www.trinityp3.com
Global Challenges for the CMO
• ALIGNMENT IS KEY
• PURPOSE IS SHIFTING
• PROCESS & PEOPLE IN UPHEAVAL
1. Marketing Investment Planning – how much is enough and where should it be placed?
• How much do you invest in Marketing?
• How is your marketing investment balanced appropriately?
2. Optimising ROI - how to drive efficiencies and deliver effectiveness?
• How can you leverage greater value for resources at your disposal?
• Can the global trends in multi-channel planning, and production decoupling offer greater value?
• How are you managing to increase quality of strategy, creative & execution?
• Why are each of your suppliers valued, and how do they create value for you?
3. Digital Disruption – what are the marketing mix and agency model impacts?
• How does your business strategy, customer journey & communications execution come together:
• Do you have too many digital & social suppliers or not enough?
4. Agency Strategic Alignment - which partnership mix will best deliver?
• How do you identify the right partners to take forward?
• Are you & your partners aligned by media they supply or by competency they bring?
• Are your suppliers part of a global or local network?
5. Creative outcomes for Commercial purpose - how do we inspire creative thinking that delivers impact?
• How does your business strategy, customer journey & communications execution come together?
• Do you have too many digital & social suppliers or not enough?
6. The pace of change will increase further - will it be exhilarating or exhausting for marketing & its agencies?
• Are your briefing & agency management processes keeping pace?
• Are you benchmarking yourself regularly enough?
• How will you buy evolving expertise in this new world?
7. Effective relationships & streamlined models - how will we know if we’re all reaching our potential?
• Is there a common purpose across all marketing teams & between agency partners?
• How are you monitoring, measuring & managing all your relationships?
• How do you compare against like advertisers & agency structures?
• What financial benefits can be derived from improvements?
Summary
The key to marketing effectiveness is threefold:
1. Align agency selection & remuneration directly with your business, customer & brand strategies
2. Improve marketing processes to drive better outcomes, not just reducing costs
3. Benchmarking costs & relationships regularly
2. marketing management consultants
Global Challenges for the CMO
ALIGNMENT IS KEY:
• 2013 Deloitte ASX200 Board
Effectiveness research shows
growth through digital
transformation is a risk
management issue for Boards
• The Australian Marketing
Institute says Marketing needs
to demonstrate itself as a driver
of growth and at the core of
corporate strategy realisation
value creation*
PROCESS PEOPLE IN UPHEAVAL:
• New customer purchase models
• Digital orientation
• Technology automation
• Reach or impact
• Agency roster complexity
• Agency competencies changing
• Media price or media value
• In-house or outsourced
PURPOSE IS SHIFTING:
• In a recent CMO survey by
Accenture, 7 in 10 CMOs
say marketing is changing
fundamentally
• 65% of CMOs say digital is
thread throughout the
company but only 7% say
they are leading edge at it
• In the same survey, 56% say
external partners are not
helping to transform the
marketing organisation* Marketing’s Role in the Boardroom, AMI 2013
3. marketing management consultants
How to remodel for the new economy?
“Successful leadership is not
about having all the answers
but about asking
the right questions.”
- Robert S. Kaplan,
Professor of Management,
Harvard University
4. marketing management consultants
1. Marketing Investment Planning
– how much is enough and where should it be placed?
How much do you invest in Marketing:
• What is it as a percentage of revenue I
should allocate, relative to the strategy, like
advertisers and the category?
• What are the KPIs that are aligned with
company strategy, customer, brand and
communications?
How is your marketing investment balanced
appropriately:
• What is you ration of production to creative
and media spend for each channel?
• How do your agencies and like advertisers
rate on this ratio, who spends most?
Half the money I spend
on advertising is wasted;
the trouble is I don't know
which half.”
JOHN WANAMAKER
5. marketing management consultants
2. Optimising ROI
- how to drive efficiencies and deliver effectiveness?
How can you leverage greater value for resources at
your disposal:
• Are you only managing for time resource efficiency
as a driver of ROI?
• Is the volume complexity of activity being rewarded
or are you incentivising desired outcomes?
• Can the global trends in multi-channel planning, and
production decoupling offer greater value?
• How are you managing to increase quality of
strategy, creative execution.
Why are each of your suppliers valued, and how do they
create value for you:
• Are they measured by activity or outcomes?
• Are they measured by shared marketing KPIs, EAVs
or sales leads created?
• Are you still only focussing on CPM or moved to
more targeted customer value measurements?
• Are they remunerated via Payment by Results?
6. marketing management consultants
3. Digital Disruption
– what are the marketing mix and agency model impacts?
How does your business strategy, customer journey
communications execution come together:
• Do you have the right number mix of agencies to
deliver the thinking execution?
• Which agency mix is best placed to deliver digital
social impact, effectiveness efficiency?
• How do you remunerate reward given multi channel
attribution issues? Is Payment by Results possible?
Do you have too many digital social suppliers or not
enough?
• Is there overlapping expertise competition for
budget?
• Which are now must have offerings in your agency
network which are optional?
• Where can you find more efficiency in your agency
mix?
7. marketing management consultants
4. Agency Strategic Alignment
- which partnership mix will best deliver?
How do you identify the right partners to take forward:
• Have you recently reviewed your needs through a 3S
framework – specialist, strategic and simple needs?
• Are you only focussing on rationalising your roster that
often result in reduced effectiveness?
Are you your partners aligned by media they supply or
by competency they bring:
• Where does multi-channel concept, creativity,
consolidation distribution happen?
• What is the right mix for your business – vertical,
horizontal or a hybrid solution?
• Are you duplicating creative concept fees?
Are your suppliers part of a global or local network:
• Who is sharing the revenue on each campaign?
• And do you get enough leverage in bonus media,
management time or creative talent?
8. marketing management consultants
5. Creative outcomes for Commercial purpose
- how do we inspire creative thinking that delivers impact?
Are your suppliers’ innovative:
• Do they bring new ideas to the table?
• Or do they take them elsewhere?
• And why?
What remuneration, training relationship
management systems can you use to inspire
creative thinking and drive innovation and
commercial value?
Are remuneration models and rate cards
rewarding the value of creative idea or paying for
costs by the hour?
How can you benchmark creative resource
strength and output for like advertisers?
9. marketing management consultants
6. The pace of change will increase further
- will it be exhilirating or exhausting for marketing its agencies?
Are your briefing agency management processes
keeping pace:
• Are you still defining the campaign output by
agency or delving into the customer landscape?
• Where is there inefficiency potential for
streamlining between agencies?
Are you benchmarking yourself regularly enough:
• Are your performance scorecards relevant?
• Are Rate Cards reflecting technology, competition
globalisation efficiencies?
How will you buy evolving expertise in this new world:
• Do you have a capability training plan in to
borrow expertise from specialists?
• How will you ensure maximum effectiveness
models are in place for media planning,
television, digital print production?
10. marketing management consultants
7. Effective relationships streamlined models
- how will we know if we’re all reaching our potential?
Is there a common purpose across all marketing
teams between agency partners?
How are you monitoring, measuring managing all
your relationships:
• What are your stakeholder views of strengths
improvement areas?
• What are the areas for process people
improvements
• Which agencies staff need attention?
How do you compare against like advertisers
agency structures?
What financial benefits can be derived from
improvements?
11. marketing management consultants
Summary
Much has changed in marketing with much more yet to
come:
• Customers are disrupting value chains
• Digital disruption is across channels, media, creative,
content, production techniques
• Agencies clients globally are reviewing
competencies and charging models
Marketing is an investment not an expense:
• Payment by results driving better business outcomes
is a new science
The key to marketing effectiveness is threefold:
1. Align agency selection remuneration directly with
your business, customer brand strategies
2. Improve marketing processes to drive better
outcomes, not just reducing costs
3. Benchmarking costs relationships regularly
5 years
ago
2013
Agency Strategic
Alignment
Multi-Channel
Payment by Results
Evolving Customer
Purchase Models
Agency
Engagement
Broadcast Media
BTL/Onlline
12. marketing management consultants
To discover how we deliver greater
marketing effectiveness, through
agency alignment efficiencies, contact:
TrinityP3 Pty Ltd
Sydney
+612 8399 0922
Melbourne
+613 9682 6800
Hong Kong
+852 3589 3095
Singapore
+65 6884 9149
people@trinityp3.com
www.trinityp3.com
@trinityp3
www.trinityp3.com/blog/
TrinityP3
Darren Woolley