MarketingProfs Rethinking the CMO to deliver increased value - steven cook 10-18-12 webinar

Rethinking !the CMO to deliver!increased value!

Steven Cook !

10.18.12 webinar!

2012 All rights reserved!

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Welcome! I am looking forward to a

great exchange of ideas with you on this important topic for all

customer-centric brand marketers

Rethinking

the

CMO!

CMO role established in early 1990s

SCALE … ONE TO MANY •  mass market •  mass media •  one-way push ---------------------- •  pre-digital •  pre-social media •  pre-smartphone/smart multi-screen

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Accelerating pace of seismic changes have created more complexity … impacting the CMO & Marketing Function roles, accountabilities & expected delivered value more than any other function.

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•  shift in consumer influence & engagement with brands •  hyper-connectivity digital & social media enables •  collapse of mass marketing & mass media •  global marketplace … with local needs •  speed & transparency of information •  changed customer buying behavior •  multiple channels & platforms •  leveraging Big Data •  mobile

Rethinking

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CMO!

These changes have radically shifted key constituent’s needs & expectations of the CMO & Marketing Function. They want NEW & IMPROVED value & accountabilities. •  Customers •  CEO, C-suite, Board •  Enterprise internal functions & external partners/agencies •  NGO/3rd party stakeholders with immediate digital access, an activist’s passion, a free online megaphone & many followers

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“But, when compared to the tenure average of the top C-suite function, the CEO, CMOs still have considerable ground to make up in this area. The average tenure of the CEOs of the top 100 advertised brands is 111 months or 9.2 years.”

‘Average Chief Marketing Officer Tenure Hits New High: 43 Months’ 1

Average CMO Tenure (months) 2004-2011

Greg Welch & Tom Seclow, CMO Practice, Spencer Stuart

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“The leader of the past was a person who knew how to tell. The leader of the future will be a person who knows how to ask.”

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Differences & similarities between CMOs/Marketing Function from B2B vs. B2C, vertical, company dynamics & other factors.

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Comprehensive deep dive: •  CMOs/Senior Marketers •  Recruiters designing next generation CMO/Senior Marketing job specs to understand changing C-suite & organizational expectations •  Insights & trends from recently published CMO experts & related research

Why & how has your CMO/Senior Marketing role changed to deliver increased value to:

•  your customers • Enterprise

•  C-suite

What have you & your company learned from these changes?

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CMO!

Experts Average Chief Marketing Officer Tenure Hits New High: 43 Months.

Greg Welch and Tom Seclow. CMO Practice. Spencer Stuart.

10 Great Expectations: What CEOs Want From Their CMOs. Stephanie Overby. CMO.com

From Brand Custodian to General Manager – The new role of the CMO. Dick Patton and Michael M. Meier. Global CMO Practice. Egon Zehnder.

CMO Habits. Jim Stengel, former P&G Global Marketing Officer.

From Stretched to Strengthened. Insights from the Global Chief Marketing Officer Study. IBM Corp. How the CMO Can Take the CEO's Corner Office. Mike Vizard. The CMO Site. 2011 State of Marketing Study: Brand-Building in the Complex New Ecosystem of Influence. Andrew Flynn, Jesse Purewal, and Mike Leiser. Prophet.

Ignore the Human Element of Marketing at Your Own Peril. Bob Garfield , Ad Age columnist and Doug Levy, imc2 CEO.

Coca-Cola Marketing Shifts from Impressions to Expressions. Joe Tripodi. EVP, Chief Marketing & Commercial Officer, The Coca-Cola Company.

2011 Edelman Trust Barometer. Edelman.

Study: The Company Behind The Brand More Important Than Ever. Weber Shandwick.

2012 Social Marketing & New Media Predictions. Awareness.

Fast Company Social Media cover story.

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Marissa Pick: Yes- absolutely- every role has become more involved, taking on new responsibilities- also adapting constantly to newer trends, more effective messaging... it's a challenge for all so we must evolve constantly to remain effective!

Shannon Bracken: For sure. With constant change within the technological space, including multiple social media platforms, the responsibilities and content that Marketing executives are accountable for increases. Along with this, the measurement of the effectiveness of these campaigns also grows, forcing proper evaluation of where marketing dollars are spent. This is all in addition to the continued existence of more traditional forms of marketing and advertising, like print, digital, tv and radio. 12

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Christine-Shimo Shimasaki: The need to close the chasm between marketing and sales is a strong imperative, and our CMOs need to be leaders of this shift within the cultures of our organizations.

Ian S. Greenleigh: They're now expected to know everything about their customers, to use data in any and all decisions, and to prove their efforts are working to the wider org.

Eden Hensley: It's changed in terms of accountability. There's more transparency about how marketing and sales work together. Sales and Marketing are beginning to speak the same language. The new technologies require a shift from finger-pointing when goals are missed to collaboratively working to improve processes. There's no more throwing strategies over the fence. Both departments are now sitting down at the table together.

Why & how has your CMO/Senior Marketing role changed to deliver increased value to your customers, C-suite & Enterprise?

Focus on Revenue & Share growth.

Maximize digital & social capabilities & focus.

Closer linkage with Sales. Direct Biz Dev responsibility.

Constantly reinventing brand to stay current.

More financial metrics. More data driven.

Digital & social media driving consumer relationships.

Consumer behavior shifts.

“Traditional” (web, print, collateral, trade shows)

no longer working.

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What have you & your company learned from these changes?

Continuous learning &

innovation are paramount.

Need to be agile, flexible & adaptable.

More open communication. Continuously seek Sales & Field input.

Energizing entire organization in branding through Social Media.

Inspect all elements of value chain to identify growth.

Engage customers in innovation.

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Total game shift. Cash flow,

relevance & engagement matter.

More complicated. Hard to implement.

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CMO!

Other C-Suite execs need same training.

But Steve, I am not a CMO. I am a Marketing Manager/Director/VP.

Do these CMO transformations apply to me too?

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From my experience …YES. Your CMO needs you more than

ever to help transform the capabilities of your

Company’s Marketing Function. And, if you have goals to be a

CMO someday, now is the time for you to become a thought

leader & innovator on where our discipline is rapidly going.

Q & A @ the end

@MarketingProfs

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@StevenCook

CMO!

At a tipping point to develop !NEW & IMPROVED roles !

so the CMO/Senior Marketer remains relevant, valued & connected…!& focused on the most strategic highest leverage opportunities.!

!!•  most importantly … with customers!•  CEO, C-suite, Board!•  across the Enterprise & with Partners!•  NGOs/3rd party stakeholders!

Chief Marketing Officer

& the Marketing function

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“There is no one right answer to define the CMO role. I think the role is very situational and influenced by Executive Leadership Team expectations, competitor dynamics, consumer needs, and the overall direction of the company.” Brad L. McLane, Managing Director, RSR Partners

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CGAR!

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Commercial Growth Accelerator !

Relationships!Reputation!Relevant re-imagining!Revenues & results!Real-time !


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CGAR!

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Relationships!Building high-trust relationships between the company/brands, customers & all Enterprise functions & stakeholders … turning them all into advocates & affiliates.!

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CGAR!

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Reputation!Building an authentic, transparent, trusted reputation for company/brand, & ensuring that all messaging consistently reinforces this across all online & offline touch points.!

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CGAR!

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Relevant re-imagining!Leading & enabling the re-imaging of what the company/brand can be to stay relevant in a fast-paced environment with evolving expectations. !

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CGAR!

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Revenues & results!Identifying, developing, measuring & being accountable for delivering revenues & other key company/brand metrics.!

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CGAR!

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Real-time !Building CGAR5 Team capabilities to energize the enterprise & lead all of the above areas collaboratively across the C-suite, all functions & partners, & to dialogue with customers, at the speed of business today.!

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CGAR!

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“CEOs want a lot out of their CMOs—but the things they want may be different than what most CMOs think.” CEOs expect their CMOs to: •  run a P&L [not just a cost budget]

•  set priorities & make trade-offs

•  orchestrate marketing sub-disciplines

•  be great business partners to the rest of the organization Matt Blumberg, CEO, Return Path

‘10 Great Expectations: What CEOs Want From Their CMOs’ 2

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3 ‘From Brand Custodian to General Manager – The new role of the CMO’

“Marketing has changed radically in recent years – and the transformation is not yet complete. CMOs of large international corporations reveal the wide scope and complexity that this position carries today. In a growing number of firms, Marketing acts as the voice of the customer, initiating, enabling and driving market-oriented corporate governance. This often means that under its direction, processes and structures undergo a full-scale realignment. Marketing is becoming a driving force within the Company. This has also meant redefining the role of the CMO, which is expanding to include responsibilities & powers similar to those of a General Manager. ”

Dick Patton & Michael M. Meier, Global CMO Practice, Egon Zehnder

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“More and more, we’re seeing clients look to CMOs to be thought leaders for the corporation, providing a broad-based commercial perspective on the business as opposed to narrow brand-building mind-set. CEOs want CMOs who can set a vision, but also inspire, align, and motivate troops. And not just in the marketing organization, but the larger organization.” Andrew Hayes, CEO & CMO Practice, Russell Reynolds Associates


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“More CMOs are gaining responsibility or a hand in the line operating organization either though direct responsibility for field marketing, lead generation, or sales strategy, or through close integration with sales. Also, more connections to other parts of the organization, not just brand equity and top-line advertising leadership is happening. Companies are ensuring role clarity and putting processes in place to enable the required cross-functional interactions and maximize the benefits of the interdependencies. The biggest change is adding the tools, people and analytics to manage all the data and inputs around the business.” Andrew Hayes & Alan Cork, CEO & CMO Practice, Russell Reynolds

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CMO!

“Marketing today is a delicate mix of art and science, but from the point of view of the corner office, the ultimate focus must always be the business. Unfortunately, some CMOs focus too much on the creative itself, as opposed to what’s driving the business.” Kate Sayre, BCG Partner


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“Defining the role of CMO too narrowly. Too many see it as ‘MarComm’ … the key advertising and media leader. It needs to be much more than that. The CMO role needs to: •  ensure the consumer/customer is first in the Company

•  drive the strategy and innovation agenda

•  provide the leadership for a creative & analytical organization

•  be accountable for profitable growth” Jim Stengel, former P&G Global Marketing Officer

‘CMO Habits: The most common mistakes CMOs are making’

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CMO!

“CMOs need to invest their time in understanding the other departments they interact with and act like a company-wide leader. People who are too focused on the effort to market and point their energy on new logos and campaigns are not the long-term CMOs that CEOs need today.” David Cooperstein, Forrester Research VP, CMO Practice Leader


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Focused Financial Steward Consistent Innovator Customer Whisperer Customer Advocate Dedicated Brand Steward Social Media Maven Data Analyst Business Strategist Capable Crisis Manager Motivator-in-Chief

“When a CEO hires a CMO, he’s not just looking for someone to manage the Marketing Department. The CEO wants a real ‘seat-at-the-table’ business partner.”


NOT IN PRIORITY ORDER

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5 ‘IBM: From Stretched to Strengthened. Insights from the Global Chief Marketing Officer Study’

1734 CMOs 64 countries 19 industries across B2C & B2B verticals • 79% of CMOs believe the level of complexity will be high/very high over the next 5 years • Only 48% feel prepared to cope with it CMO’s think market & technology factors are the two most powerful external forces affecting their organizations.

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1 Billion active users. Average user posts 90 pieces of content a month. 500 Million registered users. 800 Million users. They upload more video content in a 60-day period than the 3 major U.S. television networks created in 60 years.

The digital revolution has forever changed the balance of power between the individual & the institution. Consumers have greater influence as anyone can become a publisher, broadcaster & critic.


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5 ‘IBM: From Stretched to Strengthened. Insights from the Global Chief Marketing Officer Study’ >50% of CMOs think they are underprepared to manage key CMO domains

% CMOs reporting under-preparedness

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•  The most proactive CMOs are trying to understand individuals as well as markets. Customer intimacy is crucial. 95% of business leaders heading the most successful organizations said getting closer to their customers was the top priority for realizing their strategy over the next 5 years.

•  CMOs in the most successful enterprises are focusing on relationships, not just transactions. They are using data to stimulate interest in their organizations’ offerings and form bonds with customers to a much greater extent than their peers in less successful enterprises.

•  Outperformers committed to developing a clear corporate character. CMOs in such organizations recognize that what a business believes & how it subsequently behaves are as important as what it sells. They make it their job to help management & employees exemplify the Company’s values & purpose.


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CMO!

The vast majority of CMOs believe there are 3 key areas for improvement. •  Must understand and deliver value to empowered customers. Invest in new technologies and advanced analytics to get a better grasp of how individual customers behave.

•  Create lasting relationships with those customers. Connect with customers in ways they perceive as valuable by engaging with them throughout the entire customer lifecycle, building online and offline communities of interest and collaborating with the rest of the C-suite to fuse the internal and external faces of the enterprise. •  Capture & measure Marketing’s contribution to the business in relevant, quantifiable terms. 2/3 of CMOs think ROMI will be the primary measure of their effectiveness by 2015.


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“Gone are the CMO days of, ‘Trust me, this is going to work’. CEOs want concrete, understandable marketing metrics and fact-based decision-making. In the area of analytics, CEOs are always looking for more than CMOs are able to provide. A lot of activities are difficult to measure, and CMOs are always running to catch up and satisfy the demand for data and analytics.” Andrew Hayes, CEO & CMO Practice, Russell Reynolds Associates


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Top strategic marketing challenges management faces to meet growth agenda •  Establishing a differentiated brand position (55%)

•  Identifying new paths to growth (48%)

•  Growing awareness with new customers (43%)

- 150 execs: 50% Marketing & 50% C-level or Non-marketing/Business Unit Management - Businesses with annual revenues ranging from <$25 million to >$40 billion - Variety of industries: CPG, Financial Services, Technology, Telecommunication

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7 ‘Prophet’s 2011 State of Marketing Study: Brand-Building in the Complex New Ecosystem of Influence’

“All respondents recognize that the dramatically changing dynamics between company and customers and the broader network of influencers are causing their control over their brands to slip away.”

in 3 years

% of respondents indicating each

alternative is the primary driver of

brand equity today vs. in 3 years

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CMO!


today

What are the skills/abilities your marketing organization needs to demonstrate over the next 2-3 years to build successful brands?

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CMO!


5 distinct shifts to drive this transformation


To creating marketing strategies driving business impact

controlling the message galvanizing your network

incremental improvements pervasive innovation

managing marketing investments inspiring marketing excellence

operational focus relentless customer focus

From

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Marketing leaders & their teams will need to become more aligned with the C-suite & BOD by: •  adopting a P&L and Operational mindset

•  building a perspective keyed to the business growth agenda, and being accountable for meeting it •  continued development and use of deeper customer insights

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“While building relationships has always been key to the role, we see it as being more important than ever before due to the importance of linking and integrating efforts with Sales and Operations. Further, while historically, it has been critical to build relationships with the end consumers, this has been amplified exponentially today with inroads of digital and social media.” Andrew Hayes & Alan Cork, CEO & CMO Practice, Russell Reynolds

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Relationships

‘Ignore the Human Element of Marketing at Your Own Peril’ Forget Product Posi.oning, This is the Dawn of the Rela.onship Era

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Bob Garfield: 26 year Ad Age contributor Doug Levy: CEO imc2

“Just jettison some old habits, such as trying to manipulate prospects. Stop viewing purchasers as conquests. They are members of a community, prepared to adore (or the opposite) not just your stuff but the inner you. Your essence is transmitted continually via your relationships with consumers, employees, suppliers, shareholders, neighbors and the Earth itself. In short, as you have realized but most likely not come to grips with, you are being evaluated 24/7 in countless conversations that have zero to do with your ad slogan. On the contrary, they are about your brand's essential self -- which behooves you to think very hard about your essential self.”

Relationships

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End of the Consumer Era Collapse of mass media & mass marketing Reduced efficiency of mass advertising & promotion Digital Revolution’s hyper-fragmentation and decimation of scale

Trust The new currency of commerce Trust is an asset, not a commodity. It cannot be purchased. It must be earned. And it can dissolve before your eyes.

Network Effect Awareness, opinion, consideration, preference and purchase have been supplemented by loyalty and advocacy

Genuine Company & Brand Purpose The foundation for values-based relationships that command loyalty and trust

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‘Ignore the Human Element of Marketing at Your Own Peril’ Forget Product Posi.oning, This is the Dawn of the Rela.onship Era

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Relationships

‘Coca-Cola Marketing Shifts from Impressions to Expressions’

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“In the near term, ‘consumer impressions’ will remain the backbone of our measurement because it is the metric universally used to compare audiences across nearly all types of media. But impressions only tell advertisers the raw size of the audience. By definition, impressions are passive. They give us no real sense of engagement, and consumer engagement with our brands is ultimately what we're striving to achieve. Awareness is fine, but advocacy will take your business to the next level. So, in addition to ‘consumer impressions’, we are increasingly tracking ‘consumer expressions’. To us, an expression is any level of engagement with our brand content by a consumer or constituent. It could be a comment, a ‘like’, uploading a photo or video or passing content onto their networks.”

Joe Tripodi, EVP, Chief Marketing & Commercial Officer, The Coca-Cola Company 52

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Relationships

“The CEO expects his CMO to be the keeper of the corporate reputation. CMOs are the prime movers of their brands’ perception. They are the custodians of their brand in all areas and among how all constituencies—customers, employees, the media, regulators—view their company.” Bruce Goldberg, CMO, International Securities Exchange


Reputation

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‘Reputation’ is now a critical marketing stewardship & communications role given the speed & transparency of our global interconnected digital world where customers increasingly use search engines, social media & community forums as their first source to get information about products before they buy. There are significant business implications of having a trusted reputation, and conversely the devastating impact of a negative reputation. “In the last 12 months, 85% of respondents report they have bought the products or services of a company they trusted. Conversely, 73% say they refused to buy products or services from one they did not trust.”

‘2011 Edelman Trust Barometer’ 10

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Reputation

‘The Company Behind The Brand More Important Than Ever’ 11

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Weber Shandwick

“A game-change in branding and corporate reputation is well underway. In this fast moving information age, consumers can now readily connect the dots between the brand they buy and the company behind the brand. Whereas it has long been known that a strong brand shines a light on a company’s reputation, it is now clear beyond a shadow of a doubt that a strong company reputation adds an undeniable brilliance to the brand.” Leslie Gaines-Ross, Chief Reputation Strategist, Weber Shandwick

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Reputation

‘The Company Behind The Brand More Important Than Ever’ 11

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Weber Shandwick

“Our study identified Six New Realities of Corporate Reputation. Each reality serves as a reminder to business leaders that they cannot view their company’s reputation and their product brands as separately as they once did. Aligning and integrating both optimizes their respective strengths to achieve strong business results.”

1 Corporate brand is as important as the product brand(s)

2 Corporate reputation provides product quality assurance

3 Any disconnect between corporate and product reputation triggers sharp consumer reaction 4 Products drive discussion, with reputation close behind 5 Consumers shape reputation instantly 6 Corporate reputation contributes to company market value

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Reputation

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“It's only a matter of time before Marketing becomes the group that serves as the conduit for sharing information in real-time across the organization. By working more closely with the IT department, Marketing will become the provider of the critical information that will ultimately be used to optimize business processes that extend all the way from the front office to the manufacturing floor.” John Squire, Chief Strategy Officer, IBM Coremetrics

‘How the CMO Can Take the CEO's Corner Office’

Real-time

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12 ‘2012 Social Marketing & New Media Predictions.’

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Real-time

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Real-time

www.fastcompany.com/magazine/168/september-2012

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Relationships!Reputation!Relevant re-imagining!Revenues & results!Real-time !


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CGAR!

5 Q & A Does this NEW & IMPROVED role align with the value

your customers, C-suite & enterprise partners expect?

[email protected]

www.linkedin.com/in/stevencook1

Thank you for engaging in a great conversation!

Let’s keep the conversation going as the CMO/Senior Marketing role evolves.

#mprofspro & @stevencook

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2012 All rights reserved!

Sources

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www.cmo.com/leadership/its-time-raise-cmo-bar

1 ‘Average Chief Marketing Officer Tenure Hits New High: 43 Months.’ Greg Welch and Tom Seclow. CMO Practice. Spencer Stuart. 7/5/12 www.spencerstuart.com/about/media/72/

2 ‘10 Great Expectations: What CEOs Want From Their CMOs.’ Stephanie Overby. CMO.com 6/14/11. www.cmo.com/leadership/10-great-expectations-what-ceos-want-their-cmos 3 ‘From Brand Custodian to General Manager – The new role of the CMO.’ Dick Patton and Michael M. Meier. Global CMO Practice. Egon Zehnder. 10/11. www.egonzehnder.com/global/practices/industries/consumer/publications/publication/id/17500449/lt/272

4 ‘CMO Habits.’ Jim Stengel. www.jimstengel.com/thought-leadership/category/cmo-habits/

5 ‘From Stretched to Strengthened. Insights from the Global Chief Marketing Officer Study.’ IBM Corp. 10/11. www.ibm.com/cmostudy2011 6 ‘How the CMO Can Take the CEO's Corner Office.’ Mike Vizard. The CMO Site. 10/18/11. www.thecmosite.com/author.asp?section_id=1548&doc_id=234625 7 ‘2011 State of Marketing Study: Brand-Building in the Complex New Ecosystem of Influence.’ Andrew Flynn, Jesse Purewal, and Mike Leiser. Prophet. 6/11. www.prophet.com/thinking/view/586-prophets-2011-state-of-marketing-study 8 ‘Ignore the Human Element of Marketing at Your Own Peril.’ Bob Garfield and Doug Levy. Advertising Age. 1/2/12. www.adage.com/article/news/dawn-relationship-era-marketing/231792/?utm_source=daily_email&utm_medium=newsletter&utm_campaign=adage 9 ‘Coca-Cola Marketing Shifts from Impressions to Expressions.’ Joe Tripodi. Harvard Business Review. 4/27/11. www.blogs.hbr.org/cs/2011/04/coca-colas_marketing_shift_fro.html

10 ‘2011 Edelman Trust Barometer.’ 1/25/11. www.edelman.com/trust/2011

11 ‘Study: The Company Behind The Brand More Important Than Ever’. Weber Shandwick. 1/18/12. www.webershandwick.com/resources/ws/flash/InRepWeTrust.pdf 12 ‘2012 Social Marketing & New Media Predictions.’ Awareness. 12/11. www.info.awarenessnetworks.com/rs/awarenessnetworks/images/2012_Predictions.pdf 13 Fast Company Social Media cover story. 9/12. www.fastcompany.com/magazine/168/september-2012

Sources

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SVP, CMO N.A. WW VP Strategic Marketing & Business Development

WW Director Brand Marketing

Global CMO & Biz Dev Global CMO & Biz Dev

25+ years in Fortune 500 & Silicon Valley startup B2C global brand marketing, innovation !& biz dev roles on image-based CPG & durable brands with strong emotional connections!

in Electronics, Beverage, Cosmetics, Personal Care, Health & Well-Being & Food.!Palo Alto-based CMO Council Advisory Board & London-based CMO Exchange Advisory Council.! 64