Global CMO™ Oct 2013

Issue 8 | Volume 1

October 2013

Take Part In The DNA Of A Growth-CMO Study

by SAP and Human 1.0, with GMN and The CMO Club

Your Customers Are Talking About You. Are You Listening?

Tim Minahan

7 Keys To Improved Brand & Marketing Returns Andrew Vesey

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5 Ways To Turn Big Data Into Insight And Action Laura Patterson

Marketing Misanthropy David J Hood pgmn

The Panel Measuring Marketing ROI

Robert Shaw

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Return On Ideas:

Searching, Selecting And Improving Your Marketing

Global CMO is the Official Magazine of Global Marketing Network, the Global Body for Marketing Professionals. www.theglobalcmo.com

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Marketing Leadership: Is It in your DNA? Are you a senior marketer?

Then consider doing what many of your peers have already done – participate in the DNA of a Growth-CMO Study. In addition to helping the marketing community, you will also gain access to increasingly uncommon, but valuable, insights.

Designed by CMOs to give CMOs an actionable roadmap to success for the next three years, the DNA of a Growth-CMO Study examines the new realities of data-driven, technology-enabled, and people-centric marketing. The study strives to show you the ART of growth-CMOs – how they: •• Act differently from their peers.

•• Relate differently to customers, employees, and other members of the executive team.

•• Think differently about their role.

Participating in the DNA of a Growth-CMO Study is easy. You can either take 10 minutes to complete the survey and/or you can take part in a qualitative telephone interview.

In appreciation of your participation, you will be granted early access to the study results, as well as receive a complimentary 1 year Professional Membership/Fellowship* with Global Marketing Network.

The DNA of a Growth-CMO Study is produced by SAP and Human 1.0, in partnership with Global Marketing Network and The CMO Club.

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Returns Welcome.

Returns On Marketing Investment that is.

Another month gone, just like that. So here we are, back again with another issue of Global CMO™ The Magazine, spearheaded but one of the original masters of database marketing, ROI and analytics, Professor Robert Shaw.

We are also lucky to be able to feature a number of new contributors and four new members on The Panel.

Speaking of The Panel. if you have a question you wold like posed to our experts, please send it through (the email address is no the second page of the feature.

Also, if you are a CMO and have not yet taken part in SAP and Human 1.0’s DNA of a Growth-CMO study, there’s still a small amount of time left. Simply follow the link on the page opposite and complete the 10 minute survey.

You will be helping to build the road map for the next few years with your peers, and as a bonus, get receive a complimentary 1 year membership with Global Marketing Network. It’s a win-win opportunity.

I hope you gain some useful insights from the experts in this issue. And, just for a little ROI for myself, I’d love to hear from you regarding what you liked and what you want more of. Email editorial@theglobalcmo.com or tweet @TheGlobalCMO See you again next month and many happy returns.

Issue 8 | Volume 1

October 2013

Take Part In The DNA Of A Growth-CMO Study

by SAP and Human 1.0, with GMN and The CMO Club

Your Customers Are Talking About You. Are You Listening?

Tim Minahan

7 Keys To Improved Brand & Marketing Returns Andrew Vesey ggmn

5 Ways To Turn Big Data Into Insight And Action

Robert Shaw

Laura Patterson

:

fgmn

Return On Ideas:

Marketing Misanthropy David J Hood pgmn

The Panel Measuring Marketing ROI

Searching, Selecting And Improving Your Marketing

Global CMO is the Official Magazine of Global Marketing Network, the Global Body for Marketing Professionals. www.theglobalcmo.com

Cover Image: Robert Shaw fgmn Global CMO™ The Magazine Issue 8 | Volume 1 | October 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

Fiona

Fiona Vesey

pgmn

Editor-in-Chief

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

Your Key To Being Social: Use the icons included in our contributors’ profiles to...

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View their full bio on the Official GMN website and contact them for Speaking/ Masterclass engagements.

Visit their website and check out their blog Keep an eye out for the GMN Letters FGMN, GGMN, PGMN or AGMN after the author’s name. Letting you know that the person has been elected as a Professional Member or Fellow of Global Marketing Network against globally-established standards and in so doing has been recognised worldwide for their Marketing achievements and is committed to their own continuing professional development. To apply for membership visit www.gmnhome.com

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As the publishers of Global CMO™ The Magazine, we take every care in the production of each issue. We are however, not liable for any editorial error, omission, mistake or typographical error.

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Express written permission of the publisher and contributor must be acquired for reproduction.

October 2013 | 5

Inside This Issue Cover Story 34.

Return On Ideas: Searching, Selecting And Improving Your Marketing Robert Shaw fgmn

THE

PANEL

47. GMN Fellow Profile David Haigh fgmn

16. Measuring Marketing ROI Cheryl Burgess - CEO & CMO, Blue Focus Marketing, Speaker & Author

GMN Programme Director for Brand Valuation

Brian Kardon - Chief Marketing Officer, Lattice Engines Gary Katz - Chairman, Marketing Operations Partners Eric Fletcher - Chief Marketing Officer, McGlinchey Stafford, Author, TEDx Speaker Marion Gamel - VP Marketing EMEA, Eventbrite Alan See - CMO, DocuStar

ting The Marke o Manifest 56. The Month’s Best Podcasts 23. Marketing Misanthropy David J Hood pgmn

The Brand

63. Do We Measure What Is Meaningful, Or 28. Success By Design: 7 Keys To Improved Brand And Marketing Returns Andrew Vesey ggmn 6 | October 2013

Do We Invest With Most Meaning, Things Easiest To Measure??

Walter Spoonbill of Spoonbill & Coot jousts windmills & bean-counters.

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Take Part In The DNA Of A Growth-CMO Study

by SAP and Human 1.0, with GMN, Global CMO™ and The CMO Club

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Your Customers Are Talking About You. Are You Listening?

Tim Minahan

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October 2013 | 7

8 | October 2013

Global CMO™ The Magazine

Your Customers Are Talking About You. Are You Listening?

Tim Minahan

With more mobile devices than humans in the world and over a billion people participating in social networks, today’s customers are more connected and networked than ever before. They’re also more knowledgeable and better informed.

With increasing frequency, customers are shunning vendorowned sources of information and tapping the wisdom of crowds to make buying decisions. In fact, 57 percent of the buying process is completed before a first interaction with sales.

Social media, peer groups, and community sites have taken a lead role in shaping perceptions about brands, products, and companies: •• 79 percent of customers spend at least 50 percent of their shopping time researching products online.

•• 53 percent of them abandoned an in-store purchase due to negative sentiment they uncovered.

Social media accounts for 50% of all web usage and has surpassed e-mail in both global reach and usage.

Marketers that effectively harness its power can engage their customers like never before and create unprecedented value for their organizations.

Predict And Influence Customer Behaviour Today’s customers transact with at least two channels in a buying cycle. According to the study, “Omnicommerce: Taking payments to the next level” a whopping 61 percent of US shoppers look at a store online before purchasing anything in a store. Additionally, 35 percent of US shoppers see an item in a store first, check its price and then purchase it online. To accommodate these new purchasing

behaviours, organizations must provide customers with the right information at the right time, regardless of channel.

Social media provides the ideal platform to do this.

Make Every Conversation Count As never before, your company can see and be seen, talk and be talked about: •• The Global Fortune 100 are mentioned a total of 10.5 million times per month across social channels.

•• 2.4 billion brand conversations take place in America every day.

•• 59 percent of consumers in Asia Pacific comment on brands online Savvy companies recognize the power of social channels and are leveraging them to predict and influence behavior and respond quickly to customer needs. Using tools that can process billions of social media posts across millions of sites globally, they are extracting structured insights that enable them to quickly discover customer needs and trends and quantifying customer perceptions about products, services, and companies to effectively track their market success.

With the right data architecture, marketers can also capture a complete history of customers’ social interactions, prioritize messages received from Facebook and Twitter, and enable collaboration among team members to boost the quality of customer responses.

Are such tools worth investing in? Only if you want to be aware of what your customers and competitors are saying about you. Or know if you have a service failure quickly. Or proactively respond to and resolve a customer complaint before it is made...

Global CMO™ The Magazine

October 2013 | 9

Reign In Big Data Identifying and gathering the right data is not an easy task, but with the help of advanced cloud technology and analytics, it can be done.

All too often an organization may have multiple systems of records with varying degrees of differences in customer information. By partnering with IT, marketing can develop systems to effectively gather customer data, uncover new insights, assess the most effective courses of action and execute them.

Advanced analytical tools and in-memory computing, as an example, have the power to interrogate large data sets quickly. Cloud sales applications provide all the customer information marketers need in a central location, available at a glance and delivered in the right context. The latest customer information can be pushed from home base – anytime, anywhere.

By leveraging the flexible deployment of the cloud, companies can pull together a real-time, 360-degree view of their business from both internal and external data sources, then use powerful analytics to uncover hidden market trends and gain customer insights from big data.

And they can access this real-time information anywhere, anytime from any device and respond immediately to rapidly changing consumer behaviour.

Stop Telling. Start Listening The full value of a customer includes not just their purchase history, but also future selections and behaviour. The cost of acquiring new customers can be high, and in an era of social media, one irate customer can easily have a negative impact on the purchasing decisions of others as well.

Just ask Beef Products Inc. Remember the horrific “Pink Slime” scare? The whole hysteria was initiated by a lone blogger whose message spread like wildfire through social channels and reached a crescendo when it was picked up by the mainstream media. While Pink Slime may have looked unappetising to the common man, it was completely safe and healthy. But consumers rapidly abandoned any products that contained it, causing BPI to shut plants and lay off workers.

Many businesses fail to make the social media connection and only take into account short term returns when engaging customers. For example, if a customer calls into the call centre with an issue, but the call goes poorly and ends with an irate customer, that experience can be easily shared on social channels – potentially costing revenue from more than just one person. In this case, most likely that customer will not conduct any future business with the 10 | October 2013

organization, or at least, minimize it. If the customer has influence on his family or friends, they will persuade others not to do business with the organization. Think passengers stranded on runways who Tweet their discontent…

Engage Your Customers Throughout Their Journey Today’s customers engage with an organization via multiple channels. In order to provide a seamless omni-channel customer experience, marketing organizations must clearly define customer journey maps and understand the interaction channels utilized along the way. Customer preference and contextual information from previous interactions must be carried forward and used to engage customers in each step. Needs and desires must be clearly understood. Help must be delivered. Then – and only then – can adviser status and brand loyalty be earned.

Social media is big. And it’s only getting bigger. By recognising and embracing its power, marketers can transform the very nature of business and engagement and deliver their customers to new worlds of excellence.

Tim Minahan Chief Marking Officer, SAP Cloud Tim Minahan joined SAP when SAP acquired Ariba, the world’s business commerce network. As Chief Marketing Officer, SAP Cloud, Mr. Minahan oversees all of the company’s Cloud-related marketing assets and is responsible for the SAP Cloud strategy and all associated go-to-market capabilities.

A pioneer in business-to-business collaboration, Mr. Minahan led the strategy behind the Ariba Network, the world’s largest and most global business network, as well as the design and execution of go-to-market programs and marketing initiatives to fuel its growth.

Mr. Minahan joined Ariba from Procuri, Inc., where he served as senior vice president of Marketing and helped drive the company’s strategic direction and emergence as one of the fastest-growing Software as a Service (SaaS) application providers. He has also served as chief services officer at AberdeenGroup, senior editor of supply chain management for Purchasing magazine, editor for Electronics Purchasing, and a technology reporter for Government Computer News.

Mr. Minahan holds a bachelor’s degree from Boston College.

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THE MAGAZINE

iStratey London “Digital Marketing Is Dead – Long Live Marketing” The iStratey London event saw over 500 people from various industries brought together all with one thing in common – a passion and interest in marketing. At this year’s event, held at Twickenham Stadium, the theme was “Digital marketing is dead – long live marketing”, an idea that digital marketing could no longer operate successfully as a silo from all other aspects of marketing, and needed to be brought back into the fold.

Speakers confirming this were Hamish Pringle who reminded us that TV isn’t dead and it is the most effective medium for building fame. He presented a new model for marcomms planning: fame, advocacy, information, price and availability – and we as marketers need to understand where things like social media, online, mobile, etc. fit.

If you still were unconvinced that digital marketing isn’t all-important, Dave Trott would have set you straight with his keynote presentation being done with the use of a projector, paper and marker. Talk about old school! But his message was more relevant than ever – creativity is the last advantage brands have over competition, and as always, simplicity is key!

Author John Grant presented on day two about emerging global brands from the East, and how the difference is that Western brands are “made by” while Eastern brands are “made with”. He suggests seven strategies for brands: 14 | October 2013

craft, invent, adopt, fuse, remake, emerge, and citizens and that any strategy is based on local culture when exploring new markets. “Marketing is like sailing, you go where the wind blows.”

The event ended on a high, first with Twitter’s Oliver Snoddy dazzling us with animated graphics in his presentation on how to “Plan for the moment”. First there is the everyday, what people are talking about the most; then live, as in realtime marketing, and then connected, adding an element of depth to what brands are communicating.

Rounding us up at the very end was BJ Cunningham, who captivated the audience with his “Cinderella story” about his own experience trying to start up a company at a young age, succeeding and then falling just as hard. His ending message “what matters most is what people believe” and for brand’s strategy to always consider the “right thought, right word, right action” got him a standing ovation from the crowd.

These are only fragments from two days of incredible speakers, with powerful and influential messages. People left the conference feeling inspired, and with compelling stories to not just focus their marketing strategies on digital, but to think of it as another medium in the realm of marketing.

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Book now online and join us for the marketing event of the year!

Global CMO™ The Magazine

October 2013 | 15

THE

This Month’s Question:

PANEL

Expand on the following: Measuring Marketing ROI A responsibility of the marketing team.

Cheryl Burgess www.bluefocusmarketing.com

CEO & CMO, Blue Focus Marketing, Speaker & Author

Twitter: @ckburgess With big data at every brand’s fingertips, marketing teams should certainly be able to keep their fingers on the pulse of their marketing ROI. However, as co-author Mark Burgess and I explain in our book The Social Employee (McGraw-Hill, 2013), social business models have revealed two essential truths: (1) marketing is everyone’s job, and each employee should embrace brand ambassadorship; and (2) ROI must be viewed in context of other KPIs such as connections made, communities engaged, and amplification of a brand’s message across multiple channels and touch points.

ROI, in other words, is only part of the story, regardless of whose responsibility it is.

Brian Kardon www.lattice-engines.com

Chief Marketing Officer, Lattice Engines

Twitter: @bkardon The marketing team has to learn to speak the language of the CEO and CFO -- revenue generation and return on investment. When marketers only talk about “clicks”, “views”, “awareness” or even “leads”, there is a credibility gap. You need to develop the discipline of measuring everything that you do. The CFO can often be a great partner in determining how best to measure marketing. Too many marketers stay away from the CFO. From my experience, the CFO can be highly valuable in lending credibility to your marketing metrics and spend. The best measures I have found are: (1) Customer Acquisition Cost (CAC). This looks at your total cost of Sales and Marketing divided by the number of new customers in a given period. (2) Marketing-Sourced Deals (MSD). This is the percentage of the closed/won deals where the contact was sourced by a marketing program -- like an event, webinar, Google ad, etc.

16 | October 2013

Global CMO™ The Magazine

Do you have a question you would like some thought leadership on?

Would you like to join our panel?

Contact us at ThePanel@theglobalcmo.com

Gary Katz www.mopartners.com

Chairman, Marketing Operations Partners

Twitter: @garymkatz Measuring Marketing ROI = Respect + Influence + Impact Marketing leaders have a choice. Take ownership of how Marketing is respected and valued in the enterprise. Or operate to the whims of decision-makers who see our function as a marcom shop, second-class citizen or worse, a necessary evil. To impact our own destiny, we need to embrace a measurement and accountability mindset. We need to link our activities to enterprise strategic objectives.

We need to partner with executive leadership to define metrics that matter to them, or they will be defined for us.

Our future is in our own hands. Carpe diem, fellow marketers!

Eric Fletcher www.mcglinchey.com

Chief Marketing Officer, McGlinchey Stafford, Author, TEDx Speaker

Twitter: @ericfletcher If determining the real value of strategy and execution is the ultimate objective, it is critical to ensure that: 1. We are measuring what matters. This is the strategic part of the equation. Clearly identified goals and objectives are essential to accurately measure return on their pursuit.

2. We’re employing appropriate benchmarks and tools.

Many a strategy has been presumed on-target based on benchmarks that have little to do with ultimate success. For example, is gross website traffic really a relevant measure if hits are generated based on a gimmick, and the vast majority of traffic is not the target market?

Measure; but ensure that relevant ROI is the focus.

Global CMO™ The Magazine

October 2013 | 17

THE

PANEL Marion Gamel www.eventbrite.com

VP Marketing EMEA, Eventbrite

Twitter: @marion_gamel Totally! As a marketer, I don’t consider running a campaign as an achievement; only the results brought in by this campaign.

Tracking is key to showing ROI and the digital age gives us the ability to track everything relatively quickly and cheaply.

ROI is what turns marketing from a spender into a revenuegenerating department, therefore a department that deserves its seat at the board.

Focusing on ROI means it’s important to agree with other functions of the business (Sales, finance...) what a desirable ROI is and the consumer lifetime value we are aiming for and what cost per acquisition is acceptable.

Alan See www.docustar.com

Chief Marketing Officer, DocuStar

Twitter: @alansee Certainly there are case studies that document marketingreturn-on-investment (MROI) as well as articles covering the short tenure of marketing leaders who do not quickly deliver measurable results. And now, many advertising and marketing companies tout performance-based business models. In other words, their clients only pay when customers take action. Pay-for-Call, Cost-per-Action, Pay-per-Sale, Revenue-Sharing, Profit-Sharing; make no mistake, those performance-based business models still contain elements of risk for both the agency and their clients. Where am I headed with this? Well, to quote Peter Drucker, “Marketing is not a function, it is the whole business seen from the customer’s point of view.” That means I set the MROI on a higher ground than just individual campaign results.

18 | October 2013

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Marketing Leaders Of Tomorrow

Global

CMO THE MAGAZINE

Are You A Full Time Student?

Write An Original Article For Global CMO™ The Magazine

You Could Be Published & Win!!

Submit your original piece (Max 500 words) on the following topic, by 1.00pm (GMT), 30th December 2013, via the entry form at: www.theglobalcmo.com/leaders-of-tomorrow/

“Given your understanding of the challenges faced by organisations, what are the qualities required to be a Marketing Leader of today?“ • All qualifying entrants will receive a complimentary 1 Year GMN Student Membership • Three shortlisted entrants shall be profiled in the February 2014 issue of Global CMO™. They shall also each receive a collection of the latest marketing and business books to help them be a Leader of Tomorrow.

• The winner (as well as Silver and Bronze awards) will be be announced in the March issue of Global CMO™.

• The winners piece will be Published in March’s issue of Global CMO™ and posted online • They will receive a complementary ticket to a 2014 Global CMO™ Masterclass of their choice • Plus the opportunity to write a Cover Feature Article for Global CMO™ The Magazine in 2014 • The winner will also receive a Years Mentoring from one of our highly respected GMN Fellows • Plus the winning entrant shall secure Annual Academic Membership for their University

Deadline For Submissions 30th December 2013 Entry Requirements, Judging Criteria and Methodology, Terms and Conditions can be viewed at www.theglobalcmo.com/leaders-of-tomorrow/

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Create The Right Marketing Mix To Optimise Your Return On Investment In today’s digital world, traditional marketing alone is no longer enough. Business leaders continue to pressure marketers to be data-driven in every way and to prove the ROI of their marketing spend. Yet, digital tools remain in their early stage and marketers are challenged with different measurement techniques ones that can be challenging to integrate. With so many access points —mobile, social media, website, and tablet, how can marketers create the right marketing mix to generate leads, drive sales, decrease costs, and ultimately optimise the return on investment (ROI)?

Join us at this year’s Digital Marketing Mix & Metrics Summit taking place November 13-15, 2013 in Miami, FL and learn how to create the right marketing mix to optimise your return on investment. Plus, we will address how to navigate today’s top pressures including big data privacy regulations and balancing the thin line between customizing your customers’ experiences while avoiding privacy violations.

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Who will attend?

This event has been designed for those who market P&L and make strategic decisions on resources and the marketing mix. We expect attendees to represent VPs, Directors and Managers of: •• Marketing •• Digital Marketing •• User/Web Experience •• Mobile Media and Experience •• Consumer Insights •• Social Media •• Digital Content & Management •• Brand Management •• Online Strategy •• Web Portal Management •• CRM •• Online Advertisement •• Promotions

CMO Survey Results

Measurement And Social CRM Top Priorities For CMOs Says Research From iStrategy Measurement, video and social CRM are the top spending priorities for CMOs, according to research from iStrategy, the integrated marketing conference for CMOs.

John Whitehurst, global head of iStrategy, says:

The research lists spending priorities for CMOs over the next 12 and 24 months, and measurement is top of the list both in the short and longer-term. Video and branded content is an immediate priority, and over the next 24 months, CMOs will invest in social CRM.

“Long-term, brands are focusing on developing deeper relationships with their customers.

Social media is becoming more ingrained in the business. The natural next step is to integrate social data to CRM systems. As ever, evaluation and measurement stays a top priority, particularly in social media.

The priorities for the next 12 months (2013/14) are:

Last week, P&G’s Marc Pritchard said ‘digital marketing is dead’, which is the focus of our London conference. Digital and social channels are the norm now, and completely integrated to a brand’s marketing programme.”

1. Monitoring, measurement and tracking 2. Video and branded content

As BJ Cunningham, entrepreneur and branding expert (and the creator of ‘Death Cigarettes’), said:

3. Customer engagement

And priorities for the subsequent 12 months (2014/15) are: 4. Monitoring, measuring and tracking 5. Social CRM 6. Customer engagement iStrategy researched the views of 400 CMOs from some of the biggest brands in the world, attending its iStrategy conferences in 2013.

22 | October 2013

“In my view ‘Digital’ is a channel. No more, no less. Sure, it’s a channel that has become increasingly important, but nonetheless it’s just another vehicle or way to tell your story to your people. What matters most is the story you tell, how compelling and relevant it is and how much it engages... how ‘interesting’ it is.

A boring story is a boring story irrespective of the media. To suggest that digital marking is separate from or more important than any other form of marketing is to say the heart is separate from or is more important than the lungs or kidneys. Without all of it you’re dead.”

Global CMO™ The Magazine

ting e k r a M e h T Manifesto Marketing Misanthropy David J Hood pgmn

A Shift In Belief Systems

Forced Conflict

Once upon a time, we liked our customers. We valued them. But what we hear, see and yes, feel occasionally is a dislike for them. They are now seen as a necessary evil.

This means we have a forced conflict to deal with, if we are ever to constrain and negate our Misanthropy. If we are to ever progress from thinking that the customer or consumer is little more than just a necessary evil or an unwelcome interruption in our corporate working lives, then we need to confront our innermost beliefs. Our subconscious even. As I stated in ‘The Marketing Manifesto’ book, “Marketing misanthropy leads to an unhealthy sensation of competition and contempt for the customer rather than one of cooperation and common profit.” The main area of conflict is that our needs are seen to be quite different, and sometimes opposite, to theirs. We of course, want our needs to prevail. Our needs should have primacy - is that not what the received wisdom not so much dictates, but encourages with all its company-centric doctrines, ‘thought leadership’ and training?

What happened? Was it when we - as growing companies, or just career-minded individuals slowly moving up the professional ladder - allowed our belief systems, including how we deal with other people, to be influenced and affected by a profound change; one that moved our personal focus from customer to company, from innovative and entrepreneurial sole-trader or SME thinking to embrace Corporate selfishness?

When did the customer or consumer, change from the very worthwhile and critical lifeblood of your company, to become an external nuisance?

What caused the change... Caused us to change?

The Pressure To Deliver Is At The Root At the core of our individual and collective ‘Misanthropy’ are deep rooted ‘norms’ that manifest themselves as dysfunctional behaviours and rituals: they in turn manifest as changes in emphasis; a self-serving and selfcentred organisational religion whose tenets and primacy is embedded in what is important to us within the organisation and the organisations itself as a whole. For example, instead of an emphasis on quality, quantity became allimportant. Efficiency instead of effectiveness. And so on...

Global CMO™ The Magazine

October 2013 | 23

And before we question that the organisation may not actually be working against the interests of the customers, let us reflect that the organisation’s needs often conflict with our own needs and interests, too...

Wrong Measurements Underpin And Exacerbate Misanthropy I have often argued, as have others, that as we use misleading or erroneous measurements and metrics in business, we wrongly conduct ourselves in line with those guiding mechanisms and behave in a manner that is both illogical and counter-productive. Misanthropy, according to Wikipedia, can be “the result of thwarted expectations or even excessively naive optimism”. We have an enduring belief that the company is always right; the prospect, customer or consumer doesn’t and is out there to do us harm, or at least let us down. We strive constantly, yet are thwarted by those ill-thinking, damn impertinent pesky individuals in the market.

When our corporate activities and efforts come to less than we anticipated for them, we blame the market. It is well know that an individual on the ‘shop floor’ blames middle management for any problems, middle management blames senior management, and they in turn blame the Board, and the Board then invariably blames the faceless and ill-defined ‘market’ or ‘market forces’. Our efforts at improving revenue, profits and making more money are thwarted by the very people we should be serving and serving better - so we think. Its easy to blame.

This results in the underpinning attitudes that result in Marketing Misanthropy - our aversion turns in to enmity.

The markets wont play along with our ‘press 1 for this, 2 for that, then # for this’ mentality, refusing to be b******d around with. How dare they! We create those fantastic propositions, campaigns, customer relationship do-dahs and training programmes all for their benefit don’t we?

As we all develop the ‘natural’ corporate mindset which reinforces the idea that the customer is unreliable (and promiscuous - how dare they buy elsewhere), the more Misanthropic behaviours manifest at Board level; and in turn, those behaviours filter right down to and through our stratagems, marketing mixes, campaign mixes and customer ‘services’.

And we Marketers, tell our colleagues, Boards and others that the market is simply ours to manipulate. How dare we!!!

‘Feeding The Machine’ As we strive to feed the corporate machine, anything that gets in the way of this is felt to be an encumbrance. We live in an alternate reality of our own making. We have, over time, lost sight of our market and customers or consumers as human beings as we have developed formal, structured, corporate thinking and processes to feed the machine or beast, rather than help to sustain a healthy business with our markets in perpetuity. Command-and-control of us, by our Board or others, results in us wanting command-andcontrol over our market. We are as focused on our belief in determinism, just as deeply as the politician.

Combating Marketing Misanthropy

Adversaries, Not Partners The market - our customers or clients, consumers or prospects, often - very often - refuse to go along with our ploys. How dare they!

These pesky markets, those ‘people’ - never human beings or persons - just refuse to conform! (You can witness this type of thinking and behaviour from political parties in particular - those exemplars of misanthropy - that are consistently heard stating that their wonderful, deterministic messages were ‘misunderstood’ or ‘not received’ rather than simply 24 | October 2013

meaningless, ignored or just plain wrong in the eyes and ears of those they would wish to affect.)

The philosopher Thales was “so eager to know what was going on in heaven that he could not see what was before his feet”, and the same could be said of our approach to markets and the people within them. I stated in my last article in Global CMO™ The Magazine (September 2013 issue) that we have not even began to take the first steps to grappling true customer centricity, and our dislike and distaste for the customer or consumer reflects our lack of understanding, never-mind empathy with and towards them.

Global CMO™ The Magazine

We know, as individuals, we fear what we do not understand; that is a well understood facet of being human. But also, we can only empathise, value and work with others that we choose to make the effort to connect with, whilst connecting in the right way. Dr. Stephen Covey said that to be understood, we need at first to understand. Yet, we constantly and consistently request - nay actually demand that our prospects, customers and consumers understand our need to sell and exist, but we don’t understand them at all. They wont play our game, our game that was constructed by us, and is played by our rules ; we should perhaps let them play the way they want to.

to remember this when that beastly customer won’t play ball, or is on the phone again, demanding, demanding... ever demanding...

An obvious and principal example of the effects of Misanthropy is the so-called ‘loyalty’ programme or tactic; lets face it, it is only aimed at creating and maintaining loyalty from the customer or consumer, from them, to us. Wrong, wrong, wrong, on so many levels. Likewise the promotional or purchasing benefits we lazily deploy and think will entrap new customers or keep existing customers in check, enslaving them to our devious devices and clever marketing wiles. Another, more frequent and potent example of Misanthropy is simply how often we talk about ‘us, we, our company’ etc in our promotional blurb or presentations compared to ‘you, your challenges, your importance,your world view etc’.

Emancipate the prospect, customer, consumer - and importantly, our employees. Let’s say goodbye to Misanthropy... ‘That damn customer, always on the phone’ should be seen as a mini-triumph.

Misanthropy is directly associated with the degree of meaningful connectedness with another human and between them; a company is not human, nor is it simply a collection of humans. It demands those humans who work for it to dehumanise themselves and ‘look to the heavens’ rather than the ground under their feet, working towards some supposedly loftier profit cause (and fending off the assumed threat to our job) rather than serving those who actually pay our salaries and wages.

David James Hood

pgmn

Competitiveness Strategist David James Hood is a member of the GMN Global Advsiory Council. 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.

In 2013, Addressing the Marketers ongoing issue of “Getting the Proposition Right, First Time…” David has launched ‘The Epsilon Project’ (on Twitter @projectepsilon) 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’.

How do we start to counter those effects? How can we stop being misguided Marketing Misanthropists, perversely forever at odds with our fellow humans, whom we would wish as long term customers and consumers? Well, lets start by throwing out those horrid and demeaning loyalty stratagems and create something unique. Lets get back to basics and start to treat markets as collectives of human beings, not to be ignored and just subjected to our ‘marketing messages’. Whose ‘relationships’ are not managed as creatures of our own deceptions.

We have to make a real change and redress and recapture a spirit for demonstrable friendliness. Not in cynical customer-relationship-management, perverse corporate governance-speak, or ‘loyalty’ terms based on our dysfunctional internal measurements; but based on our natural human traits, allowing them to flourish, even in an unyieldingly synthetic ‘corporate’ environment.

We need to engage with the Prospect, Customer and Consumer, not in spite of them. Likewise they actually need our organisations to deliver. They have always got another choice - we have less choice than they - so we would do well

October 2013 | 25

Meet The Author Of ‘The Marketing Manifesto’ And ‘Competitive SME’ A One-Off ‘Competitiveness Conversation’ - Just You And Me For the remainder of the year, I am offering a handful of exclusive, intimate ‘conversations’ on a one-to-one basis.

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What Are The Real Statistics Behind The Impact Of Your Social Media Strategy?

Statistics bombard the social media strategist: 65% of UK consumers feel social media is a better way to deal with companies than call centres; 85% of customers expect businesses to be active on social media; 55% more web visitors and 67% more leads are generated by businesses that blog.

Social media has essentially demanded marketers to reevaluate traditional digital marketing strategies to integrate social media networks as a new way of reaching potential customers.

new, we want to teach delegates how to properly utilise the channel to directly work towards business and marketing objectives,” says speaker Patrick Altoft, Director of Search at Branded3. As the event for social media marketers, we’re excited to be involved this year and share our own insights with the digital marketing industry.”

As with any relatively young industry, building a strategy that actually produces results is a core challenge. Additionally, what do these stats really mean for your business?

e-mail smssLondon@ems-ltd.org

Navigating the world of social media marketing is an exciting and thrilling ride. To understand more about where you should be focusing your social media strategy to maximize its impact on your business and produce measurable results, join your fellow marketers in attending the Social Media Strategies Summit (SMSS) in London this October, the leading educational social media event in the UK. “As an area of digital marketing which is still fairly

www.socialmediastrategiessummit.com/london-2013.html

To learn more about the Social Media Strategies Summit, London: or call +44 1225 462298

Book Now

Europe

Social Media StrategieS SuMMit

Successfully Implement Effective Social Strategies in Your Company Today 23-24 October, 2013 | Tower Hill Dexter House | London, UK Keynote Speakers Include:

Maya Grinberg Wildfire by Google

Dara Nasr Twitter

Interactive Workshops Provide a Roadmap to Execute Your Company’s Social Goals

#SMSsummit

Featured Speakers Include:

Peter Briffett LivingSocial

Jim Rosenberg World Bank

Case Studies from Top Brands & Industry Leaders

Antony Robbins Museum of London

Leading Strategies, Tactics, and Tools to Leverage the Best Social Channels

15

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www.socialmediastrategiessummit.com | smssLondon@ems-ltd.org |

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Global CMO™ The Magazine

#SMSsummit | 441225462298 October 2013 | 27

The Brand

Success By Design: 7 Keys To Improved Brand And Marketing Returns Andrew Vesey ggmn

They say content is king.

But if that king looks like a pauper, how much respect will they get?

To get the best returns on your brand and marketing spend, you need to have the respect of your target audience.

Whether we like it or not, people will almost always ‘judge a book by it’s cover’. If you want people to ‘read your book’, then it needs to be visually appealing and portray the appropriate level of quality and professionalism.

To help you in your mission to improve your returns, here are your seven keys to success.

1. Build A Complete Visual Identity It’s difficult for people to visually represent your brand if they don’t have a clear idea what it looks like. Review your brand manual (if you don’t have one - get one) and find the gaps in your brand. Approved logo and variations, fonts, brand elements, colours, basic messaging and image selection criteria are all important in painting a complete picture for your designer to follow. Once this is done, ensure you have original ‘vector’ files of your logos and brand elements, plus all of your brand fonts. Package these files up with an electronic copy of your brand manual and you can easily supply your complete visual identity to any supplier or media outlet.

October 2013 | 29

2 Systemise For Efficiency And Quality

6. Avoid ‘Design By Committee’

Time (is money) efficiencies and improved quality assurance can both be created through the correct application of design. The foundation stone of this is the systemisation of your brand and visual identity. From here, you can create a number of standardised design elements and templates for regularly re-used materials. Done right, you will end up with a design toolkit which allows for a great versatility of design within your brand guidelines, without having to reinvent the wheel all the time.

While getting plenty of feedback is great and securing buyin from people through consultation is vital, it is important to keep the decision making circle as small as possible.

It is the decision-maker’s job to take all the feedback and recommendations received, and action those that are appropriate. This maintains focus on the brief, plus can save a lot of time and money.

3. Remember: Good Design Is Only An Amplifier

Your brand and marketing are vital to the success of your business. Make sure you put them in the hands of someone you have faith in. There will be times when you just don’t know how to go forward and you’ll need some advice you can trust. You also need to know that they are willing to advise you against something if they believe it to be an incorrect decision.

Great design on it’s own, more than likely won’t make you a leader in your market. It takes a combination of a complete (and appropriate) brand, a great product/service, solid systems, a wonderful offer, etc, etc. Getting your design right will be the difference-maker with competitors on a similar level to yourself. Don’t sacrifice the rest and hope design alone will get you to the top. A lemon is a lemon, no matter how pretty it is.

On the flip side - bad design alone can torpedo your chances of success.

7. Find A Designer You Can Trust

Go forth and conquer with your command of the Seven P’s of marketing: Product, Price, Place, Promotion, People, Process and Physical Evidence - and your secret weapon the eighth P: Presentation.

4. Design For Your Target Market With all the market intelligence and customer insights available to us today, and the (positive) peer pressure to be more customer focused, it’s easy to get caught up in ‘the marketing’ and forget that design is a part of that marketing. You’ve put in all this time and energy to make sure your product/service, brand values, messaging and promotions are just perfect for your target market. So don’t drop the ball and settle on a design just because it appeals to you (unless of course you are the ‘ideal customer’ - then you’re onto a winning formula).

5. Be Willing To Experiment As with the way you try different promotions, and test the same promotion with different groups and at different times of the year, it is also beneficial to be constantly testing your designs. Regularly make small changes (and a major one from time to time) and find out how it affects your promotion results. As with promotions, it’s the measuring and analysing of the results that’s important.

Without measurement (and action on that measurement) it’s just change for change’s sake. Remember: adjust the promotion OR the design, not both. Otherwise you won’t know what results they each produced.

30 | October 2013

Andrew Vesey

ggmn

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.

2014 will see Andrew’s first book for SMEs published “The Brand GAME - Business Growth Through Real World Brand Management”.

YOUR

BRAND OUR

TEAM

Coming Soon To A Brand Near You

VESEY CREATIVE LIMITED presents in association with BRAND QUARTERLY a VESEY CREATIVE production ‘THE BIG REVEAL’ starring YOUR BRAND and OUR TEAM offering BRAND ESTABLISHMENT, BRAND REVIEW, BRAND MANAGEMENT, BRAND IMPLEMENTATION and BRAND DEVELOPMENT based on YOUR COMPANY VISION supported by a VISUAL IDENTITY MANUAL plus Graphic DESIGN, PRINT MANAGEMENT, WEB DEVELOPMENT and MARKETINg consultancy in conjunction with Strategy, tRADE SHOW DEVELOPMENT, SOCIAL MEDIA, PHOTOGRAPHY and COPY WRITING produced by FIONA VESEY directed by ANDREW VESEY

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Be Part of the Future of Marketing Join GMN and become more than just a number We enjoy the collaboration and support of a great many long established, highly successful and world-class individuals and organisations from both academia and business.

So when you join GMN you become part of a network containing some of the world’s leading marketing experts. Assuring you that you are in good company, and part of growing global network of Marketing Professionals where standards are high… and rising. Connecting you with thoughtleaders, so you can network with senior decision-makers, access the very latest research and practices and improve your marketing capabilities

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• Be awarded GMN letters and Certificate to demonstrate that you have been recognised as a leading Marketing Professional • Receive a Seal for use on your website and promotional materials once you become accredited • Get profiled in the Online Members Directory • Receive invitations to special networking events, book launches and selected conferences • Qualify for substantial savings on future GMN Certification, Executive Education and Conferences • 25% discount on all Kogan Page books and publications • 10% discount on Design and Brand Management services from Vesey Creative • Access to premium Members only content on Global CMO™ The Community • Download access to the full Global CMO™ The Magazine back catalogue • 20% discount on advertising in Global CMO™ The Magazine • Premium Members Only offers in Global CMO™ The Magazine and Global CMO™ The Community

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Our Global Family GMN And Renato Pita On The Right Track It was on a warm September afternoon that Renato Pita made the most of an inspired day by making a shakedown to his Peugeot 208 R2 while some guests were looking forward to a co-drive experience. One of these guests was Darrell Kofkin, GMN’s Chief Executive.

Darrell Kofkin had the opportunity to open the partnership with the Portuguese team differently with an intense experience, feeling the skill, safety and speed aboard Renato Pita’s Peugeot 208 R2. At the end of the loop he translated the experience with only one word: “Amazing!”

The project led by Renato Pita has been part of GMN’s family since last July, so GMN was one of the partners invited to participate in a co-drive experience behind the wheel of the Peugeot 208 R2 that the driver takes to the European Rally Championship. The shakedown was held in an airfield in Maia, a Portuguese city which was recently elected European City of Sport 2014 by ACES Europe – European Capitals and Cities of Sport Federation. That location wasn’t chosen randomly: it has the same kind of paving and tracks of the Croatian stages which makes it perfect for road tests. With the support and presence of the local Mayor everything was set to offer an exciting and breathtaking experience.

Who knows if Darrell didn’t get new ideas to “drive” the challenging tasks he has ahead of him and pursue to inspire, educate and inform!

Maia - European City of Sport 2014 Click the image to via YouTube

One by one, partners and sponsors experienced what it is like to sit next to a driver on a baffling and tricky loop onboard of a fast racing car.

Photo | Jorge Cunha

Global CMO™ The Magazine

October 2013 | 33

Return On Ideas: Searching, Selecting And Improving Your Marketing Robert Shaw fgmn

I first became fascinated by the subject of marketing decision making 15 years ago. The Financial Times had hired me to research and write a report to answer the question “how do marketing directors search for and select marketing ideas that drive peak performance for their companies?” After the report was published I have continued studying marketing decision making in over 100 organisations right up until the present day.

34 | October 2013

As a result, I’ve been privileged to watch the world’s most talented marketing people at work and shared their candid thoughts about how they make decisions. And as new technologies have emerged, it’s been endlessly fascinating watching them choosing the new places to spend their hard earned marketing budgets.

Global CMO™ The Magazine

Ideas

IMAGINE value

The Infinity Model

Decisions

PREDICT value

Learn & Improve

DEMONSTRATE value

Learn & Improve

Navigating The Never Ending Journey

How To Imagine Value

Top practitioners never stand still, they’re explorers, constantly searching, on a never ending journey of marketing improvement. And they navigate this journey with decision-making tools and methods that set them apart from the average marketer. The infinity model (right) distils the essence of these navigation methods.

Marketers use their imagination at three levels:

Imagination is fundamental to the never-ending search for marketing improvements. The best marketers explore lots of factors that impact customers: not only marketing communications, but also product design, packaging, pricing and promotions, convenience to buy, quality, complaints handling; even when they are not wholly responsible, they make sure that the customer viewpoint is represented in all decisions that the company makes.

Marketing Mix

Before every decision that affects the customer, the top practitioners try to predict how the customer will respond, using the best available evidence. Even when the future is uncertain, what matters is having joined up thinking about the customer and financial impact, without being dazzled by novelty or artistry of the new ideas.

After decisions are made, it is important to demonstrate the results, good or bad. To do this, information is needed about customer behaviour before, during and after the decision period, together with information about other factors that have impacted the customer over the same period. The purpose is not to attach praise or blame to the decision or its maker, but to learn and improve.

•• marketing mix •• value proposition •• strategic portfolio

Marketers are mixers of ingredients, the myriad activities that can encourage more customers to buy more products, more often, for more money. Top decision makers question and change the mix as old marketing ingredients get stale and need refreshing, recognising that in today’s markets there are a dazzling range of new marketing ingredients available – social networking, blogs, search engines, banners, SMS, email and experiential promotions.

Innocent Drinks was started in 1998 by three friends; by 2002 sales were £6.5m and its owners wanted to keep growing by 50 percent annually.

The mix to succeed involved distribution in all key food and drink retailers; prominent displays on shelves; eye catching promotions (they got grannies to knit woolly hats for the Innocent bottles, and for every one sold they gave 50p to charity); distribution of excess stock to the homeless; a health tips book; Fruitstock festivals, attended by 120,000 people; and free events for retail staff as a thank you. In 2007, their reported turnover exceeded £100m.

Global CMO™ The Magazine

October 2013 | 35

Good working practices •• Translate the mix into concrete ideas for future marketing activities.

•• Review evidence of mix effectiveness by looking at recent activity.

•• Rethink the mix based on reviews of this evidence.

•• Switch budgets from weak to strong mix elements, on a rolling monthly basis.

•• Monitor these ideas from their emergence, through prediction and post-launch.

•• Subject all marketing mix ideas to predictive tests before launching them and also demonstrate their value after launch into the marketplace.

•• Make sure that not too many small ideas are allowed to proliferate without adequate scrutiny.

•• Plan and schedule all marketing mix activities and ensure their costs and predicted effects on sales revenues are understood by sales and operations planning.

Value Propositions At the next level, marketing managers look at the value propositions on offer to customers. While marketing managers seldom have total responsibility for product and pricing decisions, the best marketers make sure that such decisions take into account the best possible evidence.

They look for gaps in what’s offered: gaps in price, gaps in pack-sizes and types, gaps in varieties, flavours, etc.

They also look at the trade-offs between price and volume, setting prices to maximise profit contributions.

Bic® is a famous brand that allowed nonmarketers too much freedom to launch new value propositions. Bic® perfume and Bic® pantyhose were launched on the basis of management hunch and guesswork, without serious input from marketing. After investing heavily, the products failed to sell.

Bic® management admitted defeat and the manufacture and production of these products were closed down.

Good working practices •• Use market research to understand the subjective beliefs of customers about your products and services and how they are priced.

•• Think imaginatively about ways to address negative comments and how to exploit positive ones.

•• Create a constant stream of practical ideas to keep 36 | October 2013

the value proposition appealing, such as add-on services, re-packaging, re-pricing, financing deals, new varieties, co-ordinated price and feature changes and big new product ideas.

•• Monitor these ideas, from their emergence, through prediction and post-launch •• Subject all value proposition ideas to predictive tests and also demonstrate their sustainable value after launch into the marketplace •• Plan and schedule the timetable for these activities, and ensure that they are fully understood by sales and operations planning.

Strategic Portfolio At the highest level, marketing managers help the company decide where to invest money and resources strategically, across categories, markets, brands and products.

Marketers need to ensure that the voice of the customer is accurately reflected at these senior executive decisions.

Tesco entered the US in 2007, attempting to create a chain of convenience stores selling fresh food. Its predicted market share took no account of marketing insights. Research by the marketing faculty at the University of Florida studied the market shares gained by new entrants into existing markets and showed that it follows a clear mathematical pattern where the new entrant’s share is capped according to a formula based on the numbers of incumbent competitors. Had Tesco done these calculations, they would have revised down their market share forecasts.

They simply faced too much incumbent competition. Recently Tesco decided to pull the plug on its loss-making Fresh & Easy venture and announced a £1.2bn writedown on its US assets.

Good working practices •• Marketing represents the voice of the customer for all senior executive decisions about strategic issues.

•• Cash is invested into the brands, products, markets and segments where it will generate the maximum cash inflow.

•• There are hundreds of marketing ideas each with distinct properties and functions, and they must be classified and categorised under a small number of headings to make the portfolio manageable. Market segmentation is an important tool to assist with this classification.

Global CMO™ The Magazine

•• Allocating marketing budgets in a fixed ratio to sales revenues is to be avoided, since this over invests in yesterday’s breadwinners and starves tomorrow’s breadwinners.

•• Cost-benefit predictions and the application of consistent risk-reward criteria are used to assess the initial ideas about portfolio investment priorities.

How To Predict Value A good marketer will make predictions about the ideas created by their imagination to distinguish between valuable ideas and throwaway ideas.

influence demand, such as competition, the weather, day of week, time of year.

When data is scarce, it is still possible to have models.

Benchmarking data is available; media reach models, based on cost-per-impression, also enable models to be constructed; market structure models, based on analysis of the competitors in any market and their marketing expenditures, revenues and margins, also enables models to be constructed.

Marketing mix modelling is also useful for scheduling spend by week, taking into account weekly changes in media costs and also weekly changes in total market demand.

•• Marketing Mix Models •• Value Proposition Forecasts •• Strategic Portfolio Models

Marketing Mix Models To find the optimum marketing mix, top practitioners use a technique called marketing mix modelling. It explores all possible ways of allocating the marketing budget across the mix elements - TV, press, internet search, internet display, DM, etc – and finds the mix that is predicted to yield the biggest marketing RoI for a given total budget.

Predictions methods depend on the availability of data.

Data rich companies use econometric analysis to estimate the elasticity of demand in response to the various mix elements, also taking into account other factors that

A bank uses marketing mix modelling to predict the optimum media laydown pattern over a 52 week year. First it uses econometric modelling to find the demand elasticity attributable to each media channel. Next it uses the elasticities to calculate the laydown pattern that maximises RoI. The graph below shows the existing laydown pattern (coloured area graph) vs. the optimum laydown (the black line). The existing pattern is very bursty, but the optimum is much smoother.

Optimisation in this way increases RoI by a factor of 2.5 times the existing RoI.

Global CMO™ The Magazine

October 2013 | 37

Figure 2

Figure 3

38 | October 2013

Global CMO™ The Magazine

Value Proposition Forecasts Several methods are available to predict the impact of different value propositions. For new product development, conjoint analysis is a powerful predictive method.

For pricing decisions, portfolio gap analysis. Figure 2 shows a gap analysis in a consumer goods market (names have been changed for confidentiality). Company Omega is clearly under-represented in the price ranges £0.00 to £0.50, £0.60 to £1.30 and above £1.80. Price elasticity analysis (Figure 3) show the SKUs for three of Omega’s brands: Alpha, Delta, Nov. They are mostly underpricing, gaining volume but losing margin. My running a predictive optimisation model, they identified the optimum pricing for their SKUs and by changing their prices they increased their profit by more than 20%.

elasticities. The model then calculates the allocation that will maximise EBIT (Earnings Before Interest and Tax) over a five year period.

How To Demonstrate Value A good marketer will make an effort to work with the management accountant to demonstrate which of their ideas have added value and which predictions were accurate. For every new marketing idea, they make a prediction about its future effects; they also pre-plan how they are going to demonstrate its effect when put into action.

•• Econometric modelling •• Price and promotion reporting

Strategic Portfolio Models

•• Strategic Reviews

Deciding how to allocate marketing budgets across the product portfolio and across markets is one of the most strategic decisions a company can make, and can have a massive impact on business results.

An international bank uses strategic portfolio modelling in this way. Their modelling consultants use market structure models of the competitive set in each country and for current accounts and credit cards, to estimate

Econometric Modelling Econometric modelling is a technique that enables brands to evaluate the effects of different marketing activities and other factors upon sales. It does more than just produce an equation. It also tells you the contributions of the various factors that contribute to sales, as shown in the chart below. In particular, the incremental sales generated by media spend can be estimated, and this, in turn, can be used to produce an RoI for marketing spend.

Econometric Modelling

Global CMO™ The Magazine

October 2013 | 39

Price And Promotion Reporting

Strategic Reviews

Knowing the impact of pricing and promotional decisions on sales is important. Econometric analysis and other statistical techniques can help decision makers report results instantly.

Top performers gather data from outside their own firm, about their business environment. They look for external factors that have influenced their revenue and profit patterns. These will include competitor activity, economic trends and daily and seasonal customer habitual activity patterns.

A supplier of consumer products to UK supermarkets (Tesco, Sainsbury, Asda, Coop and Waitrose) uses an analysis and reporting system to review the weekly results of promotions on volumes, revenues and margins. Its sales force can compare the results of BOGOF and other types of promotions on their own margins and also on retailer margins. The system shows them that many of the promotions are actually highly unprofitable for them, even though the supermarket gains from the deals. As a result they are actively re-negotiating deals to ensure a fairer win-win situation.

Price And Promotion Reporting

40 | October 2013

A supplier of bagged salads was concerned about the slowdown in revenue growth over the preceding three years. Its long-term investment in agricultural capacity depended on accurately extrapolating revenue trends.

They believed that the apparent slowdown might have been influenced by the recent cool summer, but needed solid evidence. External data on weather was obtained and, with the help of statistical analysis, they showed that weekly sales of bagged salads were significantly influenced by weather conditions.

They quantified the size of this weather effect, and this proved that most of the apparent slowdown was caused by the cool summer.

However, they did still find a slowdown in growth, but much less than they had originally assumed.

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Achieving Marketing Measurement Capabilities With Robert Shaw fgmn And Global Marketing Network

When they have completed this analysis, they don’t just look at it as a yes or no answer to the question ‘has marketing added value?’. They learn from their findings and use them to refine their ideas and calibrate their predictions.

Learning to select new ideas more reliably is the biggest benefit they get from demonstrating marketing’s value, and it is this that drives their strong financial performance.

Global Marketing Network is proud and delighted that Professor Greg Marshall is its Programme Director for Sales and Sales Management.

In today’s challenging business environment, Measuring Marketing Performance is “one way direction” for marketers.

This highly interactive Masterclass will offer them the latest techniques and tools, in order to use data to make strategic marketing decisions, optimize their brand and marketing strategy and maximize marketing ROI.

Conclusions Marketing can drive value that far exceeds its costs.

We have looked at the working practices of over 100 organisations, and found recurrent themes and practical suggestions. Working practices that can be widely adopted have been identified which can be used to demonstrate and drive marketing’s value. These have been described in the infinity model, along with checklists to aid with adoption.

The •• •• •• •• •• ••

Participants will learn: how to use data to make better decisions what data is available and what do you need most how make strategic marketing decisions with data how to maximise the lifetime value of customers how to optimise your brand strategy how to optimise the marketing mix: advertising, promotions, pricing, innovation •• how to use econometric models •• how to use optimisation models to maximise ROI

In the final analysis the Return on Ideas method is about accountability - the obligation to give an account for marketing performance in the light of agreed expectations.

Marketers have three accountabilities, all of which present challenges:

In partnership with The Educational Academy and Routledge Publishing GMN shall also be introducing a new structured continuing professional development programme for Sales Professionals, globally.

•• actions that were taken (by people accountable to the CMO or marketing director)

To request more information about these programmes and how you can book Dr Robert Shaw for training or conferences contact us: www.gmnhome.com/contact-us.html

•• money that was spent •• impact that was achieved in the light of agreed expectations

Robert Shaw

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GMN Programme Director for Marketing Analytics Professor Robert Shaw is recognised as one of the world’s primary Marketing Analytics gurus. A prolific author, twice winner of Marketing book-of-the-year awards, CEO magazine named him one of its “new generation business gurus”.

Robert launched his career with a PhD in nuclear physics at Cambridge University. After several commercial jobs, during which he obtained a MSc in Operational Research, he was headhunted to Andersen Consulting (today known as Accenture) to set up their Marketing Consultancy practice. In some high profile projects for BT, Barclays and British Airways, he built some of the world’s first customer databases, coined the phrases “database Marketing”, “contact strategies” and “customer lifetime value” and wrote the seminal book “Database Marketing” (1987).

In 1995 he was hired by Lou Gerstner and Sam Palmisano at IBM to write a strategy for their emerging services business.

He was subsequently retained for another year to refine and research the strategy and was instrumental in defining the vision for IBM’s new business direction. Cranfield School of Management made him an honorary professor in 1995.

Currently he is honorary professor of Marketing Metrics at Cass Business School, London and he still runs his own consulting firm.

Giving an account requires evidence. Data from the market can provide vital evidence of marketing’s impact. However, it’s a logical non-sequitur to assume all data provides evidence. Data may show what customers are thinking and doing, but often the link to marketing activity is missing. If data is not linked to marketing activity, it should be swept away.

Does a focus on measurement inevitably mean creativity suffers? Absolutely not; high impact requires brilliant creativity. However, brilliant creativity does not always result in high impact, so measuring impact is essential.

We have seen how the top performers have risen to these challenges and we can report that it is possible, and beneficial, for marketing to imagine, predict and demonstrate its financial contribution. Applying the infinity model, within the environment of the four success factors and the associated check lists, will maximise your return on ideas and get better results from finance and marketing working in unison. We believe that this is the way of the future for responsible marketing in the 21st century.

October 2013 | 41

Manage your marketing spends easily with OptPro As markets develop and customers change and competitors shift, you need to be agile to make your marketing spend as effective as possible. OptPro marketing spend software helps answer crucial questions so you can make informed decisions.

Case Study: Contribution

You can use OptPro to optimize budget allocation across products, brands, markets, regions and media channels, and to change the amount and allocation of the marketing budget over time.

OptPro helps you answer key questions • How much should we spend on which brands?

• In which markets should we focus that spend?

• What impact will optimizing marketing spends have on sales and profit contribution?

• If we constrain marketing spend, what will be the cost to the business?

This OptPro chart shows profit contribution from marketing spend.

At first it increases with the size of the budget, then reaches a maximum and finally declines.

Spending less than the optimum amount results in steeper decline in profit contribution.

• What is the optimum split between above-the-line and belowthe-line?

• How do we choose the media mix to maximize the overall reach at a specified frequency?

• What is the optimum laydown for our marketing activity over time?

Case Study: Spend

OptPro – the flexible planning tool OptPro works in a number of modes - you can use it with very basic data right through to complex data sets and response functions arising from econometric analysis; plus you can incorporate your expert knowledge about how markets and media work.

• Quick and easy to use • Scalable to handle large and complex problems • Instant answers from its highly efficient calculation engine (based on an advanced mathematical approach) OptPro can be licensed for you to use with full documentation and workshops. It can also be delivered as a one-off consultancy project to provide insights and recommendations.

Quantalise 42 | October 2013

The colours represent different products, regions, media or brands.

This shows how allocation of spend changes with overall budget level.

For low spend amounts, relatively few line items receive budget. As the overall level of spend increases, the allocation becomes more diverse.

Conversely, this illustrates that implementing a budget cut by reducing spends on all line items by the same percentage will not be optimal.

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Evaluate and plan promotions with PromoMax Case Study: Return On Investment

As consumers and retailers demand more generous promotional deals and offers, you need to respond fast and make decisions effectively. PromoMax software helps answer crucial questions so you can make informed decisions.

You can use PromoMax to look at promotional effectiveness by retailer, category, brand, product and promotional mechanic, and compare yourself with the competition.

PromoMax - answering key questions • What frequency, duration and depth of promotions work best for which product and which channel?

This PromoMax chart shows the incremental return on investment for various promotional mechanics.

The height of the bars shows which promotional mechanics are profitable and also shows which ones result in a loss.

Charts are available by retailer, category, brand and product.

• Do promotions drive long-term profitability for the brand as a whole?

• Are retailers passing on promotional discounts to the consumer?

• Which promotional mechanics work best for which product and channel?

• Are promotions profitable for both manufacturers and retailers?

• How much should I be spending on promotions for which brands and in which regions?

Case Study: Trade Pass Through

• If I plan to use a different promotional mechanic for a SKU or retail outlet, what is the best forecast of the outcome?

PromoMax – rapid evaluation and planning

The length of the bars shows the extent to which the retailer is passing promotional money from the supplier to the consumer.

Buy-one-get-one-free promotions are being passed almost 100% to the consumer.

Two-for-a-pound promotions are not being passed to the consumer and almost half the money is retained by the retailer.

At the press of a button, you can automatically process data from multiple sources and get results in simple, easy reports, spreadsheets and slide decks. Your planning will be accelerated, and by using the PromoMax ready-reckoner you can predict the results of your promotional plans based on a comprehensive search and match against the results of past promotions. The accuracy of your sales and operations planning will be greatly enhanced by using PromoMax. PromoMax can be licensed for you to use with full documentation and workshops. It can also be delivered as a one-off consultancy project to provide insights and recommendations.

This chart highlights the importance of bringing together information from the supplier and the retailer.

To find out more contact David Merrick at Quantalise Limited +44 1753 646036 | david@quantalise.com

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October 2013 | 43

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The community is free to join Networking with compatriots and forging business and personal relationships Invitations to the UK marketing industry’s leading events & conferences (often with fantastic discounts) Insightful discussions and thought-leadership from within the industry

UK Marketing Network

44 | October 2013

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GMN Fellow Profile

David Haigh

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GMN Programme Director for Brand Valuation

David is the CEO and founder of Brand Finance plc. David qualified as a Chartered Accountant with Price Waterhouse in London. He worked in international financial management then moved into the marketing services sector, firstly as the Financial Director of The Creative Business and then as Financial Director of WCRS & Partners. He left to set up a financial marketing consultancy, which was later acquired

by Publicis, the pan European marketing services group, where he worked as a director for five years.

He moved to Interbrand as Director of Brand Valuation in its London-based global brand valuation practice, leaving in 1996 to launch Brand Finance.

David has represented the British Standards institute on the International Standards Committee working party on the standardisation of brand valuation methods and practices, whose draft standard (ISO 10668) was published in November 2010.

He has worked in the area of branded business, brand and intangible asset valuation since 1991 and since January 1995 has specialised entirely in this area.

A passionate writer, David has written many articles for the marketing and financial press on branded businesses and brand valuation and is the author of numerous publications.

He also lectures on the subject of branded business, brand and intangible asset valuation at many of the leading business schools around the world.

Are you a Marketing Leader?

To see if you qualify for GMN Fellowship click here.

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Market Research In Practice: Data analysis Paul Hague, Nick Hague & Carol-Ann Morgan

Towards the end of a market research project, the fieldwork is completed and the data must be analysed. Faced with a pile of data, it is not unusual for a market researcher to be subject to ‘paralysis through analysis’.

Most market research surveys of 200 or more interviews are entered into computers and analysed on proprietary software that simplifies cross-analysis. This produces tables showing the numbers and percentages of people who answered each question for the whole sample, as well as the results for groups of special interest, for example male respondents versus female, different age groups, different income groups and so on. This cross-analysis of questions cannot easily be carried out on Excel spreadsheets.

A typical page from a set of cross-analysis tables is shown in Figure 14.1. The table presents results from one question out of many that were asked in a readership survey of a company magazine mailed to customers. The total column shows that of the 176 respondents, most people flick through the magazine and do not read any of the articles.

Looking across the ‘cross-breaks’ or ‘banners’ that analyse the results for certain groups of respondents, there are no obvious differences amongst the industry groups but it seems that small companies and younger respondents are more likely to read the magazine (or ignore it).

The number of people interviewed in this survey was 200, and the responses can be presented simply as the number giving each response: very likely = 50, fairly likely = 80 and so on. However, it is better to set out the results in a more formal manner, as in Table 14.1. This gives the responses as percentages rather than numbers but the total number of responses on which the percentages are based – the base or sample size – is also shown.

The inclusion of the base in a table is essential in presenting survey data as this indicates the accuracy or robustness of the result. Another point to note about Table 14.1 is that it has a clear title and says which respondents are included: in this case the whole sample – all respondents.

TABLE 14.1

Likelihood of buying a new car in the next two years (all respondents) Likelihood of buying Very likely

25

Fairly likely

40

Neither likely/unlikely

14

Fairly unlikely

18

Very unlikely

3

Total

100

Base

200

After a couple of minutes examining the data, it does not look so daunting, as patterns of response show through that enable us to make observations and arrive at findings.

The Analysis Of Closed Questions A closed question is one that requires respondents to choose an answer that is presented to them in the interview.

We will begin with a closed question that requires a single choice – only one response can be chosen out of the five options that are in the question.

Q5: How likely are you to buy a new car in the next two years? Would you say you are: READ SCALE. ONE RESPONSE ONLY. o

Very likely

o

Quite likely

o

Neither likely nor unlikely

o

Fairly unlikely

o

Very unlikely

%

Possibly, however, it may be useful to present data for just part of the sample, for example for those respondents who own their own car as opposed to those who drive a company car. In order to obtain this sub-group we filter out those who drive a company car by using the answers to one of the other questions in the survey (see Table 14.2).

TABLE 14.2

Likelihood of buying a new car in the next two years (owners of company cars) Likelihood of buying

%

Very likely

40

Fairly likely

0

Neither likely/unlikely

25

Fairly unlikely

30

Very unlikely

5

Total

100

Base

100

Global CMO™ The Magazine

October 2013 | 49

TABLE 14.3

Likelihood of buying a new car in the next two years (by company and private car owners) Likelihood of buying Very likely Fairly likely Neither likely/unlikely Fairly unlikely Very unlikely Total Base

Total % 25 40 15 18 2 100 200

In nearly all quantitative market research, we need to compare the results of different groups of people. Table 14.3 shows a simple cross-analysis that compares the likelihood of purchase between private and company car owners together with the breakdown for the whole sample; the data for all respondents (total), private car owners and company car owners are shown as separate columns.

Two points to note are that the figures in the column for company car owners are the same as in Table 14.2 and that a base – the number of relevant respondents – is shown for each column. The inclusion of a base for each column is very important in order to judge the reliability of making comparisons between subgroups of the sample – in this case the two subgroups of company car owners and private car owners each have bases of 100 and at this sample size the range of sampling error is high.

In Table 14.3 the cross-analysis was very simple. It can be far more complex – for example, the likelihood of buying could be cross-analysed by any number of demographic groupings such as age, sex and income group. This sort of analysis is almost standard in most consumer market research.

Company car owners % 40 0 25 30 5 100 100

Private car owners % 10 80 5 5 0 100 100

Other interesting cross-analyses could be achieved using any other question included in the questionnaire (for example, in the survey we looked at the number of miles driven, and this could have an influence on the likelihood of buying a new car).

The question we have used is a scalar question, and a common way of presenting the responses from this type of question is by mean scores (average scores) as shown in Table 14.4. Each score (shown for each column) is a weighted average of the numerical values assigned to the pre-coded responses (+2 for ‘very likely’, +1 for ‘fairly likely’ and so on) and the numbers of respondents giving each response.

The resulting mean score in the example indicates the average likelihood of purchase for the whole sample and for the sub-samples of both company car owners and private car owners; comparisons are easier to make with only one figure per column to look at rather than the whole distribution of responses to the scale. In the table, private owners appear more likely to buy than company car owners – a mean score of +0.95 compared to +0.40.

TABLE 14.4

Likelihood of buying a new car in the next two years by private and company car owners Likelihood of buying Very likely (+2) Fairly likely (+1) Neither likely/unlikely (0) Fairly unlikely (−1) Very unlikely (−2) Total Mean score Standard deviation Standard error Base 50 | October 2013

Total % 25 40 14 18 3 100 +0.66 1.14 0.08 200

Company car owners % 40 0 25 30 5 100 +0.40 1.39 0.14 100

Global CMO™ The Magazine

Private car owners % 10 80 5 5 0 100 +0.95 0.59 0.06 100

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A mean scores is just a form of average – a way of describing a distribution with a single measure of location. However, when interpreting data it also important to consider its dispersion around the average.

The standard deviation is the most commonly used such measure, and is an intermediate step to calculating dispersion in the population from which the sample was drawn – that is, standard error, which can in turn be used to estimate sampling error or compare two measures (for instance, from different sub-samples) for statistical significance.

The specialized data analysis computer software calculates the mean scores and other statistics such as the standard deviation and the standard error automatically. Table 14.4 includes both standard deviation and standard error.

Simply tweet a #MarketerMonday message, recommending these Twitter feeds to your followers: @TheGlobalCMO @GMNhome @KoganPage Entries close 15th November 2013 One entry per Tweet so take part every Monday!

Paul Hague, Nick Hague & Carol-Ann Morgan B2B International

Interpreting scalar data just from mean scores does, though, have some dangers and the (contrived) example in Table 14.4 illustrates this. Comparison of the mean scores of company car owners and private car owners suggests that it is private car owners who are most likely to buy a new car. However, if we look at the distribution of responses we see that among company car owners, 40 per cent are very likely to buy compared with only 10 per cent of private car owners, and the higher mean score amongst private car owners is because, compared with company car owners, far fewer gave a fairly/very unlikely response.

Which of these two ways of interpreting the data will give a better indication of future purchase intentions?

Whatever the answer, it is clear that interpretation based on mean scores alone has limitations, and at the most should be regarded as no more than a useful way of summarizing data.

Paul Hague is MD of B2B International.

With 35 years of experience running market research agencies, his clients include some of the largest corporations in Europe and the United States. He has written, co-authored and contributed to numerous publications on market research, its tools and techniques.

Nick Hague is a founder member of B2B International with extensive experience in the design and execution of market research projects across a wide variety of industries. He writes regularly on marketing issues and was named as one of the UK’s eminent young business leaders by Who’s Who International.

Carol-Ann Morgan is a Director at B2B International and is in charge of research techniques. Before this she worked as a lecturer and social researcher at Salford University.

Reproduced by kind permission of Kogan Page, from the Paul N Hague, Nicholas Hague & Carol-Ann Morgan title ‘Market Research In Practice’.

Market Research in Practice

How to Get Greater Insight From Your Market

Paul N Hague, Nicholas Hague, Carol-Ann Morgan Lively and accessible, Market Research in Practice is a practical introduction to market research tools, approaches and issues. Providing a clear, stepby-step guide to the whole process - from planning and executing a project through to analysis and presenting the findings - the book explains how to use tools and methods effectively and obtain the most reliable results. With new chapters on using market research, international aspects and new research trends (including coverage of social media research and mobile surveys) this fully updated second edition also includes the latest information on carrying out market research design, desk research, sampling and statistics, questionnaire design, data analysis and reporting. Accompanied by a range of online tools and templates and supported throughout by examples from real market research projects, this is an invaluable guide for students, researchers, marketers and users of market research. www.koganpage.com/editions/market-research-in-practice/9780749468644

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5 Ways To Turn Big Data Into Insight And Action Laura Patterson

As it has been shown in a variety of ways over the past decade or so, the days of math-less, mindless, off-thehip marketing have long set sail. So how do the once gun-slinging marketers of the past begin to tackle the voluminous unstructured data that is collected from nontraditional sources to harness the power of analytics?

Big Data, derived from blogs, social media, email, sensors, photographs, video footage, etc. is and has always been the answer. Although Big Data isn’t new, most marketers are still wrapping their heads around the transformation of raw data into action.

Data vs. Insight In today’s data-rich and data-driven environment, we are predisposed to gain our insights from data. But action doesn’t always follow collection. A survey of 600 executives by the Economist Intelligence Unit found that 85% of the participants thought the biggest hurdle to unlocking value from data was not grappling with the sheer volume, but analyzing and acting on it. And gleaning the insights from the data is what makes the data valuable.

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October 2013 | 53

3. Articulate the insight that emerged from each pattern

Merriam-Webster defines insight as the power or act of seeing. Keyword: Seeing. We must use the data to identify and see—to see patterns, trends, and anomalies.

And once we gain this insight, its value is proven by the actions we take as result. Data that doesn’t help you see isn’t useful. So, in this instance, more does not always translate into better insights. In fact, according to the recently released 5th annual Digital IQ Survey, consulting firm Pricewaterhouse Coopers (PwC) found that 58% of respondents agree that moving from data to insight is a major challenge.

In one simple statement, articulate the insight that emerged out of each pattern or point of synthesis. We find it is helpful to capture insight on a Post-it Note and place it on a wall or flip chart to easily track each insight and see the “big picture” that may be emerging as we go.

4. Incubate the insights Give yourself and your team at least a day away from the “board.” When you and the team return you can take a fresh look and decide whether to make any changes.

In 1990, Stephen Tuthill at 3M helped make the connection between data and wisdom. His The Data Hierarchy outlines four important concepts: data, information, knowledge, and wisdom, with data being the raw items or events. Once we have the data, we can sort and organize it into information.

Knowledge is then derived from the patterns that result from understanding the relationships between the data and other factors. Wisdom comes when we understand what to pay attention to—what has meaning for us.

5. Get reactions from others Do the insights resonate? Once you are comfortable with the conclusions/insights you’ve captured, involve other people who were part of the initial steps to gain their reactions. Be sure to give them the context. The point of this step is to decide if the insights resonate and are compelling enough to make or affect key decisions. That is, to determine whether you have acquired the wisdom you need to act.

So, rather than focusing on more data, we need to focus on capturing the right data and then analyzing it in a way that gives us the power to see (knowledge) and act (wisdom).

Bernard Marr from UK-based Advanced Performance Institute reminds us that to get the most out our data “you need to know what you want to know.” Once you know what you want to know, collect and organize the data.

The success of this approach is contingent on the quality (not necessarily the quantity) of the data set, then following a process proven to identify core insights to support strategic decisions. Just like traversing your daily route to and from work, gaining insights from data becomes innate.

Although intuition of the traditional sense is still a valuable tool to modern marketers, data has become the insurance policy in understanding our customers. Our ability to “read in numbers” has become paramount.

Now what?

Getting From Data to Insight 1. Bring data to life with visualization

Laura Patterson

Having the data is one thing, analyzing and synthesizing it is another. Synthesis is where we begin to see the patterns. Once the synthesis is completed, you will need a way to bring the data to life. Data visualization greatly aids in this part of the process. Data visualization presents analytical results visually so we can more easily see what’s relevant among all the variables, capture and communicate important patterns, and even support predictive models.

Visualization is an important step for exposing trends and patterns that you might not have otherwise noticed.

President and Founder, Vision Edge Marketing Inc Laura Patterson’s marketing and sales career spans nearly 30 years having worked for both large public companies such as State Farm and Motorola and as well as startups.

In 1999 she co-founded VisionEdge Marketing, a data-driven metrics based strategic and product marketing company that enables organizations to leverage data and analytics to foster fact-based decisions regarding customers, products and markets; enhance sales and marketing alignment; address marketing accountability and operations; and measure and improve marketing performance and effectiveness.

Laura is author of dozens of published marketing and branding articles and the books Gone Fishin’ and Measure What Matters. Laura has served on several non-profit boards and has served as a guest lecturer at various universities.

2. Discuss patterns and the potential implications Not all patterns are germane. Take the time to review and discuss each pattern and its potential implications. Talk about why you think each pattern is important and what it means. This is an essential step for going from information to knowledge.

54 | October 2013

Answer marketing effectiveness questions fast using StatsPro You need to know “how effective is our marketing at driving results”; yet getting straight answers to these tough questions across all your marketing activities can be slow and frustrating.

StatsPro software helps you get a 360 degree view of the results of your marketing in a streamlined and efficient way.

Case Study: Results Decomposition

You can use StatsPro to unscramble and isolate the effects of all the important factors such as TV advertising, Internet search and display, sales promotions, price changes, competitor activity.

StatsPro - straight answers to tough questions Quantalise created StatsPro software specifically to make econometrics available for marketers. Econometrics is a widelyused and highly-regarded analysis technique. It shows: • Which factors caused results to go up or down, and which had no discernible effect?

The colours represent the contribution to results of marketing factors such as advertising, price changes and events. It also shows how external factors such as weather and seasonality affect results.

• How important was each factor and how big was its effect?

• What equation you can use to forecast sales?

• How reliable the equation is as a forecasting method?

StatsPro – the analysis productivity tool

Case Study: Cascade Chart

StatsPro delivers fast and well-formed models by using a number of special productivity features: • You get automated production of reports and charts on predicted versus actual values, residuals, decomposition and waterfalls for all model types, including log and difference models • You can generate new variables “on-the-fly” without having to calculate separate data series • You can quickly and easily add or omit variables, or fix coefficients or if you prefer automatically include or exclude variables based on the coefficient or t-stat values • You can experiment with lagged variables, differences, logs, etc. without re-defining the model

The above chart, also generated automatically by the system, shows the same information as that in the sales decomposition chart but highlights the year-on-year changes.

• You can use diminishing returns curves and carryover effects in your models StatsPro can be licensed for you to use with full documentation and workshops. It can also be delivered as a one-off consultancy project to provide insights and recommendations.

To find out more contact David Merrick at Quantalise Limited +44 1753 646036 | david@quantalise.com

Quantalise

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October 2013 | 55

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Catch #MarketingBiz Fridays at 10.30am.

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Big information vs. Big Data Nick Terry CEO, TMARC

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Crazy Beautiful Daniel Baron Singer/Songwriter

Why Premium Display Advertising Is Worth The Cost Marcus Stephens GM, Howzit MSN 56 | October 2013

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Creative agency awards – Are they relevant and do we need them?

The conversation capitalists: Tony Koenderman | Craig Page-Lee | Yvonne Johnston | Jerry Mpufane

Listen Now

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Marketing Audits?

Ulrich Meyer-Höllings Founder and Managing Partner, i:am ventures

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Virtual Money Is A Reality Dion Chang Founder, Fluxx Trends

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Consumer Engagement Trends Dr Amelia Richards Ask Afrika

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Upcoming Events

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Global CMO™ The Magazine

Executive Advantage: Authenticity And Storytelling Jacqui Grey

“One uses stories not because they are true or even because they are false but for the same reason that people tell and listen to them, in order to learn about the terms on which others make sense of their lives.”

Brodkey 1987 Inspirational leaders draw rich pictures. They are able to describe future visions in compelling ways and draw on their experiences of the past to tell powerful stories and connect with their people.

Stories can help business leaders connect their people to strategy, vision, values and change. They rouse our minds to add action to feeling. We remember stories about:

•• the first man on the moon; •• the wives of Henry VIII; •• Nelson Mandela and Mother Teresa; •• famous battles; •• sporting legends; •• Live Aid and Comic Relief; •• 9/11; •• Barack Obama – ‘All things are possible.’

Global CMO™ The Magazine

October 2013 | 59

Companies have their own stories that people remember.

Authenticity through storytelling is essentially a search for new meanings. It is concerned with personal journey and learning from experience and translating that into useful information for others. It has been used for generations to communicate messages around the world. It is the stuff of legends and heroes. Storytelling in organizations is a powerful way for leaders to authentically convey their experience in a given situation and to communicate messages disseminated from above to their people below.

By reviewing their leadership experiences and using different storytelling approaches, it can drive customer centricity, authenticity and innovation.

Great leaders have stories to tell which can change and build businesses to make great things happen.

Through reflection and incisive questioning, and The Executive Advantage 10-Step Solution©, leaders can learn to explore their own inner worlds and discover new meanings.

The value of authenticity and personal disclosure using storytelling by a leader works astonishingly well in the creation of engagement amongst a workforce.

The choice and use of strategies will depend on the subject under discussion, the occasion and the speaker’s identity or deemed role at a particular occasion.

Aristotle, 350 BC, cited in Nichomachean Ethics (1998) Personal narrative in all its forms has been talked about since Aristotle (4th century BC), who went on to teach Alexander the Great, whose compelling story was told in many movies and biographies, including the well known leadership book Are Leaders Born or Are They Made? by Kets de Vries and Danny (2004).

By allowing leaders and their people to make sense of their shared experience it is possible to facilitate innovation and an improvement in customer centricity.

Encouraging leaders to use storytelling requires them to suspend normal ways of thinking about leadership. It is challenging to some as it is unfamiliar and yet, once they understand, they will often become advocates.

“The stories that were successful for me all had certain characteristics.

They were stories that were told from the perspective of a 60 | October 2013

single protagonist who was in a predicament that was prototypical of the organization’s business.”

Stephen Denning, The Society for Storytelling Business transformations succeed or fail on the strength of decisions and choices made by organizations’ leaders. It is leaders’ choices that determine who they are and who they will become. If they communicate their personal experience authentically and ‘walk the talk’, they will engage their people. A story enables a leap in understanding by the audience so as to grasp how an organization or community or complex system may change for the better.

Have you observed leaders who talk about values but don’t ‘walk the talk’?

Case Study In the client organization where the MD of one part of the business had lost credibility, with her board and with the group board and non-executive directors, she was perceived as not walking the talk. She was perceived to be unprepared, chaotic and a poor listener. If someone disagreed she would talk more loudly. She was also a really nice person – people liked her but didn’t respect her. She had several strategic gremlins – ‘Not good enough’, which led her to avoid things she didn’t feel she was good at, and ‘Unlovable’, which led to her revisiting the point over and over in order to convince people of her point of view and to spending far too much time talking late into the night in the bar! She felt so under threat that she would micro manage and hound her perfectly capable leaders instead of setting clear strategies and goals and measuring their success against them. These behaviours did not add to her credibility. Despite poor sales results she continued to operate as she always had and was unable to ‘up her game’. She was ultimately removed from the business.

From her point of view, this came out of the blue, she had no idea why, whereas the board felt they had given feedback on numerous occasions but it had not been listened to.

I have come across this so many times in business. I have sat in numerous presentations where leaders spout forth about their values, then leave the room to go back to bullying their people, or behaving in some other inappropriate way.

“In times of trouble, values go out of the window.”

Global CMO™ The Magazine

Director, IT company

“Our company’s values were held up and often repeated in leadership programmes but it was not really a meritocracy and integrity was challenged during the credit crunch.”

Global director, financial services organization Respondents to interview questions for this book said they had experienced this and most gave specific examples.

Several described CEOs who took all the credit but left others to do all the work. This is particularly important when considering the whole area of inclusivity as a key capability for 21st-century leadership – will emotionally immature leaders continue to pay lip service to the inclusion of more women and other minority groups on boards or will they actually change their existing mindsets?

WIN THIS BOOK Simply tweet a #FollowFriday message, recommending these Twitter feeds to your followers: @TheGlobalCMO @GMNhome @KoganPage Entries close 15th November 2013 One entry per Tweet so take part every Friday!

Jacqui Grey Managing Director, Transition

“He was a Champagne Charlie with a budget of billions who spent all his time going to awards ceremonies and lunches. He was a flake but there was a process behind him and the team did all the work so it wasn’t visible.”

Public sector director

“We have a CEO who tries and says he is a ‘people person’ but is the least ‘people person’ I have ever met!”

Jacqui Grey is MD of Transition, a transformational change management, leadership and executive coaching and coach training business.

She has worked globally for blue-chip companies on innovative development programmes and has a special interest in the development of top female executives. She has previously worked for leading investment banks and a range of FTSE 100 companies.

Jacqui has a background in law and Board level experience in HR. She is an active speaker on leadership, authenticity and women in business.

Jacqui has a doctorate in Executive Anxiety and writes regularly for the CEO ‘Critical Eye’.

Anonymous Reproduced by kind permission of Kogan Page, from the Jacqui Grey title ‘Executive Advantage’.

Executive Advantage Resilient Leadership for 21st-Century Organizations Jacqui Grey The pressures on executives to succeed, both internal and external, are intense. They are constantly fighting to make sense of their changing worlds and to make the right decisions for themselves, their teams and their business. Executive Advantage gives ambitious leaders the powerful strategies they need to become authentic 21st century leaders. It makes sense of the complexities faced by organizations, especially in the face of aggressive growth or, conversely, recession and downsizing. Any change presents challenges and it’s the leader’s role to tackle these head on. Understanding human needs, and the consequences of not meeting these needs, is key to effective handling of change, conflict and executive ‘gremlins’, the barriers and sticking points that can get in the way of optimal business performance. Leadership expert Jacqui Grey presents a 10 step solution for leaders who are looking to make a real difference in their business. www.koganpage.com/editions/executive-advantage/9780749468286

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ive

will have more leaks than US Intelligence. How do you evaluate intimacy? Brand health studies give a blizzard of 4.6 & 6.4 answers & while we dance on the head of a pin, consumers are left on hold.

Do we measure what is meaningful, or do we invest with most meaning, things easiest to measure?

Walter Spoonbill of Spoonbill & Coot jousts windmills & bean-counters.

Dear Walter, Marketing’s no fun any more. It used to be G&T with creative & clients at the bar, now it’s ROI with myself on the tablet. What’s to be done?

Old School Dear OS – ROI is infinitely ponderable.

Think of it as Return On Innovation. Or Return on Insecurity, Instability, Iconography, Impetuosity, Idiocy …

“Immediacy” says Coot. Technology is altering behaviour, expectations are growing. I want exactly what I want & I want it here, now has become the customer’s bill of rights. Also in the bill of rights is the desire for human touch.

“Return on Intimacy” Coot adds.

If there is no or low customer intimacy, your business pipeline

I return to Return on Instability.

We are like particles in the Large Haldron Collider whizzing around at ridiculous speeds, smacking into each-other with ever-increasing energy. Suddenly, the unknown becomes known, the unobserved pops into view & the agile take advantage of new possibilities whilst herds discontentedly graze on ever-decreasing grasslands.

“You have gone from under the Swiss Alps to the African savanna in one metaphorical leap” Coot responds, though with approbation or disdain it is hard to say.

“Return on Instinct” I muse, after pouring a generous tot of one of the finer malts. We are in danger of spreadsheets becoming our rulers.

We need a balance.

Logic keeps us on narrow paths – the numbers look right so let’s do the deal. Instinct is harder to locate – it can be a faint unease gnawing away in the pit of your stomach. Ignore the gnaw, at your peril. Yes the numbers look right, but are the cultures & intentions aligned? Is the will & ability to fulfil present?

Instinct kept us away from danger long before numbers made sense. like any other innate strength, it needs to be nourished & exercised.

Return on Insight is our next contribution. Too much market research consists of data & observations that are sometimes interesting, rarely useful. True insight sees the inner nature of things, answering why as well as

what. It is hopeful to expect that each investigation will yield the big aha. Rather, Coot suggests, aim for Return on Incremental Insight, otherwise known as ROI2, building wealth through your ever-increasing store of knowledge & wisdom.

Return on Incrementalism goes further than research. Toyota has built a vehicle empire based on keizen – small, ongoing improvements involving everyone.

Implanting a culture that values each person’s contribution, is a challenge for all organisations.

“Return on Involvement” says Coot.

“Return on Inspiration”, I reply.

Taking time off in the busyness of everyday to appreciate art, sit in a park, or just stare out of a window, is a firing squad offence for many. Yet they are blasts of pure oxygen. “Idleness is the mother of Invention”, I tell Coot, finishing my tot.

The greatest ROI of them all is, we agree, Return on Imagination.

That leap into the unknown, from which you find your way back to present reality, step by logical step. Increase that & Return on Investment will take care of itself.

This is worthy of another generous tot. As I take an appreciative sip, I smile. “Return on Inebriation” observes Coot, a trifle sourly.

Cheers,

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.

Global CMO™ The Magazine

October 2013 | 63

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