This document summarizes presentations from the 2007 Annual ISBM Members' Meeting on the topics of organization, process, and leadership in business-to-business marketing. The keynote speaker, Mohan Sawhney from Northwestern University, presented a new framework for B2B marketing that focuses on goals, process architecture, structure, and metrics. He discussed organizing marketing across three horizons and measuring performance using a balanced scorecard. Rebecca Williams from LORD Corporation discussed how their company restructured around functional roles, value streams, and processes to better serve customers. Peter Krieg outlined six steps for marketing and sales to work better together, including developing segmented offerings and building them through cross-functional teams.
Strategic Marketing Management Influence on Making E-Commerce Promotions.pptx
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ISBM 2007 Annual Meeting Highlights B2B Marketing
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2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
The 24th Annual ISBM Membersâ Meeting summary
Organization, Process,
LeadershipâKeys to Profitable
Growth in Business Markets
August 22 - 23, 2007
State College, PA
Presentations summarized:
⢠Mohan Sawhney, Kellogg School of ManagementâNorthwestern University, âB-to-B
Marketing: Frontiers in Organization, Process and Performance Measurement.â
⢠Rebecca Williams, LORD Corporation, âFunction, Process and Value Streams Working
Togetherâ
⢠Peter Krieg, Copernicus Marketing Consulting, â Marketing and Sales: Developing
Powerful Strategies Togetherâ
(list continued)
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Presentations (continued):
⢠Sean Kharche, Delta CompaniesâGreif, Inc., âCommercial Excellence at Greifâ
⢠Joanne Smith, DuPont, âDuPontâs Marketing Transformation Journeyâ
⢠Open Forum Panel: B-to-B Marketing Organization, Process and Leadership,
Participating presenters: Steve Erickson, Bernie Jaworski, Sean Kharche, Peter Krieg,
Joanne Smith
⢠Michael Palmer, Assn. of National Advertisers, âMarketing Unleashed: Rejuvenate the
Power of Marketing to Reach Your Business Goals.â
⢠Steve Erickson, Parker Hannifin Corp., âBuilding a World Class Marketing Function at
Parkerâ
⢠Andy Maguire, Sherwin-Williams Chemical Coatings., âPositioning Marketing for Growthâ
⢠Bernie Jaworski, Monitor Executive Development, âTransforming the Marketing Organizationâ
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B-to-B Marketing:
Frontiers in Organization, Process
and Performance Measurement
Mohan Sawhney
McCormick Tribune Professor of Technology
Director, Center for Research in Technology & Innovation
Chairman, Technology Industry Management Program
Northwestern University
mohans@kellogg.northwestern.edu
Key insights from Mohan Sawhney
Keynote Address:
Co-author of, most recently:
Unbounded Creativity: Harnessing the Power of Network-Centric Innovation (forthcoming).
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A new framework for the job of marketing: goals, process architecture, structure & metrics
⢠Marketing has a very circumscribed role in most B2B companies, an unclear role seen only as promotion,
without a seat at the strategy table.
⢠Marketing lacks accountability and is considered an expense that does not directly drive top line growth.
⢠Instead, my core thesis about the future of B2B marketing, a work in progress, hopefully the right direction.
⢠Marketing operates on three horizons to produce different outcomes
⢠Marketing activities should be seen as adaptive processes for creating, delivering and sharing value
⢠Marketing performance should be measured on a portfolio of metrics
⢠Marketing organizations should be aligned with the three horizons to clarify roles and responsibilities
The Three Horizons of Marketing
Marketing has a unique opportunity to not only drive revenue, but to also take the corporate asset and
thought leadership roles.
Graphics Š 2007, Mohan Sawhney
Key insights from Mohan Sawhney
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Horizon 3, shaping markets, is rare and unique to technology and business marketers.
⢠Inventing the future, not just predicting it. Marketing ahead of markets.
⢠âProtomarketingâ acts on an idealistic vision of an emerging opportunity arena aimed at establishing the
sponsor firm as a thought leader in the minds of ecosystem stakeholders.
⢠Getting customers to write their RFPs based on your vision.
⢠You make a bet on the future. It is classic options thinking, not for the faint of heart.
⢠Examples: IBM and the âon-demandâ business; Boeing and âNetwork-Centric Warfareâ; Salesforce.com
and âSoftware as a Serviceâ
The Process Architecture for Marketing
.
Graphic Š 2007, Mohan Sawhney
⢠Marketing is an organizational function
and a set of adaptive processes by
which organizations collaborate with
customers and partners to create,
deliver and share value.
⢠Think âsense and respond,â
âcollaborationâ and âpartners.â
Key insights from Mohan Sawhney
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Three Buckets of the Customer-Focused Marketing Organization
⢠These roles are getting more sharply defined at
companies.
⢠Redundancies appear among SBUs; e.g. each
has a segmentation model.
⢠Underutilized corporate marketing can undertake
more tasks.
⢠Success relies on enterprise-wide data
management and analytics, ensuring that the
whole organization knows the big picture
Graphic Š 2007, Mohan Sawhney
Take the âStrategic Customer Unitâ (SCU) approach.
⢠An end-to-end view seeking new ways to serve customers. (Not just bundling products.)
⢠Benefits of the SCU approach
⢠Greater leverage internally and externally
⢠Larger addressable market
⢠Improved solutions focus
⢠Improved relevance to customers
⢠New routes to market
⢠New cross-SBU opportunities
Key insights from Mohan Sawhney
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⢠Making SCU organizations work
⢠Clear understanding of cross-SBU market synergies
⢠Clear business strategy for additional value creation beyond product bundling
⢠Strong links to operations, SBUs and shared services units
⢠Sufficient resources in sales, marketing, and application development focused on solutions
⢠Compensation linked to SCU results
⢠Executive management support and clear accountability
⢠Prevent tendency to migrate back to products
⢠Use of memo accounting as a start
⢠Redefinition of customer and position in value chain
⢠Challenges transforming to a market-facing organization
⢠Solid data for customer segmentation and value proposition development
⢠Balancing asset and product-related performance goals with SCU goals
⢠Integrating multiple routes to market for different product lines
⢠Reskilling the sales organization to think solutions
⢠Financial accounting and transfer pricing
⢠Lack of common IT systems and shared infrastructure
The Balanced Scorecard for Marketing
⢠According to Kelloggâs Marketing Performance Measurement Survey of Fortune 1000-firm top marketers,
few organizations have optimized Marketing Performance Management
⢠53% do not use forecasts of campaign ROI, Customer-Life Time 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
Key insights from Mohan Sawhney
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⢠Few organizations use advanced tools to manage marketing
⢠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 Enterprise Data Warehouse (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
Existing Marketing Investment Portfolio
What should be the percentages?
Contingent factors for marketing portfolio allocation
⢠Dominant culture and mindset
⢠Strategic corporate positioning and intent
⢠Market and brand power of the company
⢠Stage of product life cycle
⢠Pace of technological innovation
⢠Level of product/brand differentiation
⢠Size of customer base
⢠Nature of customers (enterprise vs. consumer)
⢠Channel structure (direct vs. indirect)
⢠Complexity of products and buying process
⢠Breadth of product portfolio
Graphic Š 2007, Mohan Sawhney
Key insights from Mohan Sawhney
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Marketing spend by MPM score
⢠High-score leaders achieving expected market shares:
⢠Shaping markets: 8%
⢠Building brands and company assets: 32%
⢠Generating revenue: 45%
⢠Building infrastructure and capabilities: 15%
⢠Average-score leaders :
⢠Shaping markets: 11%
⢠Building brands and company assets: 28%
⢠Generating revenue:48%
⢠Building infrastructure and capabilities: 13%
A proposed Balanced Scorecard for Marketing Performance
Leaders spend more on capability and
asset development and less on demand
generation.
⢠Low-score leaders :
⢠Shaping markets: 13%
⢠Building brands and company assets: 24%
⢠Generating revenue: 54%
⢠Building infrastructure and capabilities: 9%
GraphicŠ2007,MohanSawhney
Key insights from Mohan Sawhney
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Function, Process and Value
Streams Working Together
Rebecca Williams
Director, Marketing and Customer Services
LORD Corporation
becky.williams@lord.com
Key insights from Rebecca Williams
Member Case:
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LORD, an 80-year-old private, technology-led company.
⢠Moving from a technology orientation to a market orientation, applying unique expertise in chemical/material
sciences and mechanical dynamics to develop and market innovative adhesive & coating and motion
management products.
⢠Challenges:
⢠Sophisticated and knowledgeable buyers
⢠Complex, multi-functional, and multi-lingual buying teams
⢠Complex, multi-functional, and multi-lingual selling teams
⢠High level of visibility and risk for both organizations
⢠Intense competition due to high stakes
⢠âPower of Buyerâ usually is high
⢠Decentralized organization prior to 2004: ~ $700 million sales, about 2,000 employees, five autonomous
business units; 29 discreet market segments; separate infrastructures (ERP, HR, Finance, etc.); minimal
sharing of common processes or ways-of-working.
Reshaping the organization: three enterprise views for marketing employees
⢠Process Role: What workflow, tools, and rules apply to me ?
⢠Value Stream Role: How do I impact key financial metrics?
⌠Function Role: What competencies do I need to do my job?
Hierarchical organization: organizing value streams by product lines
Graphic Š 2007 Rebecca Williams
Marketing and Customer
Services supports all product
groups
Key insights from Rebecca Williams
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Defining competencies
⢠Big project over the last year: a start at developing functional excellence
⢠Weâre defining competencies for every employee in the company, so each understands what is expected
from a functional viewpoint, at each level of competency: âawareness, â âbasic,â âskillful,â âmasterâ and âexpert.â
Key insights from Rebecca Williams
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⢠Matrix relates an employeeâs business
performance to competencies.
⢠Provides a common basis of evaluation
across the company.
⢠Training activities for each competency
are available on the Web.
⢠âMarketing Excellence Teamsâ of sales
and marketing directors meet monthly to
establish competencies, identify gaps and needed training,
set process policies, and approve âProcess Improvement
Teamâ initiatives..
Graphics Š 2007 Rebecca Williams
The process view for customer engagement, order fulfillment and product life cycle mgmt.
deployed at four levels of commonality.
Key insights from Rebecca Williams
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Examples:
Graphics Š 2007 Rebecca Williams
Key insights from Rebecca Williams
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Lessons learned becoming technology driven and market led:
⢠You canât fix everything at onceâprioritize. Most resource problems are really priority problems.
⢠A matrix organization requires clear enterprise-level priorities, encouraging lateral moves, and senior
management teamwork.
⢠Itâs clear to employees that they must contribute to the organization to grow their careers. Functional
expertise alone is not enough.
⢠Communication throughout the company is critical.
Results:
⢠Sales and profits up
⢠Employees more willing for cross-functional assignments
⢠Cross-selling success stories
⢠Process focus and adherence
Challenges ahead:
⢠Global Integration
⢠need a separate organization for focus
⢠makes common process more difficult
⢠Process Maintenance
⢠assign sub-process owners
⢠audit to metrics
⢠Resolving conflicts among Functional vs Process vs Value Stream roles
⢠performance management system helping set competencies and priorities
⢠appropriate goals set
⢠Market Expansion
⢠working to improve market strategy competencies
⢠need to work more on ideation processes
Key insights from Rebecca Williams
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Marketing and Sales:
Developing Powerful Strategies
Together
Peter Krieg
President & COO
Copernicus Marketing Consulting
peter.krieg@copernicusmarketing.com
Key insights from Peter Krieg
Thought Leader Insight:
Co-author of, most recently:
Your Gut is Still Not Smarter Than Your Head: How Disciplined, Fact-based Marketing Can Drive
Extraordinary Growth and Profits, (Wiley, 2007).
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Six steps, marketingâs responsibility, to get marketing and sales working better together
⢠In theory, sales and marketing should work
together to achieve success. In practice, however,
most sales and marketing groups feud like the
Hatfields and McCoys.
⢠âThe biggest problem in business today is that
sales and marketing are in separate fiefdoms.
They donât even talk to each other.â
â Benson Shapiro, Harvard Business School
⢠Keeping sales and marketing apart wastes
resources âŚ
⢠Marketing buys media/collateral that isnât used.
⢠Marketing makes products/services that arenât
appealing or are over-engineered.
⢠⌠and hobbles profits
⢠Sales spends too much time with low ROI
accounts, too little time with high ROI
⢠Sales sells everything based on price/negotiation
Step 1: Marketing gets in touch with field/sales
⢠Take a field trip.
⢠You cannot understand what sales people experience unless you do.
Graphic Š 2007, Peter Krieg
Key insights from Peter Krieg
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Step 2: Develop profit-directed, and actionable, segmentation
⢠Probably the most difficult and important step, yet the weakest part of most marketing plans.
⢠If you get the targeting strategy wrong, everything else will be wrong.
⢠Your need âpredictorâ variables based on customer characteristics that predict profit and are actionable.
⢠Example: An industrial lubricants manufacturer marketing through distributors found that among 200+
variables, the two most important were 2 yearsâ sales growth (a surrogate for price insensitivity) and number of
employees at location (a surrogate for oil use volume).
⢠Actionability requirements (and capabilities) can vary widely:
⢠Telecommunications company âMust be D&B variables with, at most, 3 questions that need to be
answered... And anybody at account could answer reliablyâ
⢠Financial services: âMust be totally based on D&B dataâ
⢠Industrial gases: âWe will retain a third party company to call every account and prospect and ask
them 10 questionsâ
⢠Construction products: âOur salesmen will be used to classify accounts/prospectsâ
Step 3: Develop segmented offerings/strategy
⢠Develop an inspired list of 35-45 attributes and benefits
⢠Tangible/rational ones, such as âRelatively inexpensive,â âOffers full range of services,â âHas excellent,
24/7 call center,â etc.
⢠Intangible/emotional ones, such as âSupplier which senior management knows and likes,â
âEasy to do business with,â âUsed by the largest/most successful companies,â etc.
⢠Measure customer reaction to each âattribute/benefitâ in three ways:
⢠How motivating is it?
⢠How credible for your company/brand?
⢠How unique... Are competitors perceived to offer?
⢠Analyze in terms of a Brand Strategy MatrixTM. It takes all three criteria to have a winning strategy: Do we
have it, could we be perceived to have it, and does the enemy have it already?
Key insights from Peter Krieg
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⢠Create Cross-Functional Teamâ
that includes representative from
Salesâto develop new offerings
Graphics Š 2007, Peter Krieg
Key insights from Peter Krieg
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Step 4: Build business case for the new strategy
⢠Use a decision calculus using expected profit margins, sales conversion rates, etc.
⢠Use empirical evidence based on a simulated and/or actual test market.
⢠Simulated Test MarketTM
⢠Using survey research, test the âconceptâ of the new offering(s) with sample of 50-100
customers/prospects
⢠âWhat ifâ questions
⢠Apply models to translate survey response into estimates of sales
⢠Actual test market
⢠Select one market or distributor or sales team
⢠Actually visit 25-50 accounts and make new âofferââfor real
⢠True sales response is measured
⢠Operations ironed-out
⢠Sales group believes
⢠Caution! Proceed with care as you examine salespeople compensation plans
⢠Their existing compensation plans may be at odds with your new strategy
⢠Sales person motivation: âShow me the moneyâ
Step 5: Launch internal marketing
⢠Develop aids, collateral, etc., use training workshops, stage a launch to create lots of enthusiasm. Get
the CEO involved, or bring in outsiders for the big floor show.
⢠Portray the segments in a video/DVD â or other medium-- and âintroduceâ them to the organization,
particularly to sales.
⢠Make sure to share key statistics about the segments, including the sales and profit
potential of the target segment(s). Show whatâs behind the strategy, bring it alive.
⢠Example: For a marketer of alcoholic beverages, where the users of the study were the salespeople calling on
bars/restaurants, we brought the segments âaliveâ by portraying them as different âspeciesâ and describing
them like National Geographic would. And, using data base information, we identified at which accounts
(and on which occasions) the segments would be found.
Key insights from Peter Krieg
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Step 6: Monitor performance
⢠Collect hard data and anecdotal evidence.
⢠Share tracking data with salespeople.
⢠Example: An industrial gas supplier facing commoditization and increased price competition aimed a gas
management partnership strategy at key heavy-user segments, running a pilot test that found customers
increasingly perceiving the company as a partner selling professional services. The business became the
most profitable one within its parent company.
Q & A:
The best thing you can do to work with a distributor is to tell him about the end customer.
Key insights from Peter Krieg
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Commercial Excellence at Greif
Sean Kharche
Vice President, Global Sales and Marketing
Delta CompaniesâGreif, Inc.
sean.kharche@greif.com
Key insights from Sean Kharche
Member Benchmark:
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A sleeping giant that has awakened, Greif is
⢠A leading company with 30% global packaging market share (operating in 40+ countries) with ten-year
annual growth rates averaging16% in sales and 23% in operating profit; 180% gain in market cap in last 4 years.
Commercial Excellence: a set of integrated
commercial activities/processes based on
⢠Market and customer needs analysis
⢠Targeted customers and customer segments
⢠Differentiated value propositions
⢠Tailored selling of offerings to target segments /
customers
⢠Critical capabilities and systems
⢠Focused on value captureâachieving significant
and sustainable bottom-line impact within the
Greif Business System.
âMarketing gets its seat at the table pretty
quickly when it can prove itâs delivering
significant value to the bottom line.â
Greif Business
System
1st step: A Commercial Excellence Team defines marketing & sales roles/responsibilities
⢠Staffed with managers from around the world in key areas
⢠Steering Committee
⢠Account Management
⢠Pricing
⢠Performance Management
⢠Reporting Tools
Results so far: 3-point increase in return on sales %
Key insights from Sean Kharche
GraphicŠ2007,SeanKharche
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⢠The company had needed a clear differentiation
between marketing and sales.
⢠The Commercial Excellence (ComEx)
Architecture specifies a framework for execution
and feedback.
⢠Marketing should provide âcustomer message
managementââclear account-specific talking
pointsâ
to salespeople.
⢠Pocket margin database tracks sales by cost-to-
serve and is part of sales incentive programs,
which shifted from mostly volume to largely profit-
based incentives.
Graphic Š 2007, Sean Kharche
Graphics Š 2007, Sean Kharche
(PM$ = âpocket margin,â revenue less actual cost to serve
⢠Salespeople receive âpocket margin calculatorsâ to assist account
mangers to price products for a customer taking into account
the actual cost to serve that customer.
⢠Sales force training required behavioral change, away
from the volume and hand-holding mindset. More than
40% sales force reduction as many accounts moved
to channel or inside-sales handling.
⢠âMarket-back Transformationâ educates the organization
about market needs, value propositions, segmentation,
etc. for sustainable bottom-line impact through
mindset and behavior shifts.
Key insights from Sean Kharche
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Education tools and workshops for national account managers with a new sales paradigm
⢠Target setting tool sets pocket margin targets at the account and product level to help drive account plan focus.
⢠Account plan template allows gathering facts in structured way and captures main ideas of account plan.
⢠Pricing policies and process that KAM and company adhere to when pricing customers. This is the process
that Greif follows in pricing both existing and new business.
⢠Pocket margin calculator enables KAM to assess pocket margin of multiple forward-looking scenarios or
combinations of service and products, and also assess impact of cost to serve elements.
⢠Value selling framework allows KAM to structure thinking and facts to justify a high price or a price increase
based on value delivered and any customer-specific constraints.
⢠Negotiation template that enables sales reps to structure negotiation strategy so they can achieve
the best possible results.
A training tool example creates structure
Graphic Š 2007, Sean Kharche
Next Steps In Commercial Excellence
Global Commercial Skills Team to develop next
growth horizon
⢠Standardize Processes Globally
â Account Planning
â Performance Management
â Transactional Pricing Management
⢠Next Horizon To Achieve 2009 Goals is
Strategic Pricing At The Product and Market /
Industry Level
⢠Market segmentation
⢠Customer economic value analysis
⢠Quantified value selling
⢠Growth
⢠Core markets
⢠Adjacencies
Key insights from Sean Kharche
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Organization, Process, Leadership ...
DuPontâs Marketing
Transformation Journey
Joanne Smith
Corporate Director, Marketing Effectiveness
DuPont Corporate Marketing & Sales
joanne.m.smith@usa.dupont.com
Key insights from Joanne Smith
Member case:
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DuPontâs Marketing Effectiveness Journey, begun in early 2004, has earned substantial
results that have established credibility and the right to continue the journey.
⢠At the start, we had to influence the companyâs 5 autonomous growth platforms
⢠No marketing function and few formal roles; fading margins inspired the right people to press for change
⢠Sales or business leaders did the marketing âon the side.â
⢠Weak to non-existent planning
⢠Virtually no useful data, tools, systems and processes
⢠Product-centric
⢠Predominately self-trained chemical engineers
⢠Little or reactive market and competitive research
⢠Transformation stages
Year 1: Creating demand for transformation
⢠Current State Assessment
⢠Corporate Funding
⢠Marketing Platform Leaders
⢠M&S Summit
⢠Price focused for early wins ($70MM benefits)
Filling demand
⢠Marketing Group VP Named---Diane Gulyas
⢠External Consultants for businesses funded corporately
⢠Internal Consultants
⢠Transactional Price Focus for short-term early wins.
(see next slide)
⢠Hire New MBAâs (Marketing Leadership
Development Programâsee next slide)
Key insights from Joanne Smith
GraphicŠ2007,JoanneSmith
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Year 2: Creating demand for transformation
⢠Corporate Funding
⢠Marketing Leaders Network: grooming future marketers
⢠M&S Summit
⢠CRM Standard Selected
⢠Price Focused for Continued wins ($370MM benefits)
⢠Price Metrics
Filling demand
⢠Expand Impact
â˘Projects in all Businesses & Regions
â˘Expand Consultants globally
⢠Pricing Focus Expanded..
⢠Needs Based Segmentation
⢠Value Pricing
⢠Sustainable Pricing Analytics
⢠Sales Incentive redesign pilots (most
salespeople are salaried)
⢠Corporate Price Announcement
⢠Salesforce.com Projects (CRM systems)
⢠Internal consulting unit takes a more aggressive
marketing assistance role.
Key insights from Joanne Smith
Graphics Š 2007, Joanne Smith
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Year 3: Creating demand for transformation
⢠Continued Corporate Funding
⢠Customer Satisfaction One DuPont COT
⢠Encourage Dedicated Marketing leaders
⢠Encouraged creation of Price Managers
⢠Roadmap with Businesses
⢠$0.5B from Projects
Filling demand
⢠Formalized corporate marketing & sales function
⢠Split Marketing & Sales Directors
⢠Expanded Project focus into:
⢠Strategic Pricing
⢠Channel Redesign
⢠Market Driven Innovation
⢠Began Training:
⢠Marketing Bootcamp
⢠Innovation Process Champion training
⢠Pricing in Downturn Seminars
⢠Net Promoter Score standardized process expanded toward corporate-wide deployment
⢠Revised go-to-market strategy replaced a 30+ year-old approach with heavier concentration on the 8%
of accounts providing 90% of revenue, using inside sales and channels for small customers.
⢠Improved innovation market assessment process to bring marketing in earlier, launch products more
aggressively.
⢠Pricing projects contribute $1.2 billion to overall $2.8 billion in price increases sustained 2004-mid 2007.
(Starting the transformation with pricing successes won early attention for marketing.)
Key insights from Joanne Smith
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Marketing transformation successes
⢠Results
⢠>$2.8Billion in Price Increases
⢠>$100Millon in Go-to-Market benefits
⢠Competency
⢠Pricing Managers established in 1/3 of businesses
⢠Dedicated, High level Market Leaders in 1/2 the
businesses
⢠>100 New Marketing Hires
⢠Distributor Managers emerging in several businesses
⢠Over 200 trained in Marketing Bootcamp
⢠Processes & Systems
⢠Advanced profitability analytics established in 1/3 of
businesses
⢠Inside Sales Teams established in 1/3 of businesses
⢠Doubling of eBusiness Transactions
⢠Corporate M&S Function made permanent
⢠CRM System in use 1/5 of businesses
⢠Net Promoter Score Survey Piloted
⢠Sales Compensation in 1/3 of Businesses
Whatâs next? Year 4: Creating demand
⢠Form Marketing Advisory Council, people with a passion
⢠Marketing Organization Assessment
⢠Recommend Transformation Plan
⢠Encourage Dedicated Marketing leaders
⢠Target $0.3B in new benefits
⢠We have many opportunities to take this much, much further.
Filling demand
⢠Begin to Act like a Function
⢠Talent Management
⢠In-depth targeted training vs. generic bootcamp
⢠New Product Launch Focus
⢠Sophisticated Pricing Processes
and System
Key learnings
⢠Establish Early WinsâŚ..often
⢠Pricing is an excellent place to start for early
wins and build credibility
⢠Go where the energy is; we started working
â˘with the businesses interested in change
⢠Use external consultants to stimulate your
thinking; new thinking ca jump start change
⢠Build competency in house and supplement
with external hires
⢠Focus your efforts, for maximum leverage,
on the biggest gaps facing multiple businesses
⢠Keep a scorecard of financial benefits
⢠Q/A: In the long run, itâs a good thing when
competitors also adopt value pricing. It raises
the value harvested across the value chain
Key insights from Joanne Smith
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2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
Open Forum Panel:
B-to-B Marketing Organization,
Process and Leadership*
Participating presenters:
Steve Erickson
Bernie Jaworski
Sean Kharche
Peter Krieg
Joanne Smith
Rebecca Williams
Open Forum Panel Discussion
* discussion highlights
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2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
Q: How should a company start a marketing transformation?
⢠Jaworski: We heard a lot today about short-term wins as a way to get started, but I would argue that
standardizing the market planning process and vocabulary is the starting point of the journey.
⢠Smith: You have to show marketing successes before you earn the right to change the organization.
⢠Williams: If marketing doesnât already have a seat at the table and a well-established role in the organization,
starting with planning might be too abstract. You have to start with something more concrete, like segmentation.
⢠Jaworski: My concern is that the short-term win will be seen as a sales win, not marketing. You have to do
both, planning and performance.
⢠Erickson: At Parker, pricing came first, but it wasnât really directly related with marketing. So we started
with standard processes such as innovation. We were able to drive change from there.
⢠Kharche: Start with segmentation and execution, to earn the right to grow the program.
Q: Can marketing ROI be measured and related to shareholder value?
⢠Krieg: Of course you can, but itâs not as easy as in consumer product marketing. You can isolate effects in B-to-
B. âIâd rather be vaguely right, and get started in measuring ROI, than be precisely wrong and say it canât be done.â
⢠Jaworski: Too many variables affect shareholder value to be able to link marketing to it. Itâs better for a company
to âthink smallâ to measure specific effects over specific points in time, to show the impact of marketing investment
above and beyond the sales force, competitive reaction and other data. Linking marketing to shareholder value
is incredibly difficult, and I, personally, have not seen it done well.
⢠Krieg: Perception affects stock price, the perception of added value in a brand. If you donât believe marketing
can influence that, you shouldnât be in marketing.
⢠Jaworski: Itâs easy to pick possibly spurious correlations. The more interesting question is what are the other
factors also influencing stockholder value.
â˘Audience member: Whenever we try to attribute data to marketing, someone claims that operations or sales did
it. Fact is, marketing doesnât achieve by itself, but by working with the entire organization. Recognizing that and
talking in other functionsâ terms builds marketing's credibility in the organization
Open Forum Panel Discussion
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2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
Q: How do we get started with marketing metrics?
⢠Williams: Itâs okay to start with key account data.
⢠Ralph Oliva, ISBM Executive Director: Engineers know that you can measure anything; all you need is the
money. The real question is how much itâs worth to measure these things.
Q: Should marketing data be centralized corporately or decentralized among businesses?
⢠Audience poll: Most in audience agree that marketing data should be centralized in the organization.
⢠Smith: Data are much more effective when analyzed corporately.
⢠Erickson: We started organizing data corporately with access to all so we could fully leverage it. We also
centralized new market research to eliminate duplication.
Q: With barely enough money to support the sales force, how to add a marketing budget?
⢠Williams: Prioritize what you do to get those early wins that justify asking for more money.
⢠Erickson: We approached it by doing initial programs that worked, then seeking budgets for more programs.
⢠Panel consensus: Quick wins justify more budget requests.
Q: How do you âbackcast,â envisioning the future and then working backward?
⢠Erickson: At Parker, all managers are taught to walk into the future and ask, âWhat does good look like?â
Then you look back to see how youâll get there. At Parker, we had some internal and external best practices
to study, to begin with the right ends in mind.
Q: What have you done that you might have done differently?
⢠Kharche: We pushed variable sales compensation far too quickly to one quadrant. It had a negative effect.
⢠Smith: We struggled the most with segmentation. Weâve had strong analyses, but we havenât been able to
fully turn it over to salespeople so they can act on it day-to-day. We put too much effort into theory and the
conjoint, etc. and then walked away without hand-holding to help them really use it.
⢠Krieg: A client invested $220 million in advertising and sports sponsorship, but hadnât wanted to measure the
sales effect. Thatâs not uncommon. You should do your own math, not the agencyâs, and face the music.
Open Forum Panel Discussion
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Š 2007, ISBM - Penn State
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2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
⢠Jaworski: Mistakes include people who donât want to make choices, choose segments, or prioritize steps
in the marketing plan. Importantly, commit to what youâre not going to do in the marketing plan. Say, âIâm
going after segments 1, 2 and 3, but not 4, 5, and 6.â
⢠Williams: We had no central reporting on innovation programs to allow management to see the overall portfolio and
priorities. None of the users in our siloed organization bought into the centralized system.
⢠Erickson: I would like to have gotten earlier buy-in on programs. We should have spent more time with new progra
pilots rather than rushing to produce results.
Q: How many segments can a salesforce handle?
⢠Panel consensus: Start with a few then in time ask them to handle more.
⢠Krieg: Some segments are natural to salespeople's understanding, such as segments based on how people
buy. And yes, you can test segments with simulated test markets.
⢠Gary Lilien, ISBM Research Director: Implementability is important. Your research might identify, say, five
segments but you can ask the sales force to handle only three.
Q: How do you ensure that marketing gets to manage your brands?
⢠Kharche: In our mature industry (packaging), we discovered that we had a lot of brand equity. We tested and it
wasnât true that distributors had all the equity and we were just commodities. That really surprised our
management team. Now we are leveraging that.knowledge.
⢠Williams: We surveyed our internal and external brand images in order to get management support.
⢠Oliva: At Texas Instruments, we learned to game the system. No support for marketing yet âinnovationâ is
managementâs hot button? Offer them âmarketing innovationâ and back ii with data. Raid the pockets of money
that are around for high-profile things like technology and innovation.
⢠Another trick of the trade: We used âbribesâ: so-called matching funds we in marketing controlled to
encourage businesses to adopt our programs. Remember that it takes courage to jump in front of
corporate mistakes and correct them.
⢠Utilize local resources. Are you near a business school that has MBA students looking for real-world
projects they can assist, such as surveys?
Open Forum Panel Discussion
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2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
Marketing Unleashed:
Rejuvenate the Power of Marketing
to Reach Your Business Goals
Michael Palmer
Executive Vice President, Member Relations
Association of National Advertisers
mpalmer@ana.net
Key insights from Michael Palmer
Annual Members Banquet speaker:
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2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
Marketing unleashed?
⢠Wayne Gretzky: âA good hockey player plays where the puck is. A great hockey player plays where the puck
is going to be.â
⢠Marketingâs job â to play where the puck is going to be.
⢠Jeffrey Immelt: ââSophisticated marketingâ is now one of the companyâs three imperatives, along with risk-taking
and innovation. The new marketing team itself will embody all three of these qualities.â
Growth agenda: Own the Customer
⢠Philip Kotler: âProcter & Gamble is not great because of its marketing capability; it is great because of all its
functions are customer focused.â
⢠In B-to-B, GE understands how its customers need to understand their customersâ needs.
⢠Marketing needs to understand customers better than anyone else in the organization, even sales.
⢠Customer insight steps:
⢠Knowledge audit â what do we know, donât know?
â˘Create insight hungry organization
â˘Ask the right questions?
â˘Establish internal process to evaluate, activate insights
â˘Live with your customers, walk a mile in their shoes
â˘Undertake customer GAP Analysis
â˘Share/build support for insights
â˘Quantify insight opportunity
â˘Sell insight opportunity (let people discover for themselves)
Growth agenda: Count What Matters
⢠Understand the CEOâs perspective on cash flow, long-term asset growth and shareholder value.
⢠Generate insights, not data, that lead to action
⢠Select the right measures: what matters, set objectives and be objective, tell a compelling story to colleagues
in their language.
Key insights from Michael Palmer
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Š 2007, ISBM - Penn State
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2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
Growth agenda: CEO Contract
⢠Contract so marketers and top managers know what to expect from each other, and what to give in return.
⢠Step 1: Define the role of marketing: as service provider, advisor and growth driver.
⢠First step output: Why write a contract?
â˘Bring CMO - CEO working relationship to higher level of alignment and expectations understood
â˘Jointly establish goals to perform against⌠what are Marketingâs deliverables?
â˘Jointly develop and commit to guiding principles⌠what role should Marketing play?
â˘Jointly develop and implement practices serving common goals⌠how should Marketing function?
â˘Enlist CEO to actively support above
â˘Define Your Accountabilities
â˘Generate Customer Insights â translate into product/service innovations; determine how capability will be
measured, targeted, reported.
â˘Build Brand Equity â how you will measure attitudinal commitment to your brand reflecting emotional
value added by marketing creating increase customer loyalty.
â˘Upgrade Marketing Capabilities â define capability, determine how to measure strength/improvement .
â˘Agree to support needed (financial, staff, commitment)
â˘Role marketing will play in delivering corporate goals
â˘How marketing will interact with other players
â˘CEO interaction â timing, expectations, format
â˘Contract development questions
â˘What are CEOâs âŚ
â˘Business goals â top 3 priorities
â˘Expectations of/objectives for marketing
â˘Understanding of marketingâs role/goals/capabilities
â˘Vision of future state of marketing
â˘Willingness to support/commitment marketing
â˘Does Marketing ...
â˘Regularly meet with CEO â when was last meeting?
â˘Clearly understand decision making power
â˘Know what other departmentâs perception of marketing is
â˘Know what other departments expect of marketing
â˘Have clear objectives aligned with business goals
â˘Know what peers concerns about marketing
Key insights from Michael Palmer
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2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
Growth agenda: âEngageâ on One Page
⢠Because you know the customer best, marketing can foster alignment of functions in the organization around
whatâs important to the business. Promote the âBrand Touchpoint Wheelâ and concentrate on critical areas.
GraphicŠ2007,MichaelPalmer
⢠Unaligned organizations deliver 67% less than
aligned organizations
⢠Only 39% of senior leaders believe their
organizations are fully aligned
⢠Whoâs in charge of âalignmentâ and âemployee
engagementâ?
⢠To see if people are aligned, ask them to finish
the sentence: âIf the price is equal, certain
specific customers will buy our products
rather than competitive products because they
value ______________________., â:Will you get
a consistent answer across the company?
Growth agenda: New Skills
⢠Consumer Immersion Paramount
⢠Turn info into big ideas
⢠Be a Storyteller
⢠Challenge, think differently, have insatiable curiosity
⢠Embrace Technology
⢠Be Business Oriented
⢠Experiment
⢠Keep brand from being diluted
⢠Never violate consumer trust/permission
⢠Enhance customer value/experience
⢠Own need state (not customer)
⢠Reframe your sandbox
⢠Take time to think in a different fashion
⢠Inspire desire
⢠Build partnerships
Key insights from Michael Palmer
39. 39
Š 2007, ISBM - Penn State
TM
2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
Building a World Class Marketing
Function at Parker
A case in process
Steve Erickson
Vice President Strategic Marketing
Parker Hannifin Corporation
serickson@parker.com
Key insights from Steve Erickson
Member insight:
40. 40
Š 2007, ISBM - Penn State
TM
2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
Parker, the global leader in motion and control technologies, has $10.7 billion sales,
900,000 products, 57,000 employees and >400,000 customers served by 125 divisions in
8 autonomous product groups with 287 plants worldwide in around 40 countries.
⢠Since about 2000, Parker has been in a radical makeover, including improving its watered-down definition
of âmarketingâ and reforming its decentralized, manufacturing-centric and efficiency-oriented tribal culture.
⢠In 2003, a new emphasis on innovation and a stage-gate process dubbed âwinovation adopted. Bbut
âwinovateâ what? Parker had to more judiciously fill the new product funnel.
⢠In marketing, we envisioned where we want to go and then âbackcastedâ to determine how to get there. We
got the go-ahead for our mission: âimplement market-driven process to support innovative products, processes
and service.â
⢠We embraced the marketing definition of the Chartered Institute of Marketing: âMarketing is the management
process for identifying, anticipating and satisfying customer requirements profitably.â We have done well on
the tactical side, but needed attention to the strategic side of marketingâmatching capabilities to market needs
with a sound business case built on a dominant share in the broad market or in a critical niche.
Objectives: What does âgoodâ look like in a world-class marketing process?
⢠Standard work across all Groups globally
â˘Business strategy procedure
â˘Market analysis/information gathering
â˘Connecting unmet needs in the market with Parkerâs capabilities
â˘Strategically and intentionally targeting selected markets
â˘Longer term (e.g., 3~5 yrs..) and shorter term aspects
â˘Multi-Group/Division synergies realized
â˘Shared knowledge re: market efforts across all Parker
â˘Must call on/understand customers (down to Division level)
â˘Grow in niche markets with a full Parker package
⢠Market need-driven (not competitive pressure-driven)
â˘Include macro trends when formulating strategies
â˘Clarity of roles: Marketing vs. Sales vs. New Product
Commercialization
â˘Proactive and strategic (vs. reactive and tactical) => Focus
â˘Need to recognize/reward collaboration amongst
Groups/Divisions
â˘Must have necessary resources dedicated to marketing
(similar to sustaining engineering vs. new product development
engineers in Winovation)
Key insights from Steve Erickson
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Š 2007, ISBM - Penn State
TM
2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
The process should ...
⢠Fulfill the Win Strategy goal of profitable top line growth
⢠Define arenas of strategic focus
⢠Strategically align Divisions, Groups and Company
⢠Become the knowledge base to support new product development
The process will be ...
â˘An âoutside-inâ focus
⢠A âbottoms-upâ approach
⢠Led by General Managers and their cross
functional teams
⢠Rolled up to the Group
⢠Reviewed by Group Sales & Marketing
VPs to identify common growth opportunities
for the Company
⢠Prioritizing the elements of a world-class
marketing organization as defined by the
Marketing Leadership Council
(see adjacent graphic).:
Graphic adapted from Marketing Leadership Council by Steve Erick
Developing the process
⢠A core team did the day-to-day work (see Team Structure on next slide)
⢠One person from each operating group gathered best practices, becoming co-inventors and evangelists for
marketing in each of their groups.
⢠The process is one thing. The politics of making it happen is another. Tthe Steering Committee provided clout.
⢠We got the okay to build the blueprint in March of last year; after pilots and a limited rollout, we began the
year-long launch this July 1st.
Key insights from Steve Erickson
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2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
Results
⢠Our model, the âParker Business
Development Process,â includes
âWinmapâ (strategy), âWinvalueâ
(value selling) and âWinovationâ
(new product commercialization)
stage-gated processes, including
regular diagnostics, for marketing new
and existing products.
⢠We bring all key players together in
workshops around the globe to force
action on lists of opportunities.
⢠All business intelligence accessed via
an intranet Marketing Resource Center.
⢠âWinsightâ newsletter maps marketing
data for the sales force.
Q: Donât your three stage-gate processes slow things down?
A: A sense of urgency and time-line requirements for each gate sustain movement.
Key insights from Steve Erickson
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Š 2007, ISBM - Penn State
TM
2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
Positioning Marketing for Growth
Andy Maguire
Vice President Marketing
Sherwin-Williams Chemical Coatings
andy.maguire@sherwin.com
Key insights from Andy Maguire
Member work in progress:
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TM
2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
Sherwin-Williams is a company at a transition point in marketing
⢠We have a CEO with a marketing background, making our job in marketing much easier. We donât have
to make that first sell about âwhy marketing.â Marketing, much of it consumer, is already a focus in the company.
⢠Chemical coatings is a real B-to-B.world. I am six months in a job to lead the transformation.
⢠S-W: >$8 billion sales, >30,000 employees, widely praised as a great performer and great place to work.
⢠Among three corporate groups (Stores, Consumer, Global), Chemical/Industrial Coatings is part of Global
⢠Factory applied product finishesâa $13 billion global market, excluding automotive and aerospace
⢠Our competitive advantage. Distribution facilities, sales and service; product technology; brands (Weâre
stepping up our industrial branding activity because we havenât done enough with brands in the market).
⢠We have two âcustomers:â internally, the sales force as well as our business customers. We are very
customer-centric in eight strategic focus markets in residential, commercial, equipment, electronics and
military fields.
Our current state of marketing
⢠45 People
⢠Focus-Market Director for each market, supervising Business Development Managers & Reps
⢠Various backgrounds---Marketing / Sales / Technicalâwhich need to learn a common marketing language.
⢠Majority of people are âSuper-Salesâ people---focused on tactical initiatives. Thatâs important, but positioning for
growth through strategy is critical to us.
⢠Current marketing activities:
⢠Marketing Plan Development
⢠Opportunity Account Identification
⢠Sales Support
⢠Competitive Analysis
⢠Close-In Product Development, a function of sales. Marketing shouldnât be involved in this tactical activity.
⢠It will be marketingâs responsibility to drive breakthrough product development, to get us the growth we need.
Key insights from Andy Maguire
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2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
Promoting around the company
⢠Ben Shapiroâs definition of marketing (HBRI 2003): âMarketing isâŚthe firmâs orientation toward its marketplace.
This is at the very heart of what good companies focus onâŚ.Marketing in this sense is owned by the total top
management team, and particularly by the chief executive officer.â
⢠The role of marketing: âInterpret market trends and customer needs, drive the development of new products
& services for our customers, grow existing focus market business, support sales in execution, and
communicate simply and powerfully.â
⢠We keep talking to our CEO and CFO about the value of marketing to the company and what weâre doing.
⢠Working with a new VP of sales, marketing works more closely with sales, a partnership to review field issues,
new product development, opportunity accounts, etc.that shows we support and help the sales force.
The future state of marketing
⢠Add a new long-term mission: A primary focus on strategic new product development, teamed up with
R&D directors. Conceptually, weâre partners with sales people and with technical people.to get everyone in synch.
⢠Weâre not adding or cutting people; company personnel cutbacks havenât included marketing.
⢠We maintain our mix of backgrounds on the marketing staff (most promotions are from within).
⢠Desired marketing activitiesâmuch of it is new to marketing people:
⢠Marketing Plans / Operating Plan
⢠Focus Market Analysis
⢠New Product Champion (cannot let technical people control new product development, which must be
on a first-to-market schedule). âThis isnât personal, is about winning!â
⢠New Product Blueprinting; ethnographic research-based innovation
⢠New Product Pricing: no longer a sales function, marketing controls pricing and positioning.
⢠New Product Naming: now with a better focus on brand strategies.
⢠Product Line Management : We hadnât done it, building efficiencies for the company.
⢠Value Chain Analysis: We hadnât studied it. (We had been thinking we competed in âpaintsâ rather than
in the broader âfinishesâ category.
⢠Competitive Analysis. Weâve added war gaming.
⢠Sales Process/Support
⢠Advertising& Communications Plan
Key insights from Andy Maguire
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2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
Marketing performance goals
⢠Sales, Profit & ROS Targets---Corporate & Focus Market. If gross margins slip, marketing works on it.
⢠New Product DevelopmentâActual New Product Launch
⢠Opportunity Account Development---$$ and share goal.
Current initiatives
⢠New Product Blueprinting. Advanced Industrial Marketing, an Ohio firm, brought us the process in 2005.
⢠Cross functional technical and marketing teams comprehensively review focus-market opportunities,
needs (ethnographic customer interviews), competition, and candidate product technfeasibility and
business casesâthen the NPD stage-gate process begins.
⢠Salespeople provide customer lists but do not participate in this process. Salespeople not able to ask
open-ended questions because they are used to telling people about products, not listening.
⢠Itâs a cultural and individual capabilities challenge to the organization.
⢠150+ interviews done so far led to many new product ideas and three major product developments, and
approved investment funding for two new platforms. Marketing and technical joint ownership of projects
is a powerful factor vs. technical handing a project off to marketing.
⢠Sales Toolbox: Provide every sales rep with focus-market facts, news, product information, competitive
product information via an easy to access, easy to navigate online tool.
⢠Needed because sales forces are generalists
⢠Sales force equipped with laptops
⢠Need for in-depth marketing information by focus market
⢠Need current source for up to date product and technology information.
⢠Need for downloadable sales literature and marketing/sales presentations.
⢠New Website: update 5 year-old site with updated multilingual content, customer focus and e-commerce links.
⢠More aggressive trade advertising and direct mail. Thinking differently about the marketplace.
⢠In 2008: a Marketing Excellence Survey, ongoing Blueprinting training, Marketing Excellence Training
Key insights from Andy Maguire
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TM
2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
Transforming the
Marketing Organization
Bernie Jaworski
Co-founder & Senior Leader, MarketspaceTM
President, Monitor Executive Development
Monitor Group
bernie_jaworski@monitor.com
Key insights from Bernie Jaworski
Wrap-up perspective:
Author of, most recently:
Best Face Forward, (Harvard Business School Publishing, 2005).
48. 48
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2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
What levers for marketing transformation have we discussed? (audience participation and
presenter perspective)
⢠You have to be the advocate in your firm for a clear and actionable definition and role of marketing.
⢠There are many ways to start a transformation. Maybe itâs early wins, maybe talent management. It depends on
a companyâs need, and as time passes, how those needs and conditions change. Revisit your roadmap for change
every six months or so.
⢠Senior level endorsement, support and action is a powerful factor. The importance of the journey cannot be
overcommunicated; it needs retelling to ensure the organization buys into the marketing journey.
⢠You have to address integration of sales and marketing in a B-to-B companyâsales people involved in the
marketing process, receiving their inputâto accelerate your transformation.
⢠Technical solutions themselves wonât drive change. Leadership for change means building acceptance in the
organization. You have to manage levers on both the supply and demand side. Most people fail on the journey
because they pull one lever big-time, then think they're finished. For instance, they think âtrainingâ is all they
need do. It can be a place to start, but you have to think systematically.
⢠Databases are a critical lever because data build credibility, especially unique customer data that competitors
do not have and which you can exploit with âevidence-based marketing.â
⢠You have to talk financial metrics, the impact of marketing. Of course, be honest, and talk of metrics in the
context of work youâve done.
⢠Weâve also talked of the importance of
⢠quick wins
⢠standard go-to-market tools and processes linking sales and marketing
⢠multi-lever systems for change driven by the voice of the customer
⢠marketing competencies and talent development, knowing which standardized processes you
want to embed.
Marketing excellence is an institutional, firm-level capability, not a personal capability.
Key insights from Bernie Jaworski
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2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
My five questions for marketing transformation
⢠What principles will guide our behavior, especially in ambiguous situations?
⢠What does marketing have to be really good at?
⢠What tools, information and data are required to make good choices?
⢠How should marketing be structured and supported?
⢠How do we build the best campaign for change?
Letâs talk about three critical factors: (1) marketing doctrine, (2) unique customer insights
and (3) the transformation campaign.
! Much as the Marine Corps Doctrine deals with basic principles of war fighting in the face of ambiguity, marketing
doctrine provides the principles for engaging the market, making more explicit shared principles and beliefs
! Is authoritative, but not rigidly prescriptive â Indicates the general rather than specific nature of a solution
! Establishes a particular way of thinking about a problem, and a philosophy for leading the organization
in action
! Formally states a point of view and establishes a common language
! Is proprietary â reflects a particular organizationâs qualifications and capabilities
! Gives guidance on how to plan and act to successfully and consistently address a specific type of problem
or opportunity.
! Example: a packaged goods company marketing doctrine
! Build brands from functional superiority out
⢠Ensure communications demonstrate functional superiority in situations consumers recognize
⢠Concentrate consumer and customer marketing expenditures on a limited number of media and high
volume / turnover customers
⢠Build customer relationships through superior breadth and category management capability
(2) Unique customer insights: youâve got to have what others donât
⢠Example: a pharmaceutical company finds doctors are 4-5 times more likely to prescribe its brand when patients
ask for a specific test not normally part of a checkup. Marketing implications: get patients to ask for a test,
doctors to order it, and the drug companyâs brand to be specified if a prescription is warranted.
Key insights from Bernie Jaworski
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Š 2007, ISBM - Penn State
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2007 Annual Membersâ Meeting
Organization, Process, Leadership ...
Transformation requires behavioral change in the internal market, and concurrently, for the market to
demand more from you.
Graphics Š 2007, Bernie Jaworski
Key takeaways on the Journey
⢠The key word is âjourneyâ â often takes 3â5 years to transform a large organization â so, be patient
⢠Reflect for a moment on how much communication this will require â and multiple this number by 10
⢠This is a story of continuous improvement, the key is to celebrate the short term wins â and make sure they
are widely disseminated
⢠The transformation campaign roadmap will change â suggest that you revisit it every six months or so . . .
Example
Key insights from Bernie Jaworski