Marketing Magnified

IN THIS ISSUE

Editor's Cut
Marketing Supply Chains

Q&A
Kim Skildum-Reid, Author and Sponsorship Strategist, Power Sponsorship

Q&A
Robert Siciliano, Author, Professional Speaker, CEO of IDTheftSecurity.com

Feature Article
Print is NOT Dead – It is Interactive!
By Barb Pellow, WhatTheyThink.com

FEATURED PROGRAM

Getting A Business Lift From Loyalty

For over 100 years, loyalty programs have attempted to secure consumer wallet-share by providing incentives for repeat business and rewards for retained relationships. Getting a Business Lift from Loyalty will audit and assess the operation and innovation in loyalty club programs, the value and utilization of customer data to drive response rates and revenue, and the mobilization of loyalty club members as active agents and advocates for acquiring new or repeat business

Learn more »

NEW REPORT

Service Invention to Increase Retention

Competitive crunch and convergence in the $1 trilling dollar global communications marketplace is fueling increased customer churn, and testing customer loyalty. Marketers are facing unprecedented challenges in building loyalty and retaining customers as cut-throat competition and new service models undercut pricing, prey on lucrative customers and disrupt established markets. The industry study – Service Invention to Increase Retention – benchmarks how the communications industry is responding to interactive digital media channels, social networks, mobile messaging devices and online communities, leaving companies scrambling to retain subscribers, induce loyalty, improve customer satisfaction, and

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MARKET INSIGHT

Bringing Social Security to the Online Community

With the increased use of social media and Web 2.0 applications there are more opportunities than ever before to spread malware, steal identities, and perpetrate fraud. The growing popularity of social networking and community sites enable high levels of interaction between users through blogs, content sharing, RSS feeds, file sharing, podcasts and other technologies. This opens the door for employees and community users to inadvertently become infected and more disturbingly could lead to a loss of highly confidential intellectual property. This online survey conducted by AVG and the CMO Council reveals that while the social networking community has serious concerns about the overall security of public spaces, few are taking the most basic of steps to protect themselves against online crimes.

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FEATURED PROGRAM

Collaborate To Innovate

The Business Performance Management (BPM) Forum and the Chief Marketing Officer (CMO) Council's Collaborate to Innovate is set to evaluate the state of multi-enterprise collaboration and innovation among global businesses and leverage insights from leading business and IT executives to explore how companies can better harvest the potential of business collaboration networks to improve customer satisfaction and overall performance.

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READING

The Integration Imperative: Erasing Marketing and Business Development Silos - Once and For All - In Professional Services
By Suzanne Lowe

When it comes to competing effectively, achieving financial success and delivering optimal client service, professional and B2B firms keep looking for the Holy Grail in all the wrong places: "Hire big-time rainmakers!" "Acquire that hot boutique firm!" Pursuing these solutions avoids the real problem: Marketing and selling are disconnected. The real Holy Grail can be found by ensuring that marketing and business development are integrated into every function. The Integration Imperative summarizes three structural and cultural frameworks that professional- and B2B service firms can employ to achieve new effectiveness in marketing and business development, and ultimately, improve the firm's value to clients.

Available from Amazon »

The Ambush Marketing Toolkit
By Kim Skildum-Reid

Make the most of ambush marketing. There is a myth that it's only major sponsors of huge events that get ambushed. The truth is that ambush marketing goes on at all levels of the sponsorship industry, from small charities to industry associations, festivals and the Soccer World Cup. In a world first, bestselling author Kim Skildum-Reid puts her more than 20 years of sponsorship marketing experience into the topic of ambush marketing. "The Ambush Marketing Toolkit" (with accompanying CD) provides sponsors, events, and prospective ambushers with a no holds barred, strategic approach to ambush prevention and the mounting of a successful ambush.

Available from Amazon »

FEATURED PROGRAM

Pause To Support A Cause

Pause to Support a Cause, a milestone CMO Council campaign, will enjoin global corporations and public sector partners in a new initiative to “survey the socially beneficial way” by “donating on behalf of those participating” in funded market research programs around the world. This corporate social responsibility campaign will use a portion of the $18.9 billion spent on market research worldwide to create a global community of non-profit champions, boosters, supporters and members willing to take part in online surveys as a way to channel funds to their designated causes, charities, foundations and non-profit organizations of choice.

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UPCOMING EVENTS

Global Customer Experience Management (CEM) Certification Program
September 30-October 1, 2009
Paris, France
The program is developed and co-delivered by 15 G-CEM International Partners from North America, Europe and Asia. Endorsed by 9 leading authorities, it is the only internationally recognized CEM certification program continuously running and expanding in different parts of the world. The 2-day course offers a structured framework combining time-tested theories, universally applied principles and practical methods and tools with a winning approach to kick start your CEM. Learn more »

Econsultancy’s Peer Summit: Online strategies explored, explained and shared
October 8, 2009
New York, NY
Responsible for your organization’s online marketing? If so, you are invited to attend Econsultancy’s Peer Summit, a free, invitation-only roundtable event exclusively for client-side marketers. Discuss and explore the latest best practices on e-marketing procurement, business cases, investment, ROI and supplier selection with your peers. Three keynotes from industry leaders and three roundtables on your choice of topic ensure you get maximum learning in one day. Learn more »

CMO Council Middle East Advisory Board Meeting
October 13-14, 2009
Dubai, United Arab Emirates
Delivering a well-researched program made specifically for top level marketing executives, together with their key PR and communications people, CMO Middle East will hone in on the key marketing and customer retention strategies for the current financial climate. Best of breed solution providers will offer private consulting sessions and industry experts from all over the world will share how they are successfully coping with issues that are also crucial to the Middle East. Learn more »

American Banker’s 7th Annual Financial Services Marketing Symposium
October 15, 2009
New York, NY
The “same old” approach simply isn’t going to work anymore. It’s time for something new. Attend American Banker’s 7th Annual Financial Services Marketing Symposium on October 15, 2009 at the Marriott Downtown in New York City. Spend one full day with industry experts from Best Buy, Capital One, Key Bank, TD Bank and more. CMO Council members save $100 off the current rates. Learn more »

NEW REPORT

Losing Loyalty: The Consumer Defection Dilemma

Consumer defection and lapsed loyalty are rampant among major consumer packaged goods brands, a problem that is only worsening in the current recession. A new study by the CMO Council, conducted with Catalina Marketing's Pointer Media Network, provides the most comprehensive and detailed analysis ever undertaken of the defection dilemma among CPG brands. The study has major implications for marketers and underscores the critical need for brands to more effectively engage with individual consumers by tracking their loyalty behavior and responding with relevant communications and offers.

Download report »

JOIN THE CONVERSATION

If you would like to submit an article or recommend one, please follow these guidelines:

  • Maximum 1,000 words
  • Microsoft Word format
  • Use Arial typeface
  • Appropriate Content for Executive Level Audience
  • Marketing-Related Content

Send your submission as an email attachment to:
Netty Devonshire
CMO Council
mm_content@cmocouncil.org

09.14.09 Non-Profits Benefit From New "Pause To Support A Cause" Campaign That Ties Donation To Research Chief Marketing Officer (CMO) Council leads corporate initiative to raise funds for global charities by making contributions on behalf of individual respondents completing market research surveys, studies and feedback audits. Read more » 08.26.09 Social Networking Poll Shows Users More Vulnerable Than Ever AVG and CMO Council survey shows that the widespread and growing use of social networks at home and work is creating serious danger of web-borne identity theft and infection. Read more »

EDITOR'S CUT

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Hello from the shores of Lake Geneva. I have just finished announcing the launch of the CMO Council’s Pause to Support a Cause campaign to one of the ruling bodies in market research, the 2009 ESOMAR Congress.

A daunting task, but an exciting, nerve wracking and once in a lifetime one to be sure. Pause has taken flight and we couldn’t be more pleased with the reception we have received from marketers and consumers alike. For those of you who have not had a chance to learn more about this initiative, I invite you to log on to www.surveyforgood.org to learn how the CMO Council will join marketers, consumers and incredible non-profit organizations for a new option in market insight and research.

As we talk about how we procure research, I must also touch upon an initiative that we are currently working on, namely the Define Where to Streamline report that will come from the Marketing Supply Chain Institute. This benchmark will start the process of mapping, measuring and optimizing the marketing supply chain, starting with an area of spend that, for many of us, can grow to out-of-control proportions.

The marketing consumable supply chain consists of print, promotional and point of sale materials that are often purchased through multiple vendors, stored in multiple locations, shipped from multiple locations and left to sit and become obsolete in, yes, multiple locations. Every location, every shipment, every obsolete item takes a toll on our bottom line. The real challenge here is that there are often hidden costs and line items that lie outside of marketing’s traditional view. For example, how many of us include warehousing and staff support to pick, pull and ship our marketing materials? Are we including the cost of obsolescence in our budget?

Years ago, when I worked in sports, part of my job included the management of all printed materials for the organization. When materials were deemed out of date, they were sent to Room 110 in the basement. Trips to the room included specific instructions like before entering the room, stomp loudly and make lots of noise so that any mice in the room would run and hide because, after all, they are more afraid of you! And so the material would sit, often times being reordered by accident, waiting for the next unsuspecting intern to be sent down to get their first taste of Room 110. Had we tracked, measured and monitored obsolescence, we might have deemed this room an unnecessary overhead because we wouldn’t have over ordered, wouldn’t continue to order and would just eliminate the obsolete material to being with!

In this edition of Marketing Magnified, we have gathered information that will start the conversation around the marketing supply chain. From its management to its evolution, this will be an ongoing discussion with the CMO Council as we look to define and streamline this growing and increasingly complex web of print, digital, talent and creative assets. And be sure to be on the lookout for the upcoming report. It will include case studies of companies who have engaged in an intensive mapping and audit of their existing supply chain, including the opportunities for significant savings totaling up to 20% of their total spend.

Thanks to all who have already joined the corporate boosters of Pause. If you want more information about how to get involved, get in touch! The more the merrier!

Until next month.

Liz Miller
VP, Programs and Operations
CMO Council

Q&A

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Kim Skildum-Reid is a corporate sponsorship strategist, trainer, coach and writer with 24 years experience and a blue-chip client list from around the globe including Target Corporation, Walt Disney Company, Qantas, Mazda and many more. Kim is also the co-author of two of the world’s bestselling sponsorship books, The Sponsor’s Toolkit and The Sponsorship Seeker’s Toolkit, plus The Ambush Marketing Toolkit.

Tell us about your background in sponsorship.

I have been in Australia for 17 years, working with major corporations from many countries including the U.S. and Europe, South Africa, Australia, New Zealand, the Middle East and Asia.   I’ve worked for a number of Fortune 500 companies on sponsorships of some of America’s biggest events, concert tours, and sporting organizations.  I’m also a public speaker, media commentator and author.

What challenges do you face when working with events and clients in different regions, as you have a global business based out of Australia?

I need to use technology to be in a lot of places at once, and provide a lot of my services using technology rather than getting on a plane.  Of course, getting on a plane is always going to be part of the gig, but it doesn’t have to apply to every single job.

How is sponsorship changing in today’s marketing environment?

The principle that applies to all the recent best practice examples is that sponsorship is no longer win/win, meaning that is the sponsor wins and the sponsorship seeker wins. It is actually win/win/win. The third win is that your target market wins a meaningful benefit. Ten years ago, that meaningful benefit would have been 45,000 disposable visors being handed out at a football game or another meaningless throwaway. Now we’re providing things that are more meaningful. There aren’t boxes full of gear being handed out at these events any more.

We’re using technology, reusable techniques and also providing functional and emotional benefits. It isn’t about creating more new materials. It’s thinking about the experience and creating connections where people can have their experience enhanced, either by taking away the bad elements or amplifying the good elements.

How are you seeing marketers using a sustainable or “green” approach with their sponsorship efforts?

Reusable materials are a major trend – one of the best examples I’ve seen is Vodafone in Australia. They sponsor outdoor movie events and realized that people who came to the events were generally taking public transport or a taxi to get there. They realized that these people then had to carry their blankets and pillows to dinner afterwards, which was annoying. So they offered Vodafone customers a great perk. When guests entered the venue, they could show their phones and confirm that they were Vodafone customers and borrow a large branded floor cushion for the evening.

It’s a meaningful benefit. Their needs have been thought of and are being met, but it is something that is incredibly sustainable and sends a positive branding message. Those pillows are stored after each event and used again the next night, lasting the whole season.

Tell us about your book, The Ambush Marketing Toolkit, which received some shock reactions.

Ambush marketing is a very controversial subject and there are a lot of people who think that it’s clever, free or cheap. There are plenty of positive, cheeky things about it and then there are those who consider it unethical and immoral, calling it “parasite marketing”. But it’s not about sneaking your logo into games because that doesn’t give any more benefit to your brand than it does when a sponsor just plasters their logos on stuff, which has zero benefit. That concept is 20 years out of date.

The first half of the book is a real peek behind the curtain; then it goes through the specific strategies that you need to embark upon in order to ensure that you do not get ambushed. I took a very objective view and most of the reviews came out saying words to the effect of “We wanted to hate this book, but we didn’t”. Once people realized that I was shedding light on a very real topic, there was a lot of interest in it.

What is the most satisfying part of your work?
I love the light bulb moments.  It’s when you have a client or a room full of people that you’re training and all of a sudden the penny drops and they realize the incredible power of doing sponsorship well and simultaneously realize that it’s really not that hard.  Suddenly it’s like the door opens and what they’re able to do from then is extraordinary.  At that point, I can assist with the process.  I can support the process, but they’ve got it.  They know what to do.

Looking towards the future for the next year or two, what are your goals?

In the next year I think that a lot of sponsors are going to be loosening up their budgets and I’m seeing that already.  But they’re still realizing the importance of really being extremely shrewd and very strategic in what they do.  Ad hoc is just not going to cut it anymore and self-congratulatory, press release-generating sponsorships have no marketing benefit.  It certainly looks like this next year is going to be full of a lot of corporate consulting in the area of re-expanding portfolios in a highly strategic way.

Do you have any key recommendations for marketers undertaking complex sponsorship plans?

It’s important to remember that your job as a sponsor is not to connect with the event.  It’s not to connect with the team, the cause, the venue, your event partner or anything else. Your job is to connect with your target market.  That partner is just a conduit to help you to connect with them in a meaningful way.

Your job is to respect your target market’s event experience, not to diminish it in any way and to add value to that – not interrupting their experience, but being an invited, welcome, enjoyed and advocated partner in that experience.

Read Kim’s latest blog entry at: http://blog.powersponsorship.com/index.php/2009/09/12-steps-a-sponsors-guide-to-the-recovery/

Q&A

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Robert Siciliano is an expert on personal security and identity theft with 25 years of experience. He is a television news correspondent, security analyst and author of ‘The Safety Minute’. He also runs numerous workshops for industry professionals on identity theft protection and security and is considered the security expert in the business and marketing arena.

How did you start working with identity theft?

I have been involved in personal security for over 20 years and got involved in information security as it pertains to identity theft prevention when my own business was hacked in the mid 90s.  Shortly after seeing just how vulnerable we were in regards to information security and credit card hacks, a friend had her identity stolen. 

In the late 90s identity theft wasn’t something that most people were aware of including myself.  But I learned very early on that identity theft was going to be a massive issue – it’s a tough crime to prosecute and identity thieves can make a substantial amount of money doing it.  Individuals and businesses all over the world stand to lose so much if it’s not carefully controlled.

How have you worked with the marketing community to raise awareness of security issues?

Earlier this year, I reviewed and promoted a survey and report by the CMO Council, Protection from Brand Infection, which reinforced my involvement with the marketing industry. I’ve always marketed security itself, so it the progression made sense to me.  As a result, I’ve worked very effectively with marketers in that respect over the years. In the mid 90s I saw the value of the internet and search engines to marketers and I’ve educated marketers on how they can optimize their security efforts both online and within all their marketing practices.

How prevalent are security breaches in marketing environments, such as the hijacking of personal information being from databases?

Just recently, there was breaking news of the largest identity theft breach ever; 130 million credit card customer’s details and data were stolen. Data breaching is a common security issue that is not going to go away.  And unfortunately it’s not going to get any better any time soon; it’s going to keep getting worse.  That said, if you are an entity that houses data that is of any value to criminal hackers that could be turned into money you need to be doing anything and everything to make sure that the data is protected, especially if it’s social security numbers, credit card information, any type of account numbers that criminals can turn into cash. 

And as criminal hackers have changed their motivation over the years from seeking fame to now seeking fortune, information that we have on our networks can easily be turned into valuable commodities today. 

How can companies avoid security threats when using social media to communicate with their audience?

There are a number of issues that come up in regards to social media, and one of them, of course is protecting your brand.  We’ve seen many different brands that didn’t respond in to customer service issues, then the consumer made a YouTube video or posted on Facebook or Twitter about it.  That’s one aspect of social media that we need to be concerned about. 

Another one is social media identity theft, where you have people cyber-squatting.  They’re getting your Twitter name; they’re getting your Facebook name.  They’re getting all of the information out there in social media that pertains to your brand, and in many cases, they’re posing as your brand.  They may use your logo.  They may post as you.  They may blog as you.  They literally can damage your brand simply by having that presence and writing about you.

In many cases, cyber-squatters will hold on to domain names to prevent you from acquiring them, hoping for a big pay off when you come asking for it.  I would suggest that you purchase not only your brand name’s website, but also any potentially negative domain names (for example, www.[brand] sucks.com), and do the same on other social media forums.

What industry programs and companies are you affiliated with to fight fraud?

I am currently working with a number of different non-profits and for-profit organizations.  Slam the Online Scam (with the CMO Council) is pooling industry resources to educate the masses and industry about the value of boosting their brand via security issues.  Obviously it’s very important today – consumers are paying close attention.  And if they see that you’re lax in your security or you’re part of the daily data breaches, then they may very well go somewhere else. 

I’m also working with antivirus company McAfee to promote consumer awareness around their family protection, information broker Intelius to assist with their background checks and identity theft protection strategies and Uniball as the corporate spokesperson for their anti-check washing pens.

FEATURE ARTICLE

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Print is NOT Dead – It is Interactive!
By Barb Pellow for WhatTheyThink.com

With the increased focus on interactivity and multi-channel communications, marketers want to integrate online media with documents to enable a cohesive and unified marketing tool. At the same time, however, fully executing these multi-channel programs is often elusive. Although technologies like text messaging, short message codes, and PURLs are seen as promising, they lack a quick, precise, elegant encoding system to efficiently transport the recipient from paper to an online experience.

Marketers are beginning to explore QR (Quick Response) codes as the ultimate answer. A QR code is a high-density barcode readable by cell phones and simple PC cams. Recipients can quickly and easily interact with the QR-enabled documents they receive. By simply pointing their camera at the QR symbol, they are instantly connected to a QR-encoded Web page without ever having to remember or type in numbers and promotional codes—they just point and shoot.

On Wednesday, May 20, 2009, I opened the USA Today that was dropped off at my hotel room. The business section featured two start-up companies that are dedicating their businesses to QR codes. The first was ScanLife. Founded in 2000, ScanLife is dedicated to making QR barcodes a mainstay of the modern experience. ScanLife requires a Web-enabled phone and works on 400 different combinations of handsets and phone plans. Individuals can use their phones to download the free application from www.getscanlife.com, then use that application to scan ScanLife barcodes. The application opens the individual’s mobile browser and connects him/her to a designated Web link. ScanLife also enables consumers to create personal bar codes tied to Web links of their choosing. Teenagers can have a barcode linked to their Facebook page taped on a dorm room wall or silkscreened on a t-shirt. This will make QR codes viral.

The other company that was featured was Jagtag. Jagtag doesn’t require a Web-enabled phone—anyone using a Verizon or AT&T phone camera phone with text messaging can access the content. The consumer takes a photo of the tag and then sends it to 524824. If the person is an iPhone user, the code is mailed to iphone@jagtag.net. In response, the user receives a picture message that may contain an image, video, or audio.

QR Codes… It’s Time to Think Hard about the Possibilities!
Already a big part of mobile culture in Japan and Korea, it is not uncommon to see a QR code in a magazine, on a poster, or even online. More than 40% of mobile users in Japan regularly use their mobile phones to scan QR codes in advertisements. In fact, a lot of mobile phones in Japan come preloaded with the application required to scan such codes.

As mobile technology advances, it is time to imagine the possibilities and the ability to integrate print with smartphones. InfoTrends projects that 89% of new mobile phones shipped in the U.S this year will have cameras. Scanning a QR code with a camera-embedded smartphone will enable users to access Web sites and get real-time information. Using QR codes, business transactions can take place anywhere—users can download information from a movie poster while standing at a bus stop, access a Web site while reading an advertisement in a newspaper, or view a listing and take a virtual tour after coming across a home for sale.

Reality is Beginning to Set In
While the U.S. is off to a slow start, there are some “real world” examples and practical applications that effectively leverage print and mobile technology. It’s time to look at the multi-channel market and print differently.

During last year’s U.S. Open, Ralph Lauren introduced QR codes into its print ads, direct mailers, and store windows to send traffic to its new mobile commerce site. When scanned with a mobile phone with QR software, the codes directed the phone’s browser to a Web site where the consumer could shop for RL products.

The short-run label market represents a tremendous opportunity for QR codes and promotions. Coca-Cola Japan is giving away free bottles of its two new teas with a QR code promotion. Coca-Cola Japan sells a lot of bottled tea and many cans of coffee. Consumers who see the advertisement (example picture below) can snap the QR code with their mobile device, then bring their mobile device to a vending machine to obtain the free tea. The vending machine recognizes the scanned coupon as payment. (Consumers can pay vending machines with their cell phones in Japan, and these machines have built-in cameras.)

QR codes transform packages into multi-channel documents, and the applications and opportunities are limitless. In another example, two Portuguese wineries are using QR codes and labels to build out a social network called Adegga. This is an online community of wine lovers that dubs itself a "social wine discovery" service. Consumers that scan a QR code on a wine label will be taken to a special page on adegga.com dedicated to that particular wine. They can read other people’s comments about it, check prices, and read comments from the winemaker.

Printed maps are using QR codes to better guide tourists. The Regional Tourism Promotion Council for the Japanese prefectures of Iwate and Akita has produced a tourist map with QR codes. This is an area of mountains, rivers, and forests with many naturally occurring hot springs, temples, and historical sites. The QR codes provide a link to a mobile Web site where the user can select a particular interest (e.g., history, accommodations, temples, museums), and a Google Map is displayed with the relevant locations highlighted.

Canada’s National Post, a 200,000 circulation daily newspaper, has begun placing ScanLife codes on some print stories so readers can use their handsets to follow developing news coverage from the newspaper’s Web site.

What Does All this Mean?
The USA Today article that I came across provides evidence that QR codes have a place in the U.S. market. I firmly believe that the marriage of print, QR codes, and mobile technology are the ultimate in multi-channel communications. While some are running away from print and putting all their eggs in the online basket, savvy marketers will consider going offline and getting their BRAND in front of the consumers on the street. They will reach consumers who are unchained from their home computers and connect with them via signage, packaging, interactive magazines and newspapers, catalogs, and direct mail. Graphic communications service providers need to realize that print is not dead… it is interactive!

Copyright © 2009 WhatTheyThink. 
www.whattheythink.com

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