Introduction to Marketing Intelligence - Part I

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The first lecture of the marketing intelligence session - the foundations

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Introduction to Marketing Intelligence - Part I

  1. 1. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Introduction to Marketing Intelligence Adding Real Value to Your Marketing Department
  2. 2. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED “Every week, I have to go to a gun fight, the senior executive leadership meeting, and I am tired of going to a gun fight with a knife.”
  3. 3. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Marketers are struggling with their budgets and are constantly being asked to do more with less.
  4. 4. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED For marketers, the challenge of providing concrete results is amplified since brand and awareness are “fuzzy” and are not directly related to sales revenues
  5. 5. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED During this course, I will give you examples of 252 companies that make up over US$ 53 billion of annual marketing spending
  6. 6. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLEDHTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Marketing Intelligence Framework
  7. 7. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Some Food For Thought
  8. 8. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED 55% of the marketing executives surveyed reported that their staff does not understand essential marketing metrics
  9. 9. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED 80% of organizations do not use marketing intelligence
  10. 10. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED What you will learn in this course is that this can all be changed without a major investment in time or resources by focusing on measuring the right metrics in the right way
  11. 11. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED This course is intended for anyone in marketing who wants to significantly improve their marketing performance and justify marketing spending
  12. 12. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Now, we could talk about the 50 to 100 metrics applicable to marketing, but I will talk about 15 that are really important
  13. 13. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED I will teach you how to use these metrics to quantify the value of marketing and radically improve marketing performance
  14. 14. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Why is marketing intelligence so difficult for many organizations?
  15. 15. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Reasons range from “we don’t know how” to the challenge that branding and awareness marketing activities are fuzzy and don’t directly impact sales revenues in a short time period
  16. 16. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED International Data Corporation (IDC) estimates that data storage is growing at 60% annually, which tells us that stored data is doubling every 20 months
  17. 17. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLEDHTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The Different Scopes of Intelligence
  18. 18. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The Marketing Divide
  19. 19. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLEDHTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED A Story of 3 Electronic Retailers
  20. 20. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED One day, the CMO of Best Buy was asked – Who is your primary competitor?
  21. 21. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED You would think that he would answer – “Circuit City,” but instead he said – “Wal-Mart”
  22. 22. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED What?!?! Walmart?
  23. 23. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Wal-Mart is the world’s largest retail chain; and with amazingly efficient supply chain and economy of scale, driving price and margins to the bare minimum
  24. 24. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED But why not Circuit City? He said – “They just don’t get it.”
  25. 25. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Circuit City’s marketing strategy was to constantly run sales. Yes, this drew customers to the stores and drove sales revenues, but competing with Wal-Mart – running sales actually lost the business money – negative profitability!
  26. 26. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Circuit City went bankrupt and was liquidated in January 2009
  27. 27. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Why is Best Buy different? How did it survive?
  28. 28. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED A significant amount of the marketing budget is spent on demand generation marketing – designed to get customers into the stores
  29. 29. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED But Best Buy spends more money on branding, CRM and infrastructure to support Marketing Intelligence
  30. 30. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Best Buy also keeps score – measuring the results of marketing initiatives to optimize its marketing activities
  31. 31. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Best Buy marketers analyze customer purchasing characteristics and demographics on a store-by-store basis.
  32. 32. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED How did that help?
  33. 33. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED They identified one segment in certain geographies that they called “Jills”
  34. 34. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED “Jills” are soccer moms who may be working but also run the family. She also makes the primary electronics purchasing decisions for the household
  35. 35. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED How did the “Jills” help Best Buy?
  36. 36. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Best Buy customized the marketing in specific stores where there were a significant number of “Jills” in the surrounding population
  37. 37. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED This meant specialized in-store advertising, direct mail and changing the product mix to appeal to them, which lead to a large percentage increase in these store’s sales revenue
  38. 38. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Marketers that “get” marketing have a competitive advantage and those who do not gradually lose market share and/or profitability until they are swallowed by competitors or go out of business
  39. 39. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Some Statistics
  40. 40. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED There is an existence of a divide between market leaders and followers
  41. 41. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLEDHTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED What Do We Know From Our Research  53% of organizations do not use forecasts of campaign return on marketing investment (ROMI), net present value (NPV), customer lifetime value (CLTV), and/or other performance metrics  57% do not use business cases to evaluate marketing campaigns for funding  61% do not have a defined and documented process to screen, evaluate, and prioritize marketing campaigns  69% do not use experiments contrasting the impact of pilot marketing campaigns with a control group  73% do not use scorecards rating each campaign relative to key business objectives prior to a funding decision.
  42. 42. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED A majority of marketing organizations do not have professional processes in place to manage marketing and that most do not use marketing metrics in their day- to-day marketing activities
  43. 43. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The divide is even more pronounced when we look at marketing organizations’ use of data
  44. 44. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLEDHTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED How Marketing Uses Data  57% do not use a centralized database to track and analyze their marketing campaigns  70% do not use an enterprise data warehouse (EDW) to track customer interactions with the firm and with marketing campaigns  71% do not use an EDW and analytics to guide marketing campaign selection  80% do not use an integrated data source to guide automated event-driven marketing  82% never track and monitor marketing campaigns and assets using automated software such as marketing resource management (MRM)
  45. 45. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The goal of this course is to give you transparent metrics, tools, examples, and a road map to actually do data- driven marketing and apply marketing metrics in your organization
  46. 46. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The Metrics And Why They Are Important To Marketers
  47. 47. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED ‘‘Half the money I spend on marketing is wasted—the problem is I don’t know which half.’’ - John Wanamaker
  48. 48. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED ‘‘Half the money I spend on marketing is wasted, but today I know which half: TV advertising.’’
  49. 49. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The Metrics That Work  Non Financial Metrics – Brand awareness – Test-drive – Churn – Customer satisfaction (CSAT) – Take rate  Financial Metrics – Profit – Net present value (NPV) – Internal rate of return (IRR) – Payback – Customer lifetime value (CLTV)
  50. 50. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The Metrics That Work  New Age Metrics (Internet Metrics) – Cost per click (CPC) – Transaction conversion rate (TCR) – Return on ad dollars spent (ROA) – Bounce rate – Word of mouth (WOM) (social media reach) We will have an in-depth discussion of Internet marketing best practices Give multiple examples of how to use the Internet to radically improve marketing performance
  51. 51. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED 2008 Porsche Turbo Cabriolet New Product Launch
  52. 52. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
  53. 53. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The Product Launch  A stamped ‘‘raw’’ metal plate was delivered to existing Turbo Cab owners to coincide with the press announcement of the new product launch  The mailing provided personalized log- in credentials and encouraged visits to the web site with: ‘‘The raw Porsche 911 Turbo Cabriolet awaits your color selection.’’  On the web site, the customers chose their favorite color and ordered a personalized Turbo Cab poster
  54. 54. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The Product Launch  The design of the campaign, integrated with the Internet web site, enabled end-to-end tracking  There were 2,700 unique log-ins with an average session time of almost 15 minutes, and 5,670 posters were ordered  Interestingly, there was also a significant WOM component, with nearly 500 send-to-a-friend invitations  The campaign overall had a 30 percent response rate, and 38 percent of Turbo Cab buyers during this period received the mailer
  55. 55. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The Product Launch  The response rate and time on site is truly amazing given the high cost of the product - $130,000  Target demographic: busy executives, lawyers, and doctors.  This example is that the direct-mail marketing was designed for measurement and was integrated with the Web, enabling the capture of customer response data and identifying potential leads
  56. 56. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Customization and marketing intelligence can have a significant and measurable performance impact for both small and large firms
  57. 57. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED DuPont Tyvek HomeWrap & NASCAR
  58. 58. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED DuPont Tyvek HomeWrap  DuPont Tyvek is a well known US brand  The product is successful because of the innovative properties of the product and the marketing strategy that DuPont used  Tyvek has a unique property that keep liquid water from passing through making it extremely durable  Tyvek is used in packaging, protective apparel, envelopes, covers, graphics and home construction  It is extremely useful in the construction industry where it is wrapped around the building frame to keep mold and mildew out while protecting homes & buildings from water damage
  59. 59. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED
  60. 60. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The Challenge  Marketing Intelligence and marketing metrics start with the principle of keeping score for all major marketing activities  This is challenging, since the advertising is designed to brand Tyvek by creating awareness for the product and an emotional attachment that your home is safe with Tyvek  In addition to the print marketing, DuPont used the sponsorship of Jeff Gordon in NASCAR.
  61. 61. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED NASCAR  NASCAR is an extremely popular sport in the United States  It’s also very interesting from the marketing perspective  It is the #1 in-person attended sporting event and the #3 most watched sport in the United States  Almost 80 million people regularly watch NASCAR  Combined with F1, auto racing is the #1 live event in the world today
  62. 62. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Jeff Gordon  DuPont also sponsors Jeff Gordon  Has won the NASCAR Championship 4 times  ESPN rates him the 8th most recognized sports figure in the United States
  63. 63. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Car Branding
  64. 64. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Activation Campaign  Campaign included painting Jeff Gordon’s car with a Tyvek “TV panel” on the back for a race in Kansas & TV advertising blanketed the Kansas area during the race to build customer awareness  Primary focus of the campaign was on three groups: – Retailers – Builders – Specialists in Construction
  65. 65. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLEDHTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The Poster Sent to Distributors
  66. 66. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The Offer  The offer was for an ‘‘ultimate race weekend’’ luxury box for the race and opportunity to actually meet Jeff Gordon  Awards went to – top 24 retailers across the country who sold the most DuPont products – top 24 builders who bought the most DuPont products – top 24 specialists who signed up the most new and existing retailers
  67. 67. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The Results  438 retailers signed on – 202 new and 236 existing – 186% sales increase during the promotional period
  68. 68. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The Weakness of the Measurement A weakness of the marketing measurement was that the impact of the brand and awareness component of the marketing was not captured particularly well Tyvek logo that is visible on all new construction that uses the Home Wrap product The following was posted on the www.NASCAR.com blog:
  69. 69. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED My favorite NASCAR memory includes our favorite driver, Jeff Gordon, and my son, Logan. When Logan was two, we would drive by new housing developments and he would tell us which houses were Jeff Gordon’s.
  70. 70. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED We didn’t put it together for a couple of months, but every time we would walk by or drive by a new housing development Jeff Gordon almost always had a house there.
  71. 71. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Finally, we realized our two-year-old was matching the DuPont Logo from Jeff Gordon’s racecar with the DuPont House Wrap logo (Tyvek) on the new homes. Kudos to DuPont for its brand.
  72. 72. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The takeaway is that the Tyvek Home Wrap campaign primary objectives were designed to be measured; DuPont marketing was keeping score, and the pre-post change in number of pallets shipped justified future marketing investments.
  73. 73. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The Difference Between Leaders & Followers
  74. 74. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED If you ask CMOs how they spend their budget, you most often hear the percentage spent on TV, print, Internet, direct mail, telemarketing, and so on.
  75. 75. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED But this breakdown is not particularly useful, since it does not tell us what these organizations actually do with their money.
  76. 76. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED What is the intended outcome of the marketing?
  77. 77. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED We want to know what marketing investments are actually intended to do or achieve?
  78. 78. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED We define 5 buckets of funding based on achieving different goals and objectives – such as demand generation, branding/awareness, customer relationships, shaping markets and infrastructure.
  79. 79. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLEDHTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The 5 Buckets in Detail  Demand Generation – marketing activities to drive revenues in a relatively short time period after the campaign – Sales, coupons and events  Branding & Awareness – marketing activities drive awareness and can include sponsorships, naming rights to events or properties, and advertising specifically for awareness, not promoting an upcoming sale  Customer Relationships – marketing focuses on creating a personal link to the customer that drives loyalty and engagement – Thank you notes after purchase and loyalty programs such as concierge shopping services
  80. 80. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLEDHTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The 5 Buckets in Detail  Shaping Markets – activities designed to make the market more receptive to your products or services, through 3rd party recommendations – Analyst relationships for B2B firms and social media blogging to influence perception  Infrastructure – investments into technology and training to support the marketing team – Enterprise Data Warehousing (EDW), analytics and marketing resource management software to support marketing intelligence functions
  81. 81. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLEDHTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED How Do Marketers Allocate Budget?
  82. 82. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLEDHTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The Difference – Leaders & Followers
  83. 83. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLEDHTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The Difference – Leaders & Followers
  84. 84. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLEDHTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED What Do We Know?  The Marketing Divide Is Real!  There is a Significant Difference Between Leaders & Followers  Leaders spend less on demand generation marketing and more on branding, customer relationships, and infrastructure to support marketing intelligence  Leaders have processes in place to optimize marketing management – it’s not done ad hoc  Leaders have significantly better sales growth and financial performance compared with the followers  And no surprise, key marketing processes of leaders include metrics to keep score and marketing intelligence
  85. 85. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Using Metrics to Deal With Hard Economic Times
  86. 86. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED When the economy gets tough, senior management’s reaction is to aggressively cut costs – but they use a hatchet instead of a scalpel – causing significant impact on both short and long-term performance
  87. 87. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Marketing may seem like an easy cost- cutting target due to the difficulty with which its returns are quantified – but when you understand the link between investment into marketing and performance during and following a recession.
  88. 88. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED In a study covering 16 different industries from 1980 – 1985, results showed that firms that maintained or raised their advertising expenditures during the 1981 – 1982 recession averaged significantly higher sales growth during the recession and the three years after.
  89. 89. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED By 1985, sales of companies that took an aggressive advertising approach during the recession had risen by 256% over those who lowered or failed to maintain their advertising spending
  90. 90. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED In the 2001 technology industry recession, Intel invested $2 billion in new chip manufacturing facilities and aggressively marketed new dual-core technology in order to grab market share from competitor AMD
  91. 91. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED In 2008, three years into a recession in construction, Johnson Controls rolled out a new ad campaign continuing its ‘‘Ingenuity Welcome’’ effort. The campaign, which included significant print and online advertising, demonstrates Johnson Controls’ efforts to build energy-efficient environments for customers.
  92. 92. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The First Step – Defining the Marketing Intelligence Strategy
  93. 93. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLEDHTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The Framework
  94. 94. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Know Yourself – Figure out which data are important using the 80/20 rule: ask what is the 20 percent of data that will give 80 percent of the value?
  95. 95. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Know Your Customers – Fine-grained segmentation, which then leads ultimately to customer targeting and data-driven marketing activities.
  96. 96. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The Closing
  97. 97. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED In 1974, bar code scanners were introduced in retail, and for the first time this enabled the tracking of individual consumer product purchases at the point of sale
  98. 98. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED This technological innovation spawned ‘‘marketing science,’’ the idea that marketers could quantify marketing using analytic principles
  99. 99. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Today, the Internet and cell phone networks are enabling the next leap in data collection of customer interactions with marketing
  100. 100. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED Now is the best and most exciting time to be in marketing
  101. 101. HTTP://EMAGINE-GROUP.COM BRAND FOCUSED, SOCIALLY ACTIVE, DIGITALLY ENABLED The new data-driven approaches and infrastructure to collect customer data are truly changing the marketing game, and there is incredible opportunity for those who can act upon the new insights the data provides

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