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Marketing is
                                   Marketing spend that drives
often thought of                   value
as a creative
rather than a                                      Werner Hess
scientific
endeavour. -We
think differently-
Marketing is a
science and
campaign
selection and
execution is all
about spending
the right money,
for the right
reasons in the
right places




              Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
Introduction
Newcomers to the sales environment may perceive the sales
We recently had the privilege in working with a very successful FMCG company. Our brief
was to ensure marketing spend optimisation. The brief included campaign selection,
messaging and deployment. This particular campaign focused on the bottom end of the
market and specifically Living Standards Measures - levels 1-5.

The lower end of the market posed some specific challenges in terms of placement and
messaging.

The company had done extensive market research to define their actual consumer profiles
for the product group and had a significant data base available on specific consumer
segments. They also asked us to review and critique the campaign plans and to give them
an untainted no holds barred feedback on all aspects of the campaign.

Interestingly, the CEO of the company led this initiative and his objective wasn’t to prove
marketing wrong, or to decry the work that they had done in the past, but simply to review
and understand whether the marketing spend was carefully aligned with brand and sales
objectives. In fact, marketing welcomed the initiative as they felt that a constructive critique
of their thought processes and execution plans would be useful in terms of improvement
endeavours. In this paper, we share some of the approaches that were taken and results
that were achieved on behalf of this client.




                                                                An impartial analysis of key
                                                                marketing initiatives can go
                                                                a long way in terms of
                                                                making your marketing
                                                                initiatives more measurable,
                                                                creating an opportunity for
                                                                continuous improvement




         Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
Goals and objectives – marketing                plan review
We found that a really simple place to start a review would be to understand what the
marketing objectives of specific marketing initiatives were and how the marketing plan was
constructed to meet the goals of objectives.

While we did find clearly spelt out goals and objectives, the goals and objectives were
defined along the lines of what the company hoped to achieve with the marketing plan,
rather than what the campaign needed to drive. A goal of “ selling more product’, or
‘improving sales’ or even ‘increasing sales in an area’, was found to be vague and we had
the feeling that goals and objectives definition was more designed to appease management
of the noble objective of driving sales, rather than achieving something very specific.

In a workshop, we revisited the goals and objectives of the campaign and were able to get
consensus that a goal that pointed to something very specific that wasn’t being achieved,
would lead to better direction for the campaign. Something along the lines of “ influencing
and converting fringe populations” or “ becoming a more attractive option to brand
switchers” or “ penetrating specific under- represented segments’ would have given the
campaign more meaning and more importantly, would have directed thinking into the
marketing plan more effectively.



Which consumers are you targeting?
As a result of the weak definition of the goals of objectives of the campaign, specific
targeting was also poorly defined. In the absence of “who am I actually talking to in this
campaign?” lead to a universal statement of value, rather than a message aimed at specific
consumers, making it attractive to them to consider the offering. The specific groups of
consumers that we refer to are in fact the target market. Who is your target market? Can
you profile consumers that make up your target market, were questions worth asking?

Here we found that the company had done some really good research in terms of defining
their consumer profiles and the research had even gone as far as to point to specific
consumer profiles, not being current customers. This research pointed to possible target
segments that would switch brands under the right conditions. This segment was in fact
quantified by the research, enabling marketing to target specific groups with sniper-like
accuracy.




         Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
A psychographic and demographic profiling exercise carried out by the research company
      very accurately defined the opportunity for gaining more consumers. We even had a very
      good view of who these potential consumers were and what their possible preferences
      were. While there were some doubts from some of the marketing team as to the accuracy
      of the profiling data, we found the data to be invaluable in terms of who potential
                       consumers were, and what they looked like. If you do at a point in time
                       embark on market research, you need to have confidence in the results,
                       despite the fact that the results won’t necessarily fall within your current
Market                 paradigms.
research is
often                 Where are the potential consumers?
essential.
                      This seems like “the million dollar’ question: If we had a fair idea of what the
The                   demographic and psychographic make –up of our potential consumers are
                      and we can correlate some life cycle and behavioural data of our target
challenge is          market, then all we need to know is where they live, in order to reach them!
to separate           It appears that the million dollar answer to the million dollar question is ; If
                      we could profile potential consumers, we need to know how many
current               consumers live a specific area, or more accurately, live within our
beliefs               geographical presence! What this means is that we should be able to tell
                      how many potential consumers live within a certain city or suburb, where
from                  through campaign activities, I‘ll be certain to reach them! Sounds
                      impossible!
market
research
                      Introducing Market Scope
findings.
                       The concept of geo-spatial marketing solutions is very well developed in the
                       USA. In fact, a geo=spatial view of a specific area forms part of the basic
      research that every fast food retailer and certainly every service station undertakes to
      determine the size and make-up of target market segments before they establish a new
      outlet. Similarly, Market Scope is an excellent tool that companies can put to use to quantify
      the number of consumers within a specific profile definition, that live in a specific city, town
      or suburb.




               Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
Market Scope is a software solution that incorporates demographic data sets within a
spatial environment (like a map) so that marketers can gain insight into the demographic
composition of a geographic area.

When we talk about “ where are the consumers” in the previous paragraph, this software
can help marketers pin point how many males with in an age group 16-25 live in Randburg.
Let’s say for argument sake the answer to the question is 120,000, Randburg would certainly
be a suburb where we would target our advertising and promotional activities, specifically
when we compare it to Marlboro, where the same demographic only represents a target
market population of 23,000.



This is where a scientific approach can help drive accuracy and return on investment.




         Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
Getting practical


Back to campaigns and marketing spend. We
analysed a proposal from a marketing services
                                                               Exposure
vendor, who correctly identified a billboard strategy
to appeal to consumers who were not customers yet.
                                                               placement
The concept was that people who were likely to                 needs to be
change, needed to be converted by some means. One
of the most effective ways of reaching consumers in            “designed.” By
the LSM 1- 5 segments, was to use billboards as a
medium. Billboards needed to be supplemented with              simply placing
an additional medium, and it was decided that
community radio could be a strong support medium               exposure where
for a largely visual outdoor campaign. We liked the
approach. However, we did not like the spend                   vendors have
proposal.

The spend proposal revolved around ”billboard
                                                               sights just isn’t
saturation” and 960 sites were selected in 2 major
cities. Needless to say, the campaign costs were
                                                               effective
heavy to say the least and we immediately
questioned the placement of billboards. What we
found was that the logic used by the vendor for
placement was entirely based on availability, rather
than exposure potential.



 Market Scope came to rescue again, as we were able to reduce the billboard placement by
50% by placing billboards in areas of high target market population saturation. What this
basically means is that we launched 4 billboards in Randburg and reduced Marlboro from 6
to 1 billboard.




         Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
Messaging
Our client supported 12 brands nationally. The challenge of exposing different brands that
were dominant in certain areas, were well met with a combination of billboards and local
community radio.

The messaging did however pose a problem of a totally different nature. How do develop a
message that attracts new customers, while at the same time keeping it relevant for existing
customers.

After leading a workshop to address this particular challenge, the concept of promoting the
intrinsic product muscles was found to be a way out .While wholesomeness and health
were specific and unique product attributes associated with the product, the relevance to
existing and new customers was universal.


Results

   •   What was significant about this project was that we were able to get the marketing
       teams to think differently and to question the logic of what companies normally
       perceive as standard procedure. All too often in our interaction with marketing and
       advertising vendors, they would refer to “everyone does it that way” as the logic
       applied to execution.


   •   The company further underwent a mindset change. While marketing teams are
       usually thought of as being the ‘creatives” in the business, it became clear very
       quickly that creative input is what you get from your advertising company.
       Marketing teams are all about making decisions around where and how they need to
       spend, and how they could possibly get a return on what’s invested.

   •   The billboard site selection exercise was exactly a case in point. Whereas the
       advertising company identified 960 sites, we used Market Scope to calculate
       deliberate target market exposure, and were able to deliver a more effective
       placement solution. Billboard sites were contained at just over 400.

   •   While savings paid for the project, the client actually got what he paid for. Insight
       processes and systems that managed to drive behavioural change within his
       marketing team. Understanding that a scientific approach can help them achieve
       their goals and objectives effectively.




         Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
About Carpedia Consulting…

Carpedia Consulting is an internationally relevant management consultancy firm, dedicated

to assisting clients to improve sales and profits through the implementation of improvement

programs. Our approach is what makes us unique. The way we design, develop and execute
our programs is hands-on, solutions-based and excellence driven.


Our programs are customized to the needs of your organisation and are designed to ensure

significant and sustainable improvements are made both internally and externally – by the
sales team, for the customer.


www.carpedia.co.za




About Werner Hess…
Werner Hess has spent 20 years of his career in various sales, marketing and leadership
positions with Bayer, Triad Electronics, GE and GE Plastics before serving as managing
director of GE Plastics and Polymerland. Werner’s first experience in the world of consulting
came about when he joined Proudfoot Consulting as Director of Business Development,
which included several international assignments in Europe and the USA, leading sales
effectiveness projects for global clients. Werner’s current company, Carpedia Consulting is
a specialist niche consultancy focused on sales and profit improvement.

Werner’s latest book, The Science of Selling has just been published and reveals
approaches, systems and processes that can be implemented to create a successful sales
platform.

Werner can be reached on: whess@carpedia.co.za




           Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
Carpedia Consulting (Pty) Ltd
PO Box 1701
GALLO Manor
2052

Building 2
Country Club Estates
Woodlands Drive
Woodmead
Sandton
South Africa

Tel: 27-11 – 258-8813
Fax: 27-11- 258-8511
Mob: 27-82-888-0228

Email: info@carpedia.co.za

www.carpedia.co.za




      Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value

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An impartial analysis of key marketing initiatives can go a long way in terms of making your marketing initiatives more measurable, creating an opportunity for continuous improvement

  • 1. Marketing is Marketing spend that drives often thought of value as a creative rather than a Werner Hess scientific endeavour. -We think differently- Marketing is a science and campaign selection and execution is all about spending the right money, for the right reasons in the right places Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
  • 2. Introduction Newcomers to the sales environment may perceive the sales We recently had the privilege in working with a very successful FMCG company. Our brief was to ensure marketing spend optimisation. The brief included campaign selection, messaging and deployment. This particular campaign focused on the bottom end of the market and specifically Living Standards Measures - levels 1-5. The lower end of the market posed some specific challenges in terms of placement and messaging. The company had done extensive market research to define their actual consumer profiles for the product group and had a significant data base available on specific consumer segments. They also asked us to review and critique the campaign plans and to give them an untainted no holds barred feedback on all aspects of the campaign. Interestingly, the CEO of the company led this initiative and his objective wasn’t to prove marketing wrong, or to decry the work that they had done in the past, but simply to review and understand whether the marketing spend was carefully aligned with brand and sales objectives. In fact, marketing welcomed the initiative as they felt that a constructive critique of their thought processes and execution plans would be useful in terms of improvement endeavours. In this paper, we share some of the approaches that were taken and results that were achieved on behalf of this client. An impartial analysis of key marketing initiatives can go a long way in terms of making your marketing initiatives more measurable, creating an opportunity for continuous improvement Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
  • 3. Goals and objectives – marketing plan review We found that a really simple place to start a review would be to understand what the marketing objectives of specific marketing initiatives were and how the marketing plan was constructed to meet the goals of objectives. While we did find clearly spelt out goals and objectives, the goals and objectives were defined along the lines of what the company hoped to achieve with the marketing plan, rather than what the campaign needed to drive. A goal of “ selling more product’, or ‘improving sales’ or even ‘increasing sales in an area’, was found to be vague and we had the feeling that goals and objectives definition was more designed to appease management of the noble objective of driving sales, rather than achieving something very specific. In a workshop, we revisited the goals and objectives of the campaign and were able to get consensus that a goal that pointed to something very specific that wasn’t being achieved, would lead to better direction for the campaign. Something along the lines of “ influencing and converting fringe populations” or “ becoming a more attractive option to brand switchers” or “ penetrating specific under- represented segments’ would have given the campaign more meaning and more importantly, would have directed thinking into the marketing plan more effectively. Which consumers are you targeting? As a result of the weak definition of the goals of objectives of the campaign, specific targeting was also poorly defined. In the absence of “who am I actually talking to in this campaign?” lead to a universal statement of value, rather than a message aimed at specific consumers, making it attractive to them to consider the offering. The specific groups of consumers that we refer to are in fact the target market. Who is your target market? Can you profile consumers that make up your target market, were questions worth asking? Here we found that the company had done some really good research in terms of defining their consumer profiles and the research had even gone as far as to point to specific consumer profiles, not being current customers. This research pointed to possible target segments that would switch brands under the right conditions. This segment was in fact quantified by the research, enabling marketing to target specific groups with sniper-like accuracy. Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
  • 4. A psychographic and demographic profiling exercise carried out by the research company very accurately defined the opportunity for gaining more consumers. We even had a very good view of who these potential consumers were and what their possible preferences were. While there were some doubts from some of the marketing team as to the accuracy of the profiling data, we found the data to be invaluable in terms of who potential consumers were, and what they looked like. If you do at a point in time embark on market research, you need to have confidence in the results, despite the fact that the results won’t necessarily fall within your current Market paradigms. research is often Where are the potential consumers? essential. This seems like “the million dollar’ question: If we had a fair idea of what the The demographic and psychographic make –up of our potential consumers are and we can correlate some life cycle and behavioural data of our target challenge is market, then all we need to know is where they live, in order to reach them! to separate It appears that the million dollar answer to the million dollar question is ; If we could profile potential consumers, we need to know how many current consumers live a specific area, or more accurately, live within our beliefs geographical presence! What this means is that we should be able to tell how many potential consumers live within a certain city or suburb, where from through campaign activities, I‘ll be certain to reach them! Sounds impossible! market research Introducing Market Scope findings. The concept of geo-spatial marketing solutions is very well developed in the USA. In fact, a geo=spatial view of a specific area forms part of the basic research that every fast food retailer and certainly every service station undertakes to determine the size and make-up of target market segments before they establish a new outlet. Similarly, Market Scope is an excellent tool that companies can put to use to quantify the number of consumers within a specific profile definition, that live in a specific city, town or suburb. Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
  • 5. Market Scope is a software solution that incorporates demographic data sets within a spatial environment (like a map) so that marketers can gain insight into the demographic composition of a geographic area. When we talk about “ where are the consumers” in the previous paragraph, this software can help marketers pin point how many males with in an age group 16-25 live in Randburg. Let’s say for argument sake the answer to the question is 120,000, Randburg would certainly be a suburb where we would target our advertising and promotional activities, specifically when we compare it to Marlboro, where the same demographic only represents a target market population of 23,000. This is where a scientific approach can help drive accuracy and return on investment. Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
  • 6. Getting practical Back to campaigns and marketing spend. We analysed a proposal from a marketing services Exposure vendor, who correctly identified a billboard strategy to appeal to consumers who were not customers yet. placement The concept was that people who were likely to needs to be change, needed to be converted by some means. One of the most effective ways of reaching consumers in “designed.” By the LSM 1- 5 segments, was to use billboards as a medium. Billboards needed to be supplemented with simply placing an additional medium, and it was decided that community radio could be a strong support medium exposure where for a largely visual outdoor campaign. We liked the approach. However, we did not like the spend vendors have proposal. The spend proposal revolved around ”billboard sights just isn’t saturation” and 960 sites were selected in 2 major cities. Needless to say, the campaign costs were effective heavy to say the least and we immediately questioned the placement of billboards. What we found was that the logic used by the vendor for placement was entirely based on availability, rather than exposure potential. Market Scope came to rescue again, as we were able to reduce the billboard placement by 50% by placing billboards in areas of high target market population saturation. What this basically means is that we launched 4 billboards in Randburg and reduced Marlboro from 6 to 1 billboard. Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
  • 7. Messaging Our client supported 12 brands nationally. The challenge of exposing different brands that were dominant in certain areas, were well met with a combination of billboards and local community radio. The messaging did however pose a problem of a totally different nature. How do develop a message that attracts new customers, while at the same time keeping it relevant for existing customers. After leading a workshop to address this particular challenge, the concept of promoting the intrinsic product muscles was found to be a way out .While wholesomeness and health were specific and unique product attributes associated with the product, the relevance to existing and new customers was universal. Results • What was significant about this project was that we were able to get the marketing teams to think differently and to question the logic of what companies normally perceive as standard procedure. All too often in our interaction with marketing and advertising vendors, they would refer to “everyone does it that way” as the logic applied to execution. • The company further underwent a mindset change. While marketing teams are usually thought of as being the ‘creatives” in the business, it became clear very quickly that creative input is what you get from your advertising company. Marketing teams are all about making decisions around where and how they need to spend, and how they could possibly get a return on what’s invested. • The billboard site selection exercise was exactly a case in point. Whereas the advertising company identified 960 sites, we used Market Scope to calculate deliberate target market exposure, and were able to deliver a more effective placement solution. Billboard sites were contained at just over 400. • While savings paid for the project, the client actually got what he paid for. Insight processes and systems that managed to drive behavioural change within his marketing team. Understanding that a scientific approach can help them achieve their goals and objectives effectively. Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
  • 8. About Carpedia Consulting… Carpedia Consulting is an internationally relevant management consultancy firm, dedicated to assisting clients to improve sales and profits through the implementation of improvement programs. Our approach is what makes us unique. The way we design, develop and execute our programs is hands-on, solutions-based and excellence driven. Our programs are customized to the needs of your organisation and are designed to ensure significant and sustainable improvements are made both internally and externally – by the sales team, for the customer. www.carpedia.co.za About Werner Hess… Werner Hess has spent 20 years of his career in various sales, marketing and leadership positions with Bayer, Triad Electronics, GE and GE Plastics before serving as managing director of GE Plastics and Polymerland. Werner’s first experience in the world of consulting came about when he joined Proudfoot Consulting as Director of Business Development, which included several international assignments in Europe and the USA, leading sales effectiveness projects for global clients. Werner’s current company, Carpedia Consulting is a specialist niche consultancy focused on sales and profit improvement. Werner’s latest book, The Science of Selling has just been published and reveals approaches, systems and processes that can be implemented to create a successful sales platform. Werner can be reached on: whess@carpedia.co.za Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value
  • 9. Carpedia Consulting (Pty) Ltd PO Box 1701 GALLO Manor 2052 Building 2 Country Club Estates Woodlands Drive Woodmead Sandton South Africa Tel: 27-11 – 258-8813 Fax: 27-11- 258-8511 Mob: 27-82-888-0228 Email: info@carpedia.co.za www.carpedia.co.za Carpedia Consulting (Pty) Ltd – www.carpedia.co.za – Marketing spend that drives value