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Marketing spend that drives value
Marketing spend that drives value
Marketing spend that drives value
Marketing spend that drives value
Marketing spend that drives value
Marketing spend that drives value
Marketing spend that drives value
Marketing spend that drives value
Marketing spend that drives value
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Marketing spend that drives value

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We recently had the privilege in working with a very successful FMCG company. Our brief was to ensure marketing spend optimisation. The brief included campaign selection, messaging and deployment. …

We recently had the privilege in working with a very successful FMCG company. Our brief was to ensure marketing spend optimisation. The brief included campaign selection, messaging and deployment. This particular campaign focused on the bottom end of the market and specifically Living Standards Measures - levels 1-5.

The lower end of the market posed some specific challenges in terms of placement and messaging.

The company had done extensive market research to define their actual consumer profiles for the product group and had a significant data base available on specific consumer segments. They also asked us to review and critique the campaign plans and to give them an untainted no holds barred feedback on all aspects of the campaign.

Interestingly, the CEO of the company led this initiative and his objective wasn’t to prove marketing wrong, or to decry the work that they had done in the past, but simply to review and understand whether the marketing spend was carefully aligned with brand and sales objectives. In fact, marketing welcomed the initiative as they felt that a constructive critique of their thought processes and execution plans would be useful in terms of improvement endeavours. In this paper, we share some of the approaches that were taken and results that were achieved on behalf of this client.

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  • 1. Marketing is Marketing spend that drivesoften thought of valueas a creativerather than a Werner Hessscientificendeavour. -Wethink differently-Marketing is ascience andcampaignselection andexecution is allabout spendingthe right money,for the rightreasons in theright places Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
  • 2. IntroductionNewcomers to the sales environment may perceive the salesWe recently had the privilege in working with a very successful FMCG company. Our briefwas to ensure marketing spend optimisation. The brief included campaign selection,messaging and deployment. This particular campaign focused on the bottom end of themarket and specifically Living Standards Measures - levels 1-5.The lower end of the market posed some specific challenges in terms of placement andmessaging.The company had done extensive market research to define their actual consumer profilesfor the product group and had a significant data base available on specific consumersegments. They also asked us to review and critique the campaign plans and to give theman untainted no holds barred feedback on all aspects of the campaign.Interestingly, the CEO of the company led this initiative and his objective wasn’t to provemarketing wrong, or to decry the work that they had done in the past, but simply to reviewand understand whether the marketing spend was carefully aligned with brand and salesobjectives. In fact, marketing welcomed the initiative as they felt that a constructive critiqueof their thought processes and execution plans would be useful in terms of improvementendeavours. In this paper, we share some of the approaches that were taken and resultsthat were achieved on behalf of this client. An impartial analysis of key marketing initiatives can go a long way in terms of making your marketing initiatives more measurable, creating an opportunity for continuous improvement Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
  • 3. Goals and objectives – marketing plan reviewWe found that a really simple place to start a review would be to understand what themarketing objectives of specific marketing initiatives were and how the marketing plan wasconstructed to meet the goals of objectives.While we did find clearly spelt out goals and objectives, the goals and objectives weredefined along the lines of what the company hoped to achieve with the marketing plan,rather than what the campaign needed to drive. A goal of “ selling more product’, or‘improving sales’ or even ‘increasing sales in an area’, was found to be vague and we hadthe feeling that goals and objectives definition was more designed to appease managementof the noble objective of driving sales, rather than achieving something very specific.In a workshop, we revisited the goals and objectives of the campaign and were able to getconsensus that a goal that pointed to something very specific that wasn’t being achieved,would lead to better direction for the campaign. Something along the lines of “ influencingand converting fringe populations” or “ becoming a more attractive option to brandswitchers” or “ penetrating specific under- represented segments’ would have given thecampaign more meaning and more importantly, would have directed thinking into themarketing plan more effectively.Which consumers are you targeting?As a result of the weak definition of the goals of objectives of the campaign, specifictargeting was also poorly defined. In the absence of “who am I actually talking to in thiscampaign?” lead to a universal statement of value, rather than a message aimed at specificconsumers, making it attractive to them to consider the offering. The specific groups ofconsumers that we refer to are in fact the target market. Who is your target market? Canyou profile consumers that make up your target market, were questions worth asking?Here we found that the company had done some really good research in terms of definingtheir consumer profiles and the research had even gone as far as to point to specificconsumer profiles, not being current customers. This research pointed to possible targetsegments that would switch brands under the right conditions. This segment was in factquantified by the research, enabling marketing to target specific groups with sniper-likeaccuracy. Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
  • 4. A psychographic and demographic profiling exercise carried out by the research company very accurately defined the opportunity for gaining more consumers. We even had a very good view of who these potential consumers were and what their possible preferences were. While there were some doubts from some of the marketing team as to the accuracy of the profiling data, we found the data to be invaluable in terms of who potential consumers were, and what they looked like. If you do at a point in time embark on market research, you need to have confidence in the results, despite the fact that the results won’t necessarily fall within your currentMarket paradigms.research isoften Where are the potential consumers?essential. This seems like “the million dollar’ question: If we had a fair idea of what theThe demographic and psychographic make –up of our potential consumers are and we can correlate some life cycle and behavioural data of our targetchallenge is market, then all we need to know is where they live, in order to reach them!to separate It appears that the million dollar answer to the million dollar question is ; If we could profile potential consumers, we need to know how manycurrent consumers live a specific area, or more accurately, live within ourbeliefs geographical presence! What this means is that we should be able to tell how many potential consumers live within a certain city or suburb, wherefrom through campaign activities, I‘ll be certain to reach them! Sounds impossible!marketresearch Introducing Market Scopefindings. The concept of geo-spatial marketing solutions is very well developed in the USA. In fact, a geo=spatial view of a specific area forms part of the basic research that every fast food retailer and certainly every service station undertakes to determine the size and make-up of target market segments before they establish a new outlet. Similarly, Market Scope is an excellent tool that companies can put to use to quantify the number of consumers within a specific profile definition, that live in a specific city, town or suburb. Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
  • 5. Market Scope is a software solution that incorporates demographic data sets within aspatial environment (like a map) so that marketers can gain insight into the demographiccomposition of a geographic area.When we talk about “ where are the consumers” in the previous paragraph, this softwarecan help marketers pin point how many males with in an age group 16-25 live in Randburg.Let’s say for argument sake the answer to the question is 120,000, Randburg would certainlybe a suburb where we would target our advertising and promotional activities, specificallywhen we compare it to Marlboro, where the same demographic only represents a targetmarket population of 23,000.This is where a scientific approach can help drive accuracy and return on investment. Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
  • 6. Getting practicalBack to campaigns and marketing spend. Weanalysed a proposal from a marketing services Exposurevendor, who correctly identified a billboard strategyto appeal to consumers who were not customers yet. placementThe concept was that people who were likely to needs to bechange, needed to be converted by some means. Oneof the most effective ways of reaching consumers in “designed.” Bythe LSM 1- 5 segments, was to use billboards as amedium. Billboards needed to be supplemented with simply placingan additional medium, and it was decided thatcommunity radio could be a strong support medium exposure wherefor a largely visual outdoor campaign. We liked theapproach. However, we did not like the spend vendors haveproposal.The spend proposal revolved around ”billboard sights just isn’tsaturation” and 960 sites were selected in 2 majorcities. Needless to say, the campaign costs were effectiveheavy to say the least and we immediatelyquestioned the placement of billboards. What wefound was that the logic used by the vendor forplacement was entirely based on availability, ratherthan exposure potential. Market Scope came to rescue again, as we were able to reduce the billboard placement by50% by placing billboards in areas of high target market population saturation. What thisbasically means is that we launched 4 billboards in Randburg and reduced Marlboro from 6to 1 billboard. Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
  • 7. MessagingOur client supported 12 brands nationally. The challenge of exposing different brands thatwere dominant in certain areas, were well met with a combination of billboards and localcommunity radio.The messaging did however pose a problem of a totally different nature. How do develop amessage that attracts new customers, while at the same time keeping it relevant for existingcustomers.After leading a workshop to address this particular challenge, the concept of promoting theintrinsic product muscles was found to be a way out .While wholesomeness and healthwere specific and unique product attributes associated with the product, the relevance toexisting and new customers was universal.Results • What was significant about this project was that we were able to get the marketing teams to think differently and to question the logic of what companies normally perceive as standard procedure. All too often in our interaction with marketing and advertising vendors, they would refer to “everyone does it that way” as the logic applied to execution. • The company further underwent a mindset change. While marketing teams are usually thought of as being the ‘creatives” in the business, it became clear very quickly that creative input is what you get from your advertising company. Marketing teams are all about making decisions around where and how they need to spend, and how they could possibly get a return on what’s invested. • The billboard site selection exercise was exactly a case in point. Whereas the advertising company identified 960 sites, we used Market Scope to calculate deliberate target market exposure, and were able to deliver a more effective placement solution. Billboard sites were contained at just over 400. • While savings paid for the project, the client actually got what he paid for. Insight processes and systems that managed to drive behavioural change within his marketing team. Understanding that a scientific approach can help them achieve their goals and objectives effectively. Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
  • 8. About Carpedia Consulting…Carpedia Consulting is an internationally relevant management consultancy firm, dedicatedto assisting clients to improve sales and profits through the implementation of improvementprograms. Our approach is what makes us unique. The way we design, develop and executeour programs is hands-on, solutions-based and excellence driven.Our programs are customized to the needs of your organisation and are designed to ensuresignificant and sustainable improvements are made both internally and externally – by thesales team, for the customer.www.carpedia.co.zaAbout Werner Hess…Werner Hess has spent 20 years of his career in various sales, marketing and leadershippositions with Bayer, Triad Electronics, GE and GE Plastics before serving as managingdirector of GE Plastics and Polymerland. Werner’s first experience in the world of consultingcame about when he joined Proudfoot Consulting as Director of Business Development,which included several international assignments in Europe and the USA, leading saleseffectiveness projects for global clients. Werner’s current company, Carpedia Consulting isa specialist niche consultancy focused on sales and profit improvement.Werner’s latest book, The Science of Selling has just been published and revealsapproaches, systems and processes that can be implemented to create a successful salesplatform.Werner can be reached on: whess@carpedia.co.za Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
  • 9. Carpedia Consulting (Pty) LtdPO Box 1701GALLO Manor2052Building 2Country Club EstatesWoodlands DriveWoodmeadSandtonSouth AfricaTel: 27-11 – 258-8813Fax: 27-11- 258-8511Mob: 27-82-888-0228Email: info@carpedia.co.zawww.carpedia.co.za Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value

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