It\'s been a bug-bear of mine for many years that the average marketing skill set has not moved on very much from the 1960\'s model of 4 \'P\'s (Product, Price, Promotion, Place). Or that marketing is still largely synonomous with advertising - and spam advertising at that. This is a presentation I did to a marketing forum out in Singapore, where I\'ve tried to outline the new capabilities of the marketer of the 21st century. I also postulate the (controversial) perspective that a chunk of this new capability - especially around data and decisioning - might be better out sourced, leaving the internal marketing skills to be concentrated on strategy and proposition. See what you think. [Sorry you won\'t have my spoken narrative just yet but the slides are reasonably self explanatory]
1. The Age of New Reality Marketing Is your marketing capability fit for purpose? Tony Mooney Singapore, May 15 th 2009
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5. Media convergence is re-writing the rules for Advertising Converged media is driving the need for a more data driven approach Convergence of Media Network connectivity on TV Growth of transaction TV Targeted advertising in broadcast Video moving to web Content mobility Globalisation of media Media Convergence Themes Implications Mass Market take-up of converged media will generate massive amount of data & the demand to analyse this Need for data, systems & insight to target and, more importantly, measure advertising Need for data literacy & measurement & management of Marketing Investment now key Globalisation means the need to organise around consumer segments rather than territories Source: Decipher
6. The New Marketing Ecosystem is undeniably complex Call centre Performance Management Strategic Advertising Targeted Advertising Media Expenditure Media Channels Decision Support Propositions Strategy Margin Management Portfolio Strategy Internal Marketing Customer Intelligence Market Intelligence Competitor Intelligence Business Intelligence Messaging Pricing Resource Management Channel Management Content Management Increasing scope of the Marketing EcoSystem Direct Marketing Operational Expenditure P2P Contact Expenditure Capability Expenditure BI Marketing Technology Research Services Brand Consulting Strategy Consulting NPD Services Creative services Research Services Data Services BI Marketing Tech Creative Services CRM Web Tech POS Tech Media Buying Database Tech Database Tech Database Tech Database Tech Database Tech Support Services & Infrastructure Press Print TV Retail Mobile Radio Viral Web Outdoor Product Development Product Management Offer Development Brand Philosophy Brand Model Campaign Planning Budget Management Campaign Management Email
7. Convergence of IT, Operations & Marketing Future Marketing will require the collaboration of key enterprise budgets Marketing Budget Operations Budget IT Budget Inter-dependencies of Marketing, Operations & IT Credit Risk Convergent requirements
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9. Internal IT has not delivered for Marketing Increasing demand on technology from future-state marketing Issues with Internal IT Marketing Objectives IT Objectives Goal misalignment Weak marketing business cases IT vendors don't understand marketing “ Only 15% of current CRM projects are successful ” IBM Institute for Business Value “ A survey of companies has found that fewer than half of IT projects have intended, positive business outcomes ” “ Marketing vs. Technology is a fight between ignorant marketing people who expect technological miracles immediately and the propeller-heads who talk only about the benefits of some coding philosophy that no one really understands.” CMO Magazine
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11. What Constitutes Capability? “ The power to do something” People Systems Data Process Key Capabilities for New Reality Marketing
12. 1. Customer portfolio management - not customer product management Key Capabilities for New Reality Marketing
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15. 4. Dynamic Segmentation - frozen state segmentation belongs in the ice age Segmentation is most powerful when it addresses a specific problem. And as most businesses face many problems, segmentation must be multi-dimensional Segmentation isn’t just one approach – it is a tool set. Value Needs Product Behaviour Demographics Customer State Preference Credit Key Capabilities for New Reality Marketing
16. 5. Sell whilst you service Every touch point is an opportunity to progress customer relationships Enquire Purchase Welcome Bedding In Events Explore Retain Prospects Key Capabilities for New Reality Marketing
17. 6. Fact-based optimisation of marketing budgets - not guesswork Results Evaluation Objectives Resources Key Capabilities for New Reality Marketing Proposition Media/Channel Timing Customer/Prospect (hundreds) (multiple) (any day/ time) (thousands/ millions) Offer “A” Offer “B” £45,000 budget Product “C” Product “D” 25,000 volume Action “E” 10% ROI Action “F” 1,200 sales Minimum 32,000 leads 100,000 mail volume Contact frequency? Channel usage? Channel preference? Transaction trigger End of term Up-sell opportunity Competitor product renewal Recent contract Preference? Saturation? Wrong time? Missed opportunity?
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19. 8. Sequenced and integrated, closed loop consumer experience - for decisions and data capture across all channels Uninterested & rejecters Interested Enquirer On boarding Subscribe Establishment In Life Nursery Renew or Cancel Ex Customer Suspect-prospect-customer journey Value-based acquisition Actionable measurement of consumer dynamics Informed Interactions: Recognise, Remember, Value Differentiated propositions and flexible, reactive consumer strategies 4 1 3 2 Marketing ‘with memory’ Key Capabilities for New Reality Marketing
20. 9. Customer Intelligence not Management Information Insight is a business process supported by technology What has changed ? Why? What to do about it? What is driven by customer behaviour Vs organisation behaviour or process? What will happen? What is important? Key Capabilities for New Reality Marketing
21. 10. The customer-connected organisation Establish, and manage by, customer metrics Understand the organisational customer-value chain and manage the key levers of the customer process Get up-close and personal – data and market research are no substitute Key Capabilities for New Reality Marketing
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23. Marketing is more than just Advertising & Promotion Future-state marketing requires components from a number of disciplines Future-State Marketing Model CRM BI Advertising Marketing Technology Web Technology Consumer Insight & Data Credit Risk Retail Technology Marketing Capability
24. The New Reality Marketing Professional How do your marketing people measure up? Future-State Marketing Model Brand Advertising Direct Marketing NPD Sales Promotion Distribution Product Management Portfolio Management Customer Operations Credit Management Real-time Decisioning Data quality Technical enablers Analytics Predictive modelling Channel Marketing Marketing Transformation Performance Management Approved Skill Set
25. What are the options? It depends on your business model Frequency of Contact Strength Of Relationship Payment Risk Direct Indirect High Low Low High Future-State Marketing Model fmcg Direct Insurance Post-pay Mobile Retail Banking Pay TV Retailing Pre-pay mobile Utility Insurance Assurance
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27. Speed might well be the most critical factor Benefits of capability often lost due to slow implementation Return 0 Time + - Implementation Phase Cost outweighs benefits No competitive advantage Exploitation Window Benefits Realisation Competitive Advantage Atrophy Phase Benefits wear-out Competitors catch -up What are the options?
28. The key questions to consider What is really my core ? What is my true cost of ownership? Where do I get my competitive advantage? What are the options? Press Print TV Retail Mobile Radio Viral Call centre Web Outdoor Product Development Performance Management Media Channels Decision Support Propositions Product Management Strategy Margin Management Offer Development Brand Philosophy Portfolio Strategy Internal Marketing Brand Model Customer Intelligence Market Intelligence Competitor Intelligence Business Intelligence Messaging Pricing Resource Management Campaign Planning Budget Management Channel Management Campaign Management Content Management Email BI Marketing Technology Research Services Brand Consulting Strategy Consulting NPD Services Creative services Research Services Data Services BI Marketing Tech Creative Services CRM Web Tech POS Tech Media Buying Database Tech Database Tech Database Tech Database Tech Database Tech