ana

11月 062014
 

I had the opportunity recently to attend the Association of National Advertisers (ANA) “Masters of Marketing” conference. In almost every presentation, each CMO credited their success in the marketplace with an ability to take risks. With the stratospheric growth in digital marketing initiatives and a need for speed-to-market, rapid innovation and experimentation is now part of the day-to-day DNA of the marketing organization. Or is it?

Prosciutto (ham) is not to be confused with Pancetta (bacon). Capisce?

In Italy, prosciutto (ham) is not the same as pancetta (bacon). Capisce?

Tapping into the bacon-obsessed marketing segment (I’m betting the Experian Mosaic segment for this category represents 98.7% of the US population), Kraft’s Oscar Mayer brand created the Institute for the Advancement of Bacon.

Their digital marketing program includes an integrated social media, website and mobile bacon app for iPhone (and a few lucky people who won the “bacon dongle” that attaches to your phone and had has a bacon-smell atomizer). Their latest campaign is the The Great American Bacon Barter, which you can follow on Twitter @BaconBarter.

This pig is not amused.

Not amused by all this fuss about bacon.

Kraft also turned a nationwide Velveeta cheese shortage (during Superbowl time, no less!) into a marketing extravaganza…the Cheespocalypse…by creating an entire social media strategy on the fly to connect Velveeta cheese lovers with available in-store inventory. Now that’s innovation!

Deanie Elsner, CMO of Kraft, attributes her team’s success to “Agile Marketing.” Their agile marketing framework includes three pillars: data, infrastructure, and content. In her ANA presentation, Deanie noted that they were sitting on almost two decades of consumer data within Kraft (that's big data by any standard). They tapped into that data to build out micro consumer segments – they’re currently managing 500 proprietary target segments that help them facilitate a one-to-one conversation with the consumer. With so much first-party data available, they’re able to tap into that information to drive more relevant engagement with consumers.

As engaging as their marketing campaigns are, it’s not all about the creative: Data and measurement underlie every decision they make. They treat innovation as a discipline, not a free-for-all. And just because you innovate, it doesn’t mean that you’re going to get it right every time. Companies like Kraft aggressively use test-and-learn approaches to shape their go-to-market strategies. Their agile marketing framework allows them to execute quickly, and their culture of innovation encourages risk taking. But how do they know what campaigns will work? Deanie’s team mines customer data – in fact, if they predict you won’t eat bacon, you won’t see a bacon ad.

According to a 2014 Gartner survey, 83% of marketing organizations set aside roughly 9% of their annual budget for innovation. That sounds pretty good – except that Forrester Research puts that number at only 11% of marketing organizations. There’s obviously a gap in there. Our observation is that innovation needs more focus in marketing, and data-driven innovation in marketing is still at the ground level.

Mmmmm….do I smell bacon?

tags: ana, Association of National Advertisers, bacon, big data, innovation
10月 062013
 

The results of my test don't matter. Yes - those are actual recent searches of mine.

Who doesn't love a side-by-side taste test?  You get to choose for yourself - awesome! For me, the ultimate taste test is the Pepsi Challenge (Pepsi Cola vs. Coca-Cola), a key feature of the "Cola Wars" since 1975. It's very simple and very effective - even for the audience. So for tech giant Microsoft to take on the dominant search engine Google with it's own Bing search engine, the side-by-side test drive opportunity at the heart of the "Bing it On" campaign was a natural.

It should be no surprise that the Bing it On campaign was planned for multi-screen execution, which I found to be fascinating. Well, the marketing lessons from Microsoft's Bing it On campaign apply to any multichannel scenario, so here are the four main lessons I learned:

Map the customer journey.
Starting and ending with the customer seems so basic, but it's critically important if you want to be effective across multiple channels. Here are some tips for making it happen:

  • Physically map out the multiple exit and entry points.
  • Rationalize your calls to action in context of the overall goal. And understand that the same call to action on every channel is not necessarily the right move. For each channel, try to find the sweet spot - the overlap of what the customer wants to do and what you want them to do.
  • Ensure the right content is served up in the right place. Again - it may not be the same content or the same format in every channel. This is especially true if your website is not mobile optimized.

Develop the content plan.
The goal of a well-planned content plan is to enable a coordinated customer conversation. Each part should reinforce the campaign message and support the overall goal. Tips for a good content plan include:

  • Using the customer journey map, plan content so the story develops across the channels.
  • At each step, customer context has to shape the message. Be attentive to what are they doing when they get the message and how might they be more receptive.
  • For your social strategy, it has to engage people in the conversation they’re already having – and the Bing it On team, for example, was sensitive to the Final Four.
  • For mobile, the challenge is understanding how the user is using the device. One nice idea for Bing it On was to give people the option to “remind me to take the challenge later.”

Involve the analytics team at every step.
Bring your analytics team in at the beginning - when you are mapping out the customer journey. Then keep them involved along the way, because they can help you formulate the right questions so you get the answers you actually need. Specifically, take a test-and-learn approach to optimize ROI and be ready to capture incremental gains when they happen. Then apply them going forward.

This idea of getting the analytics team involved at the beginning is a key success factor at office supplies giant Staples, per Jim Foreman, Director of Circulation and Analytics at Staples. Click here to read a quick succes story about how Staples is driving success with marketing analytics - and Jim Foreman and his team get involved from the beginning of every campaign.

Foster a culture that delivers intended results.
Marketing is always a team sport, frequently including key team members in many other areas of the organization. Knowing that, be attuned to your organizational culture within and among work teams and keep the following tips in mind:

  • A collaborative culture starts with breaking out of siloes, so find ways to get your team to think outside their siloes and align to an overarching marketing goal.
  • Drive operational rigor across disciplines - this is key because execution is what drives the customer experience. If you want a specific experience, you have to orchestrate that outcome.
  • Invest in supporting lasting cultural change.  It doesn’t happen overnight, or even after just a few meetings. For the Bing it On team, one strong catalyst was simply having shout-outs to foster team support and recognition. Find what works for your team and your situation.

For another view on the importance of culture in marketing, download this whitepaper by Argyle Executive Forums called Building a Marketing Analytics Culture, featuring an interview with Adele Sweetwood, VP of Americas Marketing at SAS.

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Karen Starns, General Manager of Consumer Marketing for Bing/MSN at Microsoft, spoke at the 2013 Masters of Marketing Conference of the Association of National Advertisers – an event SAS is proud to be a sponsor of, and an organization that SAS is proud to be a member of.

tags: ana, Association of National Advertisers, marketing analytics, masters of marketing, Multichannel Marketing, strategy
10月 052013
 

It’s very telling that every Walmart greeter has an inviting phrase emblazoned across the back:  “How may I help you?” That simple question and the presence of the greeters in the stores speaks eloquently to the customer-centricity of Walmart, which has been instilled in their organizational culture from the very beginning by their founder, Sam Walton.

What’s interesting about that customer centricity is how their EVP and CMO Stephen Quinn describes its central role in driving innovation at the retail giant. As business over the decades has transitioned through the manufacturing era, the distribution era and the information era, we are now undeniably in the customer era. 

The customer is the boss
Want proof?  Look no further than the improbable success stories of Gangnam Style and Duck Dynasty.  Gangnam Style is the song and video global smash of 2012 – which sprang out of Koren pop music with a silly, strangely compelling dance and video.  Duck Dynasty began as a quirky reality TV series in the USA based on the daily issues and antics of a family of duck-call manufacturers in small-town Louisiana. Still doubtful? Quinn says that WalMart sells “hundreds of millions of dollars” of Duck Dynasty-themed merchandise in its stores. Hey! That’s “SI-rious” evidence right there, if you ask me!  No marketer could have ever promoted their way into that kind of success – it happened organically because customers were the ones who made the choice.

Be purpose-driven
For Quinn, it isn’t simply about customer centricity, but it’s also about how that viewpoint informs an enterprise growth strategy and channeling the resources to make it happen. That’s the role of marketing in his view. It’s about being purpose-driven in a way that’s relevant and valuable for the customer. And just as people change and families change, peoples' idea of what’s valuable changes as well.

What’s valuable for Walmart’s customers has as much to do about low prices (the positioning that Walmart has owned for years), as it does about what those low prices enable. It’s about not ignoring the fact that 60% of the families in the United States live on 25% of America’s income, and knowing that Walmart's low prices help people make ends meet.  That’s where the value is for the Walmart customer.  That's also where the value lies for Walmart because the customer is their source of innovation.

Customer-driven innovation
The idea that innovation comes from the customer is not new. Per Quinn, it goes all the way back to Sam Walton, the entrepreneur-innovator who founded the company.  It also continues today as the customer drives innovation for both retail and technology and by extension, for busines.  Citing a recent Wall Street Journal Article that makes the same point, “The Most Destructive, Unpredictable Force in Tech,” Quinn described how the people who mess up their displays, make demands at their check-out counter and keep coming back week after week are the ones who drive innovation.

And what matters to the customer is what should matter to marketers.

So how does it happen at Walmart? Quinn offered an interesting allocation of marketing resources for innovation:

  • 70% of resources devoted to the proven business drivers,
  • 20% focused on new programs and growth areas, and
  • 10% dedicated to “what’s next.”

As an individual, I don’t consider myself a “Walmart shopper,” for all that might mean. Part of that has to do with the division of labor in our house. But I admit that the new Walmart smartphone app he described is pretty slick and I think my lovely, techno-nerdy wife might really like it. The voice-activated grocery list builder that also allows you to scan barcodes of your pantry items running low is really cool. I also like that when you arrive at the store, the in-store mode alerts you to any specials like “roll-back” items or similar items.

Use customer data to get there
For any business bigger than a mom-and-pop shop, knowing the customer and being purpose-driven comes from using customer data to get the necessary insights. Marketing analytics are what can provide the details needed for an effective strategy. A previous blog post, titled Four ways Walmart uses analytics, gives a nice view of one way it’s happening at Walmart

So consider your own organization.  You might call them the end-user, the patient, the member, the guest, the patron, the client, the consumer or simply the customer. If you want to grow and innovate, then market like Walmart and start by double-checking your marketing messages.  Are they speaking to the issues and concerns of your customers? The answer to that question should tell you where to take it from there.

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Stephen Quinn, EVP and CMO of Walmart spoke at the 2013 Masters of Marketing Conference of the Association of National Advertisers – an event SAS is proud to be a sponsor of, and an organization that SAS is proud to be a member of.

tags: ana, Association of National Advertisers, customer centricity, innovation, marketing analytics, masters of marketing, strategy
10月 052013
 

It’s very telling that every Walmart greeter has an inviting phrase emblazoned across the back:  “How may I help you?” That simple question and the presence of the greeters in the stores speaks eloquently to the customer-centricity of Walmart, which has been instilled in their organizational culture from the very beginning by their founder, Sam Walton.

What’s interesting about that customer centricity is how their EVP and CMO Stephen Quinn describes its central role in driving innovation at the retail giant. As business over the decades has transitioned through the manufacturing era, the distribution era and the information era, we are now undeniably in the customer era. 

The customer is the boss
Want proof?  Look no further than the improbable success stories of Gangnam Style and Duck Dynasty.  Gangnam Style is the song and video global smash of 2012 – which sprang out of Koren pop music with a silly, strangely compelling dance and video.  Duck Dynasty began as a quirky reality TV series in the USA based on the daily issues and antics of a family of duck-call manufacturers in small-town Louisiana. Still doubtful? Quinn says that WalMart sells “hundreds of millions of dollars” of Duck Dynasty-themed merchandise in its stores. Hey! That’s “SI-rious” evidence right there, if you ask me!  No marketer could have ever promoted their way into that kind of success – it happened organically because customers were the ones who made the choice.

Be purpose-driven
For Quinn, it isn’t simply about customer centricity, but it’s also about how that viewpoint informs an enterprise growth strategy and channeling the resources to make it happen. That’s the role of marketing in his view. It’s about being purpose-driven in a way that’s relevant and valuable for the customer. And just as people change and families change, peoples' idea of what’s valuable changes as well.

What’s valuable for Walmart’s customers has as much to do about low prices (the positioning that Walmart has owned for years), as it does about what those low prices enable. It’s about not ignoring the fact that 60% of the families in the United States live on 25% of America’s income, and knowing that Walmart's low prices help people make ends meet.  That’s where the value is for the Walmart customer.  That's also where the value lies for Walmart because the customer is their source of innovation.

Customer-driven innovation
The idea that innovation comes from the customer is not new. Per Quinn, it goes all the way back to Sam Walton, the entrepreneur-innovator who founded the company.  It also continues today as the customer drives innovation for both retail and technology and by extension, for busines.  Citing a recent Wall Street Journal Article that makes the same point, “The Most Destructive, Unpredictable Force in Tech,” Quinn described how the people who mess up their displays, make demands at their check-out counter and keep coming back week after week are the ones who drive innovation.

And what matters to the customer is what should matter to marketers.

So how does it happen at Walmart? Quinn offered an interesting allocation of marketing resources for innovation:

  • 70% of resources devoted to the proven business drivers,
  • 20% focused on new programs and growth areas, and
  • 10% dedicated to “what’s next.”

As an individual, I don’t consider myself a “Walmart shopper,” for all that might mean. Part of that has to do with the division of labor in our house. But I admit that the new Walmart smartphone app he described is pretty slick and I think my lovely, techno-nerdy wife might really like it. The voice-activated grocery list builder that also allows you to scan barcodes of your pantry items running low is really cool. I also like that when you arrive at the store, the in-store mode alerts you to any specials like “roll-back” items or similar items.

Use customer data to get there
For any business bigger than a mom-and-pop shop, knowing the customer and being purpose-driven comes from using customer data to get the necessary insights. Marketing analytics are what can provide the details needed for an effective strategy. A previous blog post, titled Four ways Walmart uses analytics, gives a nice view of one way it’s happening at Walmart

So consider your own organization.  You might call them the end-user, the patient, the member, the guest, the patron, the client, the consumer or simply the customer. If you want to grow and innovate, then market like Walmart and start by double-checking your marketing messages.  Are they speaking to the issues and concerns of your customers? The answer to that question should tell you where to take it from there.

---------

Stephen Quinn, EVP and CMO of Walmart spoke at the 2013 Masters of Marketing Conference of the Association of National Advertisers – an event SAS is proud to be a sponsor of, and an organization that SAS is proud to be a member of.

tags: ana, Association of National Advertisers, customer centricity, innovation, marketing analytics, masters of marketing, strategy
10月 262010
 
As mentioned in a previous post, SAS was again a sponsor of the Masters of Marketing Conference, the annual executive conference held by the Association of National Advertisers (“ANA”). I had the pleasure to attend the sessions of this extraordinary event, which brings together the marketing leadership teams of the ANA member companies, which reads like the list of Fortune 100 companies.

One of the sessions struck a few chords with me, and I think they are worth sharing. Graciela Eleta, the CMO of Univision spoke with her C-level counterpart at Kraft Foods, Howard Friedman, about multicultural marketing and Kraft’s successful efforts at targeting these markets. Along the way, they highlighted the importance of the Hispanic market to current and future market growth for all companies, as well as the reasons that Kraft has been so successful in this area.

Univision’s Eleta laid out the plain facts of why companies that ignore the Hispanic market forgo a big source of growth, considering:

  • 46% of the under-18 market are minorities,
  • 95% of all growth in the teenage market is Hispanic,
  • 100% of growth in the 18-49 market is Hispanic,
  • And the U.S. is fast becoming a majority-minority market, which is almost or already the case in cities such as New York, Chicago, Los Angeles, Dallas, Miami and Phoenix.

She provided a smooth segue to Friedman’s illustration of Kraft’s multicultural marketing by calling attention to how the most successful companies engage in multicultural marketing over the long term and don’t treat it as a one-off, or regard it as a project to give to the bilingual intern and use left over budget money.

Kraft's Friedman summarized their approach to Hispanic marketing, and what he laid out struck me as dovetailing so neatly with accepted approaches for success in social media marketing:

  • Don’t take shortcuts – devote as much attention and resources as you would to any mainstream programs.
  • Listen more than they talk – Kraft engages with their market over the long haul to be sure they are in line with what the market wants and needs.
  • Adapt and evolve quickly, in pace with the market - which is not the same as being trendy. I took this to mean that they demonstrate how they don’t just listen, but understand the market and stay in sync with it.
  • Integrate Hispanic marketing at a strategic level (not just execution) – they do not treat multicultural marketing as side-show, but it is part of the planning and results reporting all the way up to the c-suite at Kraft.

To Eleta and Friedman’s points, I have watched Univision programming for years to keep my Spanish-language skills current, and I understand their points exactly. As a multilingual marketer, it’s usually clear when a company is just translating their mainstream messages into Spanish, versus one that is truly engaged in multicultural marketing. And as Friedman outlined Kraft’s approach, and as I drew the parallels to social media marketing, it all pointed to one, beautifully simple fact:

Kraft is successful with the Hispanic market because it is relevant.

They seem to have achieved relevance because the content, timing and channel of its messages are in accordance with the needs and wants of their target market, which is enabled by taking the time and effort to listen and understand. Also, they draw linkages and use appropriate references so the target market relates to the message. And they keep relevant by making changes when needed and staying engaged over the long haul. Then I remembered hearing all this a few times before – the first time was probably in Marketing 101. So focusing on the fundamentals may be what helped Kraft be relevant to the Hispanic market.

¡Felicidades, Kraft! Relevance is easier said than done, but fundamentally important for marketing success. Let me know your thoughts and stay tuned. I’ll be exploring the theme of relevance in marketing in the next few posts.