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The Distributed Marketing Frontier: Realizing the Dream of Truly "Glocal" Marketing

Today's highly mobile and engaged economy rewards businesses that deliver relevant, timely, and personalized customer interactions. An engaging customer experience wins business, but managing this experience between corporate marketing and local entities is challenging. Alignment between the corporate and local marketing functions is often hobbled by lack of communication, uncontrolled use of the brand, and redundant systems and processes. How can an organization overcome these obstacles to achieve top-line growth and maximize bottom-line efficiencies?

This comprehensive white paper from Neolane explores the intricacies of delivering a consistent brand while recognizing the need to customize the brand to local target audiences. Learn how marketers can leverage a unified technology solution to steer corporate and local entities towards a common business goal; to improve the customer experience and increase sales.

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The Distributed Marketing Frontier: Realizing the Dream of Truly "Glocal" Marketing

  1. 1. The Distributed Marketing Frontier: Realizing the Dream of Truly “Glocal” Marketing JUNE 2010
  2. 2. Today’s highly mobile and engaged economy rewards businesses that deliver relevant, timely, personalized customer interactions. Ultimately, an engaging customer experience wins business, and managing this experience across localized entities can be a difficult task. For large distributed marketing functions that support localized marketing efforts, managing brand consistency, communication, and customer engagement is an ongoing challenge. Distributed marketing functions are common among insurance, pharmaceuticals, automotive, financial services and “For large franchise industries. However, distributed marketing applies to any organization that requires a centralized marketing entity and distributed localized marketers to work together in the pursuit of top-line growth and bottom-line efficiencies. marketing functions that support localized Corporate En ty marketing efforts, managing brand consistency, communication, Internal Local En es External Local En es and customer (Field Offices, Divisions, (Branches, Agents, Business Units, etc.) Franchises, Agencies, etc.) engagement is an ongoing Most organizations have embraced a hierarchical model where a central entity (corporate marketing) oversees the preservation of the brand image, brand challenge.” communication policies and strategic decisions about the brand. This central entity often supports both internal and external localized marketing efforts to engage target audiences with relevant marketing messages. Localized entities can be classified into two categories: • Internal Local Entities: Field Marketing, Field Sales, Brands, Regions, Point-of-Sale Stores • External Local Entities: Franchise Holders, Marketing Agencies, Channel Partners Both internal and external entities have the same requirements; access to brand assets, guidelines for leveraging the brand, and tools to engage localized audiences with relevant, timely, personalized messages. But, managing communication and brand compliance in this environment can be extremely challenging. For one thing, there are conflicting goals between corporate or headquarters marketing and local entities, such as agents, branches, or field offices. Corporate marketing is tasked with developing a consistent brand across marketing channels, regions and local audiences. Local marketers are tasked with engaging local audiences with relevant messages and reaching sales targets. Local marketers need autonomy and flexibility to 2 JUNE 2010
  3. 3. customize the brand and marketing message. As a result, local marketers often view corporate or headquarters marketing as a compliance mechanism that “doesn’t understand local needs” and “adds little value to meeting revenue targets.” Figure 1 shows how these conflicting objectives lead to alignment challenges between corporate and local entities. The growing complexity of these challenges drain productivity for distributed marketing functions and prevent “Technology the organization from delivering a consistent brand experience across marketing channels; but, as Albert Einstein once said, “In the middle of every should be difficulty lies opportunity.” helping local Figure 1: Framing the Challenge and the Opportunity Corporate Marke ng and corporate •Control brand consistency Challenges Opportunity •Preserve brand and customer experience Longer campaign cycle mes Improve produc vity & me to market marketers create •Accountable for organiza onal performance Inconsistent communica ons Reduce redundant costs and improve the •Control agency costs between corporate marke ng efficiency and effec veness of a direct dialogue •Aggregate media spend and local marke ng efforts marke ng campaigns •Manage cross-channel campaigns Inability to control the use of Deliver a consistent customer with customers brand assets experience Inability to measure the Alignment Corporate and local marke ng can via the local combined efforts from corporate marke ng and local monitor and measure all marke ng Conflic ng Objec ves efforts and op mize future campaigns marketers operational Redundant technology Reduce licensing costs for mul ple Local Marke ng pla orms fail to address the solu ons, eliminate mul ple interfaces, •Customize marke ng combined needs of corporate centralize assets, centralize the entities.” messages for local audience and local marketers distribu on of assets in cross-channel •Flexibility and autonomy in campaigns program development •Engage target audience Lack of insight into combined Improve top – line growth and bo om across relevant channels efforts of corporate and local line efficiency by working together to •Rapidly react to changes in marke ng leads to marke ng maximize the impact of campaigns and local market dynamics fa gue marke ng assets in the field. It’s inherently difficult for corporate marketing to meet the unique needs of local marketers. Nobody knows the local market like local entities. As a result, many local marketers pursue their own agencies, technologies, media spend, and services; resulting in longer campaign cycle-times, lack of communication between corporate and local entities, an inability to measure campaign return and uncontrolled use of the brand. This is ultimately the distributed marketing organizations challenge: How can we deliver a consistent brand across internal and external localized entities while simultaneously allowing localized marketing to customize the brand for the unique needs of local target audiences? A New Frontier in Distributed Marketing Many organizations have already made significant investments towards addressing the aforementioned challenges. In the 90’s content management solutions promised a light at the end of the tunnel. The idea was to centralize all digital assets and democratize access for relevant parties. Unfortunately, these solutions actually compounded the problem because they offered little more than an asset repository; after assets are created and stored both 3 JUNE 2010
  4. 4. corporate and local entities still needed to use these assets to engage target audiences in cross-channel marketing campaigns. If corporate marketing could not provide a campaign management tool with the flexibility and timeliness required for localized marketing programs, local entities invest in a separate infrastructure (campaign management tools, email marketing, agencies, print operations, etc.) to support local needs. This leads to redundant tools, redundant marketing costs, and lack of communication about corporate and local campaigns. “By eliminating There are ultimately two fundamental components to managing the brand for inefficient a distributed marketing organization; marketing asset management and customer engagement. Much like yin and yang, both of these components are processes critical to achieving “harmony” between central and local entities. between corporate Figure 2: Empowering Corporate AND Local Marketers and local entities Marke ng Asset Management and reducing redundancy in Customer Engagement technologies, organizations can Marketing Asset Management Customer Engagement/ Campaign Management focus on campaign Most people think of Digital Asset Management or Marketing Asset Digital assets are only valuable if optimization Management when they think they can be easily located and used about addressing the challenges of in cross-channel marketing instead of a distributed marketing function. campaigns. With so many new and These solutions offer a centralized emerging channels the complexity organizational repository to store and distribute of managing the brand is further the brand assets and creative compounded across marketing inefficiencies.” assets for the organization. channels. Distributed marketing • Promote the re-use of licensed organizations require a unified, content collaborative and configurable • Centralize brand assets (logo, process to manage marketing etc.) for ease of accessibility campaign execution. • Centralize brand guidelines and • Cross-channel engagement compliance assets across email, Web, mobile, call center, direct mail, social media, • Centralize brand templates (for tv, print, etc. customizable collateral) • Measure and monitor • Provide searchable asset performance repositories What if these capabilities were combined into one tool? What if local marketers could access brand compliant assets and create localized cross-channel campaigns from the same tool that corporate or headquarters marketing uses to deliver cross-channel campaigns? The next generation of distributed marketing solution is empowering organizations with the solutions to these problems. 4 JUNE 2010
  5. 5. Aligning Corporate and Local Entities with Technology Ben Franklin once said, “The definition of insanity is doing the same thing over and over again and expecting a different outcome.” Yet, distributed organizations continue to make investments in siloed marketing asset management and campaign management solutions to address the conflicting needs of corporate and local marketers. The long-term ramification of these decisions is an inability to align corporate and local entities both strategically and operationally. Local entities find ways to circumvent corporate compliance “There is a fine and corporate marketing has limited visibility into local marketing activities. Disparate technologies drain marketing productivity and prevent organizations line between from optimizing the customer experience. managing brand Ideally, distributed organizations need to find ways to involve local operational entities in the contact engagement strategy; after all, nobody knows the consistency and customer better than local entities. Next generation distributed marketing technologies are largely becoming the glue that binds corporate and local localized needs. Distributed marketers need one unified technology for creating, capturing, storing, distributing and optimizing brand assets. Technology autonomy. The should be helping local and corporate marketers create a direct dialogue with customers via the local operational entities (See Figure 3). 'win-win approach' Figure 3: Next Generation Distributed Marketing Technologies is a unified solution that Corporate Marketing surement Corporate Marketing QuickTime™ and a decompressor M ea are needed to see this picture. • Centralize assets • Centralize campaign • Re-use licensed management empowers assets • Centralized cross- t r ali z at i o n Distribute • Brand Compliance Cen channel Assets corporate and • Measure asset measurement • Control over brand utilization Corporate Mktg. Email local marketers Create Marketing Distributed Marketing Cross-Channel Web Assets Asset Solution Engagement with digital asset Local Marketers Local Marketers Local Marketers Direct • Access to • Personalize Etc. centralized assets engagement management and Pe r • Alignment with s onaliz at io n • Maintain brand targeted offers compliance campaign • Brand Compliance • Cross-channel Br measurement an d cy management Co ns i s t e n capabilities.” A centralized shared technology provides a consistent business process for creating, approving and engaging with customers. • Corporate marketing can establish a brand image and marketing campaign templates while local marketers have flexibility and autonomy to customize messaging for local markets. • Branded templates can be created and managed by corporate to preserve the brand image across local markets. • Time-to-market is rapidly reduced with an automated, centralized, integrated approval process for local campaigns. 5 JUNE 2010
  6. 6. • Local marketers can reduce costs associated with redundant technologies and centralize customer data for use in lead management, analytical modeling, and trigger marketing campaigns. • Central and local entities can monitor the success of localized campaigns. Best practices can easily be identified and built into future marketing templates since key performance indicators are tracked and aggregated in a single solution. “Central and • Corporate marketing gains added visibility and customer knowledge about local entities can local markets for more impactful corporate branding campaigns. The key to empowering local marketers is to deliver a flexible solution with monitor the built in workflow and approval. For many organizations the corporate approval process on outbound campaigns can be a tedious process. Local marketers success of spend inordinate amounts of time waiting for approvals from corporate, while the window of opportunity in local markets rapidly closes. If local marketers localized can create, approve, and execute campaigns more rapidly they are more likely to leverage a unified technology (particularly if the technology provides campaigns. personalization and customizable campaigns that are unique to the local entity). A unified solution also provides executive level approvers with a centralized tool to Best practices can monitor campaign performance across the entire organization. Approvers can actually provide feedback for optimizing campaigns based on what is working easily be identified across the organization – while simultaneously checking for brand compliance. and built into Campaign Management for Corporate and Local Marketers future marketing Corporate and local marketers need a central repository for digital creative assets as well as a catalogue of marketing campaign templates. The ideal templates since distributed marketing solution should provide marketers with access to two types of campaigns: Local Campaigns and Shared Campaigns (See Figure 4). key performance Figure 4: Campaign Management for Corporate and Local Marketers indicators are Centralized brand assets u lized to tracked and customize template aggregated in a • Approve single solution.” Local • Allocate Budget Campaign En es Select Suitable Campaign Corporate • Execute Creates Campaign • Measure & Refine Template(s) Shared Campaign • Local Campaign: Corporate marketing should be able to create branded templates which can be customized by the region and used as independent targeted marketing campaigns in internal or external local entities. For example, if an automotive dealership is launching a special promotional offer that is exclusive to one or two dealerships, a local campaign could be used to target local customers and corporate brand compliance. Campaigns can be executed by local entities or corporate marketing and campaign results are accessible to both parties. 6 JUNE 2010
  7. 7. • Shared Campaign: Corporate marketing should also be able to create branded campaign templates for use in both corporate marketing campaigns and local marketing campaigns. Templates should be accessible from a centralized repository and distributed by local entities or initiated by corporate marketing with the help and approval of local entities. A shared campaign aligns corporate and local resources for marketing distributions that require a consistent customer experience. For example, a new product launch at a financial services company may require corporate and local marketers to “Time-to-market work together for the official launch. If corporate has branded billboards, advertisements, and landing pages, ideally local marketing efforts should is rapidly provide a consistent message as well. A shared template provides a consistent customer experience across channels while simultaneously reduced with allowing for personalized or targeted positioning in local entities. an automated, Essential Ingredients for Empowering a Distributed Marketing Organization centralized, By eliminating inefficient processes between corporate and local entities and integrated reducing redundancy in technologies, organizations can focus on campaign optimization instead of organizational inefficiencies. Eventually, the distributed approval process marketing enterprise outgrows the manual processes that contributed to the early growth in the business. If local entities turn to localized solutions and for local services to target local markets the problem is compounded and workflow and approvals can be extremely cumbersome. campaigns.” Take for example a franchise business that allowed local entities to pursue their own campaign management solutions in the first 5 years of operations. After years of cumbersome, inefficient, manual approvals the organization realized the cycle time on campaign approvals between local entities and corporate marketing was over 16 weeks. More importantly, corporate marketing had very little insight into the local marketing campaign performance. Without a centralized solution, the organization was saturating the market with redundant marketing campaigns leading to brand fatigue. There are four fundamental ingredients to managing a distributed marketing organization. • Marketing Asset Management: Centralizing brand assets for use by corporate and local entities. • Measurement: A holistic view of asset utilization and campaign performance across corporate and local entities. • Campaign Management: Providing flexible campaign management capabilities for local entities while simultaneously allowing corporate to manage brand consistency. • Process: Standardize and automated workflow and approval processes reduce cycle time and help ensure corporate and local objectives are met through each cross-channel engagement. Today, many organizations still struggle to align corporate and local entities despite investments in technology that were supposed to alleviate some of these challenges. Unfortunately, disparate solutions compound the challenges because lack of integration increases the complexity of approvals and fails to deliver performance insights. 7 JUNE 2010
  8. 8. The following scorecard approach to distributed marketing optimization can help your organization identify key initiatives for improving the performance of distributed marketing functions. Figure 5: Distributed Marketing Scorecard Marketing Asset Management Yes No Do local marketers “By eliminating have access to Lack of centralization leads to inefficient pro- brand assets from a cesses, uncontrollable inefficient centralized location? brand usage, inability to reuse assets & difficulty measuring asset processes utilization between Process Measurement Yes Yes corporate and No Are workflow and Can corporate No Lengthy cycle-times approval processes Distributed marketing measure Lack of visibility into local entities and complex approval processes between standardized and Marketing asset utilization AND performance can lead to redundant spending, corporate and local centralized to one Optimization campaign results marketing fatigue and and reducing entities drain competitive differentiators and speed tool? from local entities? lack of accountability for marketing spend to market redundancy in technologies, Customer Engagement No organizations can Do local entities Yes invest in separate Disparate solutions infrastructure convolute performance, focus on campaign to execute cross- lengthen cycle times on marketing and add channel redundant license fees optimization campaigns? instead of Unified technology helps provide the glue that bonds corporate and local organizational entities to a common business goal; to improve the customer experience and increase sales. Disparate technologies are outlets for corporate and local inefficiencies." marketers to continue operating independent of one another. There is a fine line between managing brand consistency and localized autonomy. The ‘win- win approach’ is a unified solution that empowers corporate and local marketers with digital asset management and campaign management capabilities. A centralized solution is the only way the collective organization can measure performance and gain insights that can be used to optimize marketing efficiency and effectiveness over time. 8 JUNE 2010
  9. 9. To learn more about how distributed marketing capabilities can help your marketing organization, contact Neolane at 617 467-6760 or visit About Neolane Neolane provides the only enterprise marketing automation software specifically designed to manage, automate and optimize programs across traditional and emerging channels including direct mail, email and mobile. With Neolane’s cross-channel direct marketing and lead management solutions, marketers can manage campaigns, resources, customer data and analytics from a single platform to dramatically improve effectiveness and ROI. Built by marketers for marketers, Neolane is used by more than 200 of the world’s leading companies including Alcatel-Lucent and Sephora. Visit Neolane, Inc. One Gateway Center - 7th Floor 300-334 Washington Street Newton, MA 02458 Office: +1 617 467 6760 Fax: +1 617 467 6701 United States United Kingdom France Scandinavia Copyright 2010 Neolane, Inc. All Rights Reserved This research brief is for informational purposes only. Neolane, Inc. makes no warranties, expressed or implied, in this document. Neolane is a trademark of Neolane Inc. in the United States and other countries. All other trademarks contained herein are the property of their respective owners. 9 JUNE 2010