Marketing3 Presentation
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This is a presentation Alain Thys gave at the Marketing 3 conference on Nov 29, 2007. For more on this topic, check out http://blog.futurelab.net
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Marketing3 Presentation
- 1. Feel free to re-use or mash-up this presentation under Creative Commons 2.0 license (non- commercial, attribution) Marketing 3: On Accountability Alain Thys (http://blog.futurelab.net) FUTURELAB
- 2. 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 FUTURELAB
- 3. If you think marketers have an image problem FUTURELAB
- 4. FUTURELAB What People Think of Marketers Don’t shoot the messenger
- 5. FUTURELAB Marketers are faddish, irresponsible, … don’t think like business people … more akin to a recalcitrant child … McKinsey & Company, CEO/CMO Survey, 2005
- 6. The average tenure of CMOs in consumer markets is 23, 15 or 12 months. FUTURELAB
- 7. FUTURELAB Too many marketers have become so specialised that they don’t think in terms of the company’s big picture. Philip Kotler
- 8. FUTURELAB Marketers are frivolous and difficult to approach Australian Society of Certified Public Accountants
- 9. FUTURELAB 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 Cranfield University
- 10. quot;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.quot; Dilbert’s Boss cc 3.0, Megaqwerty FUTURELAB
- 11. FUTURELAB Buy Stormhoek Wine
- 12. FUTURELAB
- 13. If you think marketers have an image problem FUTURELAB
- 14. 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 Marketers need to become more « accountable » for themselves and for the benefit of the business.. FUTURELAB
- 15. FUTURELAB The Marketer’s Bushido Changing marketing’s bad image
- 16. Insight Respect Integrity Financial Acumen Inclusion Perspective Passion FUTURELAB The Marketer’s Bushido
- 17. Insight Respect Integrity Financial Acumen Inclusion Perspective Passion FUTURELAB The Marketer’s Bushido
- 18. 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? FUTURELAB
- 19. FUTURELAB German Traditional Chains vs. Hard discounters McKinsey & Company, Nov 2004
- 20. 60% of sensory experience of drinking espresso comes from the retail environment (and you lose it when you go home) FUTURELAB
- 21. « Best Practice » is Insufficient Insight Product Insight Insight Insight Insight Insight Acting on Insight in emotions, rationalisations and choice drivers at every step of the experience. The Experience IS the Product FUTURELAB
- 22. Don’t forget to understand the “influencers”
- 23. Real Insight Understand what truly drives and moves me ... and those who influence me ... at every step of the overall experience you offer FUTURELAB
- 24. Insight Respect Integrity Financial Acumen Inclusion Perspective Passion FUTURELAB The Marketer’s Bushido
- 25. RESPECT FUTURELAB
- 27. Don’t treat me like a child “one message doesn’t fit all” FUTURELAB
- 28. People don’t fit boxes • 28-34 • Online music, movies & laser hair removal • Modest but dependable disposable income FUTURELAB
- 30. To simplify and give meaning: Humans seek patterns, even where there are none
- 31. FUTURELAB “It’s the easy way out, and as long as we all do it, we’re fine” Romanian marketer
- 32. RESPECT Let go of mindless segmentation Treat markets like “people” Bring back the love And you might get some in return FUTURELAB
- 33. Insight Respect Integrity Financial Acumen Inclusion Perspective Passion FUTURELAB The Marketer’s Bushido
- 34. perception 80% of CEO’s believe of believe their brand provides a superior customer experience 8 % of their customers agree (Bain & Company) FUTURELAB
- 35. 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) FUTURELAB http://www.youtube.com/watch?v=xaaAYVUWP0I
- 36. Companies break their promises every single day. Does your business keep yours? FUTURELAB
- 37. Breaking promises in a WoM world is suicidal FUTURELAB
- 38. But I’m just a marketer FUTURELAB That is not my department …
- 39. 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” FUTURELAB
- 40. Consider Each Moment of Truth as a Brand Expression Source: DAVIS S., LONGORIA T., “Harmonising Your Touchpoints”, Brand Packaging, Jan/Feb 2003 FUTURELAB
- 41. In a million channel world, brands whose consumers tell the best stories, win EXPERIENCES - EMOTIONS - STORIES
- 42. INTEGRITY Ensure that your brand tells the truth when it makes a promise And when a promise is made make sure it is kept FUTURELAB
- 43. Insight Respect Integrity Financial Acumen Inclusion Perspective Passion FUTURELAB The Marketer’s Bushido
- 44. A Reminder from Tom http://www.youtube.com/ watch?v=9MaKHxsGZ-A FUTURELAB
- 45. 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
- 46. A Structural Answer: Multivariate and Agent Based Modeling MEASURE & PREDICT AGENT BASED MODELING Case: Indian Tea company, Greek Telco. Case: US Packaged Consumer Goods Company FUTURELAB
- 47. Pragmatism: Focus your money where it matters Average Media Consumption by Week (Europe), 2005 14 IMPACT Source: Nielsen Interactive Europe, 2005 12 10 8 6 4 2 0 es t on ic o s s VD ne k e i us ad am oo in i D er is M az R v B t G In le ag Te M Preference Purchase Repurchase Loyalty Advocacy
- 48. Resist Orthodoxy • Booking TV = higher margin • Standard rate-cards are less work • Digital avoidance is easier on the brain • Agency co-operation is inconvenient
- 49. FINANCIAL ACUMEN 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 FUTURELAB
- 50. Insight Respect Integrity Financial Acumen Inclusion Perspective Passion FUTURELAB The Marketer’s Bushido
- 51. Houston, we have a problem 90% of businesses are unable to execute the strategy they have on paper 70% of businesses project performance they will never attain 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
- 52. Only 5% of the workforce understands what the strategy is Source: Norton, D. Aligning your Strategy to the Customer Value Proposition, 13/9/2005
- 53. 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” FUTURELAB
- 54. YET THEY ARE THE “MOMENT OF TRUTH” FUTURELAB
- 55. FUTURELAB Do people “get” your strategy ? What will you do to make it “clear”
- 56. 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 FUTURELAB
- 57. Insight Respect Integrity Financial Acumen Inclusion Perspective Passion FUTURELAB The Marketer’s Bushido
- 58. FUTURELAB Dreaming of a better future … where there is more to business than making money.
- 59. DREAM ON … SHOW ME THE MONEY FUTURELAB
- 60. Be responsible AND make money FUTURELAB
- 61. Consumer Demand 2008 FUTURELAB
- 63. PERSPECTIVE Do good for the world and for your business FUTURELAB
- 64. Insight Respect Integrity Financial Acumen Inclusion Perspective Passion FUTURELAB The Marketer’s Bushido
- 65. FUTURELAB Be the First Penguin that resists threaths & temptation
- 66. Insight Respect Integrity Financial Acumen Inclusion Perspective Passion FUTURELAB The Marketer’s Bushido