YMS 2013- Marketers, in search of the right balance


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  • This is very interesting. For the last six months I have been reshaping my own views of where and how marketing can define and deliver its ultimate value. The opportunity to be the point person to synthesize actionable shifts in the market place and shape how company wide customer touch points - sales, product, marketing, support reinforce a compelling brand promise is one strong pillar.
    While I appreciate the blend that CEO's see as critical for Marketing leaders, and they are resident in my model, I wonder how many will be able to meld what has been two primary paths into marketing that now need to connect. I came into it from pure creative training and adapted that to business. My most important adjustment after learning I scored off the charts on creativity (Dupont Center for Innovation test) was studying and applying critical thinking. While I do believe creativity can be learned, more may struggle with it. So my point may be that that super hero mentality we gravitate to may give way to tightly integrated teams which is ultimately how great companies function. I will reveal my new CMO model and advisory services for executives and teams in late March, and excited my model aligns with what CEO's desire in marketing. I do hope CEO's and CMO's are better to strike a better understanding as marketing is the best point function to keep a company valued through all the changes and complexities most want to simplify yet can't ignore.
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  • Last year, we staed: marekteers are in search of inspiration.This year; we believe the main challenge for the marketers is to find their way in the complexity of marketing today. What to choose as tactis, how to balance the available tools. Hopefully the coming slide will illustrate this title.
  • Let’s start with the confidence Index.What is the cofidence index. The index is built based on 2 parameters: how will the marekting budget evolve? And how will hte team evolve. As last year ...
  • No trust regained.The red line is the marketing index.-5 which means 5% more marketers expect a decrease for budget and team than marketers that expect an increase.The index follow the consumer index. Unfortunately: marketers seem to be more negative than consumers. Is this because the pressure of the board to so high?
  • Of course, same buzzwords re-appear: big data, content marketing, social media, authenticity and moble,But what is new: re marketing, de-trends, Complexity: ROPO, phygital, remarketing, multichanneling, multiscreen...
  • If you look at the Marketng Confidence Index, and the changes in the buzzwords, it seems clear to us, that marketing needs to change, a new balance.The purpose of today is to give you some ideas about how to deal with marketing in as from today.If you would not agree with this statements, ideas after the presentation, please feel free discuss afterwards during the drink!
  • New approach: instead of asking what the challenges are, we aksed marketers how they tackled those challenges. Surprising result appeared, and at the same time: helpfull insights!
  • Let me explain the graphic: what you see below is the number of maketers that apply the tactics to tackle the challengeWhat you see at the left is the succesrate.What surprises us is mentioned in redWhat we see below, least used and least succesfull: co-creation. It might surprise some marketers amongst you as co-creation is a kind of a hype nowadays.What we see on the top: almost most used and considered as very succesful: communication material that speaks to the cusomer, in other words: create a nice campaign and problem is solved.Tactis considered rather low in usage and succes are analyse what really matter to the customer and challenge the range of products. Honestly we do not agree with this and really believe that marketers should be more critial towards their product range.
  • So in fact, building loyalty is about the basics: work on relevance, improve experience....Involve te customer: I think we’re overestimeting the interest of customers in brands.
  • 53% van de Sensodyne users buy Colgate46% of the Colgate users buy Aquafresh...72% of the Pesdrinkers buy CocaCola....Once or more every 12 monthsMartin Hammer ‘YOURCONSUMERS’AREJUSTSOMEBODYELSE’SCONSUMERSWHOOCCASIONALLYBUYYOUPeople are loyal to a group of productsDevided loyalty: consumer buy different brandsTake care of the basics (experience, needs)Old school rules: gaining a new customer costs 5 times mre than keeping a customerDus het enige wat werkt is de switching barriers hoog houden (vb legaal,vb Nespresso ) maar vooral het involvement (Pampers, Nike) hoog houden
  • How to understand this graphic?Red is success rate, Orange is failure rateWe ‘ve made a good first step by working on consistency and defining the ideal communication plan
  • Goed gestart maar we lopen achter op onze consument , inhaalbewegingHow does the customer come to a purchase decision? Is our organizaton built around this customer process?Are we as marketers responsible for the whole process? Because afterall we are responsible for customer satisfaction?
  • We asked marketers to tell us what were the top 3 performance indicators used in their company to measure the effect of their marketing investements.Their answer is yet another example of “back to basics”: “Overall sales” is topping the list; this is comforting because it shows that marketers see their primary role as “SMS”: selling more stuff, and so it should be. But they have to make sure that their Board colleagues agree that marketing is indeed significantly influencing sales; otherwise they might find that someone else (the Sales Director for instance) is claiming paternity for the sales results too (of course as long as they are good).We are pleased to see that ROMI is in the second position, as the question was about how performance is measured today: it means that marketers are developing tools and skills to perform real ROMI analysis. On a less positive note customer-centricity is still one of the buzzwords, but less than half of the respondents put “customer satisfaction” in their top 3, which we find surprisingly low.
  • So we would like, and sorry for stating the obvious, to insist on the fact that customer satisfaction is key for marketers, and that a good place to start improving on that is knowing his or her decision process.To build credibility for Marketing (or to re-build it), focus indeed on a few metrics, like sales, and also dare to listen to your intuition
  • We then asked marketers what their expectations were for the budget evolution of various tactics; this is a question we also put last year; you have the figures of 2012 in red and those of this year in dark yellow; let me insist here: the figures do not show the expected growth or decline of the budget, they show how many more respondents expect an increase (right part) or a decrease (left part) of a given tactic. For instance if for a given tactic 50% of the respondents expect a stability, 30% a growth and 20% a decline, that tactic will be on the right side with a + 10% figure. Like last year, there are more bars on the “decrease expected” side than on the “increase expected” one – this is consistent with the negative Marketing Confidence Index.Marketers expect Direct Marketing and Brand Activation agencies to have a good year.Other striking elements are the expected stability of image campaigns, the negative outlook for sponsoring (in line with last year), and an expected decline for trainings and congresses – and I believe that those in the room who have been or are organising a congress or are in the training business will know about that.
  • OK, so it is for Direct Marketing that marketers are the most optimistic. This is the case year after year after year. What what exactly do we mean by direct marekting, as so many digital evolutions made it possible to communicate directly with ou customer?And, surprise, social media comes on top, followed by e-mail.We have to take the consequences of that evolution as response rates will certainly not be as successful as they were before. The impact of a message via SM or via Email is certainly not that high as the message in a direct mailing. The risk is that DM via SM or email becomes mass communication as it is very easy to send a mass offering to verybody linked with the brand somewhere in a community.We advice a good balance and simplicity as a principle: a direct mail from time to time with a real personilized message will boost your results. But there for you need the skills (overgang naar volgende slide)
  • Training is necessaryBut the basics remain: simplify, personalize, create relevance, select ...Don’t make it a mass medium
  • We have also asked marketers’ opinion on a few statements relating to SOLOMO (Social / Local / Mobile); you can find the whole list in the booklet, here are a few ones that we have selected.Social media are not over, they exist, as TV exists, and will contnue to exist, as TV will continue to exist. But the hype is over, with all it excessive statements that they were the one and only future of Marketing and that TV as a commercial tool was dead.And there is some disillusion:- a majority of marketers say that social media still have to prove their case as marketing tools (and the Facebook shares launched at $38 are trading at $26, that minus 32% in less than a year)And looking at the results for the 3 other statements, a majority of marketers admit that they don’t know enough about the possibilities, that they are not satisfied with the results, and that they even don’t know these results. By the way these results are worse than last year.The relation between marketers and social media looks like a passion that started on a Saturday night, and now comes the Sunday morning, in the daylight and without make-up.The consequence is clear: we do need specialists to make it a success. Our recommendation is to involve external partners as long as the KX is not sufficient.
  • Last but not least, we asked marketers what are the skills they believe marketers need to address the challenges of this year. And then we put the same question to a sample of CEO’s ... and of course we crossed the results to obtain a good old consultant’s slide.So all the skills that are close to the diagonal are those where CEO’s and marketers agree on the importance.But on which skills don’t they agree ?Maybe surprisingly, Analytical skills are seen as less important by CEO’s than by marketers, and the same applies on marketers’ ability to make experts work together. And, oh yes, CEO don’t like marketers’ conviction power too much ... This one looks like a “give me a break” statement to be honest.On the other side, and again quite surprisingly, CEO’s value creativity much more than marketers do, and they want marketers to rely more on intuition – that is definitely one to take home tonight.Empathy is also far more valued by CEO’s than by marketers.And bad news for those who think that marketers are sometimes arrogant: they show no intention to change, and CEO’s can live with that !
  • Marketing became complex, for a while nowThe profile of the marketers has to change to be able to cope with the challenging timesBalance is boring, but it is what we need. We 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 passionate marketers who understand what the business is about. One that knows where the business is going ….End with : Agility & creativity might be more important than knowledge
  • That’s a lot of skills that need to be developed, and the question is “how” ?We believe, and we believe it because we see it happening time after time, that a combination of variety in assignments, continuous training, coaching, and experience of course, make the trick, and are an excellent way, and probably the best way, to accelerate marketers’ personal development.That’s why we at The House of Marketing have developed the Marketing Talent Development Program, that combines these 4 blocks in a unique way. It will start in September. You came here to isten to the results of the Yearly Marketing Survey and not to a sales talk for our new product so I will say no more now, but if you are interested my colleagues and I will be around and more than happy to answer your questions.
  • YMS 2013- Marketers, in search of the right balance

    1. 1. Marketers, in search of the right balance #YMS2013 1
    2. 2. The Marketing Confidence Index#YMS2013 #YMS2013 2
    3. 3. Unfortunately, no trust regained MCI compared to the Consumer Confidence indexMar/13 20 15 15 15 13 12 10 5 4 1 2 1 0 -1 2005-3 2006-2 2007 2008-3 2009 2010 2011 2012 2013 -5 -5 -5 -10 -15 -15 -17 -20 -20 -24 -24 -25 Mar/13 -30 #YMS2013 MCI CI (data from Feb/13) N=232#YMS2013 3
    4. 4. The new buzzwords indicate “de-trends”: time to simplify#YMS2013 4
    5. 5. What will be our key messages today? 1 Instead of embracing complexity, try to simplify & focus 2 Build your organization around the customer, don’t forget it is war 3 Don’t be paralyzed by analytical skills. Intuition based on good knowledge is of equal importance 4 Surround your team with specialists and dare to outsource 5 Customer involvement is OK to challenge needs & relevance 6 Creativity leads to CEO appreciation and much more! 7 Invest in profound media & tactics training 8 Back to the basics is needed: recruit and train the right skills#YMS2013 5
    6. 6. How to tackle the traditional marketing challenges?#YMS2013 #YMS2013 6
    7. 7. Marketers struggle to create relevance How to make products/services more relevant? 60% Communication material that speaks customer language 50% Highlight unique benefits% Understand Sharpen customer Align communication 40% positioning journey strategy withNet Success customer needs% Analyze if your offering Listen to customers really matters to Refine segmentation 30% customer Challenge range of 20% offerings Personalized offering 10% Co-creation 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%#YMS2013 Usage N=259 7
    8. 8. Relevance: a matter of making choices, startingfrom the customer •Be critical, ask the right question: Do I make life easier? Does my brand add value? •Dare to say no •Don’t make your agency responsible #YMS2013 #YMS2013 8
    9. 9. Is building loyalty a utopia? How to build loyalty? 60% Improve customer More relevant experience products/services 50% Analyze customer needs Focus on CLV Personalize Communication 40% Refine segmentationNet Success Invest in employees Create dialogue 30% 20% Review pricing strategy Reward with incentive 10% Involve customers in marketing projects 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% #YMS2013 #YMS2013 Usage 9
    10. 10. 100% loyalty is out. Divided loyalty is in. •Take care of the basics •Loyalty programs have become a commodity •Forget the “old school” rules •Focus on light users and penetration “Your consumers’are just somebody else’s consumers who occasionally buy you” Martin Hammer #YMS2013#YMS2013 10
    11. 11. Focus on the customer requires an integrated marketingapproachHow to integrate offline & online communication? Success & Failure rate online & offline integration Focus on brand consistency across all touch -12% 62% points Define the ideal communication mix -11% (channels, media) per campaign 58% Integrate online and offline communication departments -18% 51% Improve your understanding of the complete customer journey -14% 50% Integrate online and offline customer intelligence data to take relevant decisions -22% Measure and analyze the performance and 47% characteristics of used online & offline media, channels and tactics -22% 45% Develop a cross-channel measurement framework Analyze the impact of online activities on -23% 41% sales compared to offline activities -25% 36% #YMS2013 Failure Rate11 Success Rate N=257
    12. 12. Online & offline integration? Still a long way to go!Organization built around the customerMarketing responsible for all customer touchpointsOnline, offline ... It doesn’t matter!#YMS2013 12
    13. 13. How to prove the added value of marketing? Top 3 - Most common Performance measurements (%total respondants) Overall Sales Overall sales 65% Marketing ROI Marketing ROI 48% Customer satisfaction Customer satisfaction 45% Number of new customers 34% Revenue per customer 28% Marketing-influenced sales 20% Churn rate 12% Others6 12% Social media metrics 9% N=250 13
    14. 14. Measurement is more than analyzing figures from the past• Customer satisfaction is key for marketers• Do you know the decision making process of your customers?• Simplify, limit to board sensitive metrics and combine knowledge with good intuition: tangibility has its limits #YMS2013 #YMS2013 14
    15. 15. Evolution of marketing tactics & media#YMS2013 #YMS2013 15
    16. 16. Marketing tactics don’t evolve or do they? Expected budget evolutions for tactics Direct Marketing Direct Marketing 18% 19% Brand Activation Brand activation 18% 15% Instore marketing 3% 6% Guerilla marketing -6% 3%Image campaigns Image campaigns -28% -1% Others -3% -4% Sampling -12% -4% Gamifaction -5% Product placement -8%Events and trade fairs -13% -15% Sponsoring -37% Sponsoring -19% Congress/trainingsCongress / training -19% 2% N=207 Public relations -30% #YMS2013 2012 Net difference (%increase-%decrease) 2013 Net difference (%increase-%decrease) 16
    17. 17. Online advertising dictates media budgets 17
    18. 18. What exactly do we mean by Direct Marketing? Direct Marketing expected budget evolution per media Social media 58% E-mail 45% Direct mail 16% Direct response 8% advertising Telemarketing 7% SMS 5% N=200 2013 Net difference (%increase-%decrease)#YMS2013 18
    19. 19. DM is loved, but not known?! Marketers’ opinions towards DM -39% Too much segmentation pays less 36% -38% The ROMI of direct mail is always lower than e-mailing or any other DM tactic 22% -38% Too much data makes it unmanageable to work with 35% -36% Profound IT KX is needed to apply DM 37% -33% Data are not correct, so unreliable to use 33% Well-trained DM marketers are hard to find -19% 46%#YMS2013 #YMS2013 Disagree Agree 19 N=200
    20. 20. Is the hype of social media over? % agree & disagree on SOLOMO statements Social media still have to prove their case as still have to prove their case as -37% marketing tools marketing tools 45% We havesatisfied with the results of our social We are enough knowledge about the -50% possibilities of social media media activities 23% We have enough knowledge about the We are satisfied with the results of our social -56% possibilities of mobile media activities 23% We know the ROI of our social mediaWe know the ROI of our social media activities -63% activities 17% Disagree Agree N=195 #YMS2013 #YMS2013 20
    21. 21. The ideal marketing personality?#YMS2013 #YMS2013 21
    22. 22. Your CEO expects other skills than you do! Ranking personality traits to address 2013 challengesMarketers 70% for Marketing Manager & CEO 60% 50% Analytical skills 40% Sense of business Communication skills Creative skills 30% Ability to make experts Ability to see the work together bigger picture Conviction power Guts 20% Passion for marketing 10% Intuition Discipline Humility Empathy 0% 0% 10% 20% 30% 40% 50% 60% 70% -10% #YMS2013 #YMS2013 22 CEOs
    23. 23. We are looking for equilibrists! Generalist Curious about specialization Creative Analytical Discipline Guts Hard skills Soft skills Humility Conviction#YMS2013 Passionate about Marketing Business driven #YMS2013 23
    24. 24. How to generate those skills? Variety Continuous training Experience Coaching MARKETING TALENT DEVELOPMENT PROGRAM#YMS2013 24
    25. 25. What are our key messages today? 1 Instead of embracing complexity, try to simplify & focus 2 Build your organization around the customer, don’t forget it is war 3 Don’t be paralyzed by analytical skills. Intuition based on good knowledge is of equal importance 4 Surround your team with specialists and dare to outsource 5 Customer involvement is OK to challenge needs & relevance 6 Creativity leads to CEO appreciation and much more! 7 Invest in profound media & tactics training 8 Back to the basics is needed: recruit and train the right skills#YMS2013 25
    26. 26. How FACTS is your marketing department? CREATIVITY FACTS Focus Innovative 5.00 culture 4.00 5.00 3.00 4.00 2.00 3.00 Sustainability Agility Porosity & open 2.00 Creative 1.00 mindedness 1.00 profiles 0.00 0.00 Idea Idea Tangibility Creativity valuation/evalu generation For all information about the free FACTS audit, ation process contact Caroline Vervaeke or Detect trends Karolien FOCUS Simplicity & Vanhelden AGILITY 5.00& act relevance 4.00 5.00 3.00 4.00 Strategic Early warning Continuity 3.00 Speed 2.00 systems & consistency 2.00 1.00 processes 1.00 0.00 0.00 Team focused Brand & in its daily… positioning… Built around Agile Build Customer customer organization, knowledge centricity engagement willing to… 26
    27. 27. For all information about the YMS,or for a tailormade company presentation, contact : caroline.vervaeke@thom .eu 27