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Consumer Behaviour My, how time flies when you’re having fun. We’re already into our third issue of Global CMO The Magazine, and we’re just going from strength to strength. Our family here is growing with a new Media Partner in BizRadio, multiple new events being endorsed (thanks to IQPC and Localisation World), plus Global Marketing Network welcomes three new members to it’s Global Advisory Council. All of our regulars are back again for another jam-packed 76 pages of Marketing tastiness.
Issue 3 | Volume 1
May 2013
Improving The Industry Through Global Accreditation Darrell Kofkin
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Currencies Of Change David Mattin
Marketing Leaders Of Tomorrow Get Published - And WIN A GMN Fellow As Mentor For A Year!
A Model Approach To Wine Marketing James MacAskill fgmn
Bridging The Gap Andrew Vesey
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We have everything from how to turn your customers into co-designers by Michael Solomon, through to James MacAskill and Stefano Codurri sharing insights from their latest research into a new model for Marketing Wine. A big thank you to these and all of our other contributors this month - we couldn’t do it without you. In this issue we complete Alan See’s featured list of 50 Marketing Leaders of 50 - A list that has generated a lot of interest with our readers. Plus there’s also an amazing opportunity for our Marketing Leaders of Tomorrow. Qualifying, full time students have the opportunity to write a full feature article for Global CMO. Not only does our competition winner get published alongside our CMO Czar, MaryLee Sachs, they will also win mentoring for a whole year from one of our esteemed GMN Fellows. Check out page 39 for full details. Oh - and students, don’t forget. We’re still on the lookout for a few good interns. We all hope you enjoy this issue and get something valuable from it. And for those of you who aren’t yet subscribers to the Magazine, you can do so via the ‘Global CMO Updates’ signup form on our website www.theglobalcmo.com. Not only will you be one of the first to find out when each issue is released. You will also receive fortnightly updates on what’s going on in our world, plus advanced notice and timely reminders of special deals and can’t miss events. If you enjoy reading this issue of Global CMO, please share it and help us spread the word. You might even win a Conference Pass to Brand2Global, London in September. And don’t forget to come and say ‘Hi’ to us on Twitter: @TheGlobalCMO @GMNhome @VeseyCreative We really appreciate your support. Well, that’s all from me for now. Wishing you the best behaved consumers possible,
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Michael Solomon:
From Pawns To Partners Turning Customers Into Co-Designers
Global CMO is the Official Magazine of Global Marketing Network, the Global CMO™ Body The Magazine April 2013 | 1 Global for Marketing Professionals. www.theglobalcmo.com
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Global CMO™ The Magazine Issue 3 | Volume 1 | May 2013 www.theglobalcmo.com The official Magazine of Global Marketing Network, the Global Body for Marketing Professionals.
Advertising and Sponsorship: sales@theglobalcmo.com Click here to view media pack and rate card Production: production@theglobalcmo.com Editorial: editorial@theglobalcmo.com Editorial Board: Editor-in-Chief | Fiona Vesey GMN CPD Director | David Hood GMN Global Faculty | Professor Greg Marshall GMN South Africa | Dr Anthony Michail GMN Global Advisory Council | MaryLee Sachs GMN Global Faculty | Professor Michael Solomon GMN Brand Guardian | Andrew Vesey GMN Membership Committee | Dr Kellie Vincent Published in collaboration by: Vesey Creative Ltd globalcmo@veseycreative.com www.veseycreative.com UK +44 131 208 2285 NZ +64 9 889 0013 Global Marketing Network gmn@theglobalmarketingnetwork.com www.gmnhome.com
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Inside This Issue Cover Story 30. From Pawns to Partners: Turning Customers Into Co-Designers Michael R. Solomon fgmn
Features 57.
10. Getting The Job Done: A Model Approach To Enhance The Digital Market For Wine Brands Along The Value And Supply Chain
James MacAskill fgmn and Stefano Codurri
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Joining The Family GMN Global Advisory Council GMN is endorsed by some of the world’s leading marketing academics and practitioners, represented through the GMN Global Advisory Council. This body consists of invited individuals who contribute to the design, development and delivery of Global Marketing Network qualifications, accreditations, curriculum, policy and programme development. This assures Marketing Professionals they will be accredited and certified against the highest possible standards in the world and ensures that those delivery partners that GMN collaborates with around the world deliver and administer GMN Global Certification and Global Accreditation programmes to the very highest possible standards.
GMN is proud and delighted to welcome the following individuals as Global Advisory Council members. You can read their full profiles here.
Anuja Prashar
Jonathan Foster-Pedley
Danette Breitenbach
Anuja joins the Council as its Special Advisor – Emerging Economies. An experienced lecturer on International Business, Emerging Economies, Global Management, Globalization, Political Identity & Cross Cultural Communication, she is a regular writer on issues of Religion, Transnational Business & Political Identity and i s also currently a Liberal Democrat Euro Parliamentary Candidate for London (UK).
Jon is dean and director of Henley Business School, Africa, part of the University of Reading (UK). For 15 years prior to joining Henley, he taught strategy, leadership, international business and innovation at the University of Cape Town Graduate School of Business (GSB) for the MBA and other programmes. He is visiting Professor in strategy, creativity and innovation for the Namibian Business Innovation centre and Polytechnic of Namibia, and consults and advises numerous companies and organisations in the public and private sectors in Africa and internationally.
After two years as deputy editor of Advantage magazine, Danette became editor in March 2012. She has worked extensively in marketing, specialising in internal and external communications and public relations. Today she works in a diverse number of industries, including advertising and marketing, mining and engineering, construction, gaming, disability and general business. She has interviewed some of the top business people in South Africa including Lazarus Zim, previously vice-president of Anglo American and Sipho Nkosi the Chamber of Mines president and CEO of Exxaro Resources.
8 | May 2013
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Advanced Notice Big Data Exchange IQPC Exchange, a global leader in delivering thought provoking, unbiased information through a mix of conferences, tradeshows, workshops, seminars, webinars and exchanges, is proud to partner with Global Marketing Network and Global CMO to bring its members and readers access to the invitation-only Big Data Exchange. Big Data Exchange, taking place September 22-24, 2013 at the Clarement Hotel Club & Spa in San Francisco, CA, brings together senior IT and Marketing/Analytics Executives, offering insights and best practices so business innovators can conquer the sheer volume and velocity of business and customer insights available to them, and analyse and leverage this data to better serve their markets. Sessions will be presented by executives from Dell, Linkedin, McKesson, MGM Resorts, Best Buy, Autotrader.com, PayPal, AIG and more. Big Data Exchange attendees will be able to: •• •• •• ••
Recognize how to leverage Big Data to boost revenues and improve customer relations Collect, sort and store immense quantities of structured, unstructured and multi-structured data Process data in “real-time” Learn & understand Big Data tools and technologies, including: Hadoop, Cassandra, Map/Reduce and NoSQL databases •• Examine how to integrate data collection technologies with analysis tools to produce actual usable information •• Determine manners to equip internal teams with the appropriate skill sets needed to manage and analyze Big Data •• Ascertain how the Cloud can decrease the cost of storage and curb the ever-increasing complexity of computing
As a special benefit to GMN members and Global CMO readers, we are offering a limited quantity of complimentary attendance passes to Big Data Exchange for qualified end users. Full details will appear in upcoming issues of Global CMO and on the website - www.theglobalcmo.com. To request a complimentary invitation to attend, send an email to inexchange@iqpc.com and mention code 22535.001 GLOBAL CMO. For sponsorship opportunities, please contact spexchange@iqpc.com
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May 2013 | 9
Getting The Job Done: A Model Approach To Enhance The Digital Market For Wine Brands Along The Value And Supply Chain James MacAskill fgmn & Stefano Codurri
This article offers an insight into a project exploring the “digital dimension” of the value chain and the impact of future social media and branding engine strategies on the wine supply chain. The initial perspective for this research came from the authors’ experience of working and living in United Kingdom, Italy and Romania and the potential for different wine cultures to influence the supply and value chains within the wine industries of these countries. The impact of social media in the specialist wine industry is relatively underdeveloped. However, while there may be various social media tools available to the sector there are few coherent strategies in delivering real brand value. Therefore, there could well be a significant opportunity to add value to these brand owners through the use of innovative social media and branding engine marketing strategies. First, an obvious observation would be that if you live and buy your wine in a wine producing country then your preferences and pre-disposition to purchase a particular wine may be determined through this culture. Second, if you live or consume your wine in a country that does not produce wine then your buying preference or your disposition to by may be more heavily influenced by retail outlets or advertising of the brands. Third, you may choose wine differently on each occasion based on the reason for the purchase rather than the first two options. Thus this latter point was the focus of our interest in the task or “job to be done” model rather than a consumer’s profile and buying potential.
10 | May 2013
The three countries chosen allow a range of assumptions to be tested: Italy is a well established wine producing country with an established supply and value chain; Romania is a re-emerging wine producer with a more fragmented supply and value chain; UK a small production country but has a very sophisticated retail sector and a long history of established global supply and value chains. Marketers have previously reported that there was a tendency of buying preferences to reflect the culture and the wine production status of the country in which you live (Lockshin and Hall, 2003). However, it is difficult to the reach a general understanding of the consumer decision process due to the complexity of choices available to wine consumers that make it difficult to isolate factors influencing consumer behaviour. As a consequence the focus of this research is an attempt to accommodate this variability.
Getting The Job Done: A New Approach To Marketing Wine “How is a bottle of wine chosen and purchased by the customer?” is a question that wine marketers have been seeking to answer for many years without success. Despite intensive attention on the key drivers for selecting particular wines they remain complex and relatively poorly defined. Thus in this article the authors try to devise a model approach to answering this question based on the concept of “the job to be done”. This article forms the basis of an ongoing research question around the influence of social media on branding and its capacity to influence its migration along the value chain.
Global CMO™ The Magazine
Pinch Points In The Supply And Value Chains That Restrict Access To Markets The UK has a historic legacy of wine importation rather than wine production and has developed a palette for a global range of wines and brands. The structure of the UK market now means that the merchandising power of the wine importers and retail outlets is significant in determining the main supply channel to the final consumer. This trend is gaining momentum even in countries where one expects a closer cultural attachment to wine and its origins through more local or regional direct-to consumer channels, such as in France and Italy. Even in the recent EU accession states such as Romania the balance between traditional marketing methods, home production and consumption is changing rapidly in favour of the larger retail outlets (Vinexpo, 2009).
The wine market has classically been divided between consumers who show a high level of involvement in the choice of wine and consumers with low involvement (Lockshin, 2001). The willingness to pay is aligned to a price band and the perceived value of a bottle of wine is often determined by their level of involvement and background culture. High and low involved customers often purchase in the same retail shops and may also switch categories depending on any give situation. Studies on wine market segmentation revealed three potential categories or clusters of customers (Fulconis and Viviani, 2006; Geraghty, 2010; Malorgio et al., 2008; Ritchie, 2008; Seghieri et al., 2007): •• Consumers looking for “cognitive cues” and “extrinsic factors” able to certify the quality and taste of the wine. These clues might be provided by the label or the grape variety.
This has the effect of strangling the market opportunity through various “pinch” points such as importers where they will by necessity limit the number of branded products they carry and promote.
•• Consumers looking for “assurance cues” able to reduce the risks of being wrong. Normally this means a choice based on experience or recommendation by a friend.
Conventional Approaches To Targeting Wine Consumers
•• Consumers looking for “in store informational cues” able to simplify and accelerate the selection. In this case the choice is based on merchandising or packaging.
Marketers have established a number of factors to segment the market such as brand or producer, region, grape variety and price which appear to be some of the more powerful drivers for wine selection in retail stores (Goodman, 2008). However, as yet, the ability to influence the consumer remains hugely dependent on the wine culture in any given country.
To try to reach these three clusters of consumer marketers have worked on building campaigns that promote brand values and aspirational attributes through merchandising, tasting events, relationship development and key account management.
Global CMO™ The Magazine
May 2013 | 11
Figure 1. Job to be done – Decision making segmentation
In general, the boundaries between these three categories are blurred and as a result the marketing message may not be targeted at any one particular segment thus making it difficult to quantify the effectiveness of the campaign. The key assumption is that as people move out of the target segment others will move in to it to replace them. Our interest in the “job to be done” approach is in its potential to identify the trajectory of the buyer and consumer. Understanding this trajectory supports social media and branding engine strategies to move brands through the pinch points and along the value and supply chain. The majority of wines are consumed for social reasons. Thus, different consumption environments can amplify or change the relevance of the wine attributes and therefore confuse the marketers understanding of consumer behaviour. Thus while some broad consumer preference factors have been identified above, the final choice depends on a complex and situational decision making process where many potential factors consumers might be considered before a wine will be chosen. Therefore, it is possible to speculate that the consumer may equally well simply select wines on the basis of the “job” that needs to be done. In this model consumers may buy a bottle of wine to satisfy a particular desired outcome or “job” that needs to be completed. As can be seen this model is subtly different and cuts through many of the issues associated with traditional segmentation by focusing on the “job” a different bottle of wine at a different price or from a different region within any given situation will deliver for you. Provided we understand the “job to be done” this approach fits very well with the analysis and evaluation of data from Social Media and Branding Engine Marketing tools. This approach opens up a broader demographic appeal for brands in a digital world by allowing the consumers to self select their buying behaviour. 12 | May 2013
This essentially allows consumers to ascribe values and meanings to the brand thereby indirectly segmenting the market according to their individual needs. The approach also simplifies the need to deal with consumers switching between categories as budgets, grape varieties, regions or fashion become relative to the individual’s values base and internally reconciled to the “job” that needs to be completed. This is increasingly important during the current economic recession where consumers may have to migrate to different value categories. In this context embracing the concept of “job to be done” means rethinking the consumer journey by placing the consumption expectations at the beginning of the process and as the final destination the choice of wine that best fulfils that need.
The “Job To Be Done” Model The “job to be done” approach seeks to categorise consumers and brands within defined roles in the market. By overlaying these roles it is possible to map the opportunities for the brand through the value chain. In discussing with wine makers the authors quickly realised the importance and difficulty of conveying the passion they had about their wines in a digital context that gave the wine maker greater control over who was purchasing their wines. With more traditional approaches marketers use proxies in an attempt to define consumers using socio-economic categories and other more complex variables such as wine experience both in terms of their knowledge of wine and the world of wine producers. The “job to be done” model offers an approach that can be used at every level of the wine market: the individual, the brand, the product, the culture and the territorial market place.
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tasting is not taken into account in the decision making process. Consultants are those consumers’ searching for value for money buying decisions. They use the past experience to inform their decisions and they gather all information required to gain an understanding of the best quality wine at the best price that can be found in the market.
•• Apprentice; •• Consultant; •• Professor. In Figure 1 the model is explained in terms of individual consumers: Tradesmen are “traditional” buyers showing fixed habits. They usually drink and buy wine based on their experience of a consistent taste performance that presumably originally complemented their regional food cuisines. They are not interested in discovering other products. Packaging is relevant as an easy to drink attribute, while the price is expected to be in a narrow price range. Apprentices are occasional consumers that show a high sensitivity to price. The purchase choices are driven by promotional and merchandising appeals. Experience of
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Professors are habitual wine buyers’ that go beyond the quality cue. They are interested in considering information related to wine attributes and subtle categories such as brand, variety, region of origin, food matching, awards, terroir, etc. Breaking with past literature, our view accepts the fact that the same customer can play many different roles when looking for the “job to be done” purchase. In Figure 2 the Tradesman may be shifted to Consultant for new wine brand offering similar experience but for different occasions. Promotions are not so relevant in the decision process, because price is fixed. An Apprentice could migrate between Tradesman or
Global CMO™ The Magazine
May 2013 | 13
Figure 2. Job to be done – Consumers’ behaviour
Consultant. Acting as a Tradesman they have found a product that satisfies them and are difficult to move from it, while as consultant their knowledge base expands and range of wines available take them on a journey of experience. A Consultant can act as Professor where they have deep and special knowledge about a product. Each day their journey leads to greater understanding of the subtleties of the brand or product “personality”. A Professor can also act as a Consultant where their knowledge leads them on a further journey. In terms of brands the “job to be done” approach (Figure 3) can consider the values and attributes that can associated to each profile, again allowing trajectories for the brand to be developed. A Tradesman brand is reliable and reproducible as its
consistency getting the job done is the key feature. You know clearly what the brand represents from its packaging and price. An Apprentice brand is at the beginning of its journey, targets more obvious attributes required by the consumer and has to be price or quality competitive. The focus is on style and fashion of the visual elements like labels and bottle package. One crucial characteristic rely on the ease to understand the brand message in order to generate knowledge. A Consultant brand has to be functional as it delivers information confirming its quality attributes. It is endowed with a distinctive style that explains how it is different from the competition. It also communicates more information to the consumer about feelings and emotions returned by the product that permits it to define a clear position within the wine segments. A Professor brand gains the aura of an icon. It emphasizes
Figure 3. Job to be done – Brand’s legacy
14 | May 2013
Global CMO™ The Magazine
the passion of the wine maker enclosed within the bottle, and is able to create mystery through subtle overtones or the search for discovering hidden information. It is able to create status symbol attributes thanks to the attention to the details.
Mapping The Markets Critical Factors Through The “Job To Be Done” Approach The analysis of the literature has shown, from a consumer perspective, that some elements create confusion in the wine purchasing process. In a globalised society consumers can access increasing amounts of information, sometimes confusing which is coupled to unprecedented proliferation of products targeting customers using a range of marketing strategies including those that mimic or substitute their rivals. This contradiction raises the potential for consumption product failures as people misevaluate the brand or product message with the job they want done. British consumers’ behaviour is symbolic: they want a way to simply choose according to a defined parameter such as price, brand, wine colour or label design. At the same time the expansion of large retailers as the key distributors of wine has increased the competition between suppliers and intensified a restructuring process of many supply chains. Consequently, wineries now need to move along the supply and value chain and interact with downstream operators placing them in an unequal bargaining position. Thus can a winery be sufficiently competitive to successfully access to these channels. Access to these downstream markets may require repositioning of the brand either through a cost advantage and/or through a high quality or niche product. However, production restrictions affect the ability to access the final market with their own brands (limited size, limited scale economies both in quality investments and promotion, etc.). Indeed investments the wineries make in eco-wines,
a strong brand value, , quality signals like brand awareness and designation of origin licenses all support direct entry to downstream markets. This is precisely the areas where social media and branding engine strategies can support the winery in migrating along the value chain. The analysis of critical market factors has led the authors to define a map able to divide the attributes of the “jobs to be done” from the aspects related to the three segments mentioned at the beginning of this article. This approach is based on the hypothesis that brand value differs according both to the wine consumption aim/context (traditional or social consumption) and to the extent of the impact of the market structures (local or international relevance). The map is redefining what marketers should consider relevant in building wine brands in Italy, Romania and United Kingdom. As detailed in Figure 4, the left top quadrant relates to local market specificities and traditional consumption, contains only the factor linked to the existence of a segment of consumers that are price sensitive in their habitual wine purchases. The level of sensitivity is strictly related to local market characteristics. Taking into account the international relevance of traditional consumption patterns (the bottom left quadrant) two factors emerge from the analysis: searching for value for money wines and the locally known/produced brands fit this market structure. In our view marketers interested to reach the traditional consumers must consider these topics in the creation of the brand value. The two quadrants in the right side (those related as wine in a “social job”) enclose a large amount of the critical factors. Starting from the top right quadrant, the analysis shows that access to direct channels impact on factors related to social consumption.. Additional factors related to the level of sophistication of the consumer and the consequent widespread knowledge/culture among the wine consumers.
Figure 4. Mapping critical factors
Global CMO™ The Magazine
May 2013 | 15
The bottom right quadrant matches the social dimension to wine consumption. Marketers interested in giving brand value in this segment must to consider the order of these attributes. First of all, a virtuous process exists where brands can impact directly on the perception of quality with the subtleties of wine’s back story that associate the consumer with a lifestyle and self- image for the consumer. Secondly, the balance of the winery brand with that of the retailer to influence consumption behaviour. Thirdly, the great importance regarding the social context of the consumption in influencing the post-consumption evaluation, particularly in terms of alignment of expectations post consumption with those arising from the brand values.
Moving Forward With The Evaluation Tool Research concerning how to build wine brand values in Italy, Romania and UK has highlighted that brand values in a social media context are linked to the ability to generate a viral marketing process that mirrors the consumers’ lifestyle and image. Thus the brand appeal is broadened through self selection of the need to be satisfied at any given point.
There are a few critical factors that are common to all three markets. But if they are analysed taking as a key factor the attribute of the “job to be done” and the extent of influence of the market environment, then the country differences become less defined. The study to date has shown the existence of a range of market forces able to influence consumption behaviours as well as the great importance given by consumers to the pre and post-evaluation of the wine or brand performance in terms of taste. Living in a digital world provides us with a range of new techniques to acquire information and share experiences, especially for the complex markets such as the UK where taste experience and product referral are the most influential parameters of wine purchasing. Therefore, an effective social media and branding engine strategy can lead to significant changes in the trajectory of the brand through its touching points with the value chain. This allows the producer or brand owner to re-organise the distribution of retained profit across the value chain provided they understand the brand values in terms of the “job to be done”. This is the first stage of a broader dialogue with brand managers, brand owners and consumers aimed at developing a marketing tool to measure the impact of digital social media on wine value chains together with an appropriate branding engine solution.
References Fulconis F., Viviani J.L. (2006), “Segmentation of the Romanian wine market: an exploratory study”, Paper presented at the 3rd International Conference of the AWBR, 6th-8th July, Montpellier, France. Available at http:// academyofwinebusiness.com/wp-content/uploads/2010/05/Fulconis.pdf (accessed 07 December 2012). Geraghty S. (2010), “Wine consumer behaviour: an Irish wine market analysis. A literature review”, Paper presented at the 6th annual Tourism and Hospitality Research in Ireland Conference, 16-17 June, Shannon College of Hotel Management, Ireland. Available at http://www.shannoncollege.com/wp-content/ uploads/2009/12/THRIC-2010-Full-Paper-S.-Geraghty.pdf (accessed 07 December 2012). Goodman S., Lockshin L., Cohen E., Fensterseifer J., Ma H., D’Hauteville F., Siriex L., Orth U., Casini L., Corsi A., Jaeger S., Danaher P., Brodie R., Olsen J., Thach L., Perrouty J.P. (2008), “International Comparison of Consumer Choice for Wine: A Twelve Country Comparison”, Paper presented at the 4th International Conference of the AWBR, 17th-19th July, Siena, Italy. Available at http:// academyofwinebusiness.com/wp-content/uploads/2010/04/A-Twelve-CountryComparison_paper.pdf (accessed 07 December 2012). Lockshin L., Hall J. (2003), “Consumer purchasing behaviour for wine: what we know and where we are going”, Paper presented at the Colloquium in Wine Marketing, University of South Australia, 16th-17th June, Adelaide, Australia. Available at http://academyofwinebusiness.com/wp-content/uploads/2010/05/ File-030.pdf (accessed 07 December 2012). Lockshin L., Quester, P., Spawton T. (2001), “Segmentation by involvement or nationality for global retailing: a cross-national comparative study of wine shopping behaviours”, Journal of Wine Research, Vol. 12, n. 3, pp. 223-236. Malorgio C., Hertzber A., Grazia C. (2008), “Italian wine consumer behaviour and wineries responsive capacity”, Paper presented at the 12th EAAE Congress, 26th29th August 2008, Gent, Belgium. Available at http://ageconsearch.umn.edu/ bitstream/44419/2/008.pdf (accessed 07 December 2012). Ritchie C. (2008), “The culture of wine buying in the UK off-trade”, Paper presented at the 4th International Conference of the AWBR, 17th-19th July, Siena, Italy. Available at http://academyofwinebusiness.com/wp-content/uploads/2010/04/ The-Culture-of-Wine-Buying-in-the-UK-Off-Trade_paper.pdf (accessed 07 December 2012). Seghieri C., Casini L., Torrisi F. (2007), “The wine consumer’s behaviour in selected stores of Italian major retailing chains”, International Journal of Wine Business Research, Vol. 19, n.2, pp. 139-151. Vinexpo (2009), “The World Wine and Spirits Markets and Forecasts to 2012”, The IWRS Study, Bordeax, France.
16 | May 2013
Dr James MacAskill
fgmn
Director, Academy Zone Dr James MacAskill is a GMN Global Advisory Council Member. He is a creative and innovative business developer starting his career in the bio-technology sector. His MBA helped him transition into bio-tech start-ups and his fascination for strategic alliances has successfully supported a number of transition businesses and economies particularly in the EU accession states. He has completed project work in Africa, Scandinavia, Russia, Middle East and Far East. His experience and passion is for cross-disciplinary work promoting alignment of strategy and brand values across the business and battling silo thinking. Now he has a portfolio of roles some seeking to harness search technology to deliver new dynamic forms of digital marketing and branding engine strategies can strengthen brand performance. Others senior academic roles include the Academy Zone and the British Institute of Technology & E-commerce. His current research interests are in the use of social media and branding engines to migrate traditional industries along their value chain.
Trendwatching.com Releases Asia-Pacific And South-Central America Regional Trend Reports Featuring 40+ Local Consumer Trends With Insights And Examples From Leading Brands In Each Region Different from traditional market research reports, each 100+ page report features over 40 consumer trends, along with insights and examples from such brands as Kia Motors, Mastercard, Vivo, 7-Eleven Thailand, Coca-Cola, BMW Mexico, Mattel China, Daewoo Electronics and more. Along with each trend is a list of up to four tips on how marketers and business leaders can best apply these ideas to their business, making it an ideal source for inspiration and new ideas. To celebrate the launch of these reports, we have secured a special discount for GMN Members. Please check out the details below.
NOVISMO
ASIA BAGUS
Consumers in all income brackets across the SouthCentral American region are filled with NOVISIMO: the desire or craving for the ‘new’. Driven by rising affluence and greater feelings of empowerment, SCA consumers are enthusiastically diving into a wider range of available products, experiences, flavors, destinations and services. Featuring examples from Viva Colombia, Banco Bonsucesso, Chevrolet, Elementia, Tiffany and more.
Meaning ‘Asia Good!’ in Malay: the rise of economic power in the Asia-Pacific region is now being matched by rising cultural power. Asian consumers are embracing products and services that celebrate their culture and heritage or are tailored to their needs and lifestyles. Learn how brands like Shang Xia, Vogue Thailand, Playboy India and more are tapping into this trend.
AUTONOMY
The vastness of Asia’s population, coupled with the massive social, economic and cultural shifts mean there will be endless opportunities to launch innovations for new demographic segments. Whether catering to groups defined by faith, culture or travel--or serving lifestyles shaped by gender, age or relationship status, it pays to understand the TRIBES and LIVES of Asian consumers.
From Sao Paulo to Bogota, the traditional dream of a stable government job is over, and consumers aspire to AUTONOMY. Entrepreneurs are the new heroes. Discover how brands are stimulating and nurturing consumers’ personal and professional ambitions with examples from Vivo, Santander, Tecnisa, Livraria Cultura and more.
Both reports are available in PDF and Power Point format for $1049/ £669/ €779
For more information, visit www.trendwatchingreports.com
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Currencies Of Change David Mattin
Many consumers feel that they should make positive changes to their lives, towards choices that enhance health and wellbeing, or are more sustainable and socially responsible. But lack of time and resources mean that making those changes – and sticking to them – can be hard. Now, consumers are looking to brands for help. That’s why they’re embracing brands that offer CURRENCIES OF CHANGE: meaningful rewards, material and otherwise, for positive lifestyle change and good behaviour. At first sight, embracing the CURRENCIES OF CHANGE trend might seem a risky play. After all, it means asking consumers to undertake something new and challenging, and making this the basis of an interaction with your brand. But the vast majority of adults understand full well that making positive lifestyle change is never going to be effortless. And consumers – who increasingly demand mature, collaborative relationships with the brands they engage with – would prefer that this basic human truth is acknowledged by brands that claim to care about them 18 | May 2013
and their environment. Consumers don’t want brands to offer an easy way out when it comes to making positive change in their lives: they know that none exists. Instead, they want help to help themselves. Give them this help, by incentivising healthy, sustainable or ethical behaviour, and you’ll nudge them towards an action that makes them feel good about themselves. And that action may even create evidence that they can share later on social networks and elsewhere. That means a status boost for them, and the chance for your brand to gain traction on social media, too. But the mutual benefits of CURRENCIES OF CHANGE go beyond that: this trend offers new ground on which to build a more long-term relationship with consumers. By asking consumers to do something positive that takes real effort, you’ll also earn their respect, and encourage them to feel that both of you are involved in a collaborative effort towards real, long-lasting change. Sure, you could offer an effort-free way for consumers to ‘make a difference’ – by donating part of your standard price to charity, for example
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– but consumers realize that these one-time gestures don’t compare to positive change that they make, and stick to, themselves. Help them make that change, and you become partners in a joint effort: and that could mean the start of a more meaningful, long-lasting relationship.
Can’t find your perfect marketing job?
Want to launch your own CURRENCIES OF CHANGE initiative? Take inspiration from brands around the world already applying this trend. Take a standard CURRENCIES OF CHANGE programme: credit (in the form of vouchers or loyalty card points) for positive behaviour. In February 2013, clothes retailer H&M launched an initiative that rewards shoppers for bringing old or worn apparel into a store for recycling. H&M accepts items from any brand and in any condition, and customers who bring in apparel to be recycled are rewarded with an H&M voucher. Take the trend a step further by thinking beyond only monetary rewards: status-based social rewards will also be important to many consumers. So how can you help consumers to share news of their positive lifestyle change (and share the involvement of your brand at the same time)? See how Nike Mexico are incentivising exercise with their #makeitcount Facebook campaign, launched May 2012. The campaign allows Facebook fans to bid for new trainers on Facebook, using as currency kilometres they have run and recorded with the Nike+ app via smartphone or the Nike+ Fuelband. Registered runners can bid on featured products using the miles they’ve racked up, and the runner with the most miles wins the product. CURRENCIES OF CHANGE can promote positive social responsibility and community action, too. In December 2012, Coca-Cola unveiled the Cajero de la felicidad (‘Cashier of Happiness’) in Madrid. Cash machines across the city offered passersby EUR 100 if they promised to share and make someone else happy. The machines displayed various options for actions that individuals could undertake, such as buying breakfast for everyone in their office, giving a neighbour a surprise gift or treating a few cab drivers to lunch. Feeling bold? How about rewarding consumers by offering a seamless way to do even more good? Brazilian energy supplier Light did just that with its Light Recicla programme: participants exchanged recyclable materials (metals, plastics, paper, glass, vegetable oil), and could choose between money off their energy bill or a donation to charities registered with the programme. Ready to launch your own CURRENCIES OF CHANGE initiative? Just remember, sincerity is everything. Consumers will instantly see through a programme that is all about grabbing their attention or drawing them to your brand, and nothing to do with positive lifestyle change. So ask for meaningful action, and give a meaningful reward in return. Good luck!
Choose from over 250 Marketing Jobs on the UK’s leading specialist Job site www.OnlyMarketingJobs.com
David Mattin Lead Strategist, trendwatching.com David Mattin is Lead Strategist at global trend forecasting firm trendwatching.com where he is responsible for trend thinking across the company’s free and Premium content. trendwatching.com is an independent and opinionated trend firm that scans the globe for the most promising consumer trends, insights and related hands-on business ideas. Established in 2002, the company relies on a worldwide network of analysts and spotters from over 120 countries, with offices in London, Singapore and Sao Paulo. trendwatching.com publishes its insights in its free Trend Briefings (available in 9 languages for over 200,000 subscribers worldwide) and its paid Premium Service, which counts over 1,200 of the world’s leading brands as clients.
Advanced Notice Brand2Global The upcoming Brand2Global Conference will feature presentations from industry experts with global marketing experience. The conference presentations are being designed to answer these basic questions facing the global marketer: •• What is your brand essence and how can you assure that it is established accurately in each target country? •• What are the best practices for global advertising campaigns that combine a universal message, yet can be easily translated into local campaigns? •• What is the best strategy for international SEO and how can you take advantage of it while building your global brand and campaigns? •• How are social media outlets revolutionizing the way your brand interacts with customers across borders and how can you track and integrate the sentiments of your global customers in an effective manner?”
16-18 September 2013
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WIN a 2 Day Main Conference registration (£1250+VAT). Simply share Global CMO The Magazine on Twitter, LinkedIn, Facebook & Google+. Every post, share and tweet gets you another entry - and yes, there are bonus points for style. Entries close 30th July 2013 @TheGlobalCMO http://bit.ly/Y0ow3w #GlobalCMO
Doubletree by Hilton - Tower of London Hotel. Pre-conference workshop day on the 16th, followed by the two day main conference. An opening reception† will be held in the rooftop garden at the Doubletree on evening of the 16th and we will dine on a boat cruise* on the Thames on the evening of the 17th. There is also an exhibition on both main conference days where you can meet vendors and our sponsors.
Registrations opening in May. Subscribe to Global CMO Updates via www.theglobalcmo.com to be informed as soon as registrations open and find out about our special offer for GMN Members.
Packages available (pricing excluding UK VAT): 2 Day Main Conference - £1250
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Main conference registration also includes lunch and two refreshment breaks each conference day plus the chance to win prizes from our exhibitors during our Closing Session. † Included in main conferance pacakge
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For sponsorship and media partnerships, to book an exhibition booth or apply for program involvement, please email Brand2Global@theglobalcmo.com
20 | May 2013
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Global Partnerships
Tune into Radio GMN ! GMN FM? Well not quite….. At the end of April Danette Breitenbach, GMN Advisory Council member and editor of GMN’s South Africa media partner Advantage magazine, spoke on BizRadio and shared how they have adapted to remain relevant in the current market of integration and convergence and how the consumer’s wants and needs are being met by publishers in the market place. She also shared insights about the partnership between GMN and Advantage, our plans for South Africa and what we are doing together with Henley Business School Africa to build marketing capability in South Africa and across Africa. As a result of that broadcast GMN and BizRadio entered into discussions to identify ways in which they could collaborate and as a result have agreed to enter into a strategic partnership to provide great content to BizRadio. Says Darrell Kofkin, Chief Executive of Global Marketing Network, “We are thrilled and delighted to have the opportunity to collaborate with Africa’s only dedicated audio stream multi-media platform covering the world of business and the business of the world. This exciting collaboration enables to bring new marketing capabilities and insights to an even wider audience through a highly innovative platform.”
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Of the collaboration BizRadio Founder Ingrid Von Stein says. “GMN has an incredible network of some of the world’s most successful marketing professionals from industry and academia. We are really looking forward to their contributions to the #Marketing Biz channel on the BizRadio platform so that we can educate, inspire and inform the Marketing Leaders of today and tomorrow across Africa, and the globe.” The Daily Biz airs live weekdays 10am to noon (CAT). Catch #MarketingBiz Fridays at 10.30am. You can listen to this month’s GMN features on 17 and 31 May at www.bizradio.co.za. Join Grant Jansen every weekday morning from 10am to noon for the Daily Biz on Biz Radio.
Danette Breitenbach AdVantage Magazine
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May 2013 | 21
Manifesto 2: ‘What The Hell Is A Marketer?’ David James Hood pgmn
A ‘Marketer’ Is A Terrible Thing To Waste In last month’s ‘Manifesto’ article, I wrote about how marketing is suffering due to displacing the primacy of the market and customer for the primacy of the organisation. The result on the Marketer, and their role and status within business, is clear; and the result on the business itself is that the organisation will find it almost impossible to be ‘market-centric’ or attain such a similarly worthy objective. With primacy firmly placed elsewhere, it is little surprise that the Marketer, who tries earnestly to ‘represent the market’ and marketing itself - is not effectively supported, utilised or indeed matching the expectations placed upon it. We have long bemoaned the fact that Marketers pretty much don’t see the inside of their Boardroom. There are many reasons why this is so, and even where they are represented at the top, and make it to CMO or Director status, they pretty much can be a lone voice. Whilst organisational primacy steers the course of discussion and decision-making at Board level firmly away from market considerations, at best the CMO or Marketer is brought in, often too late, to try and mop up problems that are in large
22 | May 2013
part the result of that misplaced primacy. So the Marketer gets called in, or called to account, and react; to essentially make up for earlier poor decisions that manifest as low sales or competitiveness. Not simply content with being reactive, the organisation seems content at allowing time to elapse before taking action. Why should sales going down over a period be the clarion call to action? As an organisation, surely we should never be in that position? Marketers are wasted as a key resource and source of prosperity - as they are treated as reactive storm-troopers rather than proactive field-marshals.
Misplaced Primacy, Leads To A Misplaced Role For The Marketer The Marketer, as I put it in my book ‘The Marketing Manifesto’, is seen and treated as a ‘Tactical Automaton’. Seen almost universally, as a reactive functionary, rather than having a truly strategic role within the organisation, the professional Marketer needs to fight their corner on a number of fronts and challenge the current prism through which everyone else sees their role, and the liberated from
Global CMO™ The Magazine
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The Marketing Manifesto
the prison or silo from which they operate. Functionaries only; not strategic operators protecting and nurturing the lifeblood of the business - cash generation - and the increasing number of functions within ‘marketing’ is keeping things that way. Displaced and misplaced primacy of the market, leads to the same for the Marketer. We’ve all heard of the wise maxim that ‘Marketing is far too important to be limited only to the marketing department’ (or the Marketer!). The professional Marketer has to get out of their departmental constraint; we also have to ensure that marketing does likewise. When I Chaired the Chartered Institute of marketing Technology group a few years back, I argued that it was important not just to get Marketers duly recognised and present on the board; I argued that he or she must be able to deploy their skills and influence so that not only is the organisation truly reflecting the needs of the market, but the entire Board understands what marketing is and how critical it is to paying all of their remuneration. If we are to have customer or market-facing organisations, we must be able to lead; we must be able to influence, and empowered with the full and unanimous backing of the Board, given the authority and means to ensure that marketing does indeed get out from the functional silo. If we are ever to release our potential, being able to work suitably strategically and have truly market-led practices and procedures throughout the organisation, we need to be supported and to include almost EVERYONE in a marketing
process. How often does the Board actually get out with customers? What about the Finance Director or Manager, or the organisation’s Accountant actually get out to speak with the people and organisations that pay them? Pretty much, Boards are making one-sided decisions; they cannot speak on behalf of, or care about the other side of the equation. Yet they make decisions that affect the market, the product or service, the proposition, as well as the organisation.
What Can Be Done To Increase Influence For The Marketer? One major, albeit difficult, way to crack influence is available that can change everything. It is a NECESSARY CONDITION to, in one firm act, tackle two important and related issues: it can markedly improve the organisations ability to be proactive and competitive, whilst at the same time can help pull the Marketer out of their functional silo and improve their status and influence. To get marketing out of the department, function of silo, and make it a PROCESS. Sounds straightforward, and surely we are doing this already, yes? Well, no actually. We may have some practices and procedures that we have set and follow in our day to day activities planning, orchestrating and conducting campaigns etc., but we are not truly ‘processing’ marketing
Global CMO™ The Magazine
May 2013 | 23
sufficiently. Our ‘systems’ don’t communicate with each other, never mind acting in concert; much like some of our departments! Everyone that is involved in those seemingly unrelated roles - customer facing, value creation and delivery, creative and top-level decision-making, revenue generation, should all be gelled and engaged together in a process. (And lets not forget that the customer, consumer and prospect are the vital and integral part of that process). Led by word-of-mouth and market-sensing elements, a new systemic marketing process in our organisation means we need a new cohesion in professional marketing. It is all right to have ‘swivel-chair’ elements of the business, those disparate strands of individual activities we multitask on every day, but it is quite another to swivel-chair the alignment of market with misplaced organisational objectives. Our ‘touchpoints’ in the organisation that should and can engage with the market need to be part of this overall process; it must involve the exchange of ANY value, and not only be based on the transactional elements associated with the usual marketing ‘processes’ such as CRM. We need to treat the current processes we use in business, the market and our engagement with and within it, as a system.
David James Hood
pgmn
Competitiveness Strategist David James Hood is the GMN CPD and Online Community Director. A proficient and experienced Competitiveness Strategist who thrives on seeking improved revenue performance using realistic and practical market-led methods, David’s passion is to lead the call for the smaller business to improve marketing effectiveness through the ‘Competitive SME’ initiative. He has served on the UK’s Marketing and Sales Standards Setting Body and the manufacturing trade body competitiveScotland. He is Co-Director of the ‘Competitive SME’ mission, and is also a Guest Lecturer at the University of Glasgow. David’s two new books, are available through Kogan Page - ‘The Marketing Manifesto’, for professional marketers and marketing, improving prowess for both the Marketer and the organisation, and ‘Competitive SME: Building Competitive Advantage Through Marketing Excellence for Small to Medium Sized Enterprises’.
Last month, I suggested we need to create a new creed for both marketing and the Marketer. The new process can surely follow.
Event Update Sports Marketing - Brazil. Date Change In the last issue we let you know about a number of exciting events in Brazil focused on sports marketing. These are being organised in association with GMN’s Brazil Academic Partner Pointifícia Universidade Católica do Paraná, global marketing communications agency Hill+Knowlton Strategies and The England Football Association as well as other global and regional partners.
Global Marketing
Network
Featuring Andy Sutherden, Global Sports Marketing Practice Director at Hill+Knowlton, and Sean Maculiffe, Global Head of Business Development for The Football Association plus other leading marketing experts, the events will explore the potential for sports marketing as part of the overall marketing strategy, the opportunity that FIFA World Cup 2014 and Olympics in 2016 provides brand, and how to design, implement, control and monitor the sports marketing strategy so that a return on investment can be achieved. This conference is now scheduled to take place 13th-14th November, to coincide with the ‘History of the World Cup’ exhibition now taking place in Curitiba from 13th November – 6th December when the FIFA World Cup Draw takes place. For sponsorship and speaker opportunities please email Tomas Sparano Martins (tomas.martins@pucpr.br). Subscribe to Global CMO Updates at www.theglobalcmo.com to be one of the first to find out about this event and receive our special offer. 24 | May 2013
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Andy Sutherden, Global Sports Marketing Practice Director at Hill+Knowlton
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May 2013 | 25
Improving The Industry Through Global Accreditation Darrell Kofkin fgmn
I hope you are enjoying our Global CMO magazine, now in its 3rd issue. We are very appreciative of all the contributions and feedback that have been received and the tremendous support it has already received from inside and outside of our Profession. I envisage you are reading it because you are seeking to keep your marketing skills and capabilities up-to-date, and learn and read about the latest practices in marketing, so that you too can develop better marketing strategies for your organisation or clients. And so, as organisations around the world strive to develop products and services that appeal to their customers and aim to differentiate their offerings in the increasinglycrowded global marketplace it is perhaps not surprising that we are coming under increasing demand from organisations not just to survive but also to grow through these challenging times. Signs are encouraging with Forbes magazine last week reporting an increase in CMO tenure to an average of 45 months and the Marketing function having an increasingly important role and influence in many organisations. Added to this, and with graduates increasingly recognising the attractiveness of a career in marketing, undoubtedly the role of Marketing is taking increasing prominence in organisations as digital, data and social marketing strategies become important differentiators and drivers of success. And so as the current of the Marketing Professional rises, the demands on us as Marketing Professionals
26 | May 2013
are becoming ever-greater as we seek to inspire and educate those coming into the Profession, as we aspire to differentiate ourselves and enhance our capabilities in an ever-crowded marketplace, and as we recognise our responsibilities for creating a stronger profession that the one we entered, ensuring we leave a lasting legacy for those coming into and up through our Profession. As our commitment to developing a stronger, better respected, more unified Marketing Profession we are committed to raising standards in Marketing Practice globally. Would you trust an accountant that was not aware of the latest tax implications? Would you trust a lawyer who did not understand the latest legislative implications for your brand. And if you need a doctor would you trust one that was not aware of the latest procedures? So why should we recruit and promote Marketing Professionals if they are not ‘digital-ready’ or are unable to demonstrate the bottom line implications for their Marketing investments? Over the next year we shall be engaging with many of our members and supporters to ensure that those standards for Marketing Professionals are each and every bit as rigorous than those that other professions abide by. We have already introduced a code of conduct which you can see here. Additionally we shall be codifying our global system of continuing professional development so that marketing professionals can demonstrate to others that they are
Global CMO™ The Magazine
Thoughts From The Boardroom keeping their skills and capabilities up-to-date. This programme commences next month with the launch of our South Africa Marketing Professional Study in association with advantage magazine and Henley Business School Africa. And we are ensuing that the Directory of GMN Members that now appears exclusively on our new Global CMO community clearly distinguishes those who have applied for, sought election to and been successfully elected by the GMN Membership Committee as Globally Accredited Members at either Associate, Professional, Global Marketer or Fellow grades. Following extensive worldwide consultation with Marketing Leaders from academia and industry we have already made great strides. Indeed in 2010 we launched the word’s first and only Global Accreditation system for Marketing Professionals. The same exacting professional standards are applied, consistently, fairly and transparently, worldwide so that Global Accreditation provides a highly desirable, portable recognition of a persons standing and ‘fitness to practice’ as a Marketing Professional, anywhere in the world. Global Accreditation means that for the first time individuals can demonstrate to their peers in other professions, clients and employers that they have achieved globally established standards, have been recognised worldwide for their Marketing achievements and are committed to their own professional continuing development. Global Accreditation assures organisations that they are only recruiting and retaining Marketing Professionals who meet globally-established standards and are committed to their continuing professional development. In addition Global Accreditation helps put Marketers on a par with colleagues from other Boardroom professions who have been assessed against similarly exacting standards. By our members using the designatory letters awarded to them helps us all to reinforce the perceptions both within and indeed outside the Marketing Profession that we are getting our act together. And ensures that we can distinguish those who ‘say’ they can from those who ‘prove’ they can. I hope that you will join me in welcoming these developments and that you will play your part in contributing to the development of a stronger, better respected Marketing Profession. Do let us know what you think.
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Darrell Kofkin Global Marketing Network
Five Easy Steps To Becoming Globally Accredited 1. Click here to identify the Grade of Membership you are eligible to apply for 2. Check here to find out the Membership Fee for your country and apply 3. Complete the application form and pay your membership fee through our secure payment gateway 4. Our Membership Committee reviews your application 5. You are notified by email as to whether you have been successful in your application for Global Accreditation. You can then start using the GMN designatory letters and shall receive your printed Certificate of Membership
Darrell Kofkin
fgmn
CEO, Global Marketing Network Darrell is the co-founder and Chief Executive of Global Marketing Network, the global accreditation body for marketing professionals. Leading its global development and expansion, Darrell works extensively with leading marketing academics and thought-leaders, Deans of international business schools, consultancies and global publishers. With over twenty years experience in marketing Darrell divides his time between the worlds of practice and academia and is a member of the visiting faculty for several UK universities, teaching the next generation of marketing professionals. He is currently writing his first book ‘The Marketer’s Global Survival Guide’, due for publication in 2014. Learn more about Global Marketing Network at www.gmnhome.com
I heard once that there are three types of companies: rule makers, rule followers, and rule breakers. It’s easy for rule makers and rule followers to get complacent, particularly in industries that have been around for a while. As marketers, we often focus so closely on our direct competition, we can miss the big picture. I had a manager once who described looking at market share graph lines week after week as watching “worm races”. One week, our brand was up. The next week, our direct competitor was up. By obsessing over the worm races, he told us, we would miss what was really important to the consumer. We would move in lock step with our competitors and miss larger market shifts. We would get stuck in the status quo. The status quo creates real opportunities for rule breakers and brand challengers. I learned from my time at the
Tom Fishburne
method brand that mature categories start to accept rules of the category as infallible that may not be true (like the “rule” that packaging design doesn’t matter in home cleaning products). It’s up to the challenger to break those rules. This is what Chobani did in yogurt, coming from nowhere in 2005 to hit $1billion in sales last year. Their founder Hamdi Ulukaya described their founding approach, saying “We came from the angle that this is a boring category that we will change”. In most markets today, the pace of change is so fast that we all have to think like brand challengers even when we’re the brand leader. We all have to question, and be wiling to break, the rules. If you want to remain number one, you have to think like number two.
Founder | CEO, Marketoon Studios
Tom is the Founder and CEO of Marketoon Studios, a content marketing studio that helps businesses such as Unilever, O2, Kronos, Baynote, Rocketfuel, and the Wall Street Journal reach their audiences with cartoons. He is also a frequent keynote speaker on innovation, marketing, and creativity, using cartoons, case studies, and marketing career to tell the story visually. The Huffington Post ranked his South-By-Southwest (SXSW) talk “the third best of the conference out of 500”. Tom was a VP at Method Products (“the 16th most innovative company in the world” ~ Fast Company). Over five years with Method, he launched new products, led marketing, and started the European business from scratch. He has led brands at Nestle and General Mills, developed web sites for interactive agency iXL, and helped launch the first English-language magazine in Prague. He has also published two collections of his marketing cartoons. The most recent entitled: This One Time at Brand Camp.
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From Pawns to Partners: Turning Customers into Co-Designers Michael R. Solomon fgmn
More than 650,000 customers beta-tested Microsoft Windows 2000 before it went to market. The value of this R&D investment to Microsoft: More than $500 million. You do the math - not a bad deal for Microsoft. Why don’t more companies do the equivalent of software beta-testing, where they share preliminary, bug-laden concepts with customers to get their feedback before it’s too late? Ironically, many companies go to great lengths to hide their ideas until they are absolutely, positively perfect -- at least according to their own designers. This article will make the case that it often makes sense to reveal what you are up to in the early stages, warts and all. In many contexts, consumers want to be engaged in 30 | May 2013
the design process. They want to be part of an ongoing conversation with companies to ensure that they can choose from goods and services that fit their needs, not just the latest gizmos some whiz-kid thought would be cool to sell. Consumer products firms in particular need to think more like high-tech companies that incorporate the lead user method. This approach encourages sophisticated users to participate in a process of joint development with manufacturers. Studies of industrial product innovations show that the greater the benefit a user expects to obtain from a new product, the greater will be her investment in obtaining a solution. The people want to be heard. Like
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client to fill out in advance of a meeting, it’s saving a lot of time for the accountant (and hopefully passing this savings on to the client in the form of fewer billable hours). When diners serve themselves in a buffet and even bus their tables when they’re done, they’re taking on the duties of wait staff – and paying for the privilege. So, why not enlist the help of the people who will use the products you make? Involve them in the design process; get them to work as co-designers to be sure you are producing what they want to buy. When producers and consumers sign off on the process early on, everybody wins. There are a lot of ways to do this, from simply watching how people use what they buy all the way to getting them to design the product themselves.
Fail Early and Often Feedback comes from a lot of places. First, trying looking in your own backyard and ask your own employees what they think. 3M places a high value on staff input. Its employees are allowed to spend 15% of their work time on their own projects. After U.K. retailer Asda started a suggestion program called “Tell Archie” (its chief exec is Archie Norman), 1000 suggestions a month began pouring in. One example: Why not install photo booths for disabled patrons? Employees receive goodies like pens and ties, and then they collect points for any ideas implemented that can be redeemed for cash or gifts.2 Bay Networks, a producer of networking equipment, cut its development time for many products in half by involving its purchasing personnel at the concept stage before specs were written up.3
that really loud Father’s Day tie, they hate surprises -especially when the “gift” they receive doesn’t match what they wanted. It’s not unusual these days to visit restaurants with open kitchens, where diners can watch the chefs at work – and in some cases play a role as well. Many service businesses understand the value of enlisting their customers as quasiemployees1. Sometimes these “helpers” aren’t even aware of their contributions to a smooth operation, but they make them nonetheless. When a rental car agency gets people to obediently board a shuttle bus and line up at the proper place, it is making life easier for its employees. When a CPA firm sends a thick tax information form to a
IDEO, the hot design firm that brought you such wonders as the Palm V, encourages its designers to fail early. The company creates a playroom atmosphere where employees hold “show-and-tells” about new design ideas. IDEO understands that it’s better to fall on your face early in the game. Companies generally underestimate the costs of failing later. Indeed, software development studies show that late-stage problems are more than 100 times more costly than early stage flaws. That may explain why the automotive industry is working hard to develop simulations that identify problems early on. Toyota made a major push in the 1990s to accelerate its development cycle. Its objective: To shorten the time from approval of a body style to the first retail sales of the style in order to keep up with the rapidly changing tastes of customers. Toyota involved more manufacturing engineers in the product and managed to slash development time by over 30%. Chrysler adopted a cross-functional design process back in the 1980s, and cut development cycles by over 40% after pairing its design engineers with personnel from purchasing, manufacturing, finance, and some of its key supply partners.4
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Learning By Observing: Do You Mind If I Watch?
Mass Customisation: Have It Your Way
Involving employees is a great first step – but keeping a close eye on customers is even better. Go to an auto show to look at concept cars, and you can bet someone is looking back at you. Volkswagen used feedback from shows as it refined its new Microbus concept. Attendees told the company the design was too austere (that’s what happens when hippies grow into yuppies), so they added softer, larger seats in different fabrics.5
Henry Ford’s famous maxim that his customers could have any color Model T they wanted – as long as it was black – went over well in his day. But, today’s consumer isn’t having any of that. We have what psychologists call a “need for uniqueness;” everyone likes to feel that in some way, however small, they are special. That’s why a perfume is marketed as: “Cachet. As individual as you are.” This need creates enormous opportunities for companies that can convince us what we buy is tailored just to us and no one else in the world has anything quite like it.
Sometimes just observing people as they go about their business each day can yield great insights. Many companies, such as Rubbermaid, Gillette, Black & Decker and 3M are more likely to watch consumers than to question them directly.6 Their investigators observe consumers as they choose products in stores, and even may go to consumers’ homes to watch how the products are actually used.
A desire for uniqueness is particularly robust among teens. The L-Report, a research service that watches the youth market, reports that Amateurism, a backlash against prefab, is in.9 Punk designers such as Imitation of Christ create unpolished DIY looks. Frayed hems, exposed seams and bleach stains are making a comeback. Final Home’s cardboard couch exemplifies the use of pedestrian material in furniture. Cover Girl even markets a line of nail polishes called “Broken Mirror” that look cracked on purpose.
Warner-Lambert discovered just how important observation can be in research it did for its Fresh Burst Listerine mouthwash. A research firm paid 37 families who agreed to allow cameras in their bathrooms (and this was The need to be special in an anonymous The need to be special before the invasion of “reality world has spawned a bit of a revolution in an anonymous world TV”). Users of both Fresh in manufacturing. Mass customisation has spawned a bit Burst and its rival Scope said occurs when individually tailored of a revolution in they used mouthwash to make products are produced at nearly the manufacturing their breath smell good. But, cost of standardized procedures. Scope users swished the liquid Today, customers are configuring their around and then spit it out, own products, including computers while Listerine users kept the product in their mouths for (Dell), bicycles (Cannondale), CDs (CD-Now), vitamins a long time. One user kept the stuff in until he got in the (Acumin), designer jeans (Levi’s) and newspapers (The Wall car. He finally spat it out in a sewer a block away! These Street Journal Personal Journal). findings meant Listerine still hadn’t shaken its medicineBy giving everyone just what they want, the theory goes, we like image.7 can build loyalty and eliminate unwanted merchandise.10 In some cases you can even identify needs that customers themselves may not recognise.8 For example, the makers of Cheerios cereal discovered a new use for the product simply by watching carefully. They found that contrary to their assumptions breakfast wasn’t always the primary usage occasion for The Breakfast of Champions. Parents of small children wanted to be able to carry bags of healthy O’s to be doled out as snacks. But, observation isn’t just child’s play: Quicken’s “Follow Me Home” program sends developers to first-time buyers’ homes to observe how they use the program. Their findings opened up a whole new market, as they figured out that many small-business owners were using the package to run their firms as well as their personal finances.
Levi Strauss pioneered the mass customisation concept with its Personal Pair jeans for women who struggled with finding a pair off-the-rack that would fit them just so. The company’s research told them that women typically try on as many as 15 to 20 pairs before buying! That helps to explains why one in four of all women’s jeans sold at Levi’s stores in the U.S. are custom fitted – even if these jeans cost more to buy. Companies are finding a receptive market for products that reflect the individual in each of us. Indeed, consider the success of Reflect.com. A venture partially funded by Procter & Gamble, this operation delivers customized cosmetics within seven days. Women who order online can choose from more than 300,000 customized product permutations, even down to a personalized package. Of course, perhaps that’s too much of a good thing! The multitude of choices offered by mass customisation can lead to mass confusion, as when for example a furniture
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store offers sofas in 500 styles, 3000 fabrics and 350 leathers.11 One recommendation is to consult with shoppers to narrow down choices before making specific selections. For example, instead of dropping all these options on a bewildered couple, first ask them to indicate what they like and don’t like about exhibited sofas and winnow out many alternatives first. How does mass customisation work? Modularisation is a common way to achieve it. Components are broken down into modules, then each is mass-produced at low cost and assembled in different configurations. Using this approach, Motorola’s pager division was able to offer its customers 29 million possible configurations while reducing the number of parts used and cutting manufacturing time in half.12 Restaurant industry insiders refer to a similar process called industrial cuisine (which doesn’t sound too appetizing, but it works). In the 1980s, Taco Bell was one of the pioneers of this technique. The fast food firm re-engineered its processing systems and centralized production in large commissary facilities. This enabled the company to deliver fully prepared components to local stores, where bags of lettuce, tomatoes, beans, etc. were combined to form tacos, burritos and other Mexican “delicacies.” Modularisation is only one way to achieve mass customisation, however. James Gilmore and Joe Pine, the “gurus” of this approach, describe four different ways to customize and provide helpful examples:13 1. Collaborative. Conduct a dialogue with the consumer to articulate her needs and make customized products for her. This approach works best for people who get frustrated when forced to select from numerous options. Gilmore and Pine note that Paris Miki, a Japanese eyewear retailer, spent five years developing the Mikissimes Design System. This process takes a digital picture of a person’s face, analyses her features, and elicits statements from her about the look she wants. The customer receives a recommended lens size and shape in the form of a digital image superimposed on her photo. 2. Adaptive. Offer one standard product that users can alter themselves. This is most appropriate when the consumer needs the product to perform in different ways on different occasions. For example, lighting systems made by Lutron Electronics Company of Coopersburg, PA connect different lights in a room. The user can program varying effects for parties, romantic moments or reading. 3. Cosmetic. A standard product is presented differently to different customers. Each uses it the same way, but differs only in how they want it presented. Hertz’s #1 Club Gold Program gives its preferred members a standard rental car. But,
instead of waiting in a long line, the customer can look for his name in lights, go directly to his car, and find his name displayed on a personal agreement conveniently hanging from the mirror. 4. Transparent. Provide the customer with unique goods without letting them know these have been customized for them. This approach is recommended when needs are predictable and when the customer does not want to have to restate his needs repeatedly. ChemStation of Dayton, Ohio sells industrial soap that is used in car washes and for cleaning factory floors. The company custom-formulates a soap mixture that goes into a tank on the customer’s premises. ChemStation monitors usage patterns remotely, so it can deliver a refill before the customer has to ask.
Getting Their Hands Dirty: The Customer As Co-Designer How can firms do a better job of involving customers in the design process? In a total quality management (TQM) organization, quality function deployment (QFD) assures that customer requirements actually do guide the product development process. Surprisingly, though, most firms don’t really put the pedal to the metal in terms of actually gathering information about just what customers do want. And, little research has been done to better understand the potential of co-design. This is indeed the weakest link in the marketing chain. Indeed, classic models of consumer behaviour don’t even address the possibility that consumers interact with competing providers prior to making a purchase – other than evaluating claims made in static advertising messages. These perspectives describe the process of product choice by assuming that people merely react to information they gather about alternatives before buying -- a marketerspace rather than a consumerspace outlook if ever there was one. Building in a mechanism for what one writer terms “customer co-construction” provides a source of competitive advantage.14 As R&D continues to improve the ability to deliver rapid prototyping, the time required to produce customized products will shrink. This implies that a firm’s capability to provide fast turnaround will become a more important attribute when customers choose among competitors. If it takes CDNow three days to deliver a customized music compilation to your door and Amazon. com does the same in a week, you know where you’re going to be placing your order. So, how to do it? One way to think about this process is in terms of the level of engagement by customers. A useful typology looks like this:15
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Design For. A product development approach where products are designed on behalf of the customers. This is the current standard, where (if you’re lucky) a company will get input from specific customer groups in the form of interviews or focus groups. Design With. This approach includes information about customer preferences, needs and requirements as well. In addition, though, customers are shown a set of possible solutions or product concepts and are asked to react to them. Design By. Now we’re getting somewhere. This denotes a product development approach where customers are actively involved and partake in the design of their own product. One useful way to describe the range of current approaches that have been tried in one form or another is to think in terms of two dimensions: the longitudinal and the lateral. The longitudinal dimension refers to the points of interaction between customers and the design process. These points include the stages of specification, conceptual development, detailed design, prototyping and final product. The lateral dimension, in contrast, captures how deeply customers are engaged in the design process at each stage. This dimension describes the role customers play when they interact with the design process and to what degree customers partake in design work.16 A number of different methods are used in various industries to bring customers closer to the design process. These can briefly be summarized as follows:17 User-Oriented Product Development. This describes a human factors/ergonomics engineering approach to product design. It typically is applied to products with man-machine development interface problems. In an iterative process, machine prototypes are developed and tested with users until the problems are solved. Concept Testing. Makers of consumer packaged goods, durables and industrial products may get customer feedback when they are coming up with initial product concepts. Typically, people are asked to react to sketches, models, mock-ups or prototypes of the product-to-be. Beta Testing. Software firms like Microsoft typically beta test programs to be sure the product does what it is designed to do in the customer environment. Consumer Idealised Design.
In a few isolated cases makers of consumer durables involve consumers in the early phases of product design.18 The idealised design process is conducted as a group exercise similar to a focus group, where participants are selected because they represent the target market. The basic idea behind the approach is to get the customers to forget existing products and ignore the feasibility of new designs – the sky’s the limit. Basically, the group brainstorms and eventually decides on a new design along with the reasons they think what they’ve come up with improves on what’s out there. Lead User Method. In industrial contexts, some firms realize that their key customers know an awful lot about what they need and that it’s in the interest of the buyer to work with the provider on developing solutions to their needs. Indeed, in some hightech industries it’s estimated that between 30-70% of new product ideas actually originated with customers rather than with R&D people. A lead user is a person whose needs are similar to the rest of the marketplace -- with the exception that he will face these needs months or even years before the bulk of the marketplace encounters them. Participatory Ergonomics. This approach has been used in industrial settings to design workspaces. The basic idea is that the people who will actually be using the space are put into small groups that design their own working environment.
Virtual Co-Design: Getting Online Feedback Bringing consumers into the product development process can be time-consuming and expensive if it’s done right. Fortunately, the internet allows firms to get inexpensive feedback almost instantaneously -- even though only a few companies are taking advantage of this medium in just this way. For example, Fiat put a link on its website to evaluate users’ needs for its next generation of the Fiat Punto model. Customers prioritised style, comfort, performance, price and safety features. They were asked to share what they hated most about the car, and to suggest ideas for new features. Then they could select from body styles, wheel designs and front and rear designs and they could see their design onscreen. Software captured the final results and also traced the sequence respondents used when selecting options. Fiat got back more than 3000 surveys in a 3 month period; ideas ranged from including an umbrella holder inside the car to building a model with a single bench front seat. The total cost to Fiat was $35,000, petty cash in the world of market research.19 Many firms already are using the internet to get feedback from their own people, though a lot are reluctant to
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bring outsiders into the process. It’s typical for software companies to put beta versions online for internal use only. Yahoo! usually puts up a site internally, but eventually posts a “soft release” to its commercial website. But, the company deletes links to highly frequented parts of the site. This makes it more likely that only more technically aggressive users will stumble upon a beta release, rather than unsophisticated ones who might be frustrated by an error-ridden version.20 Conversion to a web-based format has several compelling advantages. Response time can be minimized because customers can provide feedback from the comfort of their own homes; this information is transmitted directly back and instantly combined with others’ reactions. It is easier to modify the research instrument or to create multiple experimental versions of it, and the feedback can be collected around the clock. The researcher has the capability of reaching a larger and more diverse subject population, and it is possible that responses will be more truthful due to the anonymity afforded by the Web. Since data collection is automated and coding errors all but eliminated, data costs per respondent are considerably lower than with traditional research methods.21
Why isn’t more design feedback collected online? There are several technical impediments to using a lot of visual materials in online consumer research. There may be variations in image resolution caused by the use of different computers, monitors, and browsers. The system architecture must be platform-independent so that Mac users aren’t excluded. In addition, there is always the ubiquitous issue of download time due to bandwidth constraints for users accessing the site from a modem rather than a direct network connection. Finally, there’s the problem of lack of internet access by some segments of the population. This concern is diminishing as the rate of internet penetration in private homes continues to escalate. Still, some segments of consumers are likely to be especially comfortable with this kind of approach, and to be willing to provide input on new product designs. For example, The Yankee Group, a high-tech consulting firm, has studied TAFs -- technologically advanced families that the company estimates comprise about 16% of American households. These households believe that faster, newer, more-advanced products will facilitate home and work life and make leisure time more fun. TAFs see themselves as more technologically and financially sophisticated than
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other consumers. They are usually the first on the block to own the newest digital gadget. Some TAFs admit they are big kids and simply must have the latest shiny toy, but they also believe in the power of technology to help them manage their busy lives. TAFs are more than just an interesting phenomenon to high-tech companies. They also serve as guinea pigs, testing new products and offering clues about what will and won’t work for the mass public. IBM uses TAFs to test new products at home before marketing them. As the marketing and sales program director at IBM’s Home
Networking Solutions observed, “[using TAFs] You can finetune the ease of setup, installation and use of a product that you don’t capture in a lab or storyboard.”22 Although research firms were rather slow to take advantage of the Web because of some of the problems listed above, these initial drawbacks are rapidly being solved. For example, our firm (Mind/Share, Inc.) employs online consumer research methodologies that 1) are visuallybased; 2) allow the responses of large numbers of respondents to be aggregated for analysis; and 3) permit a nearly instantaneous and continuous flow of data to researchers. Our approach also tackles such technical impediments as download time and platform-dependence. How do we do it? We use a web-based interactive data collection technique that allows respondents to manipulate visual images of products as a means of expressing their tastes and preferences. This tool is comprised of a browserbased software interface with an extensive database layer, which handles storage and retrieval of visual images. A web-based approach like this is very valuable for a range of merchandising and marketing decisions. Consider the apparel and home furnishings industries, for example. Typically, a fairly large number of styles -- whether jeans or carpet samples -- are manufactured and sent to retailers. Nobody really knows which will be stars and which will be dogs until market data are available.
Exhibit 1 Sorting Animal Images Onscreen
Letting customers vote with their dollars after the fact is a very expensive way to get market feedback! If customers can point to the likely dogs before full-scale production, firms can trim their initial set of offerings and the savings can be enormous. To illustrate this process, let’s walk through a design study we conducted for Burns Security, a division of Wells Fargo Corporation. Burns decided to revamp its corporate image and as part of that effort the firm wanted to redesign the uniforms worn by its security personnel. Uniforms play a crucial role in communicating corporate image, so choosing the right design is not a trivial issue in this competitive industry.
Exhibit 2 Rating Uniform Styles Online
Exhibit 3 A “Live” Report Page
But what image should the uniforms communicate? Burns Security and its uniform supplier, Lion Apparel, needed answers -- and fast. To provide this feedback we built a password-protected website exclusively for Burns employees. We designed an online survey that gave respondents different design options from which to choose. Their choices were immediately transmitted back to our server where they were combined with everyone else’s for analysis. Soon afterwards, managers who were given access by Burns could log on to a secure website to see a visual summary of the options chosen. Quick responses, quick decisions!. The survey was designed and put on a website within a few days. In this case all respondents were employees of Burns, so they were notified by the company’s President Global CMO™ The Magazine
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to visit the website and each person was given a unique password identifier. Within three days, all completed surveys were received and analysed.
aspects of the design you selected would you change to make it even better? What problems are you encountering with your current uniform?
First, participants were asked to select animals representing the image Burns has now, the image it wants to have, and the image it doesn’t want to have (representing a company’s image in terms of metaphors like animals is a common technique in marketing research). After the respondent “sorted” the animals into these categories, he saw his choices onscreen like the sample shown in Exhibit 1.
Now, things get really interesting. Instead of waiting weeks or months to receive a boring report that few will read, interested managers can log on to a restricted site and receive current updates on the respondents’ uniform choices. Feedback can be accessed from anywhere. This information can be made available to as few or as many employees, clients or consumers as desired. A sample report page is shown in Exhibit 3.
In the next step, the respondent is taken to a page that displays a set of uniform styles. Some were actual styles currently being worn by the firm’s security personnel and others were new styles the company wanted to test. Once again, the employee “sorted” the options onscreen and rated each one on a series of attributes such as sophisticated or sloppy. An example is shown in Exhibit 2. At this point the users of these products also can provide their own, open-ended feedback. For example, what References 1. Scott W. Kelly, James H. Donnelly, Jr. and Steven J. Skinner, “Customer participation in service and delivery,” Journal of Retailing, Fall 1990, 66, 3: 315 (21). 2. Holly Acland, “Harnessing internal innovation: Many companies fail to exploit one of the best sources of ideas available to them - their staff,” Marketing (July 22, 1999), 27-28. 3. Jim Carbone, “At Bay Networks - design is not just for engineers,” Design News (May 18, 1998), 53 (10), S7 (4). 4. Tim Minahan, “Platform teams pair with suppliers to drive Chrysler to better designs,” Design News (May 18, 1998), 52 (10), S3 (3). 5. Ralph Kisiel, “Feedback fuels Microbus changes,” Automotive News, March 12, 2001, 28. 6. Ken Miller, “When you really need to hear consumers,” Brandweek, Jan 20, 1997: 17. 7. Leslie Kaufman, “Enough Talk,” Newsweek (August 18, 1997): 48-49. 8. Dorothy Leonard and Jeffrey F. Rayport, “Spark innovation through emphatic design,” Harvard Business Review, Nov-Dec 1997 75 (6):102-114. 9. Betty Ebenkamp, “Amateur Ours,” Brandweek, December 4, 2000, v. 41, 24. 10. Shelley D. Coolidge, “Pioneered in Jeans, customization spreads to shoes and fragrances,” The Christian Science Monitor, 1996, 89, 24: 9. 11. Cynthia Huffman and Kahn, Barbara E., Variety for sale: Mass customization or mass confusion?,” Journal of Retailing, Winter 1998, 74, 4, 49 (12). 12. Bradford T. Hudson, “Industrial Cuisine Revisited,” Cornell Hotel & Restaurant Administration Quarterly, June 1997, 38, 3, 81 (7). 13. James H. Gilmore II and Pine, B. Joseph, “The four faces of mass customization,” Harvard Business Review, Jan-Feb 1997, v75, 91 (11). 14. Firdaus E. Udwadia and Kumar, K. Ravi, “Impact of customer coconstruction on product/service markets,” Technological Forecasting and Social Change, 1991, 40: 261-272. 15. Based upon a framework originally developed in K.D. Eason, “The development of a user-centered design process: A case study in multidisciplinary research.” Inaugural lecture, HUSAT Research Institute, Longhborough University of Technology, Loughborough, 14 October, 1992, adapted by Kaulio 1998. 16. Adapted from M.A. Kaulio, “Customer, consumer and user involvement in product development: A framework and a review of selected methods,” Total Quality Management, Feb 1998 v9 n1 p141(9). 17. Adapted from M.A. Kaulio, “Customer, consumer and user involvement in product development: A framework and a review of selected methods,” Total Quality Management, Feb 1998 v9 n1 p141(9). 18. R.L. Ackoff, “Management in Small Doses,“1986, Wiley: New York; John Pourdehnad and Patrick J. Robinson, “Systems Approach to Knowledge Development for creating new products and services,” Systems Research and Behavioral Science, January 2001, 18 (1), accessed online 4/3/01. 19. Marco Iansiti and Alan MacCormack, “Developing products on internet time,” Harvard Business Review, Sep-Oct 1997, 75 (5): 108-118. 20. Marco Iansiti and Alan MacCormack, “Developing products on internet time,” Harvard Business Review, Sep-Oct 1997, 75 (5): 108-118. 21. This section adapted from Englis, Basil G. and Michael R. Solomon (2000), Life/Style OnLine©: A Web-Based Methodology for Visually-Oriented Consumer Research,” Journal of Interactive Marketing, 14, 1, 2-14. 22. Quoted in Ristina Ourosa, “Who Are the First Ones Out There, Buying the Latest Gadgets? Meet the TAFs,” The Wall Street Journal Interactive Edition (June 16, 1998).
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Turning consumers into co-designers is all about having conversations with customers. Companies need to understand sometimes you need to be cruel to be kind; let people spout off about what they like and don’t like – when there’s still time to change. Early feedback increases the likelihood that what eventually gets offered is what people want. Turning pawns into partners is a win-win strategy for marketers and consumers alike.
Michael Solomon
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Professor of Marketing and Director, Center for Consumer Research, Haub School of Business, Saint Joseph’s University Professor Michael Solomon is the GMN Programme Director for Consumer Behaviour and has been recognised as one of the fifteen most widely-cited scholars in the academic behavioural sciences/ fashion literature, and as one of the ten most productive scholars in the field of advertising and Marketing communications. Michael’s primary research interests include consumer behaviour and lifestyle issues, branding strategy, the symbolic aspects of products, the psychology of fashion, Marketing applications of virtual worlds and the development of visually-oriented online research methodologies. He currently sits on the Editorial Boards of the Journal of Consumer Behaviour, Critical Studies in Fashion and Beauty, and the Journal of Marketing Theory and Practice, and he recently completed an elected six-year term on the Board of Governors of the Academy of Marketing Science. His textbook, Consumer Behaviour: Buying, Having, and Being, published by Pearson Education is widely used in universities throughout North America, Europe, and Australasia and is now in its tenth edition. His text, Marketing: Real People, Real Choices was published in its seventh edition by Pearson Education and is currently one of the most widely-adopted Principles of Marketing texts. His most recent trade book, The Truth about What Customers Want, was published in October 2008 by FT (Financial Times) Press. He recently co-authored (with Tracy Tuten) Social Media Marketing, the first textbook on this topic that was published by Pearson Education in 2012. His clients include: Bayer Healthcare, Hakuhodo Advertising (Tokyo), H&M, Intel, Johnson & Johnson, Levi Strauss, Prudential Securities, United Airlines, Black & Decker, eBay, Visa, Timberland, and Calvin Klein. Michael is often in demand to deliver conferences, masterclasses and keynote speeches. If you are interested in booking Michael for your event please click here.
Marketing Leaders Of Tomorrow
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PRETAIL Why consumers now love to SHOP for products and services at concept stage.
PRETAIL: A mode of consumption that sees consumers treat crowdfunding platforms as the new shopping malls. Why? Because that’s where current consumer demand for the most innovative, exciting and unique products and being served best than anywhere else, by an army of entrepreneurs and start-ups.
In a previous Trend Briefing on PRESUMERS, we highlighted how many consumers are clamoring to support, be involved with, and fund products and services pre-launch, fueling a burgeoning crowdfunding movement. Now make way for a little less consumer involvement, and more straightforward shopping in the pre-launch arena, i.e. PRETAIL.
Here’s what is fueling PRETAIL, in more detail: 1. The Expanding Global Brain Crowdfunding has unleashed the GLOBAL BRAIN (the collective creativity, entrepreneurialism and intelligence of thousands of individuals and start-ups around the world) on consumerism. And via the mechanism of funding pre-realization, those platforms mean that anyone with an idea can present that idea to consumers, who can then PREchase it. For the first time ever, then, the diversity, inventiveness, and sheer number of innovations on offer in the consumer
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The Trend Report arena can actually match the imaginings of consumers. That’s a crucial new equality of supply and demand: one that did not exist when consumption happened in traditional offline/online stores. Next? That would of course be consumers pro-actively suggesting to the GLOBAL BRAIN what it is they would like to see introduced/built. And then some of them may try it to do themselves, resulting in the ultimate convergence of by and for. Just look at MakeThatThing.com below. And if that reminds you of co-creation, or CUSTOMER-MADE, you’re right, but keep in mind co-creation was always more about brands seeking ideas/help from consumers, while this time it will truly be about consumers demanding what they want from entrepreneurs/ the GLOBAL BRAIN.
2. Perfect Market Fit Consumers indulging in PRETAIL are driven by the thrill of being early, mixed with the thrill of finding a truly exciting or useful or relevant product, especially if it’s something quirky or so niche that it would have never made it down a traditional brand’s production line.
their money, the abandoned PRETAILERS find themselves part of a ready-made community committed to the funding of a particular product: they can simply find another entrepreneur to serve their pre-built demand. (And the community is bound to go after the original (non)-creator, too ;-) * See our Trend Briefing on CLEAN SLATE BRANDS for more on FUTURE FAITH.
4. From Pretail To Etail To Retail The next (and final) step for successful PRETAIL products: becoming absorbed by traditional, mainstream retail. In fact, the new breed of PRETAIL sites (such as Christie Street and Crowd Supply featured below) are already blurring the boundaries between PRETAIL and retail by making it easy for customers to buy successful projects, even long after they’ve reached their funding targets (by comparison Kickstarter doesn’t offer any e-commerce facilities, requiring customers to track the products down elsewhere).
And because the aforementioned GLOBAL BRAIN can present an endless array of innovations to consumers, at near zero cost and zero risk, the PRETAIL market is near infinite.
And we’re already seeing products make the leap from crowdfunding platforms all the way to physical retail, on a global scale too: witness the Dim Sum Warriors comic book below, launched on Kickstarter, now available in Singaporean book stores.
Furthermore, as consumers will only PREchase the innovations they want – and so ensure those ideas are realized* – and ignore those they don’t want, it’s as close to a perfect market as economists can imagine.
So watch out for the first true PRETAIL smash hit, bought (instantly) by millions of consumers, from ‘normal’ stores, with most not knowing, or indeed even caring about its backstory.
* Also, the instant feedback from eager PRESUMERS helps innovators see very rapidly whether or not their product idea is serving the desires of consumers. This feedback helps them tweak their product idea, and can help ensure that even initially-wide-of-the-mark products are a perfect fit when they are realized.
3. Instant Trust The trust barriers that would once have stopped consumers from embracing PRETAIL are fast being eroded to nothing. In a consumer arena made transparent by online connectivity, there is no hiding place for creators who fail to meet their promises. Consumers know this, and they know that creators know. That means consumers can have FUTURE FAITH* that most creators will deliver the products/services they are promising. Yes, that leaves room for some risk. But consumers will accept the tiny risk of all-out loss as a part of PRETAIL. Even if an innovator does disappear with
PRETAIL in Asia Pacific Many Asian consumers, especially in China, don’t have high levels of confidence in e-commerce transactions. Which is why one of leading Chinese payment provider Alipay’s key innovations was the practice of holding funds in escrow until both parties are satisfied. Overcoming these fears, and convincing often-skeptical customers to PREchase products – that haven’t even perhaps been manufactured yet – will be key for any aspiring Asian PRETAILER. PRETAIL in South & Central America (SCA) While there are PRETAIL products succeeding in SCA (witness the Motriz bike shelf example below), this remains a niche trend in the region for two main reasons. First, many (lessexperienced) consumers still find thrills in buying new products the traditional way, as they haven’t been deeply immersed in years of hyperconsumption. Second, thanks to SCA’s strong collective social culture, the crowdfunding arena is more focused on projects that benefit society, rather than being a significant PRETAIL destination. Yet ;-)
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Examples: PRETAIL Platforms: When in September 2012 Kickstarter tried to move away from becoming a PRETAIL destination with its ‘Kickstarter is not a store’ blog post (which announced tightening listing rules to protect buyers from unfinished and unrealistic projects), other sites quickly stepped in and positioned themselves as PRETAIL facilitators and shopping destinations:
Launched in March 2013, Crowd Supply partners with product creators, offering advice on a suitable funding target and production logistics, and allowing site users to PREchase ideas. Meanwhile, creators who have already crowdfunded their products – on Crowd Supply or elsewhere – can make their product available for pre-order or conventional purchase. In April 2013, Pakems Foldable Boots, a lightweight boot designed to be easy to carry while skiing, were available to buy from USD 60. Outgrow.me, Wrappled & Tiny Light Bulbs: One-stop shops for successfully crowdfunded products
Christie Street: Crowdfunded hardware platform that aims to help inventors
Launched in December 2012, Christie Street is a productfocused crowdfunding platform which aims to make PREchasing near risk-free. Creators who submit an idea to the site are audited to ensure they are legitimate, and their idea feasible. Meanwhile, funds are released to creators in stages, ensuring project supporters can receive a partial refund if a funded product fails to materialize. As of April 2013 the DoorBot, a wifi-enabled doorbell that streams video to a smartphone or tablet, had received funding of USD 395,660 (against a target of USD 250,000), and is due for delivery in July 2013.
Wrappled (launched February 2013), Outgrow.me, and Tiny Light Bulbs are online storefronts for products that have reached their funding target on crowdfunding sites such as Kickstarter, Indiegogo and others. By aggregating successfully funded products, these sites inhabit the space where PRETAIL merges with conventional etail. The NanoLeaf LED lightbulb – which makers claim is the most energy efficient lightbulb in the world – had raised over USD 270,000 on Kickstarter by March 2013 (against a target of USD 20,000), and is now available to pre-order via Outgrow.me. Quirky: Store for “socially developed products”
Crowd Supply: A PRETAIL platform and an etail store
Founded in 2009, but worth revisiting for this briefing, Quirky was a pioneer of what it terms ‘socially developed products’. Product creators submit their idea to the Quirky user community, who can suggest changes. Next, users 44 | May 2013
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vote on the best product ideas, and – based on these votes and other factors – Quirky staff choose a number of products to go into production. Stem, a device that allows the user to spay juice straight out of a citrus fruit, retails on Quirky for USD 4.99.
tablet devices after one day of sunlight. WakaWaka plan to manufacture the charger parts in earthquake-hit Haiti, donating one WakaWaka solar powered lamp to the local community for every power station purchased. Dim Sum Warriors: Kickstarter project available in Singapore bookstores
Make That Thing: Production agency for crowdfunded projects
Make That Thing, launched in February 2013 by TopatoCo, a web comic merchandise etailer, aims to help creatives handle the fulfillment side of successful crowdfunding initiatives. One of the first service’s projects was a print version of The Tomorrow Girl: Dresden Codak (a popular web comic) that raised over USD 530,000 from 7,565 backers.
In November 2012, Singapore-based digital comic book Dim Sum Warriors successfully raised over USD 18,600 on Kickstarter, allowing the team to publish its first print graphic novel. The books are now available in both US and Singaporean bookstores and comic shops. Breathometer: A smartphone breathalyzer
PRETAIL Products: Now, clearly there are many thousands of PRETAIL products currently (or soon to be) available to buy online if not in stores. So here’s just a small selection of some that have been delighting customers:
WakaWaka Power: Solar powered charger and LED light Developed to promote responsible drink driving in the US, the Breathometer transforms smartphones into breathalyzers. The portable plug-in device fits into any smartphone’s headphone socket and, when blown into, alerts the user to their blood alcohol concentration through the app. To the end of March 2013 over 3,000 consumers had pre-ordered the Breathometer on Indiegogo, with shipping due to begin in July 2013.
During December 2012, a total of 5,622 Kickstarter backers pledged USD 419,472 – far surpassing the initial goal of USD 50,000 – for a WakaWaka Power, a pocket-sized solar powered station capable of charging smart phones and
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Good Night Lamp: Wifi-connected lamp turns on and off companion lamps in unison, no matter where they are located
The Good Night Lamp is a family of wifi-connected lamps where, when the larger model is turned on and off, the companion lights also turn on and off in unison, wherever in the world they are located. Despite the Good Night Lamp failing to reach its financial target on Kickstarter in January 2013, the product attracted enough attention to proceed to production. Orders are scheduled to ship in September 2013.
SOCCKET: Soccer ball generates power as it’s played with
SOCCKET, a portable generator that doubles up as a soccer ball, attracted over 1,094 backers and exceeded its USD 75,000 funding goal on Kickstarter during March 2013. During play, the ball captures and stores kinetic energy, that can be used to power the included single-bulb LED lamp. SOCCKET is currently available for pre-order through the brand’s website. Karma Chakhs: Ethical ‘alternative’ to Converse produced by Laotian-German furniture designer
Family Rituals: a traditional funeral ritual manual, updated for modern Taiwanese families
In Taiwan, many families own a traditional funeral ritual book, which documents and records the highly ritualistic practice of mourning the deceased. Many current versions do not follow the traditions accurately, which inspired Taiwanese professor Xu Fu Quan to create a correct version. In June 2012, his project – an updated edition of Taiwanese customary funeral rites, written for modern audiences – was successfully funded on ZecZec (a Taiwanese crowdfunding site).
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Karma Chakhs were successfully funded on German crowdfunding platform StartNext in January 2013. Le Van Bo-Mentzel, a Laotian-German furniture designer, started the project as a result of his disappointment at Nike’s purchase of Converse, as now the brand’s iconic Chuck Tailor sneakers are produced by a large multinational with ‘bad karma’. Instead, Karma Chakhs will be produced by Fair Trade-certified manufacturers. Nearly 400 people PREchased the shoes (at cost price only), enabling production to start. The shoes are due for delivery in July 2013.
Global CMO™ The Magazine
Motriz: Design-inspired shelf that doubles as a bike display
Fashion designer and Project Runway finalist Alicia Hardesty collaborated with a quantum physicist and a neuroscientist on Project X Squared, a versatile capsule clothing collection that includes a lightweight lab coat designed to be worn outside the laboratory. As of mid April 2013 the project had attracted over 285 backers, with shipping estimated for July 2013.
Implications & Opportunities: Anything that delights (jaded, saturated, blasé) consumers needs to be on your radar. And PRETAIL definitely touches a few buttons. So how can any (your?) brand become a PRETAILER? Two Brazilian cycling enthusiasts created Motriz, a shelf that doubles as a wall-mounted bike rack, that successfully reached its funding goal on Brazilian crowdfunding site Catarse.me in January 2013. A New Word Every Day: Calendar celebrates Russian language
•• Give up on secrecy. No, you don’t want to share everything with the world and thus your competitors, but why not open up your R&D, and let consumers PREchase ideas that are in the pipeline. Worried about competitors running with your inventions? Then just make sure you have so many of them that they will never be able to keep up. •• And yes, get consumers to present you with the ideas they want to be able to PREchase. PRETAIL initiatives will also support your traditional sales channels. Building a community of enthusiastic supporters will only help whip up excitement among other, more mainstream consumers too. •• Partner with an existing creator/inventor/start-up to co-present a concept for PREchase. Or set up your own branded platform, where creators can post their own ideas in a particular niche (read: you and your customers’ niche).
January 2013 saw Календарь «Новое слово каждый день» (Calendar: A New Word Every Day) successfully achieve its funding goal on Boomstarter, a Russian version of Kickstarter. Created to help preserve the Russian language, the calendar aims to educate buyers on the etymology and meaning of Russian words. Project X Squared: Project X designs lab coats for everyday wear
•• Look at the traditional retail landscape, and think how this will be mimicked in the PRETAIL arena: there’s likely to be a Walmart or Amazon-style megamall (that aggregates all the ideas being peddled on the hundreds of crowdfunding platforms worldwide), as well as destination stores (who’s going to create the first luxury PRETAILER, the first curated homeware PRETAILER, and on and on?).
Visit www.trendwatching.com to view previous Trend Reports and subscribe to their free monthly Trend Briefing. Check out PAGE 17 of this issue for details on trendwatching.com’s new Regional Trend Reports and our great GMN Member Offer.
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Global Leadership Meet GMN’S Regional And Country Directors Reporting directly into the Chief Executive, Regional and Country Directors of Global Marketing Network are appointed for their commitment to the development of a stronger marketing profession. They are experienced marketing professionals with responsibility for leading the development of GMN locally and acting as the local point of contact for our Members and Partners.
Nasser Jamalkhan
Henning Rouchmann
Sajith Da Silva
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Kuwait, Mauritius, Morocco, Saudi Arabia and Senegal
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Constantine Kiritsis
Denmark and Scandanavia
Zubin Sethna
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Sri Lanka and Maldives
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United Kingdom and Ireland
Anthony Michail
Greece and Balkans
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South Africa
Sajith Da Silva fgmn Sri Lanka and Maldives Sajith de Silva is the CEO / Director of eBEYONDS Pvt Ltd - a professional Digital Marketing Solutions company, serving to a prestigious and world-renowned brands with its wide spectrum of solutions. In addition to eBEYONDS, he serves as a board member of many corporate sector organisations in different capacities as CEO, Managing Director, and Director covering varied industries from Digital Marketing (ICT), Watches & Jewellery, Sports timing & Gems drawing on his knowledge and competence in diverse business sectors. As a Fellow of Chartered Institute of Management UK and a Fellow of Global Marketing Network UK and Marketing qualification with CIM, Sajith de Silva possesses extremely good knowledge in marketing & management. He further enjoys over 25 years of Top 48 | May 2013
Corporate Executive level Marketing & Management experience with a proven track-record for consistently delivering results and growth. His association in marketing, world prestigious brands and exposure in global markets have made him a more accomplished marketer & entrepreneur. He has been recognised in the business circles as a committed contributor, a strategist and a creative thinker who has deep insights in all essential disciplines of business management. A visionary leader with personal humility and professional will, he also offers his expertise as a business and marketing consultant to corporate sector and confidently extends the promise of value to any organization.
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Zubin Sethna fgmn United Kingdom and Ireland Zubin Zethna is GMN Programme Director for Entrepreneurial Marketing. During his commercial career spanning the last 22 years, he has worked with various SME marketing departments across a variety of industry sectors including Health Care, Retail, Education, Manufacturing, IT, Music, Travel and Professional Services. Having successfully launched 4 businesses (one of which won a UK National award), Zubin ventured into teaching having sold one of them, and hence his academic career over the past 13 years, enables him to fit neatly into the world of pracademia; practitioner-based academic education. His interest in ‘entrepreneurship and marketing’ has continued in the shape of a PhD thesis which examines Entrepreneurial Marketing in the UK: an ethnic perspective, focusing espe cially on the interplay between marketing, entrepreneurship and ethnicity.
He teaches marketing strategy, innovation and entrepreneurship at University of Bedfordshire Business School where he is Head of Postgraduate Porgrammes. Zubin has also consulted, trained and taught at corporate and HE institutions in the UK, various countries in the EU, China and India. Zubin is a visiting professor at The IFT (India), Managing Partner of his strategic marketing consultancy called Baresman Consulting, and has appeared on BBC television (News24) and radio for his commentary on the UK’s retail industry. He serves on the editorial review boards of the Journal of Research in Marketing and Entrepreneurship and the Journal of Town and City Management. Zubin is currently co-editing a seminal research text on Entrepreneurial Marketing, as well as co-authoring a much-needed student textbook on the same subject.
We continue our introductions next month, highlighting GMN’s Regional Directors for South Africa, as well as Kuwait, Mauritius, Morocco, Saudi Arabia and Senegal. You can find profiles for all of GMN’s Regional and Country Directors on the official GMN website: www.gmnhome.com/regional-and-country-directors.html If you are interested in joining our team to represent GMN in your country or region please contact: darrellkofkin@theglobalmarketingnetwork.com
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Bridging The Gap Andrew Vesey ggmn
Hands up those of you who are content to be trapped in nomans land, in the constant battle between the Marketing mediums of the past and the leading edge technologies and innovations of today (and next week). Good. Seeing as everyone’s hands are still on their keyboards, mice or holding tablets (or a tasty cup of coffee), we can begin today’s discussion.
The Old Vs The New. We see it as a problem for the modern marketer, due to the slew of new technologies and innovations being thrown at us. True, it’s probably more difficult now than it ever has been, but let’s remember, ‘Traditional Media’ was once ‘The future of Marketing’ too. 50 | May 2013
The printing press, commercial radio, television, that crazy thing called the internet that a lot of people didn’t think would take off. Even mobile and digital mediums which are still in relative infancy, are looking over their shoulder to see what’s going to replace them. Thinking back to when I first started in the industry (a meagre 15 years ago), no client even tried sending the design team a digital photo (I’m not sure if anyone in New Zealand owned digital cameras at that point). A couple of years later, they started to trickle in, but the reply was standard: “I’m sorry, we don’t accept electronic images as they are not of acceptable quality to produce your marketing. Please send transparencies or at the very least, a developed print produced by a film camera.”
Global CMO™ The Magazine
Getting It Done
Well let’s have a look at how most of the successful Brands have done it before us (and are still doing it). 1. Understand your market and have a solid grip on ‘Who you are’ 2. Deliver a product or service that fulfils a need 3. Market it through a combination of the most effective traditional and leading edge mediums Keyword there - Combination.
Collaboration Beats Competition. Forget about the TV vs Radio, Print vs Web, Web vs App debates. While it is important to understand the strengths and weaknesses of each medium, it should be to make the decision on how they can work together rather than which of the two deserves your entire budget. In very few markets, will a one medium campaign outperform a mixed medium one. Collaboration beats competition every time.
Nowadays, a little over 10 years later, I can’t imagine many studios being pleased to be handed a bunch of transparencies. A lot of them probably wouldn’t have a clue what to do with them. We now see companies using mobile phone cameras and tools like Pinterest and Instgram to create viral campaigns which, when executed correctly in the right market, can easily outdo the reach and effectiveness of a traditional print advert. So with all this constant change in the industry and everyone looking to find that extra edge, how can you give yourself and your Brand the best chance of success?
We of course all have budgetary concerns, which is why most companies can’t deliver a fully immersive, integrated media campaign anymore - and it just gets more difficult with every new Marketing medium that comes along. Herein lies the importance of understanding each medium to a reasonable level and being able to chose the right ‘tool for the job’ and team it up with the most effective supporting cast. Depending on your product/service and your target market, you’ll find the right combination for you will vary, compared even to some Brands you may consider competition. Be it a print campaign, supported by a web site and social media, or a Mobile App supported by old-school ‘Street Teams’ (and if you want to easily manage your Street Team, then yes - There’s an App for that…), the key to successfully implementing any campaign is understanding the different mediums and blending together the best combination for you.
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Building Bridges. Not Burning Them. Getting the most out of our Marketing implementation doesn’t mean abandoning what’s worked in the past in favour of the new and shiny. It relies on us being able to find ways to connect the old and the new, giving us the ability to reach much more of the fabled Marketing Bell Curve. A campaign that can reach the Early Adopters, Mid Market and even touch the Laggards is a wonderful thing to see (and ones that do it EFFECTIVELY are quite rare). So often, the latest technologies and innovations don’t actually provide us with a truly new medium to work within. What they do is add to the effectiveness or reach of a medium, or help us to bridge the gap between two mediums more effectively.
Case In Point: QR Codes. These little square barcodes (which my friends at QR Code Scotland like to call ‘Paper Hyperlinks’) work wonders for connecting printed mediums with the web and apps.
pedigree breeds. While they can look stunning, and let’s face it, give you a big ego bump because they’re ‘a pure breed’, you have to remember that every single one of those pedigree breeds has some (sometimes major) weakness. How to combat those weaknesses? Well, of course you need to know what they are so you can keep an eye out and avoid them if possible. But, the most effective route is to get yourself a ‘cross-breed’. One that has been chosen carefully to counteract the weaknesses on both sides. You can end up with all of the good and (hopefully) none of the bad OK. all of this is making me want a puppy. So I’d better move on before I buy one. I can’t tell you which is the right combination for you, as every company, Brand and product is very different and so are the markets they operate in. It really is up to you as a Marketer to keep on top of the latest Marketing mediums while not forgetting about the tried and true.
By themselves, they’re useful if you’re using them for highly detailed inventory tracking or for sharing your contact details from a business card to a mobile phone. But as a Marketing tool they don’t really do that much on the surface.
No one expects you to know all the intricate details of every possible option out there, but you do need to know what the options are. Find yourself experts (internally or externally) who can advise you on the finer points of the different mediums and answer the two really important questions: “What are it’s strengths and weaknesses?” and “What will compliment it most effectively?”.
So why the big fanfare and sometimes obsessive need for them?
Once you have these questions answered, you’re well on your way to implementing a successful Marketing campaign.
Well, some of that has to do with new tech hype and not understanding how to utilise the QR Code as a tool. But for any Marketer who actually understands the strengths and weaknesses of QR Codes, the ‘hype’ is actually well worth it. Being able to get a Quick Response (yes, that’s what QR stands for), on the fly from a potential customer is powerful. Instantly connecting them from a magazine advert, flyer or bus stop poster, directly to your latest online campaign, loyalty generating app or ‘TV’ commercial that’s ready to go viral. Other examples include the very new Augmented Reality. Hold your phone in front of a movie poster at a bus stop and the trailer (or a special AR only promo) loads, to give a much stronger message than a static poster ever could. Of course, as with QR Codes, there are limitations. A reliance on mobile internet is the big one for both, but let’s be realistic - you’re trying to connect paper and the web so it makes sense that you need an internet connection. This is a prime example of needing to know your tools’ weaknesses and work within them.
Combining Strengths Of Old And New. Think of all of these different Marketing mediums as 52 | May 2013
Andrew Vesey
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Founder | Creative Director, Vesey Creative Andrew is a member of the GMN Global Advisory Council and the Founder and Creator of Global CMO The Magazine and Director of the New Zealand and United Kingdom based Graphic Design and Branding Agency, Vesey Creative - the official Brand Guardians for GMN. Working in partnership with a wide variety of clients around the globe, Andrew’s business experience includes over a dozen years leading design and branding studios and agencies, including the launch of his own agency Vesey Creative over 9 years ago. Andrew is a strong believer in continually upskilling, learning and staying relevant in business. This ‘education brings growth’ mentality lead him to create Brand Quarterly, a not for profit digital magazine for SMEs, and the magazine you are now reading.
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Your Strategy Our Implementation Mission Accomplished Work with the Brand and Design Agency which specialises in working with Marketers
June 12-14, 2013 Novotel London West One Shortlands London W6 8DR
Special Sessions, 11 June: •• FEISGILTT •• Opening of Life Sciences Business Round Table Preconference Sessions, 12 June: The preconference program is filled with full and half-day seminars and working groups, roundtable discussions and more.
One of the most famous cities in the world and a business center for Europe, London is the host for this summer’s Localization World! Localization World is the leading conference for international business, translation, localization and global website management. Attendees are the people responsible for communicating across the boundaries of language and culture in the global marketplace. With a specific emphasis on global business the conference provides an opportunity for the exchange of high-value information in the language and translation services and technologies market.
Secure registration is now available online: Main Conference (13-14 June 2013) Until 16.00 GMT, 5 June 2013: £950 (Single day: £500) After 16.00 GMT, 5 June 2013: £1,050 (Single day: £600) Dinner Cruise on Thursday, 13 June: £65
Preconference* (12 June 2013) Full-day sessions (includes lunch): £425 Morning sessions (includes lunch): £225 Afternoon sessions (does not include lunch): £200 *Specialized sessions may vary in price. See preconference registration page for details. Registration for specific sessions is required; transferring between sessions is not allowed.
•• •• •• •• •• •• •• •• •• ••
Life Sciences Business Round Table Game Localization Round Table Sales/PM Collaboration Workshop Introduction to Content Modeling FEISGILTT Federated Track Agile Workshop TAUS: Open Source Machine Translation Showcase Localization For Start-ups Localization Sales and Marketing Round Table An Open Model for Assessing and Estimating Translation Quality: A Roundtable Tutorial •• GlobalSight Boot Camp Main Conference, 13-14 June: Here is a sampling of sessions from the main conference program which features a variety of sessions in eight tracks: •• Gaming with Global Gusto! How to be Lean and Mean in the Competitive World of Social Games •• Supporting Customers in a Global, Social and Mobile World •• Is an In-house Translation Team Still a Profitable Investment? •• CSA Buy-side Colloquium: What Business School Never Taught You about ROI •• Global Due Diligence: Technology to Keep Cross-border Deals on Track •• Inside Out: Localizing Products for the World Market, Starting with Internal Customers •• Leveraging Cloud Technology to Align Global Marketing with Local Customer Needs
Subscribe to Global CMO Updates via www.theglobalcmo.com to find out about our special event offer.
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Event Roundup
ASOS #Bestnightever By Carat Wins Campaign Of The Year Agency Of The Year: Starcom Mediavest Group Us Network Of The Year: Starcom Mediavest Group ASOS’ #Bestnightever by Carat Global Management has been awarded Campaign of the Year at the Festival of Media Global 2013 Awards in Montreux. The social media commerce campaign, which saw fashion trendsetters Azealia Banks, Ellie Goulding and Charlotte Free star in music videos wearing ASOS clothes that viewers could click to purchase, was also awarded Best Entertainment Platform and Best Use of Emerging Technology. Agency of the Year Starcom MediaVest Group US was a winner of three categories and highly commended in another three, for a total of three different clients. It won Best Digitally Integrated Campaign and Creative Use of Media for the Coca Cola Polar Bowl; and Best Social Media Campaign for the Puerto Rican Government’s Follow2Unfollow. Latin American campaigns performed particularly well – Best Use of Content was won by OMD for SAP A La Tortrix, which reinvigorated Guatemalan pride by offering a local language audio dubbing service for television programmes traditionally dubbed over in Argentinian or Mexican. First Ever Portable Water Billboard by BPN in Peru, was awarded a Highly Commended for Creative Use of Media. In Lima and surrounding low rainfall cities, billboards were installed that converted humidity in the air to water, as part of a student recruitment drive for the University of Technology and Engineering. Two Indian campaigns were also recognised – Best Use of Mobile went to OMD for Wheel’s One Missed Call campaign and Best Communications Strategy to Mindshare for Kissanpur’s Where What You Grow is What You Eat initiative.
Starcom Mediavest Group. Winners of Network Of The Year
For the first time, three Highly Commended places were awarded, in the Creative Use of Media category. These were Do You Want Duracell With That? by Starcom MediaVest Group, First Ever Portable Water Billboard by BPN and Quality in Your Face Journalism for The Economist by PHD. The judges made the ruling as they felt the category was exceptionally strong. Meanwhile, Hot New Company of the Year in the Media Accelerator Programme (M.A.P) was awarded to Future Ad Labs, whose PlayCaptcha offers short branded mini games as an alternative to traditional ‘captcha’ verifications, to improve user experience, guarantee brand engagement for advertisers and generate revenue for online platforms. Chair of the Awards Jury, and Group Head of Global Media at Mastercard, Ben Jankowski, comments: “We were truly privileged to see such innovative, groundbreaking work from all around the world. It was refreshing to see markets such as Guatemala, Peru and India make their mark. Some of the campaigns we assessed set a real benchmark for their competitors through a clever use of insight and sophisticated execution, and will be talked about for years to come.” Festival of Media Global founder and CEO of C Squared Charlie Crowe comments: “The Festival of Media Global Awards have always reflected the best media creativity from all over the world, and I’m pleased to see so many markets represented with campaigns that were not only strategically strong but also delivered unequivocally against a business’s bottom line. The media sector’s valuable contribution to the advertising industry is clear for us to see.”
Interview with on of the FOMG speakers Jon Steinberg of BuzzFeed. Courtesy of Eileen Schuh of Coolbrandz.ch and Stan Pic of Blogeur.ch
Global CMO™ The Magazine
May 2013 | 55
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Making The List 50 Marketing Leaders Over 50 You Should Know
Part 2 of 2
You’re Never Too Young Or Too Old If You’ve Got Talent Alan See
Let’s recognise that age has little to do with ability. You’re never too young or too old if you’ve got talent. In the marketing world, Advertising Age and Direct Marketing News have their 40 under 40 lists. Forbes has their 30 under 30. This blog post counterbalances with 50 who are over 50 because to my knowledge a list of this nature has never been published. Now, before I present my list let me provide some background details and key learning’s. Yes, in case you are wondering, I am over 50, and this group was mainly pulled together through my personal Twitter followers. I’m currently ranked as the 3rd most followed Chief Marketing Officer on Twitter by Social Media Marketing Magazine. Since I have nearly 60 thousand followers I was confident there would be at least 50 profiles representing marketing leaders over 50 years of age that are street smart, innovative and doing remarkable work. I just needed to identify them, and hope they would admit to being over 50! I also wanted to ask them two questions:
1.
How and where do you find innovative ideas?
2.
What’s the best way to keep your eye on the future?
It has been an interesting and fun process to assemble this list because I’ve learned some things about my Twitter connections that I didn’t know, and I’ll be a better marketer for it. I’ve also gained a greater appreciation for my network in the 40-50 age range who reached out to help me with profile suggestions. They are not yet old enough to make my list and they are too old for the others, but they were still ready to help. Isn’t it annoying when your demographic is ignored? We’ll have to fix that in the future! This project has taken longer than I expected. What you have to consider is that this group is very busy as many of them run their own companies. That means their focus is on growing their business and not on wasteful distractions like lists! I also confirmed that some were not eager to anticipate follow-up tweets and contact from the AARP! OK, what I really mean is that they didn’t want to be branded as old. During my correspondences it was not uncommon for a candidate to say “I love the idea behind your list, but hesitate to participate because I don’t want to be thought of as old.” Age is a funny thing. We think about it differently
Global CMO™ The Magazine
May 2013 | 57
Scott Doniger
at various points in time as it relates to our career. Wouldn’t it be great if we truly recognized that you’re never too young or too old if you’ve got talent? In the meantime, in no particular order, here is the second half of my list of senior marketing connections on Twitter you should know:
John Caldwell @jacaldwell Twitter Followers: 1,812 Principal Red Pill Email www.RedPillEmail.com 1. I try to pay attention to the world around me. My oldest son at 27 is an Internet native, and a lot of ideas come from he and his friends. My youngest son at 2 provides inspiration as he adapts his world to his special needs. One of my best resources is my wife, the consummate (an over-used but appropriate word) shopper; what she buys, what she doesn’t, and why is always an enigma. Oh, and reality TV... 2. By understanding the past and the present; learning from our own and other’s mistakes; and not being distracted by the little things that are easily distracting. Watching and listening to people of all ages while keeping watch for innovative ideas that improve people’s quality of life at different stages throughout life.
@scottd44 Twitter Followers: 333 Senior VP, Strategy and Services Sprinklr www.sprinklr.com 1. Create mindspace (for me, it’s working out and/ or listening to music) so that my unconscious mind is free to solve problems while my conscious mind recharges and regenerates the unconscious with stimulating life. a. Voraciously snack on great “content” i.e. read a lot b. Ask tough questions of really smart people where: i. My social community (mostly smart, snarky people) ii. Diverse connections -- young, old, and mostly not in my industry 2. Make sense of the past in the proper context of what I’m trying to do in the future. a. Ask great questions / interrogate the world b. Create a list of signposts and signals that might be indicators of true future vs. flashes -- being active in this way typically enables me to filter signal from noise.
Christopher Donald @EmailMadMan Twitter Followers: 993 Strategist Inbox Group - Indiemark www.inboxgroup.com
Adrea Rubin @adrearubin Twitter Followers: 1,707 CEO Adrea Rubin Media, Inc. www.adrearubin.com 1. I consume a variety of content (industry events/ trade shows, industry newsletters, social media feeds, etc.) to learn about current issues/ challenges facing my current and prospective clients. I tie that information back to my nearly 40 years of experience in insurance/financial services marketing and, from that, generate ideas. 2. Embracing technology and its influence on industry trends. Also, by staying current with legislative changes that impact how insurance/financial services marketers acquire new customers, especially in the boomers/age 50+ space.
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1. I listen! To most everyone I can in my industry (Email Marketing) and read a lot. I read blog posts, whitepapers, listen on twitter and books. I also talk a lot to those much younger that me that might have a better pulse on “what’s new” and what the cool kids are doing. 2. Again I listen! There always seems to be new companies coming up with new tools or integration that give benefit to the email marketing industry. I try to be open about new options to be more effective with data, testing, and creative. Again I keep the younger crowd close. It seems as we get older we get a little set in our ways, we become less open to outside influence, I try to be open as possible to hearing about and understanding how people connect with businesses. Whether it be with email, social, mobile, etc. I’m open to learning from others.
Global CMO™ The Magazine
Bill McCloskey
Jay Deragon
@billmccloskey Twitter Followers: 1,392 Founder Only Influencers, LLC www.onlyinfluencers.com
@JDeragon Twitter Followers: 8,897 Title: Digital Strategist Company: The Relationship Economy www.relationship-economy.com
1. Innovative ideas come to me most often when I’m doing something not related to business. Soaking in a tub, driving, walking. It could be anywhere, anytime but it is important to be open to ideas when they come. Another great source of ideas is listening to your customers. I had one company that I started in 2000 and one of my clients mentioned that they were looking for a technology that didn’t exist. I listened to what they were looking for, and created a new product to fit their needs. As a result, I launched a new company based on that one conversation in 2003: eDataSource.com. 2. Every morning I read a series of newspapers, blogs, and journals to keep up on what is going on but my best source of information is my network of peers that I communicate with on a daily basis. Being part of a community that is focused on my industry has been the greatest, easiest, and most dynamic method of staying in touch with issues that affect the digital marketing industry.
Jim Lyons @jflyons Twitter Followers: 2,871 Writer/Analyst/Blogger JLA (formerly HP, Lyra Research) www.jimlyonsobservations.com 1. I have always been a big consumer of news national, world, local, sports, entertainment, business, technology - and now find Social Media, especially Twitter, to be a great source of inspiration (to where it leads me, actually). Recently, I heard Ira Glass talk, and directed advice to aspiring journalists and writers, but it holds for all of us, at any stage. He said, you need to spend half your time poking around (“turning over rocks” is my favourite way to put it) so the other half of the time you have something to write about! 2. I have always been an early adopter (at least in many categories) - nothing like hands-on experiences to ascertain something’s impact on the future.
1. I find innovative ideas in the bits of information gathered from collaborating with many on and off line then creating a new mental model with meaning from all the ideas. 2. The best way to keep your eye on the future is to study the disruptive forces that lie at the intersection of technology with the human network.
Terry Brock @TerryBrock Twitter Followers: 5,224 Title: CEO and President Company: Achievement Systems, Inc. www.TerryBrock.com 1. Reading Feedly feeds regularly, producing my podcast, blog & videos, Attending classes at Harvard Business School, Speaking at Air Force Academy and hanging with cool, brilliant people! 2. Learn from the past, but look to the future. Constantly disrupt your staid thinking with fresh, innovative ideas from different sources, new materials and new ideas. Live! Life is just beginning every day!
Adrian Ott @ExponentialEdge Twitter Followers: 48,288 Title: CEO & Founder Company: Exponential Edge Inc. www.exponentialedge.com 1. Collaborating with my clients in Silicon Valley who have innovative new technology and are willing to apply new management approaches, lecturing at top business schools, my twitter community. 2. Build a diverse set of information sources and pay attention to new technology or trends that could provide new business models or approaches.
Global CMO™ The Magazine
May 2013 | 59
Karen Shields
Rick Segal
@MarComMgr Twitter Followers: 33 Public Information Officer/ Communications Manager Gwinnett, Newton & Rockdale County Health Departments www.gnrhealth.com
@MrBtoB Twitter Followers: 1070 Title: President Worldwide & Chief Practice Officer Company: gyro www.gyro.com
1. I find innovative ideas by doing things that help stop and empty my mind. If my mind is busy and filled, there is no time or room for innovation. Walking outside, meditating, playing the piano, reading - all of those give me pause and help my mind make room for innovation. Where is in nature, music and solitude.
1. I don’t find the best innovative ideas, they find me. The secret is to cultivate copiousness. Be very deliberate in filling your mind with the widest variety of sensations, information and stimuluae. Ideas will then sprout like wildflowers. 2. Read science fiction and speculative fiction, and pay real close attention to toddlers and teenagers.
2. The best way to keep your eye on the future is to engage it. Talk to the future - the younger generation. “Kids” in their 20s are bright. They are tech savvy. They totally embrace new. Always wonder . . . always learn . . . and always - as a three-year old would do - ask WHY?
@EricFletcher Twitter Followers: 9,500 Title: Chief Marketing Officer Company: McGlinchey Stafford www.marketingbrainfodder.com 1. Read until my eyes give out -- HBR, McKinsey Quarterly, Fast Company, Entrepreneur Magazine, selected blogs.
Gary Schirr @ProfessorGary Twitter Followers: 77,000 Title: Assistant Professor, Marketing, Radford University www.SMM4Biz.com 1. I find that the key is to stay current in your main area of interest and probe into some entirely different areas. I think creativity is often at the intersection of two ways of looking at things. For example my interests in product innovation and social media have provided some insights and ideas on co-creation. Over in Finance and Economics the trailblazing innovations and new ideas of the last 15 years is to bring knowledge of biases from psychology into their areas: behavioral finance and behavioral economics. Stretch yourself! 2. Stay current and watch the cutting edge. I scan marketing journals, but I also scan Scientific American, Wired, and Fast Company... and go to entrepreneur meetings to see what wild ideas are being talked about.
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Eric Fletcher
2. Talk less, listen more -- to leaders in and out of my industry, to social and market researchers, to a philosopher or two along the way, to bright young minds that surround me.
Kent Huffman @KentHuffman Twitter Followers: 32,019 Title: CMO Company: BearCom Wireless www.BearCom.com 1. Most of my innovative ideas originate during formal brainstorming sessions and casual discussions with other creative marketers, not just those who are over 50, but those who are under 50 as well. I also get inspiration and interesting ideas from my company’s customers. 2. For me, the best way to keep an eye on the future is to regularly read (or at least scan) the leading print publications and content websites written about the wireless industry and the marketing profession. Also, listening to other innovative marketers and participating in social media helps keep me current.
Global CMO™ The Magazine
Mark Burgess
Saul J Berman
@mnburgess Twitter Followers: 4,735 Title: President and Founder Company: Blue Focus Marketing www.bluefocusmarketing.com/ blog
@thnqtnq Twitter Followers: 459 Title: Partner & Vice President Company: IBM Global Business Services www-935.ibm.com/services/ us/gbs/consulting/
1. Create and conduct lectures and workshops for leading universities and marketing organizations. 2. Stay active in social media. Tweet and view learning as a continuous process. Author a new book. Push ahead. Re-imagine. Write content that energizes.
Cheryl Burgess @ckburgess Twitter Followers: 13,520 Title: CEO and CMO Company: Blue Focus Marketing www.bluefocusmarketing.com/ blog
1. On the beach free thinking or traveling cities around the world. Or being inspired by elementary school, high school and college kids. Hanging out with the leading academic thinkers and technical researchers. Connecting dots in new ways! Dare to be extreme and disruptive! 2. Read and travel 300k miles a year. Always find and challenge the underlying assumptions and the norms. Ask why but also why not? Diversify your perspective and inputs. Experience what’s new yourself. Hire the best and brightest but nontraditional as well. Set an environment and expect out of the box thinking. Start with envisioning the future!
1. Vibrant Twitter community, interviews with the brightest minds on social business and social branding for upcoming new book, The Social Employee (McGraw-Hill, summer 2013) (@ SocialEmployee) – Success lessons from big brands, IBM, AT&T, Dell, Cisco, Southwest, Adobe, Acxiom and Domo.
Tony Zambito @tonyzambito Twitter Followers: 1,812 Title: Founder Company: TonyZambito.Com www.tonyzambito.com
2. Listen and engage both online and offline with disruptive innovative thinkers!
Bob Thompson @Bob_Thompson Twitter Followers: 4.815 Title: CEO Company: CustomerThink Corp www.customerthink.com 1. I’m fortunate to manage CustomerThink.com, which features some of the smartest people on the planet in marketing and many other disciplines. So there’s no lack of innovative ideas. The trick is figuring out which ones to use. 2. I like to watch the intersection of customer trends and technology trends. Solve interesting problems there and you’ll invent the future you want to see.
1. I get my best innovative ideas through direct qualitative research with customers/buyers for clients and combining this work with curiosity. Meaning, you need to be able to connect the dots to reveal insight and understanding, which leads to new ideas. Ideas which helps us to see the world differently. 2. Keeping your eye on the future requires a new capability as a result of our hyper-connected society. The capability of assimilating information and translating it into meaning is going to become a much needed skill in the future. My advice to the younger generation in their 30’s for example is to focus in on developing this skill. Our future leaders will be called upon to be forward thinking.
Global CMO™ The Magazine
May 2013 | 61
Brian Kardon
Gary Katz
@bkardon Twitter followers: 11,450 Title: Chief Marketing Officer Company: Lattice Engines www.lattice-engines.com
@garymkatz Twitter Followers: 866 Title: Chairman of Marketing Operations Partners and Marketing Operations Future Forum www.marketingoperations partners.com
1. I play the piano almost every night, even when I travel (you can often find me in empty hotel ballrooms playing the piano late at night). Music uses completely different parts of your brain, and I find it very stimulating. You gotta get out of the hood to find new ideas. 2. I rely on many sources, but I particularly like TED talks and conversations with academics. These take me out of my comfort zone and talk to ideas and possibilities that are often very new to me.
1. Innovative ideas are in rich supply. I find them through researching, exploring, sharing, brainstorming, facilitating and generally being a continuous learner. An idea is only as good as your ability to effectively synthesize and apply it to solve a problem or envision a new opportunity. 2. Look for gaps in the interfaces, longer-term implications and yet-to-be articulated opportunities that when addressed have potential to leapfrog current practice.
Shaun Smith Paul Greenberg
@ShaunSmith_CEM Twitter Followers: 1,292 Title: Founder and Author Company: Smith+co www.smithcoconsultancy.com 1. I study and write about BOLD brands and their inspiring leaders to find out how they are transforming their markets. http://bit.ly/YIwKh3 2. Look at the failures of the past; they are often a guide to the successes of the future.
Linda Ireland @lindaireland Twitter Followers: 1,716 Title: Partner Company: Aveus www.aveus.com 1. Voracious listening. Voracious reading. Voracious travel. All the better when either takes me someplace I didn’t expect, or pushes my point of view. 2. I stay focused on what customer’s value (and will pay for), not just what they’ll accept. What’s the unmet need? Who will solve it?
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@pgreenbe Twitter Followers: 12,540 Title: Managing Principal Company: The 56 Group, LLC www.the56group.com (coming Q3 2013) 1. I have two go-to areas for innovation - an extensive network of innovative people who I can brainstorm with - this ranges from CRM and technology industry veterans to extremely bright kids who are new and fresh to the industry. The second area for inspiration and innovation in business is music, literature and other cultural arenas. In particular, comedy, especially satire sharpens and hones me for thinking in an innovative way. Long live Woody Allen, S.J. Perelman and Saturday Night Live! Among many others. 2. The best way to keep your eye on the future is to pay attention to anomalies that you see. For example, in 2009, a couple of studies appeared that said for the first time in history, more people were communicating via social networks than email. That would be two studies of, let’s say, a thousand. But the fact that those two anomalous studies existed at all, indicated the beginnings of a truly seismic shift that is ongoing (not there yet) where that is going to become generally true, no longer an anomaly. In 2007, for example, NONE of those studies would appear. So find the anomalies, and keep your eyes on them.
Global CMO™ The Magazine
Lisa Radin @milguy23 Twitter followers: 1,562 Title: Strategist Company: Independent www.linkedin.com/in/ lisaradinbrandstrategist 1. To keep my creative juices flowing, I need to consume information – written and from people aka insights. Every part of my being is about info consumption – finding casual, ethnic and exotic treats to feed my brain. I don’t know how the human body works, but ‘this food’ creates an energy that ignites new thinking and always leads to innovation. 2. I keep my eye on the future by tracking over 50 trends from social media to nanotechnology. You would be surprised what you learn by opening your mind to new categories/industries/interests. Twitter is great for tracking business / market intelligence.
Christine Moorman @chrismoorman Twitter Followers: 908 Title: Professor and Founder Company: Duke University, Fuqua School of Business and The CMO Survey www.cmosurvey.org 1. Teaching my smart MBA students. I read broadly and think deeply about marketing issues to create class sessions to improve their thinking. Interactions with my students in and outside of class, in turn, improve my thinking. Every class is a great inspiration to me. 2. I started The CMO Survey to collect forward-looking measures of marketing. These indicators offer insight. In addition, my focus is on customers and what they want and need. When we follow this lead, it is hard to miss the mark.
Are You Compiling A List? Are You on One? If you’d like to share it with the Marketing world, we’d love to hear from you. Email editorial@theglobalcmo.com
Alan See Chief Marketing Officer, CMO Temps LLP Alan See is a senior marketing executive and ranked the 3rd most followed CMO on Twitter. Alan has over 30 years of industry experience helping organizations develop marketing strategies and sales initiatives that power profitable growth. His rare ability to speak Web 2.0 and Sales 101 in the same sentence makes him a popular blogger and conference speaker. He has also served as an associate faculty member at the University of Phoenix where he facilitated courses in Marketing and Management Theory. Alan holds BBA and MBA degrees from Abilene Christian University and currently serves as Interim CMO at DocuStar ( www.docustar.com ).
image: Johannesburg City Centre | iStockPhoto | thegift777
Developing Marketing Capabilities In South Africa Antony Michail
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It’s Time For Change Traditional marketing as we know it — including media, advertising, public relations, branding and corporate communications — has evolved and changed over the past few years at a tremendous rate. Globalisation, technology, the rise of the empowered consumer and the need for marketing professionals to focus more than ever before on demonstrating the ROI they are making are just of the pressures that marketers are facing. All to often many people in traditional marketing roles may not even realise they’re operating within a changing paradigm. And therefore the capabilities they require are constantly changing. Marketers are having a hard time keeping up. Says GMN’s CMO ‘Czar’ MaryLee Sachs, a former US Chairman AND worldwide director of consumer marketing of WPP firm Hill & Knowlton and author of ‘The Changing MO of the CMO’ wrote that “the role of the CMO is probably one of the least understood. Marketing is often seen as a “black box” confused with sales, and which is sometimes viewed as a financial drain on an organisation, funding expensive advertising campaigns, sponsorships and other untold extravagant items. “ Specifically in South Africa, most of the business people define marketing as media, selling or advertising. It is true that these are parts of the marketing and all of us every day are bombarded with TV and radio commercials, emails, sales calls, coupons, and direct mail. But marketing is much more than advertising and selling. In fact marketing comprises of a number of activities which are interlinked and the decision in one area affects the decision in other areas. By its nature, marketing defines how the organisation interacts with its market place. Consequently, all strategic planning, to a greater or lesser degree, requires an element of marketing. Only in this way can organisations become strategically responsive to customer need and commercial pressures.
This year Global Marketing Network is establishing the Global Marketing Standards Council to determine the capabilities that Marketing Professionals require at each and every stage of their career, wherever they live and work in the world. Led by myself the first phase of this work will commence in March with the South Africa Marketing Professional Study™, with the support of GMN’s partners in South Africa such as Advantage magazine. The purpose of the Study is to:•• identifying the capabilities and standards that the leading Marketing Professionals in South Africa possess and their state of readiness in helping their organisations cope with the challenges facing today’s business; •• establishing the capabilities and standards that organisations increasingly require from South Africa’s Marketing Professionals; •• developing the South African Marketing Capabilities Framework which establishes the capabilities and knowledge that South Africa’s Marketing Professionals require in order to deliver increasing value to South African businesses. Haydn Townsend, CEO of Trinergy Brand Connectors welcomes this development. “The marketing model has evolved. Marketing Professionals in South Africa are not only seeking the knowledge to implement the very latest Marketing Practices but are continually seeking stronger representation and the knowledge, insights, inspiration and education they need to help them deliver improvements in Marketing accountability. I wholeheartedly support this initiative and look forward to seeing the results.” The first phase of the research will be conducted in June 2013 with the Study being published later this year. For any further information about this initiative please contact me by email at: antonymichail@theglobalmarketingnetwork.com ~ CMO
64 | May 2013
Global CMO™ The Magazine
GMN Industry Study Global Marketing Standards Council Since its founding in 2005 Global Marketing Network has been resolutely committed to raising standards in Marketing Practice worldwide, and to the development of a stronger, better respected and more unified Marketing Profession. This vision is now widely supported worldwide by Marketing and Business leaders from both academia and industry.
Global Marketing
Network
The Marketing Leaders of today an tomorrow require new capabilities in strategic management and leadership, a deeper understanding of the empowered consumer and how to reach them through digital marketing and social media, an ability to create more profitable customers, a clearer evaluation of how to develop global marketing strategies and a tighter grip on the finances. This year we are launching the Global Marketing Standards Council to identify the capabilities that are required by today’s Marketing Professionals worldwide. With an estimated 20 million people working in a definable marketing role in the world, coupled with widespread acceptance of the need for marketers to become more professional, there is both a very sizeable market, and a clear driver for change.
L L A C L FINA
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Be Part Of Changing The Face Of Marketing In South Africa
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Register And Obtain Complimentary GMN Membership*
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Simply register for participation in the survey at: www.theglobalcmo.com/sasurvey by 30th May 2013 and you will also receive a 6 month complimentary GMN Affiliate membership*. One person will also WIN a signed copy of ‘The Marketing Manifesto’ by David J Hood and a complimentary ticket to a GMN Global CMO™ Forum taking place in South Africa later this year. * Participants must be based in South Africa. Because of this, only South African registrants qualify for complimentary GMN membership and the prize draw.
May 2013 | 65
Event Roundup
Digital Marketing and Social Media Masterclass Tracy Tuten fgmn
Last month I delivered the GMN Global CMO masterclass “Digital Marketing and Social Media Masterclass” in Athens, Greece. This masterclass was the second of three events offered by Boussias Conferences in partnership with Global Marketing Network, as part of the Global CMO Masterclass Series. In the class, we examined how pioneering corporations are using social media to build digital web and marketing strategies, and identified techniques and frameworks to generalize these pioneering practices. During the event, I spoke about how the climate of the web is changing our lives. I explained that because of digital technology, our personal networks are expanding to include people all over the world, but that the potential threat to our physical lives as a result of our online presence is very real. In fact, even during the session, I saw many people using digital technology to communicate with their online networks when the opportunity to listen to wonderful speakers from around the world was available to them in the very same room! The event itself was a wonderful success. With over 100 participants, including brand managers from Audi, Mercedes, Mattel, and Seimens, I encountered advertising professionals who were eager to learn about digital marketing and social media, and was thrilled to watch them soaked up the material. What impressed me most, however, was the basic human kindness present in everyone in attendance. The first part of our session began at 9:30 AM with an introduction to online advertising. I covered models relevant 66 | May 2013
to digital advertising, setting online advertising objectives (with consistency given integrated Marketing communication strategies), design of online advertising, campaign integration and the role of online advertising, and sourcing, selecting and managing marketing services suppliers. After lunch, I explained the role of search engine marketing in digital marketing strategies and how to design search engine optimization (SEO) tactics to support digital marketing strategies. I also touched on ethical considerations relevant for SEO plans. The final bulk of our day was spent covering social media marketing. During this portion of the event, I described and elaborated on the zones of social media marketing, (as outlined in my text Social Media Marketing), including the roles of social communities, social publishing, social entertainment, and social commerce. I also highlighted the importance of using social data for consumer research and measuring the effectiveness of social media marketing strategies. Delivering “Digital Marketing and Social Media Masterclass” in Athens, Greece, as part of the Global CMO Masterclass Series, was both an honor and a pleasure. I do hope you will try and join my colleague Dr Markus Pfeiffer (GMN Programme Director for Digital Strategy and Innovation) at his Global CMO masterclass, ‘Winning the Empowered Consumer’, taking place in Athens on 26 June. Were you in Athens for the masterclass? We’d love to hear your feedback! Tweet it to @brandacity and @TheGlobalCMO.
Global CMO™ The Magazine
GMN Fellow Profile Tracy Tuten
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GMN Programme Director for Digital Marketing and Social Media Strategy and Associate Professor of Marketing, East Carolina University Dr Tracy Tuten is the GMN Programme Director of Digital Marketing and Social Media and Associate Professor of Marketing at East Carolina University where she teaches advertising and social media Marketing. She is one of the leading voices in the area of digital Marketing and social media and brings to GMN a huge amount of experience in developing customised executive education programmes for a number of organisations around the world. Her first book, Advertising 2.0: Social Media Marketing in a Web 2.0 World was published in the fall of 2008. Most recently, she has co-authored a text on Social Media Marketing with Professor Michael Solomon. Tracy’s publications have appeared in such journals as Journal of Marketing Communications, Psychology & Marketing, and Journal of Business Research, among others. She has consulted and/or taught in Korea, Germany, France and Argentina. For several years, she served as a guest scientist for the Center for Survey Research and Methodology in Mannheim, Germany. As a Fulbright Scholar in Korea (2001), she taught International Marketing and Marketing in Cybertrade at the Graduate School of International Studies at Korea University. Following that experience, she partnered with Korea University to develop a Chief Marketing Officer course for Samsung Electronics and taught in the program for three years. In 2007, she served as a Fulbright Senior Specialist, working with the business programs at the Universidad Argentina de la Empresa to redesign curriculum in the areas of Internet Marketing and Marketing research. In 2010, she served as ad:tech New York’s Social Media Marketing Master. Dr Tuten has also been recognised for her excellence in teaching, having received a national award for teaching excellence (Association for Business Administration), a university-wide teaching award from Longwood University, and a teaching innovations award from the Society for Marketing Advances in 2008. In 2009, the Direct Marketing Association of Washington presented her with the O’Hara Leadership Award in Direct & Interactive Marketing Education. She is a regular speaker at conferences and is regularly in the media.
Click below to view a short video of Dr Tuten talking on Social Networks
Hear more from Tracy in our next issue:
The Social Media Issue. Out Monday 3rd June
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Getting Behind The Wheel Of Consumer Behaviour Chris Primos, Courtesy of AdVantage Magazine
Consumer behaviour. We like to predict it, and attempt to control it. Both, however, are notoriously difficult to do. Traditional theory propagates four types of consumers: Those who buy out of habit; those who like variety; the finicky shoppers who require considerable wooing; and the dissonance crowd who perceive little or no brand comparison in their purchase decisions. All this, of course, is overlaid with that rather nebulous method of segmentation: beliefs and attitudes. We tend to believe that if we are to understand things a little more clearly, we must segment. By compartmentalising, we feel more in control. Things make sense inside a safe haven of apportioned logic. Yet the more we divide, the less we rule. Our pigeonhole fixation detaches us from the very objects we seek to understand and influence: human beings, and that elusive thing we so emphatically call a target market.
Hit the Road If you want to really know and understand your market, an accurate map may tell you where it is - but not who it is and what it’s up to. For real insight into what the brand drivers are, best hit the road…and go play in the traffic. Traffic flows. But often times, it doesn’t. Yet whatever the rate or volume of passing traffic, what is most interesting to observe is the behaviour of our fellow, vehicular consumers. There are all manner of target markets navigating Cape Town’s aptly named Hospital Bend, or Johannesburg’s infamous M1 at peak hours. Drive time, we like to call it. And it presents the perfect opportunity for a thirty-second spot. So let’s take a drive and see what we can find out.
72 | May 2013
Drive Time You’re approaching a city centre intersection. The traffic lights are down. It’s five in the afternoon and everyone wants to be somewhere else. Without so much as a by-your-leave, a sleek BMW M3 coupé inches into the hairline gap between your front bumper and the next car’s tail lights. The windows are fully tinted, so you can’t see who the driver is. There is no acknowledgement or thanks for being let in, which you may privately berate and shrug off, or publicly decry by punching your hooter down and expecting some kind of resolution before you ever let go. You automatically classify the driver: a male, high-income, high-flying egomaniac, with no sense of community. A divorce lawyer, maybe. A few minutes go by and you soon forget him. Now you have the other extreme before you, an irritating highway Samaritan, casually letting fellow motorists push in, hop through and pull across. Must be a preacher. Or worse, a churchwarden. Has he absolutely no sense of priority? He’s asking for a surprise bash up the backside. Or perhaps you just take a deep breath and let things take their course. Because you catch an eye in his rear view mirror and realise that, actually, it is the churchwarden in front of you! You thank heavens for small mercies and gladly pay the penance of driving the rest of the way in second gear. Until you get to a traffic circle. Traffic circles sprang up like a new market marvel that grew too quickly for us road consumers to adopt properly. We’re still trying to understand them. Are they four-way yield-stops? Why go around when you can just drive right over the silly middle bump? Who goes first? It’s a case of who dares goes. Within an inch of catastrophe, a plumber’s van and a middle-management, Mercedes C-class – hopefully on her way to a C directorship – halt the entire proceedings. Quite out of character, she bursts like a Jill-in-the-box from her window and screams the most objectionable, personal
Global CMO™ The Magazine
Chris Primos Business Director, Blast Brand Catalysts
insults, clanging with expletives. It demands an equally undesirable riposte from the tradesman. And, of course, there’s a typically South African hangover to this. The woman has to be black, and the man has to be white.
Random Behaviour Mercifully, you find your way home. You have time to do a quick once-over of that market research you’ve been working on tirelessly over the past three months. You do a final recon of those pigeonholes, so you’re able to present your team with a statistically rational target market for your next campaign. But while the numbers tally, they don’t make sense. Not on their own. Why? Because segmentation merely helps us understand what we can never know, let alone pretend to control. Real insight is gleaned from random behaviour – which we have to be present to observe. Ultimately, we get far more insight into human behaviour in one rush-hour’s traffic than a month of Excel spreadsheets. Because in traffic, we are closer to the human being. We’re right behind the wheel of consumer behaviour, with all its attendant market conditions of potholes, eTolls, trolls and taxis.
Having intended since adolescence to become a lawyer, sanity finally prevailed when Chris took his first foray into advertising. A BA (Hons) in English Literature may have had something to do with this, although ‘academia’ has too many syllables for copywriting. Privileged to pass through the hot-shop portals of The White House (Cape Town, 1992-1994) and TBWA Hunt Lascaris (Johannesburg, 1995-1998), Chris loved the long hours and manic dedication so much that he decided to do it all himself. After a two-year stint as a freelancer and consultant to various design, marketing and communication agencies, he established Blast Brand Catalysts with Creative Director Angelo Beck. Chris’s cross-pollinated exposure has primed him for the role of Business Director. Adept at engraining with client operations, he applies a pertinent and practical delivery from the agency. Accountability goes beyond campaign executions. He views the brand no differently from a long-term, financial investment, where stakeholder knee-jerks in times of volatility need to be politely, but firmly managed. Acknowledging professional skills and experience gleaned over the years, he is a fervent investor in mentoring and developing aspiring colleagues. Chris has participated on the board of the ACA since 2006.
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Global CMO™ The Magazine
May 2013 | 73
Global CMO™ Recommended Reads Pioneers of Digital Success Stories from Leaders in Advertising, Marketing, Search and Social Media Mel Carson, Paul Springer Pioneers of Digital showcases the stories behind key people who have fundamentally influenced the way advertising, marketing, search and social media have evolved during the internet era. Springer and Carson have tracked down and documented behind-the-scenes insight, decisions and opinions that inspired digital phenomena such as Virtual Reality, Dove’s ‘Real Beauty’ campaign, Obama’s 2008 presidential campaign, celebrity take-up of Twitter and Artists Without a Label, a free digital music distribution service for independent artists. The 20 digital entrepreneurs profiled span the globe; some performed their ground-breaking work in environments like Google, Facebook, Microsoft, Victors & Spoils, OgilvyOne, R/GA, AKQA, Sapient Nitro and Apple, while others performed digital miracles all on their own. Together these stories expose the secrets of success from pioneers that everyone can learn from. Packed full of unique insight, Pioneers of Digital provides advice and inspiration for readers interested in twenty-first century commercial online thinking. More at www.PioneersOfDigital.com
The Conversation Company Boost Your Business Through Culture, People and Social Media Steven Van Belleghem Runner-up for Expert Marketer’s Marketing Book of the Year 2013 Research shows that consumer conversations, client happiness and empowered employees are the pillars of growth in a successful company. However, many organizations make decisions that contradict these findings and hamper their prospects of expansion. The Conversation Company will help your organization become a business in which people are the key driver of growth, sharing engaging content and building the company’s culture and business objectives. People now expect any brand to have a human ‘face’ and you need to define a clear set of values for both employees and customers, incorporating them in your marketing so that all company communication reflects the DNA of your organization. Based on solid research and including interviews and case studies of companies such as Zappos, Kodak, Nokia and Microsoft, The Conversation Company is the key to sustainable success.
The Complete Marketer 60 Essential Concepts for Marketing Excellence Malcolm McDonald, Mike Meldrum The Complete Marketer is an accessible source of hard intelligence about the marketing discipline, broken down into over 60 constituent chapters - including internet marketing, understanding consumers, market audits, segmentation, advertising and PR, and managing a sales team. Designed as the ultimate ‘dive-in’ resource, the book applies the authors’ marketing know-how to every aspect of the marketing mix, making it an invaluable resource for general managers, non-qualified marketers, and students taking a module in marketing as part of a broader degree course.
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Midnight Worries titbit. Ad agencies were conceived shortly after the Industrial Revolution, when supply began to outstrip demand. Manufacturing excess created the need for the all-consuming consumer. Our new mantra edits Descartes: “Consumo Ergito Sum” – in other words, “I use up, waste & squander therefore I am”.
Are your slumbers bedevilled by numbers? Walter Spoonbill of Spoonbill & Coot exorcises your small hour demons. This month: Consumer Behaviour - & Misbehaviour. Dear Walter, We are a mobile phone network operating in a developing nation. The corporate strategy is to increase ARPU (Average Revenue Per User) by 14% over the next 18 months – without increasing call prices. (In fact, Government is pressurising mobile networks to lower prices.) Research tells us that gambling & pornography are the optimum offerings to achieve target. But is it right to do this in a poor nation? Worried About Consequences Dear WAC, The average marketer lies somewhere between Mother Theresa & Attila the Hun. We are attorneys of things & experiences, representing our clients to the very best of our abilities. Through our collective efforts we have created ever-hungry consumers, capable of devouring future generations in the quest for instant gratification. Coot interjects with a historic
Human beings are the least efficient animals on earth. It takes 2 932 litres of water, four kg of CO2 equivalent gases, seven square metres of land, plus undefined bits of one dead cow & nowadays horse, to make just one burger. So sacrificing this burger for a virtual, mobile peepshow could save the planet, if not your morals. It may well be, Coot muses, an act of supreme self-sacrifice. Our advice, if you want to stay in the business world, is to practise balanced morality. When something weighs heavy on your conscience, lighten up with a few good, if slightly less profitable, deeds. So at the same time as you introduce gambling & porn, offer services like call-a-prayer & low-cost mobile websites for social entrepreneurs. You can also try balancing your moral books when you reflect that these profitable enterprises lead to greater employment & more tax paid – but as Coot says, you should then encourage litterlouts to go on a spree, as this means more employment for street-cleaners. There is, we finally agree a wobbly, murky line that the laws of the land only partially define. As a marketer, we suggest putting your conscience on hold & investigating the views of your stakeholders. What do employees think? Your current & potential customers? Your shareholders? If many share your unease, your company may well be nobbled by the law of unintended consequences that comes into play when the lure
of short-term gains short-circuits the strain of systems thinking. Or you may find yourself stranded with a few like-minded, on your island of morality. Then decide which bridge to cross.
Dear Walter, I graduated top of my class in marketing. But I don’t know if I should make this my career. Will I spend my life persuading people to buy things they don’t need? Conflicted Ex-Student Dear Con-Ex As you move from theory to practice, you are faced with a question the jury is still considering – does good marketing cause consumer misbehaviour, or simply channel it? Coot & I believe humans are hardwired to be excessive & agree with Shakespeare’s King Lear: “Allow not nature more than nature needs, Man’s life as cheap as beast’s. Thou art a lady. If only to go warm were gorgeous, Why, nature needs not what thou gorgeous wear’st, Which scarcely keeps thee warm.” Then Lear is stripped of everything & loses his marbles - so consuming stuff may be the best way to keep you sane. If less is more, Coot asks somewhat rhetorically, why do we always want more? My answer is, needs do not define us, our wants do. I take Coot’s silence as assent. Wishing you a planet of contented consumers,
W.Spoonbill.~
Walter Spoonbill
Wspoonbill@theglobalcmo.com Spoonbill & Coot North Corner, Southern Tip, Western Cape, South Africa
Do e-mail Walter with your Midnight Worry – the most intriguing will be published & answered.
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