Good marketing things from 2009?

A Silver Lining in the Dark Economic Clouds?

The past year has certainly been challenging and scary. But to not learn from the events that we lived through would be a waste. Now is a good time to pause and reflect as it appears that the worst is over and we are seeing the beginning of stability that will become a recovery in 2010.
Despite the economic damage caused, plus the pain and suffering endured, there are benefits to be reaped and lessons to be learned. To that end, I wanted to share some of my observations and reflections as we reach year end.

1. Due Diligence Required – any investment, marketing plan, RFP request etc. has to be evaluated seriously and thoroughly before you recommend or approve it. Optimism, hope and the ‘or leading competitor is doing it’ are not acceptable substitutes.
2. Reasonableness – of assumptions, business model and any factor that goes into making a decision. Believing that real estate would continue to appreciate annually at 20% is not reasonable; common sense should have prevailed, and must in the future.
3. Metrics – everything you do in business must be measured, why otherwise would you do it? If you can’t figure that out, walk away.
4. End of ‘conspicuous consumption’– frugality is now ‘in’, which is not good for a recovery, but will be beneficial in the long term. How do you position your product to be a smart buy?
5. Customer service – more value as a differentiator and an element of the marketing mix (ie. Amazon or Zappo’s)
6. Valuing Customers – I have never felt more appreciation and love from companies I give my business to. Let’s keep this up, because without customers, you have nothing.
7. Values DO matter – even the Tiger Woods brand could not withstand the value judgments being made about him, right or wrong.
8. Image is NOT everything – sorry Andre Agassi - substance, being genuine and real does count. The world is far too connected, open and transparent to permit a false image to be maintained for long.
9. Green is real and expected – companies that merely wrap themselves in the green movement are sorely missing the bigger opportunity. Green marketing has direct benefits with customers, employees and every audience you want to reach.
10. Optimism is contagious – think about the mood in the US surrounding the Obama inauguration. Wasn’t it wonderful, refreshing and exciting? We owe it to ourselves to adopt and maintain a positive outlook, perspective and expectation of better things to happen.

In addition to looking back, it is also time to think about 2010. I'm not a big resolution person, but do believe that one must have a plan, if not vision for your upcoming year. It is very appropriate to pause a bit and sincerely think about all phases of your life and what you dream and hope will be true next year.

If you don't have a plan, you haven't got anything. Plan B is good to have too.

Happy New Year and good riddance to 2009!

Athlete Endorsers – Buyer Beware!

2009 has certainly given brands with celebrity athlete endorsers plenty to think about. From Michael Vick to Donte’ Stallworth, Michael Phelps, the MLB Steroid List and Serena Williams there is plenty to remind us of the potential downside of tying major marketing campaigns and your brand image to another person. Now with the Tiger tales emerging, the environment is downright scary. It will take a bold and courageous brand manager to suggest a high profile endorsement idea in the short term.

But return they will. Why? Simply because it works. Brands have a long history of turning to athletes for advertising, spokespeople or other association. Shave cream, tobacco and beer companies found out early on that sport was and remains an effective way to reach a male audience. As media outlets and exposure has exploded, sports have taken on a much larger role in our culture. As a result, stars and celebrity athletes have grown in their ability to shape customer perceptions, buying behavior and create new brands. For example, Nike Golf is the business that Tiger Woods built.

Does that make an endorsement a slam dunk? Certainly not. Like all marketing activities, this requires planning, careful consideration and evaluation. Below are some areas that must be considered before you enter the endorsement waters

1. What is your marketing objective? How long before you achieve it?
2. Know your brand and your target audience
3. Understand the role of the endorser, what do they bring to the program?
4. Define the attributes of an ‘ideal’ athlete
5. Evaluate at least 3, but definitely more than 1 athlete
6. Have the brand manager spend time with the athlete (not the agent!) understanding them and getting a feel for how they will fit with the brand and relate to the target.
7. BEFORE you negotiate with an athlete or agent, be sure you have identified every possible and potential use of their image, likeness, marks etc. You don’t want to go back after a deal is done and ask for something else
8. Share the marketing ideas with the athlete to get their input and allow them to feel like part of the team
9. After you reach terms, it is critical that the brand manager sits with the athlete (again, NOT the agent) one to one, to reaffirm the seriousness of the relationship and desire for it to work for both parties.
10. Delineate a very clear and complete ‘morals clause’ that will enable you to get of the deal for any behavior you find offensive or detrimental to the brand. Don’t settle for boilerplate language, make it as specific and flexible as possible, to meet any unforeseen situations.
11. Insert some ‘penalty’ language, in the event of unforeseeably bad behavior (Tiger). This goes above and beyond breaking the deal and walking away and may allow you to recoup some of the brand value lost. (At the very lest you will have done the right thing)

Typically, agents for bigger name athletes have been reluctant to include language, clauses and other steps that were considered invasive or challenging. Obviously, the Tiger Woods revelation has set a new standard which should enable potential sponsors to seek and obtain greater transparency, flexibility and collaboration. Any brand making a major investment would be wise to consider extensive background checks and investigations, as part of the due diligence process.

The marketing landscape is now shaped by so many outlets and marketing vehicles. The instantaneous nature and easy access is a huge opportunity and threat at the same time. As long as we build our businesses utilizing humans, with all our frailty and weaknesses, the potential for marketing doom exists. Cell phone cameras, security videos and Tweeter are a mere few seconds from the Internet.

Choose wisely and enter the athlete endorsement world with your eyes open. No surprises!

The Obsession with Fame - A lesson for Marketers?

When we look back at 2009 it will be remembered for a few major issues. Obama, the economic woes and Tiger Woods will dominate. But one of the major themes of the year was the media dominance of instant celebrities and fame seeking wannabes.

Fame puts you there where things are hollow

Fame, it's not your brain, it's just the flame

Fame

That burns your change to keep you insane*

Think about the names – Octomom Nadia Suliyman, Carrie Prejean, Susan Boyle, Jon & Kate Gosselin, The Heene’s /Balloon Boy and lastly the White House crashing Salahi’s among others. The amount of media attention, breaking news, scandal and speculation for these far outweighed their significance. Among this group, only Susan Boyle is a good news story and actually had something positive to contribute to mankind. The others largely were seeking their own affirmation, status or wealth. Sadly, children and families have been hurt or put in tough situations by their parents need for something they lack.

What is about our society that makes this possible? Certainly the proliferation of media outlets and channels has created a vacuum for content – good or bad – that must be fed. The challenging times have made people seek out a change of pace from the bad news on the economy or political front. And unfortunately, the same human nature that won’t allow us to look away from a car wreck is at play here too.

Many of these ’brands’ have employed, knowingly or unknowingly, many marketing disciplines and methodologies in pursuit of their objective – fame and fortune. For the most part, they have focused on the awareness building and demand generation phases, with less thought on sustaining a loyal customer base. (In most cases, they get professional help from a lawyer and PR rep to help them commercialize on their success)

So as marketers, I believe that there are some very valid lessons to learn:

1. Hype and publicity stunts are merely a tactic, not a strategy.

2. Be certain that you truly have something to offer- a solid product, service or content is imperative for long term success.

3. The old axiom, “There is no such thing as bad publicity” doesn’t hold any longer.

4. Twitter and other social media enable you to lose control of your message very easily and quickly. Word of mouth is still the most powerful marketing force, regardless of how it is delivered.

5. Customer trial can be easy to obtain (promotion, discounting, etc.) but repeat purchase is where the real money is.

As I always advocate, all marketing activities require an objective, strategy plan and measurement system. Even if your goal is just to be on TV…

* Lyrics are from “Fame” written by John Winston Lennon, David Bowie and Carlos Alomar

IOC Awards 2016 Olympic Games to Rio. What Went Wrong?

Wow! I never realized how many Americans were interested in the Olympic Games! The media backlash and gnashing of teeth over Chicago's 'loss' was quite impressive, and somehow so unexpected. But honestly, many comments come off as arrogant and uninformed, so typically American in their perspective.

The real question is "What Went Right (for Rio)?"

So let's tally up both:

What Went Right:
1. Timing - Rio was prepared to argue very effectively that the time was right for the IOC to finally award the Games to a country in South America.
2. Economic Conditions - It happens that Brazil was now the largest economy to have not hosted an Olympic Games. Fortunately, the recession was less harmful and recovery farther along.
3. Role of the Government - The Rio bid committee engaged the central government officials early on. This brought personal commitment of leaders AND financial backing of the entire country.
4. Rio really, really wanted it - Not only were they prepared and professional, but the enthusiasm of the country was evident.
5. Chicago Bid Was Well Done - Reports indicate that this was the best US bid in quite sometime. While that is little consolation, it does provide a positive template for the next US city.
6. Linking FIFA World Cup and Olympic Games - This may lead to some true synergies and economic efficiency, and may lead to a positive legacy for the country.

What Went Wrong:
1. USOC's Sad State of Affairs - Where to begin? Flawed USOC Network announcement? Ongoing difficult relations between the IOC & USOC? New leadership, with no NGB experience (and a salary that even made the IOC cringe) that doesn't even show up for major meetings? No US city should even consider a future bid until this leaky ship has been righted, and operating smoothly
2. Fear of Chicago / Anti US Sentiment - It appears some regional concern over Chicago led to the early ousting, despite the Obama factor. The Bush legacy will linger a bit longer.
3. Mixed Signals from the People of Chicago- When the bid committee is distracted in shoring up local support, emotionally and financially, the IOC will be concerned. Lack of a government funding guarante is always a turn off.
4. Star Power - The Oprah factor, while a good cheerleader for media hype, was not effective winning IOC interest. The bids should be based on the ability to execute a major sporting event.
5. Role of Statesmen - Despite the IOC's protest that the presence or absence of political leaders is a factor, the last 3 bids awarded (London, Sochi & Rio) had significant involvement of the leader of each nation. Presidents & Prime Ministers do not have adequate time to be actively engaged in Olympic bidding, but may have to to if they wish to win.
6. IOC & Controversy - No matter how an Olympic Bid voting ensues, it always comes off as a sordid, backroom deal. Somehow the sense of fair play and sportsmanship is overtaken by sour grapes. I guess a few billion dollars can do that. Call me idealistic, but I wish that a bid would be won based on providing the best expression of the Olympic Movement and the needs of the athletes.

I know I was selfishly pulling for Chicago as a way to boost the sports marketing industry in the US. But, Brazil and Rio were certainly 'due' to have a chance to host. It will engage the continent and lift sports and sponsorship broadly. Plus, Rio will be one HECK of a PARTY!


How do you see it?

Was Beijing the Last of the MEGA Olympic Games?

We are only a few days away from the important IOC vote on the 2016 Olympic Games host. Based on the events of the past 12 months, it is an appropriate time to reflect on the scale, scope and legacy of future Games, by looking backward.

I was fortunate to witness the Beijing Games up close, and can tell you that TV could not properly convey the physical scale of the events and venues. China must be experienced in person, to fully appreciate the enormity of anything that goes on there. It dwarfs almost all other countries and is huge in every way – land mass, people and ambition.

So it was no surprise that a mere 19 years after Tiananmen Square, the Chinese government and people were very eager, proud and anxious to show the world that they had arrived as an equal. And they delivered – venues that any nation would be proud of; an athletic performance that every host country dreams of; a television spectacle of unmatched beauty viewership, with much drama, color and entertainment; and for visitors a very inviting host city and people, virtually free of smog and traffic.

Of course, only the organizers know the true costs and impact of hosting the 2008 Games, because it does not appear that any budget was ever created, as virtually no expense was spared. Chinese citizens already endured displacement of their homes, jobs and endless construction and disruption. Most assuredly, they will be paying for the opportunity for many decades. But can anyone judge whether it was a shrewd investment? No doubt the people of Beijing will utilize many of the athletic facilities far into the future, and China may assume a broader global role, with further economic and social growth. But, already the Bird’s Nest is bit of a white elephant. Too large for C League football, economic times have slowed down international tours of major European football teams and the NFL has yet to sign up for a game. It sits promise unfulfilled, longing to the throngs of fans from August 2008.

It is my firm belief that Beijing will be the last of its kind Olympic Games. First, the sheer expense and investment made was astronomical. Few if any countries will be willing or able to take that on. Second, the economic meltdown we experienced in Fall 2008 has made us all realize how far out of touch things had grown, on all fronts. Spending untold billions on a sporting event now seems so out of proportion. Third, China was the last of the large economies remaining to join the ‘world stage’ through the affirmation of hosting an Olympic Games. The pattern was set decades ago as Japan (Toyo 1964) and Seoul (1988) were used as coming out parties for those countries. And just like China, they made sure it was a suitable event, regardless of cost or economic sense. Lastly, the IOC and popular opinion will force a more reasonable, affordable and sustainable approach to future Games. They have too or risk alienating the audience they hope to retain.

The IOC has hinted that the selection process will favor host city bids and proposals that have a core principle of reuse of current facilities and only building with a plan for use AFTER the Games. We will see in the 2016 selection if they hold to these principles. If not now, will they ever?

A modest venue plan can and will work. Atlanta 1996 is such an example. They used primarily the ample supply of existing venues – Georgia World Congress Center, Omni, Fulton County Stadium and Georgia State University. Those built new had a clear path for the future – Athlete’s Village became dorms for Georgia Tech; the aquatic venues also became part of Tech’s facility; the Olympic Stadium was resized to become Turner Field, etc.

The new Olympic Legacy will be one of affordability, reasonableness and suitability for the future. So I hope you enjoyed Beijing, it will not be repeated anywhere, anytime.

What are your thoughts?

EXECUTING SPONSORSHIP IN CHINA: LESSONS LEARNED

I’ve had the opportunity to work two major sponsorship events in China. In doing so, I accumulated an appreciation for a very different way of doing business. It requires great patience, a broad perspective and time - things which most Western brand marketers are chronically short of.



The 2008 Beijing Olympic Games were expected to ‘open’ up China as a market for a range of sports and other commercial ventures, only to be blunted by the global economic decline. The great success of the country as a host and event planner will no doubt lead to future activities. For those who will take the plunge, I offer up a few thoughts and guidelines.

1. Understand the Sources of Power & Relationship: All things lead to the Government
• Obtain the maximum government support possible
– It can make things easy or hard, and is mandatory in executing anything significant
• Be skeptical of anyone promising government connections
– “Guan Xi”: everyone in China has “relationships”
– Before investing time and effort, identify the key players and true power
• Try to Understand where real power lies
– Many and often confusing government layers
– Decision-making sources are not always intuitive
• Don’t look for direct government intervention in commercial

2. The Law & Contracts: Chinese Solutions Abound
• The government is the law in China
– It is not unusual to learn that laws have ‘changed’ or that the Chinese were ‘unaware’ of existing law in conflict with agreed to contracts

3. Negotiating in China: “Hidden Signals & Time”
• Be attuned for hidden messages
– Not always a straight line from Point A to point B
• Negotiation is Never Over
– Signing contract is often prelude to negotiating terms
• Face to Face Negotiation is Expected
– 90% of negotiation is done in person
– Don’t rely electronic communication until you close the deal
– Written correspondence should be formal in nature
• Time and deadlines are often used as a negotiating

4. Chinese Business Customs: “Protocol is Paramount”
• Be sensitive to the importance of protocol and ceremonies
– Be sure to have a hierarchical negotiating team
– Titles are critical; only send an “equal” to deal with government officials
– Anticipate and follow the formal Chinese protocol on seating, writing and gifting
– Understand the Chinese sense of national pride

5. The Importance of Legacy
• So they can develop skills and expertise, Chinese want to be as involved as possible in an event

This list is far from exhaustive, so also strongly suggest that a local business partner is needed. The cultural issues, unspoken rules and business style are so very different from any other country they cannot be mastered quickly.

Of the above, the importance of time and perspective. Things just do not happen quickly (unless the Chinese government is running it) and you have to plan for something totally unexpected to happen. Also, don’t be surprised by a previous agreement to suddenly be reversed, with no warning or explanation.

My experiences in China have provided many long lasting memories. It is a wonderful country of striking contrasts and awesome scale. It affords many opportunities and potential for wonderful things. Good luck and best wishes!

Key Marketing Facts for Sponsors of the FIFA World Cup

So, the US unexpected performance during the 2009 FIFA Confederations Cup raised soccer awareness in the States for a few days. As important as that is, it also served as a good reminder that the FIFA World Cup is only 11 months away. We’ve heard the rumors and echoes whether South Africa was even going to have the chance to host the event. Clearly, the show will go on, albeit with some added attention to hotel accommodations and transport.

And yes, those annoying vuvuzellas!

Most American fans and marketers place greater emphasis on other sporting events ahead of the World Cup, however for most of the world; it is THE competition like no other. Given that I offer some ideas and perspective on FIFA World Cup marketing:

• It is HUGE - everywhere but the US. Football/Futbol/Soccer has the highest awareness and affinity of any sports brand across the globe. More people play, follow and watch it than any other. The sport has an everyman appeal – it is simple and universal – requiring only a ball, pitch (field) and 2 goals; the rules are not overly complex. Fans cut across the spectrum of demographics.
• It’s Mass & Niche. The TV audience is very large - 2006 Cumulative TV audience of 26.29 billion (24.2 billion in-home viewers, 2.1 billion out-of-home). Yet, local marketing opportunities abound, in each of the 32 countries participating and especially so in the host country. Keep in mind that the World Cup mark/logo has much lower audience recognition and awareness than the Olympic Rings.
• It's not easy. Few sponsorship relationships ever are, but working with FIFA and the local organizing committee can be a very taxing exercise that will test the patience of anybody. Success will require that you be clear on your objectives and requirements, know the rules, know when to be flexible, and know when to stick to your guns.
• Everything is Al a Carte. A World Cup sponsorship doesn’t come with much in the way of out-of-the-box strategy or activation programs. The rights to use the event marks are valuable, but pricey. Sponsors are largely on their own to create and leverage activation programs that drive business value. FIFA has a few standing programs (Fan Fest public viewing, Global Trophy Tour & Domestic Trophy Tour) that can be leveraged on a buy-in basis.
• The FIFA Calendar is Marketing Friendly. With a very defined four year schedule of qualifying matches, milestone events (Final Draw, etc.), Confederations Cup, plus a full month of World Cup competition, there is ample opportunity to build and execute cohesive and timely programs over an extended period.
• Broadcast advertising does not work. If you don’t know, world soccer is not very TV advertising friendly. The game action runs for a continuous 45 minutes per half – no commercial breaks, no timeouts. There are on screen presence opportunities, but like sponsor field boards, they don’t deliver a message. Ad dollars may be better utilized on-line and in non match settings.
• Outstanding customer hospitality opportunities, but tricky. World Cup hospitality is among the most aspirational of all sports. Done well, a World Cup hospitality program can help a company enhance valuable business relationships in ways that will have lasting, positive impact on its business. But it can be complicated. Typically matches are played in 10 -12 cities in the host country. Guests often desire to see the ‘major’ matches Semi-Final or Final, or want to see their home country play, which makes good coordination and client management critical. Matches are not schedule for everyday of the event, so sightseeing and cultural activities allow for a great experience.
• It’s the World Championship of Football/Futbol/Soccer. The athletes are all well paid professionals who compete for various clubs around the world who join the national team for this event. Unlike the Olympics, there are few athlete hardships and no great societal causes. So don’t expect to wrap yourself in corporate responsibility. FIFA has some charitable activity, but it is not a sponsor thrust.
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Kevin Hanft has first hand experience activating and managing FIFA World Cup programs in 2002 & 2006

New Business Pitch – Tough Times Require Fundamentals

I recently participated in a new business pitch for a major branded sports property. The agency team pulled together and did a great job, developing a thorough presentation and exciting creative. It’d be a great account to have on agency roster, in any economic environment.

It struck me that we should approach more of our professional lives like a new biz pitch. For those in agency or consulting businesses, you are constantly in this mode so it may be old hat. But folks in other corporate roles who lead projects or have responsibility for matrix management, you too are pitching. Clearly, anyone in career transition, every interaction is a new biz pitch.

During an earlier fact finding conference call, the client commented on how other agencies had ‘missed the point’ and did not seem to be in synch. Given the tough markets, it’s hard to believe that they were not all over it. Now, more than ever you must be sure to absolutely nail the basics and pay attention to details, regardless of the business you are in.

Listen to the Client/Customer. Usually, they will provide you with the answers or at least the kernel of an idea. Read the brief and be sure you understand it, fully and thoroughly. Be sure to ask insightful questions about the business, organization, customers and environment. Observe everything in their offices, people and mood. Don’t forget to pay attention to all that is not written or spoken.

Do the bookwork. There is no excuse for not being fully versed in the client business and market. The internet provides so much information and affords access to ideas, people and input. Shame on anyone with huge gaps in their knowledge and command of it.

Prepare well and have your credentials ready. Your business case, creative, facts or presentation has to be well conceived, thought out and clearly communicated. Be sure to have summarized your experience, expertise and knowledge that provide your authority. Be sure to practice, especially when many folks are part of the presentation. The interaction of your team must seem natural, confident and genuine.

It may come down to chemistry equation – 1+1=3. Creating an appropriate emotional connection is generally the tie breaker between winning and losing a pitch. Credentials, client references and team experience all matter, but ultimately they will be adding you to their team. Both must be comfortable that style, approach and philosophy are a good match. There are no magic bullets for this; my advice is to be honest and true to your identity. A veneer front to win the business won’t last long.

Sell yourself. You cannot be shy about pointing out your skills and accomplishments; just don’t overdo it and assume your past will carry the day. You still have to close the deal based on what you can do in the future. Be sure you make the client know you sincerely want the business and will work hard on their behalf; but don’t fawn or sell past the close.

The END of Sponsorship Marketing?

Thankfully, we have seen the end of the populism trend of bashing every company that had a sponsorship, ran client hospitality or rewarded its employees for working hard. I understand the sentiment that people cannot walk away rich for failing or manipulating the markets. But, where accountability exists and results can be demonstrated, I support most any activity that makes solid business sense.

Clearly sponsorship took it on the chin for a while in 2009, with auto makers and financial services firms as leading sponsors, it is hardly a surprise. Other industries have been affected too, but in a less public way. Their shareholders and industry watchers are rightly asking about the contribution and investments in sponsorship.

Let’s be honest, spending in sports & sponsorship grew explosively from the late 1980’s until 2007. It was a great period to be in property and rights sales, as brands fell over themselves to match competitors and gain advantage. Look at the growth in sports, leagues, teams and networks, nearly uncontrolled. Yes, much of this is related to the growth of media and the need for content. It also reflects the increasing fractionalization of the market and niche interests.

But just like real estate and Wall Street, there was an extreme case of exuberant optimism running amok. I say this based on the continuing din in the industry regarding metrics and ROI. Given the noise, it is clear that many brands engaged in sponsorship are using a compass and sextant in a GPS world. To me it is not about the magical ‘black box’ everyone is waiting for. Rather, it is about sponsorship managers rolling up their sleeves and engaging with marketing peers to decipher what matters and how to account for it – as simple as that. (Clearly it is not THAT simple – but most make it far too complicated and hard)

Returning to my argument for the day; Sponsorship will continue to be a viable and important marketing tool. Why? Simply because when it is done well, there is no more effective way to reach, influence and move customers through the relationship cycle – faster and with more commitment. The intersection of a brand, a sport and consumer passions is hard to beat.

Now it will never be the same as the ‘90s, and thank goodness. We will see a more measured, strategic and smart application in marketing plans. Properties will be better prepared to aid partners in proving the value and may take on accountability, too.

If you were Saturn and looking for a way to convince the market of the engineering expertise, sophistication and durability of your cars, would you look to an ad campaign, viral web, social web or sponsorship of a racing team? Probably some of each, but only by taking your cars onto the track will demonstrate those qualities and truly bring the brand to life.

Moving Towards a True Integrated Marketing Philosophy

Raise the topic of integrated marketing among marketer and watch heads nod briskly. It is not so clear if it is in acknowledgment of the fundamental soundness and pragmatic value or in application. It seems that few brands and companies really understand and embrace the practice.

Why is this? Surely we have moved past the naive understanding that ‘integrated’ meant all creative executions looked similar and were delivered to the market around the same time. Despite the rational support for implementing integrated marketing, there are some institutional boundaries that restrict it.

I suspect that many CMOs grew up in business with TV as the pinnacle of brand marketing activities; just now are we seeing senior marketers who have been “digital” for most of their life. These factors are not easy to overcome, but will as the next generation of CMOs emerges. In addition, the advertising world still portrays the big general agency who does TV and Print with greater reverence and esteem. These factors, plus agency compensation models have made true integrated marketing difficult.

So what is wrong with this approach, you ask? Let’s examine a typical approach for a brand campaign.

1. The general agency (as the lead agency) participates in developing or tweaking the Brand Positioning, from which the Big Idea is established.
2. The general agency develops TV Story Boards and Executions, with CMO and Senior Marketing staff involvement.
3. Other media leads (digital, direct marketing, PR, shopper, sponsorship, etc.) are then tasked with adapting the TV idea; too often via awkward agency to agency briefings.
4. Media planners is left to stitch together a cohesive plan by sequencing buys.

Rather than the waterfall cascade from TV to other communication, would it not be a better use of resources to have all agencies and marketers participate in the brand positioning and big idea development? With today’s multi-touch media and multi-channel distribution model, it is necessary to include broader viewpoints than just that of the TV audience. This will also enable media centered ideas to emerge upfront; critical with the plethora of social web choices available.

By engaging broader agency and brand resources to participate in evolving the campaign ideas, a richer and more vibrant discussion will ensue. The potential of having smart creative people build upon each other and create synergistic and linked programs is significant. No one agency or media form has a lock on good thinking, if we are open the possibilities. And, given the new media horizon the traditional approach has to be scrapped, since niche to mass is becoming a more common pattern.

No doubt, this will require advertisers and brands to take a very clear and firm stance with their agencies that all planning will be done in a collaborative and integrated manner. (Not to mention the ego soothing and hand holding needed). But the biggest challenge may lie with agency structures and compensation.

An ideal scenario might be one where a brand works with an agency holding company and defines the types of resources desired. It is up to that holding company to provide a ‘virtual team’ of the best and proper people at any given time to meet the needs. This could involve a mish-mash of people from general, media planning, digital etc. across their organization. Many boutique agencies follow this pattern now – working with strategic partners to supply critical resources a project requires, but not charging the client when not needed.

I expect the agency issue is not easy to resolve, but when enough client’s demand that approach it will be. The most critical opportunity is for clients to make the move to true integrated marketing for it is a better approach in meeting customer needs and maximizing the relationship and ultimately shareholder value

Mar-Com Evaluation:How NOT To Do It!

Lately, accountability and transparency have become part of the vocabulary of every newscaster and Wall Street analyst. That should not undermine or reduce their significance and efficacy in business. Entering into the business recovery that is coming, all managers will be expected to instill and utilize smart business fundamentals. Critical elements will include emphasis on budget soundness, metrics, and results tracking.

Marketing Communications practitioners will have to ensure that they have ‘game’ when it comes to evaluation and monitoring. Too often, folks have emphasized the intuitive art of marketing communications at the sake of the marketing science. There must be a place for both, working together can only enhance and improved marketing program effectiveness.

There are no acceptable excuses or rationale EVER, for any marketing program to be launched without a clearly defined, practical and well rounded evaluation and measurement plan.

Below are good examples you should NOT follow. Marketing Leverage LLC has experienced and witnessed well meaning and skilled marketers who committed these very mistakes. They went astray for assorted reasons – lack of time; budget restrictions; misguided assumptions on new products/categories – etc.

1. Don’t Identify Clear Objectives
• All campaigns should have well defined goals and measurable objectives
2. Evaluation Criteria and Approach is Developed After Execution
• Building it in early allows for testing / control measures and helps establish a broader body of data for further analysis
3. Forget about Benchmarks
• Campaign objectives, norms, industry trends and historical data all help the ability analyze and evaluate campaign results.
4. Ignore Historical Data
• Campaigns have to show changes in customer relationship with the brand and how they affected behavior.
• This requires data over time to put results into context. A minimum of 3 years is needed for proper perspective.
5. Ignore Behavioral Outputs
• Many important marketing objectives focus on perceptual changes, awareness, interest and attitudinal shifts
• Ultimately, action is required to translate into business results, so trial, referral, increased usage are even more necessary
6. Results that aren’t projectable
• To be useful, statistical significance is mandatory
• Sample sizes & tests must be vetted by a research pro
7. Results are Not Linked to the Program
• Showing effects is not enough; you must prove the campaign was responsible
• Identify repeated correlations – e.g. - Awareness increases following advertising flights; Volume increases associated with retail promotions
8. Failing to Consider Outside Factors
• Positive results are always believed to be the result of marketing activity
• Good or bad, complete analysis requires consideration of factors unrelated to your program.
i. Other marketing programs by your company – DR, sponsorships, PR, etc.
ii. Channel – increased distribution; retailer promos
iii. Competitor or substitute activity
9. Taking Direct Response Data at Face Value
• DR rates are impacted by any and all other marketing forces at play; you must include some assessment of the factors observed by your analysis
• DR results only measure one perspective of a campaign. Marketing and digital programs can boost awareness and drive retail sales.
• DR doesn’t measure the total contribution. For example, poorly executed programs can drive many unqualified inquiries, increased call handling times or create excess demand; all with additional cost implications
10. Focusing on the short term
• Ideally, a marketing program should be measured on the long term value of contribution to the brand and company
i. Heavy discounting or promotion can undermine a premium position
ii. User of mass or selected retail channels may weaken a luxury brand
11. Silo Analysis
• Looking solely at one channel naïve and self-serving. Effective marketing managers will seek to understand the interaction among channels and how they influence consumers
• Program timing, investment planning and fulfillment all require a holistic view
12. Seeking Volume over Value
• Closely linked to short term thinking, many marketers go for big numbers (responses, share, units); failing to consider the full impacts
• Volume of any sort will have cost implications for a business that must be understood
i. Response handling
ii. Fulfillment
iii. Manufacturing
iv. Customer service

Partnership Marketing – Moving to True Win-Win Relationships

“Strategic partner” is a term used freely and likely too often. Especially when it comes to sports and entertainment marketing. Properties have moved away from the term sponsor, as it has taken on an almost derogatory tonality. Political correctness has called for ‘partner’ as the preferred label.

To be honest, I don’t care what term is used; I just want properties and brands to truly understand and agree upon the nature of the relationship they are entering. The issue - I don’t believe that anyone is aware of the very real distinction, so regrettably they use the words interchangeably.


Looking at Webster’s Dictionary we find the following:

Sponsor: a person or an organization that pays for or plans and carries out a project or activity ; especially : one that pays the cost of a radio or television program usually in return for advertising time during its course; patron, backer; guarantor.

(Emphasis on financial support, exchange for some benefit)

Partnership: a relationship resembling a legal partnership and usually involving close cooperation between parties having specified and joint rights and responsibilities

(Emphasis on collaboration, mutual interests and accountability)

These are quite useful in delineating the relationships. If we can only get folks in the industry to use them correctly and consistently, we would all be better off. Both have valid and useful roles in marketing, based on the objectives, time horizon and level of strategic investment being made.

For a one time promotion or marketing activity (product launch, etc.), the role of sponsor may be most appropriate. It begs a shorter agreement and relationship, lower integration of intellectual property and a more tactical activation approach. Similarly the financial and resources needed would be lower, based largely on a valuation of the tangible assets and projection of intangible values.

There is no reason that a successful sponsor relationship cannot evolve into a partnership. In fact, this might be a preferred approach to reduce risk – allowing a brand to test the property as a vehicle and marketing partner before committing to a long term investment.

Partnership indicates a more meaningful connection and intentional interconnection of brands. This would lead to a relationship that spans multiple years (or assumed to be ongoing) which allows for activation and integration at a much deeper level. Partnerships should involve Honesty, Openness & Trust, none of which can ever be specified in an agreement. You may sense any or all during the pitch phase, but that may fade after the ink is dried. It is unfortunate and a lost opportunity. When a partnership is reached, thoughtfully evaluated and based on well matched brands and properties, embraced with a collaborative and mutual desire to succeed it can be plenty powerful.

I would like to put forward a few suggestions that would enhance and elevate the art of partnership marketing:


Property –
• Understand, to your core, the business, markets, goals and issues partners are facing.
• Seek to add value anywhere possible; accept your obligation to help your partner truly maximize their investment with you – activation ideas; internal sell-in support; connection to other partners and potential customers
• Look out for our partners interests – even if it means restructuring a deal to better match the assets with the opportunities.
• Avoid the temptation to only look at the $. Sometimes the biggest deal is not the best one if the partners are not compatible in some way. Don’t renew deals with partners who do not activate adequately or enhance the overall property brand.

Brand –
• Accept that part of your obligation is to help the property grow, expand and improve.
• Properties depend on their partners help in building their value and appeal. Many do not have the sophisticated marketing resources you do and are depending on partners to help achieve their goals, while you achieve theirs.
• Pursue and push, adamantly for integrated and strategic activation programs. Logoed advertising and retail promotion is not worthy of a partnership investment.
• If something is not working, talk to the property. They can’t help if they aren’t informed.

Property & Brand both share the burden of only doing deals that make sense and have mutually beneficial outcomes. Due diligence and investigation will determine the strategic fit and time together will help surface the mutual chemistry and style issues. Accountability is expected here on out, so both must be willing to participate in data collection and sharing.

It is my sincere hope that the recent times will help shape and formulate a marketing environment where strong long term relationships are evolved from great work. Business results on both sides will reward those who are able to invest in and leverage mutually beneficial opportunities.

And by the way, well founded highly integrated partner deals will enhance the fan and consumer experience too!

Extending the CMO Influence

The CMO craze hit companies pretty quickly in the late ‘90s. They were falling all over themselves to give the ‘top’ marketing person a fancy new title and keep pace with their competitors and peers. I don’t perceive that much really changed as a result of this trend, other than a few thousand folks now being paid more for C-Level roles, yet performing essentially the same functions.

It has been my observation that the quality, role and value of marketing were not dramatically advanced by this wave of activity. Don’t get me wrong, I fully support the idea of marketing being at the very core of planning and operations for a business; equal to that of finance, logistics, HR & legal. If companies are expected to fulfill customer needs and wants, how can it not be?

The problem is that many CMOs still go no further than those areas they have been comfortable with and are typically part of their domain: advertising, brand & identity, direct marketing and maybe PR. So, after they are elevated or hired the CMO announces new marketing objectives, launches an agency search and rolls out a new ad campaign. Voila! Case closed, done deal.

Not so fast…in my view the CMO has the potential of much farther reaching and important roles that can add real value to the business. Most fall far short of their potential. The CMO should be the keeper of the BE (brand essence & brand experience) flame and the biggest advocate – externally and internally. They have to ensure that all touch points that shape the BE are doing so in the desired manner. This makes an already big job, huge and truly deserving of C-Level accountability and reward.

If we think broadly and with a blank sheet, many of the customer interactions with a company are not defined as ‘marketing’ (and under the CMO control). None the less, each and everyone has the potential to build, reinforce or hurt the BE, especially since many have deep and far reaching impact.

The CMO already has responsibility and input to many of them – advertising, digital/web, Mar-com, PR, store promotion, etc. What we commonly think of as the outbound communication. But what about all the other brand interactions that do occur as your customer buys, uses and services your product or service, most of which are far removed from the CMO? – billing statements, accounts receivable/payable staff, product packaging, sales, sales channel partners, customer service, technical service, company vehicles, product documentation, employee communication & training, HR Recruiting, etc.

How often does the CMO or staff interact with and input on these, other than on logo or brand identity? Not very often. Going further, what about the communications or interactions that don’t directly involve your customer, but still shape the BE – corporate aviation, investor relations, industry analysts, manufacturing, procurement, philanthropy and real estate.

I think it is fair to assign the CMO with ownership of the BE company-wide, regardless of who and how it is delivered and to what audience. This sets up some interesting organization design and reporting issues that will challenge traditional thinking, but must be addressed. The CMO will have to be involved in areas and ways that they never dreamed or desired previously, to maximize BE and shareholder value.

Don’t think manufacturing can impact your BE? Suppose you’re a new CMO who has embraced Green as a central theme. You develop a product that is environmentally sensitive, ensure all marketing materials are recyclable; you develop an environmental cause component. A week after your launch it is reported that your contract manufacturer in Asia has been illegally dumping toxic materials for years. You got it, you are dead!

The core of my argument is that the CMO should NOT be satisfied to be the uber ad director and should not be involved on a daily basis with hands on tactical activity.

They have to lead the charge to understand, embrace and evangelize the BE. This will require a very different orientation; spending much more time with customers, channel partners and employees – helping to discern the BE and ensuring that ALL employees (not just marketing) deeply understands and internalizes it. Every employee has to be part of the BE delivery mechanism, for some groups it will take many repeated discussions before they can be brand advocates.

I don’t expect this is something a majority of CMOs will want to take on. It will be hard work, scary as they probe deep murky areas of the business, all while trying to not step on toes. But the role of change agent has always been a lonely one. How many companies have started down a path, only to discover how difficult it is, only to abandon it, leaving the anointed one under the bus?

For those companies shrewd enough to adopt this broadest view of BE and manage the organization and structural challenges, the upside is great. The CMO (or CBO - Chief Brand Officer) who accept this opportunity have the potential to shape the brand and impact customers in the greatest way possible. They truly can become marketing superstars.

How many are willing to step up?