New trends have moved marketing the cusp of a new golden age. To deliver on the promise, marketing needs to execute on the 5S approach: science, simplicity, substance, speed, and story. This presentation walks through what marketers and business leaders need to get right to execute all of them. This presentation is based on a public webinar given by McKinsey partners Jonathan Gordon and Jesko Perrey. Find out more from our Marketing and Sales practice: http://www.mckinsey.com/client_service/marketing_and_sales

1. Any use of this material without specific permission of McKinsey & Company is strictly prohibited
McKinsey Insights & Publications webinar | February 20, 2015
Five keys to unlocking growth
in marketing’s “golden age”

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New trends shaping marketing today
Consumer
power
Explosion
of digital
Fragmentation
Always on Personalization
Data, data,
data!
1
0
0
1
1
0
Personalization

3. McKinsey & Company | 2@McKinsey @McK_MktgSales #McKGrowth
This is the dawn of
a new golden age
of marketing
McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 2

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Science
StorySpeed
Simplicity Substance
The 5 S’ of the new golden age

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“The beauty of marketing today is
that we can really show the return.
The data allows us to demonstrate
impact in a much more transparent
way than in the past.”
Lorraine Twohill, Senior VP for Global
Marketing, Google
Science

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Science
Better decisions to
increase impact
$200 billion opportunity

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Science: Better decisions to increase impact
Avg. profit
for promoted
products up
288%
Retail company

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Science: Better decisions to increase impact
International industry player
100,000
price points reset
500 SKUs
1.3 million transactions
Analyticalrendering

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Science: Better decisions to increase impact
vs.
Art Science
Wrong debate

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Science: Better decisions to increase impact
Art Science
Wrong answer

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Art Science Craft
Science: Better decisions to increase impact

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Substance
“Look what [luxury brands] are
doing: they’re building flagship
stores that are beautiful, where
you actually like to just browse
around before you buy. Those
are emotional places.”
Ola Källenius, Board of Management
of Daimler AG

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Substance
Moving beyond
messaging to shape
the substance of
business

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Differentiation
Substance: Shaping substance of business
Products Services Experiences

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Substance: Shaping substance of business
Energy company
Customer
onboarding
7 steps
2 steps

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Story
“It’s not [all data]! … If you fall
down on the art, if you fail on the
messaging and storytelling, all
that those tools will get you are a
lot of bad impressions.”
Lorraine Twohill, Senior VP for Global
Marketing, Google

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Story: Better storytelling for emotional connection
What makes a good
story hasn’t changed.
HOW to tell one has.

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Old story telling BRAND
New story telling BRAND
Story: Better storytelling for emotional connection

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Speed
“Speed comes from decentrali-
zation and creating a local
autonomy to take local action.”
CMO, Consumer goods company

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Speed
A culture of urgency
has placed emphasis
on speed and agility

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Speed: A culture of urgency to keep up with consumers
From To
Batch processing
Command and control
Manual
Slow development
Continuous delivery
Agile
Automated
Real-time test & learn

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Simplicity
“The growing complexity is
unmanageable: in-house vs.
external partners, established
channels vs. new channels. We
need help to get through this jungle.”
CMO, Consumer goods company

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Simplicity: Simplify to execute
Speed and agility
require relentlessly focusing
on simple

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Complexity kills
Expanding
geographic
footprints
Product and
channel
proliferation
Digital and
technology
specializations
Hierarchies,
silos, gaps,
redundancies
Simplicity: Simplify to execute

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Complex: Disparate HQs and teams
Simplified: Single team
mapped to customer
ourney
Consistent brand experience
Simplicity: Simplify to execute
Daimler
Customer
journey
Before
After

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The most important questions to ask
Speed
Faster than our competitors or slower?
Simplicity
Simplifying processes or overwhelming with new things?
Story
Making connections or speaking into space?
Substance
Differentiated experience or “me-too” selling?
Science
Today’s insights or yesterday’s facts?

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www.youtube.com/McKinseyCMSOForum
@McK_MktgSales
McKinseyonMarketingandSales.com
@JeskoPerrey
Jesko Perrey
Senior Partner and
Global Knowledge
Leader of McKinsey's
Marketing & Sales
Practice
Jonathan Gordon
Leader of McKinsey's
Marketing & Brand
Strategy Practice
McKinsey on Marketing & Sales
@JWGordon
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