CMO's as Change Management Operators

CMOs as

Change Management Operators

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As a CMO, are you

experiencing big CHANGES

in your leadership role?

What is the

sin

gle-‐most

significant

Marke4n

g-‐led change

that you

managed

in

2012 and

what w

as

the o... survey says:

Implemented Marketing automation system with Salesforce.com Re-org’ed Marketing to align with other Division’s & Company goals Sales marketing tools to differentiate Sales team - increased revenue Integrated Marketing strategy with new products, communications, digital Implemented financially-driven alignment process with Product & Sales -increased attributable opportunities to Marketing … at lower cost Increased globalization – Marketing Centres of Expertise - improved employee engagement, leveraging of best practices, customer experience Deployed performance based marketing measures & use of data for actionable decision making

What was the most significant Marketing led change that you managed in 2012 & what were the results?

*CMO survey led by Kimberly A. Whitler, Indiana University Kelley School of Business PhD candidate & serial CMO

*

from Chief Marketing Officer

to Change Management Operator

Maribel Garcia–Rodriguez Director, Global Marketing Excellence, Bayer Consumer Care

Lorena Harris @harrilor VP Corporate Marketing

Steven Cook @StevenCook CMO writer former CMO

Vince Ferraro @VinceLFerraro former VP Global Strategy & Marketing, Corporate & Consumer Group

Filip Wouters @FilipAWouters Senior Director, Integrated Marketing, Windows Phone

CMOs/Senior Marketers as Change Management Operators - Improving Customer Engagement - Building Relevant Brands - Growing Revenue, Improving MROI

Understanding & proactively leading through these changes is critical to each of us.

Not making Brand Marketing changes from this …

‘listening’ to your consumers like this …

strategic planning like this …

digitally engaging with your consumers like this.

www.cmo.com/articles/2012/1/24/its-time-to-raise-the-cmo-bar.html

Editor & reader pick 12 Most Popular Posts of 2012

‘It’s Time To Raise the CMO Bar’

Editor ‘Must Read’ Q1 2012

Chief Marketing & Sales Officer Forum

Shift from traditional CMO role & deliverables to CGAR5 - Commercial Growth Accelerator

Relationships (‘people’ engagement) Reputation (authentic, transparent, trust) Relevant reimaging (compelling value prop, grow brand) Revenue & results (metrics that matter, MROI) Real-time (responsive, agile)

‘It’s Time To Raise the CMO Bar

Tipping point to develop NEW & IMPROVED roles for CMOs, Marketing & Agency partners to remain relevant, valued, connected & focused on the highest value creation strategic opportunities.

What has shifted?

push > pull > powered = >potential

push > pull > powered = >potential

>potential for people & brands

What has shifted?

driving brand value �pre-digital�

brand� customer �1-way Adv Tech�push�

/prospect �

driving brand value �pre-digital�

brand� customer �1-way Adv Tech�push�

/prospect �

people �br

and�

2013�2009� 2011� 2012� 2014�

2010�2008�

2015�

2016

�

powered� potential�

Communication landscape has shifted from 1-way brand building at you to building brands with constituents.

Consumer’s behavior has shifted to a hyper socially engaged, multi-screen, mobile lifestyle.

Super Bowl 2013 online & offline party

Consumer’s path to purchase has radically shifted to a non-linear, merged online-offline multi-screen journey.

HAPPENED!

trend

•  general direction in which something is developing or changing or has a tendency to move, or a popular taste at a given time

shift

•  to exchange or substitute one thing for another

•  to move or transfer from one place or position to another

•  to change position, direction, place, or form

Fundamental sustained strategic shifts have happened that will continue to accelerate people power… and change their behaviors and expectations… powering potential for brand’s to deliver increased value.

HAPPENED!We are beyond trends.!

“This cycle of tech disruption is materially faster and broader than prior cycles. No industry or business is immune. We will see the re-imagination of nearly everything… powered by new devices, connectivity, UI, and beauty.”

Mary Meeker, General Partner at Kleiner, Perkins, Caufield, & Byers

And experts forecast that these shifts will accelerate.

Digital is no longer a subset of the average person's life. It's just a part of everyday living that's expected and more accessible than ever. Marketers need to embrace how people (consumers) engage digitally and integrate their communications accordingly.

Digital Brand Marketing 2013+ Sustained Strategic Shifts_

www.slideshare.net/stevencook/2013-digital-brand-marketing-sustained-strategic-shifts-legolas-media-neustar-adadvisor-digital-brand-forum-11713

Smart User Experience Social Media Mobile First

Multi-Screen Integration Omnichannel Big Data INNOlytics

Content & Context Social TV CMO Reinvention

Brand Value Reimagined Brand Trust Brand Agility

CMOs understand importance of these shifts … & are starting to make changes.

Marketing Mind is at a tipping point shifting from ‘Art & Science’ to ‘Science & Art’.

‘every CMO made a strong reference to the significant changes they have had to make to their operations’ ‘non-stop drumbeat of mentions: “the incredibly heavy lifting it took to ___” ‘ ‘snapping point of current organization structures, processes, & tech’ ‘getting tighter about designing workflows for customer engagement’ ‘setting up coordinating mechanisms across functions & lines of biz’ ‘rethinking agency mixes & what they do internally’ ‘standardizing on shared sets of technology tools’ ‘needing to add new roles’

Chief Marketing & Sales Officer Forum

‘Prediction for 2013: “Operations” becomes "a key word in Marketer’s vocabulary’"

“More than 70% of needed change either fails to be launched, completed, or finishes over budget, late, and with initial aspirations unmet.” John P. Kotter Harvard Business School





Topline stories about 2012-13 Change Management Operator Marketing led initiatives that grew value-add results & grew leadership capabilities.

- Improving Customer Engagement - Building Relevant Brands - Growing Revenue, Improving MROI


Change Management Operator - Improving Customer Engagement - Building Relevant Brands - Growing Revenue, Improving MROI

The Launch of Windows Phone 8 –

A Mobile Change Challenge

The Change Challenge: Create the Next Mobile PlaDorm

A Fully Integrated Approach to Windows Phone

Best of Microso,

Best for Windows 8 & Surface

Killer Hardware

8X HTC & Nokia Lumia 920

Windows Phone 8

while remaining true to its core. On the whole, it is a worthy refresh, and one that gives MicrosoM's

mobile plaDorm the boost it needs to compete against

Android and iOS.”

Over 125,000 apps Store available in 50

languages and 191 markets

“Windows Phone 8 makes big changes

Crea4ng Customer Engagement Starts with a Clear Consumer Target

Persona

Target market

And features that can change the game.

Only Windows Phone has … Live Tiles Live Apps SkyDrive Kid’s Corner

Building a brand starts with a clear brand story

“The smartphone reinvented around you”

Brand Manifesto TV

Dot.com

Building a brand through Integrated Marke4ng Touch Points

Learn and Evaluate Select and Buy Ecosystem buys (apps/accessories)

Consumer Purchase Journey

Familiarize Try Purchase & Customer Service

Brand Experiences

Use & Advocate

Tv ads

Retail stores

Crm

Social

Wow demo

Online ads

Print

Custom

RSPs

OOH

MS stores / e-‐commerce

WOM

PR

Product

Across Windows Phone, MicrosoM, OEM partners and mobile operators

Experien4al

Cinema

Search

Global marke4ng – Reinvented

Glocal approach: +20 Celebrities & characters in 5 countries, 32 TV ads

Meet Jessica Meet Gwen Meet Cam Meet Bilbo

Integrated marke4ng -‐ reinvented Bilbo App CollecTon InteracTve Print (STckers) CompeTTve mobile ads

-‐  Engaged customers: Dot.com, Social, CRM & Online -‐  Brand momentum: Considera4on, Percep4on & Recogni4on -‐  Growth: RSP, Experien4al, MS Stores, Demand in stores

And the results…



Marketing Evolution as Change Management Operators

The rate of change is not going to slow down anyTme soon. If anything, compeTTon in most industries will probably speed up even more in the

next few decades." — John P. Ko\er Leading Change

Iden4fy

Develop

Embed

Why is Integra4on Necessary?

CONSUMER VALUE CONVENIENCE COMMUNICATION

PRODUCT PRICE PLACE PROMOTION

Why is Integra4on Necessary?

WHAT IS INTEGRATED MARKETING?

The coordinaTon and integraTon of all markeTng communicaTon tools,

avenues, funcTons and sources within a company into a seamless program

that maximizes the impact on consumers and other end users at a

minimal cost

Source: Wikepedia

WHAT IS INTEGRATED MARKETING?

“A way of looking at the whole markeTng process from the view

point of the consumer” Phillip Kotler, Professor of Interna9onal Marke9ng, Northwestern University

CONSUMER Focused Thinking CONNECTIONS Among Key Ac4vi4es PLANNING as One Team

WHAT IS THE FOUNDATION FOR SUCCESS?

Elevit China •  Helped iden4fy in store and

digital as new channels which, upon ac4va4on lead to a 77% growth and +12.9 share points.

Bepanthen Russia •  Helped iden4fy Maternity

hospitals and digital as new channels which, upon ac4va4on lead to 35% growth vs. 15% growth for the category

Marke4ng Integra4on = Strong Results

“We don’t have a choice on whether we do social media, the ques4on is how well we do it”

-‐  Erik Qualman*

Source: 2013 Social Media Revolu4on

The ROI of social media is your business will exist

in 5 years*

Why is a DDP Process necessary?

•  Digital is s4ll new to most of us

•  Digital development is complex – involves mul4ple agencies and func4ons

•  Legal and regulatory restric4ons are vague

•  There a few established success models

•  Digital development oMen lacks strategic direc4on and/or is not fully integrated in the overall communica4on strategy

What is the Founda4on for Success

Strategically Integrated Digital = Strong results

800,000 video views of Canesten ‘The Naked Truth’ You Tube Channel in only 4 weeks



Marketing Change Management at Vantiv

Vantiv’s Marketing Mission Marketing’s Challenge in 2011: Rebrand and build awareness from scratch in time for a successful IPO

Marketing Challenge for 2012-13: Redefine the Marketing function as a change agent, revenue center, and partner to the Sales process.

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Vantiv is a 40-year old payment processing company, originally known Fifth Third Processing Solutions, the payment processing division of Fifth Third Bank. A decision was made to separate and re-brand in June of 2011. The new company subsequently IPO’d in March 2012 with a market cap of $3B.

…Or, put another way…

Work Miracles

Change Management Through Content Marketing Vantiv’s thought leadership / content marketing program is designed to: •  Improve brand awareness, • Position the company as an industry thought leader,

• Generate qualified leads via multi-channel digital campaigns, and

• Provide the Sales force with high-quality content for client conversations.

The Vantiv Insight Series Research In January 2012 Vantiv and Mercator Advisory Group teamed up to conduct primary research on payment trends in the U.S. We asked 1200 consumers details both about how they currently make payments and how they expect to do so in the future. The research was just refreshed in January 2013. The Vantiv Insight Series is based on this data, and provides educational campaigns and tools to help merchants and financial institutions identify areas of opportunity in payments. All this information is available at Vantiv.com/research, with registration required so that Vantiv can follow up to nurture prospects and funnel leads to Sales.

Vantiv’s Thought Leadership Program Something to Talk About

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2012 Program Campaigns Jan Security & Fraud Protection April Top 10 Trends for 2012 July The Case for Prepaid Sept Payments Go Mobile Nov Executive Thinking on Payments 2012 2013 Program Campaigns March Top 10 Trends for 2013 June Payments in the Omni-Channel

Customer Experience Sept In Pursuit of Mobile Payments Nov Executive Thinking on Payments 2013

Viewers who come to Vantiv.com for the Thought Leadership content represent over 66% of new visitors, spend 4X longer than the average viewer, and view over 11 pages per visit (versus 4.5 pages).

In 2012, the program touched more than 12k opportunities and helped generate more than $22M.

http://vantiv.com/research

#9 Social Media

Podcasts

Video Sharing

Social Networking

Blog Content

#5 PR & Media Presence

News Releases

Media Briefings

Media Query Responses

Interviews

#7 Events

Webinars

Trade Shows

Community Events

#14 eNL’s & Blogs

#2 External ValidaTon

Experts as Spokespeople

Endorsements & Referrals

Co-‐PublicaTon & Co-‐MarkeTng

#13 Sales Tools #12 Collateral

Core Business Issue

#15 eBooks

#8 Themed Videos

External Experts

Client Interviews

Event Montages

#10 Sales PresentaTons

Scripted Sales Presos

Industry Deep-‐Dive Presos

Short Decks Filler Slides

#6 Speaking Engagements

Client Seminars

Prospect Workshops

Industry Conferences

Thought Leadership Program Toolkit

#3 Web

Micro-‐site

Key Findings

Industry Views

Downloads

#1 Primary Research

White Papers

Key Themes

Quarterly Campaigns

#11 Sales Training

Live PresentaTons

Recorded Webcasts

Scripted PPTs

#4 SEM

Organic

Paid Search

Editorials/ Advertorials

Referral Program

Change Management Via Integrated Channel Mix In late 2012 Marketing began leading revenue acceleration campaigns which apply a full set of digital inbound marketing programs -- integrated with traditional outbound channels -- to deliver leads with a 3X higher close rate than any other lead source.

Accelerated Revenue Cycle (ARC) Fast-track Lead Gen Program

•  Kick-off: Identify revenue goals, target markets, primary channels, timing, success metrics, etc.

•  Inbound Marketing (B2B) – web content, advertising (print, online), paid search, SEO, webinars, blogs, videos, social media, events, PR, etc.

•  Outbound Marketing (B2B) – Direct mail, email mktg, event invites, telemarketing, sales tools, etc.

•  Assessments: Frequent, then regular evaluation of metrics and adjustment of tactics to ensure leads are flowing within 2-3 months.

Prospect or Client

Nurtured by Mktg thru Marketo

MarkeTng Lead

Qualified by Inside Sales

team Sales

Opportunity Closed by Sales

Serviced by Rel Mgmt

Demonstrating the Value

62

A marketing touch does not equal a sale, but it’s valuable to show Leadership how and when Marketing contributed – and which tools are most effective in soliciting the desired responses from prospects and clients.

Circle size represents program cost. Therefore at this time print SEO and web search have the lowest cost, highest success, and best ROI. Conversely, print advertising is the most expensive, least successful and has lowest ROI.

Change Management Via Marketing Automation Critical Tool: Implementation of a marketing automation system (like Marketo) for lead generation and nurturing, email marketing, analytics, reporting, and interoperability with salesforce.com.

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Traditional Marketing

+ Leverage automated email or direct mail communications to stay in touch with customers

Demand Generation

+ Enable business users to create content, manage campaigns and events + CRM Integration + Lead scoring practices

+ Embrace multi-channel program delivery + Lead scoring and nurturing + Alignment between sales and marketing + Integration to 3rd party system

Integrated Marketing

+ Improve business results through continuous analysis and optimization of sales and marketing resources

Revenue Performance Management

Chart information from Marketo

*% Revenue Target Achieved

*60% *72%

*80%

*100%

Marketing Maturity Journey

Change Management Priorities for 2013

Improve Brand

Awareness

Help Sales Cultivate Client Relationships

Fill The Sales

Funnel With

New Prospects

Integrate Sales & Marketing Efforts

Improve Mktg Mix

Effectiveness

Be a Change Management Agent Going Forward

Demonstrate Value



Change Management - The Decline and the Phoenix

of a Venerable Brand

EK Facts At A Glance •  1892 -‐ Founded in 1892 by George Eastman •  1900 -‐ Introduced Brownie camera for $1 •  1901-‐1930s executed marke4ng like Coca-‐Cola, Ford, and P&G •  1974 – Developed film used on the moon •  1975 – Developed first digital camera •  2004 – Last film camera sold •  2012 – Kodak files for Chapter 11 protec4on •  2012 – Announces businesses to be sold or shut down •  2013 – Kodak plans and is likely to reemerge from chapter 11 later this

year. Sells IP and license brand

The Marke4ng Transforma4on Agenda Three Ques4ons

Old and Rusty Brand New and Shiny Brand

1) What do we do with the Kodak brand? 2) How does marke4ng posi4on Itself as a change agent? 3) What needs to be done immediately?

What Do We Do With The Kodak Brand?

SituaTon: •  Kodak’s brand lost over $10B in equity between 1999 and 2007. •  Brand had strong awareness but lacked energized differen4a4on and

relevance. •  Consumer brand posi4on with a go forward B2B set of businesses. •  IP PorDolio externally valued at $1-‐2B in late 2011. •  At the 4me around the Chapter 11 filing, the market cap of Kodak hit $145M. AcTons and Results: •  IP sold for $525M to a consor4um. •  Selling or shut down all of the consumer businesses (cameras, printers,

photofinishing). •  Refocus brand on remaining B2B businesses. •  Licensed B2C brand to consumer photography company.

How Does Marke4ng Posi4on Itself As A Change Agent?

SituaTon: •  Marke4ng had to take charge of the communica4ons, especially with the end user. •  Cycle 4mes for strategic communica4ons went from days to hours. •  Mindset shiM – From money spent and its ROI to money saved and its ROI. •  Drama4c cost reduc4ons to contribute to downsizing of “RemainCo” company. AcTons and Results: •  Marke4ng-‐led end user communica4ons for the company, Chapter 11, business

shutdowns, including the establishment of Kodak Transforms web site. •  SWAT teams established to reduce communica4on cycle 4mes. •  Unwound sponsorships, saving $17M in 2012 and $77M over life of contracts. •  Tough decisions in reducing cost structure and winding down func4ons and jobs

that were no longer needed or affordable. •  Developed a no excuses Nike “Just Do It” approach. Provided air cover to team for

difficult decisions with collabora4on.

What Needed To Be Done Immediately? SituaTon: •  Need to cut costs to manage to “new reali4es” of Chapter 11. •  Ensure business confidence to all stakeholders. •  Mo4vate and retain employees, especially high performers in strategic posi4ons. •  Move from strategic planning process to something more short term and

responsive.

AcTons and Results: •  Drama4c reduc4ons in people costs. Transparent process of how people and job

reduc4ons were going to occur. •  Business con4nuity – communica4ons to strategic partners and Kodak.com •  Provide buffer to team -‐ accessibility, authen4city, buffer from C-‐suite, individual

recogni4on, deployment of reten4on programs, etc. •  Double down on cri4cal marke4ng ac4vi4es – trade shows, events, new product

launches, social media, and online.

Lessons Learned •  Don’t expect a call to be a leader. Just act and do. Lead the change you

want to have happen.

•  Know the limits of your brand. In the church of your brand, not everyone is going to want to be a member!

•  Know the difference and 4me for brand building and con4nuity.

•  Learning how to “deconstruct” marke4ng func4ons and spend is as important as “construc4ng”.

•  You got to know when to hold 'em, know when to fold 'em.

•  Marke4ng scope gets very granular – revenue, costs, intros, strategic account management …

Eastman Kodak Company – The Story Con4nues …

Filip, Maribel, Lorena & Vince,

Thank you for sharing your successful

Change Management Operator stories!

> What was your most significant incremental value

contribution?

> What was your most significant professional

growth?

What value adding CHANGES

are you going to lead in your

leadership role?

Tell us: #CMOExchange

#CMO.com