Change or Die ANA Magazine - Marketing2020 story

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  • 1.16 | Fall 2013 ANA Change

2. ANA Magazine Fall 2013 | 17 ANA and its partners in the World Federation of Ad- vertisers have sponsored an ambitious initiative called Marketing 2020, an unprecedented effort to leverage the insights and experience of thousands of the most successful global chief marketing leaders, brand managers, agency heads, and others, across the U.S., Europe, Asia, and Latin America. The goal is to help marketers gain clarity 20/20 vision, as it were as they steer their organizations through a transformative era, when buzzwords like social, transparency, and big data have be- come business imperatives, and marketers increas- ingly find themselves pushed into the drivers seat to guide their companys growth strategies. There really seems to be a paradigm shift, ex- plains Marc de Swaan Arons, founder of Effective- Brands, a global marketing strategy consulting firm that is leading Marketing 2020. Given the dramatic increase in focus on digital and social marketing, the world has now changed sufficiently for marketing leaders to take a step back and say, What are we do- ing to grow the organization, and how are we struc- tured for that? So many times in marketing we get so focused on discussions about things like brands and social media that we fail to realize were all in business to generate incremental growth for our respective com- panies, says Bob Liodice, president and CEO of the ANA. We fail to ask, Does my staff have the ap- propriate skills to compete effectively in todays envi- ronment? Are we organized in the right way to take advantage of the opportunities before us? The good news? A clear picture is emerging of what the successful marketing organization of the fu- ture will look like. Read on for a look at some of the trends shaping BY CHUCK KAPELKE Focusing marketing strategy, structure, and capabilities for 21st-century growth Die What will it take to be a winning marketing organization in the year 2020, and how can marketing best focus and organize to support business growth in the decade to come? To answer these questions, the or 3. the future, along with tips that your company can use today to set up the right strategy, structure, and capabilities to grow during this dynamic period. Setting Business Goals Early results from Marketing 2020 survey data sug- gest that todays overperformers (companies that are currently outper- forming their peers) are far more likely to have marketing organizations that are explicitly aligned toward a clear strategy. Just knowing what your strategy is turns out to be a major differentiator, de Swaan Arons says. When we asked CMOs to tell us their key performance indicators [KPI], their number one answer is business growth. Ask Joe Tripodi, executive vice president and chief marketing and commercial officer at The Coca-Cola Company, about the top prior- ity for his marketing organization, and he does not waver: The marketing function needs to be leading the growth agenda for the company, he says. We have a companywide big hairy audacious goal of doubling our sales between 2010 and 2020. Were trying to double in 10 years what it took us 120 years to achieve. Yet Tripodi also understands that measur- ing financial growth alone is not enough. Id like to redefine EPS from earnings per share to economic value, partner value, and social value, he says. Those companies that are ruthlessly focused on earnings will be left by the wayside. Its not just what you sell, its what you stand for. What You Can Do While it can be tempting to set a strategy based on ramping up clicks, likes, and retweets, the key is to focus on business goals first. Work with your marketing team as well as the CEO, CFO, and others to clearly define the com- panys business objectives and purpose, and show the role that marketing can play through your abilities to engage a growing global com- munity of passionate fans. Defining a Clear Purpose Seventy-three percent of the marketing leaders interviewed for the Marketing 2020 survey agree that being clear about the companys (or brands) broader societal purpose will be an im- portant characteristic of winning companies in the coming years. We need to move beyond seeing people as a head of hair in search of benefits or a pair of armpits to be deodorized, to real people with real lives, and focus on how we serve them, says Keith Weed, chief marketing and communications officer at Unilever, who chairs the Marketing 2020 Advisory Board. Marketing got lost in the mad consumption- at-any-cost years. What were doing ... is making marketing noble again. Marketers should lead the way in connecting (or reconnecting) their brands to a societal pur- pose, something that can serve as a lodestar for new products or services that can help grow the business. Think of Nikes FuelBand, which tracks users movements throughout the day. The band makes sense within the companys product line because the Nike brand is not about shoes; its about unleashing the athlete in all of us. What insight do you have about your con- sumers, what is your purpose as a company, and how can you deliver a total experience? de Swaan Arons asks. We find that every success- ful global brand understands perfectly every- where in the organization what universal truth theyre appealing to. If thats not the case, youre in trouble. What You Can Do Find and define your brands purpose, if you havent already. For some, this can be as sim- ple as rereading your companys founding documents and discovering roots that were lost over time. Another approach is to use con- sumer research and turn a nugget of insight into opportunities to deliver a total brand ex- perience. A well-known example is Doves Real Beauty campaign: Unilevers marketers latched on to research showing low self-esteem rates among young women; from there, they redefined what the brand stood for by rolling out a global campaign to boost how people feel about their appearance. Inspiring and Aligning Survey data from Marketing 2020 confirms over- performing companies are more likely than their 18 | Fall 2013 ANA Magazine KEYINSIGHTS Business growth is the top priority for most CMOs. Its no longer just what you sell, its what you stand for. The brand must be woven into the companys fabric. Customer-centricity should not be ignored. Using data for strategic insights is proving to be a powerful differentiator. Balancing the tension of global and local brands is a new necessity. Tomorrows CMO must be able to influence the CEO, the CFO, and IT. STRATEGY 4. 20 | Fall 2013 ANA Magazine FIVE WAYS TO DELIVER GLOBAL MARKETING TO HELP COMPANIES build a global marketing organization, EffectiveBrands has developed a framework that captures the characteristics of a winning global brand strategy the universal truth, purposeful positioning, and total experience and the how that will help align the organization itself. A winning marketing organization can build on these characteris- tics to deliver the brand around the world, says Kimberly Orton, partner and managing director for EffectiveBrands. Here are five key drivers of global marketing effectiveness: 1. Connect Marketing leaders should create opportunities for teams around the business to build interdependence by organizing gatherings, setting up online forums, and establish- ing benchmarks around alignment. For example, Sony has held gatherings for its global teams with this agenda: Talk to us. Tell us whats going on in your market, from the competi- tive, consumer, and corporate perspective. The servant-leadership mindset is listening and explaining that you understand there is no global market, but rather many very important local markets, Orton says. That allows you to say, Ive heard you all, now this is where were going. 2. Inspire Marketing leaders need to make sure their vision is not seen as an ego project, but rather is based on deeper, local meaning rooted in the brand purpose that others can embrace. Doves Real Beauty campaign was rolled out to global teams through conferences, web chats, newsletters, and personal interactions. If you ask stakeholders in your organiza- tion if they are inspired to orchestrate your strategy, will they say yes? Because if they wont, it wont happen, Orton explains. 3. Focus Leaders need to align the strategies and structures of their divisions to achieve a unified goal. Dove created a one-page document that said exactly what the brand was going to do everywhere and what it would be in three years time. When you ask local marketers to think about where we are going to be three years from now what are the mega- trends, how are we going to win the defense mechanisms drop, Orton says. 4. Organize Get clear about roles and responsibilities. Figure it out together: What do we do, what do our agencies do, what does Germany do versus HQ? The worst thing that happens is youre three-quarters of the way down the road, and suddenly someone steps in who wasnt involved in the brief, Orton says. Not sorting those out leads to ugly fights. What matters is you define who does what. 5. Build Make sure your organization has the capabilities for marketing in the 21st century by investing in training to get people the skills, knowledge, and tools for success. Start speaking the same language, Orton says. Get your marketers into home visits, or use reverse mentoring. Choose the two or three things your organization needs to be very good at to win in your competitive market, and figure out what programs you need to put in place. C.K. peers to engage with their employees and consumers around their brand purpose. In an age when every customer expe- rience is subject to scrutiny and the slightest hiccup can quickly find its way to your permanent record, marketing or- ganizations have to be proactive in en- suring that their brand is woven throughout their companys fabric. T