The CMO Is Evolving Into New Species With Vastly Broader Range

The CMO Is Evolving Into New Species With Vastly Broader Range

Big Data and Digital Demand Expertise in Both New and Traditional Areas of Marketing

By , . Published on January 15, 2014. 4

Seeking insight into how marketing is changing, we had conversations with dozens of CMOs and other C-suite executives, mined our firm’s ongoing study of marketing leadership trends, and tapped the direct observations of consultants across our global CMO practice. We found that the demands on marketing are growing far more eclectic, stretching marketing organizations and their leaders between divergent poles. The stretch is occurring across five critical axes:

Sophisticated Strategist vs. Entrepreneurial Trailblazer. Stable, mature markets offer large, reliable revenue streams, but competition tends to be fierce and growth potential is limited. Marketers must rely on intricate consumer insights and sophisticated strategies to eke out marginal gains. Emerging markets, in contrast, offer far less data to guide marketers, but far greater growth potential. The Entrepreneurial Trailblazer works creatively with what is available. In Africa, for example, more people have mobile phones than have access to electricity, and so mobile devices must be basic in design, to provide long battery life. As millions of Africans access the internet on a 2-inch cellphone screen, in black and white and text-only, marketers are skipping traditional TV advertising to move into the uncharted territory of advertising according to those parameters.

Business Leader vs. Marketing Guru. Companies increasingly require a CMO to be much more than a marketing star. Today’s CMOs are expected to help the CEO shape overall business strategy and guide how resources are allocated across the business. Metrics are a key driver of this shift. Historically, measures of marketing effectiveness could demonstrate only that marketing investments had created potential for the business to succeed. Today’s metrics can quantify marketing’s contributions to the top and bottom line. This is accelerating the trend toward assigning chief marketers broad business responsibilities.

Joseph Tripodi, executive VP and chief marketing and commercial officer of Coca-Cola, is a prime example. Just look at his official company bio: “Mr. Tripodi leads the global Marketing, Customer Management and Commercial Leadership efforts of the Company to develop and leverage its capabilities, brands and properties to meet the needs of consumers and customers worldwide to drive profitable growth.”

When Avon announced the appointment of Patricia Perez-Ayala as senior VP, CMO and global brand and category president, it noted: “Ms. Perez-Ayala will be responsible for global management of Avon’s brand and marketing, including consumer insights, commercial marketing, digital marketing, and also have oversight of Avon research & development, new product development and packaging, and the Liz Earle business.” Avon chose a proven general manager, with marketing at her core, to be its CMO.

We foresee more companies seeking top marketing officers with general management experience, as well as impeccable marketing credentials. The bar is being set ever higher.

Sector Specialist vs. Versatile Partner. Companies have often presumed that a CMO must rise within their own industry or one closely related. But many CEOs now want CMOs to be a versatile partner who can help make sense of all that is unfolding in the wider world, not just within one sector. For example, Citi’s chief brand officer, Dermot Boden, had never marketed in the financial sector, having formerly served as global chief marketing officer at LG Electronics and in marketing roles with Pfizer and Johnson & Johnson. Greg Revelle, senior VP and CMO at AutoNation, is a similar story. Prior to joining America’s largest automotive retailer, Revelle was VP of global online marketing for the travel platform Expedia.com. Earlier in his career, he was an investment banking analyst at Credit Suisse. Boden and Revelle each bring functional knowledge and abilities that are valued as more strategically essential, in a rapidly transforming marketplace, than deep industry knowledge.

Innovation Champion vs. Shopper Expert. Some organizations divide the role of the CMO into two areas of responsibility: an innovation champion focused on developing the pipeline for the future, three to five years out, and a shopper expert focused on delivering a P&L today. The logic is sound, given that each role demands different strengths. The innovation champion makes the organization a wellspring of ideas and ensures that new ideas are protected. The shopper expert builds deep, nuanced understanding of shopper behavior to deliver trial and repeat purchasing. Most CMOs are far more skilled at one or the other. But current and aspiring CMOs will need to acquire enough knowledge and experience outside their expertise to effectively lead both dimensions.

Digital Expert vs. Marketing Traditionalist. The power of big data and digital marketing has created a rush to infuse traditional marketing teams with digital talent. The danger is that freshly recruited experts in social media, SEO, analytics and other digital disciplines will fail to mesh with the traditional operation, with its expertise in areas like branding, promotion and product management. In effect, this creates two marketing functions that work in proximity, but not fully together. CMOs will be increasingly challenged to ensure that marketing is integrated and cohesive as its resident expertise grows markedly more diverse.

ABOUT THE AUTHOR
Dick Patton co-leads the global chief marketing officers practice at Egon Zehnder and Rory Finlay leads the global consumer products practice.
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‘Digital marketing is dead’ proclaims Procter & Gamble’s global brand building officer Marc Pritchard

 18 September 2013 – 6:38pm Updated
Originally posted by Stephen Lepitak
Pricepoints! concurs without reservation.

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Pricepoints! CMO’s know that the key success factors begin and end with customers (behavior, attitudes, etc etc). The velocity of digital technology innovation (growth of devices, explosion of touch points, and engagements) has added complex layers of new customer data (opportunities). The key success factor for brands is in the knowledge of their customer, it all starts and ends strategic insights.

Customer experience management begins with the customer experinece (CX) journey map. Many brands have already begun this process in order to gain competitive advantage (i.e. “first to learn, first to earn”). These “walk a mile in your customers shoes as customers” SWOT audits that define the CX key drivers are priceless.6072ce77-590a-4df5-b3d9-3f3c167bd5ae

Ok, back to the quote. It certainly gets your attention and makes you step back and get grounded in the customer insights that drive the marketing mix strategies first. I will step back and let the thought leader speak for himself.
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Speaking at Dmexco, the chief marketer from the world’s largest advertiser, asked; “Try and resist thinking about digital in terms of the tools, the platforms, the QR Codes and all of the technology coming next. We [Procter & Gamble] try and see it for what it is, which is a tool for engaging people with fresh, creative campaigns…the era of digital marketing is over. It’s almost dead. It’s now just brand building. It’s what we do.”

He made this statement after running a video advertisement for a Braun electric shaver that initially ran online only, ignoring all traditional marketing, driving sales before running through traditional media.

“It wasn’t the digital component. It was the campaign,” he declared, explaining that it prove to the company what could be achieved in the digital world.

“This is a mindset that we are trying to infuse in our company and it’s creating a tremendous shift [within P&G.] It’s freeing up our minds on building creative ideas that come to life through the mediums that we engage with every single day – search, social, mobile, PR, and yes, even TV.”

He continued to describe the strategy as ‘Digital Back’, explaining; “start in the digital world and build your way back to the rest of the marketing mix. Our best agencies do that right now…it’s an approach that is building our brand equities, our sales and our profits.”

He said that digital technology was a “means to reach people” through brands and capture consumer imaginations in a way that had been impossible before.

“But we can only do that if we have this one component that has been a constant since the beginning of brand building – an idea. Fresh creative ideas that are powered by insights, that are powered by the way people think and feel and are inspired by creativity, always have and always will create great campaigns. Digital tools just give us a new way to spread those ideas in ways that we’ve never imagined before…great ideas matter more now than they ever have before, because with these digital tools at our disposal we have the chance to be successful widely beyond whatever we had imagined.”

Pritchard continued to explore some of his company’s brands and how they had utilised new technology, powered by ideas to be a global success, including Old Spice, Vella Koleston and Oral B work.

Discussing the ‘The Man Your Man Could Smell Like’ Old Spice online campaign led to Pritchard offering the insight that “brand insight shouldn’t be something you change with every new campaign.”

He continued: “You should find that insight and invest in it to the best if your brand’s ability,” before running several stages of the campaign to explore its evolution.

Pritchard concluded the talk by imploring the room to “build brands with campaigns that matter, make people think and feel and laugh. We have the chance to do all of those things now in a way that is so much more exciting than we did before. So let’s celebrate the end, the death of digital marketing and let’s focus on celebrating the great idea of these brands and let’s leverage the platforms and technologies that allow us to engage with people like we never have before. I’m certain that our brand building teams, our agencies and the people who see our stuff all around the world will thank us for it.”

Pritchard’s views on the importance of the need for creativity echoed those of Keith Weed, CMO for Unilever earlier in the day, who spoke about the need to use mobile, social and data to help develop more engaging campaigns.

Read more at http://www.thedrum.com/news/2013/09/18/dmexco-digital-marketing-dead-proclaims-procter-gambles-global-brand-building#wgy49OMQM7IF8jd0.99

Targeting Readiness Study Shows CMOs Missing Their Mark

Publication: CMO.com Exclusive
Date: June 14, 2012

Ray Velez

Global CTO Razorfish

You wouldn’t dust off the old Selectric if you wanted to write a memo, or use a football-sized mobile phone a la Gordon Gekko to make a call. So why are you using pre-digital methods to segment your consumer base and determine what digital experiences they receive?

Well, maybe you’re not stuck in the past, but too many in the industry are. They’re content to use old models for understanding consumers rather than taking advantage of the massive torrent of data that the digital age has turned on to get better results from digital marketing. When it comes to targeting, there’s a lot of room for companies to get smarter.

In my role as digital agency Razorfish’s global chief technology officer, I’ve been aggressively counseling brands to take advantage of cloud computing and Big Data. But it’s not enough to just collect the data. You have to use it, and too many executives aren’t, as was clear in a recent study from Razorfish and Adobe (CMO.com’s parent company). Together, we conducted the first-ever Targeting Readiness Study, based on conversations with more than 120 executives in the U.S., including CEOs, CIOs, CTOs, and CMOs.

The survey revealed a big gap between where marketers are and where they should be on targeting. Besides using old segmentation approaches and looking only at the top of the purchase funnel, brands aren’t always sure which digital channels they control, and internal barriers that slow or even stop the development of targeting capabilities are common.

In this article, I’m going to walk you through the issues and provide a schema for understanding where you fall on the targeting spectrum.

Digital Segmentation For A Digital World
Because 49 percent of survey respondents consider themselves strong at targeting experiences to segmented groups of online audiences, we expected to see more businesses demonstrating maturity with their site-side segmentation capabilities. Surprisingly, only 12 percent have implemented the ability to target a recognized segment and measure the results. Less than 50 percent were able to recognize a returning/loyal customer versus a prospect.

When I take a look at a brand’s segmentation approach, I often see something like this: five to 10 personas based on historical sales data and customer profiles. I know the brand is likely capturing an enormous amount of behavioral information from its digital properties—precious information about their activities, habits, and attitudes that aren’t being used. The focus is often customer acquisition, which ignores consumers who are deeper in the customer journey, and on revenue-per-segment, a metric that doesn’t take into account the lifetime value of a customer. (Note, we avoid calling it a “sales funnel” because digital has broken the nice, neat funnel of old. Now customers can and do take diverse journeys to acquisition.)

This yields bad consumer interactions. In the absence of behavioral data that gives you a sense of who they are, consumers aren’t being served personalized experiences that reflect where they are in the customer journey. And where there’s no customization, conversion rates are lower, and your ad dollars are wasted.

Now apply that behavioral data and a whole different world emerges. Microsegments appear and allow for the creation of more tailored experiences that reach customers further down the purchase funnel, in trial, or even at advocacy stages. This isn’t just a nice-to-have; there’s triple-digit ROI growth to be had here.

Read more: http://www.cmo.com/targeting/targeting-readiness-study-shows-cmos-missing-their-mark?cmpid=NIR145#ixzz1yBaCVGfD

The CMO’s Guide to Pinterest

The CMO’s Guide to Pinterest

February 16th, 2012     by ddeal    

Pinterest is a lot more than a shiny new tool to help you decorate your home – it’s a platform for marketers to build connected brands in visually compelling ways. In a  newly published point of view, The CMO’s Guide to Pinterest, my iCrossing colleague Sarah Kuntsal discusses how brands ranging from Real Simple to Nordstrom are thriving with Pinterest.

As Kuntsal asserts, any marketing executive who cares about creating close customer relationships and driving sales needs to take a close look at Pinterest. Although Pinterest is new, the social bookmarking tool has already attracted a loyal base of subscribers. The site is especially popular with female and arts/crafts enthusiasts between the ages of 25 and 44 – and this audience is highly engaged on Pinterest, which is a reason why major brands are taking notice.

According to Kuntsal, brands using Pinterest are realizing substantial increases in referral traffic. Real Simple reports that at times, Pinterest has even bested referrals from Facebook.

The CMO’s Guide to Pinterest provides brief case studies on how Real Simple, Nordstrom, and Lands’ End Canvas have generated brand love on Pinterest. The report offers six Pinterest best practices for your own brand, such as integrating Pinterest into your content calendar.

Pinterest continues to generate no shortage of attention. Other examples related to Kuntsal’s white paper include this Quora thread about brands on Pinterest, a recent TechCrunch article, and Brands, Businesses, and Blogs on Pinterest.