Reflecting on Marketing Accountability

On Marketing AccountabilityA Reflection

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Feel free to re-use or mash-up this presentation under Creative Commons 2.0 licence (non-commercial, attribution)

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Alain Thys: Jekyll or Hyde ?

•As a retailer/VC/entrepreneur: Double digit ROI

•As a marketer: Close to € 100,000,000 spent

to date, and very little to show for it

If you think marketing has a corporate image problem

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Marketers are faddish, irresponsible, … don’t think like business people … more akin to a recalcitrant child …

McKinsey CEO/CMO Survey

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The average tenure of CMOs in consumer markets is 23, 15 or 12 months.

Spencer Stuart

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Too many marketers have become so specialised that they don’t think in

terms of the company’s big picture.

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Philip Kotler

Marketers are frivolous and difficult to approach

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Australian Society of Certified Public Accountants

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Cranfield University

Withhold research Take credit for other’s work

Lack structure Are always in meetings

Work from 10 to 4 Have long lunches

Unaccountable, untouchableSeek quick promotions

ChurnCare about cars, stats and lunch

Use jargonSlippery

Expensive

If you think marketing has a corporate image problem

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Who Killed Marketing?A Forensic Investigation

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Don’t shoot the messenger

Bloody Uncomfortable Confronting

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THE VICTIMAccountability to the Business

THE CRIME SCENEAccountability to the Customer

THE VICTIM’S WORLDAccountability to the World

A Forensic Investigation

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WARC, 2007

Which % of marketers define clear objectives for their campaigns?

46%

Which % time do Sr. Marketers spend on their media strategy (= largest budget item)?

2%EMM, 2005

Which % of Sales Promotions are Unprofitable?

85%UCLA, 2004

Which % of German TV advertising campaigns generate negative ROI?

82%Deutsche Bank, 2004

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Accountability to the Business: Making MoneyA Forensic Investigation

The Reasons:

Differing Strategies within the organisationLack of integrated planningResistance to ChangeUnco-operative RetailersLack of Internal CommunicationMisalignment between Marketing & SalesTurf BattlesOrganisational Silos…

Source: reveries.com survey, July 2005 – n = 198 US marketersFUTURELAB

Accountability to the Business: Implement PlansA Forensic Investigation

Over 80% of the ROI of any Marketing Strategy/Initiative is left to chance

31% of projects are canceled before completion

53% of projects cost nearly double of original estimates.

only 16% of projects come in time and budget.

Source: Management Centre Europe

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Accountability to the Business: Implement ... At AllA Forensic Investigation

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ACNielsen, E&Y, 2005

Which is the failure rate of US Consumer Products?

95%

Which % of CEO’s believe their brand provides superior customer experience

80%Bain & Company

Which % of their customers actually agree?

8%Bain & Company

Which % of Germans are irritated by TV advertising

GfK Marktforschung

78%88% PVR users adskip

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Accountability to the CustomerA Forensic Investigation

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CASE: 25% of all bottled water in the world crosses national borders.

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• Fiji – New York : 13,000 km by boat & truck• 50% of wholesale cost = transportation• 1 million bottles/day = own electricity generation in “pristine” Fiji• >50% inhabitants do not have reliable drinking water

• Glass bottle = 5x weight of plastic bottles (transport & energy)• 2 liters of water to wash/rinse 1 liter bottle before filling• Truck in CO2 from volcanic springwater in Tuscany

Accountability to the World: EnvironmentA Forensic Investigation

http://www.youtube.com/watch?v=grH1gK1TpW0 (30 second edit)

http://www.youtube.com/watch?v=9uUqPj7FLBE

(45 second edit)

Abroad At home

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Accountability to the World: PeopleA Forensic Investigation

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In Your Communication: Neutrality

Accountability to the World: PeopleA Forensic Investigation

Do you really believe in what you do? Or do you wear a mask?

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Accountability to the World: The SelfA Forensic Investigation

SUICIDEWho Killed Marketing?

FUTURELABImage: http://snapesluvr.deviantart.com/art/CSI-Springfield-29131429

How can you avoid it happening to you?

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http://www.youtube.com/watch?v=9MaKHxsGZ-A&mode=related&search=

Tom Knows

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http://wallpapers.diq.ru/r?12

Be Accountable to the business, the customer, the world

“Drive” or prepare to “Be Driven”

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MEASURE & PREDICTBUDGET ALLOCATION

Case: German insurance company Case: Indian Tea company, Greek Telco.

Demonstrate Financial ROI

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Accountability to the Business

Make Implementation Happen

Align employees, agencies, vendors, retailers, …

“Companies with aligned marketing & sales

• grow 5.4 % faster• are 38% better at “closing proposals”• churn 36% less of their customers

MarketingProfs Benchmark Report 2005

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Accountability to the Business

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Focus Your Business on the CustomerAccountability to the Customer

Create Meaningful Propositions

Communicate with Respect, Insight, Passion

Customer Delight at all Touchpoints

Life Cycle Assessment Create a win-win Aspire Neutrality

Demonstrate the Profitability of CaringAccountability to the World

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Challenge what has stopped making sense

Look in the Mirror, Every Day...Accountability to the World

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Heavy

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but inescapableto address its image problem, marketing needs to become more accountable ...

Conclusion:

The Tools Exist ... The Choice is Yours

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To experiment with, learn about and act on marketing accountability:

[email protected]

SEPTEMBER 2007: MARKETING ACCOUNTABILITY EXPERIMENTATION LAB (MAX)