Professional Documents
Culture Documents
Outline of Seminar
1. Improving Marketings Role and Relationships in the Company 2. Finding New Opportunities 3. Finding New Ways to Communicate 4. Using New Technologies and Measuring Results
Holistic Marketing
Sheth was surprised that these companies financially outperformed the outstanding performance of Collins companies.
Source: Raj Sisodia, David B. Wolfe, and Jag Sheth, Firms of Endearment: How World-Class Companies Profit from Passion and Purpose (Wharton School Publishing, 2007)
Sheth, et al, offers this as a 21st century paradigm for marketing as opposed to the traditional 20th century paradigm which they characterize as aggressive and manipulative.
What are the main obstacles to connecting marketing throughout your organization?
Rank 1 2 3 4 5 6 7 Too few resources to deliver against objectives Shortage of good talent in the marketing group Lack of trust and credibility with the rest of the organization Unable to communicate a clear, consistent message to the entire organization Lack of innovation in finding new ways to better connect marketing Lack of support from upper management Marketing does not have a clear strategy platform to convey to the rest of the organization
If You Are Appointed CMO, You Want Your Office To Be Located Next To:
1. 2. 3. 4. 4 5. 5 CEO office CFO office CTO office CIO office ffi VPS office
Strategy Setting
Sales feel indispensable, views marketers as ivory tower strategists who don t dont really understand customers or the pressures of selling in a difficult environment
Messaging
Salespeople ignore corporate branding Salespeople and positioning standards. Underutilize leads.
Corporate messages and Corporate generic sales collateral arent helpful in closing orders. Leads arent qualified
Market Information
Sales believes that marketing doesnt listen or understand the complexities of the sales process
Undefined
Defined
Aligned
Integrated
Prospecting
Qualifying
Defining Needs
Developing Solutions
Contract Negotiation
Implemen -tation
Customer Awareness
Brand Awareness
Brand Consideration
Brand Preference
Purchase Intention
Purchase
Loyalty
Customer Advocacy
Marketing
Handoff
Sales
Jack Trout, in his Differentiate or Die: Survival in Our Era of Killer Competition, describes many ways to differentiate. Differentiation can be psychological as well as functional (Marlboro cigarettes).
P&G s Folger s P&Gs Folgers Instant Coffee: Flaked Crystals Frank Perdues Chicken: Yellow Flesh Alberto-Culvers Natural Silk Shampoo: Silk
Source: W. Chan Kim and Renee Mauborgne, Blue Ocean Strategy (Harvard Business School, 2005).
Create Theme Refined environment Multiple M lti l productions d ti Artistic music and dance
Capturing Non-Customers p g
Callaway Golf noticed that many country club members have not taken up golf because the game looked too difficult Callaway difficult. invented Big Bertha, a golf club with a large head making it easier to hit the ball. They converted many non-customers.
Pret a Manger, a British fast-food chain, noticed that professionals went to restaurants for lunch. Some were dissatisfied with the slow service and wanted healthier food, or decided to bring lunch from home. Pret offered restaurant-quality sandwiches made fresh every day from the finest ingredients and the food is available even faster than in fast food restaurants restaurants.
New category
into
Cereal varieties
STREETS
To feel as...
Doll varieties
Social Networks
S i l networks consist of people registering on a Social t k i t f l i t i website such as MySpace or Facebook and describing themselves and connecting with others. g These social networks do not allow direct marketing to g individuals in the social network. Y T b i an example of people making and sharing YouTube is l f l ki d h i videos with others. Some youtubers have become very popular. Advertisers worry that consumers prefer watching YouTube videos to their more expensive TV programs.
Buzz is about trying to increase WOM. There are different types of buzz:
Buzz marketing is meant to generate publicity, excitement and some information about the product.
Richard Bransons nearly naked descent via crane into Times Square to Branson s promote Virgins mobile phone service.
Viral marketing aims to manufacture a marketing messagetypically online and in a tangible p g quickly and exponentially. y p y format such as emailthat can spread among consumers q Shill (or stealth) marketing involves people paid to promote a product/service in different public places without revealing their relationship with the company.
Sony Ericsson hired actors to walk around and ask p p to take p y people photos of them.
Genuine word-of-mouth occurs when people talk about products on their own to friends and acquaintances.
Creating Buzz g
Distinguish three types of diffusers
Mavens: they are an expert on a topic. You listen to them closely. Their motivation is to inform or explain. Connectors: they know a lot of people They are social people. glue. They may mention things to many others but are not seen as experts S l Salespeople: th are persuasive and h l create an l they i d help t epidemic of interest From Malcolm Gladwell, Tipping Point , pp g
BZZAgent.com
David Balter wrote Grapevine. He started BzzAgent.com and recruits recr its agents of teens senior citi ens and other gro ps teens, citizens, groups. Bzz only accepts good products to submit to buzz. An agent receives a list of campaigns and chooses campaigns they are comfortable with with. They receive the product and a tipsheet on how to use WOM if they like the product and will talk about it. They write a report on every incident when they mentioned the product and they get points which turn into rewards. They are asked to report negative things as well as good things about the product product.
Type of audience Certain ethnic groups depend more on word-of-mouth word of mouth Younger people talk more about products than older people. Immigrants rely more on word-of-mouth. Customer connectivity
The more the connectedness, the more the effectiveness of buzz
Major Metrics
Sales Metrics Sales S l growth th Market share Sales from new products Customer Readiness to Buy Metrics Awareness Preference Purchase intention Trial rate Repurchase rate Customer Metrics Customer complaints Customer satisfaction Customer sacrifice Number of promoters to detractors Customer acquisition C stomer acq isition costs New customer gains Customer loses Customer churn Retention rate Customer lifetime value Customer equity Customer profitability Return on customer Brand Metrics Brand strength (perceived relative brand value) Brand equity Distribution Metrics Number of outlets Share in shops handling Weighted distribution Distribution gains Average stocks volume (value) Stocks cover in days Out of stock frequency Share of shelf Average sales per point of sale Communication Metrics C i ti M ti Spontaneous (unaided) brand awareness Top of mind brand awareness Prompted (aided) brand awareness Spontaneous (unaided) advertising awareness Prompted (aided) advertising awareness Effective reach Effective frequency Gross rating points (GRP) Response rate p Sales force metrics Quality of lead stream Average lead to proposal Average close ratio Cost per inquiry Cost per lead Cost per sale Cost per sales dollar Price and Profitability Metrics Price P i sensitivity ii i Average price change Contribution margin ROI DCF
Retention rate Customer lifetime value Customer equity Return on customer Brand strength (perceived relative brand value) Brand equity ROI DCF
Media effectiveness Marcom Brand Brand familiarity familiarity Purchase Purchase consideration consideration
PR
Promotion
Purchase Purchase
Reviews
Revenue Margin
Build M d l f H B ild Models of How Your Market Y M k t Works and Use New Tools
SALES AUTOMATION
The objective is to empower the salesperson to be an informed j p p salesperson who virtually has the whole companys knowledge at his command and can provide total sales quality.
Marketing Automation
Selecting names for a direct mail campaign Deciding who should receive loans or credit extensions Allocating product lines to shelf space Selecting media Customizing letters to individual customers Targeting coupons and samples Pricing airline seats and hotel reservations
Marketing Dashboards
Tools dashboard Processes dashboard Performance dashboard
Take-Aways
Marketing skills must be enhanced in the organization. Marketings M k ti scope must b more h li ti t be holistic. Opportunities always exist and can be found by market segmentation, differentiation, branding, co-development with customers, blue ocean , g, p , thinking and lateral marketing. Traditional media must be supplemented by newer media such as mobile phones, blogs, podcasts, webcasts, social networks, and buzz bil h bl d t b t i l t k db marketing. Marketing technologies such as marketing models, sales automation, g g g marketing automation, and marketing dashboards can increase marketing productivity. Senior management is putting pressure on marketing to deliver more accountability through better campaign and financial metrics.
It is not the strongest of the species that g p survives, nor the most intelligent, but the ones most responsive to change. Charles D Ch l Darwin i