Tag Archives for Marketing and Advertising

Can We Save Marketing?

indecision dice

Image by snigl3t via Flickr

Over the last six years, I have had a personal interest on the verge of a crusade to better understand and study lead marketers and CMOs across industries. My concern, after meeting well over 300 leaders, is marketing is lacking influence and at some companies is considered “damaged goods”.

How do we fix it? The question I hope to answer over the coming months. There are three areas of concern, which I believe highlight the main issues.

1. Communications heavy, impact light

Historically, marketers and our peers in the executive ranks have been hyper-focused on communications – the latest ad, hot new website or now how many people “like” us on Facebook. We have lost substance and, in some cases, lack the will and determination to educate our organizations on what marketing is and is not. Traditional marketers seem to be less likely to hold the CMO post. In many of the companies I have spoken with, it is more likely that someone from sales, product or operations to be in the CMO role. The stinging reality… they are doing a better job. Why? Probably because they have a broader perspective on what is driving the business and how to harness it.

2. Losing influence, merging functions

Marketing leaders have lost influence. A recent IBM study of 1700 CMOs, show that less than half of the CMOs surveyed have much sway over key parts of the pricing process, and less than half have much impact on new product development or channel selection. Being a Marketing leader is such a herculean task of political gamesmanship to drive a cohesive strategy there is now wonder that the average tenure is still less than ½ that of the CEO. Despite these odds there is still hope as it seems a trend is growing in combining posts like Chief Commercial Officer or Chief Sales & Marketing Offer or Chief Marketing and E-commerce Officer. Although a great recognition on part of CEO and board that greater ownership is needed, they still lack the strategic focus on marketing in its potential long-term impact.

3. All-stars abandoning ship, lack of pride

My gravest concern is our very best are abandoning ship. The “best of the best” marketers that I have spoken to, rarely self-identify themselves as a marketer but rather opt for a “business leader”, “business executive”, “driver of the business”, etc. When I have asked do you consider yourself a marketer, their voice gets quiet and they say “no.” Despite the fear of being pegged a marketer, almost all agree that marketing is at the core of how they approach their jobs and that marketing with a big “M” is what more organizations desperately need.

Depressed yet. There is hope.

We have to start thinking about what matters again. We need to learn from those we think of as magicians of the practice. At the heart of what marketers are trying to accomplish is meaningful differentiation and capturing uncontested demand. “Meaningful differentiation” is difference that matters and customers are willing to pay for. As for “uncontested demand”, this term comes from Blue Ocean strategy and is the whitespace source of new demand we all seek that allows our products and services to occupy a new space that satisfies a real need not previously addressed.

Let’s all get back to what matters, which should deliver the impact, influence and pride marketers are lacking today. Help save marketing!

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Only 25% of Companies Are Managing Marketing Effectively, Study of 400 Companies Links Performance to Specific Marketing Management Best Practices

Only one-fourth of companies believe they are managing their marketing efforts effectively, according to the results of a survey of more than 400 companies by my firm, CMG Partners, and market research firm Chadwick Martin Bailey. But the study also found that those companies that actively use marketing effectiveness best practices are reaping positive results in areas such as share gains or revenue growth.

The study, entitled The Marketing Performance Advantage, surveyed more than 400 companies across a variety of industries and company sizes to determine the key attributes of successful marketing organizations and to understand what marketing practices they employ.

“We found a high degree of interest in marketing measurement, but surprisingly very few executives reported success with translating that interest into improved marketing effectiveness or bottom line results,” observed Rich Schreuer, senior vice president of Chadwick Martin Bailey.

For example, the study found 75% of participants expressed interest in measuring the performance of their marketing initiatives yet….

  • only 27% of companies are fully integrating their marketing measurement insights into marketing planning,
  • only 20% believe they excel at measuring the performance of marketing initiatives, and
  • only 24% believe they are improving business results based on this information

For more visit the site, The Marketing Performance Advantage.

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Is IDC loosing relevance on marketing?

The IDC released a preview of their upcoming report, IDC’s 7th Annual Tech Mktg. Benchmarks Study.  I was stunned at the marketing kingdom protection rhetoric and support of empire building for marketing leaders. Most of the trends were aspects that have been underway for some time — shifting budget online, focusing on sales and marketing alignment. Where is the insight?

On a related note, it has been a while since publishing a meaty post due to finishing a research project for CMG Partners called CMO 2.0: The next step in the evolution of the Chief Marketing Officer. The executive summary is out today and you can sign-up for the free full report to be released to the public on Oct. 26th.

It is the CMO 2.0 research that forces me to question IDC’s relevance. In speaking with 30+ CMOs in this latest round and 60+ to date, we propose an evolution is occurring in marketing leadership.  CMOs of the future will be much more like what we have coined as a “Chief Transformational Officer”. This attainment is earned by demonstrating enterprise value not creating empires or protecting kingdoms as IDC suggests.

To earn the broader, more strategic role described above, lead marketers must accept accountability for business drivers and demonstrate impact. Three components include:

  • Accountability for revenue: Marketing should be driving the business, but this role is earned, not a birthright. Demonstrating value can take many forms, but a central theme was accountability for sales or revenue, which ultimately provides the opportunity to have a greater voice in setting business direction and more latitude to experiment.
  • Cut first or be cut: In the downturn, marketers that were fairing better emotionally and professionally made the first move in identifying where dollars could be conserved, and how to shift resources to higher quality or more measurable initiatives. In doing, so they clearly demonstrated corporate citizenship over defense of the marketing kingdom, and earned the respect of their peers.
  • Adopting the role of strategic advisor: Market-driven processes like new product development or voice of the customer programs provided a more rigorous and formal opportunity for marketing to assume a leadership role. Many leaders are using external market-facing processes such as these to increase influence in other areas like engineering, operations and customer service, and step closer to the role of strategic advisor.

What are your thoughts? Which side of the fence do you support?

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Renewed definiton of brand

Skittles.
by photographer PiccoloNamek and
image via Wikipedia

This is the fourth in a series of short posts related to The CMO Agenda research. Informed by recent CMO conversations and CMG Partners‘ collective experience helping top marketers develop marketing strategy, we have compiled a list of seven ideas or jump starters for further conversation. These are meant to spark discussion, ideas, and action as we all enter a difficult 2009.

The transparency and accountability of brands is increasing as new uses of the Internet drive the democratization of voice — shifting knowledge and control from marketers to consumers. This trend is forcing marketers to adopt non-traditional methods of brand management to ensure the brand is consistent not only in communications but through all customer touch points. As one CMO put it, “everything we do communicates.”

If you beleive that the true definition of a brand lies with the perceptions of consumers not with the marketing leaders, then the extreme brand management practice would be for consumers to drive the expression of the brand. Well maybe not, but this is exactly what the maker of Skittles has done (knowingly or unknowingly).

In March, Skittles re-launched their website, which used social media tools for content: Twitter for “Chatter”, Facebook for “Friends”, Wikipedia for “product information” and YouTube for “Media”. This was heralded by some and refuted as a circus trick by others (see a previous post for my take).  Unfortunately, I have not been able to find information on the performance of the campaign.

This example, whether good or bad, does provide a new theory for brand managers and bring to reality the old phrase “a brand is what others say about you, not what you say about yourself.” How will you begin to renew your brand management practices to align with consumer voice?

Mirror post at cmgpartners.com/blog

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Marketing: noun or verb?

When we asked leading marketers about their roles and priorities during our recent CMO Agenda study, we heard a lot of commentary on the need to step up and drive major change inside their organizations. One CMO of a mid-sized CPG summed up these responses perfectly by describing his main priorities as “defining marketing as a verb rather than a noun” and “taking proactive leadership” that allows the brand and its main steward, the CMO, to be at the center of efforts.

Read more on the idea of how to make marketing a verb within your organization in our article “Marketing: Noun or Verb?” recently published on MediaPost’s Marketing Daily Commentary.

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Differentiate or be commoditized

This is the second in a series of short posts related to The CMO Agenda research. Informed by recent CMO conversations and CMG Partners‘ collective experience helping top marketers develop marketing strategy, we have compiled a list of seven ideas or jump starters for further conversation. These are meant to spark discussion, ideas, and action as we all enter a difficult 2009.

True differentiation is increasingly hard with faster moving markets and better-educated shoppers. This means the task of constantly exploring whether your products and services stand out in the mind of the consumer is critical.

How will you differentiate for the long-term?

Forecasting the “death of the American Brand” as one CMO said, forces you to think about the private label explosion and house brand strength by the likes of Target and big chains. These house brands are successful because very little separates them from the old standards.

This trend is happening in everything from CPG to Computers to Insurance. Dell rode the wave as it commoditized the PC market, which now tries to find a sure footing again. Even service markets like insurance are seeing this trend as GEICO and Progressive lead the charge to commoditize auto insurance and drive down prices — even large cost-ridden competitors are following them in this practice.

In this tough economic market, for many the first reaction is to discount or attempt to push value and rationale messaging, but marketers need to understand the long-term impact. It is time to reassess the market and understand current strategic impacts to make decisions and trade-offs on how your company can differentiate in a unique way.

Mirror post at cmgpartners.com/blog

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What should CMOs be doing? Transformation!

This is the first in a series of short posts related to The CMO Agenda research. Informed by recent CMO conversations and CMG Partners‘ collective experience helping top marketers develop marketing strategy, we have compiled a list of seven ideas or jump starters for further conversation. These are meant to spark discussion, ideas, and action as we all enter a difficult 2009.

As one CMO I recently spoke with said, “We should define marketing as a verb rather than a noun. We need to be more proactive.”

Marketing should be a transformational change agent
Companies looking to grow are often in need of a new way to look at their business and a new vision to work toward. If your title is CMO, the job of creating this vision and pushing the organization to achieve it falls on you. More than any other function, CEO’s should look to marketing to lead the charge for change.

Why is marketing “right” for this?
Marketing is the most cross functional part of  many organizations due to the customer orientation that puts them in contact with engineering to customer service. Would you really want IT to lead your customer centricity effort?

Marketers by definition should be driving better insight, understanding and motivating desired behaviors inside and outside the enterprise. Marketing should be driving the organization to capture value.

Now might be the perfect time to ask yourself whether you’re shaking things up enough.

Mirror post at www.cmgpartners.com/blog/

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Gearing up for AMA’s Mplanet 2009, reach out to me

Mplanet 2009 - Orlando, FL

Mplanet 2009 - Orlando, FL

CMG Partners is proud to be an exhibiting sponsor for the American Marketing Associations (AMA) upcoming Mplanet marketing conference. As the AMA puts it, “Mplanet is a one-of-a-kind forum where B2B and B2C marketing leaders and luminaries will share the latest marketing thinking, ideas, innovations and their visions for tomorrow. Plus they’ll offer field-tested strategies and proven solutions that you can take away and put to use.”

We are looking forward to interacting with marketing leaders from leading companies, academic institutions and service organizations at what will surely be a fun, stimulating conference.

For those attending the conference please stop by and visit us at booth no. 55 or contact me to chat.

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Sponsorships at Amex: the experience is the strategy

American Express Company
Image via Wikipedia

In a previous post, “Choose organic product placements or your brand suffers“, I highlighted a number of criteria to think about as companies and marketers selection product placements or sponsorships.  American Express has an interesting strategy for their sponsorships that focuses on “experience”. This is also a core element of the American Express brand.

Q: What determines Amex sponsorships?
A: We think about partnerships in terms of what overlaps with cardmembers’ passions. Our cardmembers are voracious consumers of entertainment, and music is a big area of interest. First and foremost, it’s about cardmembers and providing value for them. – Courtney Kelso, VP of Sponsorship Marketing at Amex

To get the full Q&A with Courtney Kelso, VP of Sponsorship Marketing at Amex, please read “Amex Sponsorships Give Members An Experience” from MediaPost MarketingDaily.

For American Express, members (a.k.a. customers) and “memebership” are the driving force for their brand and business. By simply being a card member, customers have access and exclusiveness that provides value regardless of the actual service (credit) being provided. Now obviously Amex is smart and has built their business model on the more you use (credit) the more access and exclusiveness you gain.

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