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Marketing3 Presentation

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This is a presentation I gave at the Marketing 3 conference on Nov 29, 2007. For more on this topic, check out http://blog.futurelab.net

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Marketing3 Presentation

  1. Marketing 3: On Accountability Alain Thys (http://blog.futurelab.net) FUTURE LAB Feel free to re-use or mash-up this presentation under Creative Commons 2.0 license (non-commercial, attribution)
  2. FUTURE LAB Alain Thys: Jekyll or Hyde ? As a retailer/VC/entrepreneur: Double digit ROI As a marketer: Close to € 100,000,000 spent to date, and very little to show for it
  3. If you think marketers have an image problem FUTURE LAB
  4. What People Think of Marketers Don’t shoot the messenger  FUTURE LAB
  5. Marketers are faddish, irresponsible, … don’t think like business people … more akin to a recalcitrant child … McKinsey & Company, CEO/CMO Survey, 2005 FUTURE LAB
  6. The average tenure of CMOs in consumer markets is 23, 15 or 12 months . FUTURE LAB
  7. FUTURE LAB Too many marketers have become so specialised that they don’t think in terms of the company’s big picture. Philip Kotler
  8. Marketers are frivolous and difficult to approach Australian Society of Certified Public Accountants FUTURE LAB
  9. Cranfield University Withhold research Take credit for other’s work Lack structure Are always in meetings Work from 10 to 4 Have long lunches Unaccountable, untouchable Seek quick promotions Churn Care about cars, stats and lunch Use jargon Slippery Expensive FUTURE LAB
  10. "We can't compete on price. We also can't compete on quality, features or service. That leaves fraud, which I'd like you to call marketing." Dilbert’s Boss cc 3.0, Megaqwerty FUTURE LAB
  11. FUTURE LAB Buy Stormhoek Wine
  12. FUTURE LAB
  13. If you think marketers have an image problem FUTURE LAB
  14. Marketers need to become more « accountable » for themselves and for the benefit of the business.. <ul><li>The « outsider’s » perspective </li></ul><ul><li>Marketing campaigns have unsure or negative ROI </li></ul><ul><li>Sales promotions don’t generate sales </li></ul><ul><li>Consumers get irritated by advertising </li></ul><ul><li>Most new value propositions fail in the market </li></ul><ul><li>The campaign presentation never reflects consumer reality </li></ul><ul><li>Marketing initiatives overpromise </li></ul><ul><li>… </li></ul><ul><li>And each year they come up with a new story </li></ul>FUTURE LAB
  15. The Marketer’s Bushido FUTURE LAB Changing marketing’s bad image
  16. The Marketer’s Bushido FUTURE LAB Insight Respect Integrity Financial Acumen Inclusion Perspective Passion
  17. The Marketer’s Bushido FUTURE LAB Insight Respect Integrity Financial Acumen Inclusion Perspective Passion
  18. FUTURE LAB In spite of all “insights” and research, 95% of consumer products introductions and innovations fail to reach their ROI targets How do you make a difference to someone who has infinite choice?
  19. German Traditional Chains vs. Hard discounters McKinsey & Company, Nov 2004 FUTURE LAB
  20. FUTURE LAB 60% of sensory experience of drinking espresso comes from the retail environment (and you lose it when you go home)
  21. The Experience IS the Product Insight Insight Insight Insight Insight Acting on Insight in emotions, rationalisations and choice drivers at every step of the experience. FUTURE LAB Insight Product « Best Practice » is Insufficient
  22. Don’t forget to understand the “influencers”
  23. <ul><li>Understand what truly drives and moves me </li></ul><ul><li>... and those who influence me </li></ul><ul><li>... at every step of the overall experience you offer </li></ul>Real Insight FUTURE LAB
  24. The Marketer’s Bushido FUTURE LAB Insight Respect Integrity Financial Acumen Inclusion Perspective Passion
  25. FUTURE LAB RESPECT
  26. FUTURE LAB RESPECT ?? http://www.youtube.com/watch?v=D3qltEtl7H8
  27. Don’t treat me like a child “ one message doesn’t fit all” FUTURE LAB
  28. FUTURE LAB <ul><li>28-34 </li></ul><ul><li>Online music, movies & laser hair removal </li></ul><ul><li>Modest but dependable disposable income </li></ul>People don’t fit boxes
  29.  
  30. To simplify and give meaning: Humans seek patterns, even where there are none
  31. “ It’s the easy way out, and as long as we all do it, we’re fine” Romanian marketer FUTURE LAB
  32. <ul><li>Let go of mindless segmentation </li></ul><ul><li>Treat markets like “people” </li></ul><ul><li>Bring back the love </li></ul><ul><li>And you might get some in return </li></ul>RESPECT FUTURE LAB
  33. The Marketer’s Bushido FUTURE LAB Insight Respect Integrity Financial Acumen Inclusion Perspective Passion
  34. <ul><li>perception </li></ul><ul><li>80% of CEO’s believe of believe their brand provides a superior customer experience </li></ul><ul><li>8 % of their customers agree </li></ul><ul><li>(Bain & Company) </li></ul>FUTURE LAB
  35. We show that we value our customers by serving them well, putting their needs and interests at the center of everything we do. (from the AOL mission statement) FUTURE LAB http://www.youtube.com/watch?v=xaaAYVUWP0I
  36. Companies break their promises every single day. Does your business keep yours? FUTURE LAB
  37. Breaking promises in a WoM world is suicidal FUTURE LAB
  38. But I’m just a marketer That is not my department … FUTURE LAB
  39. YES IT IS … Your brand communicates every time it touches a customer. As a marketer you need to manage this communication. This makes you responsible for each “ moment of truth” FUTURE LAB
  40. Source: DAVIS S., LONGORIA T., “Harmonising Your Touchpoints”, Brand Packaging, Jan/Feb 2003 Consider Each Moment of Truth as a Brand Expression FUTURE LAB
  41. In a million channel world, brands whose consumers tell the best stories, win EXPERIENCES - EMOTIONS - STORIES
  42. <ul><li>Ensure that your brand tells the truth when it makes a promise </li></ul><ul><li>And when a promise is made </li></ul><ul><li>make sure it is kept </li></ul>INTEGRITY FUTURE LAB
  43. The Marketer’s Bushido FUTURE LAB Insight Respect Integrity Financial Acumen Inclusion Perspective Passion
  44. A Reminder from Tom FUTURE LAB http://www.youtube.com/watch?v=9MaKHxsGZ-A
  45. Show Me the Money <ul><ul><li>Marketers say </li></ul></ul><ul><ul><li>“ Our advertising generates the branding and strong creative we need to differentiate ourselves in the marketplace.” </li></ul></ul><ul><ul><li>The CEO/CFO wants to hear… </li></ul></ul><ul><ul><li>“ Our analysis shows us that our € 3 million advertising campaign generated an incremental € 22.3 million in revenue. </li></ul></ul><ul><ul><li>We can continue to generate ROI up to a € 4.5 million ad spend, generating an additional € 10.6 million in incremental revenue, at which point broad media advertising becomes saturated for our market.” </li></ul></ul>Source: CFO vs. CMO Smackdown, PMD Professional, 2005
  46. MEASURE & PREDICT Case: Indian Tea company, Greek Telco. A Structural Answer: Multivariate and Agent Based Modeling FUTURE LAB AGENT BASED MODELING Case: US Packaged Consumer Goods Company
  47. Preference Purchase Repurchase Loyalty Advocacy Pragmatism: Focus your money where it matters IMPACT Average Media Consumption by Week (Europe), 2005 Source: Nielsen Interactive Europe, 2005
  48. Resist Orthodoxy <ul><li>Booking TV = higher margin </li></ul><ul><li>Standard rate-cards are less work </li></ul><ul><li>Digital avoidance is easier on the brain </li></ul><ul><li>Agency co-operation is inconvenient </li></ul>
  49. <ul><li>Establish structural measures to assess the financial impact of our marketing initiatives, in terms the business can appreciate. </li></ul><ul><li>Meanwhile, at least allocate your funds where they generate most impact for the business. </li></ul><ul><li>In short, show me the money </li></ul>FINANCIAL ACUMEN FUTURE LAB
  50. The Marketer’s Bushido FUTURE LAB Insight Respect Integrity Financial Acumen Inclusion Perspective Passion
  51. 90% of businesses are unable to execute the strategy they have on paper 70% of businesses project performance they will never attain Houston, we have a problem Source: Axon, L. Learning to lead: How Companies Grow Profits by Growing Leaders, Sept 22,2004 Source: Norton, D. Aligning your Strategy to the Customer Value Proposition, 13/9/2005
  52. Source: Norton, D. Aligning your Strategy to the Customer Value Proposition, 13/9/2005 Only 5% of the workforce understands what the strategy is
  53. FUTURE LAB THE MOMENT OF TRUTH Your brand communicates every time it touches a customer. As a marketer you need to manage this communication. This makes you responsible for each “ moment of truth”
  54. YET THEY ARE THE “MOMENT OF TRUTH” FUTURE LAB
  55. What will you do to make it “clear” FUTURE LAB Do people “get” your strategy ?
  56. FUTURE LAB <ul><li>INCLUSION </li></ul><ul><li>Make sure that everyone who needs to deliver the promise you make to the market </li></ul><ul><ul><li>Understands this promise </li></ul></ul><ul><ul><li>Knows what it means to him/her </li></ul></ul><ul><ul><li>Supports this direction </li></ul></ul><ul><ul><li>Acts upon it </li></ul></ul>
  57. The Marketer’s Bushido FUTURE LAB Insight Respect Integrity Financial Acumen Inclusion Perspective Passion
  58. Dreaming of a better future … where there is more to business than making money. FUTURE LAB
  59. FUTURE LAB DREAM ON … SHOW ME THE MONEY
  60. FUTURE LAB Be responsible AND make money
  61. 2008 FUTURE LAB Consumer Demand
  62. Market Opportunity
  63. FUTURE LAB PERSPECTIVE Do good for the world and for your business
  64. The Marketer’s Bushido FUTURE LAB Insight Respect Integrity Financial Acumen Inclusion Perspective Passion
  65. Be the First Penguin FUTURE LAB that resists threaths & temptation
  66. The Marketer’s Bushido FUTURE LAB Insight Respect Integrity Financial Acumen Inclusion Perspective Passion
  67. The Alternative FUTURE LAB
  68. http://blog.futurelab.net

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