marketing3 presentation

Marketing 3: On AccountabilityAlain Thys (http://blog.futurelab.net)

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Feel free to re-use or mash-up this presentation under Creative Commons 2.0 license (non-commercial, attribution)

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Alain Thys: Jekyll or Hyde ?

As a retailer/VC/entrepreneur: Double digit ROI

As a marketer: Close to € 100,000,000 spent to date, and very little to show for it

If you think marketers have an image problem

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What People Think of MarketersDon’t shoot the messenger

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Marketers are faddish, irresponsible, … don’t think like business people … more akin to a recalcitrant child …

McKinsey & Company, CEO/CMO Survey, 2005

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The average tenure of CMOs in consumer markets is 23, 15 or 12 months.

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Too many marketers have become so specialised that they don’t think in terms of the company’s big picture.

Philip Kotler

Marketers are frivolous and difficult to approach

Australian Society of Certified Public Accountants

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Cranfield University

Withhold research Take credit for other’s work

Lack structure Are always in meetings

Work from 10 to 4 Have long lunches

Unaccountable, untouchableSeek quick promotions

ChurnCare about cars, stats and

lunchUse jargon

SlipperyExpensive

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"We can't compete on price. We also can't compete on quality, features or service.

That leaves fraud, which I'd like you to call marketing."

Dilbert’s Boss

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FUTURELAB Buy Stormhoek Wine

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If you think marketers have an image problem

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Marketers need to become more « accountable » for themselves and for the benefit of the business..

The « outsider’s » perspective

• Marketing campaigns have unsure or negative ROI• Sales promotions don’t generate sales• Consumers get irritated by advertising• Most new value propositions fail in the market• The campaign presentation never reflects consumer reality• Marketing initiatives overpromise• …• And each year they come up with a new story

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The Marketer’s BushidoFUTURELAB

Changing marketing’s bad image

The Marketer’s BushidoFUTURELAB

Insight

Respect

Integrity

Financial Acumen

Inclusion

Perspective

Passion

The Marketer’s BushidoFUTURELAB

Insight

Respect

Integrity

Financial Acumen

Inclusion

Perspective

Passion

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In spite of all “insights” and research, 95% of consumer products introductions and innovations fail to reach their ROI targets

How do you make a difference to someone who has infinite choice?

German Traditional Chains vs. Hard discountersMcKinsey & Company, Nov 2004

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60% of sensory experience of drinking espresso comes from the retail environment (and you lose it when you go home)

The Experience IS the Product

Insight Insight Insight Insight Insight

Acting on Insight in emotions, rationalisations and choice drivers at every step of the experience.

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Insight Product

« Best Practice » is Insufficient

Don’t forget to understand the “influencers”

Understand what truly drives and moves me

... and those who influence me

... at every step of the overall experience you offer

Real Insight

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The Marketer’s BushidoFUTURELAB

Insight

Respect

Integrity

Financial Acumen

Inclusion

Perspective

Passion

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RESPECT

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RESPECT ??

http://www.youtube.com/watch?v=D3qltEtl7H8

Don’t treat me like a child“one message doesn’t fit all”

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Peopledon’t fitboxes

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• 28-34• Online music, movies &

laser hair removal• Modest but dependable

disposable income

To simplify and give meaning: Humans seek patterns, even where there are none

“It’s the easy way out, and as long as we all do it, we’re fine”Romanian marketer

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Let go of mindless segmentation

Treat markets like “people”

Bring back the love

And you might get some in return

RESPECT

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The Marketer’s BushidoFUTURELAB

Insight

Respect

Integrity

Financial Acumen

Inclusion

Perspective

Passion

perception

80% of CEO’s believe of believe their brand provides a superior customer experience

8 % of their customers agree

(Bain & Company)

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We show that we value our customers by serving them well, putting their needs and interests at the center of everything we do.

(from the AOL mission statement)

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Companies break their promises every single day.Does your business keep yours?

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Breaking promises in a WoM world is suicidal

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But I’m just a marketerThat is not my department …FUTURELAB

YES IT IS …

Your brand communicates every time it touches a customer.

As a marketer you need to manage this communication.

This makes you responsible for each

“moment of truth”

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Source: DAVIS S., LONGORIA T., “Harmonising Your Touchpoints”, Brand Packaging, Jan/Feb 2003

Consider Each Moment of Truth as a Brand Expression

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In a million channel world, brands whose consumers tell the best stories, win

EXPERIENCES - EMOTIONS - STORIES

Ensure that your brand tells the truth when it makes a promise

And when a promise is mademake sure it is kept

INTEGRITY

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The Marketer’s BushidoFUTURELAB

Insight

Respect

Integrity

Financial Acumen

Inclusion

Perspective

Passion

A Reminder from Tom

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http://www.youtube.com/watch?v=9MaKHxsGZ-A

Show Me the Money

Marketers say“Our advertising generates the branding and strong creative we need to differentiate ourselves in the marketplace.”

The CEO/CFO wants to hear…“Our analysis shows us that our € 3 million advertising campaign generated an incremental € 22.3 million in revenue.

We can continue to generate ROI up to a € 4.5 million ad spend, generating an additional € 10.6 million in incremental revenue, at which point broad media advertising becomes saturated for our market.”

Source: CFO vs. CMO Smackdown, PMD Professional, 2005

MEASURE & PREDICT

Case: Indian Tea company, Greek Telco.

A Structural Answer: Multivariate and Agent Based Modeling

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AGENT BASED MODELING

Case: US Packaged Consumer Goods Company

Preference Purchase Repurchase Loyalty Advocacy

Pragmatism: Focus your money where it matters

IMPACT

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14Average Media Consumption by Week (Europe), 2005

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Resist Orthodoxy

• Booking TV = higher margin• Standard rate-cards are less work• Digital avoidance is easier on the brain• Agency co-operation is inconvenient

Establish structural measures to assess the financial impact of our marketing initiatives, in terms the

business can appreciate.

Meanwhile, at least allocate your funds where they generate most

impact for the business.

In short, show me the money

FINANCIAL ACUMEN

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The Marketer’s BushidoFUTURELAB

Insight

Respect

Integrity

Financial Acumen

Inclusion

Perspective

Passion

90% of businesses are unable to execute the strategy they have on paper

70% of businesses project performance they will never attain

Houston, we have a problem

Source: Axon, L. Learning to lead: How Companies Grow Profits by Growing Leaders, Sept 22,2004Source: Norton, D. Aligning your Strategy to the Customer Value Proposition, 13/9/2005

Source: Norton, D. Aligning your Strategy to the Customer Value Proposition, 13/9/2005

Only 5% of the workforce understands what the strategy is

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THE MOMENT OF TRUTH

Your brand communicates every time it touches a customer.

As a marketer you need to manage this communication.

This makes you responsible for each

“moment of truth”

YET THEY ARE THE “MOMENT OF TRUTH”

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What will you do to make it “clear”

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Do people “get” your strategy ?

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INCLUSION

Make sure that everyone who needs to deliver the promise you

make to the market

• Understands this promise• Knows what it means to

him/her• Supports this direction• Acts upon it

The Marketer’s BushidoFUTURELAB

Insight

Respect

Integrity

Financial Acumen

Inclusion

Perspective

Passion

Dreaming of a better future …where there is more to business than making money.

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DREAM ON … SHOW ME THE MONEY

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Be responsible AND make money

2008

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Consumer Demand

Market Opportunity

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PERSPECTIVE

Do good for the world and for your business

The Marketer’s BushidoFUTURELAB

Insight

Respect

Integrity

Financial Acumen

Inclusion

Perspective

Passion

Be the First PenguinFUTURELAB

that resists threaths & temptation

The Marketer’s BushidoFUTURELAB

Insight

Respect

Integrity

Financial Acumen

Inclusion

Perspective

Passion

The Alternative

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http://blog.futurelab.net