – inevitable given the magnitude of the mindset. Technology understanding forms the foundation for the newfor globalization as it drives consumers into a more connected global investment. global marketing Marketers must be able to leverage technology to meetconsumers when they go looking for a brand online. These leaders are using technology to balance global and local, in manyConsumers also expect technology to deliver local relevance, even as ways the fundamental challenge of modern global marketing. It is more important than ever to Technology understanding What’s driving global forms the foundation fortheir voices resonate at the global level. For example, NPR tested geo- understand local nuance andlocal tagging to deliver local stories to the Seattle, Washington region over local consumer behaviors,a 4-month period in late 2011. NPR found that local posts outperformed investment is the absolute even as cost and efficiencyglobal stories six-to-one in terms of engagement rate on Facebook (likes,comments and shares as percentage of unique viewers). 5 Creating the expense of technology. For us to build separate CMS places an emphasis on centralization and reuse. the new global marketingright balance of global and local is more critical than ever. systems … in each country These senior leaders also mindset.One key indicator of a leader who has embraced this new marketing tend toward collaboration.mindset is the degree to which these leaders invest in technology just doesn’t make sense. Delivering these necessarysolutions such as digital marketing platforms. These marketing CMO at major retailer serving systems effectively at a 5 must enable companies to balance global efficiencies with North America, Europe, Asia global level requires a strong geotarget-facebook-content-at-scale/
  8. 8. Figure 3:Organizational Design – Aligning For the Future Team Coordination Is A Key Obstacle To Effective Global MarketingThe final element of the new global mindset is the human element. Today’s marketing approach demands Q: How challenging do you consider each of the following for your marketing organization?a new and very complex mix of people. In our survey, three-quarters (77%) of senior marketers report that Is this less challenging, more challenging, or about the same as it was 5 years ago? In 3-5 years?getting access to the right skills and people is moderately or extremely challenging.CMOs will need to get their organizations ready: a substantial look at the organizational structure and Today Relative To 5 Years Ago Expected Change In 3-5 Yearsmakeup is fundamental to the new mindset. % responding moderately or extremely challengingThe first step is acknowledging that existing structures are not sustainable and increasingly ineffective. less more less moreEighty-two percent of senior marketers reported that today coordination between digital and traditional is Coordination between digital andeither moderately or extremely challenging; getting access to the appropriate skills and people across the traditional marketing 75% 16% 56% 24% 37% teamsorganization is too difficult. Gaining access to the appropriate skillsIn our experience there is no one definitive method that will prepare a business to successfully adopt the and people across 77% 13% 36% 18% 38% the organizationnew global marketing mindset, but there are common themes that are delivering successful results.The right skills and people make all the difference. Technology fluent marketers, strategists and plannerswho worship data and think like global citizens, and multi-disciplinary creative types who dream without FIGURE 7 Coordination across teams – not just across marketing channels – surfaced as a key obstacle to effective global marketing. Senior marketers reported that digital andborders should permeate the organization. Digital can no longer exist only in a dedicated team; a traditional coordination is much more difficult than it was five years ago. Geography, language, skills and internal politics all conspire to create silos which reduce marketingsystematic organizational redesign of structures is necessary. effectiveness and increase costs. Source: Q2 2012 online survey to 114 senior marketers with global responsibilitiesGlobal companies in particular need structure and organization to drive innovation and reuse on a globalscale. These are two distinct areas of focus. Innovation is about creating pods or pools of specific skillsin multiple geographies and then establishing a way for them to collaborate. Reuse is about productizingsomething done once so that is becomes repeatable. CMOs must recruit the right skills to deliver, skills SapientNitro’s Multi-Channel Maturity Modelwe’ve listed earlier in this piece. Incentives People & Culture Processes Technology StructureDigital is helping spur on A balanced approach to local versus centralized conflict is Level 5: • Incentives broadly rolled • Distinct multi-channel • Processes updated for • Technology enables • Full update to optimal also part of the organizational elements. A multi-channel,global [centralized] investment multi-disciplinary mindset is more important today than Optimized Full roll-out, organization out • Continuously monitored/ culture embedded in organization multi-channel • Completed end-to-end tracking of multichannel customers structure for the organization type is nimbly responding / optimized / • Continuous cross-channel product lifecycle, shared • Use of flexible cloud-– especially into technology – in earlier years. Major teams such as ecommerce tend executing on metrics communicated conversations occurring future vision and scenarios based systems considered to be centralized. On the other hand, digital marketingbecause of the investment investment--once relegated to the regions–now must be Level 4: Limited Execution • Incentives adjusted in select cases • Roll out initial activities and partnerships, working • Core processes updated for multi-channel • Core technology upgrades rolled out • Structural changes for high-priority areasneeded. North American CMO at least somewhat coordinated globally. Implemented changes across high-priority groups, vision completed channelsThere is no one answer for the organizational structure in the new global mindset, yet there is also Level 3: • Plan developed for • Shared vision created • Plan developed for cross- • Close on major • Executives have identifiedno doubt that it will have to be addressed in a way that allows technology, data and experience to be Alignment addressing conflict • Broaden consensus channel visibility investments needed structural changesunleashed in the local and global markets. Gained consensus on • Determine approach to • Vendor identified needed design elements to be shaping culture changedeCommerce used to run as a separate business unit. We were our own Level 2: Assessment • Identification of where incentives are in conflict • Conversations started • Consensus built around • Current state processes identified • Identified gaps in cross channel tracking • Executives have shared vision of gaps and current Identified gaps and completed need for change • Gaps identified • Created baseline state challengesstartup. But now, with omnichannel, we’re seeing a melding of a lot of those established foundational vision & baseline metrics • Baseline metrics set • Consensus built around need for changesilos. Now digital expertise has to be throughout the organization – from Level 1: • Channel conflict and mis- • Culture fails to recognize • Internal processes • Technology gaps prevent • Organizational structurethe POS to customer engagement teams to the traditional direct marketing INITIAL Initial organizational aligned incentives slow the adoption of multi the value of multi-channel oriented to single-channel or siloed activities single view of multi- channel customer inhibits optimized multi- channel customer status channel operations • Lack of flexible experienceteams. We’re breaking down the barriers. North American CMO technologies
  9. 9. About our research Building on our team’s three decades of multi-channel marketing experience, SapientNitro conducted a series of 20+ detailed interviews with senior marketers within and outside of SapientNitro, and followed it up with a far-reaching survey to 114 senior global marketers and global CMOs. We also reviewed existing literature related to this topic. The majority of theFinal Thoughts research was conducted in Q2 2012. We have captured this research in three articles — the first focused on new global marketing challenges, and second on key elements of the global marketing mindset, and the third on fiveGlobal marketers face daunting challenges. The world in which their consumer lives is evolving more ways agencies are struggling with global brands today.quickly than many can keep pace with, but keep pace they must. Aggressive changes must be adoptedthroughout global marketing organizations to ensure they’re meeting the consumer in the moment,anticipating their next step, and innovating to capture those opportunities to build brand and drivecommercial results. About THE AUTHORS FREDDIE LAKER – is VP of GlobalBuild a strong foundation in technology and let it permeate your business. Embrace the deluge of data Marketing Strategy and has extensivecreated by consumers’ interactions with their digital world. Harness that data in meaningful ways and experience working across a broad rangebuild strategies that cross silos and approaches. Then, deliver the experience consumers are seeking of global clients. He actively speaks atwith brilliant and inspiring work that has unprecedented levels of relevance to the audience. leading conferences around the world on topics ranging from global marketing trends to emerging disruptive technologies.The tools are there. HILDING ANDERSON is a Sr. ManagerTop performing firms and their agency partners are already adopting some or all of the five keys to of Research + Insights, and focuses on digital strategy and the emerging digitalthe new global mindset to successfully build their brands with a worldwide audience. The five keys consumer for SapientNitro. He is also theto the marketing mindset – a new strategic mindset, embrace of the role of experience design, an editor for Insights 2013, Sapient’s annualappreciation of analytics and data, deep technology savviness, and organizational flexibility–combine digital trends shape the elements of the future marketers. Only the best prepared marketers who embrace thismentality will thrive. © Sapient Corporation 2012