marketeers challenges, role and trends 2010
TRANSCRIPT
Marketing in a post-crisis world
Consumer Goods marketers’role, trends and challenges
June 2009
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© The House of Marketing www.thom.eu June 2009Not for publication without prior written consent
Marketers must balance and manage various pressures
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Marketers’ role
from 2010
Marketers’ role
from 2010
Consumer engagement and experience
Consumer engagement and experience
Deliver customer valueDeliver customer value
Differentiate and promote through retailers
Differentiate and promote through retailers
Develop innovative and sustainable offerings
Develop innovative and sustainable offerings
Leverage all information and analysis
Leverage all information and analysis
Demonstrate performance and impact
Demonstrate performance and impact
1. Consumers keep evolving and engaging
2. Online integration, marketing analytics and customer value on the marketer’s agenda
3. Marketers need to be measurable, innovative and sustainable
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© The House of Marketing www.thom.eu June 2009Not for publication without prior written consent 3
Agenda
1. Consumers keep evolving and engaging
2. Online integration, marketing analytics and customer value on the marketer’s agenda
3. Marketers need to be measurable, innovative and sustainable
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© The House of Marketing www.thom.eu June 2009Not for publication without prior written consent
The Brand Called You 2.0 Tom Peters, 2009“It’s all about being an interesting and desirable brand to other individuals. To peers. To friends of friends.”
Consumers are getting even more personal, disloyal and sophisticated
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Source: Trendwatching.com
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© The House of Marketing www.thom.eu June 2009Not for publication without prior written consent
Companies need to highlight the added value of their products/services moreCustomers become far more price sensitive and postpone purchases due to the economic crisis
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% of respondents
How do you expect your customers to react to the economic crisis?How do you expect your customers to react to the economic crisis?
N= 720Source: The House of Marketing; Yearly Marketing Survey 2009
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© The House of Marketing www.thom.eu June 2009Not for publication without prior written consent 6
Agenda
1. Consumers keep evolving and engaging
2. Online integration, marketing analytics and customer value on the marketer’s agenda
3. Marketers need to be measurable, innovative and sustainable
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© The House of Marketing www.thom.eu June 2009Not for publication without prior written consent
Marketers are aware of the need to improve customer experience, intelligence and “be green”
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In survey 2008
Legend:
New to the survey
How do you expect the following buzzwords to evolve in terms of importance for the coming year?
How do you expect the following buzzwords to evolve in terms of importance for the coming year?
% of respondents who expect an increase
Note: decrease or remain stable represent the remaining percentages
B2B C’ies only(N=246)
B2B C’ies only(N=246)
B2C C’ies only(N=98)
B2C C’ies only(N=98)
% of respondents who expect an increase
Source: The House of Marketing; Yearly Marketing Survey 2009
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Position of challenges among answers
Evolution of challenges’ importance, perceived by marketersEvolution of challenges’ importance, perceived by marketers
N= 598
Branding and customer loyalty remain solid top-of-mind challenge for marketersInnovation & ROMI see strong decline compared to 2008
Source: The House of Marketing; Yearly Marketing Survey 2009
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© The House of Marketing www.thom.eu June 2009Not for publication without prior written consent
54% of marketers in consumer goods expect further budget reviews
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This goes against the need to protect/grow existing revenue base by increasing marketing expenditures
Source: The House of Marketing; Yearly Marketing Survey 2009
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© The House of Marketing www.thom.eu June 2009Not for publication without prior written consent
Direct marketing
Email marketing
Traditional TV
Overall media budget
# of companies planning to use the selected medium more
Evolution of share in total media budget of the selected medium
ConclusionMore
buyers, less
spend per buyer
Large increase
TV market
not heavily down
The 2009 media mix has clear winners and losers
POS
Print(Press/ Mag.)
Event marketing
Probable ex-aequo
Serious cut
Serious cut
Sponsoring
Serious cut
Source: UBA/Profacts February 2009 Survey, combined with Stichting Marketing/THoM 2009 YMS Survey
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© The House of Marketing www.thom.eu June 2009Not for publication without prior written consent
Belgian media mix becomes more traditional and measurable due to crisis
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Source: The House of Marketing; Yearly Marketing Survey 2009
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© The House of Marketing www.thom.eu June 2009Not for publication without prior written consent
Crisis reinforces success of interactive marketing…
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Traditional Marketing
“Modern marketing isa two-way conversation that
utilizes traditional, digital andsocial mediums to connect with
existing and potential members.”Currency Marketing
“There is a trend from traditional media toward online marketing
activities that allow for customer behavior tracking and concrete
metrics.”Aberdeen Research
… but stimulates a more balanced approach, where traditional supports interactive
Interactive Marketing
Su
pports
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© The House of Marketing www.thom.eu June 2009Not for publication without prior written consent
Mastering certain metrics tends to be key to be confident in outperforming competition
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% of respondents using the hard metric defined on the left
Which of the following hard metrics do you use to track your marketing performance?Which of the following hard metrics do you use to track your marketing performance?
Respondents claiming a better performance in 2009 versus competition
Legend:
Respondent claiming a worse performance in 2009 versus competitionN= 665
Source: The House of Marketing; Yearly Marketing Survey 2009
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© The House of Marketing www.thom.eu June 2009Not for publication without prior written consent
Too few marketers are mastering analytics and customer intelligence
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1 out of 5 marketers do not use the full combination of metrics available to them
Marketers rely on information in reports, instead of looking at the raw data
Source: The House of Marketing; Yearly Marketing Survey 2009
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© The House of Marketing www.thom.eu June 2009Not for publication without prior written consent
Analytical deployment is mostly depending on organizational context and prioritization
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What is the main obstacle for analytical deployment? What is the main obstacle for analytical deployment?
% of respondents
N= 497Source: The House of Marketing; Yearly Marketing Survey 2009
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© The House of Marketing www.thom.eu June 2009Not for publication without prior written consent
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Agenda
1. Consumers keep evolving and engaging
2. Online integration, marketing analytics and customer value on the marketer’s agenda
3. Marketers need to be measurable, innovative and sustainable
– Draft –
© The House of Marketing www.thom.eu June 2009Not for publication without prior written consent
Marketers are struggling to adopt a long term sustainable business model
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Buzzwords hint at a sustainable business model
Buzzwords hint at a sustainable business model
The marketer is being challenged financially, ROMI-
wise
The marketer is being challenged financially, ROMI-
wise
Budget reductions make
marketers rethink their media mix
Budget reductions make
marketers rethink their media mix
The marketer is less confident
about the future
The marketer is less confident
about the future
Many marketers are fighting the crisis
with lower budgets (and prices)
Many marketers are fighting the crisis
with lower budgets (and prices)
Companies must highlight the added-
value of their offerings more to customers
Companies must highlight the added-
value of their offerings more to customers
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© The House of Marketing www.thom.eu June 2009Not for publication without prior written consent
Sustainably position marketing as key value adding department in the long term
Be genuine, be authentic…
Be genuine, be authentic…
Differentiation based on green arguments will only prove effective for who adopted this in their Corporate identity, Business model AND Culture
This becomes even more important as your company becomes more transparent to customers by choice or not
No proof, no budget
No proof, no budget
Today, the size of the marketing budget is among the first items to be challenged by management
Marketing budgets will not restore to their pre-crisis levels without marketers building up a rock-solid argumentation:
Pragmatic performance management tools allowing to track, manage, benchmark & predict financial return
Increase focus on the main concern of the boardroom: sustainable profitability requires evolving from a top-line to bottom-line focused marketing and investment in people
Invest in analytical skills
Invest in analytical skills
Analytical skills are paramount to making complex fact based decisions and generate relevant insights from available data
Marketing departments with a clear ambition to outperform competition should
Invest in developing analytical skills to a level allowing them to extract maximal value from internal data
Base their decisions on the qualitative and quantitative insights provided from the above analysis
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© The House of Marketing www.thom.eu June 2009Not for publication without prior written consent
Sustainability at a glance: From inside to outside
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Note: a company can be considered as socially responsible only if it acts within the three pillars.
Today’s situation• Businesses have accepted sustainability
as a mainstream concern but struggle to integrate it at strategic level
• Implementation of sustainability is increasingly consumer and MKT driven
• Sustainability is still often only a PR tool• Challenges according to senior
executives: • leadership, • supply chains, • metrics and reporting, • the transformation of values into processes
Critical Success Factors• Sustainability policies and practices
should be driven by corporate values and be integrated meaningfully into strategy and performance management
• Sustainability should be fully embedded in all levels of the organization
• Involvement of all stakeholders internal and external
• Credibility through partnerships with NGO’s or independent organizations
• From customer perspective, value generation while avoiding price premium and differentiation from competition
Sustainability has to be understood in the context of a specific industry, not as a set of principles per se. Depending on value drivers,
sustainability needs to be integrated at strategic and/or operational level.
– Draft –
© The House of Marketing www.thom.eu June 2009Not for publication without prior written consent
Marketers must balance and manage various pressures
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Marketers’ role
from 2010
Marketers’ role
from 2010
Consumer engagement and experience
Consumer engagement and experience
Deliver customer valueDeliver customer value
Differentiate and promote through retailers
Differentiate and promote through retailers
Develop innovative and sustainable offerings
Develop innovative and sustainable offerings
Leverage all information and analysis
Leverage all information and analysis
Demonstrate performance and impact
Demonstrate performance and impact
What is Marketing’s USP?