CMO Exchange - CMOs as Change Management Operators panel - January 27 2013
l.27.l3! CMOs asChange Management Operators
As a CMO, are youexperiencing big CHANGES in yourleadership role?
managed in single-‐most What is the survey says: led change signiﬁcant Marke4ng-‐ what was * 2012 and that you the o... What was the most significant Marketing led change that you managed in 2012 & what were the results? Implemented Marketing automation system with Salesforce.com Re-org’ed Marketing to align with other Division’s & Company goals Sales marketing tools to differentiate Sales team - increased revenue Integrated Marketing strategy with new products, communications, digital Implemented financially-driven alignment process with Product & Sales - increased attributable opportunities to Marketing … at lower cost Increased globalization – Marketing Centres of Expertise - improved employee engagement, leveraging of best practices, customer experience Deployed performance based marketing measures & use of data for actionable decision making*CMO survey led by Kimberly A. Whitler, Indiana University Kelley School of Business PhD candidate & serial CMO
digitally engaging with your consumers like this.
‘It’s Time To Raise the CMO Bar’ Chief Marketing & Sales Officer Forum Editor & reader pick Editor ‘Must Read’12 Most Popular Posts of 2012 Q1 2012 www.cmo.com/articles/2012/1/24/its-time-to-raise-the-cmo-bar.html
‘It’s Time To Raise the CMO BarTipping point to develop NEW & IMPROVED roles for CMOs,Marketing & Agency partners to remain relevant, valued, connected& focused on the highest value creation strategic opportunities. Shift from traditional CMO role & deliverablesto CGAR5 - Commercial Growth Accelerator Relationships (‘people’ engagement) Reputation (authentic, transparent, trust) Relevant reimaging (compelling value prop, grow brand) Revenue & results (metrics that matter, MROI) Real-time (responsive, agile)
What has shifted?push > pull > powered = >potential
What has shifted?push > pull > powered = >potential >potential for people & brands
driving brand value pre-digitalpush prospect 1-way A dv Tec hbrand customer /
driving brand value pre-digital push prospect 1-way A dv Tec h brand customer / 2016 2009 2010 20112008 2013 2014 2012 2015 powered potential people brand
Communication landscape has shiftedfrom 1-way brand building at you to building brands with constituents.
Consumer’s behavior has shiftedto a hyper socially engaged, multi-screen, mobile lifestyle. Super Bowl 2013 online & offline party
Consumer’s path to purchase has radically shiftedto a non-linear, merged online-offline multi-screen journey.
We are beyond trends.! HAPPENED!Fundamental sustained strategic shifts have happened that will continueto accelerate people power… and change their behaviors and expectations…powering potential for brand’s to deliver increased value. trend shift • general direction in which • to exchange or substitute one something is developing or thing for another changing or has a tendency to • to move or transfer from one move, or a popular taste at a place or position to another given time • to change position, direction, place, or form
And experts forecast that these shifts will accelerate.“This cycle of tech disruption is materially faster and broader than prior cycles.No industry or business is immune. We will see the re-imagination of nearlyeverything… powered by new devices, connectivity, UI, and beauty.” Mary Meeker, General Partner at Kleiner, Perkins, Caufield, & Byers
Digital is no longer asubset of the averagepersons life. Its just a partof everyday living thatsexpected and moreaccessible than ever.Marketers need toembrace how people(consumers) engagedigitally and integrate theircommunicationsaccordingly.
Digital Brand Marketing 2013+ Sustained Strategic Shifts_Smart User Experience Social Media Mobile FirstMulti-Screen Integration Omnichannel Big Data INNOlytics Content & Context Social TV CMO ReinventionBrand Value Reimagined Brand Trust Brand Agility www.slideshare.net/stevencook/2013-digital-brand-marketing-sustained-strategic-shifts-legolas-media-neustar-adadvisor-digital-brand-forum-11713
CMOs understand importance of these shifts … & are starting to make changes.
Marketing Mind is at a tipping pointshifting from ‘Art & Science’ to ‘Science & Art’.
Chief Marketing & ‘Prediction for 2013: “Operations” becomes " Sales Officer Forum a key word in Marketer’s vocabulary’"‘every CMO made a strong reference to the significant changes they havehad to make to their operations’‘non-stop drumbeat of mentions: “the incredibly heavy lifting it took to ___”‘‘snapping point of current organization structures, processes, & tech’‘getting tighter about designing workflows for customer engagement’‘setting up coordinating mechanisms across functions & lines of biz’‘rethinking agency mixes & what they do internally’‘standardizing on shared sets of technology tools’‘needing to add new roles’
“More than 70% of needed change either fails to belaunched, completed, or finishes over budget, late, andwith initial aspirations unmet.” John P. Kotter Harvard Business School
Topline stories about 2012-13 Change Management OperatorMarketing led initiatives that grew value-add results & grew leadership capabilities. - Improving Customer Engagement - Building Relevant Brands - Growing Revenue, Improving MROI Vince Ferraro Maribel Garcia–Rodriguez Lorena Harris Filip Wouters @VinceLFerraro Director, Global Marketing @harrilor @FilipAWouters former VP Global Excellence, Bayer VP Corporate Marketing Senior Director, Integrated Strategy & Marketing, Consumer Care Marketing, Windows Phone Corporate & Consumer Group
Change Management Operator - Improving Customer Engagement - Building Relevant Brands - Growing Revenue, Improving MROI Filip Wouters @FilipAWouters Senior Director, Integrated Marketing, Windows Phone The Launch of Windows Phone 8 –A Mobile Change Challenge
The Change Challenge: Create the Next Mobile PlaDorm
A Fully Integrated Approach to Windows Phone Best of Microso, Windows Phone 8 Killer Hardware “Windows Phone 8 makes big changes while remaining true to its core. On the whole, it is a worthy refresh, and one that gives MicrosoMs Best for Windows 8 & Surface mobile plaDorm the boost it needs to compete against Android and iOS.” Over 125,000 apps 8X HTC & Nokia Lumia 920 Store available in 50 languages and 191 markets
Crea4ng Customer Engagement Starts with a Clear Consumer Target Persona Target market
And features that can change the game. Only Windows Phone has … Live Tiles Live Apps SkyDrive Kid’s Corner
Building a brand starts with a clear brand story “The smartphone reinvented around you”
Building a brand through Integrated Marke4ng Touch Points Across Windows Phone, MicrosoM, OEM partners and mobile operators Search Dot.com OOH Retail stores PR MS stores / Online ads e-‐commerce Consumer Purchase Journey Cinema Learn and Evaluate Select and Buy Ecosystem buys (apps/accessories) RSPs Tv ads Brand Experiences Familiarize Try Purchase & Customer Use & Print Service Advocate Social Custom Product Wow demo WOM Crm Experien4al
Global marke4ng – Reinvented Meet Jessica Meet Gwen Meet Cam Meet Bilbo Glocal approach: +20 Celebrities & characters in 5 countries, 32 TV ads
Integrated marke4ng -‐ reinvented Bilbo App CollecTon InteracTve Print (STckers) CompeTTve mobile ads
And the results… -‐ Engaged customers: Dot.com, Social, CRM & Online -‐ Brand momentum: Considera4on, Percep4on & Recogni4on -‐ Growth: RSP, Experien4al, MS Stores, Demand in stores
WHAT IS INTEGRATED MARKETING? The coordinaTon and integraTon of all markeTng communicaTon tools, avenues, funcTons and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost Source: Wikepedia
WHAT IS INTEGRATED MARKETING? “A way of looking at the whole markeTng process from the view point of the consumer” Phillip Kotler, Professor of Interna9onal Marke9ng, Northwestern University
WHAT IS THE FOUNDATION FOR SUCCESS? CONSUMER Focused Thinking CONNECTIONS Among Key Ac4vi4es PLANNING as One Team
Marke4ng Integra4on = Strong Results Elevit China • Helped iden4fy in store and digital as new channels which, upon ac4va4on lead to a 77% growth and +12.9 share points. Bepanthen Russia • Helped iden4fy Maternity hospitals and digital as new channels which, upon ac4va4on lead to 35% growth vs. 15% growth for the category
“We don’t have a choice on whether we do social media, the ques4on is how well we do it” The ROI of social media is your business will exist -‐ Erik Qualman* in 5 years* Source: 2013 Social Media Revolu4on
Why is a DDP Process necessary? • Digital is s4ll new to most of us • Digital development is complex – involves mul4ple agencies and func4ons • Legal and regulatory restric4ons are vague • There a few established success models • Digital development oMen lacks strategic direc4on and/or is not fully integrated in the overall communica4on strategy
Vantiv’s Marketing MissionMarketing’s Challenge in 2011: Vantiv is a 40-year old paymentRebrand and build awareness from processing company, originally known Fifth Third Processing Solutions, the paymentscratch in time for a successful IPO processing division of Fifth Third Bank. A decision was made to separate and re-Marketing Challenge for 2012-13: brand in June of 2011. The new companyRedefine the Marketing function as a subsequently IPO’d in March 2012 with achange agent, revenue center, and market cap of $3B.partner to the Sales process.…Or, put another way…Work Miracles 57
Change Management Through Content MarketingVantiv’s thought leadership / content The Vantiv Insight Series Researchmarketing program is designed to: In January 2012 Vantiv and Mercator• Improve brand awareness, Advisory Group teamed up to• Position the company as an industry conduct primary research on thought leader, payment trends in the U.S. We asked• Generate qualified leads via multi-channel 1200 consumers details both about digital campaigns, and how they currently make payments and how they expect to do so in the• Provide the Sales force with high-quality future. The research was just content for client conversations. refreshed in January 2013. The Vantiv Insight Series is based on this data, and provides educational campaigns and tools to help merchants and financial institutions identify areas of opportunity in payments. All this information is available at Vantiv.com/research, with registration required so that Vantiv can follow up to nurture prospects and funnel leads to Sales.
Vantiv’s Thought Leadership Program http://vantiv.com/researchSomething to Talk About2012 Program CampaignsJan Security & Fraud ProtectionApril Top 10 Trends for 2012July The Case for PrepaidSept Payments Go MobileNov Executive Thinking on Payments 20122013 Program CampaignsMarch Top 10 Trends for 2013June Payments in the Omni-Channel Customer ExperienceSept In Pursuit of Mobile PaymentsNov Executive Thinking on Payments 2013Viewers who come to Vantiv.com for the ThoughtLeadership content represent over 66% of newvisitors, spend 4X longer than the average viewer,and view over 11 pages per visit (versus 4.5 pages).In 2012, the program touched more than 12kopportunities and helped generate more than $22M. 59
Thought Leadership Program Toolkit Organic Experts as Paid Search Spokespeople White #4 SEM Papers Editorials/ #2 External Endorsements Advertorials #1 Primary Key ValidaTon & Referrals Micro-‐site Referral Research Themes Program Co-‐PublicaTon Key Findings Quarterly & Co-‐MarkeTng Campaigns #3 Web Industry Views Live News Downloads Releases PresentaTons #12 Collateral #13 Sales Tools #11 Sales Recorded Media Training Webcasts Brieﬁngs #5 PR & Core Media Presence Media Query Scripted PPTs Business Responses Issue Scripted #14 eNL’s & Interviews #15 eBooks Client Sales Presos Blogs Seminars #10 Sales Industry #6 Speaking Prospect Deep-‐Dive PresentaTons Presos Engagements Workshops Short Decks Podcasts Industry Filler Slides External Conferences Experts Video Webinars Sharing #8 Themed Client #9 Social Media Videos Interviews Trade Social #7 Events Shows Networking Event Montages Community Blog Events Content
Change Management Via Integrated Channel MixIn late 2012 Marketing began leading revenue acceleration campaigns whichapply a full set of digital inbound marketing programs -- integrated withtraditional outbound channels -- to deliver leads with a 3X higher close rate thanany other lead source. Nurtured by Qualiﬁed by Prospect Mktg thru MarkeTng Inside Sales Sales Closed by Serviced by or Client Lead Opportunity Sales Rel Mgmt Marketo team Accelerated Revenue Cycle (ARC) Fast-track Lead Gen Program• Kick-off: Identify revenue goals, target markets, primary channels, timing, success metrics, etc. • Inbound Marketing (B2B) – web content, advertising (print, online), paid search, SEO, webinars, blogs, videos, social media, events, PR, etc. • Outbound Marketing (B2B) – Direct mail, email mktg, event invites, telemarketing, sales tools, etc.• Assessments: Frequent, then regular evaluation of metrics and adjustment of tactics to ensure leads are flowing within 2-3 months.
Demonstrating the Value A marketing touch does not equal a sale, but it’s valuable to show Leadership how and when Marketing contributed – and which tools are most effective in soliciting the desired responses from prospects and clients.Circle size represents program cost. Thereforeat this time print SEO and web search have thelowest cost, highest success, and best ROI.Conversely, print advertising is the mostexpensive, least successful and has lowest ROI. 62
Change Management Via Marketing Automation Critical Tool: Implementation of a marketing Marketing Maturity Journey automation system (like Marketo) for lead generation and nurturing, email marketing, *% Revenue Target Achieved analytics, reporting, and interoperability with salesforce.com. *100% *80% + Improve business results through continuous analysis and optimization of *72% + Embrace multi-channel sales and marketing *60% program delivery resources + Enable business users to + Lead scoring and nurturing create content, manage+ Leverage automated campaigns and events + Alignment between sales email or direct mail and marketing communications to + CRM Integration stay in touch with + Integration to 3rd party customers + Lead scoring practices system Chart information from Marketo Traditional Demand Integrated Revenue Performance Marketing Generation Marketing Management 63
Change Management Priorities for 2013 s d he Sale Fill T With Integra te Sales Bran & Mark rove nessImp are Funnel pects eting Aw Ne w Pros Efforts Improve Help Mktg Mix Culti Sales Effectiveness vate Relat Clien Demonstrate ionsh t Value ips Be a Change Management Agent Going Forward
Change Management Operator - Improving Customer Engagement - Building Relevant Brands - Growing Revenue, Improving MROI Vince Ferraro @VinceLFerraro former VP Global Strategy & Marketing, Corporate & Consumer Group Change Management -The Decline and the Phoenix of a Venerable Brand
EK Facts At A Glance • 1892 -‐ Founded in 1892 by George Eastman • 1900 -‐ Introduced Brownie camera for $1 • 1901-‐1930s executed marke4ng like Coca-‐Cola, Ford, and P&G • 1974 – Developed ﬁlm used on the moon • 1975 – Developed ﬁrst digital camera • 2004 – Last ﬁlm camera sold • 2012 – Kodak ﬁles for Chapter 11 protec4on • 2012 – Announces businesses to be sold or shut down • 2013 – Kodak plans and is likely to reemerge from chapter 11 later this year. Sells IP and license brand
The Marke4ng Transforma4on Agenda Three Ques4ons Old and Rusty Brand New and Shiny Brand 1) What do we do with the Kodak brand? 2) How does marke4ng posi4on Itself as a change agent? 3) What needs to be done immediately?
What Do We Do With The Kodak Brand? SituaTon: • Kodak’s brand lost over $10B in equity between 1999 and 2007. • Brand had strong awareness but lacked energized diﬀeren4a4on and relevance. • Consumer brand posi4on with a go forward B2B set of businesses. • IP PorDolio externally valued at $1-‐2B in late 2011. • At the 4me around the Chapter 11 ﬁling, the market cap of Kodak hit $145M. AcTons and Results: • IP sold for $525M to a consor4um. • Selling or shut down all of the consumer businesses (cameras, printers, photoﬁnishing). • Refocus brand on remaining B2B businesses. • Licensed B2C brand to consumer photography company.
How Does Marke4ng Posi4on Itself As A Change Agent? SituaTon: • Marke4ng had to take charge of the communica4ons, especially with the end user. • Cycle 4mes for strategic communica4ons went from days to hours. • Mindset shiM – From money spent and its ROI to money saved and its ROI. • Drama4c cost reduc4ons to contribute to downsizing of “RemainCo” company. AcTons and Results: • Marke4ng-‐led end user communica4ons for the company, Chapter 11, business shutdowns, including the establishment of Kodak Transforms web site. • SWAT teams established to reduce communica4on cycle 4mes. • Unwound sponsorships, saving $17M in 2012 and $77M over life of contracts. • Tough decisions in reducing cost structure and winding down func4ons and jobs that were no longer needed or aﬀordable. • Developed a no excuses Nike “Just Do It” approach. Provided air cover to team for diﬃcult decisions with collabora4on.
What Needed To Be Done Immediately? SituaTon: • Need to cut costs to manage to “new reali4es” of Chapter 11. • Ensure business conﬁdence to all stakeholders. • Mo4vate and retain employees, especially high performers in strategic posi4ons. • Move from strategic planning process to something more short term and responsive. AcTons and Results: • Drama4c reduc4ons in people costs. Transparent process of how people and job reduc4ons were going to occur. • Business con4nuity – communica4ons to strategic partners and Kodak.com • Provide buﬀer to team -‐ accessibility, authen4city, buﬀer from C-‐suite, individual recogni4on, deployment of reten4on programs, etc. • Double down on cri4cal marke4ng ac4vi4es – trade shows, events, new product launches, social media, and online.
Lessons Learned • Don’t expect a call to be a leader. Just act and do. Lead the change you want to have happen. • Know the limits of your brand. In the church of your brand, not everyone is going to want to be a member! • Know the diﬀerence and 4me for brand building and con4nuity. • Learning how to “deconstruct” marke4ng func4ons and spend is as important as “construc4ng”. • You got to know when to hold em, know when to fold em. • Marke4ng scope gets very granular – revenue, costs, intros, strategic account management …
Filip, Maribel, Lorena & Vince, Thank you for sharing your successful Change Management Operator stories! > What was your mostsignificant incremental value contribution? > What was your most significant professional growth?
What value adding CHANGES are you going to lead in your leadership role? Tell us: #CMOExchange #CMO.com