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MARKETING IN THE ERA
OF ACCOUNTABILITY
880 CASESTUDIES
SUMMARY
The report goes through 880 cases from
all around the world and measures their
effectiveness. It seeks to find out how
and why they were so effective.
It also looks at how a business should
best spend their marketing budget and
how to structure their marketing
KAPITTEL
INTRODUCTION
BRIEFING
CHAPTER 1
Concrete objectives for a campaign
helps making it more successful
Hard Objectives(Behavior and business)
Are generally more sucessful
KAPITTEL 1
The campaign
Need clear
objectives
HIERARCHY OF OBJECTIVES
Business
Behavoiral
Intermediate
KAPITTEL 1
Those with a objective to increase profitability does
substantially better than others
Profitability as KPI is recommended to show the
impacts of a campaign.
Market share is more important than sales.
Campaigns targeting growth in market share, have
a greater chance to be successful than those
targeting sales
KAPITTEL 1
The campaign needs
a clear objectives hierarchy
Market share as KPI is easier to track than sales
It has to be clear for the creative team how the
campaign will be tracked and measured, for them to be
foucsed on the right angles for the campaign.
Focus on share value, not share volum
Reduced price sensitivity is the most sucessful way to
increased profitability.
The conclusion on business objectives is that you
should aim on increased profitability, or reduced price
sensitivity, market share above sales as secondary
objective, and share value as KPI instead of share volum
KAPITTEL 1
Penetration as objective are more likely to lead
to a successful outcome
Loyalty as a tactic is not recommended, since it
rarely leads to successful marketing
Quality as a campaign objective is more
important than brand image. This helps
reducing the price sensitivity. These types of
campaigns are most successful, together with
Fame, when looking at profitability.
A brands marketshare, or position, can also help
lead to a change in quality perception.
KAPITTEL 1
Communications
Strategy
CHAPTER 2
KAPITTEL 2
Emotional
Campaigns
Information
Campaigns
FAME
Campaigns
Persuasion
Campaigns
Reinforcement
Campaigns
Complex
Campaigns
FIVE TYPES OF CAMPAIGNS
Emotional campaigns give the best results
Most likely to create big and/or many results
Generates more numerous intermediate effects
Outperform rational campaigns on attitudinal
dimensions
This gives us a dilemma;
Emotional vs Rational
Emotional is harder to track, while rational is
easier but less likely to produce results
KAPITTEL 2
What campaigns gives best effect
Emotional
Campaigns
Emotional campaigns are more imporant
for mature and in declining categories.
Rational campaigns have greater effects
for new and in growth categories.
Direct behavioral changes is one of the
areas where rational approaches seem
more effective than emotional
KAPITTEL 2
Measuring and
Evaluating a campaign
CHAPTER 3
Demonstrate and prove the effects by measuring
usage and attitudinal changes in the brands
campaign period
Precise measuring of attitudes and behavior
changes that the campaign aims at.
Remember to have balance in the tactics and
objectives. Large market-share growth, is
associated with several business effects.
Taylor the research so you only measure what
you wish to accomplish
When brand loyalty increases, will penetration
growth almost always be as large or larger.
KAPITTEL 3
Campaign measuring
An imporatant emelemt of the strategy is to
increase awareness subconsciously
Brand awareness and image is not always
important for strong effects.
More than half of the campaigns that were
sucessful in business measurements, reported
little or no improvement on the brands image.
Improvements in awareness and image is not a
necessity for a campaign to be successful.
Long-time effects is acheieved through emotional
messages, since the message stays longer in
the recievers mind
The power of emotional campaigns doesn’t have
so much to do with the persuasiontactic, but how
easy it is to remember
KAPITTEL 3
Evaluation
Pre-testing isn't always a good idea.
In some cases where it was reported good pre-
test results the campaign tended to do worse,
than those who didn’t pre-test, when the
campaign was over.
Impressions we have of a brand might have been
established long before the campaign.
Since most of the impressions people have of a
brand has been established long before the
campaign is shown, it is very difficult to consider
it to be reliable feedback when your researchers
provoke awareness in an post-campaign
evaluation.
KAPITTEL 3
PRE-TESTING
ESOV
CHAPTER 4
The Nielsen analysis included two years of
media and sales over the periode
2006-2008, for 123 brands in 30 FMCG
Categories.
The analysis looked closer at the impact that
brands SOV have in the first year on sales
over the two-year period and used the
ground sales to exclude the effects
distribution changes, price promotions etc.
KAPITTEL 4
EVIDENCE
TBD
SOMSOV =ESOV
TBD
MARKEDSANDELSHARE OF VOICE
EXCESS SHARE OF VOICE
=
TBD
=ESOV GROWTH
KAPITTEL 4
The model which determines the level of
share growth for a brand is called Excess
Share of Voice(ESOV)
In other words, to grow in your marked you
need to overinvest in communication
The consequence of this is at no one can
guarantee the same level of business results if
ESOV becomes a declining result of
underinvesting in the communications mix
Which means that if you underinvest, you can
expect a decrease in your brands market-
share.
Money can
Buy success
The relation between ESOV and market-share
growth is confirmed.
An average of 0.5% points of market-share
growth can be expected per 10% points of
ESOV. Therefore can a brand with market-
share at 20.5% and ESOV on 10% expect a
growth to 21% in 1 year.
The level of growth achieved per point of
ESOV, varies considering the size of the
brands size.
KAPITTEL 4
Keyfindings from
The Nielsen analysis
-60% -40% -20% 20% 40% 60% 80% 100%
10%
20%
30%
40%
50%
60%
-40%
-30%
-20%
-10%
TBD
SHAREOF
VOICEOVERSKUDD
SHAREOFVOICEUNDERSKUDD
Ikke kreativt belønnet reklame
VEKST I MARKEDSANDEL
TAP AV MARKEDSANDEL
TBD
BUT CREATIVITY
GIVES YOU WHAT
MONEY CAN BUY
MONEY CAN
BUY SUCCESS
KAPITTEL 4
So to a certain degree marketshares can be bought
But the unfair advantage that any marketer can exploit
is the power of creativity.
The link between Creativity and Effectivness analysed
the relation between creativly awarded campaigns and
its effectiveness. These are extremely valuable.
Creatively awarded campaigns generates on average
5.7% points of market-share growth per 10% points of
ESOV, compared to 0.5% per 10% points of ESOV for
non-award winning campaigns.
-60% -40% -20% 20% 40% 60% 80% 100%
10%
20%
30%
40%
50%
60%
-40%
-30%
-20%
-10%
TBD
SHAREOF
VOICEOVERSKUDD
SHAREOFVOICEUNDERSKUDD
Kreativt belønnet reklame
Ikke kreativt belønnet reklame
VEKST I MARKEDSANDEL
TAP AV MARKEDSANDEL
-60% -40% -20% 20% 40% 60% 80% 100%
10%
20%
30%
40%
50%
60%
-40%
-30%
-20%
-10%
TBD
SHAREOF
VOICEOVERSKUDD
SHAREOFVOICEUNDERSKUDD
Kreativt belønnet reklame
Ikke kreativt belønnet reklame
VEKST I MARKEDSANDEL
TAP AV MARKEDSANDEL
Spend money ahead of your marketshare.
Avoid the temptation of stressing into the
development of a campaign before you know at what
level the budget are. If the brand does not invest
ahead of their current position, the chance of growth
will be highly reduced.
Treat creativity as an essential, not a nice-to-have.
Creativity is not a subsidiary, besides proper
marketing investments, it is the biggest tool for
growth for a brand.
KAPITTEL 4
Two Ingredients
For success

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Marketing in-the-era-of-accountability-presentation

  • 1. MARKETING IN THE ERA OF ACCOUNTABILITY
  • 3. The report goes through 880 cases from all around the world and measures their effectiveness. It seeks to find out how and why they were so effective. It also looks at how a business should best spend their marketing budget and how to structure their marketing KAPITTEL INTRODUCTION
  • 5. Concrete objectives for a campaign helps making it more successful Hard Objectives(Behavior and business) Are generally more sucessful KAPITTEL 1 The campaign Need clear objectives
  • 7. Those with a objective to increase profitability does substantially better than others Profitability as KPI is recommended to show the impacts of a campaign. Market share is more important than sales. Campaigns targeting growth in market share, have a greater chance to be successful than those targeting sales KAPITTEL 1 The campaign needs a clear objectives hierarchy
  • 8. Market share as KPI is easier to track than sales It has to be clear for the creative team how the campaign will be tracked and measured, for them to be foucsed on the right angles for the campaign. Focus on share value, not share volum Reduced price sensitivity is the most sucessful way to increased profitability. The conclusion on business objectives is that you should aim on increased profitability, or reduced price sensitivity, market share above sales as secondary objective, and share value as KPI instead of share volum KAPITTEL 1
  • 9. Penetration as objective are more likely to lead to a successful outcome Loyalty as a tactic is not recommended, since it rarely leads to successful marketing Quality as a campaign objective is more important than brand image. This helps reducing the price sensitivity. These types of campaigns are most successful, together with Fame, when looking at profitability. A brands marketshare, or position, can also help lead to a change in quality perception. KAPITTEL 1
  • 12. Emotional campaigns give the best results Most likely to create big and/or many results Generates more numerous intermediate effects Outperform rational campaigns on attitudinal dimensions This gives us a dilemma; Emotional vs Rational Emotional is harder to track, while rational is easier but less likely to produce results KAPITTEL 2 What campaigns gives best effect Emotional Campaigns
  • 13. Emotional campaigns are more imporant for mature and in declining categories. Rational campaigns have greater effects for new and in growth categories. Direct behavioral changes is one of the areas where rational approaches seem more effective than emotional KAPITTEL 2
  • 14. Measuring and Evaluating a campaign CHAPTER 3
  • 15. Demonstrate and prove the effects by measuring usage and attitudinal changes in the brands campaign period Precise measuring of attitudes and behavior changes that the campaign aims at. Remember to have balance in the tactics and objectives. Large market-share growth, is associated with several business effects. Taylor the research so you only measure what you wish to accomplish When brand loyalty increases, will penetration growth almost always be as large or larger. KAPITTEL 3 Campaign measuring
  • 16. An imporatant emelemt of the strategy is to increase awareness subconsciously Brand awareness and image is not always important for strong effects. More than half of the campaigns that were sucessful in business measurements, reported little or no improvement on the brands image. Improvements in awareness and image is not a necessity for a campaign to be successful. Long-time effects is acheieved through emotional messages, since the message stays longer in the recievers mind The power of emotional campaigns doesn’t have so much to do with the persuasiontactic, but how easy it is to remember KAPITTEL 3 Evaluation
  • 17. Pre-testing isn't always a good idea. In some cases where it was reported good pre- test results the campaign tended to do worse, than those who didn’t pre-test, when the campaign was over. Impressions we have of a brand might have been established long before the campaign. Since most of the impressions people have of a brand has been established long before the campaign is shown, it is very difficult to consider it to be reliable feedback when your researchers provoke awareness in an post-campaign evaluation. KAPITTEL 3 PRE-TESTING
  • 19. The Nielsen analysis included two years of media and sales over the periode 2006-2008, for 123 brands in 30 FMCG Categories. The analysis looked closer at the impact that brands SOV have in the first year on sales over the two-year period and used the ground sales to exclude the effects distribution changes, price promotions etc. KAPITTEL 4 EVIDENCE
  • 23. KAPITTEL 4 The model which determines the level of share growth for a brand is called Excess Share of Voice(ESOV) In other words, to grow in your marked you need to overinvest in communication The consequence of this is at no one can guarantee the same level of business results if ESOV becomes a declining result of underinvesting in the communications mix Which means that if you underinvest, you can expect a decrease in your brands market- share. Money can Buy success
  • 24. The relation between ESOV and market-share growth is confirmed. An average of 0.5% points of market-share growth can be expected per 10% points of ESOV. Therefore can a brand with market- share at 20.5% and ESOV on 10% expect a growth to 21% in 1 year. The level of growth achieved per point of ESOV, varies considering the size of the brands size. KAPITTEL 4 Keyfindings from The Nielsen analysis
  • 25. -60% -40% -20% 20% 40% 60% 80% 100% 10% 20% 30% 40% 50% 60% -40% -30% -20% -10% TBD SHAREOF VOICEOVERSKUDD SHAREOFVOICEUNDERSKUDD Ikke kreativt belønnet reklame VEKST I MARKEDSANDEL TAP AV MARKEDSANDEL
  • 26. TBD BUT CREATIVITY GIVES YOU WHAT MONEY CAN BUY MONEY CAN BUY SUCCESS
  • 27. KAPITTEL 4 So to a certain degree marketshares can be bought But the unfair advantage that any marketer can exploit is the power of creativity. The link between Creativity and Effectivness analysed the relation between creativly awarded campaigns and its effectiveness. These are extremely valuable. Creatively awarded campaigns generates on average 5.7% points of market-share growth per 10% points of ESOV, compared to 0.5% per 10% points of ESOV for non-award winning campaigns.
  • 28. -60% -40% -20% 20% 40% 60% 80% 100% 10% 20% 30% 40% 50% 60% -40% -30% -20% -10% TBD SHAREOF VOICEOVERSKUDD SHAREOFVOICEUNDERSKUDD Kreativt belønnet reklame Ikke kreativt belønnet reklame VEKST I MARKEDSANDEL TAP AV MARKEDSANDEL
  • 29. -60% -40% -20% 20% 40% 60% 80% 100% 10% 20% 30% 40% 50% 60% -40% -30% -20% -10% TBD SHAREOF VOICEOVERSKUDD SHAREOFVOICEUNDERSKUDD Kreativt belønnet reklame Ikke kreativt belønnet reklame VEKST I MARKEDSANDEL TAP AV MARKEDSANDEL
  • 30. Spend money ahead of your marketshare. Avoid the temptation of stressing into the development of a campaign before you know at what level the budget are. If the brand does not invest ahead of their current position, the chance of growth will be highly reduced. Treat creativity as an essential, not a nice-to-have. Creativity is not a subsidiary, besides proper marketing investments, it is the biggest tool for growth for a brand. KAPITTEL 4 Two Ingredients For success