On Marketing AccountabilityA Reflection
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Feel free to re-use or mash-up this
presentation under Creative Commons
2.0 licence (non-commercial, attribution)
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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
Churn
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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Ph
oto
by ~
bill
ysri
otg
irl0
404
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
Accountability to the Business
THE CRIME SCENE
Accountability to the Customer
THE VICTIM’S WORLD
Accountability to the World
A Forensic Investigation
WARC, 2007
Which % of
marketers define
clear objectives for
their campaigns?
46%
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
A Forensic Investigation
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
A Forensic Investigation
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
A Forensic Investigation
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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
ACNielsen, E&Y, 2005
Which is the failure
rate of US Consumer
Products?
95%
Which % of CEO’s
believe their brand
provides superior
customer experience
80%
Bain & Company
Which % of their
customers actually
agree?
8%
Bain & Company
Which % of Germans
are irritated by TV
advertising
GfK Marktforschung
78%88% PVR users adskip
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Accountability to the Customer
A Forensic Investigation
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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
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
A Forensic Investigation
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
A Forensic Investigation
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In Your Communication: Neutrality
Accountability to the World: People
A Forensic Investigation
Do you really believe in what you do? Or do you wear a mask?
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Accountability to the World: The Self
A Forensic Investigation
SUICIDEWho Killed Marketing?
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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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Accountability to the Business
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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Accountability to the Business
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Focus Your Business on the Customer
Accountability to 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
Accountability to the World
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Challenge what has
stopped making sense
Look in the Mirror, Every Day...
Accountability to the World
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Heavy
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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:
SEPTEMBER 2007: MARKETING ACCOUNTABILITY EXPERIMENTATION LAB (MAX)