In part 2 of the Copernicus Marketing Planning 3.0 webcast series, Eric Paquette describes how marketers can and should evaluate their marketing strategy using a simulation approach to marketing mix optimization. The slides from his presentation offer suggestions for how to embed strategic elements such as targeting, positioning, and communications planning into a virtual marketplace in order to forecast the effects.
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Using a Virtual Marketplace to Evaluate Your Marketing Strategy
1. Using a Virtual Marketplace to
Evaluate Your Marketing Strategy
June 19,2013
2. Welcome to Our Second Installment!
2 weeks, 5 webcasts, improved marketing effectiveness
3. 1. TransformationalMarketing Mix Optimization Using a VirtualMarketplace
Presenter: JeffMaloy,SeniorVice Presidentand Chief Marketing Officer
Available On Demand: brighttalk.com/webcast/1336/76329
2. Using a Virtual Marketplace to Evaluate Your MarketingStrategy
Presenter: Eric Paquette,SeniorVice President„
Available On Demand: brighttalk.com/webcast/1336/76331
3. Optimizing Your Media Plan for the Bought-Owned-Earned World
Presenter: RolfOlsen,Vice President
Available On Demand: brighttalk.com/webcast/1336/76333
4. Leveraging Marketing Investments with MarketingMix Modeling
Date:Wednesday,June 26
Time: 1 pm EDT
Presenter: Irina Pessin,Managing Partner,Data2Decisions US
5. MarketingAnalytics:5 Things Every CMO Should Know
Date:Thursday,June 27
Time: 1 pm EDT
Presenter: PeterKrieg,Presidentand CEO
Series Schedule
4. Think…
For a PDF of this presentation and our advertorial
on using big data for marketing planning…
Email: ami.bowen@copernicusmarketing.com
5. Who Am I?
Eric Paquette
Senior Vice President
Copernicus Marketing Consulting & Research
Helping clients develop, execute and evaluate transformational marketing strategies
6. Today
Why we use new modeling techniques to simulate marketplaces and media
eco-systems
How they can inform both short term-media planning and potentially longer-
term strategy
What are useful marketing research inputs to building better models
How these, when incorporated in the model, inform the effectiveness of our
strategy
9. … to this
Search
Aggregated Content
In-Store
E-Commerce
Content Syndication
Pre -Launch
Public Relations
Outreach to
Influencers
Sponsorships
Print Live Read Radio
Lifestyle PaidMedia
Paid Video
(TV, Digital)
AwarenessDriving Paid Media
Radio
WOM
Live Events
Paid Social
Mobile App Facebook App
Partnerships
YOURBRAND
HERE
10. 0.85
2.11
0.77
0.91
1.35
2.37
0.69
1.74
0.86 0.87
1.89
3.32
TV OOH Print Radio Digital Search
We need to evolve how we evaluate and plan
Social
MarketingROIby Media
Fromtraditional MMM to….. ….a deeper cross-channelunderstanding of
the eco-systemand network effects
11. New analytic techniques likeABM or CCM are providing increased understanding of
the market and enabling evaluation and simulation the way that media is planned.
11
Why simulation modeling?
Bought Owned Earned
12. Models provide planning capability to optimize for the immediate-to-short term
Knowing what we know, and
given our current strategy, how
do we optimize our plan?
13. They also provide important diagnostics about the strategy, possibly identifying areas
for improvement over the longer term.
14. CCM
BOE Media
Agent
Population
Sales /
Other
Metrics
Exogenous
/Macro
Effects
Competitive
Activity
A“basic” ABM or CCM explains the effects of BOE media, competitive activity,
exogenous effects on an Agent population on sales or other metrics.
Search
Aggregated Content
In-Store
E-Commerce
Content Syndication
Pre -Launch
Public Relations
Outreach to
Influencers
Sponsorships
Print Live Read Radio
Lifestyle PaidMedia
Paid Video
(TV, Digital)
AwarenessDriving Paid Media
Radio
WOM
Live Events
Paid Social
Mobile App Facebook App
Partnerships
YOURBRAND
HERE
15. Models are improved by having a fundamental understanding of how marketing and
media work.
More informed models will provide more detailed insights into the plan and strategy.
Marketing Investments
TV Advertising
PrintAdvertising
“MDF”Spend
PR
Sponsorships
A Forecasting and Campaign Evaluation Model
Web Site
Rankingin
Search Engines
PartnerSpend
POS Presence
External Influences
Economic/SocialTrends
Category Trends
MarketSegment
Competitive Activity
Price Trends
Popularity of YourSponsorship
Sales Associate Support
Awareness of and Familiarity with
Your Brand
Penetration of Marketing
Activities
Attributes/Benefits Perceived
in Your Brand
Search Your Brand
(e.g.,web, “shop”)
Purchase
Consideration
Your Sales
Brand
Equity
16. Market Segmentation
BrandAdvocates
Shopper Journey
Advertising Tests
Brand Tracking / Drivers Analysis
Creative / Message Tests
Agents can be better informed with your existing marketing research
17. Your market segmentation provides a wealth of useful information
Happy
Families
Struggling to
Get By
Always an
Angle
Simple &
Settled
Savvy
Sophisticates
# of U.S. Adults 38MM 38MM 48MM 32MM 44MM
Annual Spend $133 $131 $98 $95 $71
% of Category Spending
(Index)
26%
(136)
24%
(127)
21%
(95)
14%
(92)
15%
(69)
Current Share 27% 20% 16% 16% 14%
% of Current Opportunity
(Index)
37%
(195)
22%
(107)
19%
(71)
10%
(63)
10%
(45)
DifferentDemographics
DifferentMedia Behaviors
Differentin Needs/Motivations
DifferentBuying Occasions
DifferentChannel/ Store Preferences
18. Revealing insights about your plan and your segments
Search
Aggregated Content
In-Store
E-Commerce
Content Syndication
Pre -Launch
Public Relations
Outreach to
Influencers
Sponsorships
Print Live Read Radio
Lifestyle PaidMedia
Paid Video
(TV, Digital)
AwarenessDriving Paid Media
Radio
WOM
Live Events
Paid Social
Mobile App Facebook App
Partnerships
YOURBRAND
HERE IS IT THE PLAN
OR THE SEGMENTS
THEMSELVES
Salesby Segment
19. Leverage the network capabilities of models and incorporate Brand Advocates
Design Agents to represent your Brand Advocates
How many are there?
What are their demographics /
media behaviors?
What are their advocacy behaviors?
20. Are Advocates important or not from a planning perspective?
Does the plan reach the Advocates?
Are there enough of them to drive sufficient sales?
Do they reach the right segments?
Are they active enough?
21. Map out the Customer Journey
What are the steps?
When are different media / touch
points used?
What is sought?
Are there seasonalelements?
Does advertising reach people with
the right message during the right
moments and mindset?
22. Include brand ratings and drivers analyses to establish the links between brand
perceptions and behaviors
Perceptions of Our Brand vs. Competition on Each Attribute
Both the Same
Our Brand
Superior
Excellent:
Could not Be
Better
Acceptable,
But Could Be
Better Unacceptable
Our Brand
Inferior
Motivating
Power of
Attribute/
Benefit
High
Key
Positioning
Opportunity
Price of
Entry—
Maintain
Possible
Opportunity
Major
Opportunity
Serious
Weakness—Try
to Fix
Mod Secondary
Opportunity
Secondary
Price of Entry
Secondary
Opportunity
Secondary
Opportunity
Secondary
Weakness
Low
Potential
Opportunity—
Increase
Importance?
Cut Costs? No Action No Action No Action
Brand
Strategy
Matrix™
Value of Strategy Ranked from highest to lowest
23. Advertising, creative and message tests inform the effects
Who recalls the ad?
What attributes / benefits are
improved?
Who cares about those the most?
Who is inspired to act?
24. Diagnostics indicate value of opportunities for longer term strategy improvement
What is it worth in sales, or cost savings?
What is the implied ROI of investments in strategy improvement?
Media Investment
Sales
Effect of Strategy
Improvement
Current Strategy
Improved Strategy
25. Recap
New market models can significantly enhance the planning process by providing
feedback and simulation capabilities in the same way that media are planned
The more you inform those models with your understanding of the market, the
better able they will be to explain sales or other useful metrics
Informing with your “strategy” also enables evaluation / diagnostics of your strategy
Enables identification of weaknesses that should be improved and even expected
levels of return for making those improvements
26. Optimizing Your Media Plan for
the Bought-Owned-EarnedWorld
Rolf Olsen, Vice President, Director of Marketing Analytics
Tuesday, June 25, 2013
27. Think…
For a PDF of this presentation and our advertorial
on using big data for marketing planning…
Email: ami.bowen@copernicusmarketing.com
28. Eric Paquette, Senior Vice President
(617) 449-4189
Eric.Paquette@copernicusmarketing.com