Building a culture of Effectiveness
Möt en expert på hur man skapar effektivitet och lönsamhet i en marknadsorganisation. Om utmaningar i kontakten mellan marknadsavdelning, ledning och styrelse, samt konsekvenser för byråerna. Om hur det kan bli fel och lösningen på problemen med att bygga effektivitet i en organisation.
6. Imagine you had a choice
Do the right
Ability to
thing for
measure
the business
7. Some common misconceptions
“It’s an Effectiveness “Brand consideration”
Award paper”
“It’s the return on investment from the campaign”
“Once a year fuss rather than ongoing business practice”
“Measuring what we do”
“Agencies seem to define Effectiveness as being
the work you do after the campaign has run”
Source: IPA VAG Industry Effectiveness Study, The Effectiveness Partnership interviews
11. This immediately shifts the
conversation
HAS IT
WORKED? HOW CAN WE BE
EFFECTIVE?
WHAT ARE THE
WHAT DOES RESULTS WE
SUCCESS LOOK LIKE? DESIRE?
12. This has implications for the
way we approach Effectiveness
Planning for Effectiveness
Demonstrating Effectiveness
13. Clarifying the objective
What is the role for Marketing
and Communications?
Help deliver £2.5bn extra
sales over 3 years
Source: Warc IPA Effectiveness Awards 2008
16. Reframing the commercial objective into
an actionable task
Sainsbury’s target of delivering £2.5bn extra
sales over three years was turned into the much
more approachable task of getting existing
shoppers to spend an extra £1.14
21. Organic growth correlated with
35%
shareholder value
LVM H
30% InBev
Reckit t
Pernod-Ricard
25%
Cadbury
SAB M iller
T ot al shar eholder r eturn %
H enkel D anone
20%
2
R = 0.4761
Kellogg's Pepsico
15% N est le
Kim berly-Clark L'O real P&G
10%
H eineken
5%
Sara Lee D iageo
U nilever Foods
Alt ria
H einz Colgat e
0%
-2% 0% 2% 4% 6% 8% 10% 12%
O rganic r evenue gr owt h rat e %
Source: Datastream, Martin Deboo-Investec Securities 2007
22. “One third of CFOs do not believe that
Marketing is a key growth driver or
crucial to devising strategy”
Source: Leadership for growth, Marketing in 3D; Delloite Consulting/London Business School 2008
23. Client pressure is building
‘It did not matter while clients had plenty of money to throw at the problem,
but they are no longer willing to pay lots of agencies for overlapping roles, and
are squeezing fees. Coca-Cola wants to reimburse its agencies for costs
and only reward them beyond that when campaigns have been shown to work.’
John Gapper, Financial Times 30th April 2009
24. Profit and Loss Account
We are considered a cost not a depreciating asset..
Groupo Campari 2009
25. “Only marketing investments can deliver
increased revenue and increased profit. Yet
marketing budgets are the first to be cut and
the last to get incremental investments.”
Guy Powell, Marketing Calculator
Source: Marketing calculator by Guy R. Powell
26. High Brand Value
Market Cap of Contribution of Brand Value
Parent Company Brand Value as % of
Brand ($m) ($m) Market Cap
$126,782 $70,452 56%
$ 166,597 $64,727 39%
$71,788 $33,578 47%
$67,708 $28,731 42%
$58,428 $29,495 50%
$29,214 $13,706 47%
$20,284 $11,041 54%
Interbrand Research: Best Global Brands 2010, FT Global 500 2010
29. The marketing sphere
Media
Agency
Fund Manager
Procurement Venture Capitalist
Econometric
Research Consultancy Private Equity
Agency PR
Agency
Comms
Agencies Marketing Company Financial Share
Agency Dept
Dept Board Markets Holders
Build Meet Sales/Share Meet financial Demand to see High share price
brands targets targets successful, highly High dividend
set by the board set by The City profitable company ROCE
(usually short-term) ROMI with excellent
ROMI Payback cash flow
Payback forecast
30. Marketing is not joined up
Media
Agency Fund Manager
Procurement Venture Capitalist
Research Private Equity
Econometric
Agency
PR Consultancy
Agency
Agencies Marketing Company Financial Share
Dept Board Markets Holders
31. Dissatisfaction within Marketing
“82% of Marketing leaders were dissatisfied with the role and
positioning of Marketing within their organisation.” *
“Board level CMOs say that only 16% of board
level discussions are about Marketing.” *
Sources: Leadership for growth, Marketing in 3D; Delloite Consulting/London Business School
In search for a strategic role for Marketing: The Chartered Institute of Marketing 2009
32. Marketing doesn’t often have a
seat at the top table
Minority of CEOs have previous experience in Marketing
Only 14% of FTSE 100 companies had a Marketing
Director on the Company Board*
To compound the situation, the average tenure of a
Marketing Director is less than 28 months
and could be as little as 15 months1
* themarketingdirectors.co.uk 2008, 1 Forbes/ Spencer Stuart 2008/7, 2 Spencer Stuart 2007
35. HOW will creativity deliver value?
Communications activity
Generate intended response
Build brand perceptions
Build brand commitment
Drive consumer behaviour
Create value for business
41. Focus on answering these
questions
What is expected from Marketing from the
different elements of the client organisation?
What are the KPIs that Marketing should
present to the company board to demonstrate
effectiveness?
Do your Marketing briefs contain commercial
objectives for the agencies?
42. Make the connection
Alignment between business strategy and marketing
objectives is critical
Marketing Effectiveness should be explicit
and shared between CMO and the CFO
43. “We are focussed on being
business solution providers,
rather than just advertising and
buzz creators.”
Law and Kenneth- Campaign magazine 2011
45. Invest time upfront to investigate the
business issue
Market Dynamics
Sales
Price
Competition Value share Marketing
Volume share Support
Media spend
Competitor (relative to mkt)
activity Business
Issue
Innovation Retail factors
Quality Distribution
Seasonality
Product Share of Trade
Penetration repertoire
Purchase & Usage
Behaviour