marketing3 presentation
TRANSCRIPT
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, untouchable
Seek quick promotions
Churn
Care about cars, stats and
lunch
Use jargon
Slippery
Expensive
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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
cc 3
.0, M
ega
qw
ert
y
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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 discounters
McKinsey & 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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People
don’t fit
boxes
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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 made
make 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
0
2
4
6
8
10
12
14
Telev
isio
n
Musi
c
Gam
es
Inte
rnet
Rad
ioDVD
Boo
ks
Mag
azin
es
Average Media Consumption by Week (Europe), 2005
So
urc
e: N
iels
en
In
tera
ctive
Eu
rop
e, 2
00
5
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 22,2004
Source: 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 Penguin
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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