Norwich April 30th 2015

…fragmentation, marketing complexity, conversion and creativity…

Communications in the 21st Century

are you harnessing complexity

to build brand value

or is complexity managing you?

Peter Young

Academic Past - MA Law Oxford, MFA Drama Stanford, MA

Marketing & Innovation ARU LAIBS

“Working” life -

27 Years Brand Management (1966-93)

P&G 1966-1982 UK Spain Sweden Finland Switzerland Chile Argentina

Australia Portugal

Others 1982 - 1993 H&R Johnson Tiles, Silentnight Holdings,

Cinzano (IDV Diageo), BP Iberia Consumer Goods

20 years McDonald’s Franchisee and Marketing Coop V-P Spain

Today - Associate Lecturer - Marketing Communications - &

PhD Researcher on topics of Brand Management and

Brand Equity Release Programmes for SME’s at ARU LAIBS

Cambridge.

COMPLEXITY

LIFE IS COMPLICATED

Wake up time – watch TV

Boot the computer and go on line

Check the phone

Get in the car

A roundabout

COMPLEXITY IN BUSINESS

Make Money – simple!

Family &

Friends

Market

Analysis

Packaging

Finance &

Accounting

BUSINESS

IT Professional

Relations

Human

Resources

THE BANK

Legal Manufacturing/

Operations

Creative

Agency

Shareholders

Customers

Public

Relations

R&D

Logistics/

Distribution

THE BOSS/OWNER/MANAGER

Partners

SIMPLE?

COMPLEXITY IN MARKETING

Definitions of marketing – simple?

In 1993 Henley Management College researchers

studied 100 separate definitions of Marketing concluding

Marketing…..has allowed ambiguity to creep into its definition

and cause confusion. Definitional clarity is essential in future’

Marketing definition

In 2015 there is no universally agreed definition of marketing

And no agreed definition of what marketers do or should do

Marketing ought to be simple

“I want something from you (of value to me)”.

How do I get it? I have to give you something in return(of value

to you).

“What might you want (of value to you)…

“Which only I can give you?”

“Here is what I have. You want it. Only I have it. I want this from

you.”

“Let’s exchange.”

MARKETER CUSTOMER

CONSUMER

Simple - it’s all about customers

Simples in theory

Consumer

Research

Market

Analysis

Packaging

Finance &

Accounting

MARKETER

IT Professional

Relations

Human

Resources

Legal

Operations

Advertising

Specialists

Sales/

Key Accounts

Public

Relations

R&D

Logistics

Competition

Partnership

CUSTOMER

CONSUMER

The Boss

Ethics

Greenery

Global

Marketing

Value Chain

Connectivity

The Board

Shareholder

The Internet

Supply Chain

Politics

Trade

Marketing

Gurus

PEST

SWOT

DAGMAR

Relationship

Management

Marcomms

Theory

‘P’

Inflation

Time

Management

Team

Building

CIM

Societal

Marketing

P

E

O

P

L

E

I

D

E

A

S

Manufacturing

Family &

Friends

Networks

Brand

Equity

NOT SO

SIMPLES IN

PRACTICE!

COMPLEXITY IN MARKETING

COMMUNICATIONS

Marketing communications

simple

To whom am I talking (the target)? (SEGMENTATION)

What am I saying - is it persuasive - does it diferentiate? (THE

MESSAGE/CONTENT/VALUE PROPOSITION/USP)

How do I deliver the message and how often? (MEDIA)

Experts – writers, consultants and…

Marshall McLuhan

Chris Fill

David Ogilvy

Kevin Roberts

De Pelsmacker

Et al…..

Experts - agencies old & new

Figure 2.1 A linear model of communication Source: Based on Schramm (1955) and Shannon and Weaver (1962)

Experts - teachers

Figure 2.2 The influencer model of communication

And teachers

Figure 1.4 The system of marketing communications

And teachers

Figure 2.4 The interactional model of communication

And teachers

Table 8.5a A summary of media characteristics

And teachers

Table 8.5b A summary of media characteristics (Continued)

And teachers

Table 8.5c A summary of media characteristics (Continued)

And teachers

Table 1.3 The developing orientation of marketing communications

And teachers

Table 1.4 The 4Cs Framework – a summary of the key characteristics of the

tools of marketing communications

And teachers

Figure 1.3 The relative effectiveness of the tools of the marketing

communications mix

And teachers

Table 1.5 Differences between consumer and business-to-business

marketing communications

And teachers

COMPLEXITY IN DIGITAL

COMMUNICATIONS

Display? Search? Desktop? Laptop? Tablet? TV? Radio?

Print? Twitter? Pinterest? Digital? Google? Face book?

YouTube? Twitter? Instagram? Tumbler? Snapshot?

Blippar?

Life wasn’t always this way

Business wasn’t always this way

Marketing wasn’t always complex

Marketing communications weren’t

always complex

HOW DID WE GET HERE?

“If you would understand anything, observe

its beginning and its development”.

Aristotle

We are all “marketers”

A “marketer” tailors an offer to meet or anticipate

the needs or desires of another and stimulates an

acceptance action which delivers benefit to both

actors – offerer and accepter

We market pretty well as cells

We “market” pretty well as flora…

And as fauna

We “market” pretty well as individuals

And in commerce too - one to one

Brands are ancient history

Commercial brands began some 5,000 years ago in

Mesopotamia when traders needed some assurance of the

value and origins of oils, wines and other products.

…labels and stoppers on ancient containers actually functioned

as brand identifications

(Current Anthropology 2008)

Pre industrial revolution brands

Schloss Johannisberg (1100 AD)

Chateau de Goulaine (1000)

The Bingley Arms (953)

Antinori (1385)

Cambridge University Press (1534)

Mulliner (1599)

Hoares Bank (1672)

Ede and Ravenscroft (1689)

Chyawanprash (10000 -500 BC)

AND IN YOUR SHOPS NOW

PROBABLY WITH A

BUY 1 GET 1 FREE

18th – 19th Century

Wedgewood

Coca Cola

Uncle Bens Rice

Kellogg

Sunlight

Pears

Ivory

Lyle’s Golden Syrup

From 1777

Picasso and Monet – 19th Century

Mad Men

10.000bc – 1900ad simple

No Ad Agencies

No Nielsen

No Consultants

No Writers

No Gurus

No Teachers

MARKETER

CO-MARKETING

CONSUMER

ETHICS

GREEN

MARKETING

GLOBAL

MARKETING

VALUE CHAIN

CONNECTIVITY

CO-CREATION

SUPPLY CHAIN

TRADE

MARKETING

PEST

AIDA

SWOT

THE

3

PHILOSOPHIES

SME

MARKETING

RELATIONSHIP

MANAGEMENT

HE

MARKETING

10 + ‘P’s

INFLATION

SERVICE BASED

MARKETING

SOCIETAL

MARKETING

I

D

E

A

S

I

D

E

A

S

NETWORK

MARKETING

BRAND

EQUITY

BEHOLD THE 20th Century

DAGMAR

SUSTAINABLE

MARKETING

B2B &

B2C

CROSS

CULTURAL

MARKETING

SECTOR

MARKETING NEW

MARKETING

7 ‘C’s

ARTS

MARKETING

PUBLIC

SECTOR

MARKETING

SERVICE

DOMINANT

LOGIC

SOCIAL

MEDIA

HERITAGE

MARKETING

MARGINALISED

&

SOCIALLY

EXCLUDED

GROUPS

MARKETING

SERVQUAL

TOXIC

BRAND

MANAGEMENT

GUERRILLA

MARKETING

What happened in 20c

As soon as you get competition you get brands

More competition – more brands

More brands – more advertising $$$$$$

More advertising $$$$ –

more Advertising Agencies

More Academics

More consultants

Modern marketing born in the USA(c. 1910)

North America Population

1800 7 million

1850 26 million

1899 82 million

1950 172 million

A lot of people. A lot of income. And a lot of competition.

So in just 100 years

Here we are

LIFE - COMPLEX

BUSINESS - COMPLEX

MARKETING - COMPLEX

MARKETING COMMUNICATIONS - COMPLEX

DIGITAL COMMUNICATIONS - COMPLEX

Let’s stop and think

Marketing at work

OVER 100 YEARS OF PRACTICE SO..

OVER 100 YEARS OF PRACTITIONERS

PRACTITIONERS’ANNIVERSARIES

William Norris

Sons in Law 1830

WILLIAM PROCTER & JAMES GAMBLE

Ralph Starr Butler

LEAVES A JOB IN P&G

SALES IN 1911

TO TEACH AND WRITE

(1915) AT WISCONSIN UNI.

THE FIRST USE OF THE WORD

“MARKETING” IN A MODERN

SENSE

Paul “Doc” Smelser

PHD JOHNS HOPKINS UNIVERSITY PhD

RIDES THE RAILWAY TO OHIO

TO MODEL PRICING OF

COMMODITIES FUTURES AT P&G

Father of market research 1925

Neil McElroy

P&G mailboy - salesman -

brand manager- CEO – US

secretary of defense 1957-

1959

With friend (on left) 1958

The memo

Neil McElroy brand management

1st BRAND MANAGER OF NASA

1958

Marketer of the century

1999 – 2000 marketer of the

20th century

So what is special about P&G in

21st Century?

For a student

For a teacher

For a practitioner

2015 P&G today markets over 300

brands globally

Complex?

Not if each brand is managed as a

standalone business

2015 P&G today markets over 300 brands globally– each brand

a discrete business with its own dedicated “Brand Manager”

Who manages complexity

Research

Market

Analysis

Packaging

Finance &

Accounting

BRAND

MANAGER

IT Professional

Relations

Human

Resources

Legal

Operations

Advertising

Specialists Sales/

Key Accounts

PR

HARNESS DISTRACTIONS AS TOOLS

R&D

Logistics

Competition

Partnership

CONSUMER

Boss

Ethics

Greenery

Global

Marketing

Value Chain

Connectivity

The Board

Shareholder

The Internet

Supply Chain

Politics

Trade

Marketing

Gurus

PEST

SWOT

DAGMAR

Relationship

Management

Marcomms

Theory

‘P’

Inflation

Time

Management

Team

Building

CIM

Societal

Marketing

Manufacturing

Family &

Friends

Networks

Brand

Equity

P&G managing complexity

Every Brand has a Manager

He/she reports to CEO via 6 Brand Managers – all current or ex-Brand

Managers

EVERY CEO (10 since 1930) is an ex Brand Manager

SIMPLE

And the P&G business model is

Simple

CLEAR OBJECTIVES

CLEAR STRATEGY

P&G business model - build brand

value

“We build consumer preferred brands and products that create

value for consumers, customers and shareholders”.

Alan Laffley CEO The Procter & Gamble Co.

P&G assets

Intangibles

AND THAT EXCLUDES BRANDS “CREATED IN-HOUSE”

P&G managing complexity –

objectives & strategy

Every Brand has a Manager who…

Has clear and simple objectives – to build Brand perceived equity/value

Primarily via Communication (Advertising)

Until late 20th Century P&G Marketing Departments (Brand

Management) were titled “Advertising Dept”

P&G brand building model via

communication …simple

.. define who the target consumer is.

.. define what the brand equities are

..define how to bring those equities to life through a

brand promise

that expresses an idea that connects with

consumers at three moments of truth (zero, 1 and 2)

And that leads to awareness, trial, household penetration , consumer purchase, preference,

regular usage and long term loyalty”.

COMPLEXITY – what is different

about digital communications?

In essence - nothing

P&G managing complexity –

digital (in common with all

communication)

DIGITAL

BUILD BRAND VALUE

The message is all – media is simply for delivery.

The message (copy/creative) strategy has clear and simple objectives -

to differentiate and persuade consumers to buy the Brand in preference

to the competition

Functional/cognitive

Affective/emotional

Display? Search? Desktop? Laptop? Tablet? TV? Radio?

Print? Twitter? Pinterest? Digital? Google? Face book?

YouTube? Twitter? Instagram? Tumbler? Snapshot?

Blippar?

The connected marketplace

The connected Marketplace as a

medium of communication

As is was

So it is again

WORD OF MOUTH IS BACK

Back to the future

Figure 2.3 One-step model of communication. T = member of the target

audience

Figure 2.4 Two-step model of communication. OL = opinion leader

Figure 2.5 Multi-step model of communication

Figure 2.4 The interactional model of communication

From theory to practice

IT CAN NOW BE DONE - AGAIN

P&G communication

How to optimise these constantly changing platforms?

Reach people. Touch them. Enter their conversations. Get into their lives?

To spread the word!

P&G digital communication

“The best campaigns today flourish across multiple platforms.

They become part of people’s lives not because they have to

watch them but because people are drawn into them”.

The route to effective digital

communication

Win your way into the conversation

Steer the conversation

The route to effective (not just

digital) communication

1. Start with something true. A true human insight always was

and always will be the starting point for any idea that touches

people.

2. Consider why anyone would care. How can you tap into

something that people really care about?

3. Make your brand matter. Because there is no point in starting

a conversation that your brand can’t be an authentic part of.

Something true.

57 million hits 3 mins

Consider why anyone would care.

Consider why anyone would care.

Make your brand matter.

16 million hits Pantene 1 min

Pantene Philipines

Make your brand matter.

16 million hits Pantene 1 min

The power of Advertising and

Grandad’s after shave

Grandad’s after shave viral 2010

Grandad’s after shave 2010

50 million hits

Grandad’s after shave 2015

3 million hits so far

Grandad’s viral after shave 2015

What does P&G teach us?

Perception is everything

The only “comercial” reality is perceived reality

As a Brand Manager you MAY manage reality

As a Brand Manager you MUST manage the perception of Brand

value – that is what makes you perceived as different

That is what separates us from them

In summary

Marketing is all about Brand Management – Brand Management is the Operationalisation of Marketing at the core

A “Best Practice” approach to Brand Management has been exemplified by P&G for 175 years

The objective of brand management is to identify, create and develop perceived brand value (and ideally quantify it on a balance sheet)

The weapon deployed to develop brand value is effective marketing communications.

The enemy of effective brand management and the sharpened lance of communication is complexity

You/I/we can effectively manage complexity– P&G shows us how to do that by…….

P&G basics

The secret is to have clear responsibility , clear accountability AND clear objectives, .

It is the message – the content – “Copy” – Creative – that delivers perceived value. Not the media, not the tools – the message.

For effective Communication Digital and social networks are no different from any other media – they are particularly complex creative challenges but offer particular creative opportunities.

The basic principles of effective creative – be true – consider that someone cares – make your brand matter - are a road map to effectivity.

The basic principles work across all platforms present, past and future

Above all differentiate

Advice – back to basics in Digital

1. Don’t treat digital as strategically different

2. Use creative ideas as the key – get your brand into the conversation and control the message

3. Differentiate - differentiate – differentiate

As a Brand Manager you MUST manage the perception of Brand value – that is what makes you perceived as different

BIG BRANDS – SMALL BRANDS

GLOBAL BRANDS – LOCAL BRANDS

GIANT CORPORATIONS – SME’s

B2C & B2B BRANDS

Commercial Brands

Political Brands

Charity Brands

Geographical Brands

Advice – back to basics in 21c

Communication

1. Be a brand manager

2. Take ownership of the brand’s perceived value/equity –

easy/hard/very hard

3. Have clear objectives for the perception of your brand(s)

4. Identify – quantify – develop perceived brand value/equity

5. Educate the Boss (or yourself if you are the Boss)

Something people care about

Dove 66 million hits 3 min

CIM East of England | SPRING MARKETING CONFERENCE | 30 April 2015

Time for a drink