sbs - mcm - how to execute your marketing strategy - part 2

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THE MARKETING SHOW Advance Master in Creativity and Marketing Professor Laurent Bouty Brussels, 2015 MASTER IN CREATIVITY MANAGEMENT - THE MARKETING SHOW - © Prof. L. Bouty 2015 © JEN COLLINS @ Flickr

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THE MARKETING SHOW

Advance Master in Creativity and Marketing

Professor Laurent Bouty

Brussels, 2015

MASTER IN CREATIVITY MANAGEMENT - THE MARKETING SHOW - © Prof. L. Bouty 2015

© JEN COLLINS @ Flickr

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 2

WHY MARKETING EXECUTION CAN FAIL?

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 3

What can make a successful plan?

Failing

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 4

Did you know that companies loose up to

60%

of their strategy during implementation?

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 5

MARKET/MARKETING FAILURE

• SMALL SIZE OF THE POTENTIAL MARKET• NO CLEAR PRODUCT DIFFERENTIATION• POOR POSITIONING• MISUNDERSTANDING OF CUSTOMER NEEDS• LACK OF CHANNEL SUPPORT• COMPETITIVE RESPONSE

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 6

FINANCIAL FAILURE“The end of boo.com came on May 18th 2000, when investor funds could not be raised to meet the spiralling marketing, technology and wage bills.source: http://bit.ly/1ypMfJ5

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 7

TIMING FAILURE

• LATE IN THE MARKET• TOO EARLY - MARKET NOT YET DEVELOPED

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 8

TECHNICAL FAILURE

• PRODUCT DID NOT WORK• BAD DESIGN

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 9

ORGANISATIONAL FAILURE

• POOR FIT WITH THE ORGANISATIONAL CULTURE • LACK OF ORGANISATIONAL SUPPORT

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 10

ENVIRONMENTAL FAILURE

• GOVERNMENT REGULATIONS • MACROECONOMIC FACTORS

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 11

WHAT IS THE MOST IMPORTANT ASPECT OF STRATEGY EXECUTION?

“Failure to communicate strategy causes frontline

workers to invent their own strategy.”

survey respondent

Source: “How Hierarchy Can Hurt Strategy Execution”, Harvard Business Review, July-August 2010

23%

72%

SPELLING OUT STRATEGY IN CLEAR

LANGUAGE

STEERING MANAGERS TOWARD ALIGNMENT

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 12

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 13

17WHY MOST IDEAS FAIL Jeroen De Flander

THE 7 VILLAINS ON THE EXECUTION ROADIf we want our idea to be successful, we have to navigate

these powerful human complexities.

1. If we want people to understand our idea, we have to overcome the Curse of Knowledge.

2. If we want people to make the right choices, we have to combat the villain Decision Paralysis.

3. If we want to keep the core of our idea visible, we have to fight Message Distortion.

4. If we want others to challenge questionable deci-sions, we have to circumvent Mitigated Speech.

5. If we want the whole team to perform at peak level, we should tackle Golem.

6. If we want to speed up decisions, we should reduce CO2mplexity.

7. If we want people to keep pushing our idea forward, we have to outwit Willpower Depletion.

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 14

• Companies need to wake up and fix their initiative management

• Most leaders are poor strategy communicators

• Everybody agrees that skills are crucial to performance but few are able to build an adequate development platform

• The Strategy Execution process often fails

source: The strategy execution research report

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015

• Top-down or laissez-faire senior management style (9 of 12 cases)

• Unclear strategy and conflicting priorities (9 of 12 cases)

• An ineffective senior management team (12 of 12 cases)

• Poor vertical communication (10 of 12 cases)

• Poor coordination across functions, businesses or borders (9 of 12 cases)

• Inadequate down-the-line leadership skills and development (8 of 12 cases)

Source: The six silent killers of strategy implementation and learning, Michael Beer, Sloan Management Review Summer 2000

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6 SILENT KILLERS FOR STRATEGY EXECUTION

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 16

Photo: Flickr - Some rights reserved by Ametxa

Execution is a discipline of its own

Source: Jeroen De Flander

Insights from the best-in class

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015

Photo: Flickr - Some rights reserved by Dino ahmad ali

Execution is a vast area with blurred borders

Source: Jeroen De Flander

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Insights from the best-in class

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 18

Execution is on its way to maturity

Source: Jeroen De Flander

Insights from the best-in class

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015

51 Photo: Flickr - Some rights reserved by Dino ahmad ali

Execution requires a great strategy

Source: Jeroen De Flander

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Insights from the best-in class

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 20

Photo: Flickr - Some rights reserved by probe.ch

Execution requires your attention from the start

Source: Jeroen De Flander

Insights from the best-in class

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 21

Photo: Flickr - Some rights reserved by kamera.obskura

Execution has a strong timing sequence

Source: Jeroen De Flander

Insights from the best-in class

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 22

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Photo: Flickr - Some rights reserved by ordinaryfool

Execution requests an integration between organizational and individual performance

Source: Jeroen De Flander

Insights from the best-in class

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 23

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Execution demands clear responsibilities & requires horizontal alignment

Source: Jeroen De Flander

Insights from the best-in class

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 24

Photo: Flickr - Some rights reserved by Dino ahmad ali

Execution asks for measurement

Source: Jeroen De Flander

Insights from the best-in class

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 25

Photo: Le Corbusier Seat

Execution is a resident

Source: Jeroen De Flander

Insights from the best-in class

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 26

Photo: “The incredibles”, Pixar @ Disney

Execution needs heroes

Source: Jeroen De Flander

Insights from the best-in class

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 27

40 WAYS TO CRASH A PRODUCT LAUNCH (1/3)

Pre-Launch Phase

1 No market research on the product or the market has been done

2 Most of the budget was used to create the product; little is left for launching, marketing, and selling it

3 The product is interesting but lacks a precise market

4 The product’s key differentiators and advantages are not easily articulated

5 The product defines a new category, so consumers or customers will need considerable education before it can be sold

6 The sales force doesn’t believe in the product and isn’t committed to selling it

7 Because the target audience is unclear, the marketing campaign is unfocused

8 Distribution takes longer than expected and lags behind the launch

9 Sales channels are not educated about the product and thus slow to put it on shelves

10 The product lacks formal independent testing to support claims

11 The marketing campaign is developed in-house by the manufacturer and lacks objectivity

12 The product is untested by consumers; only the company can assert its benefits

13 The website is the primary place to order, but the product description is unclear and the site isn’t fully functional

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 28

40 WAYS TO CRASH A PRODUCT LAUNCH (2/3)

Launch Phase (1/2)

14 The product is launched too hastily and doesn’t work reliably

15 The launch is aimed at the wrong target audience

16 Supplies of the product are insufficient to satisfy orders

17 The product is launched too late for its key selling season

18 The product doesn’t fit into any key selling season

19 The manufacturer’s claims can’t be backed up

20 A governing body pulls the product, citing false claims

21 The product is given a limited “trial at retail” but without public relations, marketing, or promotion to “turn” it

22 The product is launched without influencers to promote its efficacy

23 The launch budget is insufficient to “pull” the product off the shelf

24 The product has no trained spokesperson to educate the media

25 Management launches the marketing campaign before distribution is complete

26 Management has promised the board and stockholders an instant hit without considering how much time is needed to educate consumers about the product

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 29

40 WAYS TO CRASH A PRODUCT LAUNCH (3/3)

Launch Phase (2/2)

27 The ad campaign is untested and ineffective

28 The launch campaign depends solely on PR to sell the product

29 The company spends the entire marketing/advertising budget at launch, so no funds are left to sustain the campaign

30 Company executives underestimate the value of Twitter and Facebook

31 Retailers are given no incentives to feature the product

32 All marketing dollars go to advertising and public relations, none to social media

33 Line extensions aren’t test-marketed as thoroughly as the original product, so they fail

34 The product is launched to capitalize on a fad that soon fizzles

35 The product design is unique but confuses consumers, who don’t understand how the product works

36 The spokesperson is a bad fit with the product, creating a discordant message

37 The product is priced too high for mass adoption

38 Consumers are unclear about what demographic the product is geared toward

39 The product is manufactured offshore; quality control issues result in negative consumer feedback and product returns

40 The ad campaign is launched before the sales force is fully briefed, so customers know more than salespeople about the product

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 30

WHAT HAVE WE LEARNED?

• Strategy can fail

• Bad “Communication” is primary reason for

failure

• Execution is a resident

• We can learn from failure

ADVANCED MASTER IN CREATIVITY AND MARKETING - THE MARKETING SHOW - © Prof. L. Bouty 2015 31

DAILY CHALLENGE

In your MARKETING EXECUTION LOG BOOK,

• For each of the 40 ways of crashing, your product, find examples illustrating each reason

• Write briefly what YOU would do for avoiding it.

REMINDER: This log book is yours and might help you in your future job.