Marketing Marketing LeadershipLeadership

Businessworld Businessworld in cooperation with Pearl2in cooperation with Pearl2

Sofitel Philippine Plaza, February 22, 2008Sofitel Philippine Plaza, February 22, 2008

Willy ArcillaWilly Arcilla

MarketingMarketing is Not Just About . is Not Just About . . .. .

• SellingSelling• Special Price-Off Coupons in K/ASpecial Price-Off Coupons in K/A• AdvertisingAdvertising• Publicity StuntsPublicity Stunts• Celebrity Endorsements Celebrity Endorsements • ““New, Improved! . . . Packaging”New, Improved! . . . Packaging”• New Flavors or ColorsNew Flavors or Colors• Building “Brand Image”Building “Brand Image”• Asking for & Spending More A&P Asking for & Spending More A&P

BudgetsBudgets• Hyper ‘Bola’Hyper ‘Bola’

Marketing Marketing Is Not Just a Subject, Is Not Just a Subject, Department, Function or Department, Function or

DisciplineDiscipline

MarketingMarketing is a Way of Life – is a Way of Life – a Philosophy of Doing a Philosophy of Doing

BusinessBusiness

““MarketingMarketing is very is very

important; in fact, far important; in fact, far

too important to be left too important to be left

to Marketing people.”to Marketing people.”

MarketingMarketing

Marketing’s Marketing’s raison d’etreraison d’etre is to is to enhance the value proposition of a enhance the value proposition of a

company’s brands in order to company’s brands in order to convince target consumers to prefer convince target consumers to prefer one’s brands over the competition, one’s brands over the competition, influence their attitude and drive influence their attitude and drive

their behavior.their behavior.

F1 Pitstop Crew 7-12

seconds

Simple Yet DifficultSimple Yet Difficult

““What’s in it for me?”What’s in it for me?”

““Why should I switch?”Why should I switch?”

Marketing Leadership Marketing Leadership

• MarketingMarketing – What any Entity – What any Entity Must DoMust Do• LeadershipLeadership – What any Entity – What any Entity Must HaveMust Have • Marketing LeadershipMarketing Leadership – Marketing- – Marketing-

Driven, Consumer-Oriented, Customer-Driven, Consumer-Oriented, Customer-FocusedFocused

• Leadership MarketingLeadership Marketing – Excellence in – Excellence in Quality of Products & Services; Quality of Products & Services; Innovations & Operations; Marketing Innovations & Operations; Marketing Programs in MarketPrograms in Market

• Market LeadershipMarket Leadership – The Ultimate Reward – The Ultimate Reward

Marketing LeadershipMarketing Leadership1.1. Do Your HomeworkDo Your Homework2.2. Invest in Research Invest in Research 3.3. Take it to the Next LevelTake it to the Next Level4.4. Build/Reinforce Equity Based on Strong BPSBuild/Reinforce Equity Based on Strong BPS5.5. Reinvent Your Brand without Losing EssenceReinvent Your Brand without Losing Essence6.6. Do More with LessDo More with Less7.7. Find Creative Solutions to Solving ProblemsFind Creative Solutions to Solving Problems8.8. Take Calculated Risks & Learn from Mistakes Take Calculated Risks & Learn from Mistakes 9.9. Prioritize Your OptionsPrioritize Your Options10.10.Expand Your HorizonsExpand Your Horizons11.11.Build Your People to Build Your BrandsBuild Your People to Build Your Brands12.12.Integrate & Synthesize the Whole BusinessIntegrate & Synthesize the Whole Business

Marketing LeadershipMarketing LeadershipLeadership MarketingLeadership Marketing

1.1. Do Your Homework – Study. Read. Learn. Listen. To Do Your Homework – Study. Read. Learn. Listen. To Consumers, Competitors, Customers, Company, Consumers, Competitors, Customers, Company, Sales, R&D, Suppliers, Friends & Foes, Family & Sales, R&D, Suppliers, Friends & Foes, Family & Consultants.Consultants.

1.1. Be Market-Oriented. Consumer-Driven. Fact-Based.Be Market-Oriented. Consumer-Driven. Fact-Based.2.2. Study the History of Your Industry, Company, Brand.Study the History of Your Industry, Company, Brand.3.3. Do your SWOT. Do your SWOT.

2.2. Invest in Research –Invest in Research –1.1. If you think the price of EDUCATION is expensive, imagine If you think the price of EDUCATION is expensive, imagine

the cost of IGNORANCE (because ultimately Consumer IS the cost of IGNORANCE (because ultimately Consumer IS the Boss!)the Boss!)

2.2. I believe in Research but NOT in Researching EVERYTHING I believe in Research but NOT in Researching EVERYTHING (Because Gutfeel/Judgment/Wisdom Improves Over Time)(Because Gutfeel/Judgment/Wisdom Improves Over Time)

Marketing LeadershipMarketing LeadershipLeadership MarketingLeadership Marketing

3. Take it to the Next Level –3. Take it to the Next Level –1.1. In All Aspects of the Marketing Mix (6 Hard P’s + 6 Soft P’s)In All Aspects of the Marketing Mix (6 Hard P’s + 6 Soft P’s)2.2. Every Year, Every Month, Every Week, Every DayEvery Year, Every Month, Every Week, Every Day3.3. Live Olympic Spirit: Citius, Altius, Fortius (Faster, Higher, Stronger)Live Olympic Spirit: Citius, Altius, Fortius (Faster, Higher, Stronger)

1.1. World Class Marketing is Defined in terms of Quality, Speed & CostWorld Class Marketing is Defined in terms of Quality, Speed & Cost4.4. Products/Services & Packaging Must Get Better, Pricing & Value Better, Products/Services & Packaging Must Get Better, Pricing & Value Better,

Advertising Effectiveness & Media Efficiency Better, Sales & Advertising Effectiveness & Media Efficiency Better, Sales & Distribution Executional Excellence Better. Distribution Executional Excellence Better.

5.5. Success is Perishable. Who could have imagined that . . .Success is Perishable. Who could have imagined that . . .1.1. Toyota > General MotorsToyota > General Motors2.2. GMA7 > ABS-CBN2GMA7 > ABS-CBN23.3. Philippine Star > Philippine Daily Inquirer > Manila BulletinPhilippine Star > Philippine Daily Inquirer > Manila Bulletin4.4. Cebu Pacific > PAL (Domestic Market)Cebu Pacific > PAL (Domestic Market)

6.6. Simon Cowell – Tells the truth to challenge contestantsSimon Cowell – Tells the truth to challenge contestants

7.7. Andrew Carnegie, “Learn to Say NO to the Good, So You Can Say YES Andrew Carnegie, “Learn to Say NO to the Good, So You Can Say YES to the Best!”to the Best!”

8.8. Keifer Sutherland, “One of the ways the show keeps refreshing itself is Keifer Sutherland, “One of the ways the show keeps refreshing itself is by introducing new characters to replace the dead ones and allowing by introducing new characters to replace the dead ones and allowing the remaining characters to grow.the remaining characters to grow.

4.4. Build or Reinforce Brand Equity w/ Powerful Marketing Programs and Build or Reinforce Brand Equity w/ Powerful Marketing Programs and Excellent Communications Campaigns, Building Upon Strong Brand Excellent Communications Campaigns, Building Upon Strong Brand Positioning Statements which are Important, Specific & Unique to Positioning Statements which are Important, Specific & Unique to Consumers that are Anchored on Simple yet Powerful InsightsConsumers that are Anchored on Simple yet Powerful Insights

1.1. Intel Inside, Mastercard Priceless, Singapore Girl, Absolute VodkaIntel Inside, Mastercard Priceless, Singapore Girl, Absolute Vodka2.2. URC: C2 Campaign & NovaURC: C2 Campaign & Nova

5.5. Reinvent Your Brand – Constantly – Without Losing Your EssenceReinvent Your Brand – Constantly – Without Losing Your Essence1.1. Good Examples – Apple, Adidas, McDonald’s, Levi’s Copper CollectionGood Examples – Apple, Adidas, McDonald’s, Levi’s Copper Collection2.2. Safeguard – For Superior Skin-Germ Protection – the Rock of GibraltarSafeguard – For Superior Skin-Germ Protection – the Rock of Gibraltar

6. Accept That You Will Have to Relentlessly “Do More with Less”6. Accept That You Will Have to Relentlessly “Do More with Less”1.1. You Will Never Have Enough A&P (ex., Coca-Cola in China w/ US$100M)You Will Never Have Enough A&P (ex., Coca-Cola in China w/ US$100M)2.2. Raise Productivity of A&P BudgetRaise Productivity of A&P Budget

1.1. Effective Advertising (Demand it from the Creative Ad Agency)Effective Advertising (Demand it from the Creative Ad Agency)2.2. Efficient Media (ex., Apple MacIntosh Launch Jan 24, 1984 Superbowl)Efficient Media (ex., Apple MacIntosh Launch Jan 24, 1984 Superbowl)3.3. Restore Credibility in Effective Advertising, i.e. Advertising that SellsRestore Credibility in Effective Advertising, i.e. Advertising that Sells

3.3. Turn PR into a Competitive EdgeTurn PR into a Competitive Edge1.1. More Credible vs. Commercial Advertising, but Don’t Sensationalize like RP MediaMore Credible vs. Commercial Advertising, but Don’t Sensationalize like RP Media2.2. Some Brands Have NO Advertising, ex. Starbucks, Google, Viagra. Body ShopSome Brands Have NO Advertising, ex. Starbucks, Google, Viagra. Body Shop

4.4. Forge Strategic Marketing Partnerships w/ Complementary Products/BrandsForge Strategic Marketing Partnerships w/ Complementary Products/Brands

Marketing LeadershipMarketing LeadershipLeadership MarketingLeadership Marketing

7. Learn to Think Creatively so You Can Offer Creative Solutions 7. Learn to Think Creatively so You Can Offer Creative Solutions to a Variety of Business/Marketing Issuesto a Variety of Business/Marketing Issues

• Ex. “In Your Strength Lies Your Weakness” (Concorde Ex. “In Your Strength Lies Your Weakness” (Concorde Supersonic Jet)Supersonic Jet)

• Coke Story – 1985 – New Coke BlunderCoke Story – 1985 – New Coke Blunder• Pepsi Story – Losing the Cola War was a BlessingPepsi Story – Losing the Cola War was a Blessing

8. Prioritize your options, applying principles of economics 8. Prioritize your options, applying principles of economics (optimum allocation of scarce resources). You can’t afford (optimum allocation of scarce resources). You can’t afford to or physically do everything simultaneously. Pick your to or physically do everything simultaneously. Pick your battles and be decisive.battles and be decisive.

• Which One? Which One? Market (Regional) Market (Regional) Industry Industry Category Category Brand Brand 4 Ps 4 Ps A vs. P, TVC Production vs. Media, Consumer A vs. P, TVC Production vs. Media, Consumer vs. Trade Promo vs. Trade Promo

9. Take Calculated Risks & Learn from Mistakes9. Take Calculated Risks & Learn from Mistakes• Mr. John Gokongwei is Happy w/ 1 Hit out of 5 “Swings”Mr. John Gokongwei is Happy w/ 1 Hit out of 5 “Swings”• When in Doubt, Test with ConsumersWhen in Doubt, Test with Consumers• Learn from Mistakes Committed by Others, e.g., Post-Mortems Learn from Mistakes Committed by Others, e.g., Post-Mortems

or Mortality/Morbidity Conferences of Physicians Whenever a or Mortality/Morbidity Conferences of Physicians Whenever a Patient Dies in Their Care Patient Dies in Their Care This Requires Humility & Maturity This Requires Humility & Maturity

Marketing LeadershipMarketing LeadershipLeadership MarketingLeadership Marketing

10. Expand your Horizons.10. Expand your Horizons.1.1. Think Beyond your Industry to learn and “practice” Think Beyond your Industry to learn and “practice”

your principles of Marketing because you are your principles of Marketing because you are talking to the SAME consumer. Ex., FMCG talking to the SAME consumer. Ex., FMCG Fashion, Retail, Real Estate, Banking, Pre-Need Fashion, Retail, Real Estate, Banking, Pre-Need Plans, Media, Telecoms (Service or Units) Plans, Media, Telecoms (Service or Units) Automobile, Appliances.Automobile, Appliances.

2.2. Go Beyond your Borders (Travel to more advanced Go Beyond your Borders (Travel to more advanced markets and spend time observing consumers). markets and spend time observing consumers). • Ex., Learn from similar but more advanced countries, e.g., Ex., Learn from similar but more advanced countries, e.g.,

Malaysia ($5000 pc inc) vs. the Philippines ($1000 pc inc)Malaysia ($5000 pc inc) vs. the Philippines ($1000 pc inc)• Go to Shanghai and see the world’s newest product and Go to Shanghai and see the world’s newest product and

package innovations as the whole world competes there.package innovations as the whole world competes there.• Benchmark against the best in the world.Benchmark against the best in the world.

Marketing LeadershipMarketing LeadershipLeadership MarketingLeadership Marketing

11. Bring Out The Best in Your People to Enable 11. Bring Out The Best in Your People to Enable Them to Bring Out the Best in Your Brands.Them to Bring Out the Best in Your Brands.

12. After Mastering your Profession in Marketing, 12. After Mastering your Profession in Marketing, Learn to Learn to Integrate & SynthesizeIntegrate & Synthesize All the All the Components of the Business, e.g., Sales & Components of the Business, e.g., Sales & Distribution, R&D and Manufacturing, Finance Distribution, R&D and Manufacturing, Finance & Accounting, Purchasing & Logistics.& Accounting, Purchasing & Logistics.

1.1. Be a Salesman, a Promotion Girl, a Merchandiser.Be a Salesman, a Promotion Girl, a Merchandiser.2.2. Go on Sales Training to Gain Experience & Respect.Go on Sales Training to Gain Experience & Respect.3.3. Understand Basics of Manufacturing & Engineering.Understand Basics of Manufacturing & Engineering.4.4. Learn Purchasing, Warehousing, Logistics.Learn Purchasing, Warehousing, Logistics.5.5. Review your P&L, Balance Sheet, Cashflow, DCF.Review your P&L, Balance Sheet, Cashflow, DCF.

Marketing LeadershipMarketing LeadershipLeadership MarketingLeadership Marketing

12 P’s of Marketing12 P’s of Marketing 6 P’s of Marketing 6 P’s of Marketing MixMix

•4 P’s of Marketing – by Philip Kotler4 P’s of Marketing – by Philip Kotler– ProductProduct– PricePrice– PromotionsPromotions– PlacePlace

•2 P’s of Marketing2 P’s of Marketing– PackagingPackaging– PublicityPublicity

6 P’s of the Marketing Man6 P’s of the Marketing Man

Professionalism

Passion

Positive Outlook

& Perseverance

Problem-Solving Skiills

Participative & People-Oriented

Persuasive

•6 P’s of Marketing Man6 P’s of Marketing Man– ProfessionalismProfessionalism– PassionPassion– Perseverance and Positive Perseverance and Positive

OutlookOutlook– Problem-SolvingProblem-Solving– PersuasivenessPersuasiveness– Participative and People-OrientedParticipative and People-Oriented

•PartneringPartnering

12 P’s of Marketing12 P’s of Marketing 6 P’s of Marketing 6 P’s of Marketing ManMan

3 Types of Entrepreneurs3 Types of Entrepreneurs

•Classic EntrepreneurClassic Entrepreneur

•Social EntrepreneurSocial Entrepreneur

•Corporate Entrepreneur Corporate Entrepreneur – IntrapreneurIntrapreneur

Role of the Corporate Role of the Corporate EntrepreneurEntrepreneur

1.1. Lead and motivate employees to Lead and motivate employees to achieve business goals of the company achieve business goals of the company and deliver returns for Classic and deliver returns for Classic EntrepreneurEntrepreneur

2.2. Bring out the best in your people to Bring out the best in your people to enable them to bring out the best in the enable them to bring out the best in the company’s brands and businesses.company’s brands and businesses.

3.3. Foster a sense of ownership w/ Foster a sense of ownership w/ employees – precisely what employees – precisely what entrepreneurs look for.entrepreneurs look for.

““How Do I Become an How Do I Become an Entrepreneur?”Entrepreneur?”1.1. Teach a nation to fish; you feed a nation for life. Teach a nation to fish; you feed a nation for life.

[But we need more than sustenance fishermen].[But we need more than sustenance fishermen].

2.2. Be bold. Be brave. Mighty forces will come your Be bold. Be brave. Mighty forces will come your way. The greatest risk is not to take any at all.way. The greatest risk is not to take any at all.

3.3. Gain experience. Gain experience. 1.1. ““Get employed. Learn everything. Then leave.” – John Get employed. Learn everything. Then leave.” – John

GG

4.4. Entrepreneurship is innate in the FilipinoEntrepreneurship is innate in the Filipino1.1. Sari-Sari Stores, Tricycles, Jeepney, FX TamarawSari-Sari Stores, Tricycles, Jeepney, FX Tamaraw

2.2. Don’t follow the crowd – “bandwagon effect” – gaya2Don’t follow the crowd – “bandwagon effect” – gaya2

5. We need to shift to High Gear. Take Pinoy 5. We need to shift to High Gear. Take Pinoy Entrepreneurship to a Whole New Altitude.Entrepreneurship to a Whole New Altitude.

““How Do I Become an How Do I Become an Entrepreneur?”Entrepreneur?”6.6. Guerilla Marketer – 3 New Secrets – Guerilla Marketer – 3 New Secrets –

InvENT. ImprovemENT. DifferENT. InvENT. ImprovemENT. DifferENT. 7.7. Find your TalENT.Find your TalENT.8. Think positive. 8. Think positive.

1.1. ““WWII was the great equalizer.” -- JGWWII was the great equalizer.” -- JG2.2. Look at globalization positively. Look at globalization positively.

1.1. Yes, foreign competitors are coming in.Yes, foreign competitors are coming in.2.2. But your market is bigger But your market is bigger RP RP ASEAN ASEAN Asia Asia

9. Consider franchising – 90% success rate.9. Consider franchising – 90% success rate.10.Two kinds of people – Swindler & Sucker.10.Two kinds of people – Swindler & Sucker.

Filipino Brands Expanding Filipino Brands Expanding OverseasOverseas

#1 Filipino Brand Oversea

s

Don’t Overlook Halal Market Estimated at US$600B!

9. Emergence of Local Brands9. Emergence of Local Brands

1. Appliances1. Appliances

2. Electronics2. Electronics

3. Digital Cameras3. Digital Cameras

4. Cellphones4. Cellphones

5. MP3s5. MP3s

6. Computers6. Computers

7. Printers7. Printers

8. Bicycles8. Bicycles

9. Motorcycles9. Motorcycles

10. Cars10. Cars

But When Will We See But When Will We See Higher-Higher-ValueValue Filipino Brands Beyond Filipino Brands Beyond

Processed Food & Drinks, Processed Food & Drinks, Fastfood & Fashion Apparel?Fastfood & Fashion Apparel?

Filipino InventorsFilipino InventorsEduardo San Juan - Filipino

Inventor: Mechanical engineer, San Juan worked on the team that invented the Lunar Rover or Moon

Buggy. He is considered the primary designer.

In 1971, the Rover was used in the Apollo 12 landing to explore

the Moon.

Daniel Dingel - Water-Powered Car or Water-Powered Hoax?: Filipino inventor, Daniel Dingel designs cars that run on water. The Philippine Daily Inquirer reported that Daniel Dingel built a water-fueled automobile engine as

early as 1969. Dingel has no patents and many members of the science community feel that his water-powered car is a hoax. However, Daniel Dingel has demonstrated his

car without any technical papers or explanation as to how it works. And if it does work, it would be a fantastic

invention.Daniel Dingel - Claims: Daniel Dingel claims his engine has a chamber that breaks apart water molecules to produce

combustible hydrogen. Electricity from a 12-volt car battery is used to split the water molecules into hydrogen and oxygen components, with the hydrogen then used to

power the engine.

Filipinos Have the Entrepreneurial Filipinos Have the Entrepreneurial Spirit; We Must Take it Beyond the Spirit; We Must Take it Beyond the

“20“20thth Century” Century”

Splash Manufacturing

“Teach a nation to fish and

you feed a nation for a lifetime.”

Dennis Mendiola

Raul Concepcion

16 years old UP BS

Physics 2007 Summa Cum

Laude

Mikaela Fudolig

““We have upon us a knowledge-based We have upon us a knowledge-based economy … and nothing could be of economy … and nothing could be of

greater strategic value to a nation than greater strategic value to a nation than the ability to the ability to generategenerate new new

knowledge & technologiesknowledge & technologies if we if we don’t want to be the modern-day don’t want to be the modern-day ‘hewers-of-wood’ and ‘bearers-of-‘hewers-of-wood’ and ‘bearers-of-water’ of a 21water’ of a 21stst century global century global

economy.”economy.”

Dr. Rey Vea

President Mapua Institute of Technology

Dado Banatao

Norberto Quisumbing

1. 5 “B” Innovations – 1. 5 “B” Innovations – MadeMade in in RPRP

A Nation Run Like A Nation Run Like HeavenHeaven By By FilipinosFilipinos

Willy E. ArcillaWilly E. ArcillaPresident, Business Mentors, Inc.President, Business Mentors, Inc.Regional Director, ZMG Ward Howell, Inc.Regional Director, ZMG Ward Howell, Inc.

warcilla@wardhowell.com.phwarcilla@wardhowell.com.phTel: 816-2466Tel: 816-24660917-88042960917-8804296

Salamat at Salamat at Mabuhay!Mabuhay!