State of Marketing 2014

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Apologies to all those to whom this is already well known.  But, I know many of you have never hired a head of marketing before.  And as soon as you get your MSP (Minimum Sellable Product) out the door, and you’ve got your first 10 customers under your belt — you’re probably going to want to hire a VP or Head of Marketing to help you get more leads in, manage the process, and help get the word out.

All good stuff.

Let me just give you one tip.  There are basically 2 types of SaaS and business web marketers.  And if you hire the wrong type — the more common type — then instead of more customers, you may end up with just a bunch of Blue Pens with your logo on them.

Why’s that?

Well, for SaaS companies, marketing broadly speaking breaks into two species…

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Inbound Marketing, Agency of the Future?

Nielson Report Gauges Companies’ Approach to Advertising on Social Media

NYT Media

Nielson Report Gauges Companies’ Approach to Advertising on Social Media

By TANZINA VEGA

Since the arrival of social media platforms, companies have tried to figure out how to best use them to get their messages to consumers, often with mixed results. Some brands have embraced the notion that social platforms like Twitter allow constant interaction, for better or worse, with their customers.

Others have turned away from some strains of social media, as General Motors did last spring when it stopped advertising on Facebook while raising questions about the return on its investment. The move had a ripple effect in the advertising world, with many brands questioning whether the costs of being on social media were worth it.

A new report issued Tuesday by Nielsen and Vizu, a research company owned by Nielsen, shows that brands think they might be turning a corner, specifically when it comes to paying for their use of social media.The report examined the opinions about social media marketing among more than 500 digital media professionals — including brand marketers, media agencies and advertisers — from September to October 2012.

The study found that that 89 percent of advertisers continued to use free social media products. Nielsen did not release the names of specific social media platforms mentioned by the respondents, but they are likely to include Facebook and Pinterest, as well as Twitter.

Three quarters of the companies surveyed said they were also spending more for social media content, which could include paying bloggers to write posts about a product or using third-party technology to push videos on to the Web in the hope that they become viral.

Seventy percent of the advertisers surveyed said they dedicated up to 10 percent of their budget to paid social media advertising, while 13 percent dedicated more than 21 percent of their budget. Those numbers are expected to increase in 2013.

The results come as companies like Twitter and Facebook are making more diverse advertising options available to brands. Last year, Twitter announced a number of advertising and media initiatives, including a survey product that enables marketers to ask Twitter users a handful of multiple-choice questions. Facebook began testing a new advertising mechanism using a technology called real-time bidding, which allows advertisers to place bids on ad space at specific times.

“Advertisers are starting to look at social media as an integrated part of their advertising strategy,” said Jeff Smith, the senior vice president of product leadership for advertising effectiveness at Nielsen.

Still, companies retained some skepticism about social media strategy, the survey showed. While companies may expect to spend more to market their brands, they also want to be able to quantify the results of their campaigns. A third of the advertisers surveyed said they were unsure about the effectiveness of social media. The same percentage said they were unsure how to measure the return on their investment.

The majority of advertisers surveyed, 42 percent, said they wanted to measure their online campaigns using the same tools they use for offline campaigns, like sales generated and gross ratings points, while adding more measurement tools specific to digital campaigns, including “likes” and click-throughs.

Advertisers are able to tailor ads to specific groups of online users using cookies and other technologies, but they have often relied on whether consumers click on those ads as the main form of measuring how effective those ads have been.

At the Advertising Week gathering last year, Facebook announced that it was moving away from counting clicks as a metric and moving toward a measurement similar to the gross rating point used in television. The company said it was able to tell whether an ad was effective by combining data on when the ad was shown to a user with data about whether products had been sold. The move is meant to help what is known as “brand advertisers,” whose goals may be less tangible than those of direct response advertisers.

A Facebook representative declined to discuss the company’s paid advertising business. Facebook will announce its fourth-quarter earnings on Wednesday.

via Report Gauges Companies’ Approach to Advertising on Social Media – NYTimes.com.

The Mobile Strategy Is the Strategy

The Mobile Strategy Is the Strategy

by Chuck Martin , mCommerce Daily email newsletter.

Some interesting insights that pertain to mobile commerce came out of today’s Mobile Insider Summit.

In the opening keynote, JWT Executive Creative Director Eric Weisberg said: “If you don’t have a mobile strategy in 2013, you don’t have a strategy at all.”

Though he was referring to mobile in general, this view and others can easily be applied specifically to commerce.

For example, if a retailer or brand does not have a path on how to interact with mobile shoppers in the future, they have a great chance to fall behind or totally fail.

Weisberg’s general advice to marketers was to build on what people are doing rather than interrupt what they’re doing.

This could easily apply to in-aisle shoppers. Rather than sending ‘interrupting’ ad messages, markets could send more thoughtful and useful service-oriented messages.

The hypothetical example Intel has used in the past is that when a shopper is in a store trying to decide which computer chip is best, to send a signal to illuminate each computer with a certain chip.

An example at the summit was in grocery shopping, to highlight specific products in-aisle that pertain to someone with specific dietary requirements. Rather than an irrelevant ad message at the moment, the mobile shopper could be sent advice helping them do what they are in the process of doing, in this case shopping and searching for specific foods.

At one of the roundtable sessions entitled “What Does a Mobile Strategy Look Like” yesterday, there also was more a less a consensus that a mobile strategy should be more accurately viewed as a strategy, inferring that mobile is core to any overall business strategy.

The very thoughtful participants at the summit who are grappling with the complex and nitty-gritty strategies and tactics for moving mobile forward totally get this.

But when they leave after the end of the three-day summit tomorrow, some will return to face the realities of under-resourced mobile efforts.

However, it could be worse. They could be in one of those companies that does not have a strategy at all.

Peter Drucker On Leadership

 
 

Ideas
Peter Drucker On Leadership
Rich Karlgaard, 11.19.04, 6:00 AM ET

NEW YORK – Peter F. Drucker was born 95 years ago today–can it be possible?–in Vienna. The universally known writer, thinker and lecturer now is nearly deaf and doesn’t get around like he used to. He stopped giving media interviews about a year ago. But in late October, Drucker granted an exception to Forbes.com at the urging of Dr. Rick Warren, the founder and head of the Christian evangelical Saddleback Community Church in Lake Forest, Calif.

 
Peter F. Drucker at his home in California
 

The Drucker-Warren relationship may surprise many readers, but it goes back two decades, to when the young minister came to Drucker for advice. Under Drucker’s tutelage, Warren’s own success as a spiritual entrepreneur has been considerable. Saddleback has grown to 15,000 members and has helped start another 60 churches throughout the world. Warren’s 2001 book, The Purpose-Driven Life, is this decade’s best seller with 19.5 million copies sold so far and compiling at the rate of 500,000 per month.

Warren and I met at Drucker’s surprisingly spartan home in Claremont, Calif., on a cloudy Tuesday morning. We were greeted by Drucker’s wife, Doris, and ushered into the den for what developed into a two-hour conversation. During the first 30 minutes, Drucker–a religious man himself, albeit of a more muted Episcopalian type as compared to Warren’s exuberant brand of Southern Baptist–advised Warren on the challenges of ministry and church building. This consultation is one Drucker and Warren have engaged in twice yearly for two decades. For the last 90 minutes we moved to broader topics. Below are Drucker’s thoughts on leadership. (Click here for Drucker’s official biography.)

What Needs to Be Done

Successful leaders don’t start out asking, “What do I want to do?” They ask, “What needs to be done?” Then they ask, “Of those things that would make a difference, which are right for me?” They don’t tackle things they aren’t good at. They make sure other necessities get done, but not by them. Successful leaders make sure that they succeed! They are not afraid of strength in others. Andrew Carnegie wanted to put on his gravestone, “Here lies a man who knew how to put into his service more able men than he was himself.”

Check Your Performance

Effective leaders check their performance. They write down, “What do I hope to achieve if I take on this assignment?” They put away their goals for six months and then come back and check their performance against goals. This way, they find out what they do well and what they do poorly. They also find out whether they picked the truly important things to do. I’ve seen a great many people who are exceedingly good at execution, but exceedingly poor at picking the important things. They are magnificent at getting the unimportant things done. They have an impressive record of achievement on trivial matters.

Mission Driven

Leaders communicate in the sense that people around them know what they are trying to do. They are purpose driven–yes, mission driven. They know how to establish a mission. And another thing, they know how to say no. The pressure on leaders to do 984 different things is unbearable, so the effective ones learn how to say no and stick with it. They don’t suffocate themselves as a result. Too many leaders try to do a little bit of 25 things and get nothing done. They are very popular because they always say yes. But they get nothing done.

Creative Abandonment

A critical question for leaders is, “When do you stop pouring resources into things that have achieved their purpose?” The most dangerous traps for a leader are those near-successes where everybody says that if you just give it another big push it will go over the top. One tries it once. One tries it twice. One tries it a third time. But, by then it should be obvious this will be very hard to do. So, I always advise my friend Rick Warren, “Don’t tell me what you’re doing, Rick. Tell me what you stopped doing.”

The Rise of the Modern Multinational

The modern multinational corporation was invented in 1859. Siemens invented it because the English Siemens company had grown faster than the German parent. Before the Second World War, IBM was a small maker, not of computers, but of adding machines. They had one branch in England, which was very typical for the era. In the 1920s, General Motors bought a German and English and then Australian automobile manufacturer. The first time somebody from Detroit actually visited the European subsidiaries was in 1950. A trip to Europe was a big trip. You were gone three months. I still remember the excitement when the then head of GM went to Europe in the 1920s to buy the European properties. He never went back.

21st Century Organizations

Let me give you one example. This happens to be a consulting firm headquartered in Boston. Each morning, between 8 A.M. and 9 A.M. Boston time, which is 5 A.M. in the morning here in California and 11 P.M. in Tokyo, the firm conducts a one-hour management meeting on the Internet. That would have been inconceivable a few years back when you couldn’t have done it physically. And for a few years, I worked with this firm closely and I had rented a room in a nearby motel and put in a videoconferencing screen. Once a week, I participated in this Internet meeting and we could do it quite easily, successfully. As a result of which, that consulting firm is not organized around localities but around clients.

How To Lead a 21st Century Organization

Don’t travel so much. Organize your travel. It is important that you see people and that you are seen by people maybe once or twice a year. Otherwise, don’t travel. Make them come to see you. Use technology–it is cheaper than traveling. I don’t know anybody who can work while traveling. Do you? The second thing to say is make sure that your subsidiaries and foreign offices take up the responsibility to keep you informed. So, ask them twice a year, “What activities do you need to report to me?” Also ask them, “What about my activity and my plans do you need to know from me?” The second question is just as important.

Prisoner of Your Own Organization

When you are the chief executive, you’re the prisoner of your organization. The moment you’re in the office, everybody comes to you and wants something, and it is useless to lock the door. They’ll break in. So, you have to get outside the office. But still, that isn’t traveling. That’s being at home or having a secret office elsewhere. When you’re alone, in your secret office, ask the question, “What needs to be done?” Develop your priorities and don’t have more than two. I don’t know anybody who can do three things at the same time and do them well. Do one task at a time or two tasks at a time. That’s it. OK, two works better for most. Most people need the change of pace. But, when you are finished with two jobs or reach the point where it’s futile, make the list again. Don’t go back to priority three. At that point, it’s obsolete.

How Organizations Fall Down

Make sure the people with whom you work understand your priorities. Where organizations fall down is when they have to guess at what the boss is working at, and they invariably guess wrong. So the CEO needs to say, “This is what I am focusing on.” Then the CEO needs to ask of his associates, “What are you focusing on?” Ask your associates, “You put this on top of your priority list–why?” The reason may be the right one, but it may also be that this associate of yours is a salesman who persuades you that his priorities are correct when they are not. So, make sure that you understand your associates’ priorities and make sure that after you have that conversation, you sit down and drop them a two-page note–“This is what I think we discussed. This is what I think we decided. This is what I think you committed yourself to within what time frame.” Finally, ask them, “What do you expect from me as you seek to achieve your goals?”

The Transition from Entrepreneur to Large Company CEO

Again, let’s start out discussing what not to do. Don’t try to be somebody else. By now you have your style. This is how you get things done. Don’t take on things you don’t believe in and that you yourself are not good at. Learn to say no. Effective leaders match the objective needs of their company with the subjective competencies. As a result, they get an enormous amount of things done fast.

How Capable Leaders Blow It

One of the ablest men I’ve worked with, and this is a long time back, was Germany’s last pre-World War II democratic chancellor, Dr. Heinrich Bruning. He had an incredible ability to see the heart of a problem. But he was very weak on financial matters. He should have delegated but he wasted endless hours on budgets and performed poorly. This was a terrible failing during a Depression and it led to Hitler. Never try to be an expert if you are not. Build on your strengths and find strong people to do the other necessary tasks.

The Danger Of Charisma

You know, I was the first one to talk about leadership 50 years ago, but there is too much talk, too much emphasis on it today and not enough on effectiveness. The only thing you can say about a leader is that a leader is somebody who has followers. The most charismatic leaders of the last century were called Hitler, Stalin, Mao and Mussolini. They were mis-leaders! Charismatic leadership by itself certainly is greatly overstated. Look, one of the most effective American presidents of the last 100 years was Harry Truman. He didn’t have an ounce of charisma. Truman was as bland as a dead mackerel. Everybody who worked for him worshiped him because he was absolutely trustworthy. If Truman said no, it was no, and if he said yes, it was yes. And he didn’t say no to one person and yes to the next one on the same issue. The other effective president of the last 100 years was Ronald Reagan. His great strength was not charisma, as is commonly thought, but that he knew exactly what he could do and what he could not do.

How To Reinvigorate People

Within organizations there are people who, typically in their 40s, hit a midlife crisis when they realize that they won’t make it to the top or discover that they are not yet first-rate. This happens to engineers and accountants and technicians. The worst midlife crisis is that of physicians, as you know. They all have a severe midlife crisis. Basically, their work becomes awfully boring. Just imagine seeing nothing for 30 years but people with a skin rash. They have a midlife crisis, and that’s when they take to the bottle. How do you save these people? Give them a parallel challenge. Without that, they’ll soon take to drinking or to sleeping around. In a coeducational college, they sleep around and drink. The two things are not incompatible, alas! Encourage people facing a midlife crisis to apply their skills in the non-profit sector.

Character Development

We have talked a lot about executive development. We have been mostly talking about developing people’s strength and giving them experiences. Character is not developed that way. That is developed inside and not outside. I think churches and synagogues and the 12-step recovery programs are the main development agents of character today.

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Video: The Purpose-Driven Leader

15 CMO’s say what’s on their mind for digital marketing in 2013

Posted on December 23, 2012 by Rob Petersen

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“Half the money I spend on advertising is wasted. The trouble is I don’t know which half,” said department store magnet, John Wanamaker, in 1902.

The statement is as relevant today as over 100 years ago only to more media channels. Because, according to 2012 State of Marketing report from the Chief Marketing Officer Council, 27% said TV was the most impactful medium where 44% said search was the superior vehicle.

The report also said executives were particularly enthused by search and social media but not satisfied with their current digital marketing performance. Roughly 50% said digital strategy was one of the most important challenges for the the New Year.

What else do they say? Is it the same as John? Here what 15 CMO’s say is on their mind for digital marketing in 2013.

  1. Cloud computing will merge with big data and dashboard tools into something that truly offers marketers a more holistic view of all their consumer touch points. – Lisa Archambault , Manager, Display Marketing, Zappos Development, Inc.
  2. More companies will start to address the challenge of integrating digital platforms into their overall customer experience. – Mike Ashton , Managing Director ABCG
  3. B2B commerce is going to be a trend in 2013 because direct-to-business sellers are realizing that there’s a huge opportunity to meet the business buyer’s consumer sensibilities and are leveraging some of the best practices acquired from the B2C world. – Sean Cook , CEO, Shop Visible
  4. Few businesses have yet to embrace the power of video. Video offers greater retention and up to five times greater recall than print, according to TubeMogul. – Stacey Coopes , CEO, Ford Direct
  5. I think we’ll see a tighter link between sales and marketing systems, which will lead to a bigger focus on personalized experiences for both inbound and outbound marketing. – Eduardo Conrado , Chief Marketing Officer, Motorala
  6. Thanks to digital marketing, marketers are flooded with highly accountable data of online behavior. Conversion data is all tracked accurately, just waiting for ROI calculations. – Gabe Delporta , CMO, Lending Tree
  7. I fully expect the joint industry effort Making Measurement Make Sense to establish the digital Gross Ratings Point (GRP) as the prevailing metric for premium digital media transactions. – Patrick Dolan , EVP and COO, IAB
  8. It’s less about technology and more about content, messaging and integration into a marketing-communications campaign. – Susan Helstab , VP-Marketing, Four Season
  9. CIOs and CMOs need to work together on major initiatives like a master data management strategy, social media, and building these systems of engagement so we can reach customers through the channel or device of their choice. CIOs and CMOs will be the co-designers of their company’s total customer experience. – Jon Iwate , SVP, Marketing and Communication – IBM
  10. Relevance of message is clearly better achieved through digital and social, as well as the ability to have a conversation. … [You] can have folks give you immediate feedback”. – Alfredo Martell , Senior VP, Marketing and Product Management, Caribou Coffee
  11. CMO’s are charging into Big Data. Data and web analytics are going to be big hiring priorities for marketing departments,”  “It’s a directive from the top. The CEO is saying to the CMO, ‘Listen, customer preference is controlling the switch, so come to me with accurate measurement, give me visibility into the marketing spend.” – Liz Miller, VP of the CMO Council
  12. In the coming year, successful CMOs will figure out how to reintegrate great brand storytelling (a priority of old) with innovative analytical marketing to provide an emotional connection that resonates with consumers who are becoming increasingly immune to sharper-edged analytical marketing tactics, like retargeting and couponing. – Deborah Op den Kamp , Executive Director, CMO, and Digital Consumer Practices, Russell Reynolds Associates
  13. This concept of social, local, mobile — SoLoMo, as we like to say — I think becomes a tool not only for us to get our point across from a marketing standpoint but for a lot of our vendors who are our best partners to get their point across.” – Stephen Quinn , CMO, Walmart
  14. Dollars follow eyeballs online. IAB reported a 23% year-over-year increase in online spending for the first quarter. We are experiencing the continuing trend of consumers wanting to live online, not just transact online. – Josh Shatkin-Margolis , CEO, Magnet
  15. We don’t believe in digital marketing. We believe in marketing in a digital world, and there’s a huge difference.” – Clive Sirkin , Senior Vice President, Kimberly-Clark

Like these CMO’s, if digital marketing is one of your most important challenges in 2013, you might want to consider Biznology Jumpstart Workshops . If you’re like 44% of CMO’s who believe search marketing is a superior vehicle, there’s On-Site Search Marketing Training  available now to jumpstart your business early rather than later in the coming year.

Are the challenges these CMO’s are facing similar to those at your company? What would be John Wanamaker’s biggest challenge if he was still with us, today?