November 1st, 2010

The blog posting discusses key research from the executive recruiting firm, Egon Zendher International. As mentioned frequently in the C-Suite, CMO’s have the shortest tenure of any executive in the office of the CEO. So it is important for marketing executives to figure out what those key competencies and skills are and demonstrate them quickly!

They surveyed many CMO’s and rated them on 8 core competencies.

Source: The Success Formula for CMO's

EZI’s assessment suggested 2 factors stand out in differentiating great from average CMO’s. They are:

1. Results Orientation

2. Change Leadership

The complete, original blog article can be found here:

http://randallbeard.wordpress.com/2010/10/25/what-makes-a-great-cmo/

The original Egon Zehnder research study and article, The Success Formula for CMOs, can be downloaded here:

http://www.egonzehnder.com/global/practices/industries/consumer/thoughtleadership/article/id/17500074

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Posted By Vince Ferraro

September 6th, 2010

The Zen of Marketing Management

Courtesy of Filomena Scalise / FreeDigitalPhotos.net

I was thinking about how, as marketers, we are so completely focused on end results, whatever they may be. We are obsessed about new product intro dates, pricing, social media impact, web site hits, sales, profit, market share, and the list goes on. We are whipped into a frenzy around measurement and ROI of our marketing investments.

This in turn reminded me of a Zen story that will shed some light on another important aspect of marketing. It goes something like this:

A student asked a Zen Master,
‘If I work very hard,
how long will it take for me to realize Zen?’
The Master replied,
‘Ten years.’

The student replied,
‘If I work very very hard,
how long will it take for me to realize Zen?’
The Master replied,
‘Twenty years.’

The student replied,
‘If I work very very very hard,
how long will it take for me to realize Zen?’
The Master replied,
‘Thirty years.’

The student replied,
‘But, I don’t understand…
why does it take longer when I work harder?
The Master replied,
‘When you have one eye on the goal, you only have one eye on the path.’

Too often in marketing we are obsessed with the goal, to the point that we fail to understand that the path, or the process, we used to reach the goal is equally, if not sometimes more, important. Oftentimes, marketing professionals fail to invest adequately in infrastructure and business processes that will ultimately help us achieve the expected business results. In marketing, it is often hard to rise above the challenges of the quarter to quarter “what have you done for me lately mentality.” Truth be told, businesses need to ensure that the right processes and tools are in place to reach those treasured results. Having a processes-oriented mentality (following the path if you will) will achieve many important things. First and foremost, it will help you build a better framework for problem solving.

For example, do you want to build a more effective new product launch capability?  In order to do that, you need to map out all of elements of a successful product launch – the timing, actions, owners, and interdependencies. A second important outcome is that a well-defined process should improve overall operating efficiency. Build the process out and you will find what you really need (and don’t need) to run the business efficiently. A well-defined process also optimizes workflow, making the overall decision process more efficient. That could mean reductions in people, time and money. Great BPO projects don’t add resources—they take resources away, because they are more automated, require fewer steps, and so forth. Finally, there is the matter of effectiveness. The path will lead to more effective decisions. The results include (among many other things) better product designs, enhanced time to market for new products, more accurate forecasts and improved pricing. One shortfall of the marketing function is that it is not always favorably viewed as being a tightly-run ship, due to all of the processes, metrics, and control systems such as the supply chain or the financial aspect. Because of this, we get a bad rap; but I think we are getting better and improving over time. Having said this, we still have a long way to go, and a long path to follow!

Therefore, the path to great decisions is as important as the goal. Being more process-oriented will help you keep your eyes on the path. Marketing professionals who focus only the goal will miss the enlightenment that can be found by following the path.

What is your marketing Zen?

Resources:

http://www.amazon.com/Z-B-Business-Administration-Practice-Transform/dp/1577314697

http://www-usr.rider.edu/~suler/zenstory/zenstory.html

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Posted By Vince Ferraro

July 11th, 2010

The CMO Council State of Marketing Report, featuring the 2010 Marketing Outlook Audit, is the largest independent assessment of senior marketing executives today. This annual global benchmarking initiative undertaken by the Chief Marketing Officer (CMO) Council, gains insights into how senior marketing decision makers are managing marketing mix modeling, budget allocations and media mix spend, and investments into infrastructure, technology platforms and enhancements to internal competencies. Given the economic challenges and market pressures worldwide, this year’s review of ‘08 performance and ‘09 challenges and intentions is far deeper and wider than before. The results of this study will be extremely valuable to all participants seeking peer-level input and consensus on critical issues and priorities in the year ahead. 

If you to be up to date on what marketing thought leaders are thinking about and doing in their marketing programs, activities, and spend, this is the report to read. 

There are many excellent conclusions and observations available in this document. Some of the big picture marketing goals and strategies of 2010 according to a survey of senior marketing leaders include:

• Reallocating more money towards electronic media that is engaging and helps drive increases in customer loyalty.
• Undertake very big consumer insights and business intelligence drive as we gear up to invest in emerging markets.
• Shifting marketing dollars to direct sales engagement and sales training.
• Need to work on coordination and time management of integrated marketing campaign teams.
• Be wiser in channeling the right message into the correct channel to maximize effectiveness.
• Improve communication between marketing and non-marketing employees.

 Some additional recommendations by Deloitte and ExactTarget  include:

Improve marketing alignment across the value  chain.

In recent years, a large number of companies have improved their marketing performance by creating greater internal alignment between Sales and Marketing. Now, many are expanding this effort beyond their four walls to include their key value chain partners. For example, companies in the consumer packaged goods and consumer electronics industries are collaborating with retailers to align their marketing programs, investments, and planning. 

Harness the power of social media. 

New digital technologies and social media channels are changing the way customers think and behave. Established companies are naturally reluctant to shift their focus away from traditional marketing channels that have served them well in the past. Also, many companies don’t know how to operate effectively in this new environment, and are afraid of losing control over their marketing messages. Unfortunately, sitting on the sidelines is no longer an option for most. Conversations that have a profound impact on your product and brand are already happening in these new channels. 

Get more value from customer analytics. 

By now, nearly all major companies are likely making a conscious effort to unearth the valuable insights hidden in their customer data. In fact, according to this year’s CMO Survey, 62 percent of respondents plan on “improving customer segmentation and targeting,” making it the number one improvement strategy for 2010. Yet our experience working with companies around the world suggests that most will barely scratch the surface when it comes unleashing the full power of customer analytics.

Embrace customer service. 

The importance of good customer service will continue to increase as consumers feel more and more comfortable airing their grievances online. Consumers don’t want to go to this level. As one consumer told us in a recent focus group, “I’ll call and then email, but if I don’t get the help I’m looking for, look out! They can’t ignore me when I put it on Facebook and Twitter.” Social media levels the playing field. Progressive marketers will embrace this accountability instead of fearing it. 

Scale through automation.

63% of marketing executives are looking to automation to improve efficiency and campaign effectiveness. The two most common marketing automation solutions planned for deployment in 2010 are for email marketing (46%) and social networking (39%). As a provider of automation tools for both of these channels, we have seen how this type of automation can improve response. For example, we have witnessed automated messages triggered to email subscribers based on their online behavior generated as much as 70 times the conversion rate of non-triggered messages.

Measure what matters. 

As marketers look to improve their online marketing capabilities, they must look beyond top-line performance metrics. High-level metrics are still the most commonly used measure of online effectiveness with 63% looking at page views and registrations. Comparatively, only 38% measure online effectiveness via transactions and/or subscriptions and 22% look at deal values and/or selling cycles. 

A summary of the report is available for free here. 

The complete report is available for $199 here.

I would be interested in hearing your feedback about the conclusions and trends to see if your company is experiencing facing similar challenges and opportunities for the marketing function. 

Happy reading!

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Posted By Vince Ferraro

May 7th, 2010

I recently had a chance to read an exciting new report that was released by the CMO Council on the current state of collaboration and how it impacts innovation within an organization with  suppliers, partners, vendors, and customers. How do we, as marketers, lead the conversation to optimize the customer innovation and collaboration cultures inside and outside our companies?

Today, we live and work in a highly interconnected world. Global interdependence has become a definitive economic reality. The flow of goods, information and capital across borders is accelerating at an astounding pace. World exports grew from about 40 percent of global production in 1990 to more than 55 percent in 2004, according to the World Bank.  Cross border listings on world stock exchanges have also increased rapidly. Non-U.S. listings on the New York Stock Exchange doubled from about 8.5 percent in 1994 to 17 percent at the end of 2003 and, as of June 30, 2009, there were some 3,100 foreign listings on the world’s 52 leading exchanges. Nearly all Global 2000 companies now derive more than half of their sales from international markets.

For most companies today, borderless business is far more than a statistical abstraction. It reflects a new way of doing business. In a 24×7 interconnected economy, corporations are relying more heavily on outside business partners to innovate and deliver products and services, drive critical business processes and ensure seamless experiences for customers around the world. As a result, companies of all sizes and across all industries are seeking to redesign the way they do business in order to integrate a diverse mix of suppliers, partners and vendors more tightly into the fabric of their business. To do so, companies are seeking to transform the way they connect, communicate and collaborate across complex interconnected networks of customers, suppliers, business partners and vendors. If improving and integrating internal enterprise processes and systems was the mandate of business in the 1990s, today those requirements extend far beyond corporate boundaries.

The Collaborate to Innovate study, conducted by the Business Performance Management (BPM) Forum and the Chief Marketing Officer (CMO) Council, takes a new look at the state of business collaboration in the early 21st Century.

Sponsored by Sterling Commerce and AT&T, Collaborate to Innovate is based on an in-depth survey of more than 400 executives and managers whose companies do business around the world. Some 36 percent of respondents represent companies with revenues of more than $1 billion. In addition to our quantitative survey, we conducted 23 qualitative discussions with leading academic experts and executives with major global corporations who are deeply involved in supply-side and demand-side value chain partnership management and development.

As part of the Collaborate to Innovate initiative, the BPM Forum and CMO Council has aggregated statistics on the market impacts, supply and value chain management, customer collaboration and innovation cultures across various regions and industries.

To download the complete report, please find it here.

 http://www.bizcollaboration.org/wp-download.php

The Business Performance Management (BPM) Forum is dedicated to advancing performance accountability, process improvement, operational visibility and compliance in global organizations. It provides support to thousands of senior executives and practitioners representing enterprises with more than $500 billion in combined annual revenues. The BPM Forum’s C-level members engage in research, thought leadership, and knowledge exchange programs around a variety of strategic issues and challenges. www.bpmforum.org

The Chief Marketing Officer (CMO) Council is dedicated to high-level knowledge exchange, thought leadership and personal relationship building among senior corporate marketing leaders and brand decision-makers across a wide-range of global industries. The CMO Council’s 4,000 members control more than $120 billion in aggregated annual marketing expenditures and run complex, distributed marketing and sales operations worldwide. In total, the CMO Council and it’s strategic interest communities include over 12,000 global executives across 90 countries in multiple industries, segments and markets. Regional chapters and advisory boards are active in the Americas, Europe, Asia Pacific, Middle East and Africa. The Council’s strategic interest groups include the Coalition to Leverage and Optimize Sales Effectiveness (CLOSE), Brand Management Institute, and theForum to Advance the Mobile Experience (FAME). More information on the CMO Council is available at www.cmocouncil.org.

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Posted By Vince Ferraro

March 4th, 2010

Media Research Team Finds Approximately 293 Newspapers Folded in 2009, while Counting both Print and Online 1,126 Magazines Shuttered

Vocus has published a study that offers some shocking trends in the media indstry. They offer analysis from Vocus media research experts, while also providing a peek into an increasingly uncertain future. While one could speak of the declining trends in print media, online media was also impacted. What is a marketing person to do? This report helps you identify mega trends and it will help in building your future media plans and strategies.

LANHAM, Md.  January 19, 2009 — Vocus, Inc. (NASDAQ: VOCS) a leading provider of on-demand software for public relations management, today announced it has released its landmark study titled: “2010 State of the Media.” The report covers the four traditional media segments including newspapers, magazines, television and radio – and analyzes the net outcome of 2009, makes forecasts for 2010 and finally looks at what this means to the PR professional.

The report is numbers-driven and key findings include:

• Approximately 293 newspapers folded in 2009, with nearly 100 shuttering in Q1
• Eight magazines with a circulation of 1 million or more ceased publication
• Including print and online, 1,126 magazines shuttered in 2009
• Radio stations gave up more than 10,000 jobs
• More than 100 TV stations were affected by their parent companies filing Chapter 11

“2010 State of the Media” forecasts that major newspapers have probably made as many cuts as possible and that as a result journalists are often “performing dual roles.” The report also takes a look as new media business models and notes that content sharing trends are likely to continue in 2010: “As newspapers diminish, look for more joint ventures between surviving papers and broadcast outlets and an increase in media integration.”

The report, written for the public relations professional, is based on ongoing research by the Vocus media research team. Members of the media and blogging community can request a copy of the complete survey results by sending an e-mail to fstrong-at-vocus-dot-com.

A copy of the report can be downloaded at: http://www.vocus.com/resources/state-of-media/index.asp

Marketing Sherpa also produced a report on Social Media Marketing which is also a good read. While this is a paid study, an informative summary is available for free here.

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Posted By Vince Ferraro