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McKinsey Insights & Publications webinar | February 20, 2015
Five keys to unlocking growth
in marketing’s “golden age”
McKinsey & Company | 1@McKinsey @McK_MktgSales #McKGrowth
New trends shaping marketing today
Consumer
power
Explosion
of digital
Fragmentation
Always on Personalization
Data, data,
data!
1
0
0
1
1
0
Personalization
McKinsey & Company | 2@McKinsey @McK_MktgSales #McKGrowth
This is the dawn of
a new golden age
of marketing
McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 2
McKinsey & Company | 3@McKinsey @McK_MktgSales #McKGrowth
Science
StorySpeed
Simplicity Substance
The 5 S’ of the new golden age
McKinsey & Company | 4@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 4
“The beauty of marketing today is
that we can really show the return.
The data allows us to demonstrate
impact in a much more transparent
way than in the past.”
Lorraine Twohill, Senior VP for Global
Marketing, Google
Science
McKinsey & Company | 5@McKinsey @McK_MktgSales #McKGrowth
Science
Better decisions to
increase impact
$200 billion opportunity
McKinsey & Company | 6@McKinsey @McK_MktgSales #McKGrowth
Science: Better decisions to increase impact
Avg. profit
for promoted
products up
288%
Retail company
McKinsey & Company | 7@McKinsey @McK_MktgSales #McKGrowth
Science: Better decisions to increase impact
International industry player
100,000
price points reset
500 SKUs
1.3 million transactions
Analyticalrendering
McKinsey & Company | 8@McKinsey @McK_MktgSales #McKGrowth
Science: Better decisions to increase impact
vs.
Art Science
Wrong debate
McKinsey & Company | 9@McKinsey @McK_MktgSales #McKGrowth
Science: Better decisions to increase impact
Art Science
Wrong answer
McKinsey & Company | 10@McKinsey @McK_MktgSales #McKGrowth
Art Science Craft
Science: Better decisions to increase impact
McKinsey & Company | 11@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 11
Substance
“Look what [luxury brands] are
doing: they’re building flagship
stores that are beautiful, where
you actually like to just browse
around before you buy. Those
are emotional places.”
Ola Källenius, Board of Management
of Daimler AG
McKinsey & Company | 12@McKinsey @McK_MktgSales #McKGrowth
Substance
Moving beyond
messaging to shape
the substance of
business
McKinsey & Company | 13@McKinsey @McK_MktgSales #McKGrowth
Differentiation
Substance: Shaping substance of business
Products Services Experiences
McKinsey & Company | 14@McKinsey @McK_MktgSales #McKGrowth
Substance: Shaping substance of business
Energy company
Customer
onboarding
7 steps
2 steps
McKinsey & Company | 15@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 15
Story
“It’s not [all data]! … If you fall
down on the art, if you fail on the
messaging and storytelling, all
that those tools will get you are a
lot of bad impressions.”
Lorraine Twohill, Senior VP for Global
Marketing, Google
McKinsey & Company | 16@McKinsey @McK_MktgSales #McKGrowth
Story: Better storytelling for emotional connection
What makes a good
story hasn’t changed.
HOW to tell one has.
McKinsey & Company | 17@McKinsey @McK_MktgSales #McKGrowth
Old story telling BRAND
New story telling BRAND
Story: Better storytelling for emotional connection
McKinsey & Company | 18@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 18
Speed
“Speed comes from decentrali-
zation and creating a local
autonomy to take local action.”
CMO, Consumer goods company
McKinsey & Company | 19@McKinsey @McK_MktgSales #McKGrowth
Speed
A culture of urgency
has placed emphasis
on speed and agility
McKinsey & Company | 20@McKinsey @McK_MktgSales #McKGrowth
Speed: A culture of urgency to keep up with consumers
From To
Batch processing
Command and control
Manual
Slow development
Continuous delivery
Agile
Automated
Real-time test & learn
McKinsey & Company | 21@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 21
Simplicity
“The growing complexity is
unmanageable: in-house vs.
external partners, established
channels vs. new channels. We
need help to get through this jungle.”
CMO, Consumer goods company
McKinsey & Company | 22@McKinsey @McK_MktgSales #McKGrowth
Simplicity: Simplify to execute
Speed and agility
require relentlessly focusing
on simple
McKinsey & Company | 23@McKinsey @McK_MktgSales #McKGrowth
Complexity kills
Expanding
geographic
footprints
Product and
channel
proliferation
Digital and
technology
specializations
Hierarchies,
silos, gaps,
redundancies
Simplicity: Simplify to execute
McKinsey & Company | 24@McKinsey @McK_MktgSales #McKGrowth
Complex: Disparate HQs and teams
Simplified: Single team
mapped to customer
ourney
Consistent brand experience
Simplicity: Simplify to execute
Daimler
Customer
journey
Before
After
McKinsey & Company | 25@McKinsey @McK_MktgSales #McKGrowth
The most important questions to ask
Speed
Faster than our competitors or slower?
Simplicity
Simplifying processes or overwhelming with new things?
Story
Making connections or speaking into space?
Substance
Differentiated experience or “me-too” selling?
Science
Today’s insights or yesterday’s facts?
McKinsey & Company | 26@McKinsey @McK_MktgSales #McKGrowth
www.youtube.com/McKinseyCMSOForum
@McK_MktgSales
McKinseyonMarketingandSales.com
@JeskoPerrey
Jesko Perrey
Senior Partner and
Global Knowledge
Leader of McKinsey's
Marketing & Sales
Practice
Jonathan Gordon
Leader of McKinsey's
Marketing & Brand
Strategy Practice
McKinsey on Marketing & Sales
@JWGordon
Stay Connected

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Five keys to marketing's "new golden age"

  • 1. Any use of this material without specific permission of McKinsey & Company is strictly prohibited McKinsey Insights & Publications webinar | February 20, 2015 Five keys to unlocking growth in marketing’s “golden age”
  • 2. McKinsey & Company | 1@McKinsey @McK_MktgSales #McKGrowth New trends shaping marketing today Consumer power Explosion of digital Fragmentation Always on Personalization Data, data, data! 1 0 0 1 1 0 Personalization
  • 3. McKinsey & Company | 2@McKinsey @McK_MktgSales #McKGrowth This is the dawn of a new golden age of marketing McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 2
  • 4. McKinsey & Company | 3@McKinsey @McK_MktgSales #McKGrowth Science StorySpeed Simplicity Substance The 5 S’ of the new golden age
  • 5. McKinsey & Company | 4@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 4 “The beauty of marketing today is that we can really show the return. The data allows us to demonstrate impact in a much more transparent way than in the past.” Lorraine Twohill, Senior VP for Global Marketing, Google Science
  • 6. McKinsey & Company | 5@McKinsey @McK_MktgSales #McKGrowth Science Better decisions to increase impact $200 billion opportunity
  • 7. McKinsey & Company | 6@McKinsey @McK_MktgSales #McKGrowth Science: Better decisions to increase impact Avg. profit for promoted products up 288% Retail company
  • 8. McKinsey & Company | 7@McKinsey @McK_MktgSales #McKGrowth Science: Better decisions to increase impact International industry player 100,000 price points reset 500 SKUs 1.3 million transactions Analyticalrendering
  • 9. McKinsey & Company | 8@McKinsey @McK_MktgSales #McKGrowth Science: Better decisions to increase impact vs. Art Science Wrong debate
  • 10. McKinsey & Company | 9@McKinsey @McK_MktgSales #McKGrowth Science: Better decisions to increase impact Art Science Wrong answer
  • 11. McKinsey & Company | 10@McKinsey @McK_MktgSales #McKGrowth Art Science Craft Science: Better decisions to increase impact
  • 12. McKinsey & Company | 11@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 11 Substance “Look what [luxury brands] are doing: they’re building flagship stores that are beautiful, where you actually like to just browse around before you buy. Those are emotional places.” Ola Källenius, Board of Management of Daimler AG
  • 13. McKinsey & Company | 12@McKinsey @McK_MktgSales #McKGrowth Substance Moving beyond messaging to shape the substance of business
  • 14. McKinsey & Company | 13@McKinsey @McK_MktgSales #McKGrowth Differentiation Substance: Shaping substance of business Products Services Experiences
  • 15. McKinsey & Company | 14@McKinsey @McK_MktgSales #McKGrowth Substance: Shaping substance of business Energy company Customer onboarding 7 steps 2 steps
  • 16. McKinsey & Company | 15@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 15 Story “It’s not [all data]! … If you fall down on the art, if you fail on the messaging and storytelling, all that those tools will get you are a lot of bad impressions.” Lorraine Twohill, Senior VP for Global Marketing, Google
  • 17. McKinsey & Company | 16@McKinsey @McK_MktgSales #McKGrowth Story: Better storytelling for emotional connection What makes a good story hasn’t changed. HOW to tell one has.
  • 18. McKinsey & Company | 17@McKinsey @McK_MktgSales #McKGrowth Old story telling BRAND New story telling BRAND Story: Better storytelling for emotional connection
  • 19. McKinsey & Company | 18@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 18 Speed “Speed comes from decentrali- zation and creating a local autonomy to take local action.” CMO, Consumer goods company
  • 20. McKinsey & Company | 19@McKinsey @McK_MktgSales #McKGrowth Speed A culture of urgency has placed emphasis on speed and agility
  • 21. McKinsey & Company | 20@McKinsey @McK_MktgSales #McKGrowth Speed: A culture of urgency to keep up with consumers From To Batch processing Command and control Manual Slow development Continuous delivery Agile Automated Real-time test & learn
  • 22. McKinsey & Company | 21@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 21 Simplicity “The growing complexity is unmanageable: in-house vs. external partners, established channels vs. new channels. We need help to get through this jungle.” CMO, Consumer goods company
  • 23. McKinsey & Company | 22@McKinsey @McK_MktgSales #McKGrowth Simplicity: Simplify to execute Speed and agility require relentlessly focusing on simple
  • 24. McKinsey & Company | 23@McKinsey @McK_MktgSales #McKGrowth Complexity kills Expanding geographic footprints Product and channel proliferation Digital and technology specializations Hierarchies, silos, gaps, redundancies Simplicity: Simplify to execute
  • 25. McKinsey & Company | 24@McKinsey @McK_MktgSales #McKGrowth Complex: Disparate HQs and teams Simplified: Single team mapped to customer ourney Consistent brand experience Simplicity: Simplify to execute Daimler Customer journey Before After
  • 26. McKinsey & Company | 25@McKinsey @McK_MktgSales #McKGrowth The most important questions to ask Speed Faster than our competitors or slower? Simplicity Simplifying processes or overwhelming with new things? Story Making connections or speaking into space? Substance Differentiated experience or “me-too” selling? Science Today’s insights or yesterday’s facts?
  • 27. McKinsey & Company | 26@McKinsey @McK_MktgSales #McKGrowth www.youtube.com/McKinseyCMSOForum @McK_MktgSales McKinseyonMarketingandSales.com @JeskoPerrey Jesko Perrey Senior Partner and Global Knowledge Leader of McKinsey's Marketing & Sales Practice Jonathan Gordon Leader of McKinsey's Marketing & Brand Strategy Practice McKinsey on Marketing & Sales @JWGordon Stay Connected