Reflecting On Marketing Accountability

transcript

On Marketing AccountabilityA Reflection

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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

If you think marketing has a corporate image problem

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Marketers are faddish, irresponsible, …

don’t think like business people …

more akin to a recalcitrant child …

McKinsey CEO/CMO Survey

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The average tenure of CMOs in consumer

markets is 23, 15 or 12 months.

Spencer Stuart

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Too many marketers have become so

specialised that they don’t think in

terms of the company’s big picture.

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Philip Kotler

Marketers are frivolous and

difficult to approach

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Australian Society of Certified Public Accountants

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Cranfield University

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

Care about cars, stats and lunch

Use jargon

Slippery

Expensive

If you think marketing has a corporate image problem

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Who Killed Marketing?A Forensic Investigation

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Don’t shoot the messenger

Bloody

Uncomfortable

Confronting

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THE VICTIM

Accountability to the Business

THE CRIME SCENE

Accountability to the Customer

THE VICTIM’S WORLD

Accountability to the World

A Forensic Investigation

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THE VICTIM

THE CRIME SCENE

WARC, 2007

Which % of

marketers define

clear objectives for

their campaigns?

Which % time do Sr.

Marketers spend on

their media strategy

(= largest budget item)?

2%EMM, 2005

Which % of Sales

Promotions are

Unprofitable?

85%UCLA, 2004

Which % of German

TV advertising

campaigns generate

negative ROI?

82%Deutsche Bank, 2004

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Accountability to the Business: Making Money

The Reasons:

Differing Strategies within the organisation

Lack of integrated planning

Resistance to Change

Unco-operative Retailers

Lack of Internal Communication

Misalignment between Marketing & Sales

Turf Battles

Organisational Silos

Source: reveries.com survey, July 2005 – n = 198 US marketersFUTURELAB

Accountability to the Business: Implement Plans

Over 80% of the ROI of any Marketing Strategy/Initiative is left to chance

31% of projects are canceled before completion

53% of projects cost nearly double of original estimates.

only 16% of projects come in time and budget.

Source: Management Centre Europe

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Accountability to the Business: Implement ... At All

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THE VICTIM

THE CRIME SCENE

ACNielsen, E&Y, 2005

Which is the failure

rate of US Consumer

Products?

Which % of CEO’s

believe their brand

provides superior

customer experience

Bain & Company

Which % of their

customers actually

agree?

Bain & Company

Which % of Germans

are irritated by TV

advertising

GfK Marktforschung

78%88% PVR users adskip

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THE VICTIM

THE CRIME SCENE

CASE: 25% of all bottled water in the world crosses national borders.

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• Fiji – New York : 13,000 km by boat & truck

• 50% of wholesale cost = transportation

• 1 million bottles/day = own electricity generation in “pristine” Fiji

• >50% inhabitants do not have reliable drinking water

• Glass bottle = 5x weight of plastic bottles (transport & energy)

• 2 liters of water to wash/rinse 1 liter bottle before filling

• Truck in CO2 from volcanic springwater in Tuscany

Accountability to the World: Environment

http://www.youtube.com/watch?v=grH1g

K1TpW0

(30 second edit)

http://www.youtube.com/watch?v=9uUq

Pj7FLBE

(45 second edit)

Abroad At home

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Accountability to the World: People

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In Your Communication: Neutrality

Accountability to the World: People

Do you really believe in what you do? Or do you wear a mask?

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Accountability to the World: The Self

SUICIDEWho Killed Marketing?

FUTURELABImage: http://snapesluvr.deviantart.com/art/CSI-Springfield-29131429

How can you avoid it happening to you?

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http://www.youtube.com/watch?v=9MaKHxsGZ-

A&mode=related&search=

Tom Knows

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Be Accountable to the business, the customer, the world

“Drive” or prepare to “Be Driven”

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MEASURE & PREDICTBUDGET ALLOCATION

Case: German insurance company Case: Indian Tea company, Greek Telco.

Demonstrate Financial ROI

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Make Implementation Happen

Align employees, agencies, vendors, retailers, …

“Companies with aligned marketing & sales

• grow 5.4 % faster

• are 38% better at “closing proposals”

• churn 36% less of their customers

MarketingProfs Benchmark Report 2005

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Focus Your Business on the Customer

Create Meaningful Propositions

Communicate with Respect, Insight, Passion

Customer Delight at all Touchpoints

Life Cycle Assessment Create a win-win Aspire Neutrality

Demonstrate the Profitability of Caring

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Challenge what has

stopped making sense

Look in the Mirror, Every Day...

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but inescapableto address its image problem, marketing

needs to become more accountable ...

Conclusion:

The Tools Exist ... The Choice is Yours

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To experiment with, learn about and act

on marketing accountability:

info@futurelab.net

SEPTEMBER 2007: MARKETING ACCOUNTABILITY EXPERIMENTATION LAB (MAX)