Example: impact on profile of people to be hired in marketing departements. Skills evolve depending on economic context and technological evolution.Now: more and more generalist (crisis asks for flexibility and polyvalence), more and more project management skills (to coordinate the many agencies that specialise in facebook, mobile apps, …)
Estimate: marketing professionals in Belgium = 10,000
Marketers are not looking forward to 2012MCI historical low driven by the fact that a majority of Marketers expect a budget decrease – and that difference vs. those who expect a status quo or an increase is far bigger than in the crisis years 2009 and 2010; moreover teams expected not to growNow putting the CCI published monthly by National Bank of Belgium as it was when YMS is realized, we see that it is pretty similar to MCI: >0: means Marketers are in tune with their consumers<0: means Marketers are reactive i.o. proactive>0, <0 ? The choice is yours
The 3 buzzwords at the top of Marketers’ list reveal even more confusion:Social Media: have been presented as the ultimate thing that was going to make classic Marketing irrelevant – we observe that a majority of Marketers are not satisfied with results of social media activitiesMobile: an explosion had been announced for last year, which we are still waiting forROMI, Return on Marketing Investments: Marketers are also sending contradictory signals about this one: in the top 3 of buzzwords, but not in their top 5 of challenges; in a year where Marketing budgets are perceived to be under a never seen before pressure, one would expect Marketers to say: my biggest challenge and priority is to prove that money that goes to my team delivers.
No significant difference B-2-B / B-2-C (as on all other slides)What do Marketers see as their main threats ? Let’s first set the scene by looking at last year’s results. Now, on to 2012: 6 Marketers out of 10 now put “Increasing price sensitivity” in their top 3 threats, a clear sign that they have integrated the fact that consumers’ disposable income will shrink.Are also logically expecting these consumers to become less loyal, and of course the fight for consumers’ Euros will continue to increase.And the disappointing results on new media make that the feeling of lacking competences stays at a high level.
Now, to what Marketers see as their main challenges and here again last year’s results to start with.We see that the search for relevance remains in 1st position.New item is the pressure to do more with less.This question might look a bit provocative and let’s be honest it is meant to be. But, leaving Belgium for a second and moving to the UK, a recent poll by Reader’s Digest found that the advertising industry is the least trusted industry in the UK with 81% of consumers having little faith in the institution (we score even lower than politicians and civil servants – if that does not say that we have a problem of perceived relevance, what will ?)
Can we draw some conclusion of these first results ? We believe we can:Marketing budgets are under pressure, return on these budgets needs to be proven more than ever, jury is still out for the new tools presented as Marketing’s new magic, a pressure to do more with less we see there a call for FocusAnd Creativity, not the wild kind of it, but creativity meaning delivering relevance to customers, is needed more than ever.
OK, we know that marketers are challenged especially on budgetsSo what do they do? What tactics do they use?Very logically, they’re looking for results at the short term, so Brand activation and DM on the first places.Almost all other tactics decrease: less budget will be spent.One remark maybe: those numbers just indicate an increase or a decrease, no absolute budgetsWe have 2 remarks:Is brand activation the best way to generate loyalty, as this is one of the main challenges.We don’t believe so. On the contrary, we believe that it rewards disloyal clients, so big budgets with no long term results. We would like to warn for overspending in brand activiationDirect marketing is of course very valuable. If you use the right data. And the right message to the right target group. We have the impression that we receive more messages, especially online, but not more vlauable offers. Offers adapted to our needs. Honestly, wxe think marketers still use DM for pushing their business objectives without focusing enough on their customer. Direct marketing has become too much a mass medium with decreasing success rates as a result.
What media do we use?Well, owned media win, paid media loseAgain here: those figures do not tell anything about the size of the budgets, they just indicate the growth.This evolution is not unexpected. If you know your customer, you want to tough him directly. And with a more fragmented media puzzle, you have to choose , especciallywen budgets going down.Although I think this is a dangerous evolution. All the traditional media go down. I still believe traditional media brands are strong brands. Because of their specific context and specific target group. I truly believe that advertisers can work very successfully together. I don’t think any of you would like to live in a world wothout the very selective titles of newspapers, magazines, and radio channels. So it’s a kind of shared responsibility.Traditional media: please find the attractive formula to work together, break down the wall between the editors and dthe media houses. Advertisers: find the relevant context and the right message. It will be a win win for both.
Online is growing, and this is of course due to the interest in social mediaNot using social media seems unthinkableAnd the good news is that social media is measured more & more.The bad news: marketers are not satisfied with the resultsThat doesn’t mean social media is a hype. On the contrary.Social media are valuable, but we‘re not using the right KPI’s…. yetMany things are possible on social media, company pages, advertising, twitter versus FB, linked closed or open group discussions ….ad hoc campaigns, ongoing conversations ….but we didn’t find the right strategy yet. Traditional media often need to pave the way. And knowing that online and offline are not yet integrated at the fullest within the company, that’s not always considered in the right way.Workload and organization are underestimated. It ‘s easy to say: talk & listen to the customer, but who will do that? What is the policy to use? Who is involved. Who takes the lead?Social media in not a hype. It’s here to stay and it’t a valuable medium. But we can still approve the way we use it. And please do not feel obliged to use it. Especially if you don’”t have the resources and the structure yet.Billboards are not used for every campaign either.We have to use common sense: as not all messages appear on billboards, not all campaigns should have a FB page.Social media will never disappear but we have to be critical about the right strategy to use it.
Marketing became complex, for a while nowThe profile of the marketers has to change to be able to coop with the challenging timesWe need marketers to balance between sometimes very contradicting skillsHe has to be a Generalist and have an overview on the whole marketing scene. At the same time, as marketing has to be very curious about specialized marketing domains ….He has to be creative, we want him to look at thing s in a different way, makes links, use past experience in other situations …. At the same time he has to love numbers and understand the importance of in depth quantitative analysis.Marketing is a tough discipline, strict timings and processes are required. But it might be necessary to have guts, … so if you have an idea, convince the board and get it done, realize in a short term because the opportunity is there and now.Marketers need hard skills (f.i. MPM; CRM; Nielsen, GFK, …) but has to be good communicators, good intuition, build bridges internally…..Humility is important: listen to experienced marketers, but certainly to the consumer. At the same time: have a own vision and clear conviction, be able to make choices.Last but not least: we need passioned marketers that understand what the business is about. One that knows where the business is going ….End with : Agility & creativity might be more important than knowledge
So how will we deal with all those challenges?We as THOM , we want to give you our vision on how to deal with the complexity of marketing of today. Some guiding principles to help you to make the right choices.5 guidance principles, all equal important, all to follow simultainiously.We start with ….Focus, sounds easy, and everybody talks about focus now days.But we see a lack of focus. Marketers love to launch a lot, many innovations, many projects, many campaigns without consistency ….Focus is needed to simplify the complex marketing world and the world of customers.Focus in business but also focus for people (people do not have a burnout because of too much work, but because of doing too many different things)Second: Agility - the ability to change the way of working - it’s about processes, but also in the mindCreativity - not only about innovation - Also about looking at things in a different way, leave the standaards paths to deal with issues, mak links between different kinds of experiences & sectors, - About being curious - value and reward creative thinkingTangibility - we repeated it ove r& over again - measure, check, know, quantify, analyseSustainability - that’s the way to go - marketers should look at themselves very critical - didn’t we push too much - ask substantial questions: don’t we push too much? Don’t we waste too much (energy, packaging…) do we respect opur people enough, do we need to grow continiously?In summary: FACTS. FACTS is the way to go. Your marketing department has to be, or become FACTSFACTS, as a vision, a way to look at marketing, can help to make the right choicesIt sounds easy, and that’s a positive thing, but when we look behind those principles, we might discover that there are indeed some gabs and stepts to take to optimise our way of working.
Strategic consistency: make sure that the marketing strategyis in line withcompanystrategy: shouldbe a given, is notSegmentation & targeting: needs-based & margin segmentation.Makechoices & executeaccordinglyBrand & positioningconsistency: Consistent brand messages across all touchpointsFocus on a few coreproducts: resistthat cancer called diversification (even if itbrings short term €). Focus on owning a categoryCustomercentricity: stimulate/support customer focus at all levels – one canreadsometimesthat « there has never been a better time to be a customer », wellhonestlysomecompanies have gotit but a lot still have a long way to go.
Trends provide long term indication. Important to watch and analyze them proactively and to act. Systems should be put in place to monitor short term changes in sales, profit, satisfaction levels, market shares, etc. Process must put in place to act on them.The leader of theMarketing team should not only be aware that change is needed, (s)he should have the desire to change and be confident about things after change.The Marketing team should also be able to change. It should have the skills & tools for changing itself. It should be fast & flexible.
So many things have been said and written on creativity that it is difficult not to state the obvious.It starts with thecompany culture, and its capacity to attract and retain people with diverse backgrounds and profilesThere needs to be a simple process for generating idea, and the potential of ideas needs to be valued very quicklyOn top of these elements linked to companies, Marketers as individuals must show a positive, curious and humble attitude – what we describe as porosity and open-mindedness.
Marketing teams need to have KPI’s and dashboards in place to base decisions on facts.Before launching a marketing campaign, scenario analysis should be executed (worst-case & best case scenario’s). And there should be a post-evaluation of Return on Investment for each campaignWhat is the role & power of a marketing intelligence department (whatever its shape and size) ? Do they connect and share their analysis with strategic and operational Marketing departments ?Enough analytical skills present? Trainings provided? They are essential to implement a tangibility culture.
One might argue that Sustainability and thetriple P’s are something that happens at corporate level.We at THoM say yes, but Marketers have a leading role to play there:first of all because Sustainability is a key element of strategy, and that Marketing needs to drive company strategythen specifically on each of the P’s:on People: brands image, Marketers’ key responsibility, is influencing heavily how all stakeholders will interact with the company – just a concrete example: we might be in a crisis, but in 2015 (that’s tomorrow), in Belgium, demographics will make that there will be 500.000 jobs vacant because of a shortage of talents, and we also know that company performance (or perceived performance) on Sustainability is a key criteria when young talents make their shortlist of companies they would be willing to join on Planet well Marketing determines or at least can determine a lot of the company footprint via innovation, packaging, promotional items, etc. so please use these leversand on Profit because as Caroline was mentioning Marketers need to show a commitment to the business, and showing concern for Profit is a good placeto startSophie is now going to take you briefly through 2 examples that illustrate this model – they are not meant to be in-depth analysis, just illustrations.
Story to tell:Kodak was brand leader for decades in photography business but blinded by the focus on old way of fotography.They were seeing the change coming & had processes in place to detect the change. "marketing myopia“ was not the problem.The realissue was "marketing inertia" and being stuck in the old ways… They were too focused on its core.Management didn’t want to invest in new evolution (willingness) and was too slow when it had to (speed)FACTS: Brand leader for decades in photography business Invented the first digital camera in 1975 Kodak executives were not enthusiastic First digital camera was not launched until 23 years later, in 1998 From 145,300 employees in 1988 to 19,900 in 2009 Bankrupt on January 19, 2012Possible movies:http://www.youtube.com/watch?v=A1zzehTOKi0 funny illustration about change of photography business (2007)http://www.youtube.com/watch?v=G-UWxPpIn5w marketing analysis about decision of leaving digital business just before they went bankrupt.
Story to tell: Starbucks scores well on agility (system is simple enough), creativity (‘My Starbucks Idea’), tangibility (open sharing of financial results) and sustainability (Shared Planet, Ethos Water Fund, Global responsibility report, Starbucks Foundation, Youth Action, Community stores, …)FACTS:1971-2007: Starbucks sells ‘the coffee experience’: booming shares, one clear focus2007: focus is diverted to growth, expansion of number of stores, food offering, music offering, merchandise, …. Result is a declining share. The company takes action and Howard Schultz returns to get Starbucks back on track: returning to the core and start innovations thereE.g.: closing of all shops during 4 hours to get employees back to the core: making good coffeeE.g.Launching of new roasts2008-2009: refocus on coffee as core business and marketing the coffee experience: shares pick up again and have been on a strong rise ever since.Possible movies:http://www.youtube.com/watch?v=UfmKSsL3Lg0 Boring video but very applicable: about focus, tangibility & sustainabilityhttp://www.brandrepublic.com/bulletin/brandrepublicnewsbulletin/article/1121798/starbucks-gets-friendly-animated-spot/?DCMP=EMC-CONBrandRepublicdailynewsbulletinnice video, commercialhttp://www.youtube.com/watch?v=1Yy3Nc30Bz4general marketing insights Starbucks
CTA slide Q4 activities
IN SEARCH OF INSPIRATION 2012
Agenda 1. Setting the scene: Why (yet another) survey? 2. Key insights of the Yearly Marketing Survey 2012 3. Q&APresentation1 2
In a world where turbulence is the new norm, marketers need to continuously adapt Economical changes Technological changes As marketing consultants, we need to understand what will be the impactPresentation1 3
Gut feeling is important, but sometimes it’s not enough Hype or Just a fad or emerging trend? there to last? Can we How can we prove this? accompany our client? • Objective: Offer a deeper understanding of the top challenges facing marketers • Target: Marketing professionals (via STIMA congress or database) • Sample: 400+ respondents • Method: On-line questionnaire • Periodicity: Yearly (since 2007)Presentation1 4
Key benefit: reinforce position as marketing though leader • Illustrate, brings perspective • Turn hypes into numbers • Establish a discussion with new and existing clientsPresentation1 5
Key challenges: recruitment, investment, ROI • Translate data into insights (with point of views) • Resources (time, budget) • Estimating the ROI Investment Recruitment 19% Survey Event, 7% brochure, PR 74%Presentation1 6
Agenda 1. Setting the scene: Why (yet another) survey? 2. Key insights of the Yearly Marketing Survey 2012 3. Q&APresentation1 8
Marketing Confidence has never been so low 30 20 15 Index Value 13 12 15 10 4 2 0 1 -1 1 -3 -2 -3 2005 2006 2007 2008 2009 2010 2011 -6 2012 -10 -15 -20 -20 -24 -30 MCI CI (data from feb/12) N= 436 Far more Marketers expecting a budget decrease than a budget Teams expected not to grow increase#yms2012Presentation1 9
Buzzwords spread even more confusion Still waiting the boom expected in 2011 Creativity Conversation Other Authenticity Mobile Sustainability RoMI ContentMarketing CustomerExperience Relevance QRcode Not in Marketers’ SocialMedia top 5 challenges Results are disappointing#yms2012Presentation1 10
Price sensitivity / loyalty are by far Marketers’ top threats 59% Increasingly price-sensitive customers 51% 49% Decreasing loyalty of customers 52% 35% Increasing competition 42% 32% Lack of competences of new media 32% 0% 10% 20% 30% 40% 50% 60% 70% N 2012 = 436 2012 2011 N 2011 = 577 Consumers’ disposable This only but Discomfort vs. new income is shrinking, so (s)he intensifies media becomes less loyal competition#yms2012Presentation1 11
Challenges: Relevance remains Marketers’ Holy Grail 45% Making products and services more relevant for customers 53% 41% Creating a dialogue with customers 48% Innovating to create new markets and get the attention of 38% customers 35% 38% Do more with less due to budget constraints 37% Differentiating from competition 39% 0% 10% 20% 30% 40% 50% 60% N 2012 = 436 N 2011 = 577 2012 2011 Is this constant search for relevance revealing a deep concern that Marketers actually generate a lot of irrelevance?#yms2012Presentation1 12
Top threats and challenges are a clear call to more Focus and Creativity Marketers can’t afford to spread their resources thin They need to adapt their brand experience … or will be forced to join price wars#yms2012Presentation1 13
Marketers choose for short term tactics Expected budget evolution for marketing tactics Brand Activation 38% 18% Direct Marketing 37% 18% Point of sales materials 16% 3% Public Relations 25% 2% Guerilla marketing 11% -6% Sampling 6% -12% Events and trade fairs 19% -13% Advertising 6% -28% -14% Sponsoring -37% -50% -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 2011 net difference (%increase-%decrease) 2012 net difference (%increase-%decrease) N 2012 = 436 N 2011 = 577#yms2012Presentation1 14
Owned media win, paid media lose Expected budget evolution in media Online 64% 56% Mobile 31% 29% Own brochures and magazines 33% 19% Outdoor 9% -2% 1% -6% Radio -3% -10%Door to door -1% Television -10% -5% Cinema -13% -4% Newspapers -16% Magazines 3% -17% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 2011 net difference (%increase-%decrease) 2012 net difference (%increase -%decrease) N 2012 = 436 N 2011 = 577#yms2012Presentation1 15
Social media results are not satisfying The number of likes is a useless KPI Strategy & Organization Facebook ads are not relevant The right content Traditional media still need to pave the way In depth analysis Work structure & work load are underestimated#yms2012Presentation1 16
We’re looking for equilibrists! Generalist Curious about specialization Creative Analytical Discipline Guts Hard skills Soft skills Humility Conviction Passionate about Marketing Business driven#yms2012Presentation1 17
We’re looking for equilibrists! “The ideal marketer can easily adjust his behavior and knows when to leverage the skill or skills appropriate to the situation.”#yms2012Presentation1 18
Focus Agility Creativity Tangibility Sustainability Marketers, in search of inspirationPresentation1
• Strategic consistency • Prioritize & choose the right target group • Consistent brand across all channels • Seek leadership in specific category • Customer centricityPresentation1
• Detect trends & act • Early warning systems & processes • Willingness to change • Flexibility & SpeedPresentation1
• Innovative company culture • Diversity of profiles • Idea generation process • Idea valuation • Porosity & open- mindednessPresentation1
Join us at our ‘Meet & Greet’ on 27/11 (7pm)! ‘The Bowery’, Chée de Louvain 650, 1030 Brussels Register by 22/11 via: www.thom.be/meet-greets Questions? Send email to Sophie Nicaise firstname.lastname@example.org