7 marketing effectiveness challenges for the cmo in the new economy

marketing management consultants

�� Marketing Effectiveness Challenges �� for the CMO in the New Economy��

7


Global Challenges for the CMO

ALIGNMENT IS KEY: •  2013 Deloitte ASX200 Board

Effectiveness research shows growth through digital transformation is a risk management issue for Boards

•  The Australian Marketing

Institute says Marketing needs to demonstrate itself as a driver of growth and at the core of corporate strategy realisation & value creation*

PROCESS & PEOPLE IN UPHEAVAL: •  New customer purchase models

•  Digital orientation

•  Technology automation

•  Reach or impact

•  Agency roster complexity

•  Agency competencies changing

•  Media price or media value

•  In-house or outsourced

PURPOSE IS SHIFTING: •  In a recent CMO survey by

Accenture, 7 in 10 CMOs say marketing is changing fundamentally

•  65% of CMOs say digital is thread throughout the company but only 7% say they are leading edge at it

•  In the same survey, 56% say external partners are not helping to transform the marketing organisation

* Marketing’s Role in the Boardroom, AMI 2013


How to remodel for the new economy?

“Successful leadership is not about having all the answers

but about asking the right questions.”

- Robert S. Kaplan, Professor of Management,

Harvard University


1. Marketing Investment Planning ��– how much is enough and where should it be placed?

How much do you invest in Marketing: •  What is it as a percentage of revenue I

should allocate, relative to the strategy, like advertisers and the category?

•  What are the KPIs that are aligned with company strategy, customer, brand and communications?

How is your marketing investment balanced appropriately: •  What is you ration of production to creative

and media spend for each channel? •  How do your agencies and like advertisers

rate on this ratio, who spends most?

"Half the money I spend on advertising is wasted;

the trouble is I don't know which half.”

JOHN WANAMAKER


2. Optimising ROI��- how to drive efficiencies and deliver effectiveness?

How can you leverage greater value for resources at your disposal: •  Are you only managing for time &resource efficiency

as a driver of ROI? •  Is the volume & complexity of activity being rewarded

or are you incentivising desired outcomes? •  Can the global trends in multi-channel planning, and

production decoupling offer greater value? •  How are you managing to increase quality of

strategy, creative & execution. Why are each of your suppliers valued, and how do they create value for you: •  Are they measured by activity or outcomes? •  Are they measured by shared marketing KPIs, EAVs

or sales leads created? •  Are you still only focussing on CPM or moved to

more targeted customer value measurements? •  Are they remunerated via Payment by Results?


3. Digital Disruption��– what are the marketing mix and agency model impacts?

How does your business strategy, customer journey & communications execution come together: •  Do you have the right number & mix of agencies to

deliver the thinking & execution? •  Which agency mix is best placed to deliver digital &

social impact, effectiveness & efficiency? •  How do you remunerate & reward given multi channel

attribution issues? Is Payment by Results possible?

Do you have too many digital & social suppliers or not enough? •  Is there overlapping expertise & competition for

budget? •  Which are now must have offerings in your agency

network & which are optional? •  Where can you find more efficiency in your agency

mix?


4. Agency Strategic Alignment��- which partnership mix will best deliver?

How do you identify the right partners to take forward: •  Have you recently reviewed your needs through a 3S

framework – specialist, strategic and simple needs? •  Are you only focussing on rationalising your roster that

often result in reduced effectiveness?

Are you & your partners aligned by media they supply or by competency they bring: •  Where does multi-channel concept, creativity,

consolidation & distribution happen? •  What is the right mix for your business – vertical,

horizontal or a hybrid solution? •  Are you duplicating creative concept fees?

Are your suppliers part of a global or local network: •  Who is sharing the revenue on each campaign? •  And do you get enough leverage in bonus media,

management time or creative talent?


5. Creative outcomes for Commercial purpose��- how do we inspire creative thinking that delivers impact?

Are your suppliers’ innovative: •  Do they bring new ideas to the table? •  Or do they take them elsewhere? •  And why?

What remuneration, training & relationship management systems can you use to inspire creative thinking and drive innovation and commercial value? Are remuneration models and rate cards rewarding the value of creative idea or paying for costs by the hour? How can you benchmark creative resource strength and output for like advertisers?


6. The pace of change will increase further��- will it be exhilirating or exhausting for marketing & its agencies?

Are your briefing & agency management processes keeping pace: •  Are you still defining the campaign output by

agency or delving into the customer landscape? •  Where is there inefficiency & potential for

streamlining between agencies?

Are you benchmarking yourself regularly enough: •  Are your performance scorecards relevant? •  Are Rate Cards reflecting technology, competition

& globalisation efficiencies?

How will you buy evolving expertise in this new world: •  Do you have a capability & training plan in to

borrow expertise from specialists? •  How will you ensure maximum effectiveness

models are in place for media planning, television, digital & print production?


7. Effective relationships & streamlined models ��- how will we know if we’re all reaching our potential?

Is there a common purpose across all marketing teams &between agency partners?

How are you monitoring, measuring & managing all your relationships: •  What are your stakeholder views of strengths &

improvement areas? •  What are the areas for process & people

improvements •  Which agencies & staff need attention? How do you compare against like advertisers & agency structures?

What financial benefits can be derived from improvements?


Summary Much has changed in marketing with much more yet to come: •  Customers are disrupting value chains •  Digital disruption is across channels, media, creative,

content, production techniques •  Agencies & clients globally are reviewing

competencies and charging models

Marketing is an investment not an expense: •  Payment by results driving better business outcomes

is a new science

The key to marketing effectiveness is threefold: 1.  Align agency selection & remuneration directly with

your business, customer & brand strategies 2.  Improve marketing processes to drive better

outcomes, not just reducing costs 3.  Benchmarking costs & relationships regularly

5 years ago

2013

Agency Strategic Alignment

Multi-Channel Payment by Results

Evolving Customer Purchase Models

Agency Engagement

Broadcast Media & BTL/Onlline


To discover how we deliver greater marketing effectiveness, through ��agency alignment & efficiencies, contact:

TrinityP3 Pty Ltd Sydney

+612 8399 0922 Melbourne

+613 9682 6800 Hong Kong

+852 3589 3095 Singapore

+65 6884 9149

[email protected] www.trinityp3.com

@trinityp3 www.trinityp3.com/blog/ TrinityP3 Darren Woolley

7 marketing effectiveness challenges for the cmo in the new economy

Business