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Challenges of
Integrated Marketing

Roger Adams




  Copyright 2010 Marketing Second Opinion LLC



                                                1
Background

 67% of Marketing Organizations Develop Integrated
  Programs
 33% are Happy with the Result (ANA Survey)
 #1 Issue at Present for Senior Leaders of Association of
  National Advertisers
 More Difficult Today: Fragmented Media, Consumer
  Generated Content,
  Newsletters
  and Reviews



                                                             2
Alignment is Key to Successful Integration


           CEO                                 CMO



         Company                            Marketing
          Goals                              Goals


        Deliverables - Must be Consistent and Distributed
          Across Key Stakeholders for Optimal Impact


   Marketing          Merchandising                 Store Ops
                          /Sales                            3
                                                                3
Marketing Can Lead Integration Provided There is an
Agreed to Business Objective, Vision, and Culture
                                    Business
                                 Objective, Vision
                                   and Culture


                             Marketing Objective
                                             Success             Functional
                           Plan                                Dependencies
   Customer              Elements           Criteria and
    Benefit                                   Metrics               and
                        and Budget                              Deliverables

                                                                Sales/Merchant
                          Media Plan      Source of Volume
 Define Target                                                 Store Ops
                          P.O.P.          ROI/ROO
 Point of Difference                                           IT
                          Creative        Total Expense
 Consumer Insight       Elements                               Finance
                                           Customer Metric
                                                                Outside Agencies

                                                                              4
Key Challenges Within Marketing
                    Different organizational structures/reporting
                     relationships/budgets: Applies to agencies as well
                    Lack of goal alignment
Organizational         Each department head optimizing own area
                       No shared objectives
                       Project often led by a specialist

                 Retail pressure to lead with tactics
   Cultural      No cultural priority for coordination: time demands easily
                 overwhelm
                 No training or process to enable integration

                 Strategic vision not articulated consistently down the
  Strategic      organization: No connection with day to day
                 Not enough “homework” up front on desired outcome
                 CMO not aligned with other senior leaders: Creates
 Leadership      execution issues and/or changes
                 No contingency plan or recovery time for
                 unexpected issues

                                                                          5
Common Disconnects when Integrating

  Interim direction or budget or operating plan compromises latest
    initiative (L.I.F.O. Risk).
  Different reporting relationships within marketing allow for silos of
    execution. Functional specialists create multiple disconnection points.
  Lack of consensus on evaluation metrics and time frame for success
    facilitates change while in progress.
  New media channels operate independently. Lead times of traditional
    media not comprehended up front.
  Lack of integration with sales/stores causes suboptimal execution.
  Long-term commitments or partnerships are not able to be coordinated
    or not coordinated in time.
  Lack of integration competence that requires training and modeling



                                                                              6
Key Marketing Functions & Accountabilities
  Consumer          Trends Issues & Opportunities
 Insights and       Consumer segments
   Analytics        Competitive analysis
                    Identification of value proposition

                 Assessing and improving brand image
    Brand        Maintaining consistency in look, tone, feel, and
                 promise of each format or service

                 Leadership of all aspects of communications
Communications   (Print, Radio, Television, Web

                 Expertise in maximizing short-term sales via events
  Promotion      and promotions and CRM
                 Responsible for ROI measurement and tracking as
                 well as creative development

    Sales        Coordination of annual marketing plans to
                 deliver division goals

                                                                    7
Key Marketing Functions & Accountabilities
                Managing direct selling assets to maximize
eCommerce        sales online and offline


               May be done jointly with or by Finance
 Forecasting   Use trend data and ROI models to forecast
                demand and marketing response

               Identify and evaluate new product and
                 service concepts
New Products   Develop innovative offerings that take advantage
                 of emerging trends
               Thought leadership that enhances delivery of value to
                 the customer and meets financial guidelines
  Planning     Customer advocate for store and merchant plans




                                                                  8
Integration has many benefits
•   Improves ROI by coordinating efforts
•   Cuts Waste
•   Identifies executional problems before in market
•   Leverages best practices/ avoids previous mistakes



However, there is no substitute for experience when implementing

•   Avoid common executional issues
•   Helps secure support from other functions
•   Leverages best practices.
•   Speeds time to benefit realization

Contact us at: info@MarketingSecondOpinion.net
                www.MarketingSecondOpinion.net




                                                                   9

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Thoughts On Integrated Marketing

  • 1. Challenges of Integrated Marketing Roger Adams Copyright 2010 Marketing Second Opinion LLC 1
  • 2. Background  67% of Marketing Organizations Develop Integrated Programs  33% are Happy with the Result (ANA Survey)  #1 Issue at Present for Senior Leaders of Association of National Advertisers  More Difficult Today: Fragmented Media, Consumer Generated Content, Newsletters and Reviews 2
  • 3. Alignment is Key to Successful Integration CEO CMO Company Marketing Goals Goals Deliverables - Must be Consistent and Distributed Across Key Stakeholders for Optimal Impact Marketing Merchandising Store Ops /Sales 3 3
  • 4. Marketing Can Lead Integration Provided There is an Agreed to Business Objective, Vision, and Culture Business Objective, Vision and Culture Marketing Objective Success Functional Plan Dependencies Customer Elements Criteria and Benefit Metrics and and Budget Deliverables  Sales/Merchant  Media Plan  Source of Volume  Define Target  Store Ops  P.O.P.  ROI/ROO  Point of Difference  IT  Creative  Total Expense  Consumer Insight Elements  Finance  Customer Metric  Outside Agencies 4
  • 5. Key Challenges Within Marketing  Different organizational structures/reporting relationships/budgets: Applies to agencies as well  Lack of goal alignment Organizational  Each department head optimizing own area  No shared objectives  Project often led by a specialist Retail pressure to lead with tactics Cultural No cultural priority for coordination: time demands easily overwhelm No training or process to enable integration Strategic vision not articulated consistently down the Strategic organization: No connection with day to day Not enough “homework” up front on desired outcome CMO not aligned with other senior leaders: Creates Leadership execution issues and/or changes No contingency plan or recovery time for unexpected issues 5
  • 6. Common Disconnects when Integrating  Interim direction or budget or operating plan compromises latest initiative (L.I.F.O. Risk).  Different reporting relationships within marketing allow for silos of execution. Functional specialists create multiple disconnection points.  Lack of consensus on evaluation metrics and time frame for success facilitates change while in progress.  New media channels operate independently. Lead times of traditional media not comprehended up front.  Lack of integration with sales/stores causes suboptimal execution.  Long-term commitments or partnerships are not able to be coordinated or not coordinated in time.  Lack of integration competence that requires training and modeling 6
  • 7. Key Marketing Functions & Accountabilities Consumer  Trends Issues & Opportunities Insights and  Consumer segments Analytics  Competitive analysis  Identification of value proposition Assessing and improving brand image Brand Maintaining consistency in look, tone, feel, and promise of each format or service Leadership of all aspects of communications Communications (Print, Radio, Television, Web Expertise in maximizing short-term sales via events Promotion and promotions and CRM Responsible for ROI measurement and tracking as well as creative development Sales Coordination of annual marketing plans to deliver division goals 7
  • 8. Key Marketing Functions & Accountabilities  Managing direct selling assets to maximize eCommerce sales online and offline May be done jointly with or by Finance Forecasting Use trend data and ROI models to forecast demand and marketing response Identify and evaluate new product and service concepts New Products Develop innovative offerings that take advantage of emerging trends Thought leadership that enhances delivery of value to the customer and meets financial guidelines Planning Customer advocate for store and merchant plans 8
  • 9. Integration has many benefits • Improves ROI by coordinating efforts • Cuts Waste • Identifies executional problems before in market • Leverages best practices/ avoids previous mistakes However, there is no substitute for experience when implementing • Avoid common executional issues • Helps secure support from other functions • Leverages best practices. • Speeds time to benefit realization Contact us at: info@MarketingSecondOpinion.net www.MarketingSecondOpinion.net 9