IN THIS ISSUE |
Editor's Cut |
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Q & A
George S. Day is the Geoffrey T. Boisi Professor, Professor of Marketing and co-Director of the Mack Center for Technological Innovation at the Wharton School, University of Pennsylvania. |
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In The Spotlight
Transforming your national/local marketing approach via digital media
By John Ellett |
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Feature Article
How B2B Stars Innovate – and Why Airlines Have Hit a Black Hole
By Lisa Nirell |
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NEW PROGRAM |
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CMO-CIO Alignment Imperative
The Chief Marketing Officer (CMO) Council and the Business Performance Innovation (BPI) Network, in partnership with Accenture, has launched a new campaign focused on critical alignment and partnership between the role of the CMO and the Chief Information Officer (CIO). The thought leadership initiative will delve into issues, challenges, and the wealth of opportunity that lies in the alignment of technology and marketing in order to deliver an optimized, relevant customer experience.
Download Report » |
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CMO SUMMIT 2010 |
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Cultural DNA Transformation To Take Center Stage at CMO Summit
The first speakers panel has been announced. The session will feature a keynote presentation by General Manager of Franke Kitchen Systems, Charles Lawrence, who has led a significant transformational program to increase “Market Sense-Ability” in his organization with the aim of becoming more agile, customer responsive and market sensitive. He will share insights on the collaborative journey with other C-level executives in helping to transform the cultural DNA of a company with strong European roots and a product-centered mindset. Joining Lawrence will be Lauren Flaherty, CMO of Juniper, Shail Khiyara, CMO of Taleo, and Frances Allen, Chief Marketing Officer of Denny’s Restaurants
Request invitation» |
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NEW PROGRAM |
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Doing Away With Foul Play in Sports Marketing
Aimed at helping to sensitize and alert brand sponsors and sports franchises to trademark trespassing, property rights violations and online scams, frauds and infringements, Doing Away With Foul Play In Sports Marketing is a CMO Council global thought leadership initiative leading up to the 2010 FIFA World Cup South Africa – which features sponsors like Adidas, Coca-Cola, Emirates Airlines, Sony, Visa, MTN, McDonalds, Castrol and Budweiser. This program will be sponsored by MarkMonitor, a world authority on enterprise brand protection and consultant to more than half of the Fortune 100.
Download Report » |
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RESOURCES |
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Big Brands Must Embrace Move to Mobile Relationship Marketing
As the most pervasive channel of communications and targeted engagement on the planet, the mobile phone reaches more than 5 billion users globally. The mobile channel is an unprecedented opportunity to reach both developed consumer markets in new an intrusive way, and developing regions that cater to a previously untapped, unreachable, and unbanked mass of humanity.
Download the Report »
CMO Council’s Talent Sourcing Center – Connecting Employers, Recruiters and Job Seekers
Employers and recruiters Browse resumes and only pay for the ones that interest you. Gain access to some of the best professionals in the field by posting a job opening.
Candidates Post your resume online – whether you're actively or passively seeking work, your online resume is your ticket to great job offers and anonymous options are available.
Find out more » |
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CMO Council Speaker’s Bureau – Connecting Experts With Events
The CMO Council Speakers Bureau helps CMO Council members and other marketing professionals find topline events and conferences to increase their visibility within the marketing industry. The Speakers Bureau also helps CMO Council partner associations and organziations locate experienced marketing professionals to keynote industry events and conferences, and assists CMO Council media and publication partners with locating subject matter experts to interview for print, Web, radio and television.
Sign up as a speaker » |
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NEW PROGRAM |
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What's Critical in the Vertical
The CMO Council, and its special interest network, the Customer Experience Board will look to extend its current thought leadership development with InfoPrint Solutions Company by taking the baseline learnings specific to customer engagement, retention and loyalty marketing, and consumer mandates for relevant valued communications to better map, define and understand the specific needs and requirements within targeted vertical industries.
Learn more » |
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NEW PROGRAM |
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GeoBranding Center
The CMO Council is furthering thought leadership and peer-level discussion in the area of GeoBranding with a new global knowledge center dedicated to the marketing of countries, destinations, places of origin, attractions, venues and locations worldwide. Subject matter experts and marketing leaders in the area of GeoBranding will be invited to join the conversation and contribute insights, content, opinions, case studies and best practices. A series of research initiatives will explore the impact, value and outcomes of GeoBranding campaigns using social media, digital marketing and traditional advertising channels and market interaction techniques.
Learn more » |
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READING |
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Strategy from the Outside In: Profiting From Customer Value
By George S. Day and Christine Moorman
 In Strategy from the Outside In, Day and Moorman explain that the key to lasting and highly profitable success is the ability to compete on and profit from customer value using the customer value imperatives.
Available from Amazon »
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UPCOMING EVENTS |
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European Marketing Dynamics Summit
October 27-28, 2010
Brussels, Belgium
The European Marketing Dynamics Summit (formerly the European TransPromo Summit) is an educational forum for marketers, advertisers, service providers, and vendors on cross-media direct marketing opportunities and strategies. The 2009 European TransPromo Summit was designed to educate attendees on the strategies, techniques and tools for fusing the traditional transaction document with marketing messages to enhance customer communications, improve customer retention, and increase revenue. The 2010 event will continue to focus on TransPromo and will become the first event in Europe to demonstrate how to integrate print, online, mobile and social media to deliver other interactive marketing campaigns that drive business results.
More information »
mobileSquared Roadshow: US
November 2, 2010
New York Academy of Sciences, New York
The mobileSQUARED Roadshow: US is an innovative one-day event covering the essential aspects of connecting with mobile consumers – relevant for brands, agencies, content providers, and mobile companies alike. The event brings together exclusive in-depth market and consumer research, combined with an unpredictable mix of speakers who lead in their fields, in a dynamic and interactive program. It’s about how to harness the one media device that connects to millions, and is always on and always in view.
- Focus on the key areas of Apps, WAP, Mobile Advertising and m-payments
- Short ‘how to’ practical guides(e.g. create the perfect mobile marketing campaign)
- Expert keynote presentations
- Exclusive case studies
- Strategy workshops in breakout groups
- Extended networking sessions
- Lively panel debates
Register»
Save 25% with discount code MSQUARED25.
Customer Experience
Exchange 2010
November 15 - 17, 2010
Le Méridien Beach Plaza,
Monte Carlo, Monaco
The Customer Experience Exchange is an invitation only forum designed for VPs and Directors of Customer Experience, Customer Service, Sales and Marketing, providing a unique opportunity for those driving strategic value across the business to delve deep into the world of customer experience. The exclusive Exchange format allows you to connect with those peers whose insights you respect most through exceptional networking, business meetings and strategic information sharing sessions - as well as hearing from the world's leading authorities on best practice and lessons learned.
Request your invitation »
MMA Mobile Marketing Forum 2010
November 17, 2010
Los Angeles, CA
Mobile Marketing is one of the fast growing marketing practices across a wide range of industries and market sectors, including: CPG, Financial Services, News and Sports, Automotive, Retail, QSR, Direct Response, Entertainment and more. While the growth trends are clear, there is a huge demand within each of these market sectors to better understand the appropriateness, best practices and practical implications of successful mobile marketing execution within each market sector. Hear and discuss more at the MMAF Los Angeles. The 2010 MMA Forum, Los Angeles is being held on Wednesday, November 17th with 8 pre-conference Workshops on Tuesday, November 16th just announced! The 2010 MMA Forum in Los Angeles is the ideal event to learn valuable insight and network with brands, agencies and retailers to begin or continue your journey in the mobile marketing channel.
For full events details and pricing click here. Register Now! »
Webinar: US Channels – 2010 Best Practices in Services Marketing
November 17th, 2010
Online
This one hour session will address the best practices and programs in services marketing offered by channel resellers ranging from independent office equipment dealers to imaging VARs and system integrators both in the US and Canada.
More information »
TWTRCON SF 2010
November 18th, 2010
Hotel Nikko – San Francisco, CA
Real-time tools are transforming business, government and non-profits. At TWTRCON SF 10 you'll see case studies and learn best practices from leading organizations that are using
the real-time web to deliver bottom-line results.
Hear case studies and learn best practices from leading organizations that are using the real-time web to deliver bottom-line results. Plus workshops on analytics, Twitter promotions and geo-location.
Register here »
Save 20% with discount code DVYN205!
The Customer Show MENA 2010
November 22-25, 2010
Dubai
The future of customer engagement is evolving in the Middle East. Your customers are becoming more demanding, increasingly price conscious and are empowered by the world of viral marketing. Building brand loyalty and delivering on a superior experience has never been more vital in retaining your most valuable asset – your customers! The Customer Show MENA 2010 is the MENA region’s only dedicated CRM event designed to bring together leading CRM experts, across all industries, for four days of high level networking and discussion. Learn first hand from leading brands in the region on their strategies for turning customer data into revenue opportunities, managing the customer lifecycle, implementing CRM architecture and maximizing all channels to acquire new and profitable customers.
Register here »
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FEATURED PROGRAM |
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Greater Innovation Through Closer Collaboration
The Business Performance Management (BPM) Forum and the Chief Marketing Officer (CMO) Council's Collaborate to Innovate has evaluated 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.
Download the report »
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JOIN THE CONVERSATION |
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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:
Nathan Gannon
CMO Council
mm_content@cmocouncil.org |
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10.08.10 cmo council and bpi network to partner with asia-pacific business and technology report
Leading Publisher and Affinity Networks to Further Knowledge Transfer and Insight Gathering in a Dynamic Regional Economy
Read More »
10.04.10 operational transformation needed to align marketing and it groups as companies seek competitive advantage in fast-changing digital world, finds study from cmo council and accenture
Research reveals opportunity for CMOs and CIOs to increase revenue by using digital marketing to enhance customer relevance, insight and personalized interaction
Read More »
10.03.10 cmo council to launch global study on mobile relationship marketing with mobile marketing association
"Engage at Every Stage" Initiative to Examine How Companies Can Improve Customer Loyalty, Listening and Value with Expanded Mobile Interaction
Read More » |
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 I write this month’s note as my team celebrates Halloween.
At this moment, there is an Ace Ventura attempting to wrap a cow with toilet paper like a mummy. Ben Roethlisberger is running away from a cat, and the (real) dog dressed in a San Jose Sharks jersey is stealing pizza from discarded plates. It is amazing how a mild mannered team of marketing program managers can change into cows, Starbucks baristas and even a Farmer in the Dell (computer box that is).
So, I guess it is fitting that this month’s Marketing Magnified theme centers on transformation. “Transformation” could easily be awarded “2010 Theme of the Year” status as recovery needed to evolve into more hopeful and intentional action. We can no longer wait to recover, hope for resurgence or pray for revival. No, we need action – intentional, unapologetic and planned action that can only be described as transformational!
In business, transformation typically comes out of necessity to recover or excel. The question is rarely SHOULD we transform or evolve, but instead how and where to begin. In marketing, transformation has been accelerated by the proliferation of digital channels, along with the advent of sophisticated operational platforms and tools.
When asked about transformation programs, some 75 percent of respondents in the 2010 Marketing Outlook survey indicated they were considering or engaged in some type of transformational project in an attempt to improve go-to-market effectiveness. Of this group, nearly half were undertaking some form of digital makeover, shifting platforms, programs or people as the world of marketing changes around them. More interesting will be seeing whether this marketing metamorphosis is a success.
Over the next month, we will be asking you to provide your insights and intentions in our fifth annual Marketing Outlook study. Each year, Marketing Outlook provides a snapshot of how marketing is fueling transformation and innovation. From how the marketing mix is modeled to where the next game-changing technology will most impact sales and marketing, Marketing Outlook relies on an in-the-trenches perspective to best understand the road to 2011. I encourage you to take part in this annual research and thank you in advance for sticking with what can be a long questionnaire.
So I will cut this month’s missive short as there are red velvet (ne, rebranded Blood Velvet for Halloween) cupcakes waiting, and this office can do without my transformation if I don’t get one of my very own!
Until next month,
Liz Miller
CMO Council
@lizkmiller on Twitter |
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George S. Day is the Geoffrey T. Boisi Professor, Professor of Marketing and co-Director of the Mack Center for Technological Innovation at the Wharton School, University of Pennsylvania.
 George S. Day is the Geoffrey T. Boisi Professor, Professor of Marketing and co-Director of the Mack Center for Technological Innovation at the Wharton School of the University of Pennsylvania. He has been a consultant to numerous corporations such as AT&T, Eastman Kodak, General Electric, IBM, Metropolitan Life, Marriott, Whirlpool Corporation, Molson Companies, Unilever, Boeing and Medtronic.
Where does marketing fit in the greater landscape of how business is evolving, and how is it changing?
The role of marketing is a general management responsibility that is all about driving customer value through to economic profit. So we make the link between customer value leadership and economic profit, but along the way the question is well, who’s accountable for that – both for customer value leadership as well as for innovating and decreeing new value for customers?
And the answer is that it should be the CMO, but more often than not, it is not that person. It tends to be diffused, and without clear accountability, the marketing perspective that we’re trying to advocate tends to fall between the cracks.
What is preventing marketers from effectively utilizing technology and digital marketing?
One problem area is just the sheer gap between the increasing complexity of markets and the vast volume of information that’s available. We call it the data deluge. Companies are just awash in data. Their markets are fragmenting every which way. There’s innumerable media and we can do microtargeting, so there’s microsegmentation, and the net effect is that marketers and their CIO counterparts are just buried in data. So that’s one problem.
The other is that organizations really have not kept up, so we have the functional product silos that get in the way. Everybody’s trying to run their own show, and that makes it very hard for a CMO to get the organization aligned. Big powerful product groups may want to do their own thing.
Have you seen effective silo-busters out there that are eliminating some of these key challenges?
The one [strategy] that I think is most interesting is what I call open marketing. This is where you shrink the core of marketing and bring in many more partners. It replaces the hierarchy with a network structure, so you’ve got network channel partners, you’ve got network content providers, and obviously you’ve must have a lot of expertise in SEO and those kinds of capabilities.
But many companies are not trying to build this in-house; they look to their agencies for help. So the interesting capability that marketing needs is to be able to orchestrate all of these. So obviously, the CIO now has to play a critical role in knowledge management.
What other factors are holding back marketing organizations from being more technologically and digitally adapt?
Increasingly, companies are going to say, “Talent is the biggest problem here.” I’ve talked to a lot of CMOs about this, and they really get energized when they talk about the talent drought. We have a devastating unemployment problem. There’s actually not that much good talent that understands the technology capabilities, or can put together web services, or do microtargeting. Those talents are in scarce supply, and companies need some of them, so one answer is to partner outside.
What actual changes can organizations make to improve their marketing operations and start real results?
A senior level mandate is probably a nice thing to have, but it’s not going to make anything align quickly. Instead, you have to take fairly substantial steps around organizational design and the model that a lot of companies are working towards, get the CMO and CIO together, and organize around market segments instead of around functions.
If everybody has their own incentive and the CIO is all about reliability and uptime, they’re not going to get too excited about helping the CMO drive customer satisfaction or net promoter score or speed of response or whatever. But if they’re all in a group incentive, as opposed to individual incentives, around things that really drive customer value, then you will get much better alignment. So the CEO or top management mandate won’t do much unless it’s followed up with some very concrete steps. |
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 Transforming your national/local marketing approach via digital media
By John Ellett
While the old political axiom that “all politics are local” may not be totally true for commerce (e-commerce being the obvious exception), local commerce is a critical issue for many national brands. Whether it is driving store traffic to retail, encouraging a visit to a nearby restaurant or linking a prospect with a local agent, connecting national brand-building efforts to local market activation is essential to the success of many companies.
With the evolution of new digital marketing capabilities, including social marketing, search marketing and mobile marketing, there are new opportunities and complexities that marketers should be factoring into their marketing operations. In a recent study by the CMO Council, only 38% of respondents said that their organizations were prepared to exploit digital marketing channels. It is time for brand marketers to embrace digital methods, and a great place to start is where brand awareness is converted into consumer action – at the local level.
Here are six areas that deserve immediate attention.
- Utilize a database for local marketing: Searches are increasingly being conducted on platforms other than Google. Looking for a good restaurant, try Urban Spoon, Yelp or Foursquare. Need a hotel room, let TripAdvisor recommend a few. Interested in seeing a movie, Fandango will steer you in the right direction. But keeping all the relevant sites updated with timely information can be a logistical nightmare. This can lead to either underutilizing productive options or adding staff to capitalize on the possibilities. Why not build a local data asset that can be managed either centrally or in a distributed manner and drive participation in local marketing promotions through that system?
- Amplify your local advocates: Without a doubt, your brand’s most powerful voices are those of your biggest fans. Why not give them megaphones to share their passion for your brand’s local presence? Encourage them to write reviews on sites that highlight local destinations. Let them offer comments on your local Web pages. Provide them offers that they can extend to their friends via email, check-in services or Facebook. Not sure who your advocates are? Ask them! Chili’s has built a database of over 400,000 passionate advocates by implementing a multi-faceted program to identify and enable its biggest fans.
- Enhance the location finder on your website: Today many marketers use simplistic maps provided by location finder plug-in services. The opportunity exists to migrate the location page from simple way-finding information to a more robust merchandising site for that location, including local events, limited offers and fan comments relevant to that specific venue. Since an increasing number of location searches are done on smart phones, make sure that this functionality is mobile-friendly. Comerica Bank has recently implemented this approach and is seeing positive benefits.
- Link your Facebook page to your location Facebook Places: For many marketers, Facebook has become an increasingly important destination for engaging customers. But today the APIs for managing the connection of your national Facebook page to your local venues doesn’t exist. That will be possible soon. Once the technical issue is resolved the management issue will need to be resolved. Will your local Facebook presence be managed centrally or delegated to local representatives or franchise partners? What guidelines will be established? Will you do the bare minimum or actively utilize the powerful consumer connections that the platform makes possible?
- Optimize search campaigns with localized landing pages: Once localized pages have been built for each destination, directing your PPC visitors to these pages can bring relevant information to the buyer and can encourage an immediate action. By having these pages optimized for search engines, you may improve the number of results presented to searchers and improve the quality of the information presented. Covad has had success with this approach by making the national service provider feel like a local neighbor.
- Empower your local representatives or franchise partners: For years, national marketers have provided local marketing tool kits that included ad slicks, direct mailers and point-of-sale materials. Some have recently added email templates and online display ads. If you don’t have a local marketing portal, you should build one. If you do have one, what about including training on leveraging social media, sample AdWords copy that has been proven successful or access to your new localized web pages?
National brands with local or field marketing needs have tremendous opportunities to innovate and test digital programs to accelerate their businesses’ success. But changes in how local digital programs are conceived, managed and monitored will be required. They can no longer be an afterthought. They should be planned with the same discipline and importance as national brand-building campaigns. What is the payback? Immediate sales activity at the local market level. And, after all, isn’t that the impact you are trying to make?
John Ellett is CEO and CMO of nFusion, a digital-centric marketing agency that partners with leading brands, including AMD, Chili's, Comerica Bank, Michelob Ultra, Nokia and Samsung. John also shares his insights on marketing at www.marketing-has-changed.com, on Twitter (@jellett) and in his upcoming book, A Marketing Leader's First 100 Days.
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 How B2B Stars Innovate – and Why Airlines Have Hit a Black Hole
By Lisa Nirell
A recent article in U.S. News & World Report disclosed that in 2010, airlines have generated $2.1 billion in additional passenger revenues through clever, and often egregious pricing strategies. If they had asked their customers for ways to make travel memorable again, would they have selected this strategy to grow revenues?
The "pay to breathe, walk or eat" pricing approach is rapidly eclipsing customer service in the airline industry, and customers like me are furious. Their nickel and dime strategies are earning them billions: Extra baggage fees comprised $600 million in additional revenues, while flight changes comprised another $900 million.
StarCite, a B2B technology company serving the travel industry, has charted a different course to fuel growth. I recently met with CEO Greg Dukat. He outlined a customer-centric growth strategy that challenges the airlines' approach, and will surely outlive it.
First, some background. StarCite, Inc. has developed a global, web-based technology platform that makes meeting and event management simpler and more cost-effective for corporations, hotels, venues and meeting suppliers. StarCite offers visibility, cost savings, and control over meeting spending for businesses. It also enhances revenue opportunities for suppliers. They automate every meeting planning step, including planning, payment and procurement. Today, corporate meeting buyers and associations can connect and conduct business with over 93,000 hotels, venues, destinations and suppliers.
Instead of using price increases as a growth strategy, Dukat and his team are listening to their industry members and travel association. Says Dukat:"More of our corporate customers wanted greater visibility into their travel spend. The corporations who use our solution will spend over $2 billion in corporate events. Last August, we partnered with the National Business Travel Association because more and more of our customers wanted clear standards and benchmarks on which to focus." This led to the successful launch of an entirely new certification program called the Strategic Meetings Management Program (SMMP).
Where were the airlines when Starcite was designing this program? If they were truly listening to business traveler customers, or cared about retaining customers, would they be so bold as to charge passengers for using the loo (as we've seen with Ryan Air)?
The secret to Starcite's success is neither the technical elegance of their solution, nor the huge capital infusion from equity partners. This certainly helped them build the foundation, but Dukat instead places a great deal of credit to their innovative culture.
Unlike most commercial airlines, Starcite continues to experience a steady stream of happy customers and high renewal rates. Even if you are not facing 30+% annual growth rates, consider how they foster innovation, and how you can apply this strategy in your business.
Dukat continues; "We have an abundance of ideas within Starcite and among our NBTA members. We have also scheduled two customer advisory panel meetings annually to gather input. The secret is how we filter those ideas quickly and act on the good ones."
Growth companies such as Starcite have an unusual and somewhat enviable challenge – they generate too many ideas, most of which seldom see the light of day. Here is the discussion guide they use to move their best ideas forward:
- What's the source of the idea?
- Has anyone generated this idea before us?
- If not, how can we use our customer advisory panel in this idea generation process?
- What do other industry leaders think of this innovation?
- Are there things we are doing within our internal operations that would help us refine this idea, and bring it to market sooner? Where can tribal knowledge help us?
- Once we choose how to proceed, how will we measure the success of what we have done?
- What else can we learn from this experience? Might this spawn other new product ideas?
Even when a customer cannot anticipate their future needs, Dukat argues that “it's all in the questioning. Open-ended questioning gets the dialog started and helps get outside the traditional box.”
Does this filtering process work? The proof is in the numbers. Within the past 19 months, Starcite has maintained a very high customer renewal rate, expanded its footprint within existing organizations, improved the quality of its customers' work flow, and reported strong profits.
Dukat summarizes: "In smaller high growth companies, there are not enough resources to go around. Focus on the actions that make a difference and do a good job of vetting them, and execute well. Be careful you don't keep adding to the list."
I hope the airlines are taking notes and adjusting the knobs on their control panel. Otherwise, their customer base and repute will fall into a black hole.
Copyright 2010, Lisa Nirell. All rights reserved.
Lisa Nirell is the Chief Energy Officer of EnergizeGrowth®. She is one of the only marketing experts with 27 years' experience advising and working exclusively with B2B growth companies. Lisa helps her clients improve their top line revenues and attract more ideal clients. Lisa has worked with hundreds of entrepreneurs, as well as BMC Software, Sony, Wells Fargo, Microsoft, and IBM. She is also the author of EnergizeGrowth® NOW: The Marketing Guide to a Wealthy Company. Visit www.energizegrowth.com and http://blog.energizegrowth.com today to download free educational resources and join the Energize News community. |
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