sbs - mcm - how to execute your marketing strategy - part 2
TRANSCRIPT
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 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
15
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
17
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
19
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
54
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
55
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.