This Facebook spoof encompasses a useful lesson. If you bother truly to visualise your customers' experience and do so in as exaggerated way as you dare, you may get a feel for what you could be doing wrong.
Saturday, December 29, 2007
Friday, December 28, 2007
If You Don't Care, Why Should They?
My one prediction of 2008 is that Juno will be in your top ten list of best movies, so imagine my exasperation when the first TV spot I saw was in the middle of sports programming.
What made someone think that the mindset of the audience for live horse-racing would chime with that for a sharp youth-oriented movie that's garnering awards wherever it goes?
I know media buying is replete with deals, but the thinking here can only be that of relatively cheap TV exposure and that is box-ticking of the worst sort. If you can't afford more relevant spots, then spend the money in another way rather than do something that shows disdain for the audience and, even worse, disdain for what you're marketing.
What made someone think that the mindset of the audience for live horse-racing would chime with that for a sharp youth-oriented movie that's garnering awards wherever it goes?
I know media buying is replete with deals, but the thinking here can only be that of relatively cheap TV exposure and that is box-ticking of the worst sort. If you can't afford more relevant spots, then spend the money in another way rather than do something that shows disdain for the audience and, even worse, disdain for what you're marketing.
Thursday, December 27, 2007
The Rigidity Of The Geeks.
Over the past few days, the blogosphere has largely reverted to its primordial incarnation as the playground of the geeks. There have been interesting debate and wonderful acts of humanity not to mention all manner of prescriptive projections of future human behaviour (predicated upon technology of course).
However, my ultimate take-away has been a reminder of the rigidity of geek thinking. Perhaps it’s down to their technical detail-orientation, but it’s remarkable to see the virulent reaction of a geek to another person’s argument if it doesn’t correlate exactly with their own worldview.
As we move toward marketing 2.0 or the new marketing, the lesson, of course, is that despite their volume, the geeks are not the majority. There’s a lot of inspiration to be gleaned and ideas to be considered, but it’s not the early adopters who ultimately shape the future. It’s the people who use stuff who do that.
However, my ultimate take-away has been a reminder of the rigidity of geek thinking. Perhaps it’s down to their technical detail-orientation, but it’s remarkable to see the virulent reaction of a geek to another person’s argument if it doesn’t correlate exactly with their own worldview.
As we move toward marketing 2.0 or the new marketing, the lesson, of course, is that despite their volume, the geeks are not the majority. There’s a lot of inspiration to be gleaned and ideas to be considered, but it’s not the early adopters who ultimately shape the future. It’s the people who use stuff who do that.
Friday, December 21, 2007
Sprouts As Social Objects.
Ask people to name their most hated vegetable and it's generally agreed that the answer will be sprouts, yet annual sprout sales in the UK are worth £35m. That's allegedly 47,000,000 units of distress purchase and judging by the supermarket tonight, most of them are bought this week.
It's not the season of masochism, so why the paradoxical behaviour? Because people have bought a story that convinces them that sprouts say Christmas like no other vegetable. Because people can joke about them and because people see other people doing it.
Thursday, December 20, 2007
The Marketing Operations Function - Can we Maintain the Momentum?
I first studied the rise of the marketing operations (MO) function early in 2005; and MO professionals and teams have made significant progress since then. However, much work still remains; and the momentum of marketing operations leaders' strategic impact is at risk of being lost at many organizations. Here are some key findings/insight from my 3rd annual study of the MO function to help ensure the continued success of this important role in the marketing organization:
1. Make the case for an MO function that reports to the CMO if you haven't already, and leverage IDC research to justify staffing levels for this function. Based upon IDC's Marketing Performance Matrix, 90% of companies in the Marketing Leadership quadrant have one; and your position and your marketing organization's success depends upon the strategic planning and process discipline that this role brings to the table. IDC's overall guidance or "rule of thumb" for staff allocation to the MO function is 2–4% of total marketing staff and one MO staff person for every $10 million to $15 million of marketing budget.
2. Know your CMO's priorities. To ensure that the marketing operations team remains highly relevant and successful at a strategic as well as a tactical level, its objectives and priorities must be in alignment with the needs of the CMO. The more advanced MO teams will help to identify these priorities for the CMO.
3. Maintain Your Team's Focus on your Top Priorities. More and more MO teams are becoming overwhelmed with the quantity of projects that they're involved with, resulting in a loss of focus; which is impacting their efficiency and effectiveness. Be realistic about your goals, and focus on the areas where you can make the greatest impact in your organization in the short-term while laying the foundation for longer term efforts.
4. Drive the MO team towards continuous improvement and innovation. This may include improving existing processes or acting as the catalyst for development and execution of new, innovative ideas.
Want more information on this role? Feel free to send me an email at mgerard@idc.com and I'll be glad to share some of the results of this study with you.
1. Make the case for an MO function that reports to the CMO if you haven't already, and leverage IDC research to justify staffing levels for this function. Based upon IDC's Marketing Performance Matrix, 90% of companies in the Marketing Leadership quadrant have one; and your position and your marketing organization's success depends upon the strategic planning and process discipline that this role brings to the table. IDC's overall guidance or "rule of thumb" for staff allocation to the MO function is 2–4% of total marketing staff and one MO staff person for every $10 million to $15 million of marketing budget.
2. Know your CMO's priorities. To ensure that the marketing operations team remains highly relevant and successful at a strategic as well as a tactical level, its objectives and priorities must be in alignment with the needs of the CMO. The more advanced MO teams will help to identify these priorities for the CMO.
3. Maintain Your Team's Focus on your Top Priorities. More and more MO teams are becoming overwhelmed with the quantity of projects that they're involved with, resulting in a loss of focus; which is impacting their efficiency and effectiveness. Be realistic about your goals, and focus on the areas where you can make the greatest impact in your organization in the short-term while laying the foundation for longer term efforts.
4. Drive the MO team towards continuous improvement and innovation. This may include improving existing processes or acting as the catalyst for development and execution of new, innovative ideas.
Want more information on this role? Feel free to send me an email at mgerard@idc.com and I'll be glad to share some of the results of this study with you.
Worldviews.
Where else in the world would an atheist comedian and the head of an international religion overlap in a radio show, chat without interruption from the host and be recorded on webcam? The BBC can still be remarkable.
Wednesday, December 19, 2007
Gorilla Update.
Campaign magazine's 2007 round-up awards campaign of the year to the Gorilla and reports 9% year on year increase in weekly sales - (in October I assume) though as I said before the June 2006 weekly sales were down 25% due to the salmonella scare.
The same magazine also brings home to me how many smart people I've got to know this year and credits many of them with both great blogs and actual work too. Trebles all round!
The same magazine also brings home to me how many smart people I've got to know this year and credits many of them with both great blogs and actual work too. Trebles all round!
Monday, December 17, 2007
Something From My Comments.
Lazy blogging I know, but I wanted to share comments I contributed to two interesting debates on other blogs recently.
Marketing isn't any harder than it used to be - it's just that people forgot that it centres upon product development and meeting customer needs and instead got obsessed with pretty words like branding which is all too often skin-deep rather than a reflection of the DNA of a business. No marketing isn't harder, but getting away with sub-standard behaviour very definitely is. (Collaborate Marketing)
It’s a myth that most categories are commodified - a myth perpetrated by arty agencies who want to pad their book rather than be a little dull and focus on product attributes. (The Kaiser Edition)
Marketing isn't any harder than it used to be - it's just that people forgot that it centres upon product development and meeting customer needs and instead got obsessed with pretty words like branding which is all too often skin-deep rather than a reflection of the DNA of a business. No marketing isn't harder, but getting away with sub-standard behaviour very definitely is. (Collaborate Marketing)
It’s a myth that most categories are commodified - a myth perpetrated by arty agencies who want to pad their book rather than be a little dull and focus on product attributes. (The Kaiser Edition)
Friday, December 14, 2007
Fourth Wall Marketing.
Watching the magnificent Tinariwen the other night, I realised that
here were visually spectacular and musically dynamic performers having a real problem in breaking the fourth wall between stage and audience.
This was largely because they are a group of Touareg bedouins from Mali who collectively speak very little english. They had a few stock phrases and meant them sincerely but inevitably it wasn't continuous, it wasn't a real connection.
The breakthrough came when the previously seated drummer walked to the edge of the stage both to play and encourage a typically passive white european audience. The wall was well and truly broken, but it reminded me that you have to very actively make the connection with your audience even if they've already given you permission to excite them.
Think of your marketing efforts in terms of performance and audience and you'll quickly see the tactics that will fall flat and you will save yourself a lot of wasted effort.
Wednesday, December 12, 2007
Cadbury Gorillas In Our Midst.
Cadbury Schweppes raised forecasts for its confectionery business, saying that revenue at the division would increase more than 6 per cent this year. In some circles this is already being attributed to the gorilla ad. Well let's just think about some other contributory factors.
Sales of Wispa have grown from zero to 20 million since October.
Trident and Stride gum have gained a 35% US market share.
The summer of 2007 was much cooler than 2006.
The proof of the ad's effectiveness will lie in the performance of sales of Cadbury's Dairy Milk chocolate and that has not yet been itemised anywhere that I have seen. And when they are, we must remember to factor in the inevitable rebound that would have occurred following the rectifying of the summer salmonella incident which led to a 25% slump in sales in June. The relevant comparison for effectiveness purposes will be the sales trend before that slump.
None of this is to say that the ad hasn't been highly effective as well as popular. it's just a reminder that the measurement of any marketing ROI must be done rigorously or we're just deluding ourselves.
Sales of Wispa have grown from zero to 20 million since October.
Trident and Stride gum have gained a 35% US market share.
The summer of 2007 was much cooler than 2006.
The proof of the ad's effectiveness will lie in the performance of sales of Cadbury's Dairy Milk chocolate and that has not yet been itemised anywhere that I have seen. And when they are, we must remember to factor in the inevitable rebound that would have occurred following the rectifying of the summer salmonella incident which led to a 25% slump in sales in June. The relevant comparison for effectiveness purposes will be the sales trend before that slump.
None of this is to say that the ad hasn't been highly effective as well as popular. it's just a reminder that the measurement of any marketing ROI must be done rigorously or we're just deluding ourselves.
Tuesday, December 11, 2007
Secondary Segmentation.
In our commodified world there are huge numbers of product categories that the majority of people consume. If you're competing in those markets, it makes little sense to focus on the traditional socio-demographic divisions. That's what everybody does.
You have a great number of potential customers out there so why not choose your own demographic within that mass market and speak to them about your product. Focus on what they do beyond being consumers within your product category. For example - most people drink beer, so focus on gardeners who drink. That way you can generate small but deeper engagements, lengthening attentions spans and true loyalty.
And you don't have to limit yourself to just one of these secondary segments - you can approach as many as you like via a variety of messaging that is linked by a consistent tone of voice. Become niche marketers of a commodity category and you are assured of talking to potential customers. If you just pursue a niche market, there may not be any customers in it.
You have a great number of potential customers out there so why not choose your own demographic within that mass market and speak to them about your product. Focus on what they do beyond being consumers within your product category. For example - most people drink beer, so focus on gardeners who drink. That way you can generate small but deeper engagements, lengthening attentions spans and true loyalty.
And you don't have to limit yourself to just one of these secondary segments - you can approach as many as you like via a variety of messaging that is linked by a consistent tone of voice. Become niche marketers of a commodity category and you are assured of talking to potential customers. If you just pursue a niche market, there may not be any customers in it.
Monday, December 10, 2007
Swimming Against The Current.
All the people at my local gym would say they go there to improve their health. But they all do so in different ways and the most intriguing group to me is the non-athletic ones who believe they are undertaking an exercise regime. In fact, they stand around in the pool declaring that swimming is the only exercise their doctor will allow them to do, before slouching off to the jacuzzi or sauna. Actual exercise undertaken - minimal.
While debating the value of focus groups in the comments of Northern Planner's excellent series of practical advice, he raised a great point about the importance of paying attention to what people don't say as much as what they do say. Thus when people say they go to the gym regularly, they are not actually saying that they exercise.
Everyone can hear what is being said and see what is being done, but the interesting stuff is always found in the spaces between the assumptions.
Friday, December 7, 2007
Keep It Simple.
Riders for Health is a charity that ensures healthcare workers can reach African villages on a regular basis by supplying them with motorcycles and pick-ups and, crucially, ensuring that they work. According to the article I read, they do this by operating,
a system of preventive maintenance that would shame any British rail operator. Spark plugs are changed before they stop sparking. Cylinders are re-bored before they seize up. Money permitting, vehicles are replaced before they break down unexpectedly, and no health worker climbs onto his or her motorbike without giving it a once-over worthy of an airline pilot. This means ambulances work, travelling clinics travel, and every community health nurse with “outreach” responsibilities for rural villages has a sturdy Japanese motorbike to take them there.
In other words, they focus on the true customer needs (in Gambia, for example, 60% of healthcare is delivered to patients rather than vice versa), anticipate problems rather than react to them and see flashy gestures as the waste of time and resources they really are.
Back in Bansang, the health ministry’s Toyota Hilux pick-up operates from a vehicle depot strewn with the rusting, overgrown legacy of a decade of costly and ultimately doomed initiatives: 21 Land Rovers and Land Cruisers emblazoned with grand aims and proud sponsors’ logos (the “BUPA Kadang Heath Services Rapid Response Vehicle”; a six-vehicle fleet for the “Elimination of Neonatal Tetanus in Africa by the Year 1995”), all kneeling in the dirt on tyreless rims, all useless. One Land Rover has a pumpkin growing from its bonnet. The Hilux, by contrast, has 222,183km on its clock and every prospect of accumulating more.
By doing so, they make themselves appear all the more impressive.
a system of preventive maintenance that would shame any British rail operator. Spark plugs are changed before they stop sparking. Cylinders are re-bored before they seize up. Money permitting, vehicles are replaced before they break down unexpectedly, and no health worker climbs onto his or her motorbike without giving it a once-over worthy of an airline pilot. This means ambulances work, travelling clinics travel, and every community health nurse with “outreach” responsibilities for rural villages has a sturdy Japanese motorbike to take them there.
In other words, they focus on the true customer needs (in Gambia, for example, 60% of healthcare is delivered to patients rather than vice versa), anticipate problems rather than react to them and see flashy gestures as the waste of time and resources they really are.
Back in Bansang, the health ministry’s Toyota Hilux pick-up operates from a vehicle depot strewn with the rusting, overgrown legacy of a decade of costly and ultimately doomed initiatives: 21 Land Rovers and Land Cruisers emblazoned with grand aims and proud sponsors’ logos (the “BUPA Kadang Heath Services Rapid Response Vehicle”; a six-vehicle fleet for the “Elimination of Neonatal Tetanus in Africa by the Year 1995”), all kneeling in the dirt on tyreless rims, all useless. One Land Rover has a pumpkin growing from its bonnet. The Hilux, by contrast, has 222,183km on its clock and every prospect of accumulating more.
By doing so, they make themselves appear all the more impressive.
Wednesday, December 5, 2007
Juno.
Having already told you about the magnificence of Ellen Page, I make no apologies for repeating the message. Last night, I got the chance to see a screening of her latest movie Juno which, I believe, opens tomorrow in NY and LA and around the world early next year. My review is as follows - go see it.
The production notes point out that the movie is ultimately about relationships between people who would not normally meet or who indeed might be isolated from each other by prejudice and status. The parallels with the connectivity of the online world are obvious and coincidentally (or not) the screenwriter Diablo Cody is herself a blogger.
That may explain why the script is so sharp, tight and funny - so much so that you miss some jokes because of the unsubsiding laughter from the previous line. Juno is one of the best movies you will see all year.
See! I do like some things. Normal service will be resumed tomorrow.
Tuesday, December 4, 2007
London Calling.
Anyone considering visiting London will no doubt be fascinated to know that "45,460 litres of urine is at risk of ending up in the city's streets and alleyways through irresponsible and anti-social behaviour."
Their proposed solution? "Sat-Lav" - an SMS service for which you pay a subsidised 25p to receive a text that tells you the nearest location with opening times.
Yet another example of the public sector acting without thinking and presuming behaviours that have no correlation with reality. There's no mention of co-ordinating times and locations, so you're quite likely to be sent information of a closed convenience and there's no thought given to changing attitudes - just an assumption that people will use the service.
But hey, it's got a cute name and justifies a council-sponsored "innovation" competition, so that's alright then.
Monday, December 3, 2007
Can Advertising Save Web 2.0?
The viability of the online advertising model (i.e. non search-based) upon which so many 2.0 companies are relying on has always worried me. But I had no data to back this up. However, Danah Boyd has come to the rescue with this post that highlights this research.
It confirms that my habit of never having clicked on an online ad is very much the majority behaviour and Danah makes an interesting moral point about online advertisers potentially being seen as exploitative of the less well-off. I wonder too if this will affect them in the eyes of offline consumers who will not want to be associated with "down-market" brands?
More than that, while I'm not expecting the demise of Facebook, it is interesting to parse these findings with Danah's earlier report about the class differentials between MySpace and Facebook users. Might that not suggest that Facebook's audience are much more likely to be among the non-clicking majority? If it does, then their revenue estimates might be under threat.
Some will rightly retort that onlne advertising can be used for brand-buidling rather than click-through, but that too has yet to be proven and surely falls prey to the avoidance culture that effects all advertising (as eye-tracking evidence is beginning to show). Interesting times.
It confirms that my habit of never having clicked on an online ad is very much the majority behaviour and Danah makes an interesting moral point about online advertisers potentially being seen as exploitative of the less well-off. I wonder too if this will affect them in the eyes of offline consumers who will not want to be associated with "down-market" brands?
More than that, while I'm not expecting the demise of Facebook, it is interesting to parse these findings with Danah's earlier report about the class differentials between MySpace and Facebook users. Might that not suggest that Facebook's audience are much more likely to be among the non-clicking majority? If it does, then their revenue estimates might be under threat.
Some will rightly retort that onlne advertising can be used for brand-buidling rather than click-through, but that too has yet to be proven and surely falls prey to the avoidance culture that effects all advertising (as eye-tracking evidence is beginning to show). Interesting times.
Friday, November 30, 2007
Listening And Learning?
Three marketing tenets and three quotes from a New York Times article.
1) The customer/user is the raison d'etre of any business.
“Whenever we innovate and create great new experiences and new features, if they are not well understood at the outset, one thing we need to do is give people an opportunity to interact with them,” said Chamath Palihapitiya, a vice president at Facebook. “After a while, they fall in love with them.”
2) The customer/user dislikes and avoids marketing interruptions.
Facebook executives say the people who are complaining are a marginal minority. With time, Facebook says, users will accept Beacon, which Facebook views as an extension of the type of book and movie recommendations that members routinely volunteer on their profile pages.
3) The customer/user decides what is right for them.
Late yesterday the company made an important change, saying that it would not send messages about users’ Internet activities without getting explicit approval each time.
1) The customer/user is the raison d'etre of any business.
“Whenever we innovate and create great new experiences and new features, if they are not well understood at the outset, one thing we need to do is give people an opportunity to interact with them,” said Chamath Palihapitiya, a vice president at Facebook. “After a while, they fall in love with them.”
2) The customer/user dislikes and avoids marketing interruptions.
Facebook executives say the people who are complaining are a marginal minority. With time, Facebook says, users will accept Beacon, which Facebook views as an extension of the type of book and movie recommendations that members routinely volunteer on their profile pages.
3) The customer/user decides what is right for them.
Late yesterday the company made an important change, saying that it would not send messages about users’ Internet activities without getting explicit approval each time.
The Web 2.0 Business Conundrum.
1) Founders have a cheap, clever idea.
2) People use the idea because it meets a need, is free and uninterrupted.
3) Founders focus on serving their growing audience better.
4) Moneymen swarm around.
5) Founders claim that business model will emerge.
6) Sales organisations flock to the idea in order to exploit it for their ends.
7) Founders decide that advertising must be the business model.
8) Users begin to resent changes and fail to provide revenue.
9) Founders realise traditional tactics don't apply in a disrupted world.
10) ?????
2) People use the idea because it meets a need, is free and uninterrupted.
3) Founders focus on serving their growing audience better.
4) Moneymen swarm around.
5) Founders claim that business model will emerge.
6) Sales organisations flock to the idea in order to exploit it for their ends.
7) Founders decide that advertising must be the business model.
8) Users begin to resent changes and fail to provide revenue.
9) Founders realise traditional tactics don't apply in a disrupted world.
10) ?????
Thursday, November 29, 2007
Whose Bag Is It Anyway?
Last weekend, Sainsbury's supermarkets gave away the reusable bags they normally charge for in the hope of encouraging customers to reduce their use of plastic bags. Today, I noticed a woman using them to carry her shopping from one of their rivals.
I wondered how many other shoppers noticed and thought better of Sainsbury's as a result? I wondered if the rival's staff noticed and thought about doing something similarly positive? Coincidentally, (courtesy of today's passiveaggressivenotes), I wonder why anyone would think this would be an appropriate response and why it's the stance being taken in so many industries?
Addendum: To clarify - do you see a customer advertising the competition or do you see a customer?
I wondered how many other shoppers noticed and thought better of Sainsbury's as a result? I wondered if the rival's staff noticed and thought about doing something similarly positive? Coincidentally, (courtesy of today's passiveaggressivenotes), I wonder why anyone would think this would be an appropriate response and why it's the stance being taken in so many industries?
Addendum: To clarify - do you see a customer advertising the competition or do you see a customer?
Wednesday, November 28, 2007
The Obligatory Facebook Post.
Facebook digitised college connectivity
Acquired lots of users
Collected lots and lots of data
Extended its reach
Became a media darling
Opened up its API
Overdid its applications
Knows it's at a crossroads.
Acquired lots of users
Collected lots and lots of data
Extended its reach
Became a media darling
Opened up its API
Overdid its applications
Knows it's at a crossroads.
Top Ten Attributes of a World Class Tech Mktg. Org.
The archetype of the world class tech marketing organization, Top Ten characteristics:
1) The senior-most marketing leader is viewed as a being a business-person by the CEO or COO or equivalent.
2) The senior-most marketer is perceived by the other peer-level direct reports to have equal weight and reporting status in the politics and influence of overall management.
3) If it is primarily a B2B tech vendor, the senior-most marketer has an especially productive and collaborative relationship with the senior-most Sales exec.
4) The marketing organization has a good grasp of its "marketing business model"; that is, what are the ingrained programs, practices, etc. that represent the foundation to the company's marketing platform. There is an annual "rhythm" to this marketing business model so that there is a good sense, across the marketing team, of a solid operating pattern. In other words, the team does not feel as if the marketing strategy changes frequently and is the "flavor of the month".
5) In addition to the foundation of this marketing business model, there is also the room, the operating space, to try new marketing initiatives. These should be one or two (at the most) major initiatives that are tested and tried during the year, lead by the CMO.
6) There is a good balance to the art plus the science of marketing. The foundational elements of the marketing business model should be ingrained enough so that there is a steady and relevant stream of performance metrics that can be driven out of the activity. To the extent that the CMO is able to produce and manage towards these metrics for the core activities, he/she will be allowed more latitude for creating and testing new activities - which by definition will be hard to apply the science to at the beginning.
7) There is good attention to the marketing operations aspects. The marketing organization is right-sized; it is balanced appropriately for the resources and activities that are at corporate vs. elsewhere. There is good attention to budgets(marketing's managerial accounting process); a strong marketing performance measurement process; marketing's short-term and long-term technology needs; and there is enough awareness and circumspection about the marketing budget and the overall company income statement that the CMO, if requested, can with-stand a budget reduction while still being able to keep the core elements of the marketing business model in place and productive.
8) There is a strong marketing staff and constant attention to improving staff caliber and building skill sets.
9) The CMO and staff have a good grasp of the marketplace wants/needs; key industry trends that impact the work; and key competitors and trends. All this is indicative of good "outside-in" marketing and will help the marketing team to be perceived as business people that can credibly represent the voice of the customer within the organization. (for marketing, sales and product development/innovation)
10) The marketing function is perceived within the organization as a good place to work; a function where careers can be built; a function that has a high bar for job entry.
I could go on, but those are the top ten.
How long could it take? Depends on what you are starting with. If rock-bottom is the basis, it could take 2-3 years.
By Rich Vancil, VP Executive Advisory Group, IDC
1) The senior-most marketing leader is viewed as a being a business-person by the CEO or COO or equivalent.
2) The senior-most marketer is perceived by the other peer-level direct reports to have equal weight and reporting status in the politics and influence of overall management.
3) If it is primarily a B2B tech vendor, the senior-most marketer has an especially productive and collaborative relationship with the senior-most Sales exec.
4) The marketing organization has a good grasp of its "marketing business model"; that is, what are the ingrained programs, practices, etc. that represent the foundation to the company's marketing platform. There is an annual "rhythm" to this marketing business model so that there is a good sense, across the marketing team, of a solid operating pattern. In other words, the team does not feel as if the marketing strategy changes frequently and is the "flavor of the month".
5) In addition to the foundation of this marketing business model, there is also the room, the operating space, to try new marketing initiatives. These should be one or two (at the most) major initiatives that are tested and tried during the year, lead by the CMO.
6) There is a good balance to the art plus the science of marketing. The foundational elements of the marketing business model should be ingrained enough so that there is a steady and relevant stream of performance metrics that can be driven out of the activity. To the extent that the CMO is able to produce and manage towards these metrics for the core activities, he/she will be allowed more latitude for creating and testing new activities - which by definition will be hard to apply the science to at the beginning.
7) There is good attention to the marketing operations aspects. The marketing organization is right-sized; it is balanced appropriately for the resources and activities that are at corporate vs. elsewhere. There is good attention to budgets(marketing's managerial accounting process); a strong marketing performance measurement process; marketing's short-term and long-term technology needs; and there is enough awareness and circumspection about the marketing budget and the overall company income statement that the CMO, if requested, can with-stand a budget reduction while still being able to keep the core elements of the marketing business model in place and productive.
8) There is a strong marketing staff and constant attention to improving staff caliber and building skill sets.
9) The CMO and staff have a good grasp of the marketplace wants/needs; key industry trends that impact the work; and key competitors and trends. All this is indicative of good "outside-in" marketing and will help the marketing team to be perceived as business people that can credibly represent the voice of the customer within the organization. (for marketing, sales and product development/innovation)
10) The marketing function is perceived within the organization as a good place to work; a function where careers can be built; a function that has a high bar for job entry.
I could go on, but those are the top ten.
How long could it take? Depends on what you are starting with. If rock-bottom is the basis, it could take 2-3 years.
By Rich Vancil, VP Executive Advisory Group, IDC
Tuesday, November 27, 2007
Who Judges Perfection?
Heston Blumenthal is a remarkable chef whose cooking will be sampled by some readers in the near future. Mixing physics and chemistry with a search for the absolute perfect ingredients, his is cooking that most would not bother to try at home but as one critic wrote "it's always fun to see someone do something better than anyone else in the world".
Interesting distinction there - he searches for absolute perfection but the critic perceives it in relative terms. True creative brilliance involves a search for perfection, but the consumer is more concerned with you delivering something that is markedly better than the alternatives. They don't want "good enough" but equally they (and I) probably wouldn't recognise real perfection either.
Monday, November 26, 2007
Short-Cut, Not Short Circuit.
Continuing with my theme of facilitating short-cuts as a route to better usability and improved customer experience, it's crucial to ensure that the short-cut in question is actually a short-cut for your users.
Tinyurl.com is a very useful facility that reduces unwieldy url's to a manageable length. That is great when you're sending them in SMS form, but it doesn't facilitate comprehension as you can see here.
The predominance of emboldened tiny urls in an article about podcasts is certainly a short-cut for the techie writer in terms of printspace. However, from the reader's perspective, having one's scanning eyes drawn to indecipherable urls does nothing positive.
The only short-cut this facilitates is that of the reader to the next article.
Tinyurl.com is a very useful facility that reduces unwieldy url's to a manageable length. That is great when you're sending them in SMS form, but it doesn't facilitate comprehension as you can see here.
The predominance of emboldened tiny urls in an article about podcasts is certainly a short-cut for the techie writer in terms of printspace. However, from the reader's perspective, having one's scanning eyes drawn to indecipherable urls does nothing positive.
The only short-cut this facilitates is that of the reader to the next article.
Thursday, November 22, 2007
For The Love Of Cod.
Say fish and chips and people generally think cod and chips. But cod has been scarce in the seas lately and catches have been restricted by EU quotas. So what do you do if you're a fish and chip shop and the majority of your customers automatically ask for cod and chips?Well, contrary to my previous advice, you short-circuit their psychological short-cut; take cod off the menu on "No-cod Wednesdays"; and make them focus on the alternatives. Partly a green initiative, but certainly smart marketing for a business that has its own Long Tail.
Wednesday, November 21, 2007
Try Before You Buy Marketing.
The advent of file-sharing and broadband has created an environment in which potential customers are fully exposed to media products before they make a purchase decision.
The disruption this has caused to those businesses is well-documented, but outside of that arena the mindset is also now pervasive and your marketing approach must acknowledge that. If you wouldn't buy your product/service, there's really no point trying to get others to do so.
The disruption this has caused to those businesses is well-documented, but outside of that arena the mindset is also now pervasive and your marketing approach must acknowledge that. If you wouldn't buy your product/service, there's really no point trying to get others to do so.
Tuesday, November 20, 2007
Interruption Management.
Here's an interesting study that suggests that people who use IM and other communication tools are not less productive than others and believe that they suffer from fewer interruptions.
In other words, if you keep people in the loop on a constant basis, rather than with intermittent communication, they have a fuller idea of who and what you are and life is easier.
In other words, if you keep people in the loop on a constant basis, rather than with intermittent communication, they have a fuller idea of who and what you are and life is easier.
Monday, November 19, 2007
Cosh Or Cosset: Marketing's ADHD Prescription.
The inestimable Lauren commented on the last post that Corporate Dex-Amphetamine was inevitable. In fact, it's here already. Our perceived ad attention deficit disorder is being tackled by programmes that offer free or cut-price content/services in exchange for compulsory exposure to advertising messages.
But in a month when the efficacy of Ritalin has been questioned, it's worth considering whether a course of action/medication that seeks to counter the effects of glitzy, superficial additives/messages is the way to go.
It's not just that advertising can be ignored due to technology, the fact that it can is leading to mental conditioning that means enforced advertising may not be absorbed.
So, as with ADHD, it's surely better to feed people the right "additives". The marketing equivalent of a healthier diet that allows them to grow stronger and energised, rather than distracted and hyperactive.
(Image courtesy of getthejob)
Friday, November 16, 2007
Why Won't They Listen To You?
Last night. A gathering of PR practitioners seeking to understand how social media impacted their business. They wanted to access bloggers on behalf of their clients. Some of the bloggers present objected to being spammed. The celebrated anti-spam reactions of Tom Coates and Kevin Anderson were inevitably cited and short-hand terms like Cluetrain and conversation were bandied about.
As someone who stands on both sides of the divide, I thought this remark by one of the PR people summed up the source of the miscomprehension.
"But if I can't send you an email, how can I talk to you?"
In the past, clients expected PR to give them coverage - that's no longer good enough. If you want to have a conversation with a commercial undercurrent, it would help if you think about the nature of conversations that you enjoy and try to replicate them. The technology has changed but the issue remains the same. You're trying to gain interest rather than attention. Attention is dead - it's interruptive. Any unwanted interruption of my or your time is unwelcome
My opinion on "conversation" has been recorded here but the analogy for me is obvious. If you're in a bar chatting with a group of friends or colleagues, it is entirely possible for a complete stranger to interpose into that conversation and be welcomed. But if they wander over unannounced and say let me tell you about this thing that is wonderful regardless of what you're talking about, the reaction they get will be very different.
A remark from someone with whom you've developed a rapport and mutual respect over a period of time (be that by participating on their blog or by sponsoring an online community as per Chris Locke's post-cluetrain suggestion) is part of a conversation. An unsolicited email is the equivalent of the bar-room bore.
Thursday, November 15, 2007
Is Fear of Failure Holding You Back from Starting Your Own Painting Business?
It's a known fact among house painters that over 90% of new painting businesses never make it past the first year.
But did you also know that one of the main reasons so many good painters never get started is due to fear of failure?
Fear of failure paralyzes painters into remaining in dead-end jobs painting for bosses who don't appreciate them and who barely pay them enough to survive.
Although our industry desperately needs better customer service oriented painters in the field, there is a right and wrong way to go about getting started.
Satisfaction Quantified?
Satsifaction surveys exist to measure our relative pleasure or displeasure on some sort of sliding scale. So why would the options on a customer survey change from question to question and why would they place acceptable ahead of adequate in the scale of options?
Perhaps because it was a survey of customer care in a state-run hospital and unwell patients might not notice that marking down actually improved the rating.
Never believe research results if you haven't seen how they were collected. In the private sector, at least, you won't succeed by deluding yourself.
Perhaps because it was a survey of customer care in a state-run hospital and unwell patients might not notice that marking down actually improved the rating.
Never believe research results if you haven't seen how they were collected. In the private sector, at least, you won't succeed by deluding yourself.
Wednesday, November 14, 2007
Channel Marketing Investment - How much did we spend and why?
Do you know how much of your marketing investment is dedicated to your channels? Not just co-op and market development funds(MDF), but also the investment in other marketing activities that are intended to either directly or indirectly support the channels. This may include "ground cover" as some people would put it. If your answer is no, then you're not alone. Few companies have a more holistic understanding of their investment in the channels, let alone their return on that investment. In addition, most channel-centric companies are afraid to modify their investment in the channels since they don't quite know what will happen; taking a stance of "if it's not broken, don't fix it".
With cost pressures on marketing only increasing, this strategy will need to change, and quickly. The challenge is even greater for those companies just beginning a channel marketing program. . . trying to decide how much to invest in the channels and how to manage and track return of that investment.
Here are some key findings from recent IDC research:
-IT vendors must increase their investment in marketing to support an expansion in indirect sales. IDC has modeled the change in marketing budget ratio (MBR), or marketing investment as a percentage of revenue, based upon shifts in revenue from indirect sales. This shift will vary depending upon the size of the company, segment-specific variables, and business mix or other factors, but the trend is clear that support of indirect versus direct sales requires additional marketing investment. (feel free to contact me at mgerard@idc.com to receive a report which summarizes this relationship for software companies)
-In addition to the level of overall marketing investment, the marketing mix also changes as collaboration with reseller channels increases. For example, IDC research indicates that events and direct marketing program spend allocation as a function of total program spend decrease with increasing investment in the channels. The key take-away here should be that you need to review your marketing mix carefully as your channel strategy and investment shift.
- Initiate a channel marketing performance measurement program if you haven't done do already. This strategy should include development and tracking of operational metrics (e.g., channel marketing investment as a % of revenue, investment throughput) as well as execution-focused metrics (e.g., lead generation metrics). Collaborate with your marketing operations team to advance this agenda if you haven't done so already. (what's "marketing operations"?. . . . glad to send you a copy of my recent study in this area if you're interested mgerard@idc.com)
Also, check out a recent article in B-to-B for additional information on channel marketing.
With cost pressures on marketing only increasing, this strategy will need to change, and quickly. The challenge is even greater for those companies just beginning a channel marketing program. . . trying to decide how much to invest in the channels and how to manage and track return of that investment.
Here are some key findings from recent IDC research:
-IT vendors must increase their investment in marketing to support an expansion in indirect sales. IDC has modeled the change in marketing budget ratio (MBR), or marketing investment as a percentage of revenue, based upon shifts in revenue from indirect sales. This shift will vary depending upon the size of the company, segment-specific variables, and business mix or other factors, but the trend is clear that support of indirect versus direct sales requires additional marketing investment. (feel free to contact me at mgerard@idc.com to receive a report which summarizes this relationship for software companies)
-In addition to the level of overall marketing investment, the marketing mix also changes as collaboration with reseller channels increases. For example, IDC research indicates that events and direct marketing program spend allocation as a function of total program spend decrease with increasing investment in the channels. The key take-away here should be that you need to review your marketing mix carefully as your channel strategy and investment shift.
- Initiate a channel marketing performance measurement program if you haven't done do already. This strategy should include development and tracking of operational metrics (e.g., channel marketing investment as a % of revenue, investment throughput) as well as execution-focused metrics (e.g., lead generation metrics). Collaborate with your marketing operations team to advance this agenda if you haven't done so already. (what's "marketing operations"?. . . . glad to send you a copy of my recent study in this area if you're interested mgerard@idc.com)
Also, check out a recent article in B-to-B for additional information on channel marketing.
How Do People Count?
My recent labelling post caused quite a debate and got me thinking about dieting and whether people focus on what's good for them or count up the bad things they can get away with eating each day.
I don't know tha answer, but it suggests to me that you really need to know how the people in your marketplace are thinking. Are they focussing on what's good for them i.e. quality or do they know that their choices aren't the best but they figure they can get away with a certain consumption level without having a negative outcome?
I don't know tha answer, but it suggests to me that you really need to know how the people in your marketplace are thinking. Are they focussing on what's good for them i.e. quality or do they know that their choices aren't the best but they figure they can get away with a certain consumption level without having a negative outcome?
Tuesday, November 13, 2007
Getting Here From There.
I'm repeatedly frustrated by the lack, paucity or complexity of travel directions on business websites. There are lots of new aids (like map programs) to help with this but still people get it wrong. They assume you know the area, they assume they know where you're coming from and sometimes they assume you will so want to come that you'll work it out for yourself.
It takes brains to do it this well. (via Ruby)
And doesn't their effort make you think that the shop is worth your effort?
It takes brains to do it this well. (via Ruby)
And doesn't their effort make you think that the shop is worth your effort?
Monday, November 12, 2007
All The News That Fits.
Courtesy of visiting friends, I'm belatedly aware of the New York Times redesign. They've reduced the width (by 1.5 inches) to standard tabloid size while maintaining the broadsheet height. It's a very odd shape.
I imagine they assumed that going tabloid would implicitly diminish their stature and reduce their differentiation from existing city rivals the Post and the News. But that's nonsense. The size of the paper is predominantly a usability issue, it is the design and content that differentiates the consumption experience.
Seems to me, they're stuck in the mindset of how newspaper professionals view newspapers and not that of how their readers view them.
I imagine they assumed that going tabloid would implicitly diminish their stature and reduce their differentiation from existing city rivals the Post and the News. But that's nonsense. The size of the paper is predominantly a usability issue, it is the design and content that differentiates the consumption experience.
Seems to me, they're stuck in the mindset of how newspaper professionals view newspapers and not that of how their readers view them.
Sunday, November 11, 2007
Customer Facing Stuff.
Funny and creative in and of itself, but check out (via Iain) the imitations it's spawned and you might glean some ideas about the best way to deal with unusual customers and the impressions those strategies leave.
Thursday, November 8, 2007
Reverse Marketing Engines.
Audiences at conferences are amazed by insights that seemed obvious years ago; the digital life remains a mystery to many and buzzwords and received wisdom continues to be spouted and not questioned.
So, in spite of the demographic realities, the considerable doubts about the longevity of brand loyalty and the radical changes to daily life that digital technology has wreaked, businesses still repeat the mantra of attracting youth, capturing new users and moulding technology to their traditional way of doing business. Changing marketing thinking in the corporate world is clearly akin to turning round an oil tanker.
When they act like they understand that it's the quality of your target customers not their age that matters; when they realise that existing customers are the key to retention and capture of new customers; and when they shape their business to reflect the realities of the digital lifestyle, then the oil tanker will, at least, have stopped.
Wednesday, November 7, 2007
Facilitate Short-Cuts And Satisfaction Soars.
We've all had the experience I had today. That of repeating a reference number to a series of people on the end of the phone who apparently need that information before they can put you through to the next person who will put you through to the next person who finally inputs the reference into the system in order to look at what you might be calling about.
It's crazy - the reference number is designed to be a short-cut to a solution and yet the system is not designed to facilitate that short-cut. Ensuring that your infrastructure and staff facilitate those short cuts is the key to great customer service, to excellent usability and to good marketing because it eliminates frustrations and delays and gets the customer where they want to be as quickly as possible.
And as Mike Kruzeniski highlights, it doesn't even have to involve people.
All you have to do is make the label the button.
Simple, isn't it? But just think how many metaphorical labels your customer has to read or fill-in before you press their buttons.
It's crazy - the reference number is designed to be a short-cut to a solution and yet the system is not designed to facilitate that short-cut. Ensuring that your infrastructure and staff facilitate those short cuts is the key to great customer service, to excellent usability and to good marketing because it eliminates frustrations and delays and gets the customer where they want to be as quickly as possible.
And as Mike Kruzeniski highlights, it doesn't even have to involve people.
All you have to do is make the label the button.
Simple, isn't it? But just think how many metaphorical labels your customer has to read or fill-in before you press their buttons.
Tuesday, November 6, 2007
The Modern Mundanist.
At last - for those of you who weren't there and those of you who were - Dave has tied together most of his slides from Interesting 2007 with a better audio track than I've previously heard.
Enjoy a masterful performance.
Enjoy a masterful performance.
Monday, November 5, 2007
Exceedingly Deceptive Labelling?
Food companies are increasingly required to detail the amounts of fat, salt etc that their products contain so that we can work out which ones are, for example, low-fat (i.e. less than 5% fat). If we are quite numerate that is.
At a recent client meeting, I noticed that this carton had seemingly facilitated that calculation by providing a breakdown of both the weight of the individual constituents and a percentage figure. But look closer.
The percentage figure relates not to the number listed above it but to recommended total daily intake - a calculation one is less likely to be contemplating. Crunch the numbers and you see that the cakes comprise 42% sugar and 15% fat (not the 15% and 7%) you might have assumed.
Is this deliberate misrepresentation from Mr.Kipling or just accidentally misleading design? Who knows? But the marketing lesson is obvious, you can't fool all the people all of the time, so don't try. (Also see Seth today).
At a recent client meeting, I noticed that this carton had seemingly facilitated that calculation by providing a breakdown of both the weight of the individual constituents and a percentage figure. But look closer.
The percentage figure relates not to the number listed above it but to recommended total daily intake - a calculation one is less likely to be contemplating. Crunch the numbers and you see that the cakes comprise 42% sugar and 15% fat (not the 15% and 7%) you might have assumed.
Is this deliberate misrepresentation from Mr.Kipling or just accidentally misleading design? Who knows? But the marketing lesson is obvious, you can't fool all the people all of the time, so don't try. (Also see Seth today).
Friday, November 2, 2007
Christmas Is Coming.
So here's something to consider buying for the men in your life.
Gifts that keep on giving.
Marketing that simplifies a technical benefit via metaphor (and pillows).
Durex Performa condoms contain benzocaine (a mild anaesthetic), which helps men last longer in bed. To highlight this product benefit we distributed limited edition pillowcases alongside performa condoms at New Zealand’s biggest annual sex expo, Erotica increasing sales by 28%. The pillowcases proved such a hit with the guys that hundreds more were printed and sold in D.vice sex stores as a continuation of the promotion.
Via adsneeze.
Gifts that keep on giving.
Marketing that simplifies a technical benefit via metaphor (and pillows).
Durex Performa condoms contain benzocaine (a mild anaesthetic), which helps men last longer in bed. To highlight this product benefit we distributed limited edition pillowcases alongside performa condoms at New Zealand’s biggest annual sex expo, Erotica increasing sales by 28%. The pillowcases proved such a hit with the guys that hundreds more were printed and sold in D.vice sex stores as a continuation of the promotion.
Via adsneeze.
Thursday, November 1, 2007
The Eyes Of The Media Literate.
We all know the ad, but a schools TV documentary entitled Advertising Uncut featured a number of voxpop reactions to it. Most notable for me was the comment from the viewers that they were surprised that real balls had been used. The assumption of this generation (late teens, early 20s) and maybe others is that effects are CGI. So maybe the spectacular is unspectacular (but still beautiful or inspiring); perceived authenticity is limited to the simplest things; and aspiring movie directors won't get their high-concept storyboards approved?
Wednesday, October 31, 2007
What's Your Influence Span?
"Fast trends get all the attention; slow trends have all the influence."
(via Dan Pink)
Especially true if attention spans are diminishing don't you think?
(via Dan Pink)
Especially true if attention spans are diminishing don't you think?
Tuesday, October 30, 2007
Monday, October 29, 2007
Rarefication Is The New Decommodification.
Decommodification is an awkward word to say and simply not assertive enough to describe the underlying differentiation problem.
To avoid being a commodity in a fast-moving world of shared technologies and replicable ideas, you need to be actively different, noticeably remarkable and consequently scarce and of value. After all, you're seeking to charge a significant and sustainable premium.
It's not enough just to try to not be a commodity. That way lies mid-level mediocrity and trivial distinctions supported by white-washing advertising.
You don't need to decommodify - you need to rarefy.
rarefy
- to make more complex, intricate, or richer.
- to refine a design or pattern.
Yes it has elitist overtones, but isn't that what true differentiation is all about? And it's certainly easier to say.
To avoid being a commodity in a fast-moving world of shared technologies and replicable ideas, you need to be actively different, noticeably remarkable and consequently scarce and of value. After all, you're seeking to charge a significant and sustainable premium.
It's not enough just to try to not be a commodity. That way lies mid-level mediocrity and trivial distinctions supported by white-washing advertising.
You don't need to decommodify - you need to rarefy.
rarefy
- to make more complex, intricate, or richer.
- to refine a design or pattern.
Yes it has elitist overtones, but isn't that what true differentiation is all about? And it's certainly easier to say.
Saturday, October 27, 2007
Wake Up And Smell The UGC.
Four weeks ago, an 18 year old English student in his first year at Leeds University put a video on YouTube.
Three weeks ago, the second person to leave a comment wrote "wow you should send that to apple. you can make so much money if they air that!!!"
Tomorrow, a professionally produced version will be shown during NFL games, Desperate Housewives and the World Series.
Do you still think user-generated content is a joke?
Three weeks ago, the second person to leave a comment wrote "wow you should send that to apple. you can make so much money if they air that!!!"
Tomorrow, a professionally produced version will be shown during NFL games, Desperate Housewives and the World Series.
Do you still think user-generated content is a joke?
Friday, October 26, 2007
Plasticine Rabbits And Drumming Gorillas.
When I read Scamp's riposte to the claims of plagiarism in the Cadbury ad, I was inclined to agree with him. But then I saw the Kozyndan rabbits and today this shot from a 1999 Michel Gondry video leapt out at me. It certainly made me pause (which was irritating as I was on a cycling machine at the time).
Thursday, October 25, 2007
One World Everybody Eats.
An intriguing combination of the "pay what you will" pricing of the new Radiohead album and the general desire to eliminate waste is to be found at the One World Cafe in Salt Lake City where everybody chooses how much they want to eat and pays according to how much they think the meal was worth. But it's not that simple.By encouraging people to savor the meal, Ms. Cerreta is attempting to help people see the value of food as more than a mere consumable but rather, as a glue and a catalyst for healthy people, relationships and communities.
There are lessons here for much larger businesses in terms of focussing on customer value, building loyalty around social activities and about standing for something. This is about much more than just serving food.
Wednesday, October 24, 2007
Social Activities Beget Social Objects.
It may be because I'm struggling to think of anything to write today but, having just read Hugh's latest offering, I was struck how I unusually couldn't agree with one of the points he made.
2. Social Networks are built around Social Objects, not vice versa. The latter act as "nodes". The nodes appear before the network does.
I think there is an intermediate element and would contend that social networks are actually built around social activities.
The activity exists before the network does (as I suggested when I wrote recently that you can't fake community) and before the social object. Indeed, those social activities may or may not actually involve one or a number of social objects.
What you should focus on is identifying those existing activities that you can facilitate and/or enhance by introducing your social object into them.
2. Social Networks are built around Social Objects, not vice versa. The latter act as "nodes". The nodes appear before the network does.
I think there is an intermediate element and would contend that social networks are actually built around social activities.
The activity exists before the network does (as I suggested when I wrote recently that you can't fake community) and before the social object. Indeed, those social activities may or may not actually involve one or a number of social objects.
What you should focus on is identifying those existing activities that you can facilitate and/or enhance by introducing your social object into them.
Tuesday, October 16, 2007
So You Want to Start a Painting Business...?
So You Want to Start a Painting Business?
If you've ever seen one of those “Top 10 Small Business to Start” lists then you probably know that the house painting business opportunity has been a contender for years.
If you've ever seen one of those “Top 10 Small Business to Start” lists then you probably know that the house painting business opportunity has been a contender for years.
There are no formal education requirements and basic painting and business skills are all that are necessary to succeed. (Most of which can be learned with the right painting business building home study course).
The demands of a house painter are typically only light physical labor, which can be done by men or women, young or old. A painting business can be used as a full time or part time income source.
Being a painting business owner not only offers the potential to quickly earn a professional income it also offers the feeling of fulfillment and pride that comes with being self-employed and self-sufficient.
Thursday, October 11, 2007
2008 Essential Guidance for CMOs
Marketing investment across the IT vendor community will increase by 6.1% for 2007. This increase in marketing investment will lag behind the growth rate of global vendor revenue, which is forecasted by IDC to be 6.7% in 2007. Tech marketers should watch this trend closely, and monitor their marketing budget ratio (MBR) and marketing investment change (MIC) data versus the industry. My research within IDC on marketing ROI has consistently shown that tech marketing leaders tend to expand their budgets at a rate equal to or greater than their revenue growth rate. Short-term budget reductions may improve short-term operating margins while sacrificing longer-term growth. This holds especially true for disinvestment in the brand and awareness-building elements of the marketing mix, which tend to return the best results when managed with a smooth and steady investment strategy. Here are some key guidelines for tech marketing executives and their operational counterparts for 2008:
- Think more about tech marketing from the "outside-in" versus the "inside-out." Tech marketers traditionally "go to market" in a one-way trumpeting of product and feature messages. As buyers get smarter and savvier, these product-centric and very expensive techniques will be less well received, and the return on traditional marketing investments will decline.
- Embrace interactive marketing. The new online and interactive marketing mix represents an excellent launching point for better "outside-in" practices and the potential for greater returns on investment. However, many vendors are off to some operational false starts in this area. IDC suggests beginning with an investment and operational review of all Web 2.0 marketing techniques.
- Start a channel marketing measurement initiative. The return on the channel marketing dollar is one of the murkier areas of the marketing investment portfolio. Now is the time to invest in establishing a set of improved processes and ongoing measures for channel marketing operations.Improve the overall "end-to-end" marketing in your company. Reduce your sales and marketing integration challenges by creating a single view of the customer from end to end; rationalize the number of customer databases if necessary. Better leverage customer and prospect data to improve the entire customer-creation process, from initial awareness through advocacy.
Source: Marketing Investment Planner 2008: Benchmarks and Key Performance Indicators, IDC #208489, September 2007
- Think more about tech marketing from the "outside-in" versus the "inside-out." Tech marketers traditionally "go to market" in a one-way trumpeting of product and feature messages. As buyers get smarter and savvier, these product-centric and very expensive techniques will be less well received, and the return on traditional marketing investments will decline.
- Embrace interactive marketing. The new online and interactive marketing mix represents an excellent launching point for better "outside-in" practices and the potential for greater returns on investment. However, many vendors are off to some operational false starts in this area. IDC suggests beginning with an investment and operational review of all Web 2.0 marketing techniques.
- Start a channel marketing measurement initiative. The return on the channel marketing dollar is one of the murkier areas of the marketing investment portfolio. Now is the time to invest in establishing a set of improved processes and ongoing measures for channel marketing operations.Improve the overall "end-to-end" marketing in your company. Reduce your sales and marketing integration challenges by creating a single view of the customer from end to end; rationalize the number of customer databases if necessary. Better leverage customer and prospect data to improve the entire customer-creation process, from initial awareness through advocacy.
Source: Marketing Investment Planner 2008: Benchmarks and Key Performance Indicators, IDC #208489, September 2007
Tech Sales and Marketing Execs: Avoid Negative Attention from Your CEO!
By Richard Vancil, Vice President, IDC's Executive Advisory Group
A long-standing rift exists between sales and marketing in the IT vendor community. We all recognize the tired observations: sales is more tactical and marketing is more strategic; sales is all about the short term and marketing is about the long term; sales brings in the money and marketing just spends it. And we all know that the finger-pointing from the "two sides" gets sharper from there!
Just as these misalignments and strained relationships have been long-standing, so has the tolerance of this by the C-Suite executives. The prevailing mindset: as long as the business results have been very good, a little organizational tension never hurt anyone – and some of it is actually helpful! It's a good sign that complacency hasn't set in.
IDC is now observing that C-level tolerance is reaching its limits. More CEOs and COOs are scrutinizing their total cost of creating a customer: the sales plus marketing cost envelope. They are seeing those costs continue to rise relative to the return and are suspecting that the organizational friction and lack of alignment between sales and marketing is a culprit. And they are right!
The costs are just too big a target for senior management to ignore. A typical large tech vendor might spend 3% to 12% of revenue on marketing and an additional 10% to 20% of revenue on sales. For illustration purposes, let's call it 20% in total. Some of those costs are for pure and isolatable marketing activities and some are for pure and isolatable sales activities.
But a good proportion, as much as one-third, or 7% of revenue, are costs that lie at the intersection of sales and marketing. Activities represented in those costs include customer database management (often redundant and disconnected between departments); the lead management process; and the broad category of marketing's support and enablement of field sales. Where this intersection is tangled with miscommunications and broken processes, it is then reasonable to assume that some large part of that 7% might be wasted money.
As a result, more CEOs are now actively inserting themselves in the sales and marketing process to streamline operations and to reduce costs. At many companies, we are seeing a merging of the sales and marketing operations functions. At several companies we are seeing finance teams (and their hired consultants) spending more time examining and rationalizing sales and marketing costs (by order of the CEO). And finally, at a handful of companies, we are observing tech vendor CEOs looking actively at the organizational option of a single sales and marketing executive reporting to the CEO. We expect to see more of this in 2008 and beyond.
Our guidance for the senior sales and marketing executives is this: Start addressing some of these problems on your own or your CEO will start addressing them for you!
If the coming negative attention from the CEO is not enough motivation, it might be helpful to also look at some external catalysts. New IDC research finds buyers increasingly frustrated by the approach and tactics made by the vendor's marketing and sales efforts. They are getting turned-off by messages, material, timing, and sales representation that is out-of-sync with their buying process. Much of this may have roots in the misaligned sales and marketing execution on the part of the vendor.
Sales and marketing executives need to get on the same page. Put yourself in the shoes of your CEO the next time you are preparing for a sales and marketing planning or budget review. He or she is looking for new ways to lower the overall cost to create a customer. Offer a unified solution – not a fractured problem!
A long-standing rift exists between sales and marketing in the IT vendor community. We all recognize the tired observations: sales is more tactical and marketing is more strategic; sales is all about the short term and marketing is about the long term; sales brings in the money and marketing just spends it. And we all know that the finger-pointing from the "two sides" gets sharper from there!
Just as these misalignments and strained relationships have been long-standing, so has the tolerance of this by the C-Suite executives. The prevailing mindset: as long as the business results have been very good, a little organizational tension never hurt anyone – and some of it is actually helpful! It's a good sign that complacency hasn't set in.
IDC is now observing that C-level tolerance is reaching its limits. More CEOs and COOs are scrutinizing their total cost of creating a customer: the sales plus marketing cost envelope. They are seeing those costs continue to rise relative to the return and are suspecting that the organizational friction and lack of alignment between sales and marketing is a culprit. And they are right!
The costs are just too big a target for senior management to ignore. A typical large tech vendor might spend 3% to 12% of revenue on marketing and an additional 10% to 20% of revenue on sales. For illustration purposes, let's call it 20% in total. Some of those costs are for pure and isolatable marketing activities and some are for pure and isolatable sales activities.
But a good proportion, as much as one-third, or 7% of revenue, are costs that lie at the intersection of sales and marketing. Activities represented in those costs include customer database management (often redundant and disconnected between departments); the lead management process; and the broad category of marketing's support and enablement of field sales. Where this intersection is tangled with miscommunications and broken processes, it is then reasonable to assume that some large part of that 7% might be wasted money.
As a result, more CEOs are now actively inserting themselves in the sales and marketing process to streamline operations and to reduce costs. At many companies, we are seeing a merging of the sales and marketing operations functions. At several companies we are seeing finance teams (and their hired consultants) spending more time examining and rationalizing sales and marketing costs (by order of the CEO). And finally, at a handful of companies, we are observing tech vendor CEOs looking actively at the organizational option of a single sales and marketing executive reporting to the CEO. We expect to see more of this in 2008 and beyond.
Our guidance for the senior sales and marketing executives is this: Start addressing some of these problems on your own or your CEO will start addressing them for you!
If the coming negative attention from the CEO is not enough motivation, it might be helpful to also look at some external catalysts. New IDC research finds buyers increasingly frustrated by the approach and tactics made by the vendor's marketing and sales efforts. They are getting turned-off by messages, material, timing, and sales representation that is out-of-sync with their buying process. Much of this may have roots in the misaligned sales and marketing execution on the part of the vendor.
Sales and marketing executives need to get on the same page. Put yourself in the shoes of your CEO the next time you are preparing for a sales and marketing planning or budget review. He or she is looking for new ways to lower the overall cost to create a customer. Offer a unified solution – not a fractured problem!
Tuesday, October 9, 2007
Product, Solution and Industry Marketing. . . the Next Evolution
Product marketing needs to undergo a significant evolution in the technology industry. It must no longer be marginalized as a content creation role or simply included as part of product management. Companies have an opportunity to lead this evolution by leveraging product, solution, and industry marketers to drive innovation in the organization and better meet the needs of their customers. Here are some key insights and guidance for tech marketers:
- Companies should conduct a comprehensive audit of their product, solution, and industry marketing practices and apply a consistent definition of roles and responsibilities across the organization. This should include rules of engagement for these teams to interact within marketing, with other functions (e.g., product management and sales), and across business units where applicable. (contact me to receive a free copy of our 2007 Technology Marketing and Sales Taxonomy doc which includes definitions of these roles - mgerard@idc.com)
- Innovation will be mandatory for next-generation tech leaders, from a product and solution perspective as well as a marketing and sales execution perspective — and product, solution, and industry marketers are in the best position to drive innovation across these areas. These teams must better incorporate the voice of the customer into the fabric of the organization, within product management for product and solution development and within sales and marketing for the customer creation process.
- A key theme for the next 12-18 months is to get "ahead of the curve" on sales and marketing alignment and integration. In a recent study conducted by IDC, tech sales executives gave marketing a grade of 62 out of 100 for meeting sales' support needs. Product, solution, and industry marketers are in the ideal position to leverage their technology and vertical knowledge, coupled with marketing skill sets to improve sales efficiency and effectiveness.
Source: CMO Advisory Best Practices Series: Product, Solution and Industry Marketing, IDC #206551, April 2007.
Sunday, October 7, 2007
Field Mktg. . .The Missing Link for M&S Alignment
CMOs and their organizations continue to fall short in optimizing alignment with their sales organization, and the field marketing function offers significant opportunity to improve the linkage with sales. Based on the results of a study I completed as part of IDC's CMO Advisory Practice of the field marketing function and related processes, I'd like to offer the following key insights and guidance:
- Conduct a comprehensive audit of your field marketing practices, and apply a consistent definition of roles and responsibilities across the organization. This should include rules of engagement for these teams to interact within marketing and with sales. Best practice leaders achieve greater efficiency and effectiveness through global consistency: common language, sales communication and enablement, and more rapid sharing of best practices.
- Achieve a greater balance of centralization versus decentralization from a staffing as well as a program investment perspective. Regional marketing execution must leverage corporate strategy and global best practices, yet still maintain the autonomy to meet local needs and respond to business opportunities and competitive threats. IDC recommends that 60–70% of field marketing's execution and assets should originate from corporate, with the remainder driven regionally or locally by field marketing.
- Leverage field marketing to improve marketing's performance as well as the perception of marketing's contribution to the organization. More specifically, field marketing needs to act as the "center of gravity" for development and execution of the local sales and marketing strategy in collaboration with sales. This includes field marketing helping to drive local sales strategies. (e.g., market sizing, identifying and helping to prioritize targets) As once participant put it, “I don’t think I ever want them totally aligned. . . I want to create tension in a positive way."
Source: CMO Advisory Best Practice Series: Field Marketing. . the Last Mile to the Customer, IDC #207984, August 2007.
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