The online version of the Marketing Update August issue can ...


Published on

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

The online version of the Marketing Update August issue can ...

  1. 1. AUGUST 2006 FINAL REMINDER: Marketing Week 2006, 22-25 August, Adelaide. IN THIS ISSUE NATIONAL PRESIDENT The toughest job for marketers? So you think your marketing job is tough? Roger James considers the challenges faced by marketers in the motor industry. Go to article NATIONAL CONFERENCE Tim Ambler’s marketing masterclass a special extra One of the world’s leading marketing thinkers, Britain’s Tim Ambler, will present two keynotes addresses plus a marketing masterclass at the AMI’s October conference in Melbourne. Go to article VALUE OF MEMBERSHIP Web hosting and advertising added to member benefits WebCentral and Professional Marketing magazine have added their special offers to the new range of benefits available to AMI members. Go to article MARKETING AND THE LAW Ring, ring … be careful who you call New restrictions on the telemarketing industry draw closer as the Government introduces its Do Not Call Register legislation into Parliament. Philippa Hore and Jacqueline Scarlett report. Go to article CUTTING-EDGE TOOLS Incentive planning system wins Marketing Science prize Chair of judges Professor John Roberts reports on the winner of the 2006 INFORMS Society for Marketing Science Practice Prize, which is supported by the AMI. Go to article PROFESSIONAL SERVICES Integrate your marketers to best use their skills Marketers can sometimes feel unloved in professional services firms. Louise Robinson and Dr Daryll Cahill say firms must understand how marketers fit into their business. Go to article BOOK REVIEWS — Magic Numbers and Asia’s Star Brands STATE NEWS — All the latest news from each state is on the AMI website IN BRIEF — Hyundai shifting A-League focus to fans Go to article EVENTS — All the latest event information is on the AMI website The online version of the Marketing Update August issue can be accessed at:
  2. 2. 02 National PRESIDENT AUGUST 2006 The toughest job for marketers? So you think your marketing job is tough? Consider the By Roger James FAMI CPM challenges faced by marketers in the motor industry. national president Are there too many competitors in your market? In Australian Marketing Institute Australia today there are 44 different brands of passenger car on sale. Indeed, there are more than 250 different models, not Email: including variants. This count treats the BMW 3 Series, for example, as one model, when in fact there are 11 different cars on sale in Australia that carry the 3 Series badge. Include variants and you have a total of many hundreds. The range of vehicles in the car market means that real competitors in each segment are more limited. The compact Hyundai Getz is not likely to lose any sales to the luxury cars at the moment. Since fuel price rises have taken hold, Holden Caprice. Nonetheless, as Subaru chairman and our Sir sales of large cars have plummeted, falling more than 20% in Charles McGrath Award winner Trevor Amery observes, the first six months of this year compared with 2005 sales. Australia is arguably the most competitive car market in the The stand-out example of tough marketing in this segment world. is the Mitsubishi 380, successor to the Magna. The Magna was Is price competition a problem for you? Again, the always a well-regarded car, but perhaps because it was front- passenger car market is legendary for vicious price wars. wheel drive it never seemed to break through the conservative Model run-outs often lead to margins disappearing as consciousness of the conventional six-cylinder, rear-wheel- manufacturers try to get dealers to clear stock of the current drive buyer. model before the new one is released, as has been happening The 380 was launched last year in what many industry recently with Holden Commodore. pundits regarded as the last roll of the dice for Mitsubishi Another important aspect of pricing in some segments of Australia. The car was extremely well reviewed, with the the car market is that the majority of vehicles are sold ‘in RACV and its sister organisations judging it to be Australia’s bulk’, at prices the average retail punter would never see. The best large car. fleet market has accounted for up to 60% of sales of Then the unstable situation in the Middle East, combined conventional ‘big six’ cars in the past and distorts the retail with continuing growth in world demand for oil, leads to fuel pricing picture. prices rising 50% or more in a year and the whole segment in Is launching a new product a difficult and expensive task which the 380 competes more or less collapses. You would be in your market? Designing a new model motor vehicle starts hard-pressed to find a tougher marketing situation, but I would up to four years before launch and requires forward be pleased to hear from you if you can think of examples that commitment of many millions of dollars. This is possibly the compare with or exceed this one ( toughest aspect of the car market, since it requires product As a footnote, it is not all bad news in the motor industry. planners and marketers to predict the state of the market years While the big sixes suffer, sales in the light segment, inhabited ahead. by cars such as Toyota Yaris, Hyundai Getz and Holden Do external market conditions make your marketing more Barina, have risen by more than 30% in the first six months of difficult? Consider the position faced by marketers of large this year. ● ● MarketingUPDATE R E T U R N T O P A G E 1●
  3. 3. AUGUST 2006 National CONFERENCE 03 Tim Ambler’s marketing masterclass a special extra The 2006 AMI National Conference, to be held in Melbourne FEATURED SPEAKERS from 11-13 October, will include an exciting additional event – a workshop for senior marketing practitioners run by one of the world’s leading marketing thinkers, Britain’s Tim Ambler. With the challenging title of ‘You don’t get rich by making money’, this workshop will address issues that are central to finding and harvesting cash flow – marketing itself. As Ambler says: “Money is the result of success, not the cause of it. Marketers today are starting to give far too much time to financing, relative to doing marketing. A preoccupation with cash, e.g. budgets, damages a business as much as neglecting marketing.” He distinguishes start-up or small businesses that don’t see themselves as doing formal marketing from large Tim Ambler Trevor Amery companies that spend so much time on the formalities they don’t do any real marketing either. The workshop will consider some of the key issues in terms of dynamic marketing capabilities, flowing from the work of Neil Morgan of the Kelley School of Business at Indiana University, United States. It will also draw on Tim Ambler’s own work in helping to understand and use a company’s marketing capabilities. While he acknowledges the importance of metrics for evaluating and improving marketing in the future, there is a need to put appropriate emphasis on performance. As he succinctly puts it: “Adding up runs is not as important as making them in the first place.” John O’Neill Harold Mitchell The workshop will be held in Melbourne on Friday 13 October at the Sofitel Hotel. Registration can be made with ● Trevor Amery, the chairman of Subaru Australia and winner conference registration or independently. of the AMI’s 2005 Sir Charles McGrath Award for lifetime achievement in marketing. Featured speakers at the conference ● John O’Neill AO, chief executive of the Football Federation Tim Ambler, who is a senior fellow at the London Australia, on ‘Football in Australia: What Lies Ahead?’ Business School, will also speak twice as a keynote speaker at ● Harold Mitchell AO, chairman of Mitchell & Partners, on the AMI National Conference. His day one address will be: ‘The Future of Media Buying in Australia’. ‘Marketing Finance: Can Marketing Performance be Measured Full program and registration details for the conference Financially?’ can be found on the conference website at His day two address will dip into controversy: ‘Obesity and Advertising: Does Advertising Influence Childhood Inquiries can be made to national events manager Obesity?’ Roxanne Ruscoe on 1300 737 445 or email Other high-profile speakers — all successful marketers and business people — include: For the full national conference program, go to the conference website ● MarketingUPDATE R E T U R N T O P A G E 1●
  4. 4. 04 Value of MEMBERSHIP AUGUST 2006 Web hosting and advertising added to new member benefits Special offers in web hosting, managed services and advertising have been added to the new range of benefits available to AMI members. WebCentral, Australia’s largest web and application hosting company, is offering a 10% discount for shared web hosting, online business tools and business email services. Members can also access a free, 30-day trial of the Promotions Manager email marketing tool, plus there is a further special offer on Promotions Manager for members who sign up for this tool. Read more details about WebCentral’s exciting new web hosting and managed services offers on the next page or go to WebCentral’s AMI benefits page on the AMI website by dining discounts at more than 200 hotels across Australia and clicking here. the Asia-Pacific. B&T’s Professional Marketing magazine is the flagship ● Hertz Affinity Car Rental program: Special benefits on trade title for the marketing industry and is the official car rental, access to special offers and fee waived membership magazine of the Australian Marketing Institute. Professional to the Hertz #1 Club Gold, which provides a fast, easy way to Marketing and the AMI are offering members the opportunity car rental within Australia and around the world. to advertise in this magazine at substantially discounted rates ● Qantas Club Lounge membership at corporate rates: — a 30% discount off the standard casual rates for display Enjoy access to the services and facilities of more than 250 advertising space. Qantas Club and partner lounges around the world (subject to Read more details about B&T’s Professional Marketing access conditions). exciting new offer on the next page or go to Professional ● Access to the Aquent Salary Monitor Report: The AMI Marketing’s AMI benefits page on the AMI website by partnered with Aquent to conduct this year’s survey of the clicking here. marketing, creative, advertising, media, public relations and The AMI’s Marketing Manager, Anthony Barac-Dunn, business support sectors across Australia. said the additional benefits would be a useful addition to the ● Marketing oriented dotpoint research reports: This toolkit of the modern marketing professional. “The AMI is service, called dotpoint, provides research on a topic of striving to increase access to more benefits that will enhance choice, presented in a easy-to-use dot-point format and the day-to-day business activities of our members,” he said. available at a discounted rate. ● IBISWorld research reports: Provides members with More new benefits reports on Australia’s 500 industries, top 2000 companies, and Web hosting, managed services and publication hundreds of business indicators at a discounted rate, plus free advertising join an array of new member benefits announced access to industry and company snapshots, special offers and a by the Institute in April. These are: monthly online bulletin. ● Professional indemnity insurance: Members have access to More details about the new benefits can be read on the competitively discounted rates, and Certified Practising next page or by going to the AMI website benefits page by Marketer (CPM) members receive an additional discount. clicking here. ● Accor’s Advantage Plus program: AMI members are For more information regarding the new membership offered an opportunity to join this program, which provides a benefits please contact AMI Membership Services on 1800 wide selection of benefits including accommodation and 240 264 or email ●MarketingUPDATE R E T U R N T O P A G E 1●
  5. 5. AUSTRALIAN MARKETING INSTITUTE 2006 MEMBERSHIP BENEFITS U P D AT E AUGUST 2006 The Australian Marketing Institute has negotiated on behalf of members an array of new and exclusive benefits, which include discounts off standard rates and complement the current AMI membership services. PROFESSIONAL INDEMNITY INSURANCE Q A N TA S C L U B L O U N G E M E M B E R S H I P I N F O R M AT I O N S E R V I C E S Practising as a marketing professional When you travel, enjoy the services and The AMI has partnered with Aquent, in today’s business world can be both facilities provided by The Qantas Club by a global staffing firm, to conduct the exhilarating, and at the same time volatile… taking advantage of the generous corporate 2006/2007 Aquent Orange Book - Salary with exposure to expensive, time-consuming rates for AMI members. As a Qantas Club Survey and Industry Monitor for the litigation a real threat. The AMI has negotiated member you have access to: • Lounge Marketing, Communications and Creative a professional indemnity insurance facility, facilities which include complimentary Industries across Australia. AMI and Aquent through Countrywide Tolstrup* which is refreshments and private meeting rooms will supply members with a copy of this exclusive to all members and provides: • Services such as priority baggage handling report, which provides: • Latest salary • Competitively discounted rates for and personal seat preferences • Access to information on hundreds of staff categories marketing professionals • An additional more than 250 Qantas Club, partner airline • Statistics on revenue growth, staff discount for Certified Practising Marketers and associated lounges worldwide (subject to retention strategies, hiring trends and access conditions) anticipated salary increases • A valuable management tool for any decision-maker in the marketing, communications and creative sectors H O T E L & H O S P I TA L I T Y M E M B E R S H I P WEB HOSTING & MANAGED SERVICES Do you need to quickly ‘get up to speed’ As a member you have the opportunity to WebCentral is Australia’s largest web and on a topic for new business pitches, save on accommodation and dining at a application hosting company, providing web presentations, emerging markets or new choice of hotels throughout Australia and hosting and email services to companies of business opportunities? In alliance with Axiom the Asia Pacific. Membership of the Accor all sizes in the Asia Pacific region. As a major Consulting Australia, the AMI is offering Advantage Plus program provides you with a sponsor of the AMI, WebCentral is offering members an exclusive research service called wide selection of benefits including: members exclusive access to the following dotpoint. Advantages include: • Marketing • 50% off the daily rack rate on accommodation discounted web hosting and managed oriented summaries on the topic of choice and up to 50% discount when dining in services: • 10% discounts for shared web • Fast and easy-to-use reports for marketing, participating hotels and restaurants hosting, online business tools and business public relations and advertising professionals • One night’s complimentary accommodation, email services • Special offers, FREE trial • 15% discount off standard and even priority access to major events periods and ‘hands on’ training sessions rates and a FREE ‘snapshot’ report for prospective users IBISWorld is a one stop shop when it comes to researching the key industries and enterprises A F F I N I T Y C A R R E N TA L P R O G R A M P U B L I C AT I O N A D V E R T I S I N G that drive the Australian economy, together with the business environment in which they operate. The AMI, via IBISWorld, will provide Hertz and the AMI are offering car rental B&T’s Professional Marketing magazine members with reports on Australia’s 500 benefits to members. As an AMI member, you is the flagship trade title for the marketing industries, top 2000 companies and hundreds will receive: • Special benefits on car rental industry, and is the official magazine of the of business indicators to assist in your business • Access to special offers such as upgrades Australian Marketing Institute. Professional making decisions. Member benefits include: and free day rental offers throughout the Marketing and the AMI are offering members • 15% discounts for subscription packages and year • Fee waived membership to the the opportunity to advertise in this magazine individual industry, company and business Hertz #1 Club Gold program at substantially discounted rates: environment reports • FREE industry and It’s the fast, easy way to rent a Hertz car in • 30% discount off the standard casual rates company ‘snapshots’, special offers and an Australia and around the world. for display advertising space online Industry Bulletin CURRENT MEMBERSHIP BENEFITS • Professional Development • Visibility • Events • Recognition of Achievement • Career Advancement • Certified Practising Marketer Program • Practising Standards and Code of Professional Conduct • Marketing Publications • Networking Opportunities • Professional Recognition F U R T H E R I N F O R M AT I O N For more information regarding our new membership benefits, please contact the Australian Marketing Institute: tel 1800 240 264 fax 1800 241 264 email website *Countrywide Tolstrup Financial Services Group Pty Ltd operates under Australian Financial Services License number 244436. © 2006 Australian Marketing Institute ABN 30 000 026 586
  6. 6. 06 Marketing and THE LAW AUGUST 2006 Ring, ring … be careful who you call The Federal Government has introduced into Parliament the By Philippa Hore (left), Do Not Call Register Bill and the Do Not Call Register Special Counsel, (Consequential Amendments) Bill. Technology and What does the proposed legislation prevent? Intellectual Property, and As a general rule, it will be a breach of the legislation to Jacqueline Scarlett, make a telemarketing call to an Australian telephone number senior solicitor, that is listed on the Do Not Call Register. Clayton Utz However, listing a telephone number on the register will not prevent calls from all telemarketers. Charities, religious Email: organisations, government bodies, registered political parties, Philippa Hore independent Members of Parliament and candidates and Jacqueline Scarlett educational institutions (where the call is made to a student or former student) are still permitted to call. Website: In her media release about the introduction of the bills to Parliament, Senator Helen Coonan said that it was important to “allow these organisations, who carry out activities in the public interest, to be able to continue to provide services to the and the Government was concerned not to potentially expose community”. organisations to fines and penalties for ordinary business-to- In addition, telemarketing calls will not infringe the business contact”. legislation if: Outsourced telemarketing services ● The call is made with the express or inferred consent of the Organisations that outsource their telemarketing calls relevant telephone account holder or their nominee. must expressly require that the person to whom they outsource ● The call is made to a number on a list that the telemarketer those calls (e.g. a call centre) must comply with the had checked against the register in the past 30 days and the requirements of the legislation and also take reasonable steps number was not listed on the register at that time. to ensure that their employees and agents comply. ● The call was made by mistake. Consequences of non-compliance ● The caller had taken reasonable precautions and exercised ACMA will be responsible for investigating complaints due diligence to avoid the contravention. about telemarketing calls and enforcing the legislation. A Establishment of the Do Not Call Register range of civil penalties will be available, depending on the The legislation requires the Australian Communications nature of the breach. and Media Authority (ACMA) to establish the register. ACMA Fines for breach of the legislation range from $1,100 to can either maintain the register itself or outsource its operation $1.1 million. ACMA will also be able to take other steps, such to a third party. The Federal Government has indicated that it as issuing formal warnings or infringement notices and taking expects ACMA will put the operation of the register out to action in the Federal Court for injunctive relief. tender once the legislation has been passed. Regulating legitimate telemarketing calls Once established, individuals will be able to request that ACMA is obliged under the legislation to develop a their number be listed on the register. There will be no charge compulsory standard for all telemarketing calls (including for this service. The number will then be included on the those that fall within the exemptions outlined). The standards register for three years and can be re-registered when the three will regulate matters such as the times that telemarketing calls years expires or if it was removed for another reason. can be made, the information that must be given to call The cost of the register will be shared by the Federal recipients and when calls must be terminated. The standard Government (which will contribute more than $17 million) will also require that telemarketers must enable calling line and the telemarketing industry (which will contribute an identification. estimated $15.9 million over four years). The telemarketing Timeframe industry’s contribution will be made by way of fees paid to Senator Coonan has requested speedy consideration of the ‘wash’ call lists against the telephone numbers listed in the bills by the House of Representatives and the Senate so that register. ACMA can start implementing the Do Not Call Register as Small businesses will not be able to register early as possible in 2007. Contrary to information released earlier this year, the The Federal Government has previously predicted that Government has decided not to permit small businesses to list there would be one million registrations within a week of the their numbers on the Do Not Call Register. According to register being established and four million registrations within Senator Coonan, “businesses contact each other for a the first year. ● multitude of reasons in the course of day to day operations, ●MarketingUPDATE R E T U R N T O P A G E 1●
  7. 7. AUGUST 2006 Cutting edge TOOLS 07 Incentive planning system wins Marketing Science prize The 2006 INFORMS Society for Marketing Science Practice By John Roberts FAMI CPM Prize competition judges declared a winner at the 28th Marketing Science Conference in June, hosted by the Katz John Roberts is Professor of Marketing at the Graduate School of Business at the University of Pittsburgh, Australian Graduate School of Management and the USA. London Business School, and chair, 2006 ISMS Practice The prize is supported by grants from the Marketing Prize Competition Committee. He is also team leader Science Institute, the Brand Science Institute, the Institute for of the AMI’s Marketing Metrics Project. the Study of Business Markets, the European Marketing Email: Academy, and the Australian Marketing Institute, in conjunction with the Australian and New Zealand Academy of Marketing. The winning entry was ‘Incentive Planning System: A DSS for Planning Pricing and Promotions in the Automobile Industry’, by a joint team of Professor Jorge Silva-Risso from the University of California, Riverside, and J. D. Power’s Irina Ionova. Their work reports on a promotion analysis tool that enabled car manufacturers to improve the timing, frequency, and components of their promotional activity to maintain sales but reduce margin loss. The authors presented evidence of savings in the order of $2 billion, with Daimler Chrysler executives alone claiming annual benefits of $500 million. The researchers used the sales data available to J. D. Power to help them work with individual car manufacturers to calculate the dynamic impact of sales promotions. The work was implemented in a phased approach, allowing an evolutionary increase in sophistication among its users. The Practice Prize is awarded for an outstanding implementation of marketing science concepts and methods. The methodology used must be sound and appropriate to the problem and organisation, and the work should have had significant, verifiable and, preferably, a quantitative impact on the performance of the client organisation. The 2006 Practice Prize Committee comprised Nils Andres (representing the Brand Science Institute), Pete Fader, ABOVE: Prize Committee chair Professor John Roberts Delaine Hampton from Procter & Gamble, Dominique (left) presents the winners' plaque to Professor Jorge Hanssens (representing the Marketing Science Institute), Gary Silva-Risso, from the University of California, Riverside. Lilien (representing the Institute for the Study of Business Markets), John Roberts (Prize Committee chair), Steve Shugan (as Marketing Science editor), Jan-Benedict Steenkamp ‘BRAN*EQT: A Model and Simulator for Estimating, (representing the European Marketing Academy), and Tulin Tracking, and Managing Multi-category Brand Equity’, by Erdem (as ISMS president). Venkatesh Shankar, Pablo Azar, and Matthew Fuller In the BRAN*EQT study, the researchers examined the The other finalists drivers of the Allstate brand name. By understanding how ‘The Power of CLV’, by V. Kumar, Denise Beckman, advertising investments directly influenced the brand equity of Tim Bohling, Rajkumar Venkatesan Allstate, the researchers were able to make brand-building This research described a carefully planned and activities within the firm accountable. implemented program within IBM to optimise the number of This led to advertising changing from being viewed as a times the organisation ‘touches’ its customers, incorporating discretionary cost to a strategic investment. One of the useful innovations with respect to alignment with corporate aspects of the research was to ‘untease’ the benefits of objectives, forecasting cost to serve, imputing unobserved corporate branding into the advantages that were captured by contribution margins, and allowing for interdependence of each of the divisions within Allstate. purchase incidence and quantity. continued next page ●MarketingUPDATE R E T U R N T O P A G E 1●
  8. 8. 08 Cutting edge TOOLS AUGUST 2006 Presentations available for study from previous page As with previous competitions, the presentations were professionally videotaped and have been edited especially for ‘Planning New Tariffs at Tele.Ring – An Integrated STP classroom use. These DVD versions of the presentations are in Tool Designed for Managerial Applicability’, by Martin chapter format, enabling rapid and easy selection of the Natter, Andreas Mild, Alfred Taudes, and Udo Wagner aspects of the presentations that instructors wish to highlight. Tele.Ring is a leading cellular phone supplier within DVD users also have access to the papers and the related Austria. A new entrant threatened its position and past competition PowerPoint presentations for use in the experience suggested its share could become marginal as it classroom. This material, along with the material from was squeezed by different players within the market. By previous competitions (available now), will be available by 15 undertaking a detailed segmentation study, Tele.Ring was able October at to identify a new market opportunity of no upfront In addition, papers and reports on these outstanding subscription charges, which would be difficult for other implementations of marketing science will appear in a competitors to mimic. forthcoming issue of Marketing Science. Short 3-4 minute A sophisticated perceptual mapping study not only made video summaries of each of the presentations are now the resulting service innovation credible to senior available at management, overcoming internal barriers to its launch, it also Entries are being sought for the 2007 Practice Prize provided ideas as to how the product could be introduced with Competition. For further information, contact John Roberts at a compelling and relevant advertising campaign. ● IN BRIEF Hyundai shifting A-League focus to fans the company wanted with the sport and its followers. © pando Publishing 2006 Korean motor vehicle manufacturer Hyundai has provided some insight into its naming rights sponsorship of the A- The first item of ‘In brief’ comes courtesy of pando League heading into the competition’s second season. Publishing. AMI members receive a 10% discount on The senior manager marketing for Hyundai Australia, pando newsletters: Australian Corporate Hospitality; Alex Pinsuti, said that the first year of the arrangement was a Onsport Newsletter; Australian Sponsorship Newsletter; and success and had confirmed that sponsorship was very much Australian Sponsorship Database. Email about developing a long-term partnership and having a long-, referring to your membership, to term strategy. obtain a special subscription form. He said that you simply did not get instant rewards from sponsorship and that, as such, the company had developed a multi-year strategy for its involvement with the competition. Member receives humanitarian award Pinsuti said that the year one objective was to ensure the The Australian Lions Foundation has recognised the efforts of success of the competition. The company had worked closely AMI member Bob Crawshaw, who has helped more than 60 with Football Federation Australia on several marketing volunteer organisations in the past three years. initiatives to promote the new league. He said that the first The foundation presented its prestigious Ian Stockdale year was very much about introducing the brand to the football Award for Humanitarian Services to Crawshaw, of Canberra’s community and building awareness of the Hyundai brand’s Maine Street Marketing, for providing marketing support to link to the competition in Australia. community groups. Moving into year two, Pinsuti said its sponsorship would Since 2003, Crawshaw has run free marketing workshops involve the development of closer relationships with A-League for not-for-profit organisations to help them promote their supporters, in that the company wanted to interact more and work. Crawshaw said: “The workshops, provided under the introduce its product range to the A-League fan base. Lions banner, offer a service many local groups could not He commented that while year one was all about otherwise afford.” developing the Hyundai brand, which had been successful, Have you seen the AMI’s free job year two would see the company take its relationship with the opportunities service? fan to the next level and encourage them to take a closer look at Hyundai vehicles. He said that the company wanted to The AMI offers its members the opportunity to list ‘positions connect with people and point out that Hyundai was the brand vacant’ and ‘positions wanted’ advertisements on its website. that supported their game, both locally and internationally. This service is free of charge, and offers the opportunity to get Pinsuti said that the tag line it had developed in Australia your advertisement in front of a qualified audience. Further — “where there is life there is football, and where there is details can be found on the job opportunities page of the football there is Hyundai” — really summed up the alignment website by clicking here. ●MarketingUPDATE R E T U R N T O P A G E 1●
  9. 9. AUGUST 2006 Professional SERVICES 09 Integrate your marketers to best use their skills By Louise Robinson and Dr Daryll Cahill Louise Robinson AMAMI is a national director of business development and Professional services firms need marketers (and many other marketing. She has more than 12 years professionals outside their core technical service offering) to of senior professional services create a sustainable and profitable client base. However, experience in large Australian legal partners’ lack of understanding of marketers’ skills and ways and global accounting firms. of working can cause frustration on both sides, leaving the Email: marketers feeling that their planning and advice is being ignored and the partners wondering why they hired marketing professionals in the first place. Once a firm has decided to hire marketers, it is essential to Dr Daryll Cahill is a senior lecturer in understand how to make best use of their expertise and how to the School of Accounting and Law, RMIT integrate their work with that of the firm’s fee earners. University, Melbourne, with research Expectations for both sets of professionals must be discussed interest in measuring intangible assets and aligned with an agreed marketing plan. and intellectual capital. First, a professional services firm needs to understand that Email: marketing has several broad specialisations. What is marketing? Marketing generally can be defined as devising and using posters. Advertising can be used to generate brand or name a range of activities that will assist in positioning the firm to recognition, assist with recruitment, announce successes such sell services to specific target groups. The marketing of the as awards and achievements, or to promote a specialisation. firm’s services may be presented as the provision of solutions To achieve a return on investment in any of these to organisations’ needs and problems through devices such as marketing-related activities, professional services firms need events, sponsorships, seminars and presentations, and to understand these specialist roles and how they can be supporting communications materials including brochures, integrated into practice development. Without a long-term tenders, and credentials statements. strategic view, the skills of marketing staff will be under-used. Business development is based on understanding clients Professional services firms need the infrastructure to manage and the market in a systematic manner and then devising marketing staff — career paths, access to management and strategies to meet the needs uncovered. Business development partners — plus an understanding of the application of aims to retain clients and recurring revenue and to generate marketing skills. new revenue from existing clients or strategically selected Many marketing activities will be wasted effort if they are targets. undertaken on the spur of the moment, suddenly dragging fee Communications can be divided broadly into external (to earners off billable work and forcing the marketing the marketplace) and internal (to staff). External professional to quickly act, unplanned, without understanding communication activities include media and public relations, of expectations or outcomes. production of brochures, capability statements, speeches and Marketing professionals also need to play a role in the presentations, and Internet, email and direct marketing education process. They must articulate how professional activities that increase knowledge of a firm’s brand and marketing skills can meet the firm’s present and future needs, reputation to clients and targets. The communication can be such as identification and development of revenue general, to the mass market, or tailored to specific clients. opportunities, market positioning and brand development, and Internal communications involves the use of intranets/ how the results of their work can be measured and assessed. email, in-house publications, voicemail, posters, and internal speaking forums. Internal communication is important to What marketing can and cannot do ensure that messages conveyed to the external marketplace are Here is an outline of what can and cannot be achieved by known and reinforced by all staff. It also plays an important a professional services firm using marketing’s skills and tools. role in ensuring that conflicts of interest are uncovered and Marketing useful business, new client or target relationships are Marketing can: identified and used in retaining or winning clients. ● Provide effective tools to reach key targets. Advertising provides information about the organisation ● Measure and monitor activities used to reach targets. and its work. It involves different types of media: print-based ● Tie external communications to business needs. advertising, catalogues, flyers/inserts in publications or handouts, commercials on radio, TV, Internet, billboards and continued next page ●MarketingUPDATE R E T U R N T O P A G E 1●
  10. 10. 10 Professional SERVICES AUGUST 2006 from previous page ● Size of engagements – has the work increased in scope or complexity. Marketing cannot: ● Client satisfaction measures as per client feedback. ● Be successful if delivered piecemeal or outside a defined ● Client retention or new client wins, strategy. ● Number of relationships and depth of these – i.e. decision- ● Replace face-to-face relationships or a total communications maker-level access arising from marketing activities. program. External communications Indicative measures: External communications can: ● Number of materials produced that achieve desired ● Profile expertise in particular area. outcomes, e.g. tenders, marketing collateral that can be a ● Increase awareness of credentials. talking point for clients. ● Showcase intellectual capital. ● Feedback from clients or partners as to the accuracy and ● Assist in differentiation from competitors. quality of marketing information and queries generated. ● Enhance market reputation. Advertising ● Lead to more publicity. Advertising can: External communications cannot: ● Assist the market to become aware of your firm and its ● Be effectively controlled. services. ● Create sales. ● Generate interest and inquiries. ● Compel people to buy. ● Complement an external communications program, ● Limit competitor activity. especially media. Indicative measures: Advertising cannot: ● Number of media hits (compared with competitors). ● Build relationships with clients. ● Number of follow-up pieces of media arising from activities, ● Compel people to contact the firm. e.g. additional request for information arising from release, ● Replace face-to-face or relationship-building activities. quoting of source article in other articles. Indicative measures: ● Measurement of Internet traffic, particularly relating to ● Responses from a ‘call to action’ in the advertisement or campaigns. arising from a sponsorship. Internal communications ● Number of queries generated from advertising. Internal communications can: ● Capturing comments from clients and targets (solicited and ● Profile expertise of firm to all staff. unsolicited feedback). ● Reinforce firm’s values to staff. Business development ● Identify relationships or prior work for client. Business development can: ● Educate staff on external messages and brand. ● Provide understanding of existing clients and their needs. Internal communications cannot: ● Provide analysis and strategy of targets and how to reach ● Generate sales or interest from the marketplace. them. ● Build relationships with clients. ● Focus resources to meet business needs for profitable, long- Indicative measures: term client relationships. ● The staff understands the firm’s core values (solicited and Business development cannot: unsolicited feedback). ● Replace the need to act in order to retain or gain new clients. ● Staff can name key clients/industry segments and key ● Be effective without implementation by professional staff. statistics about the firm as per surveys and feedback. ● Work in isolation from other specialists. ● Responses to conflict or relationship searches (number, Indicative measures: timeliness and additional information). ● ● Number of new engagements from cross-referrals in targeted segments. ●MarketingUPDATE R E T U R N T O P A G E 1●
  11. 11. AUGUST 2006 Book REVIEW 11 Magic Num8ers for Consumer acumen, how to evaluate return on investment for marketing Marketing strategies, and ultimately it speaks the language of general — Key Measures to Evaluate Marketing Success management to fast-track approvals for marketing proposals. By John Davis. Published by John Wiley & Sons (Asia) Also an excellent tool for training and guiding marketing Pte Ltd, Singapore, 2005. 309 pages. RRP $46.95. staff, the simple and concise format is more in the style of ISBN 0 470 82162 0. ‘Marketing Numbers for Dummies’. Read this book and you will have the answers to questions you were too afraid to ask. Reviewed by TARNYA KEATING The book is clearly organised and succinctly covers how to measure (the definition and formulas), report (how to find Although you might groan at the title and the subject matter, the data), compare and evaluate (what it means and potential almost any marketer who reads this book will find it is exactly challenges) on the four main marketing areas for evaluation: what they have been searching for or what is missing from market; company; customer; and marketing. their marketing reference library. In reviewing the book with a senior finance manager, I From the start, author John Davis is quick to point out the found all the approaches and formulas presented to be in line struggles that we face at the cold front of our profession: “… with Australian and general company practices. The only really marketing is a hybrid: art and science; qualitative and contentious area covered is how to measure brand equity. quantitative. There are no perfect formulas or idea practices However, as with all sections in the book, a fair that are uniform across or even within industries”. opinion and more than one formula are discussed in However, I strongly believe this detail. book fills a gap in marketing Magic Num8ers for Consumer Marketing is reference materials. It is a shorthand recommended as essential for every marketing guide to the economic and financial manager’s shelf! application of marketing and an excellent reference guide to consumer Tarnya Keating is the regional marketing marketing metrics. It shows how to manager for Delfin Lend Lease in NSW/ACT. further develop a marketer’s business ●MarketingUPDATE R E T U R N T O P A G E 1●
  12. 12. 12 Book REVIEW AUGUST 2006 Asia’s Star Brands message is an accurate portrayal of the potential of Asia in a globalising world. By Paul Temporal. Published by John Wiley & Sons, The book tries to cover the branding aspects of success Singapore, 2006. 301 pages. $30.95 (pb). and attempts to be a text book set of cases. However, it does ISBN 0 47082156 5. not quite meet either of those objectives. First, if you knew anything about branding (which most of us in marketing do), Reviewed by DR LINDA BRENNAN AMAMI CPM this book does not tell you anything new or different. In Reis and Trout parlance, it fails the differentiation test As someone who is interested in international marketing and and does not claim a unique position in the marketplace (in constantly on the lookout for examples of marketing in this case the mind of the reader). If you knew nothing at all practice, I was really looking forward to reading this book. about branding it would be equally as problematic because it is However, I found it somewhat disappointing because it did not so filled with marketing jargon that an outsider would have help my knowledge of Asian markets, people or companies. difficulty interpreting it. The ‘star brands’ identified were not always Asian, either. Second, while I feel sorry for case study writers in this day For example, a German goes to Thailand, adopts their idea for and age of real-time Internet updating, much of the a ‘tonic drink’ and starts selling as a joint venture information provided is already out of date and/or is readily in Europe. This is the Red Bull Story and, yes, it accessible from websites – in which case justifying the was successful, but … what I want to know is book’s price tag is an issue. where is ‘Asia’ in this story? Would a uniquely However, what it does do is Asian approach be as successful? summarise a lot of material. This This question arose because many of the function has value if you are time poor cases are not Asian at all. For example, last and need a refresher course in branding time I looked, Jim Thompson came from the strategy. United States, Sir Stamford Raffles was ‘old British empire’ and Emirates is located in Dr Linda Brennan is Associate Professor in the Middle East. Marketing and Director of Undergraduate The lessons learned from this book Programs in the Faculty of Business and might be that to be successful you should Enterprise at Swinburne University, Victoria. be anything but Asian. I don’t think this ●MarketingUPDATE R E T U R N T O P A G E 1●