1. Any use of this material without specific permission of McKinsey & Company is strictly prohibited
McKinsey Insights & Publications webinar | February 20, 2015
Five keys to unlocking growth
in marketing’s “golden age”

2. McKinsey & Company | 1@McKinsey @McK_MktgSales #McKGrowth
New trends shaping marketing today
Consumer
power
Explosion
of digital
Fragmentation
Always on Personalization
Data, data,
data!
1
0
0
1
1
0
Personalization

3. McKinsey & Company | 2@McKinsey @McK_MktgSales #McKGrowth
This is the dawn of
a new golden age
of marketing
McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 2

4. McKinsey & Company | 3@McKinsey @McK_MktgSales #McKGrowth
Science
StorySpeed
Simplicity Substance
The 5 S’ of the new golden age

5. McKinsey & Company | 4@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 4
“The beauty of marketing today is
that we can really show the return.
The data allows us to demonstrate
impact in a much more transparent
way than in the past.”
Lorraine Twohill, Senior VP for Global
Marketing, Google
Science

6. McKinsey & Company | 5@McKinsey @McK_MktgSales #McKGrowth
Science
Better decisions to
increase impact
$200 billion opportunity

7. McKinsey & Company | 6@McKinsey @McK_MktgSales #McKGrowth
Science: Better decisions to increase impact
Avg. profit
for promoted
products up
288%
Retail company

8. McKinsey & Company | 7@McKinsey @McK_MktgSales #McKGrowth
Science: Better decisions to increase impact
International industry player
100,000
price points reset
500 SKUs
1.3 million transactions
Analyticalrendering

9. McKinsey & Company | 8@McKinsey @McK_MktgSales #McKGrowth
Science: Better decisions to increase impact
vs.
Art Science
Wrong debate

10. McKinsey & Company | 9@McKinsey @McK_MktgSales #McKGrowth
Science: Better decisions to increase impact
Art Science
Wrong answer

11. McKinsey & Company | 10@McKinsey @McK_MktgSales #McKGrowth
Art Science Craft
Science: Better decisions to increase impact

12. McKinsey & Company | 11@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 11
Substance
“Look what [luxury brands] are
doing: they’re building flagship
stores that are beautiful, where
you actually like to just browse
around before you buy. Those
are emotional places.”
Ola Källenius, Board of Management
of Daimler AG

13. McKinsey & Company | 12@McKinsey @McK_MktgSales #McKGrowth
Substance
Moving beyond
messaging to shape
the substance of
business

14. McKinsey & Company | 13@McKinsey @McK_MktgSales #McKGrowth
Differentiation
Substance: Shaping substance of business
Products Services Experiences

15. McKinsey & Company | 14@McKinsey @McK_MktgSales #McKGrowth
Substance: Shaping substance of business
Energy company
Customer
onboarding
7 steps
2 steps

16. McKinsey & Company | 15@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 15
Story
“It’s not [all data]! … If you fall
down on the art, if you fail on the
messaging and storytelling, all
that those tools will get you are a
lot of bad impressions.”
Lorraine Twohill, Senior VP for Global
Marketing, Google

17. McKinsey & Company | 16@McKinsey @McK_MktgSales #McKGrowth
Story: Better storytelling for emotional connection
What makes a good
story hasn’t changed.
HOW to tell one has.

18. McKinsey & Company | 17@McKinsey @McK_MktgSales #McKGrowth
Old story telling BRAND
New story telling BRAND
Story: Better storytelling for emotional connection

19. McKinsey & Company | 18@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 18
Speed
“Speed comes from decentrali-
zation and creating a local
autonomy to take local action.”
CMO, Consumer goods company

20. McKinsey & Company | 19@McKinsey @McK_MktgSales #McKGrowth
Speed
A culture of urgency
has placed emphasis
on speed and agility

21. McKinsey & Company | 20@McKinsey @McK_MktgSales #McKGrowth
Speed: A culture of urgency to keep up with consumers
From To
Batch processing
Command and control
Manual
Slow development
Continuous delivery
Agile
Automated
Real-time test & learn

22. McKinsey & Company | 21@McKinsey @McK_MktgSales #McKGrowth McKinsey & Company |@McKinsey @McK_MktgSales #McKGrowth 21
Simplicity
“The growing complexity is
unmanageable: in-house vs.
external partners, established
channels vs. new channels. We
need help to get through this jungle.”
CMO, Consumer goods company

23. McKinsey & Company | 22@McKinsey @McK_MktgSales #McKGrowth
Simplicity: Simplify to execute
Speed and agility
require relentlessly focusing
on simple

24. McKinsey & Company | 23@McKinsey @McK_MktgSales #McKGrowth
Complexity kills
Expanding
geographic
footprints
Product and
channel
proliferation
Digital and
technology
specializations
Hierarchies,
silos, gaps,
redundancies
Simplicity: Simplify to execute

25. McKinsey & Company | 24@McKinsey @McK_MktgSales #McKGrowth
Complex: Disparate HQs and teams
Simplified: Single team
mapped to customer
ourney
Consistent brand experience
Simplicity: Simplify to execute
Daimler
Customer
journey
Before
After

26. McKinsey & Company | 25@McKinsey @McK_MktgSales #McKGrowth
The most important questions to ask
Speed
Faster than our competitors or slower?
Simplicity
Simplifying processes or overwhelming with new things?
Story
Making connections or speaking into space?
Substance
Differentiated experience or “me-too” selling?
Science
Today’s insights or yesterday’s facts?

27. McKinsey & Company | 26@McKinsey @McK_MktgSales #McKGrowth
www.youtube.com/McKinseyCMSOForum
@McK_MktgSales
McKinseyonMarketingandSales.com
@JeskoPerrey
Jesko Perrey
Senior Partner and
Global Knowledge
Leader of McKinsey's
Marketing & Sales
Practice
Jonathan Gordon
Leader of McKinsey's
Marketing & Brand
Strategy Practice
McKinsey on Marketing & Sales
@JWGordon
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