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
Tuesday, June 2, 2009
Tuesday, May 26, 2009
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
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
Tuesday, May 12, 2009
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!
Monday, May 4, 2009
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?
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?
Friday, April 24, 2009
Competitive Marketing Rules – Staying One Step Ahead of the Competition
When we emerge from this economic malaise, those companies that hope to thrive have to be committed to winning. Survival is not an end goal; thinking like this will ensure future troubles. Long term, strategic planning requires that survival of the fittest requires playing to win.
During my stint in Competitive Marketing Analysis & Strategy, one of the agency resources had been part of the first Bill Clinton for President team. In discussions, he often related how alike political campaigns and competitive marketing were. For each winner there is a loser. Being the best candidate is not nearly enough. Good strategies, tactics, planning, preparation and timing are all essential.
On that basis we undertook the challenge of creating on a rapid assessment & response capability. The idea was to develop the capability to understand the other guy’s situation and strategy to the point one could anticipate and predict the likely marketplace moves available. And then have some prebuilt ideas, campaigns, attacks. Essentially we hoped to play Chess (multiple moves ahead), while the other guys played Checkers (one move at a time.)
The agency, brand and competitive folks on this team evolved a set of guidelines. While much of the responses were tactical, a strong and clear strategic orientation and perspective was critical. It is very easy to be drawn into a firefight, winning the battle and losing the war. The following rules help reinforce the big picture needed:
1. No flesh wounds! Go after vital organs.
a. Core values
b. Basis of their legitimacy
2. Not for the faint of heart. Don’t make a move unless you are willing to drive it to the end.
a. Anticipate and plan for responses
b. Keep playing chess; it’s easier in the long run.
c. Only fight on turf YOU want to fight on.
d. Make the other guy fight from his sewer
e. You always have the option to muddy the waters
3. Timing is key. Communicate when the attention is on you
a. Keep your powder dry until it is time to kill.
4. Always be credible. The best credibility is to use the other guy against himself
a. Specific facts trump broad generalizations
b. Is it Negative or Comparative? That is determined by the receiver
5. Above all, make sure you are newsworthy
6. Your foundation is the general or specific knowledge that exists in the marketplace
7. Get someone else to go negative first, if possible
a. Claim you were attacked
b. You are merely & simply forced to defend yourself….THEN STICK THE KNIFE IN & TWIST FIRMLY
8. You absolutely cannot make a mistake or be caught in a lie
9. All communication must empower the audience.
a. If they aren’t gaining power, YOU lose.
10. Create and maintain the air-cover of decency
a. Don’t be a hostile or naked aggressor
b. Don’t be negative without a positive or better alternative
c. Better to be the victim
11. This is a Tactic, don’t get trapped.
12. Never, Ever let a negative go unanswered!!
Some rules may appear harsh or brutal on first reading, but business is not for the genteel. I am not an advocate of mean spirited or illegal activity. In fact, I abhor the divisive partisan tone that American politics has taken.
We would all be better served by winning ideas and innovation. However, not everyone shares that belief or is prepared to compete that way. These rules are for those times.
Good luck!
Kevin Hanft
Marketing Leverage LLC
During my stint in Competitive Marketing Analysis & Strategy, one of the agency resources had been part of the first Bill Clinton for President team. In discussions, he often related how alike political campaigns and competitive marketing were. For each winner there is a loser. Being the best candidate is not nearly enough. Good strategies, tactics, planning, preparation and timing are all essential.
On that basis we undertook the challenge of creating on a rapid assessment & response capability. The idea was to develop the capability to understand the other guy’s situation and strategy to the point one could anticipate and predict the likely marketplace moves available. And then have some prebuilt ideas, campaigns, attacks. Essentially we hoped to play Chess (multiple moves ahead), while the other guys played Checkers (one move at a time.)
The agency, brand and competitive folks on this team evolved a set of guidelines. While much of the responses were tactical, a strong and clear strategic orientation and perspective was critical. It is very easy to be drawn into a firefight, winning the battle and losing the war. The following rules help reinforce the big picture needed:
1. No flesh wounds! Go after vital organs.
a. Core values
b. Basis of their legitimacy
2. Not for the faint of heart. Don’t make a move unless you are willing to drive it to the end.
a. Anticipate and plan for responses
b. Keep playing chess; it’s easier in the long run.
c. Only fight on turf YOU want to fight on.
d. Make the other guy fight from his sewer
e. You always have the option to muddy the waters
3. Timing is key. Communicate when the attention is on you
a. Keep your powder dry until it is time to kill.
4. Always be credible. The best credibility is to use the other guy against himself
a. Specific facts trump broad generalizations
b. Is it Negative or Comparative? That is determined by the receiver
5. Above all, make sure you are newsworthy
6. Your foundation is the general or specific knowledge that exists in the marketplace
7. Get someone else to go negative first, if possible
a. Claim you were attacked
b. You are merely & simply forced to defend yourself….THEN STICK THE KNIFE IN & TWIST FIRMLY
8. You absolutely cannot make a mistake or be caught in a lie
9. All communication must empower the audience.
a. If they aren’t gaining power, YOU lose.
10. Create and maintain the air-cover of decency
a. Don’t be a hostile or naked aggressor
b. Don’t be negative without a positive or better alternative
c. Better to be the victim
11. This is a Tactic, don’t get trapped.
12. Never, Ever let a negative go unanswered!!
Some rules may appear harsh or brutal on first reading, but business is not for the genteel. I am not an advocate of mean spirited or illegal activity. In fact, I abhor the divisive partisan tone that American politics has taken.
We would all be better served by winning ideas and innovation. However, not everyone shares that belief or is prepared to compete that way. These rules are for those times.
Good luck!
Kevin Hanft
Marketing Leverage LLC
Tuesday, April 14, 2009
Funding Sponsorship Deals – Look Across the Board for Hidden Dollars
Most typically, corporate sponsorship deals are funded and managed within advertising, brand or corporate marketing and sales promotion organizations. With the current economic times requiring senior buy-in, full utilization and accountability, it may require internal advocates to find broad based support and budget resources.
Careful review of leveraging activities and assets may reveal untapped and hidden opportunities that are beyond marketing functions. There are many internal groups that have benefited from sponsorship deals (along with others who haven’t even been considered) and may not have been asked to provide funding.
Below are a few business functions and areas that Marketing Leverage LLC has worked with successfully in generating participation and support for sponsorship related activities. Some are obvious, others not so.
• Employee Relations –This group should be part of the matrix core team as they can be central in helping to evangelize the benefits of a sponsorship along with telling the business strategy and sell the business case value. In addition, internal communications teams are often seeking ‘good news’ stories and interesting & relevant content to share with employees. Many companies provide access to sponsorship assets (tickets, merchandise, etc.) at a discount as an employee perk. Several Olympic sponsors run internal contests with winners awarded working trips to the host country during Gamestime.
o Generally the financial budget for Employee Relations is limited, so don’t expect many hard dollars. However, they can be a major ally when buy-in or renewal is needed. Also, by creating a win-win relationship, they will be more likely to do an effective job on communicating sponsorship strategy, sell in and wrap up.
• Human Resources / Campus Recruiting – These groups are marketing the company as a brand, too. Sponsorship relationships can help contemporize and demonstrate coolness or relevancy to potential hires. Most companies have job fairs, on campus recruiting and advertising that can all be enhanced by fully leveraging relationships.
o HR does have funds available, so plan to have them kick in some towards the rights fees. But help them out by sharing sponsorship related created, signage, ads or exhibit structure. This will offset some of their operating costs and also ensure they follow a consistent look, feel and thematic.
• Corporate Education and Training - May be seeking corporate activities to align with and thematic to tap into. Many sponsorship deals lend themselves as creative ideas and provide an interesting structure for training programs.
o Like HR, Training likely will not have many funds available to contribute. Assume this group as another internal ally in leveraging the deal. This may require you to give more than you get. But helping to relieve expenses, ultimately benefits the company. Sharing of sponsorship related creative, logos, photos, identity etc. will enable them to follow a consistent look, feel and thematic and make your life easier.
• Health & Wellness – Many large corporations have groups dedicated to promoting healthy lifestyles. These groups run employment involvement activities and health education seminars that are all easily tied into any sports sponsorship.
o H&W usually doesn’t have many funds available.Plan to use this group as another ally in demonstrating a “full circle” integration of the deal, to the employee body and senior management. Appeal to the property to see if they have health education programs or information readily available that can be ported over.
• Corporate Social Investment / Philanthropy – These groups definitely have funds available, either through a foundation or direct corporate allocation for arts and charitable needs to demonstrate socially responsibility
o Many have specific rules on what they can fund. This may restrict their participation to charitable aspects of a property, etc. Sponsorship leaders will have to spend time understanding these parameters. Working closely with properties is required to structure deals that can tap these funds or align with property related philanthropic activity (i.e. NFL – United Way; FIFA – UNICEF)
• Environmental Outreach – Companies whose processes or plants impact the environment often align with conservation related organizations.
o Most have funds, but individual situations should be explored.
• Product Management / R&D Budgets – In many categories (technology, automotive, video games, etc.) product managers have funds set aside for early user trials or product launch. R&D may be interested in extreme situations that can fully stress out products under demanding circumstances.
o These may take the form of direct cash funds or value in kind contributions. Sponsorship managers will have to be smart in structuring deals with properties in selling the true value of the goods being provided.
• Retail Promotion – Consumer package goods often have ‘key retailer’ strategies with specific funding for in store promos. The retailers are always seeking unique and differentiating ideas. Clever and tight integration of a sponsorship into retail can be a major step forward in enhancing this relationship.
o Funds are definitely available!Retail promos are usually planned at least three quarters in advance, so early engagement is needed. Be aware of the sponsor agreement and ‘pass thru’ rights considerations.
• Sales Awards – Virtually every sponsor of a major property utilizes one or many events as an award platform for the sales team. It is aspirational, exclusive and typically provides access to senior management.
o Sales always has money, so don’t be shy or timid! Get them to pay for part of the property rights, not just their own hospitality costs.
• Channel Marketing / Affiliate Relations – Most corporations have an extended ecosystem of partners, vendors etc. Many are actively engaged in leveraging or benefiting from sponsorship deals. (MasterCard & Visa – issuing banks; auto makers – dealers; Large retailers - manufacturers)
o Like sales, this group has money,make sure they are appropriately funding the overall deal, plus their direct costs.
• Advertising and Media Budgets – These groups may have dollars already allocated for assets that are part of the sponsorship package -- ad or signage placements in a variety of media that are viewed as useful and valuable. The sponsorship may “be” the big idea of the ad campaign and include entitlements to celebrities that will be featured in creative.
o The media group may loath this conversation, fearing that you have agreed to undesirable, off-target spots or large financial commitments. Like with other groups, early engagement, inclusion and solicitation of input is recommended.
This exercise is not merely about seeking and finding internal funds. The days of the old “tin cup” routine, where advocates make the rounds looking for investors have long since passed. Strategic, smart use of sponsorship assets requires that the project leader look broadly across the company, educate people on the benefits and provide marketing consultation.
Identify any and all angles for potential benefit extraction. Think about every group of constituencies that somehow touch the business – customers, employees, suppliers, partners, investors, media, analysts, regulators, etc. All may provide opportunities for further leveraging of the property.
In many cases, the group cannot provide directly investible funding. But they may be in a position to build upon the investment in place – fees, activation programs, etc. – that provide cost avoidance in their budget. Be sure to quantify and track these. At final review or renewal time they provide further evidence of the value to the business – plus the strong and effective leadership you have provided.
Good luck!
Careful review of leveraging activities and assets may reveal untapped and hidden opportunities that are beyond marketing functions. There are many internal groups that have benefited from sponsorship deals (along with others who haven’t even been considered) and may not have been asked to provide funding.
Below are a few business functions and areas that Marketing Leverage LLC has worked with successfully in generating participation and support for sponsorship related activities. Some are obvious, others not so.
• Employee Relations –This group should be part of the matrix core team as they can be central in helping to evangelize the benefits of a sponsorship along with telling the business strategy and sell the business case value. In addition, internal communications teams are often seeking ‘good news’ stories and interesting & relevant content to share with employees. Many companies provide access to sponsorship assets (tickets, merchandise, etc.) at a discount as an employee perk. Several Olympic sponsors run internal contests with winners awarded working trips to the host country during Gamestime.
o Generally the financial budget for Employee Relations is limited, so don’t expect many hard dollars. However, they can be a major ally when buy-in or renewal is needed. Also, by creating a win-win relationship, they will be more likely to do an effective job on communicating sponsorship strategy, sell in and wrap up.
• Human Resources / Campus Recruiting – These groups are marketing the company as a brand, too. Sponsorship relationships can help contemporize and demonstrate coolness or relevancy to potential hires. Most companies have job fairs, on campus recruiting and advertising that can all be enhanced by fully leveraging relationships.
o HR does have funds available, so plan to have them kick in some towards the rights fees. But help them out by sharing sponsorship related created, signage, ads or exhibit structure. This will offset some of their operating costs and also ensure they follow a consistent look, feel and thematic.
• Corporate Education and Training - May be seeking corporate activities to align with and thematic to tap into. Many sponsorship deals lend themselves as creative ideas and provide an interesting structure for training programs.
o Like HR, Training likely will not have many funds available to contribute. Assume this group as another internal ally in leveraging the deal. This may require you to give more than you get. But helping to relieve expenses, ultimately benefits the company. Sharing of sponsorship related creative, logos, photos, identity etc. will enable them to follow a consistent look, feel and thematic and make your life easier.
• Health & Wellness – Many large corporations have groups dedicated to promoting healthy lifestyles. These groups run employment involvement activities and health education seminars that are all easily tied into any sports sponsorship.
o H&W usually doesn’t have many funds available.Plan to use this group as another ally in demonstrating a “full circle” integration of the deal, to the employee body and senior management. Appeal to the property to see if they have health education programs or information readily available that can be ported over.
• Corporate Social Investment / Philanthropy – These groups definitely have funds available, either through a foundation or direct corporate allocation for arts and charitable needs to demonstrate socially responsibility
o Many have specific rules on what they can fund. This may restrict their participation to charitable aspects of a property, etc. Sponsorship leaders will have to spend time understanding these parameters. Working closely with properties is required to structure deals that can tap these funds or align with property related philanthropic activity (i.e. NFL – United Way; FIFA – UNICEF)
• Environmental Outreach – Companies whose processes or plants impact the environment often align with conservation related organizations.
o Most have funds, but individual situations should be explored.
• Product Management / R&D Budgets – In many categories (technology, automotive, video games, etc.) product managers have funds set aside for early user trials or product launch. R&D may be interested in extreme situations that can fully stress out products under demanding circumstances.
o These may take the form of direct cash funds or value in kind contributions. Sponsorship managers will have to be smart in structuring deals with properties in selling the true value of the goods being provided.
• Retail Promotion – Consumer package goods often have ‘key retailer’ strategies with specific funding for in store promos. The retailers are always seeking unique and differentiating ideas. Clever and tight integration of a sponsorship into retail can be a major step forward in enhancing this relationship.
o Funds are definitely available!Retail promos are usually planned at least three quarters in advance, so early engagement is needed. Be aware of the sponsor agreement and ‘pass thru’ rights considerations.
• Sales Awards – Virtually every sponsor of a major property utilizes one or many events as an award platform for the sales team. It is aspirational, exclusive and typically provides access to senior management.
o Sales always has money, so don’t be shy or timid! Get them to pay for part of the property rights, not just their own hospitality costs.
• Channel Marketing / Affiliate Relations – Most corporations have an extended ecosystem of partners, vendors etc. Many are actively engaged in leveraging or benefiting from sponsorship deals. (MasterCard & Visa – issuing banks; auto makers – dealers; Large retailers - manufacturers)
o Like sales, this group has money,make sure they are appropriately funding the overall deal, plus their direct costs.
• Advertising and Media Budgets – These groups may have dollars already allocated for assets that are part of the sponsorship package -- ad or signage placements in a variety of media that are viewed as useful and valuable. The sponsorship may “be” the big idea of the ad campaign and include entitlements to celebrities that will be featured in creative.
o The media group may loath this conversation, fearing that you have agreed to undesirable, off-target spots or large financial commitments. Like with other groups, early engagement, inclusion and solicitation of input is recommended.
This exercise is not merely about seeking and finding internal funds. The days of the old “tin cup” routine, where advocates make the rounds looking for investors have long since passed. Strategic, smart use of sponsorship assets requires that the project leader look broadly across the company, educate people on the benefits and provide marketing consultation.
Identify any and all angles for potential benefit extraction. Think about every group of constituencies that somehow touch the business – customers, employees, suppliers, partners, investors, media, analysts, regulators, etc. All may provide opportunities for further leveraging of the property.
In many cases, the group cannot provide directly investible funding. But they may be in a position to build upon the investment in place – fees, activation programs, etc. – that provide cost avoidance in their budget. Be sure to quantify and track these. At final review or renewal time they provide further evidence of the value to the business – plus the strong and effective leadership you have provided.
Good luck!
Monday, April 6, 2009
Share of Voice – A Key Metric That Has Lost Its Place?
In the mid ‘90s I worked in competitive analysis for a market leader consumer services brand during an extremely active and aggressive period in the market. The business was led by a hyper kinetic guy who left no challenge unanswered and was always angling for a squabble. It was a great learning experience that reinforced the need for sound business and marketing strategy.
I was tracking the advertising and Mar-com for four major competitors. We were tasked with understanding the message, promotions, offers and target audiences. We also looked extensively at the media types, investment and share of voice, going to great expense to have a pretty accurate handle on the numbers.
Interestingly, the senior executives never warmed up to or really “GOT” the importance of the Share of Voice (SOV) or Share of Spending (SOS). They were most intrigued by the creative, give-aways and offers. Our team put together a terrific presentation on the correlation of Share of Voice to Share of Market (SOM); using a classic marketing science book entitled The Wheel of Marketing by James Peckham Sr.
Peckham had analyzed several hundred leading package goods brands from 1946 to 1975 while working for Nielsen Data Corp.
The key conclusions were:
• SOV/SOM is key; if not the best indicator of what level of media support is needed to drive share growth.
• 96% of leading brands that grew share maintained SOV/SOM ratios exceeding 100%
• There is a substantial lag effect resulting from SOV/SOM ratio changes and actual market share impacts.
• SOV/SOM must be sustained for a long period to drive share changes.
• The greater uniformity/equality that exists among the competition on the quality of advertising and brand benefits, the stronger the correlation of SOV/SOM.
• Brands with news or high growth categories get a better return on increased SOV/SOM ratio.
• The following circumstances require greater SOV/SOM ratio to grow share:
- New brands generally need a disproportionate ratio (150 to 200 indexes) to get a foothold and grow.
- Longer purchase cycles.
- New brands without a quality or equity difference.
• The theory of SOV/SOM ratio does not hold for the following situations:
- A major price change by one brand
- A brand pre-launch or significant new innovation
- Entry of a significant, dynamic brand
- Much more compelling message, copy or creative for one brand
- Dramatically poorer brand image or equity
The extensive data that backed these analyses won over the marketing staff to a more scientifically driven approach to the media plan and market analysis. To be clear, it was not easy or inexpensive to compile the data, especially in a highly active market. It was also challenging to apply CPG models to a services industry. Yet, it was very worth it as it moved the ‘non-marketing types’ who held important marketing roles away from their obsession on creative issues and allowed the professionals to run advertising and mar-com.
These days, with many more media forms and the fracturing of the marketplace and audiences, SOM calculation is even more challenging. However, for any brand that can isolate a target segment and media, this analysis can be very beneficial.
A couple of important learnings for me were that data and facts will always sway the discussion and that marketing is part science, along with an art form
I was tracking the advertising and Mar-com for four major competitors. We were tasked with understanding the message, promotions, offers and target audiences. We also looked extensively at the media types, investment and share of voice, going to great expense to have a pretty accurate handle on the numbers.
Interestingly, the senior executives never warmed up to or really “GOT” the importance of the Share of Voice (SOV) or Share of Spending (SOS). They were most intrigued by the creative, give-aways and offers. Our team put together a terrific presentation on the correlation of Share of Voice to Share of Market (SOM); using a classic marketing science book entitled The Wheel of Marketing by James Peckham Sr.
Peckham had analyzed several hundred leading package goods brands from 1946 to 1975 while working for Nielsen Data Corp.
The key conclusions were:
• SOV/SOM is key; if not the best indicator of what level of media support is needed to drive share growth.
• 96% of leading brands that grew share maintained SOV/SOM ratios exceeding 100%
• There is a substantial lag effect resulting from SOV/SOM ratio changes and actual market share impacts.
• SOV/SOM must be sustained for a long period to drive share changes.
• The greater uniformity/equality that exists among the competition on the quality of advertising and brand benefits, the stronger the correlation of SOV/SOM.
• Brands with news or high growth categories get a better return on increased SOV/SOM ratio.
• The following circumstances require greater SOV/SOM ratio to grow share:
- New brands generally need a disproportionate ratio (150 to 200 indexes) to get a foothold and grow.
- Longer purchase cycles.
- New brands without a quality or equity difference.
• The theory of SOV/SOM ratio does not hold for the following situations:
- A major price change by one brand
- A brand pre-launch or significant new innovation
- Entry of a significant, dynamic brand
- Much more compelling message, copy or creative for one brand
- Dramatically poorer brand image or equity
The extensive data that backed these analyses won over the marketing staff to a more scientifically driven approach to the media plan and market analysis. To be clear, it was not easy or inexpensive to compile the data, especially in a highly active market. It was also challenging to apply CPG models to a services industry. Yet, it was very worth it as it moved the ‘non-marketing types’ who held important marketing roles away from their obsession on creative issues and allowed the professionals to run advertising and mar-com.
These days, with many more media forms and the fracturing of the marketplace and audiences, SOM calculation is even more challenging. However, for any brand that can isolate a target segment and media, this analysis can be very beneficial.
A couple of important learnings for me were that data and facts will always sway the discussion and that marketing is part science, along with an art form
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