2. Quick Exercise
Problem: high-end shampoo is being stolen from our
fancy health club showers
Challenge: eliminate theft, at zero cost, without
upsetting the members
3. Exercise
Leap to the solution: physicians diagnose (on average) in 18
seconds
Make false assumptions: itâs the staff, itâs only the women, itâs
only the infrequent members
Complicate it: buy dispensers
Compromise: put cheap shampoo in expensive looking bottles
(how about just removing the caps?)
8. two things
#1: companies and brands that do
marketing well have a significant
competitive advantage and create
significantly more value⌠across
industries, channels, geographies,
demographics
9. two things
#1: companies and brands that do
marketing well have a significant
competitive advantage and create
significantly more value
#2: doing marketing well is a real bitch
today
19. According to eMarketer forecasts:
-⯠US online ad spending will grow 8.4%âto
$27.2 billion.
-⯠US online ad spending will account for
16.2% of total media dollars.
-⯠US internet users will number 230 million
â73% of the population.
-⯠US social network users will climb to
140.2 million.
-⯠US online video viewers will surpass 160
million.
-⯠US mobile phone users will top 250
millionâ80% of the population.
These trends are not just limited to the US.
20. Aggregate value of brands has been
falling steadily (brand value accounts
for about one-third of the total stock
market value of corporations):
â˘âŻ Trust: -50% (down to 22%)
â˘âŻ Quality: -24%
â˘âŻ Awareness: -20%
â˘âŻ Esteem/regard: -12%
31. From Virgilâs The Aeneid
Situation:
Paris took Helena from her husband, Menelaus, King of Sparta, back
to Troy.
Agamemnon, brother of Menelaus, led an expedition to retrieve
Helena
Problem:
Troy was a heavily fortified city, and the Trojan War raged for 10 years
Great warriors Achilles and Ajax (and others) died in battle
Objective:
Insight:
Strategy:
Plan:
Measure:
32. From Virgilâs The Aeneid
Situation:
Paris took Helena from her husband, Menelaus, King of Sparta,
back to Troy
Agamemnon, brother of Menelaus, led an expedition to retrieve
Helena
Problem:
Troy was a heavily fortified city, and the Trojan War raged for 10
years
Great warriors Achilles and Ajax (and others) died in battle
Objective:
Retrieve Helena
Insight:
Odysseus said to appeal to the Trojansâ vanity somehow as a way to trick them
Strategy:
Give the Trojans a âgiftâ to appeal to their vanity
Tactic:
The horse, with troops inside
Measure:
36. UnderArmour
â˘âŻ $850 million revenues
â˘âŻ Sales have tripled in the past five years
â˘âŻ CEO Kevin Plank wants the brand to be
âthe biggest, baddest brand on the
planetâ
â˘âŻ Launched cross-training shoes
41. marketing operating model
â˘âŻ articulated business goals that
are actionable and measurable
â˘âŻ a clear brand position that is
â˘relevant â˘beneficial
â˘likable â˘valuable
â˘âŻ one integrated demand-side
agenda that links:
â˘architecture
â˘actions
â˘feedback
â˘âŻ disciplined process, team leader,
communications
42. â˘âŻ marketing from the wide
mouth of the funnel.
â˘âŻ Awareness assumed to be
mostly spend driven
â˘âŻ ad spend timed for retail
distribution
â˘âŻ The role of retail to create
availability
43. The Funnel⌠The Accelerator
 markeBng compresses the customer buying life cycleÂ
CustomersÂ
48. Platform
Team Extended Team Team Leader
Objectives &
Briefing
Brand
Immersion
Consumer
Immersion Idea
Generation
Idea
Selection
Play Session
Project Management/Timing
Budget/Media Mix
Internal Support
Resources Engaged
Approvals/Milestones
Tactical Plan
Planning Controls
Scenario Planning/Forecasts
Research/Testing
50. are you compelling?
Marketers say: âOur initiative generates the
branding and strong creative we need to
differentiate ourselves in the marketplace.
Consumer feedback has been positive and affinity
scores are rising.â
The CEO/CFO wants to hear: âOur analysis shows us that
our $3 million program generated an incremental +$22.3
million in revenueâŚ. andâŚ
We can continue to generate positive results up to a $4.5
million investment level, generating an additional +$10.6
million in incremental revenue, at which point we begin to
lose positive impact on the business.â
56. It comes from a fascinating article in the New Yorker, by Chandler Burr;
about the creation of a new scent for Hermes.
This a French perfume executive describing the typical brief that marketing give to the perfumiers:
âBasically, itâs âWe want something for women.â
OK, which women? âWomen! All women! It should make
them feel more feminine, but strong and competent,
but not too much, and should work well in Europe
and the US and especially in the Asian market, and it
should be new, but it should be classic, and young women
should love it, but older women should love it, too.â If itâs a
French house, the brief will also say, âAnd it should
smell like that Armani thing two years ago that did
four million dollars in the first two months in Europe
but also like the Givenchy that sold so well in China.ââ
57. typical assignment format
â˘âŻ Campaign Name
â˘âŻ Campaign Manager
â˘âŻ Campaign Launch Date
â˘âŻ Estimated Budget
â˘âŻ Overview/Background
â˘âŻ Goal
â˘âŻ Targeted Audiences
â˘âŻ (Retail Target)
â˘âŻ Volume
â˘âŻ Single Minded Idea
â˘âŻ Support
â˘âŻ Call to Action
â˘âŻ Media
â˘âŻ Tone & Manner
â˘âŻ Executional Mandatories
â˘âŻ Key Stakeholder Signatures
whereâs the insight?
71. âweâre not in the coffee business serving
people⌠weâre in the people business
serving coffeeâ
- Howard Schultz
72. âWe Bring Good Things To
Life.â
ď§âŻ Why change a winning
campaign?
73. âWe Bring Good Things To
Life.â
ď§âŻ Why change a winning
campaign?
âImagination At Workâ
ď§âŻ To re-energize a brand, a
company and its culture
74. GEâs quest of simplicity, speed,
agility
â˘âŻ If our brand is how we express
ourselves, it should also define our
aspirations
â˘âŻ Students of history â constant
state of change
â˘âŻ 30âs Live better electrically
â˘âŻ 50âs Progress for people
â˘âŻ 80âs We bring good things to life
75. GEâs quest of simplicity, speed, agility
â˘âŻ 11 very different businesses
ď⯠Healthcare, transportation, security, financial
solutions, energy, locomotives, media/
entertainment
ď§âŻ Issue - customers see company that used
to be vs. company we want them to see
ď§âŻ Result â time to change, marketing needed
to be agent for change
ď§âŻ New CEO objective â be a growth
company like never before
ď⯠Grow organically, marketing to be lever for
growth
76. â˘âŻ Learning
â⯠Customers knew us well, weâd
built trust, but they expected more
â˘âŻ tried to stretch current tag line â âWe
bring good things to lifeâ
â˘âŻ Insight â old positioning tied
company to past and products; GE
now more people focused, about
benefits, solutions
â⯠Employees identified with spirit of
Thomas Edison - genius 1% inspiration/
99% perspiration
â⯠Focused in on imagination â creates
magic, magic creates miracles
77. New Direction
Simplify GE, make more approachable
ď§âŻ Needed strong, broad based consumer
campaign despite B2B
ď§âŻ Corporate campaign with zeroed in divisional
efforts
ď§âŻ Print â showed product from esthetic point of
view, mixed technology with consumer
benefits
ď§âŻ Brought technology alive by showing benefit,
future potential
ď§âŻ Partnered with Olympics â important
especially in China
ď§âŻ Update brand architecture â divisions going to
market as more solutions-oriented
ď§âŻ Framework yet flexibility for global
interpretations
78. New Direction â Results
â˘âŻ Objective â top line, marketing led growth
â˘âŻ Really comes down to culture
â⯠Imagination a breakthrough effort
â⯠Each business â 5 new ideas that generate
$50 â100 million incremental revenue (have to
be lead by marketing)
â⯠Idea incubator levers - Brand, Market
development, understanding what customers
want
â⯠Return = 80 projects generating $25 billion in
revenue from $7 million investment
â⯠Powerful formula â taking imagination, putting
marketing skills to work
â⯠Measuring leaders â how imaginative they are
79.
80. Disneyland
â˘âŻ lots of rides
â˘âŻ fun for the whole
family
â˘âŻ great value
â˘âŻ new stuff
â˘âŻ better than Legoland
â˘âŻ rated âbestâ
â˘âŻ from Mickey
85. how to be different
â˘âŻ by Degree - - superior in some way:
better, faster, cheaper
â˘âŻ by Distinction - - separate and unrelated
86. positioning/ad study
â˘âŻ examined a weekâs worth of tv ads
â˘âŻ 7% communicated anything âremotely
resembling a positioningâ, as judged
by a panel of experts
87.
88.
89.
90. Is your positioning
compelling enough to
attract choices from your
audience?
And is your brand unique
enough to preclude other
competitive choices?
92. upscale mustard
to connoisseurs who wouldnât dare use
plain yellow mustard on anything, this
brand shows/proves that they are a cut
above in what they eat and how they
live.
93. upscale mustard
Emotional Benefit How the consumer
feels
Serious taste
enjoyment
Consumer Benefit What the consumer
gets
Great sandwich!
Product Benefit What the product
does
More flavorful
Product Attribute Functional/physical Spicy, tangy
96. upscale mustard
What to do?
Reposition
Change the message
Change the product
Find alternative uses
Focus on the 50+ audience
Line extend to younger families
Cut the price
Advertise more
Sample
Sponsor
Expand distribution
97.
98. upscale mustard
â˘âŻ Problem: younger families donât buy
this brand
â˘âŻ Real Problem #1: younger families
donât make sandwiches
So what?
â˘âŻ Real Problem #2: âsnob appealâ isnât
relevant/motivating anymore
So what?
109. 1. itâs compelling, motivating
2. it has sufficient support
3. your entire organization is aligned and
supportive
4. Itâs based on deep consumer insight
5. The creative is clear
6. your customer is predisposed and reached
7. your effort is better than the competitionâs
8. Your brand is healthy
9. The brand positioning is relevant and
unique
10.⯠It comes from the right business objective
& strategy
111. Can marketing be a fully sequential
engineered system in which
deliverables result from planning,
designing, building, testing, reworking,
retesting, and finalizing?
Or is it better to just MSU*?
114. Shopper marketing
Direct marketing
CRM marketing
b2b marketing
Neuro-marketing
Behavioral marketing
Mass marketing
1 to 1 marketing
Social marketing
Internal marketing
Multi-level marketing Integrated marketing
Public relations
Cause marketing Word of mouth marketing
Database marketing
Digital marketing
Target marketing
Global marketing
Local marketingLoyalty marketing
Marketing communications
Relationship marketing
Event marketing
Experiential marketing
Mobile marketing
Entertainment marketing
Corporate marketing
Influencer marketing
Guerrilla marketing
Grassroots marketing
Buzz marketing
Stealth marketing
Trade marketing
Brand marketing
Email marketing
Outbound marketing
Inbound marketing
Niche marketing
Promotional marketing
Affiliate marketing
Viral marketing b2c marketing
115. âthe most highly engaged brands saw
company revenues grow by +18% over
the last 12 months. The least engaged
companies saw revenues decline by
-6%â â Interbrand study âŚ.
engagement equals financial returns
116. The real question is this - - how do you
spend as little as possible to achieve
your objective?
118. 118Â
Some Numbersâ LiquorÂ
â˘âŻ $1 million to run a sampling programÂ
â˘âŻ Visible by 400k people = $2500 cpmÂ
â˘âŻ Sampled 50k people = $20/sampleÂ
â˘âŻ 80% ďŹt the target = $25/quality sampleÂ
â˘âŻ 75% say theyâll buy = $33/intended purchaserÂ
â˘âŻ 60% actually bought = $42/purchaserÂ
â˘âŻ 66% repeated = $62.50/loyal purchaserÂ
â˘âŻ 24k x 1x x $8 =     $200kÂ
â˘âŻ 16k x 4x x $8 =     $500kÂ
                                 $700k proďŹt â $1 million = â$300k lossÂ
119. Cellular Service
Which one would you choose?
1. 3,000 free minutes (weekends)
2. Free phone ($70 value)
3. âDo Your Friends a Favorâ
(Free inbound call from specified #âs)
120. Cellular Service
Now which one?
3000 Free Friendsâ
Minutes Phone Favor
Reach 80% 70% 70%
Comprehension 60% 70% 50%
Appeal 50% 40% 70%
Conversion 30% 20% 20%
Revenue Î +8 +3 +4
Brand value -2 0 +10
121. Cellular Service
Now which one?
3000 Free Friendsâ
Minutes Phone Favor
Cost of program $2.7M $500K $2M
Revenue Gain +$8M +$3M +$4M
$ Net Profit Gain (1.1M) $100K ($1.2M)
Brand Value -2 0 +10
122. Cellular Service
Observations
⢠Sometimes you need to buy share
⢠Sometimes you need to build brand value
⢠Sometimes you need a positive ROI
⢠Sometimes there are other definitions of success:
⢠Reach a new target audience
â˘âReal estateâ gains
⢠Pre-empt competition
⢠Sales force motivation
⢠New channels of distribution
⢠Spend the budget
125. Is your positioning
compelling enough to
attract choices from your
audience?
And is your brand unique
enough to preclude other
competitive choices?