FEATURESGodfather vs GamechangerPhilip Kotler

Social Media: ROI

REPORTSCookie Law: are you up to date?

VIEWSA view from inside: Facebook

COMMENTSMarketing Philosophy

Case study: mobile marketing

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CONTENTS

5 Editorial

6 thEGodfathErandthEGamEchanGEr

Peter Fisk describes his “battle for the future of marketing” with Philip Kotler.

12 crackinGthESocialroicodE:SocialmEdiaPErformancEindicatorSdEmyStifiEd

15 iSitallaboutthEcuStomEr?

18 GlobalSocialnEtWorkinG:VErSion2.0

Update on a fast changing world wide web.

23 communicationSandrEPutationmanaGEmEnt

An insight into Facebook.

26thE“cookiElaW”

What should businesses be doing to ensure compliance?

32 SEminalarticlES–PricinG

The second in a series of seminal articles that all Marketers should read.

34 ittakESaVillaGE

The Realities of Social Media Hiring and Management.

39 undErStandinGthESPhErEofinfluEncE

43 thEimPactofEthicalconSumEriSmonthEukfaShionandclothinGinduStry

An abstract from Vidyani’s submission, which was awarded a distinction in the CIM’s Postgraduate Diploma.

50QuStodiancaSEStudy

Paper and case study prepared by Qustodian, a company formed in 2009 to allow users more control over what information they receive, when and how.

52 PhiloSoPhyofmarkEtinG

Why do we need Marketing?

54QuEStionSthatlEaVEamark

By Don Moyer

FEATURES

REPORTS

VIEWS

COMMENTS

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Publishing Editor: Emma Garland

Chairman: Charles W. Nixon

Contributors: Charles Nixon, Peter Fisk, Birserka Anderson, Nigel Clark, Paul Woodhouse, Debbie Frost, James Grace, Paul Fifield, Jay Baer and Amber Naslund, Neil Cooper, Vidyani Warnakulasooriya, John Roberts, Terry Nicklin, Don Moyer, Melissa Nixon and Shane Minett.

Contact: Cambridge Marketing Press 1 Cygnus Business Park Middle Watch Swavesey Cambs CB24 4AA

Tel: +44(0) 1954 234944 Fax: +44(0) 1954 234950 Email: emma@marketingcollege.com

Issue IV Autumn 2012 ISSN 2047-962X

CONVENTIONS:• Wearemarketersnotmarketeers;wearenotcavaliers.• WepracticemarketingnotadvertisingorPR.• Whenwerefertoproducts,wemeanproductsandservices.

Otherwisewerefertoofferings.

Most Cambridge Marketing Review articles are accompanied by a word cloud from wordle.net. You can use our clouds to assess swiftly the themes of the article: the larger the word, the more times it appears in the text.

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If you would like to comment, please contact the editor, Emma Garland: Tel: +44(0) 1954 234941 Email: emma@marketingcollege.com

Front cover illustration “7ps of marketing”: Amanda Barrett

Cambridge Marketing Review is published quarterly by Cambridge Marketing Press

Printed by Cambridge Digital Press, Cambridge: www.cambridgedigitalpress.com

The views expressed in contributions to Cambridge Marketing Review are not necessarily those held by the publishers.

©2012 Cambridge Marketing College. All rights reserved. You may photocopy this magazine for collaborative study purposes. Individual images under licenses listed below: Page 37 cartoon © Robert Barrett-Sprot

5

aspublisherofCambridgeMarketing Review, it gives me great

pleasure to welcome you to thisanniversaryedition. It isayearsincewepublishedthefirsteditionandthejournalhasgonefromstrengthtostrength.Iwouldlike topay tribute toourpreviouseditorCraig Stone, who has put tremendouseffortintothisedition,andwelcomeourneweditor,EmmaGarland.

“Understandyourcustomersandfromthiseverythingelsewillfollow”.Withorientalsimplicity,KenichiOhmaeinhisseminalwork‘ThemindoftheStrategist’crystallisestheessenceofmarketingasitusedtobe.However,newthemesandtimeshaveemergedoverthe thirtyyears since itwaswritten.Now, thedemocratisationofmarketsthroughtheworldwidewebandtheempowermentoftheconsumerthroughsocialmediaandtheeducation,meanthattheworldhaschangedsignificantly.Whatwehavetriedtodointhelastfoureditionsofthejournalistobringmarketingintothe21stcenturytoidentifytheissuesandtrendsthatwillaffectmarketersandtodiscussandconsidertheroleofmarketingintheeconomicprocessofsociety.

Inthisglobaleraofmarketing,allcompanies,largeandsmall,canengageintheinternationalmarket,allhavetheavailabilitytoengagewiththeirconsumersinadialogueallhavetheabilitytosurfthemarketplaceforideasandindeedforfunding.However,doesthismeanthateverythingnowbecomes‘crowdsourcing’.Whatistheroleoftheentrepreneur?Whereistheroleoftheideasperson?Where is the role of the innovator?These are issues thatwill beconsideredinthefiftheditionwhichwillbededicatedtotheroleof theentrepreneur.Asever,we look forward toyourcomments,feedbackand suggestions fornewarticles, I hopeyouenjoy thisedition.Forcommentsandfeedback,pleaseemail:editor@cambridgemarketingpress.com

Charles W. Nixon Chairman

A WElCOME TO ThE ANNIVERSARy EdITION

From Charles W. Nixon, Chairman of Cambridge Marketing College

ChARlES W. NIXoN

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PETER FISK

ThE gOdFAThER ANd ThE gAMEChANgER

Peter Fisk describes his “battle for the future of marketing” with Philip Kotler – and what he learnt about, and from, the grand old man of marketing

June in Cairo… You imagine greatpharaohsstandingbeforethepyramids,

but in the midst of the first democraticelections (in 7,000 years, some localssay), the choice for Egyptians was morepolarisedthanever,achoiceinsomewaysbetweenthefutureandthepast.

Whilstthe1,000+audienceponderedtheirfuture,PhilipKotlerandIwereheretoexplore the futureofmarketing, inanevent that was (slightly embarrassingly!)billedas“TheGodfatherversusTheGamechanger”.Andhere, inthemidstoftheArabSpring,Iwastoplaythe“gamechanger”.

I lIkE PhIlIP kOTlERYeshehadjustcelebratedhis81stbirthday,wrotehisbestbooks40yearsago,takesafairlynarrow,academic,andUSA-centricviewoftheworld(althoughhislatestbooksarecollaborationswithAsianandEuropeanauthors)…butoverthedecadeshehasarticulatedtheprinciples,rulesandframeworksonwhichmuchofourmarketing,andmostofusmarketers,havebuiltcareers.

Having started out as an accountant, he has added rigourandrespect toourprofession.Hestill talksabout4Ps (withabitof customer-centricity thrown in, I was pleased to note), but hecommandsauthorityandaudiencesbecauseofhisgreatbelief intheprimacyofmarketing.

We talked at length.About the increasedprofessionalismofmarketing, about the impact of digital and social technologies,aboutensuringthatmarketinghascreativeandcommercialedge,itsevolvingroleintheboardroom,andthedifferencesinattitudesofmarketersthatwehaveexperiencedaswetravelaroundtheworld.

Kotlerstartedbyremindingtheaudiencehowmarketingwasbornoutoftheneedtoprovideleadsforsalespeople,movingtothenecessitytoalignsalesandmarketingtoday,andnowtothinkagainabout howmarketing adds value. He questioned Kevin Roberts’notionthat“marketingisdead”,althoughIthinkthe“Lovemarks”author is really just provoking us to think beyond pushing logosandmessagesatpeople,andstartengagingthem.Hetalkedaboutthe increasing distrust of consumers in brands, and the needto reconnect with them. He talked about the huge potential ofdatabases, socialmediaand technology ingeneral, andhowwearejustatthebeginningofhowwecanusethem.Andhetalkedofmarketing’sneedtore-establishitselfwiththeleadersofbusiness,andwithcustomers.

He described his solution as “Marketing 3.0” – the title ofhislatestbook(whichwasactuallyonlyonediagraminthelast5minutes!).

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“Marketing1.0”(product-centred)waslargelyaboutthemind,“2.0” (customer-centred)about theheart,andnow“3.0” (values-centred) is about the spirit, he suggested. He based this largelyon JagSheth’sbook“Firmsof Endearment”althoughmostof theexamples(includingBritishAirways,“ChildreninNeed”andLevi’ssupportingAIDS awareness) involved charitable initiatives ratherthanfundamentalbusinesschangeormarketinginnovation.

This was Kotler’s big message, but was preceded by manyothers–usefulreminders,butlittlenew–andsupportedbyratherconventional stories of Blackberry and Dell, GE and P&G (andsurprisingly,Cherry,theJapanesecarbrand!).Hetalkedabout:• The3bucketsformarketinginvestment–managethepresent

(cut the fat, drop unprofitable products); selectively forgetthe past (new products already there); and create the future(developanewstrategicintent).

• The6tasksofaCMO–representthevoiceofthecustomer,monitor changing markets, be the steward of the corporatebrand, upgrademarketing technology and skills, add insighttothecorporateportfolio,measureandaccountformarketingfinancialperformance.

• The4tasksofmarketing–relationshipmarketing(customers,channelsandpartners),integratedmarketing(communication,products,channels),responsiblemarketing(ethics,environment,legal),andinternalmarketing(functionandorganisation).

yES hE hAd jUST CElEbRATEd hIS 81st

bIRThdAy, WROTE hIS bEST bOOkS 40 yEARS AgO… bUT OVER ThE dECAdES hE hAS ARTICUlATEd ThE PRINCIPlES, RUlES ANd FRAMEWORkS ON WhICh MUCh OF OUR MARkETINg, ANd MOST OF US MARkETERS, hAVE bUIlT CAREERS

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• The5marketingshifts–fromcreatingmarketingstrategiestodriving business impact, controllingmessages to galvanisingnetworks, managing investment to inspiring excellence,operationaltocustomerfocus,improvementtomakingchange.

He finished with his description of the marketing process (heclearlybelievesmarketingismoreprocessthanfunction).Hetalkedabout the four stages of “plan, manage, execute and measure”;and the primacy of brand management, customer relationshipmanagement and integrated communications. Whilst this mightsoundlikemarketing101,andfranklymostoftheaudiencefeltthattoo, it’samazinghowmanycompaniesstill ignoresomeof thesefundamentals.

SO WhAT dId I MAkE OF ThAT? Kotlerhasinspiredageneration,ormore,ofmarketersandcanstillattracthugeaudiences(rumourhasitQatarevenofferedhim$10mtoonlyeverspeakintheircountry!).Indeed,asdemonstratedbyhiscurrenttravels,stoppingoffinCairobetweenTehranandSkopje,itisoftentheemergingmarketswhopaythemost,andhangontohiseveryword.Buthisideas,materialsanddeliveryareoutdated.Whatwereallyneedistobeabletocommandhisauthoritybutwithfresh,innovativeandpracticalconcepts,messagesandinspirationforthenext generation of marketers, and for entrepreneurs and leadersseekingtowininanewbusinessworld.

Whatreallysurprisedme,wasKotler’scompleteomissionofwhatIvaluedmost.Thiswasn’tbasedondisagreement,butIthinkasymptomofasuperstarwrappedupinhisoldworld,andnothavingtheopportunity toseewhat today’snewgenerationof innovativecompanies,expertsandpractitioners–particularlythosebeyondthemarketingmainstream–arethinkinganddoing.Wordslikebusinessmodel,collaboration,andinnovationweren’tmentionedonce.

CAIRO’S TAhRIR SqUARE… FOCAl POINT OF ThIS yEAR’S “ARAb SPRINg” SyMbOlISINg ThE POWER OF CROWdS ANd dESIRE FOR ChANgE

Values-based Marketing … adapted from “Marketing 3.0”, by Kotler, Kartajaya and Setiawan

Mind Heart Spirit

Mis

sion Deliver

satisfactionRealise

aspirationPractice

compassion Why

Vis

ion Profit

-abilityReturn-ability

Sustain-ability W

hat

Val

ues

Bebetter DifferentiateMakeadifference H

ow

Marketing 1.0 Marketing 2.0 Marketing 3.0

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I deliberately started from a different place. The incrediblydramaticandexcitingchangesweseeinourmarketstoday–fromtechnologicaldisruptionsandnewpossibilities,borderlessmarketsand empowered consumers, to economic crisis and politicalrevolutions.Thesepresentthebiggestchallengesandopportunitiesformarketersasmarketsareshaken-up.

Businessneedsmarketersmorethanever–notjusttocreatenewproducts,andcommunicatebrands,buttomakesenseofnewopportunities,tonavigatethenewglobalanddigitalworlds,andtobringrethinking,refocusandreinventiontobusinessandbrandsingeneral.Marketersareinthefuturebusiness,thechangeagents,thecatalystsandfacilitators.There’sneverbeenamoreimportant,orexciting,timetobeamarketer.

Or as I called the new marketers, the “gamechangers”…Whilst Ihugely respect theexperienceand intelligenceofKotler,andhispeers,weallneedtocreativelyrethinkhowweapplytheseenduring disciplines to today’s volatile and vibrantmarkets.Thisisnottosayweshouldabandontheanalytics,breakalltherulesandbecomesocialmediajunkies.Weneedabitofboth–analyticandcreative,physicalanddigital,strategicandtactical.Weneedtoensureitallworkstogether.Andmostsignificantly,weneedtoget even better at delivering the right results, for customers andbusiness,whilstalsoconsideringhowwemaketheworldaslightlybetterplace.

In exploring “gamechangers” I discussed some of the newattitudes and capabilities demanded of marketers, and theirbusinesses.However,ratherthanpolitelymoveonfrom“Marketing3.0”Ididfeelweneededtogetintowhereweagreed,andwherewedidn’t.WhatIshouldsayfirst,ishowmuchwehadincommon–theimportanceofmarketersinbusiness,theneedtointegratemarketingbeyondanarrowcommunicationview,thelatentpowerofdigitaltechnology,and theneed for strongprocessandcapabilities.Weshareapassion for theprofession,andhowitcanbea force forgood.

HoweverIdobelieve“Marketing3.0”couldbeamuchstrongerconcept,particularlybydefinitionitshouldarticulatethefutureofmarketing. I totally support the shift to more human, emotionalvalues,butinparallelwithamorestrategic,innovativeandsystem-basedapproachtoo.Ofcoursewehadlimitedtime,andthiswasanartificialsituation,butIdidfeelKotlerwasmissingsomeofthemostimportantareasofmarketingtoday.These,inmyviewwerehis“blackspots”,conceptswhichjustweren’tonhisradar:• Strategy…Kotlertalkedaboutinvestmentandfocus,positioning

andsegmentation,butwhichmarketsshouldyoubeinanyway?

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Worldchanging, gamechanging… marketers are the change agents, finding new directions for success in a volatile but vibrant world

lEgO... WINNINg by bUIldINg COMMUNITIES OF CUSTOMERS WhO CO-CREATE ANd ShARE ThEIR bRANd ExPERIENCES

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Inaworldwithoutboundaries, thechoiceofcategoriesandgeographies is bewildering. As Kodak and Hewlett Packardhavelearntthehardway,thesechoicescandeterminebusinesssuccess or failure. Marketers need to develop a “marketstrategy”andmaybea“customerstrategy”too,beforethinkingabouttheexecutionalaspectsofmarketingdelivery.

• Innovation…Kotler talked about product development stillbeingthecentralaxisofmarketing,butwithoutapplyingthatsame creativity to the wider business and market model. Ifmarketersdon’tchampioninnovationacrossthewholebusiness,thenwhodoes?Ideasintoconcepts,brandsintopropositions,newchannels,newprocesses,newexperiences…marketersshould be the innovation drivers, innovating processes andexperiences,butalsocreatingthefuture,andthereforeatthetoptable.

• Collaboration…Kotler referred to “an embryonic idea ofco-creation which some companies are exploring”. Indeedcrowdsourcing and open-sourcing, collaborating withcustomers or partners, and more generally, networks arefundamentally changing the relationship between customersandbrands.AsCokeandMTVwillnowtellyou,it’sthetrustandloyaltybetweencustomersthatismostpowerful,anditistheirideasandparticipationthatcanreallymoveyouforward,asLegoandThreadlesshavefound.

• Sustainability…Kotlerdescribesamorevalues-based,spiritualapproach to marketing. And indeed customers are moreemotional, andmarketingmore intangible thanever.Buthedescribed CSR as essentially being about brands donatingto good causes, being charitable. What about sustainableinnovation?Usingthepowerofbrandsandbusinesstorethinkhowwecanstillachievesuccess,buttodogoodforpeopleandtheworldatthesametime.Creatingbetterproductsthat

aregoodfortheworld,andmakemoneytoo.LookatGrameenDanoneorNikeConsideredastransformationalexamples.

• Business models…Kotler seemed a little defensive thatmarketingwas still being treatedasa support function,withtactical impact. He agreed we needed to think bigger, andinfluencetheorganisation.Butthementionofbusinessmodelscausedapuzzledlook.Didwemeanindustrialengineering?No,wemeanmappingouthowthebusinessworks–conceptuallyand commercially. And then embraced by companies likeAlibabaandSkype,SpotifyandZipcarstorevolutionisetheirmarkets.Interestinglyhe’dnevercomeacrosstheterm.Buttohiscredit,hewasinquisitive,andwantedtolearnmore.

Looking at that list, youmight say – as I did – that they are themost important drivers of change and growth inmanyof today’sleading brands. Going further, I’d argue that they are some ofthe most valuable dimensions of “gamechanging” brands… the

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Peter Fisk is a bestselling author and inspirational speaker, combining the most inspiring ideas and practical action, and an in-demand advisor

to business leaders around the world.

he is currently writing his new book “The Gamechangers” about the new generation of businesses – from Alibaba to Zipcars, Abercrombie to Zynga – who are transforming markets with bolder brands, smarter

innovation and clever marketing. They play by different rules, embracing the growth of emerging markets and power of digital networks, human

design and social entrepreneurship, and they win with better results.

If you would like to contribute ideas or case studies, email him at peterfisk@peterfisk.com

Peter leads GeniusWorks, a strategic innovation business based in london and Budapest, Istanbul and Dubai, that works with senior

management to “see things differently” – to develop and implement more inspired strategies for brands, innovation and marketing.

Gamechanger is a strategy accelerator for leadership teams, Innolab is a facilitated innovation process based on deep customer insights and

creative thinking, and BrandOptima is a platform to develop better brands and brand portfolios.

his previous books included: Creative Genius which brings together entrepreneurs and artists, rockstars and rocket scientists, in “the essential guide to innovation for leaders, visionaries, and border

crossers”. Marketing Genius which explores the left and right-brain approaches to competitive success (translated into 35 languages), Customer Genius which describes how to build a customer-centric

business, Business Genius which is about inspired leadership and strategy, whilst People Planet Profit which explains how to grow, and be

good.

Peter grew up in the remote farming community of Northumberland, in the North East of England, and after exploring the world of nuclear physics, joined British Airways at a time when it was embarking upon

becoming “the world’s favourite airline” with a cultural alignment around customers.

he went on to work with many of the world’s leading companies, helping them to grow more profitably by becoming more customer– centric in their structure, operations and leadership. he works across sectors, encouraging business leaders to take a customer perspective,

and learning from different types of experiences. his clients include American Express and Aeroflot, Coca Cola and Cooperative Bank,

hSBC and lastminute.com, Marks & Spencer and Microsoft, o2 and orange, Philips and Red Bull, Shell and Tata Steel, Teliasonera and

Turkcell, Vitra and Virgin, Visa and Vodafone.

he was also the transforming CEo of the Chartered Institute of Marketing, the world’s largest marketing organisation. he led the

strategic marketing consulting team of PA Consulting Group, was MD of Brand Finance and partner of The Foundation, before founding

his own business, the Genius Works. he was recently described by Business Strategy Review as “one of the best new business thinkers” and is in demand around the world as an expert advisor and speaker.

Find our more at www.theGeniusWorks.com

new generation of brands and businesses, who are seizing theopportunitiesofchangetoredefinetherulesofmarketing,reshapemarketsintheirvision,andwininnewways.

Whilst large, established companies struggle to respond tothespeedofchange–andinsteadprefertooptimisetheefficiencyandperformanceofwhattheyalreadydo,thisnewgenerationofcompanies(typicallysmall,someofthemstart-ups,andincreasinglyfromeastnotwest),arethinkingbiggerandactingfaster.

Air Asia has brought a new model to airlines, combiningthe efficient networks and scheduling of low-cost airlines, withthepremiumserviceofSingaporeAirlines…similarlyCurrentTVdisruptsMTVwithauser-generatedmodelandengagingcontent…cloud computing innovators Rackspace are rapidly disruptingMicrosoft’s software dominance… frugal innovation at Tata isfundamentallychallengingtheproductionmindsetofBMW,whilstlithiumoxidefuelledTeslaisevenputtingPorschetoshame…Ingaming,ZyngadisplacesElectronicArts(andmaybeFacebooktoo),newfinancialbrandslikeZopachallengeHSBC,anddruggiantslikePfizerarebeingreplacedbythelikesofEpocratesandWuxiPharmatech.

These companies, brands andmarketers, are playing a newgame.Theyseetheirmarketsdifferently,andtheywininnewways.Theydon’twinthroughpowerandpush,measuredbysizeorshare.Theywinthroughvisionandfocus,engagementandvaluecreation.

“Marketing3.0”,definedinabroadersense,willbeabravenewworldofmarketing.Ofcourse,yourchallengeasamarketerisnottosimplyimitatethelatestideasandemergingpractices,butto“mash-up”thebestofthebest,toconnectandalignthemintorelevantanddistinctivepropositionsforyourbusiness,andtoapplythemincreativeandmagicalways.

© Peter Fisk 2012

MARkETERS NEEd TO dEVElOP A “MARkET STRATEgy” ANd MAybE A “CUSTOMER STRATEgy” TOO, bEFORE ThINkINg AbOUT ThE ExECUTIONAl ASPECTS OF MARkETINg dElIVERy

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CRACkINg ThE SOCIAl ROI COdE: SOCIAl MEdIA PERFORMANCE

INdICATORS dEMySTIFIEd

BISERKA ANDERSoN

SocialmediaROI has long beenoneofthebiggestmarketingconundrums

–atoughnutthatbusinesseshavetriedtocrack,withvaryingsuccess.Andnow,withsocialmedia losing its initial “newshinyobject”lustreandmarketerscomingroundfromaperiodofeuphoriasurroundingthesocialmediahype,thetimehascometosoberupanddelveintomoreheftyissues.Simply put, social media marketing hasmoved fromaperiodofexperimentationinto a period of predictive evaluation. A CEO and a CFO willnormally ask: “Socialmedia sounds great…butwhat’s the ROI?Andhowcanweensureitisworththeinvestment?”Aremarketerspreparedtoanswerthesequestionsinadefinitiveway?

Judging by the overwhelmingmajority of industry opinions,determining the monetary value of social engagement is one ofthebiggestchallenges forbrands.According toa recentstudybyLenskoldGroup,citedbyRadian6,amere20%ofmarketersfeelthey canmeasure socialmediaROI.The same report found that48% of marketers for whom measuring social media is a highprioritysaytheirfocusonanalyticsstemsfrom“thepressuretoreportquantified incomes”.Meanwhile, 19%of those forwhom socialmediameasurementisnotaprioritysaythattheydon’thavedefinedmetricsorobjectives.ThesestatsindicatetwocentralthemestothecurrentsocialROIdebate–ononehand, therisingpressuresonmarketerstoprovethebusinessvalueofsocialmediaintheBoardRoom,andontheother–acrisisintheconceptofsocialmetricsandKPIs,makingsocialROIlookdauntinglyimmeasurable.

ThE bIg METRICS dEbATE: FINdINg ThE RIghT kPI ‘COCkTAIl’ Naturally,companieshavedifferentbusinessobjectivesandsocialmediabusinessgoals,andtherefore,anyattempttoapplyabroad-brush approach to social performance measurement is doomedtofail. Ifabusinessisdrivenbysales,viewingsocialactivitiesinthe context of the sales cycle is critical. In this instance, social conversion rate maybe themost prominentmetricwhose valuecould be used to inform predictive analytics – and future socialengagementstrategies,inturn.

If, although highly unlikely, a company is interested innothing more than raising brand awareness, boosting its socialreach or creating a community of loyal followers, social media engagement metrics,suchasnumberoffansandfollowers,numberofinteractions,audienceresponseratesandrateoffangrowth,arethebestKPIstodeterminesocialmediavalue.(Table. 1)

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Achieving influence in the digital space, a concept takenfromthedomainofPRandcomms, isbecomingan increasinglyprominent approach not only among brand-awareness-focusedbrandsbutalsothosedrivenbysales.MarkShaefer,authorofReturnonInfluence,forexample,arguesthatsocialmediaactionssuchasretweetsandlikesareatestamenttoabrand’sinfluence,andthatthose“effects”areprovingtobemeasurableandcost-effective.

Of course, going back to business objectives, the picture isusuallyneverblackorwhitesoitisincumbentonanorganisationtofindtheright“cocktail”ofsocialKPIsbycloselyaligningmetricswiththecompany’sspecificsocialmediagoalsandbroaderbusinessobjectives.A brand that has famously succeeded in determiningthe right “mix” ofmetrics of performance indicators to evaluateperformanceisProcter&Gamble.Accordingtoitschiefmarketingofficer,MarcPritchard,citedinMarketingMagazine,thecompanyhasbeenusingaproprietaryMarketMixModellingsystemformorethan ten years,withmore andmore resources being invested insocialchannels.Themonetaryreturnonmarketingspend is thencalculated through econometric analysis bymeasuring sales andspending,andcompetitorcomparison.

Soensuring thatacompany tracks the rightmetricsandhastherightmeasurementtoolsinplaceisaparamountprerequisiteformeasuringsocialmediaperformance.Thismeansunderstandingthespecificsofthecustomerjourneyandactingaccordinglywiththeviewtomeetingprospectexpectations.

Asales-pipefocusedviewoftheuserexperiencewithabrand,forinstance,indicatesthefollowingmilestones:• Raisingbrandawareness(topofthefunnel)

• Prospectengagementandleadconversion(middleofthefunnel)

• Salesconversion(bottomofthefunnel)

Thesestagesareequallycritical,astheyallleadtothecovetedgoal–generatingquality leadsand turning them intocustomers.ButitisthebottomofthefunnelperformanceindicatorsthathaveadirectlinktoROI.Usingclosed-loopanalyticsofferedbymarketingautomation tools helps estimate the exact ROI of anymarketingeffort,includingsocialmedia.

TAblE 1 SOCIAl MEdIA METRICS

Social media engagement (influence)numberofinteractions,likes,retweets,replies,comments

Pros Indicates reach

Cons No direct correlation to sales

Solution Enable conversion directly on the social channels themselves

Traffic from social media (SEO value)thepercentageofuniqueorreturningwebvisitors thatcomesfromsocialchannelstoblogsandlandingpages

Pros Potential for lead generation, which could be measured

Cons Impossible to gauge brand sentiment

Solution Place social sharing buttons on your website to enable content sharing, which indicates brand endorsement

Social conversion rate (the sales metric)thepercentageofvisitorsfromsocialmediathatconverts

Pros Direct correlation to the bottom line

Cons Impossible to track top of the funnel to bottom of the funnel activity through traditional marketing methods

Solution Closed-loop analytics, which shows a 360-degree view of the customer journey – from the top to the bottom of the funnel

USINg lINgUISTICS TO MEASURE ROIIn its attempt to solve the socialmediameasurement challenge,Bottom-LineAnalytics has come upwith a predictivemodellingapproachbasedonanalgorithmdevisedby(!)linguists.Themetric,calledSocial Engagement Index collectssocialdatainfoursteps:

1 Allsocialmediachannelsareminedforbrandcontextconversations,e.g.brandmentions.

2 Conversations are parsed into positive and negativereviewgroupsandfurtherdividedintokeytopics.

3 Engagement index isderivedusing30 linguistic rulestoscoreminedbrand/topicsocialmediaconversations.

4 Metricsareaggregatedandtime-codedbyweek.

Thefiguresarethenlinkedtoclientsalesanddemand,andthus,thecorrelationbetweenbrandsentimentandsalesisestimated.

ThEy All lEAd TO ThE COVETEd gOAl – gENERATINg qUAlITy lEAdS ANd TURNINg ThEM INTO CUSTOMERS

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METRICS≠ROITherearenumerousblogpostsdealingwithsocialmediaROIthaterroneouslyequatethebusinessvalueofsocialmediatothemetricsusedtomeasureit.Toacceptthisasatruismwouldbetantamounttofocusingonthebusinessbenefitsandforgettingthatthereareanycostsofinvestmentinvolvedinthesocialmediaendeavour.

While there are lots of “universal” formulae for measuringsocial ROI out there, to recommend any one of them wouldbe tooversimplify thewhole socialROIdebate. Every companyhas its own way of calculating costs and there is no one-size-fits-all solution for determining the right mix of social mediaKPIs. Just as socialmedia performance indicators are a variablethat is unique to each brand, so should be the ROI formula acompanyapplies.

ThE kEy TO EFFECTIVE SOCIAl MEdIA ROI MEASUREMENT: FUll INTEgRATIONTheprocessofmeasuringsocialROIcanbenefitfromtheuseofaunifiedmarketingautomationtool,backedbyalynchpinholisticstrategy,whichviewssocialmediaactivityandperformanceinthecontextofthebroaderbusinessobjectives.Aninboundmarketingstrategy,forexample,allowsyoutoapproachsocialmediaanalyticswith an integratedmindset and to “de-silo”marketing and salestowork around a commongoal that is alignedwith a business’short-termtargetsandlong-termobjectives.Thiswillnotonlygivethetwoteamsa“biggerpicture”viewofwhatitistherespectiveorganisationistryingtoachieve,butitwillalsohelpencourageacollaborativeapproachtoidentifyingtherightmetrics,takingintoaccountwhatareusuallythetwosidesofthesamecoin.

Research by PulsePoint identified embracing full-funnelinboundmarketing thinking based on a 360-degree view of thecustomer journey as the key to bridging the gap between theconsumerandexistingdigitalmarketingpractices.Toachievethat,marketersneedreal-time intelligence thatonlyunifiedmarketingautomation platforms, with their all-in-one tracking, testing andconversioncapabilities,canoffer.SoforeffectivemeasurementofsocialmediaROIyouneed the integratednatureof an inboundmarketingstrategycombinedwith thegranularanalysisprovidedbyanall-in-onemarketingautomationdashboard, suchas thoseoffered by SaaS (software-as-a-service) providers like HubSpot,EloquaandMarketo.

As the demands for relevant social content increase, anintegratedapproachtomarketingandsales,aninboundmarketingstrategy and the use of a unifiedmarketing automation tool arethe key to tailoring your content to your specific audience andidentifyingtherightmetricstotrack.Armedwiththisintelligence,you should be confident next time you have to face tough ROIquestionsintheboardroom.

Thebenefits aremultifarious –notonlydoes this prove thebusiness worth of your social media efforts but it offers critical

Biserka Anderson, Mlitt (Dist.), is Content Marketer at Brightfire, an inbound marketing company and a hubSpot Gold partner with offices

in london and Glasgow. She has worked as a journalist, editor and marketing professional for the better part of a decade.

intelligenceforfuturesocialengagement,thusmakingyoursocialofferingmorerelevanttoyouraudience,boostingsocialengagementandultimately,sales.

hubSpot marketing automation tool automatically tracks metrics such as visit-to-lead and lead-to – customer conversion rate, while also gauging social reach by channel.

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IS IT All AbOUT ThE CUSTOMER?

We all love a definition don’twe? Primarily so we can

refine, tweak or rewrite it completely.For Marketers of course, there is nodefinitionthatreceivessomuchattentionas that of ‘marketing’ itself. The UKChartered Institute of Marketing (CIM)hassettledon“themanagementprocessresponsible for identifying, anticipatingand satisfying customer requirementsprofitably”,althoughitprefacesthiswithsomecautionarywordsthat“inthefast-movingworldofbusiness,definitionsrarelystaythesame”and“Marketinghasbeendescribedas…”.BothsentencessuggesttheCIMissaying‘wefeelweneedtogiveyouadefinition,butdon’tblameus ifyoudon’t like thisoneanddon’tworrybecauseit’sboundtochangeshortlyanyway.’

However,havingimpliedtheCIMdoesn’thavethecourageofitsconvictionstopinacleardefinitionofMarketingtoitsmast,Icansympathisewithitsreticence.Marketingisnotanexactscience,soit shouldeludeclarification inaneatandsnappy sentence.Andisn’t ambiguity somuchmore intriguingandcurrent thanclarityanyway?Icansee#ambiguousmorelikelytotrendonTwitterthan#simple(withoutthe‘s’ontheend,ofcourse)!

TheaspectofbeingaMarketingprofessional thatconstantlychallengesmeis thedogged focuson thecustomer: thepremisethat amarketer shouldobsessabout thecustomer, almost to theexclusionofanyoneelse.Idonotdoubtthatthecustomerismyprimaryconcern,buttotheexclusionofanyotherstakeholderinmybusiness?DoIkeepbotheyesfixedfirmlyonmycustomerordoIletonewanderlazilytoseewhoelseisimpactingmybusiness’fortunes?

Ihavespentmostofmycareerworkinginservicesmarketing,and more specifically professional services – financial, legal,consultingandengineering–althoughIdidspendashort,halcyonperioddesigningaMarketing strategy foraUKcrispand snacksmanufacturer.IfyoureadmanyMarketingtextbooksandjournals,thatlatterpositionwouldqualifyas‘proper’Marketing:arolewhereMarketing‘owns’thecustomer,eventhoughtheyaretoonumeroustoknowanyofthemindividuallyandtheyareallcarvedupinto‘segments’usingthelatestalgorithm.Apositionwhereyoufeel,oratleastact,likeamasteroftheuniverseasyoutweak,honeandoptimiseyourMarketingMixwiththeexpectationthatevenmorepeoplewillrespondinstinctivelybymunchingonanotherbagofyourlatestexotically-flavouredpotatosnack.

In professional servicesmarketing it has always beenmoreuncertainormaybe justmoreambiguous.Yourcustomer– Iwillperseverewithcustomer,butprofessionalservicescolleagueswill

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Nigel Clark is the European head of Strategy and Marketing for Sinclair Knight Merz, a leading projects firm, with global capability in

strategic consulting, engineering and project delivery. he has worked in professional services marketing for more than twenty years and is a former director of the Professional Services Marketing Group. In that

role he worked with Cambridge Marketing College to establish the first CIM accredited qualification for professional services marketers

and remains a tutor on that programme.

nowbescreaming‘client’atme–arenotthatnumerous,certainlynot compared to crisp eaters, and you have a good chance ofmeetingandevenbefriendingone.Youknowthecustomerprobablyobjectstotheideaofbeing‘owned’,buteitherwayitisprobablynotyourconcern.Partners,managers,consultants,etc. ‘own’ thecustomer,whichleavesyouasamarketertomanagethecorporatemessage,butalwaysworryingmorethatwhatiscomingoutofyourcolleagues’mouths influences thecustomer farmore thananyofyourcarefullyconstructedcommunications.

Sothenyourunderstandingandinfluenceover thatcadreofcustomermanagers–pleasedon’tcallthemasalesforce–becomesmoresignificantthananythingyoudodirectlywiththeclient,doesn’tit?Butisitreallyyourcolleaguethatthecustomerislisteningto?Astheyaremorelikelytoberepresentinganorganisationratherthananindividual,aretheynotmoreinfluencedbywhattheirshareholdersaretellingthemtodoorevenagovernmentregulator?Andinthesedaysofstaffengagementandbeingagoodcorporatecitizen,howinfluentialaretheirownpeopleortheirlocalcommunity?ItleavesmewonderingwhoIshould‘identify,anticipateandsatisfy’(usingtheCIMterminology)andwouldn’titbeawholeloteasierifIwentbacktopotatosnacks?

Ofcourse,IamdoingahugedisservicetothemarketingguruswhopersuadeuswereallywanttotryBBQKangaroocrisps.TherewasprobablyagoldenageofmarketingwhenallaproductmarketerneededtodowasdesignawinningTVcommercial,pushitoutontheonecommercialchannelandwait for thecustomer tosweeptheirproductoffthesupermarketshelf.Buteveryoneknowsitisn’tnowjustaboutaone-way,hard-wiredlineofcommunicationfromthemarketing‘god’totherespectfulconsumer.Wearealldealingwithmedia proliferation, the influence of social networking andgrowingconsumerconfidencethattheydon’tjusthavetotakewhatcompaniesofferthem.Themarketingcommunicationchannelhastobetwo-wayatleastandthenthemarketerisfrequentlyneitherinnorawareoftheconversation.

Anditisoverlysimplistictosayforproductmarketingthatitisallabouttheitemitself,whereasforservicesmarketingit’s just

aboutpeople.I’vealwaysbeenabigfanofMichaelDell’sconceptofcustomerservice‘momentsoftruth’:theideathatevenifyou’rebuying a laptoponline andyounevermeetor encounter aDellemployee,itdoesn’tjustmatterhowgreattheproductis.Acustomerwill neverbuyaDell product again if someonehas forgotten toincludeapowerleadandthenreceivesaslovenlyresponsefromcustomerservices.Peoplemattertoanybusiness,productoffering,valuechain,etc.,soifsomepartofyourmarketingmixisnotmakingsureallyourpeopleareaspassionateandonmessageasyouare,you’renotonyour‘A’game.

Asanotherexampleconfirms,I’veoftenjokedthatitmustbemucheasierforaproductmarketertoterminateordelistanitemifit’snotsellingwell,incomparisontomesuggestingtoaseniorpartnerthathisserviceisnolongerwantedbyaclient.But,intruth,I’ve been party to a conversation between marketing, sales andproductionontheflavourmixforapacketofsaltandvinegarcrisps,and I canassureyou theconversationwasno lesspassionateorforthrightthananyalawyercouldconstruct.

Soyes,ofcourse thecustomermattersand their satisfactionshouldbeyourprimaryconcern,butwhateveryoumarket,thinkofyourselfasthecustomer’svoicewithinyourorganisation,nottheirowner.Anddon’t forget that there isa rangeof stakeholdersyouneedtoaddintoyourmarketingmixifyou’regoingtoachievethebestoutcomebothforthecustomerandforyou.Letthatothereyewanderandembraceambiguity!

ThERE WAS PRObAbly A gOldEN AgE OF MARkETINg WhEN All A PROdUCT MARkETER NEEdEd TO dO WAS dESIgN A WINNINg TV COMMERCIAl

SO yES, OF COURSE ThE CUSTOMER MATTERS ANd ThEIR SATISFACTION ShOUld bE yOUR PRIMARy CONCERN

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issueTwo of the CambridgeMarketingReviewincludedafeatureIwroteabout

social networking, in which I surmisedthat Facebookwas not a suitable optionas a one-stop-shop for social marketingglobally.

Although Facebook dominated interms of coverage in the world map ofsocial networks, its lack of visibility inhighlypopulatedcountrieslikeChinaandRussiameantthatusingitasaglobalmarketingtoolwouldnotbeaseffectiveasonemightassume.

Thatwasbackinlate2010/early2011andasissoabundantlyobvious technology waits for no man. Time and trends moveincredibly fast and the social media landscape has changeddramatically.

New players are finding a niche place in the market andmarketers are utilising these platforms to engage and buildrelationshipswiththeirstakeholdersusinganintegratedapproach.Marketershavesocialmarketingplansandemployspecialistdigitalexpertsandagenciestocompeteinthesocialarena.

Facebook’sphenomenalrisefromajuvenilepranktothemostvisitedsocialnetworkingsite in theworld iswellpublicised,buthowexactlyhasthelandscapeofglobalnetworkingchangedoverthelastyear?

ThE CURRENT SOCIAl MEdIA lANdSCAPECavazza (2012) has, for four years, produced an interestinginfographic on the Social Media landscape. His 2012 iteration(Figure 1 on the opposite page)showsthatFacebook,TwitterandGoogle+ are now the core central networks due to their massappeal, ease of use and large amount of functionality.However,there are also many peripheral groups, smaller players butwith a specific niche based on interest, interactivity and mediaplatform.

AlthoughCavazza’sgraphisusefulforcomprehensionofthecomplexityofsocialmedia,itisnotanexhaustivelistofavailableservices.OneofthekeyissuesinmyearlierarticleindeterminingthatFacebookwasnotaone-stop-shopforglobalsocialmarketingwas that it hada lackofpresence inRussia andAsia.Cavazza’s

glObAl SOCIAl NETWORkINg: VERSION 2.0

Update on a fast changing world wide web.

look to the web: read more on social networking trends at:http://www.fredcavazza.net/2012/02/22/ social-media-landscape-2012/ and http://vincos.it/world-map-of-social-networks/

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graphonlyreflectswesterncountries’socialplatforms;itdoesnottakeaccountofeasternmarkets likeRussiaorAsianmarkets likeChinaorJapan.

Anotherblogger,VincenzoCosenza,periodicallyproducesaworldmapof socialnetworksand this givesanicevisualof thecoveragethatthelargestsocialnetworkshaveglobally.Whenwelastlookedatthelandscape,coveragewaspredominantlyFacebook-ledalthoughnotinBrazil,RussiaandAsia(see Figure 2).

The main difference over a year has been the contraction from 17 different topsocialnetworks to just6,andtheFacebookblueis evenmoredominant than itwasbefore, significantly in SouthAmerica,(see Figure 3).

For the past 18 months Facebook has been in acquisitionmode.Withmorethan800millionactiveusersithasestablisheda leadership position in 127 of 136 countries. Its presence isstrengthenedbyitsabilitytoovertakeOrkutinBrazil,increaseitsuser-base in theNetherlandsgiving itdomination inEurope,andutilising the high use ofmobile networking in Japan to competemoreeffectivelythere.

Facebookhas,however,continuedtostruggle in theRussianmarket.Thereisstillanongoingbattlebetweenthetwomainlocalplatforms:VKontakteandOdnoklassniki.VincosusesGoogleTrendstoanalysethelandscapeandthisindicatesthatVKontakteiswinningbutAlexarankingsdisagree.

ThE CURRENT glObAl SOCIAl NETWORkINg lANdSCAPEFacebookFacebook is still the largest andmost influential social network.It has added a robust advertising platform to the site and is alsohelpingorganisationstotracktheirsocialmarketingactivity.Asanengineer-focusedcompanyithasalsonotlostsightofdevelopingtechnologies and the growth of competition, and as well ascontinuingtoinnovateithasalsobeeninacquisitionmode.

AfteracquiringthemobilephotosharingapplicationInstagramfor $1 billion, Facebook bought another mobile start-up calledGlancee, underscoring the importance of mobile to its growthstrategy.

Figure 2 – World Map of Social Networks (as of December 2010) Source: Vincos

Figure 3 – World Map of Social Networks as of June 2012 Source: Vincos (2012)

Figure 1 – Social Media landscape, Source: Cavazza (2012)

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June2012

Countries SNS#1 SNS#2 SNS#3

Australia Facebook LinkedIn Twitter

Austria Facebook Badoo Twitter

Belgium Facebook Badoo LinkedIn

Brazil Facebook Orkut Badoo

Canada Facebook LinkedIn Twitter

China Qzone TencentWeibo SinaWeibo

Denmark Facebook LinkedIn Badoo

Finland Facebook LinkedIn Twitter

France Facebook Badoo Skyrock

Germany Facebook Wer-kennt-wen Xing

India Facebook LinkedIn Orkut

Italy Facebook Badoo Twitter

Japan Facebook Twitter Mixi

Netherlands Facebook Hyves Twitter

Norway Facebook LinkedIn Twitter

Portugal Facebook Badoo Orkut

Sweden Facebook Twitter LinkedIn

Russia Odnoklassniki VKontakte Facebook

Spain Facebook Tuenti Badoo

UnitedKingdom Facebook Twitter LinkedIn

UnitedStates Facebook Twitter LinkedIn

Figure 4 – Top Three Social Networks by Geography (as of June 2012)

Source: Vincos (2012)

Glanceeisanappthattellsyouwhenfriendsorpeoplewhoshare a common interest are nearbybypulling information fromFacebook.Glanceehasrackeduparound30,000downloadsandhas around 20,000 users having been one of themost talked ofapplicationsoverthepastyear.

The Instagram purchase gained a lot of mainstream mediaattention and with 35 million users it was a large move fromFacebook toadd to itsphotographicandvisual technology.We’llcomebacktoInstagramlater.

Facebookrevenuegenerationhasbeenoneofitsmajorsuccess

factorsbasedonincreasedadvertisingrevenue,whichaccountsfor85%ofitsincome.However,accordingtoO’Reilly(2012)“manymarketers feel theyarebeingunder servedby theworld’s largestsocialnetworkwhentryingtoanalysehowtheircampaignsboosttheirownrevenues.”

Also,on18May2012,Facebooklaunchedoneofthelargesttechnology stock sales inhistory.Bybecomingapublicly tradedcompanylistedontheNASDAQstockexchange,itaimedtoraise$16billion.

An article onMSN (2012) inMay showed some interestingstatistics on Facebook at the time of its launch onto the stockexchange:• $104 billion:thevaluationofFacebookatthetimeofitsIPO• 421.2 million:thenumberofsharesFacebookissellinginits

IPO• $38:howmuchasingleshareinFacebookwillcostyouatthe

timeofitsIPO• $24 billion:howmuchMarkZuckerberg’sshareswillbeworth• $1:howmuchMarkZuckerberg’sannualsalarywillbe,starting

from2013• 901 million:thenumberofactiveusersFacebookhasaround

theworld(asofApril2012)• 488 million: the number of Facebook users accessing the

serviceonamobiledevice• $1 billion:theamountofprofitFacebookmadein2011• $5.11:howmuchmoneyFacebookmade fromeachuser in

2011• 3,027:thenumberofdaysfromMarkZuckerbergfirstlaunching

‘TheFacebook’on4February2004,tothecompany’sIPOon18May2012

AswenowknowFacebook’sflotationwasanythingbutsmoothandthebrandtookabattering.Itisstillfeelingthebruisesfromthatexperience anddiscontent continues to growamongbusinessesabouttheeffectivenessofthecompany’sadvertisingplatform.ItwillbeveryinterestingtoseethistimenextyearwhereFacebookstandsasa‘likeable’platformforadvertisingandmarketing.

Withover465millionaccountstweeting175milliontimesaday,Twitter’sriseoverthepast12monthshasbeenastonishing.Itisstatedthat1millionaccountsareaddedeverydayatarateof11persecond.

Twitter’spresenceistrulyglobal,withthehighestnumberofusersbeingintheUnitedStates,BrazilandthenJapan.TheNetherlandshasthemostactiveTwitteruserbase,accordingtoSemiocast,anditisthesecondmostpopularsocialnetworkintheUK.Asissooftenthecase,manycountriesstillhaveaninfluentialpresencefromtheirownregionalsocialnetworks.AlthoughFacebookhasbrokenmanyofthesetrends,Twitterwillneedtodothesameifitistoincreaseitsgrowth.

ThenumbersreadverywellforTwitterthough,withitsprojected

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advertisingrevenuefor2012at$259million.Thisisestimatedtoincreaseto$540millionby2014.

Itisstillverymucharelationshiptoolandformarketers,toomuchheavypromotionwillnotbetolerated.WhereadvertisinghasbecomereasonablyacceptedonFacebooknow,Twitterusersarestill influencedmoreby friends. Sixty-nineper cent of userswill“follow” a feed based on recommendations by friends. 47% ofusersfindandfollowfeedsthroughanonlinesearch,44%basedonTwittersuggestionsandonly31%basedonpromotions.

Celebrities are still the most followed entities with the topfive followed accounts all being celebrity accounts including(asofMay2012):1 LadyGaga(@ladygaga)–27,500,719followers2 JustinBieber(@justinbieber)–25,510,161followers3 KatyPerry(@katyperry)–23,803,669followers4 Rihanna(@rihanna)–23,093,088followers5 BritneySpears(@britneyspears)–18,928,604followers

gOOglE+Whatabout the fourthmost valuablebrandand themost visitedwebsiteintheworld?SurelyGooglewouldnotallowallofthistohappenwithoutgettingintheact?...wellithasn’t!

Google+waslaunchedinJuly2011andaccordingtoitsownstatisticsisthefastestgrowingsocialnetworkwith90millionactiveusers,asofJanuary2012.

AccordingtoastatementfromtheCEOofGoogle,LarryPage,“fullyearrevenuewasup29%,andourquarterlyrevenueblewpastthe$10billionmarkfor thefirst time.”Thefiguresquotedwouldmean thatGoogle+ increased itsgrowthbydouble thosequotedthreemonthsprior.

These figures were widely criticised by some who saidthat quoting registered users did not show a true reflection ofpopularity. In fact one journalistwent as far as to say: “Thinkofthe millions of people who’ve registered for Google+ but neveruse it. Second, given the huge popularity of Google search,Gmail, andYouTube, it’s actually surprising that so few peoplewho have registered for Google+ are using those more popularserviceson adailybasis –only60%.After all, remember that alot of Google+ users accidentally became Google+ users onlybecause theywere already attached to anotherGoogle service”.(Agrawal, 2012).

ThE NEW PRETENdERSTrackSocial’sSocialMediaZoneisaportalforassessingtheactivityof all Social Media Brands on the major platforms. In terms ofgrowth,therearesomeinterestingnewnetworksandplatformsthatmarketersmayormaynotalreadybeawareof.Theleaderboardthatthisistakenfromchangesdailybutasofmid-May2012,thetopfivewere:

1 Instagram2 MyYearbook3 Pinterest4 Bebo5 Scoop.itSource: http://tracksocial.com/

SOCIAl MARkETINg IN 2012The evolution of social networking is not declining, far from it;its acceleration has been aided by diversification across mobilenetworksandothertechnologicalinnovation.

TopvisitedwebsitesgloballyaccordingtoAlexarankings(asofMay2012):1 Google2 Facebook3 YouTube4 Yahoo!5 Baidu.com6 Wikipedia7 WindowsLive8 Twitter9 QQ.COM10 Amazon.com11 Blogspot.com12 LinkedIn

Facebook, Twitter and LinkedIn are in the top 12 visitedwebsites in theworld.This growth is givingmarketers increasedopportunities. Although the understanding of social marketinghas increased, it is important to remember the core objective isrelationshipbuildingandnotasasalestool.

With so many platforms available and usage across socialmediaever increasing, itwouldbeeasy formarketers toassumethatapresenceisessential.

Installingyourbrandonsocialmediaisnotaboutchoosingoneorseveralsocialplatformsandopeningprofiles,itisaboutdefiningobjectives and allocating resources accordingly. The platformchoiceshouldbemadebasedonyourstrategicapproach.Ashasbeen shown, the socialmedia ecosystem is not a stable one somassmarketingisnotasensibleapproach.Choosingoneorseveralplatformsisnotalong-termstrategy;itisashort-termtactic.

Of course, using one single platform, like Facebook, hasits limitations too. Forgetting geography for a second there isdemographics,specialistinterestgroupsandotherwaystosegmenteachnetworksmembership.

Competition is something else to monitor, Facebook is byfar themostpopular socialplatformbut it isalso theonewherecompetitionisthemostintense.Iftherearemuchbiggerandmoresuccessfulbrandsalreadywithastrongpresence,doesyourbrandhavetheresourcesandcompellingstrategythatwillimpact,orare

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Paul Woodhouse is a Marketing Executive for Vindis ltd. With a career spanning many sectors on both agency and client side,

Paul has a passion for writing, and freelances for Cambridge Marketing College and other organisations.

resultsgoingtobelimited?Thinkaboutthereturnandthinkabouttheobjectivesbeforejumpingonthebandwagon.

A long-term, successful conversation-based engagementplatform is a much more ambitious project, which will requiremoretimeandenergybutcanachievestrategicgoals,whileshort-termcampaignsmaybeusefultotesttheeffectivenessofdifferent

platforms.

WhAT dOES ThE FUTURE hOld?Theevolutionofmobilemarketingandtheintegrationofthis

intoyourstrategyisasensibleapproachas2012willbetheyearto strengthenanexistingpresenceormobileapplications. Itmaybeworthexperimentingbecausetherearenumerousopportunitiesatamarketer’sdisposal.Likeallmarketingprojects,measurementandcontrolofsocialmarketingisessentialsothatwearealwayslearningfromwhatwearedoing.

Diageo’sPhillipGladman,maythinksocialmediaisallaboutnumbersand‘likes’butarethesetruemeasurementsofsuccess,orisanintegrationofobjectiveswithlonger-termstrategygoingtobringtruereturnoninvestment?

It is an easy assumption tomake that Facebook’s continuedrise to global dominancemeans that it is nowbecoming a one-stop-shoptoglobalsocialmarketing.Butwhenweremembertheethosandvaluesbehindnotjustsocialmarketingbutthemarketingdisciplineasawhole,thenwemustaskourselvesifFacebookistherightplatformto trulyengagewithyourstakeholder,anddoes itscoveragereallyprovidevaluetoyourbrand?Thisisaquestiononlyyoucananswerinyourrespectiveroles.

lINkS:Semiocasthttp://semiocast.com/publications/2012_01_31_Brazil_becomes_2nd_country_on_Twitter_superseds_Japan

Vincos Bloghttp://vincos.it/world-map-of-social-networks/

Cavazzahttp://www.fredcavazza.net/2012/02/22/social-media-landscape-2012/

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SUMMARy OF SOCIAl MEdIA USAgE STATISTICS FOR 2012

FACEbOOk: 1 Facebookhas845millionactiveusers2 TheaverageFacebookuserhas130friends3 TheaverageFacebookvisitlasts23minutes4 46%ofFacebookusersareovertheageof455 57%ofFacebookusersarefemale(43%male)6 57%ofFacebookusersreporthavingbeento

“somecollege”(24%bachelorsorgraduatedegree)7 47%ofFacebookusersreportmakingbetween

$50,000–$99,000annually(33%between$25,000–$49,999)

TWITTER: 1 Twitterhas127millionactiveusers2 13%ofinternetusersalsouseTwitter3 54%ofTwitterusersuseTwitterontheirmobiledevices4 36%ofTwitteruserstweetatleastonceaday5 TheaveragevisitonTwitterlastsfor14minutes6 59%ofTwitterusersarefemale(41%male)

gOOglE+: 1 Google+hashad90millionuniquevisitors2 Google+usersare71%male3 ThemostcommonoccupationofaGoogle+userisan

engineer4 44%ofGoogle+usersare“single”

PINTEREST:1 Pinteresthashad21millionuniquevisits2 ThetoplocationsforPinterestusersareMississippi,

Alabama,KentuckyandTennessee3 ThetopinterestsofPinterestusersarecrafts,hobbies,

interiordesignandfashion4 82%ofPinterestusersarefemale(18%male)5 TheaveragePinterestvisitlasts17minutes

lINkEdIN: 1 LinkedInhas150millionregisteredusers2 75%ofLinkedInusersuseitforbusinesspurposes3 Thereare2millioncompaniesonLinkedIn4 50%ofLinkedInusershaveabachelorsorgraduate

degree

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COMMUNICATIONS ANd REPUTATION MANAgEMENT

most of the marketing andcommunications professionals

would both salivate and recoil at theidea of managing the reputation of aglobal Internet service, especially onethatstartedsmallandgrewtobecomeacornerstoneofthewebsuchasFacebookor Google. It is the rare intersectionwhere innovation, growth, policy, lawsandcommunicationsallcollide.

MOVINg FASTAtmanycompanies,newproductsandservicesarecreatedorbuiltovermonthsorevenyears.Atengineering-drivencompanies likeGoogleandFacebook,new featuresandproductsare sometimescreated overnight. There is rarely, at least in the early days, athoroughroadmapofsoon-to-be-developedfeatures thatyoucanplantocommunicateabout.Norcanyouhavemuchcontroloverthetimingofwhentheygoout.Ifit’sready,itgetsshipped.Atthatpoint,thecommunicationsandpolicyteamscanonlyadviseastolikelyscenarios.

Theupsideisthereisalwayssomethingtotalkabouttousersand to themedia.Youcangeneratenewsalmostconstantly, andacross all kinds of media from tech, to consumer, to business.Havingaconstantflowofimprovementsdemonstratesinnovation,andspeakstotheverycoreofthecompany’sphilosophy.Youdon’tneed to drum up special ideas or roll out senior executives toadvanceyourmessageofbeinginnovative–theproductcycledoesitforyou.

Thedownsideis that thetimeyouhavetogetyourducksinarowisverylimited.ThemajorityofcommunicationsstrategiesIpreparearewritteninanemail.There’sliterallynopointtryingtosetitoutinadocumentandproviderationale.Ifyoustartwritinganything,itshouldbethemessaging,thecommentforpress,oraquickQ&A.

AtFacebook,movingfastisatthecoreofwhatwedo.‘Movefastandbreakthings’and‘Doneisbetterthanperfect’sayposterson the walls. This makes for many challenges, as not only dofeaturesflyoutthedooralmostdaily,butoccasionallyproductscanhave“bugs”–whichyouquicklylearnisengineerspeakforeveryproblemfromflatoutbrokento‘doingsomethingweird’–andyouhavetomanagethenegativeconsequences.

In2010,atechnicalsnafumadefeaturesweweresupposedtobetestingonlytoFacebookemployeeslivetoeveryFacebookuser.TheproblemsweresocomplicatedthatwehadtoturnoffFacebookforseveralminutestorectifythem.Thisisthetimewhenyouwishthatyourpressstatementcouldjustsay:“Whoops,sorry!”Andours

DEBBIE FRoSTDirector of International

Communications and Public Policy

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did(inmorewordsofcourse,we’reprofessionals!)Whenyouaremovingfast,andyourproductisusedbymillions

ofpeoplewhowillnoticewhentheserviceisdown,youjusthavetoownyourmistakes.Fixtheissue,explainwhathappened(unlessit’s something thatwouldaffect thesecurityof thesite if shared),apologise,andmoveon.

Problemsthatareself-createdcanbeownedeasily,andfixed.Youcanmoreeasilycommunicateaboutanissueormanageyourreputationreliablywhentheproblemscanbemanagedinternally.

Wheremanagingthereputationofaservicethatorganisesorhelpspeoplesharecontentthatthey–notthecompany–create,iswhereitgetsharder.

USER gENERATEd CONTENT ANd bRANd VAlUESEveryone loves a goodpuppy video.Or onewhere cats do sillythings.TheInternetcreatedtheopportunityforallformsofcontent,fromtheacademictothebanal,tofindanaudience.

Profoundthingscanhappen.SocialmediaisoftencreditedforitsroleduringtheArabSpring.Creatingtoolsforpeopletousetocreatechangeisagoodthingfortheworld,andmakesforagreatplacetowork.

Conversely,whentheserviceyourcompanyprovidesenablespeopletosharecontenttheycreate,orhelpspeoplefindcontentonthewebcreatedbyothers,therewillinevitablybeatimewhenyourbrandbecomeslinkedwithsomethingoffensive,unpopularorevenillegal.Thereisnotextbookwaytomanagethis,especiallywhensubjectsareemotiveorpolitical.

AtGoogle,earlyon,asearchfortheword‘jew’yieldedahatesite as the number one result. Headlines in dozens of countriescriticizedGoogleforbeinganti-Semitic.Communitiesandpeopleofall faithswereoutragedabout thehigh rankingofanti-Semiticsitesforthiskeyword,andGooglewasinundatedwithcomplaintsandthreatsofboycottandlegalaction.

Thesearch results–whiledisturbing–wereprovidedbyanalgorithm. Not chosen by Google, but by machines.While thecommunications team were able to explain to media what washappening,theywerenotinclinedtogiveasmanycolumninchestooursideof thestory,andsomediarelationswas ineffectiveatquellingoutrageamongthebroadinternationaluserbase.

DeeplyinvolvedinthebrewingcrisiswasGoogleco-founderSergeyBrin,himselfJewish.Theteamlookedcloselyatthevaluesofthebrand–abrandbuiltonaninnovative,automatedformulaforthecomprehensivenessofitssearchresults.Abrandpeopletrustedtoreturnresultsthatweretheprocessofthedemocraticnatureofthewebandnotbywhopaidthemost,orwhatthecompanyitselfthought.Wewouldneverchangetheresults–noteveninthefaceofsuchpublicoutcry.Instead,theteamcameupwiththeideatouseourownproducttomaketheexplanation.Usingtheadspaceatthetime,weplacedalinktoanexplanationofthesearchresultforthisterm.Here,peoplecouldlearnmoreaboutthesearchresultsbeingshown,andhowthecompany feltabout it.Thecommunicationsteampushedoutthisstory–givingmediaafreshreasontowriteaboutthisissue,butthistimewiththecompany’sexplanationfrontandcentre.

Long after the headlines died down,we had all learned animportantlessonofstandingbythevaluesofthebrand,eveninthefaceofoutrage,topreservetheoveralltrustofusers.Theexplanation(http://www.google.com/explanation.html)stillexiststoday.Itwasaboutthe6thresultforthesamekeywordsearch.

One of the most interesting things about user-generatedcontentonthewebishowdifferentgovernmentsdealwithit.Asacommunicationsprofessional,Ifindthisthemostinterestingandcomplexofallthechallenges.

It is complicated in part because it is not onewhere brandvaluescanalwaysbethefoundationofdecisions,andmaynotstanduptotheculturalsensitivitiesorspecificlawsinacertaincountry.AtFacebook,ourgoalismaketheworldmoreopenandconnected.Weprovidetoolsforpeopletoshareandconnectwitheachother.Ourbrandisbuiltonempoweringpeopletoexpressthemselves.Itsnotasiftherearenorules–therearemanyrulesaboutwhatyoucanandcannotshareonFacebook(seeourCommunityStandards,Terms ofUse) but thewhole service is designed to help peopleshare,aslongastheydosowhilerespectingtherightsofothers.

Sometimes people share content that is just awful and itbecomes tabloid fodder.Newseditorshaveadmitted thatputtingFacebook orGoogle in a headlinewill getmore views. Such isthedownsideof success. Sowhen there iscontroversialcontent,headlinessweeptheglobeabouta‘Facebookchildabusevideo’.PRpeopleeverywherewouldcringeattheseheadlines.Youwanttoyellatareporter:It’snotFacebook’svideo!It’sallovertheweb!Whyareyousuggestingourserviceisrampantwithvideosofchildabuse?

Anditissadlyarealexample.Thisyear,peopleworldwidewere

WhEN yOU ARE MOVINg FAST, ANd yOUR PROdUCT IS USEd by MIllIONS OF PEOPlE WhO WIll NOTICE WhEN ThE SERVICE IS dOWN, yOU jUST hAVE TO own yOUR MISTAkES

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appalledwhenmediaattentionturnedtothevideoofaMalaysianwomanbeatingachild.Atthetimeit“wentviral”,peoplewantedFacebooktotakeitdown.Asidefromthatbeingareallydifficulttechnicalchallengewhenmillionsofpeopleweresharinglinkstoitonotherservices,thevideowasnotagainstourterms.

Uponinvestigation,welearnedthatthewomaninthevideohad been brought to justice – something that may never havehappenedhadthevideoneverseenthelightofday.Weexplainedto thepress (withoutyelling):howwouldthiswomanhavebeencaughtifthevideohadbeencensored?Whilegraphicimageryishardtowatch,howwouldPETAortheRSCPAhighlighttheplightofneglectedanimalsifnoonecouldseeanypictures?Howwouldpeople learn about the true nature of historical atrocities if youcould only usewords?We needed to explain, explain, explain.Andfindotherexampleswhereimagerywasthepiecethatledtoaction,suchaswhenTIMEphotographerJamesNachtwey’sphotosoftheRwandangenocidesurfacedin1994.Eventually,themediaincludedourperspective,andtheattentionwentelsewhere.Thatis it until next time.And ‘next times’ happen everyday becausebillionsofpiecesofcontentareshareddailyonFacebook.

Sometimeswefindthatpeoplesharecontentthatisillegalinonecountry,butmayevenbeprotectedinanother.FlagburningisprotectedspeechintheUS,butinIndia,therearestrictcodesforhowyoumayevenwearaflagonyourclothing,letaloneburnit.Ourapproachasacompanyis torestrictaccess tocontent fromcountrieswhere it is illegal.Weblockedaccess to the ‘EveryoneDrawMohammedDay’cartoonsfromcountriessuchasIndiaandPakistan.However,thisisaveryhardproblem.

gROWTh ANd ExPECTATIONSManyofthereputationalchallengesthathavefacedbothGoogleandFacebookcamepreciselybecauseoftheirgrowthinpopularity.Managing the reputation of a company as it goes from Internet

WE hAd All lEARNEd AN IMPORTANT lESSON OF STANdINg by VAlUES OF ThE bRANd, EVEN IN ThE FACE OF OUTRAgE

Debbie Frost is Director of International Communications and Public Policy at Facebook, where she is responsible for developing and

managing communications about products, advertising, policy and corporate affairs for Facebook outside of the United States. Prior

to joining Facebook, Debbie spent more than four years at Google, where she built the company’s international PR team and led

communications across Europe, Asia and latin America.

Debbie spent her early career in the UK and Europe, managing communications at Nike Inc. During this time, she was responsible

for communications supporting Nike’s $1bn European apparel business and led Nike’s communications team at the Sydney 2000

olympics. Before that, Debbie was a PR manager at Burson-Marsteller, where she worked with clients such as Unilever, Nike, British Airports Authority, and West ham United Football Club.

Debbie is an Australian, was born and raised in hong Kong, and has an honours degree in law (llB) from The University of Warwick

School of law in the UK.

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underdogtoacornerstoneofthewebcomeswithmanychallenges.In2002,when‘searchwassolved’,itwashardtogetpeople

towrite aboutGoogle. Even though journalists liked the servicebecauseitaidedinresearch,andwereinterestedinnewfeaturesandservices,itdidn’tsellpapers.Theywereevenlessinterestedinthekeywordadvertisingmodelbecauseno-onehadreallydoneit,andno-onecouldtellifitworked.Wehadtoworkhardasasmallteam(6ofus)togetstoriesoutabouthowusefultheservicewas,orhowitwashelpingadvertisers.

Notsotodayforeithercompany.Ablessingandacurse,bothcompanies remain in the spotlight.TheirPR teamsareverybusywiththeevolvingchallengesofregulation,competitionandbeingpubliclytraded.

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most readers will not have failed tonotice the blizzard of pop-ups that

nowconfrontusersupontheirfirstvisit toparticularwebsites.Thesepop-uprequestsforusers’ consent to theusageof cookiesandsimilartechnologiesrepresentthemostvisible impact of the so called “CookieLaw”.

Despitetheincreaseintheappearanceofsuchpop-ups,itisclearthatthemajorityoforganisationsareyettogettogripswiththe implications of the new law. By wayofexample,KPMGhaspublished the resultsof itsanalysisof55websitesforcompliancewiththeprovisions.Duringitsreviewsofthese55websiteson28and29May2012,KMPGfoundthatonly10wereemployingmeasuresthatcouldbesaidtobecompliant.Thisisunsurprisinggiventhegeneralconfusioninthemarketplaceas to the impact and extent of the new law. Indeed, both thegovernmentandtheInformationCommissionerhaveacknowledgedthatcomplyingwiththenewrulesisnotastraightforwardprocess.

This note, whilst not exhaustive, seeks to clarify the impactand extent of the “Cookie Law”whilst providing some practicalguidanceastothestepsthatorganisationsshouldbetakingandtheimplicationsofnon-compliance.Thecontentofthisnoteislargelybased upon guidance issued by the Information Commissioner’sOffice (the “ICO”) the independent authority responsible for,amongstotherthings,theenforcementofthenewlaw.

WhAT IS ThE COOkIE lAW?Theterm“CookieLaw”isgenerallyusedtoreferencethenewEUprivacylegislationwhichstipulatesthatthestoringandaccessingofinformationonusers’computersandotherdevicesisonlylawfulonconditionthatinformedconsentisobtained.ThesenewprovisionshavebeenimplementedintheUKthroughthePrivacyandElectronicCommunications (EC Directive) (Amendment) Regulations2011,which amend the Privacy and ElectronicCommunicationsRegulations2003(collectively“theRegulations”).

The new law came into force on 26 May 2011. However,theICOgranteda12monthlead-inperiodpriortocommencingenforcement,toallowwebsiteoperatorstimetomakethenecessarychangesandarrangements.Undertheregulations,theuseofcookiesisonlynowallowediftheuserconcerned:• hasbeenprovidedwithclearandcomprehensiveinformation

aboutthepurposesforwhichthecookieisstoredandaccessed;and

• hasgivenhisorherconsent.Theregulationsapplytocookiesandsimilartechnologiesused

forstoringinformation,suchasLocalSharedObjects,webbeacons

ThE “COOkIE lAW”

JAMES GRACE

What should businesses be doing to ensure compliance?

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orbugs.Anyreferenceinthisnotetocookiesincludesallofthesesimilartechnologies.Furthermore,anyreferencetowebsitescoversalltechnologiesthatusecookies.

Why hAS ThE “COOkIE lAW” bEEN IMPlEMENTEd?Inshort,thelawhasbeenchangedasaresponsetogrowingprivacyconcernsoverthecollectionanduseofdatarelatingtoindividuals’behaviour,oftenincircumstanceswheretheindividualconcernedisnotawareofsuchcollectionanduse.Regulatorsareconcernedbecausecookiescanbeusedtocollectpersonaldataabouttheuser,whichcanthenpotentiallybemisused.

Notallcookiesareseenasproblematic.Theconcernsrelateprimarilytocookieswhicharemoreintrusive,suchasthoseusedtocreatedetailedprofilesofanindividual’sbrowsingactivity.However,thenewrulesapplytoallcookies,whetherornottheyareusedtocollectpersonaldata(thoughwhatwebsiteoperatorsneedtodotocomplywilldependonhowintrusivethetechnologyis).

WhAT PRACTICAl STEPS MUST bE TAkEN by WEbSITE OPERATORS TO ENSURE COMPlIANCE?Assetoutabove,undertheregulations,theuseofcookiesisonlynowallowedif theuserconcernedhasbeenprovidedwithclearand comprehensive information about the purposes for whichinformation gathered in these ways is stored and accessed andhasgiven theirconsent.Tocomplywith theseprovisionswebsiteoperators should take the followingsteps,asoutlined in the ICOguidance:

Step 1: Check what type of cookies it is using and how it uses them

Ultimately,websiteoperatorsneedtoidentifyallfilesstoredandaccessedfromtimetotime,withoutanyexceptions.Ifanexhaustivelistdoesnotexist,acomprehensiveauditofthewebsiteoperator’swebsite(s)wouldbe appropriate. In undertaking a cookies audit,website operators should consider taking the following practicalsteps:

• List all cookies currently used on their website, includingcookiessetbythirdpartiesauthorisedbythewebsiteoperatortodoso,asthewebsiteoperatormayremainresponsibleforsuchcookies.CommonexamplesofsuchthirdpartycookiesmaybeGoogleAnalyticsorotherthirdpartyadvertisingsoftware.

• Confirm the purpose(s) of each cookie. Website operatorsshouldconsider thepurpose forwhicheachcookie isused.Cookies necessary to perform an essential function of thewebsiteordeliveraservicerequestedbyusersdonotrequirethe user’s consent.Website operators should be aware thattheseexceptionstotherequirementtoobtainconsentwillbeconstruednarrowly.Bywayofexample,acookieusedinthecontextofanonlineshopping-basketfacilitywherethewebsiterememberswhichproductstheuserchoseonapreviouspage,would likely be deemed necessary to perform an essentialfunction,thirdpartyadvertisingcookieswouldnot.

• Identifywhatdataeachcookieholdsandconfirmwhetherthecookieislinkedtootherdatatheproviderholdsaboutauser.In the event that any data collected by the cookiesmay belinkedtoanidentifiablelivingindividual,considerationshouldbegiventoobligationsundertheDataProtectionAct1998.

• Confirm the type of cookie. Some cookies, for examplepersistentcookies,arelikelytobemoreprivacyintrusivethanothers,suchassessioncookies.

• Confirmthelifespanofeachpersistentcookie.Ifthelifespanisnotnecessary to fulfil thepurpose forwhich thecookie isused,websiteoperatorsshouldconsiderwhether itcouldbeshortened.

• Confirmwhetherthecookieisafirst-partyorthird-partycookie.Website operators should liaise with any third-party cookieproviderstoensurethatcomplianceisachievedinrespectofallcookiescontainedontheirwebsites.

Step 2: Assess how intrusive its use of cookies is

Websiteoperatorsshouldthen,usingasabasistheinformationgatheredthroughtheirwebsiteaudit,considerhowintrusivetheiruseofeachcookieis.Greaterprioritymustbegiventoobtainingmeaningfulconsent for theirmoreintrusiveusesofcookies,suchas those that involve creating detailed profiles of an individual’sbrowsingactivity.

Step 3: decide on the best solution for it to obtain consent

Oncewebsiteoperatorsknowwhat theydo,how theydo itandforwhatpurpose, theyneedtoconsider thebestmethodforgainingconsent.Thisisatwostageprocess:websiteoperatorsmustfirstprovideuserswith“clearandcomprehensiveinformation”asregardsthepurposesforwhichcookiesarestoredandaccessedandthenobtainconsentforthisusage.

IT IS ClEAR ThAT ThE MAjORITy OF ORgANISATIONS ARE yET TO gET TO gRIPS WITh ThE IMPlICATIONS OF ThE NEW lAW

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PRACTICAl WAyS IN WhICh WEbSITE OPERATORS CAN PROVIdE INFORMATIONlevel and type of informationWebsite operators should first consider the level and type ofinformationthatshouldbeprovided.Althoughtheregulationsarenotprescriptiveinthisregard,theICOhasmadeclearthatthetextshouldbesufficientlyclearandcomprehensivetoallowindividualstoclearlyunderstand thepotentialconsequencesofallowing thecookiesshouldtheywishtodoso.TheICO’sguidanceincludestwomainsuggestionsforwaysinwhichinformationmaybedisplayed.Theseare:• Table of cookies used

TheICOsuggeststhatitmaybesufficientwhendealingwithtechnicallysophisticateduserstoincludewithintheirprivacypoliciesatableorlistofcookiesusedandtheirpurposes.

• Broader explanationsThe ICO in its guidance also notes that levels of userunderstandingarelikelytobelowandsothoseusingcookieswillneedtomakeaparticularefforttoexplainthecategoriesandactivitiesofcookiesinawaythatpeoplewillunderstand.TheICO’sguidanceincludesthefollowingsampledescription:“Our website uses four cookies. A cookie is a small file of letters and numbers that we put on your computer if you agree. These cookies allow us to distinguish you from other users of our website, which helps us to provide you with a good experience when you browse our website and also allows us to improve our site. The cookies we use are “analytical” cookies. They allow us to recognise and count the number of visitors and to see how visitors move around the site when they are using it. This helps us to improve the way our website works, for example by ensuring that users are finding what they are looking for easily.”

Categories of cookies usedInorder toobtain informedconsent it is important tohaveplainlanguage explanations of the technical description of cookies,settingoutinsimpletermswhattheyareandhowtheyareused.TheInternationalChamberofCommercehaspublishedguidanceon the use of cookies underUK law,which places cookies intofour categories based on their functions.This guidance includesuser-friendlydescriptionsof thefourcategoriesofcookies,whichwebsiteoperatorsmayfindusefulwhenproviding information tousers.Giventhatcertaincookiesmayfitintomorethanoneofthesecategories,thewayinwhichtheyareusedshouldbetailoredtothewebsiteinquestion.ThefourcategoriesusedbytheInternationalChamber of Commerce and the suggested noticewording to beusedinrelationtoeacharesetoutinthetableshownopposite.Visibility of informationAlthoughwebsiteoperatorswillbeloathedtoimpedethebrowsingexperience,theymusttakecaretobringinformationaboutcookiestotheattentionofusers.InitsguidancetheICOnotestheimportanceofvisibilityincomplyingwiththeinformationrequirementsofthe

ThE FOUR CATEgORIES OF COOkIES USEd ANd SUggESTEd WORdINg

1 Strictly necessary cookies“Thesecookiesareessentialinordertoenableyoutomovearoundthewebsiteanduseitsfeatures,suchasaccessing secure areas of thewebsite.Without thesecookies services you have asked for, like shoppingbasketsore-billing,cannotbeprovided.”

2 Performance cookies“Thesecookiescollectinformationabouthowvisitorsuseawebsite, for instancewhichpagesvisitorsgotomost often, and if they get errormessages fromwebpages. These cookies don’t collect information thatidentifiesavisitor.Allinformationthesecookiescollectisaggregatedandthereforeanonymous.Itisonlyusedtoimprovehowawebsiteworks.”

3 Functionality cookies“Thesecookiesallowthewebsitetorememberchoicesyou make (such as your user name, language orthe region you are in) and provide enhanced, morepersonalfeatures.Forinstance,awebsitemaybeableto provide you with local weather reports or trafficnewsby storing inacookie the region inwhichyouarecurrentlylocated.Thesecookiescanalsobeusedtorememberchangesyouhavemadetotextsize,fontsandotherpartsofwebpagesthatyoucancustomise.Theymay alsobeused to provide services youhaveasked for such as watching a video or commentingonablog.The information thesecookiescollectmaybe anonymised and they cannot track your browsingactivityonotherwebsites.”

4 Targeting cookies or advertising cookies“Thesecookiesareusedtodeliveradvertsmorerelevanttoyouandyour interests.Theyarealsoused to limitthenumberoftimesyouseeanadvertisementaswellas help measure the effectiveness of the advertisingcampaign. They are usually placed by advertisingnetworkswiththewebsiteoperator’spermission.Theyremember that you have visited a website and thisinformationissharedwithotherorganisationssuchasadvertisers.Quiteoftentargetingoradvertisingcookieswillbelinkedtositefunctionalityprovidedbytheotherorganisation.

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regulations.Itrecommendsanumberofstepsthatwebsiteoperatorscan take to help ensure that users can easily see informationregardingcookies.Theseinclude:• Prominent links

Aprominentlinkonthehomepageorindeedeverypageofthewebsitecouldbeusedtolinktoinformationaboutthecookiesused.Thelinkshouldhaveatitlethatmakesitclearthatthisiswhereinformationaboutcookiescanbefound(forexample“Informationaboutcookies”)orcouldinvolveexplanatorytext(for example “Find outmore about howour siteworks andhowweputyouincontrol”).Visitthewebaddresshttp://www.number10.gov.uk/ foranexampleofthis.

• Using an iconWebsite operators could use a clickable image or icon toencourageuserstoseekfurtherinformation.Itshouldbecleartousers that any iconused relates to cookies.Visit thewebaddress www.virgin-atlantic.com/foranexampleofthis.

• News items and blog postsNewsitemsorblogpostscouldbeusedtoexplaintheprovider’spolicyoncookiesandtolinktothecookieinformationpage.Giventhatwebsiteoperatorswilloftenalreadyusethesetoolsto communicatewith users, theymay constitute a relativelyeasy additional measure in the short-term for drawing theattentionofuserstoinformationaboutcookies.Visitthewebaddresswww.guardian.co.uk/info/cookies foranexampleofthis.

PRACTICAl METhOdS OF ObTAININg CONSENTImplied consentInthelatestversionofitsguidance,issuedonly48hourspriortotheendofthe12monthenforcementhiatusperiod,theICOmade

itclearthatimpliedconsentisavalidformofconsentandcanbeusedinthecontextofcompliancewiththerevisedrulesoncookies.

Torelyuponimpliedconsentthewebsiteoperatormustinformtheuserthataspecificactiononhispartwillbeinterpretedashimgivingconsenttotheuseofcookies.Thisinformationmustbe“clearandrelevant”andshouldresultinasharedunderstandingbetweenthewebsite operator and the user on theway inwhich and theextenttowhichcookiesareused.TheICOgiveswebsiteoperatorsdiscretiontoestablishtheextentofandwaysinwhichtheychoosetoprovidethisinformation,butsetsoutanumberoffactorswhichshould be taken into account, including theway inwhich usersgenerallyexpecttoreceiveinformationfromthisparticularsite.See Figure 1 above.

Thewebsiteoperatormustalsosatisfyhimself that theuser’sactionsarenotonlyanexplicitrequestforcontentorservicesbutalsoconstitutean indirectexpressionof theuser’sconsent to thesettingofcookies.Bywayofexample,ifawebsiteincludesaclearandunavoidablenoticethatcookieswillbeusediftheuserentersthesite,andiftheuser,onthatbasis,clicksthroughandcontinuestousethesite,thiswouldbesufficienttoimplyconsent.Conversely,itisunlikelythatreliancesimplyuponaprivacypolicywhichishardtofindand/orunderstandwouldsuffice.

Insomecircumstances,forexamplewhereawebsiteoperatoris collecting sensitive personal data such as health information,explicitconsentmaybemoreappropriatetoensurecompliance.

CONFlICT WITh OThER EU jURISdICTIONSWebsite operators should be aware that in adopting the aboveapproach to implied consent, the ICO seems to have partedcompanywith themajorityofdataprotection regulators inothermemberstatesandtheEUWorkingParty,whichhasclearlyruled

Figure 1: The website at www.ba.com uses implied consent for web users

IT IS UNlIkEly ThAT ThE ICO WIll ISSUE MONETARy PENAlTy NOTICES FOR VIOlATIONS OF ThE REgUlATIONS

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outtheuseofimpliedconsent.ThisofcoursemayleadtodifficultiesforUKwebsiteoperators thatplacecookieson theequipmentofnon-UKEUcitizensrelyinguponthebasisofimpliedconsent.

AFFIRMATIVE CONSENTTheICOhassetoutinitsguidanceseveralpracticaloptionsthatcanbeutilisedtoobtainprioraffirmativeconsent.Inmostcases,thesesuggestionsencourageproviderstoadaptexistingtechniquesalreadyusedbyonlineprovidersforotherpurposeslikeverificationofagerequirementsorchangestotheirtermsandconditions.TheICOhassaiditisuptoindividualwebsiteoperatorstoestablishwhichmechanismforobtaininguserconsenttocookiesisappropriatefortheirwebsites.TheoptionssetoutintheICOguidanceinclude:• Terms and conditions

Consentmaybeobtainedbyusingtermsofuseortermsandconditions that ask for consent from users when they firstregisterorsign-uptowebsites.TheICOhasindicatedthatconsentcannotbeimpliedwhereallinformationaboutcookieshassimplybeenburiedinawebsite’sprivacypolicy.Furthermore,websiteoperatorscannotrelyonusers’previousconsenttotermsofuseandtermsandconditionswhensettingcookies.Usersmustspecificallyconsenttotheuseofcookiesafterbeinginformedofthechangesmadetotermsinrespectoftheuseofcookies.

• Settings-led consent Consentmaybeobtainedaspartoftheprocessbywhichusersselectwebsitesettings.Inpractice, itwill likelybe sufficient tomake it clear to theuserthatthesettingswillbeenabledbyusingacookie(withalinktothemoredetailedcookieinformation).Iftheuserthenproceedstochoose‘enablethesetting’,consenttothesettingoftherelevantcookiecanbeassumed.

• Feature-led consentConsentmaybeobtainedat thepointwhereauserchoosesto use or switch on a particular feature of the site, such aswatchingavideoclip.Thepracticalitiesofobtainingconsentvia this route would be similar to those outlined above inrelationtosettings-ledconsent.

• Pop-ups and similar techniques Consentmaybeobtainedthroughtheusageofpop-uppromptsonusers’screensthataskforexpressconsenttocookieswhentheindividualsaccesswebpages.Inthiscontext,itisimportanttorememberthatconsentneednotbesoughteverytimeauserentersawebsite.Websiteoperatorsshouldconsiderwhenusingthistechniquethatuserswhoemploypop-upblockerswillbeunlikelytoviewanypop-ups.

• Static header or footer barsConsentmaybeobtainedthroughthedisplayoftextateitherthe top or bottom of web pages asking users to click theirconsent tocookies.The textboxes shouldalso include linksthrough to more detailed explanations about the operators’useofcookies.ThismethodiscurrentlyusedbytheICOitself,althoughithasannouncedinitsguidancethatitmayrevisethisapproachinthefuture.

Additionally,theRegulationssuggestthatbrowsersettingsmaybeonemeansofobtainingconsentiftheycanbeusedinawaythatallowsthesubscribertoindicatetheiragreementtocookiesbeingset.However,theICO,initsguidance,hasconfirmedthatpresentlymost browser settings are not sophisticated enough for websitesto assume that consent hasbeen given to allow the site to set acookie.Consequently, relying solely onbrowser settingswill notbesufficient.

AN ExAMPlETheICO’swebsite(www.ico.gov.uk)usesabanneratthetopofthepagedisplayingthefollowingtext,whichalsoincludesatickboxreading“Iacceptcookiesfromthissite”,abuttonforuserstopresstocontinueandalinktoitsprivacypolicy:

“TheICOwouldliketoplacecookiesonyourcomputertohelpusmakethiswebsitebetter.Tofindoutmoreaboutthecookies,seeourprivacynotice.”

AlthoughtheICOhasinitsguidanceconfirmedthatithasnoobjectiontoorganisationsconsideringwhetherthissolutionwouldworkforthem,itstressesthatanysolutionhastobeappropriatetoanorganisation’sownneeds.

WhOSE CONSENT MUST bE ObTAINEd?The regulations state that consent should be obtained from thesubscriberortheuser.Inessence,thesubscribermeansthepersonwhopaysthebillfortheuseoftheline,whilsttheuseristhepersonusingthecomputerorotherdevicetoaccessawebsite.

ThE ICO NOTES WIThIN ITS gUIdANCE ThAT ThE PERSON SETTINg ThE COOkIE IS “PRIMARIly RESPONSIblE FOR COMPlIANCE WITh ThE REqUIREMENTS OF ThE lAW”

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WhO MUST ObTAIN CONSENT?For ease this article has beendraftedmainly by reference to theimpactoftheRegulationsonwebsiteoperators.However,readersshouldbeawarethatotherorganisationsmayalsoberesponsibleforensuringcompliance.TheICOnoteswithinitsguidancethatthepersonsettingthecookieis“primarilyresponsibleforcompliancewiththerequirementsofthelaw”andthatwherethird-partycookiesaresetthroughawebsite“bothpartieswillhavearesponsibilityforensuringusersareclearlyinformedaboutcookiesandforobtainingconsent”.

The ICO has also suggested that companies designing anddevelopingwebsites or other technologies for others should alsocarefullyconsidertherequirementsoftheRegulationsandensurethatthesystemstheydesignallowtheirclientstocomplywiththelaw.

ThIRd PARTy COOkIESAdvertising networks and other third parties that wish to placecookies onusers’ equipment through awebsite that theydonotoperatethemselvesmayfinditdifficulttoobtainvalidconsentastheydonothaveadirectrelationshipwithinternetusers.TheICOsuggests that thirdpartiesmay seek to contractuallydelegate theresponsibilityofobtainingconsentfortheuseofthird-partycookiestowebsiteoperators.Websiteoperatorscouldinpracticeprovideinformationonandseekconsentfortheuseofthird-partycookiesbyemployingthesamemethodsusedinrespectoftheirowncookies.

Giventhatwebsiteoperatorsmaynotbewillingtoacceptthisdelegated responsibility, third parties should consider alternativemeansof securingconsent.This couldbeachievedusingcertainmethodssetoutabove,suchasusingtheirownpop-ups.TheEUWorkingPartyhasconfirmedthatconsenttothesettingofathird-partycookieaccessedfromdifferentwebsitesneedonlybeobtainedonce.

Thirdpartyprovidersmayalsoconsidercollaborativeapproacheswithotherthirdpartyproviders,wherebyusersaredirectedtoseparatewebsitesthroughwhichtheycanconsenttotheuseofcookiesbyanumberofdifferentthird-partyproviders.

IMPlICATIONS OF NON-COMPlIANCE ANd TIMESCAlES FOR COMPlIANCETheICOhasstatedthatapracticalandproportionateapproachwillbetakentoenforcementwhereorganisationsaremakingtheefforttocomplyandthatsomediscretioncanbeappliedtotheexerciseofformalenforcementpowers.ThemainenforcementoptionsopentotheICOinthisregardinclude:• Informationnoticesrequiringorganisationstoprovidespecified

informationwithinacertaintimeperiod.• Undertakingscommittingorganisationstoaparticularcourse

ofactioninordertoimprovetheircompliance.• Enforcementnoticescompellingorganisationstotaketheaction

specified in thenotice tobringaboutcompliance.Failure tocomplywithanenforcementnoticecanbeacriminaloffence.

• Monetary penalty notices requiring organisations to pay amonetarypenaltyofanamountdeterminedbytheICO,uptoamaximumof£500,000.

In the transcript of the video responding to frequently askedquestions,ascontainedontheICOwebsite,DavidEvans,GroupManageroftheICO’sBusinessandIndustryGroup,describestheICO’sapproachtoenforcementofthenewregime.HestressesthattheICOwillexpectanywebsiteoperatorthathasnotyetachievedcompliance to be able to show that it has taken steps towardscompliancealready(forexample,bycarryingoutacookieaudit)andhasarealisticplantoachievecompliancewithinaforeseeabletimeframe.

Hefurtherconfirmsthat it isunlikely that theICOwill issuemonetarypenaltynoticesforviolationsoftheRegulations.Instead,theICOwouldmostprobablyconsideraformalundertakingoranenforcementnotice.

CONClUdINg COMMENTSAs set out above, organisations not yet complying with the

regulationsshouldrefertotheICO’sguidanceandseekspecificlegaladviceabouttheirindividualcircumstances.Inordertominimise,asfaraspossible,theriskofenforcementactionitisrecommendedthattheseorganisations,assoonasispossible,conductanauditoftheirwebsitesandproceedwiththeotherpracticalstepshighlightedbytheICO.

For further informationabout the “CookieLaw”and its effectonyourbusiness, please contact amemberofWoodfines Solicitors’CompanyCommercialteam,basedinCambridge,Bedford,MiltonKeynesandSandy,atwww.woodfines.co.uk

James is a solicitor in the Company Commercial department at Woodfines Solicitors’ Milton Keynes office and practices in all

areas of company commercial law. he obtained a first class degree in Ancient history and Archeology at the University of

liverpool in 2004, before undertaking the Graduate Diploma in law and lPC at the BPP law School in london. James trained in the City

and joined Woodfines in 2012.

James lives in Woburn Sands, having grown up and attended school in nearby leighton Buzzard. In his spare time he plays football for two local teams and follows West ham United. he also enjoys playing golf

and going to the gym.

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SEMINAl ARTIClES – PRICINg

isuppose we had better jump straightto the chase – you didn’t go intoMarketing to dealwith numbers! I knowthis butmaybe I can change yourmind.TheMarketer’s irrational fear of numbershas set the profession back, putting usbehindallof theotherbusinessfunctionsand placing the role ofMarketing at riskofbeingcut sincewearenowseenasa‘costcentre’.Thatwasn’thowitwasmeanttobe.Marketersandtheircompaniesbothsufferthiswaysobearwithme.

Let’sstartwiththerealbasics–whatisthepurposeofMarketing?Youcanchecktheanswerintheboxbelow(notyet!)butIcantellyouthatit’sNOTtomakehappycustomers,sellmore,understandcustomerneeds,communicate, godigitaloranyother ideas thatpeoplehave.Alrightyoucanlooknow(seeboxbelow).Whenyouhavefinishedarguingwithme,wecancontinue.

Allofthereallygoodthingsmentionedaboveareall‘really useful’ – but they are not ‘the point’ of real Marketing.Thepointofunderstandingcustomerneeds,buildingrelationships,developingengagingcommunications etc so that we can get the price up.Whatotherpurposecantherebeforcommercialorganisations? Still don’t believe me? Look at one of thecompanies who has done this really well… tell me (with astraightface)thattheiPhone4Sisreallyworth£499.

Afewkeyfacts:• Everycommercialorganisationneedsprofitstosurvive• Profitscomefromrevenuesandrevenuescomefromcustomers• Some90%oftheclassicMBAsyllabus(includingMarketing)

focusesonwhathappensinsidetheorganisation–whileALLofthemoneyismade(orlost)outside

• Firmsdon’tgooutofbusinessbecausetheyhaverunoutofcashbutbecausetheyhaverunoutofcustomers

• Marketingis(orshouldbe)closesttocustomersthananyoneelseintheorganisation

• Marketing is therefore responsible for generating theorganisation’sprofit

• Inthemajorityoforganisations,financesetstheprices

SETTINg PRICESOver 65% of B2B organisations use the ‘Cost Plus’ method ofsetting prices. This involves calculating the cost of the product

PAUl FIFIElD

This is the second in a series of seminal articles that all Marketers should read. These articles are based on the extensive research carried out by Dr Paul Fifield among practitioners,

academics and consultants during the last few years. If you have any additional texts that you think should be added to the list please email: editor@cambridgemarketingpress.com

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(including allocated overhead) and adding a notional margin.Althoughitistheeasiestmethodforcompaniestouse,ithassomeseriousshortcomings. It ignoresmarketforcessothatprofitisnotguaranteed. It’s fine for post analysis (contribution) but not for a priori pricingbecauseitsimplypassesoninefficiencies.Afarbettermethod,althoughnotas‘easy’asCostPlus,is‘MarketPricing’asthisrequirestheMarketingfunctiontouseitscustomerinsighttosetthepriceaccordingtowhatcustomersarewillingtopay.

ObviouslyifMarketingisacostcentre,thencustomerswon’tbewillingtopayverymuch.WhereMarketingisdoingthejobthatitwascreatedfor,pricesandmarginswillbetheenvyofcompetitors.

SowhatexactlyshouldMarketingbedoingtoincreasepricesandmarginsandsomakeitselfindispensabletotheorganisation?

PeterDruckeroriginallycoinedthetermprofit centre around1945.Helater recanted,calling it“Oneof thebiggestmistakes Ihavemade.”Laterheassertedthatthereareonlycostcentreswithinabusiness,and“Theonlyprofitcentreisacustomerwhosechequehasn’tbounced.”

OVER TO yOUThepurposeofMarketingistobeabletochargethehighest

possiblepriceforyourproductorservice.

Dr Paul Fifield holds a degree in Business Studies as well as an MBA and a PhD in Marketing Strategy, both from Cranfield University. he was elected a Fellow of the Chartered Institute of Marketing (FCIM) in 1988, an elected member of CIM Council 1999–2001 and the CIM

International Board of Trustees 2002–2004. Paul was appointed Visiting Professor at Southampton University School of Management in 2006.

he is currently President of the CIM Southern Region and a Fellow of the Royal Society for the encouragement of Arts, Manufacturers and

Commerce (FRSA).

WhAT ExACTly ShOUld MARkETINg bE dOINg TO INCREASE PRICES ANd MARgINS ANd SO MAkE ITSElF INdISPENSAblE TO ThE ORgANISATION?

REFERENCES

WINKLER, JOHN (1983) “Pricing for Results” Butterworth heinemann, oxford

MARN M & ROSIELLO R (1992) “Managing Price, Gaining Profit” harvard Business Review, Sep–oct

PETER DOYLE (2000) “Pricing for Value” (in Value Based Marketing) John Wiley & Sons, Chichester

bElOW ARE jUST A FEW OF ThE qUESTIONS ThAT WE ShOUld bE FOCUSINg ON:1 Are there any substitutes? Rememberwe are dealing

withperceptions,notreality.IfCocaColacanconvinceenoughpeoplethatitisthe‘realthing’,thensocanyou.

2 How necessary is the offering? Apple can convincepeople that if they don’t have the latest iPhone, theywillbealaughingstock.

3 Is information perfect? Howmuch do the customersreally know about what is available? The idea of a‘level playingfield’ is fine for economists but not forMarketers.

4 ThepurposeofMarketing is tobeable tocharge thehighestpossiblepriceforyourproductorservice.

5 Is it habit forming? Rememberthat feelingwhenyouhavelefthomeandforgottenyourmobilephone?Howwillyouevermanagetogetthroughtheday?Doyourcustomersfeelthesameaboutyourproduct/service?

6 How different (or unique) is the offering? FromHeinzbeanz toBMW,differentpays seriousdividends. Weknow that customers hate relying on price whenchoosing,socomeupwiththeirrefutablereasonswhytheyshouldpreferyouandbehappythatthehighpricereflectstheadditionalvaluetheycrave.

7 Is there a strong association between Price & Quality? How hard have you been working on this? If youhaven’tthenyouwillprobablyfindyourselfinapricewar. Remember, its all about perception and that isMarketing’sjob.

8 Is there a partnership/relationship with the supplier? I hope all that investment in CRM, CSR and SocialNetworkingispayingoff.

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IT TAkES A VIllAgE

thekindsofpeoplewhoaremakinghugeimpactswithintheircompanies

andwho are driving brand impact fromthe outside do not necessarily share acommonrésuméorbackground.Buttheydoshareconsistentcharacteristicsthatsuitthemfortoday’sbusiness,nomatterwhatroletheyhaveandnomatterwhatlevelofsenioritytheyhaveachieved.Curiosity

Youcanfindpeoplewith thedesiretoexplorenewideas, indetail,andwhodo not need specific direction to do so.An interest in the intersection of humaninteractionsandtechnologyisatraitthatishelpfulinsocialmedia,communications,andcustomerexperienceroles.Enthusiasm

Regardless ofwhether youhave a super sexyproduct, yourteammembersshouldbeenthusiasticaboutmakingyourbusinessbetter.You can find people with a positive outlook and a zealfor doing their job,whether it is at the receptiondesk or in theexecutiveoffices.Innovation

Ignore the buzzy nature of this word for a moment andconcentrateonwhatitreallymeans:theintroductionofsomethingnew. Succeeding today requires new approaches to existingprocesses, both internally and externally, across the entireorganisation. You can acquire and nurture this attribute in thepeopleyouhire,bothintheirattitudeandinthepracticeoftheirjobs.Motivation

Becauseoftheimmediacyofthisenvironment,havingasmanyself-startersaspossibleisagoal.Youarelookingforpeoplewhotackle theirworkwith gusto and look to not only check off themust-dosforaprojectbuttomakeitevenbetterthroughtheirownparticipation.Collaboration

The onlineworld and all of the toolswithin it are creatingunparalleled opportunity for cooperation, shared wisdom, andcollective success. Successful socialmedia professionals are notlikelytosay‘‘that’snotmyjob,’’andtheyarequicktoembracethecontributionsofothersandworkwithinteams.Translation

Lookforpeoplewhoworkwellacrossdepartmentsandwhohavethepatienceandclarityofexplanationtoteachothersabouttheimpactthesocialwebcanhave.Today’scommunicationsandonlineprofessionalsshouldbeadeptatspeakingthelanguageof

The Realities of Social Media Hiring and Management

JAY BAER

AMBER NASlUND

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boththeexecutivesandthepeoplewhoaredoingtheday-to-dayworkonthefrontlines.Humility

Great employees will elevate the entire company throughtheirwork.Theywillencourageandrecognisetheircolleaguesascontributing, valuablemembers of the business community andhelptheirorganisationontheroadtoindustryleadership.Theyarenot in it to scorewins for their ‘‘personal brand’’ or flaunt theirindividualachievements.Diplomacy

Thepeople in socialmedia rolesare today’schangeagents.These people are committed to the long-term vision, and arededicated to delivering on a lot of legwork, communication,negotiation,discussion,education,andtrialanderror.Connectivity and Awareness

Thesearepeople-focusedjobs,insideandout,andnotjustinspecificcommunityorsocialmediaroles.Havingemployeeswhocantalktopeople,workwiththem,socialisewiththem,andconnectwith them inmultiple places will help expand your reputation.These individuals can continually observe their company, theindustry, and the onlineworlds they participate in and uncoveropportunitiestosharemoreinformation,providesomethinguseful,or educate internal people onwhat is happening ‘‘out there’’ tomaketheonline-to-offlineconnectionevenstronger.

SkIll SETS: ThE RISE OF ThE gENERAlISTDo you need public relations (PR) people? Marketing people?Customer service people? Perhaps. But what if rather thancategorisingyourteammembersbasedontheindustrytheycomefrom,yousoughthybrid skill sets thatareadaptableandelastic?Think ingeneral termswith some focusonakeyareaofdepth,insteadofspecialiststhatcanbetoospecificanddifficulttoadaptorevolve.Searchforwell-roundedprofessionalswithcorebusinessskillsthatcantranslateacrossrolesandenablethemtoexcelinanever-changingenvironment.

Thesearetheskillsetsyoushouldseek:Business Process/Planning and Analysis

People who understand financial frameworks for profit and

lossandstrategicandlong-rangeplanning(includinghowtowritegoalsandobjectivesandhow tomapoutexecutionata tacticallevel)willbebestsuitedtofulfillhigh-leveltasks.Thekeyhereishavingtheabilitytothinkatacompanylevel,notwithinaverticalfunctiononly,andnotsolelyinalinearfashion.Social Media Anthropology and Participation

Thoseresponsibleforspearheadingsocialmediashouldhavesomeexperienceusingitthemselves,eitherfortheirpersonaluseoronbehalfofclientsorothercompanies,toensurethattheyfullyunderstanditsuses,customs,andoverallimplications.Thatmeansfamiliaritywiththemostwidelyknowntoolsandtechnologiesaswellasaninterestinwhatisnewonthescene(whileevaluatingthetrendswithadiscerning,editingeye).Academicknowledgeisgood,appliedexpertise isevenbetter.Peoplewhohavemademistakesinsocialmediaandlearnedfromthemcanalsoprovidevaluableperspective.Hedgehog Management

Real-timestrategiesthatarewellconceivedhavemanymovingpartstomanageanddrive.Peoplewhoexcelat jobsthatinvolvesocialmediaoronlinecommunicationcantackleprojectsthatspanmultiplecategoriesandkeepallthepiecesmovingtowardalarger,crystal-clear purpose. As introduced in Jim Collins’ bellwetherbookGoodtoGreat,theHedgehogConceptisthe‘‘bigidea’’thateverythinginabusinesspivotsaround:whatyouaregreatat,whatyou canmakemoney doing, orwhat you are passionate about.Getting people who can manage execution toward this centralvisionisvitaltorealisingthepotentialofreal-timebusiness.Customer or Client Mind-set

Whether it is a formal title or not, it is essential to have anindividualonstaffwithexperiencecommunicatingwithcustomersdirectly and fostering those relationships tomeet business goals.Find people who care about working with and helping yourcustomersandwhounderstandhowtheircontributionsaffect theoverallcustomerexperience.Written Communication Skills

Remember,oneof thecore tenetsof theNowRevolution isthatsocialcommunicationisreplacingface-to-faceandtelephonecommunication in many cases. From 140-character tweets toe-mails,blogcomments,andproductreviews,thecurrencyofthesocialwebislargelythewrittenword.Itisimportantthatyourteamcancommunicateclearly,coherently,andconciselythisway.

NEW RESPONSIbIlITIESTherearetwomajorimpactcraters–andemergingopportunities– thathavebeencreatedby socialmediaon thehumanscapeofyourbusiness:newrolesthatarefocusedonthebusinessofnowandfunctionsandresponsibilitiesthatneedtobeincorporatedintoexistingroles.

Socialmedia and real-time business affects every employeeinyourorganisationinsomeway.Yourofficialsocialmediateam

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–thepeopletaskedwithdevelopingandmaintainingyoursocialoutposts and real-time customer connectivity – are part of yourapproach.Buttherestofyouremployeesareequallyimportanttoconsider,asmanyofthemwillhavetoincorporatesomemeasureofnewresponsibilitiesintotheirexistingjobfunctions.

Thefollowingaresomeofthetasksthatyour‘‘unofficial’’socialmediateammembersmayhavetotackle:Brand Immersion and Representation

Once upon a time, the only people who really needed to‘‘get’’ your brand were the ones who built its external facade:marketing, public relations, and corporate communications. Buttoday,everyoneisaspokesperson,orhasthepotentialtobe.Brandexperienceistheverylifebloodofmanyorganisations,andabrandwithdepthandpersonalitystandsoutonline.Giveeveryonesomeguidelines,but also the freedom toarticulateand representyourcompanyintheirownauthenticway.Success Metrics

Although only a small group of employees are likely to beresponsible for specifically measuring the impact of your socialmedia initiatives, thebestprogrammesare those thatshare thosemetricswithallemployees.(Imagineiftheonlypersonwhoknewthescoreofafootballgamewasthecoach.)Sharingthatinformationcanhelppeoplefeelconnected,feelinvestedintheoutcome,andunderstandhowtheirworkismakingadifference.Listening

Having a finger on the pulse of how socialmedia and theactivitywithinitaffectsyourcompany,yourdepartment,andyourindustryisauniversalresponsibility.Thisisacriticalcomponentofmodernbusinesssuccess,asisdeterminingwhoinyourcompanywillhavelisteningasapartofhis/herrole.Internal Wiring and Story Harvesting

Yourcompanymustbeabletocommunicatestoriesseamlesslyand whenever opportunities arise. It can be difficult to haveenoughbreadthifjustoneortwopeopleareseekingstories,soleteveryonecontribute,fromthereceptiondesktothemanufacturingfloorandtheinformationtechnology(IT)department.Buildgreatinternalcommunication,andgivepeoplethetoolstoshareideas,experiences,andexpertise.Engagement

Yoursocialmediarepresentativeswilldomostof theonlinecommunicationwithyourcustomersandprospects–butnotall.Thecurrentissometimestooswiftandtherivertoobroadforoneortwosocialmediaspecialiststomanagealltheonlinetouchpoints.The restofyour teamcanhelpbyknowinghowandwhereandwhen to engage, too. Build education and training programs forthosewhowanttogetinvolved,andhelpthembepartoftheeffort.

Today,theanatomyandthemakeupofyourindividualteammembers needs to be a bit different.The employee that thrivesin today’sbusiness– theNowRevolutionary– isawell-roundedpersonwithadynamicpersonalityandskillset.

SO lONg, FAREWEll: PREPARINg FOR dEPARTURESSoyouhaveworkedhard tobuildanoutstanding team.Perhapsyou are even doingmany of these things already, recruiting andcultivatingtalent,givingthemavoice,andfindingnewandexcitingwaysforthemtocontribute.

Itisnaturalthentofearthatyouwillgroom,train,empower,andunleashtheseamazinglyawesomeworkers,onlytohavethembecometoovisible,andtoovaluabletolose.

That is why the most important thing you can do for yourcompany is not to create individual superstars but to create asuperstarmentalityandinfuseitintoeveryoneyoucan.Thisisthe‘‘whatifshegetshitbyabus’’thing:ifyouramazingsocialmediaproleavesthecompany,areyougoingtoloseground?Orcanyourcompanypickrightupandmoveonbecauseyouhavegotabenchfullofoutstandingteammembersalreadyhardatwork?

Oneofyourbestandbrightestmightindeedheadforgreenerpastures someday or branch out on his own. If headed to acompetitor,thatpersonmighteventakeacustomerortwotothenewcompany.Butifyouareconstantlybuildingateamthatincludeswell-equippedpeople,amind-set forgreatergood,theability foreveryone toparticipate to theirowndegree,andanenvironmentwhereanyoneandeveryonecanexcel,youwillalwaysbeprepared.

Also,keepthefuturetopofmind.Alwaysbeinterviewingandkeepinganeyeoutforpotentialtalent,evenifyouarenothiring.Thinkabouteverymemberofyourteam,andwithwhomyouwouldreplacethatperson,ifnecessary.Writedownsuccessionplansforkeyroles that includenotonlywhomightfill thosepositionsbutwhatskillsorattributesaremostcriticaltoreplace.Keepintouchwithyourbenchsothatyoucanmovequicklyifadepartureoccurs.

You have probably got a good pool of the talent you needrightinsideyourownorganisation,onyourexistingteams.Keepaneyetowardthehorizonanddoyourbesttoempowerthevaluablepeopleyouhave;thenyouwillalwayskeepyourmomentum.

ThE REAlITy IS, ThE SPEEd ANd TRANSPARENCy OF MOdERN bUSINESS MAkES IT IMPOSSIblE TO FAkE ENThUSIASM OR ExPERTISE

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dOINg IT RIghT: ThINkgEEk‘‘Star Wars? Or Star Trek?’’SobeginstheprospectivenewteammemberinterviewprocessatThinkGeek,ane-commerceandcataloguecompanyfromFairfax,Virginia,thatexclusivelyoffersgoodsthataretheenvyofthegeeky.IfyouareinthemarketforamodelfigurinefromthemovieAlienthatplugsintoyourcomputer’sUSBportandmenacinglyflicksitstongueatyou,thenThinkGeekisthewebsiteforyou.

And that is their genius.ThinkGeek has an incredibly goodhandleonwhotheircustomersareandwhattheircustomerswant,partially because the company interactswith customers in everywayimaginable,frome-mailtophone,toTwitter,toFacebook,toblogs, toYouTubeandtoFlickr.Butmoreimportantly,ThinkGeekunderstandstheircustomersbecausetheyaretheircustomers.

‘‘Ageekisdifferentfromanerdoradork,’’saysJamieGrove,thecompany’sVicePresidentofEvilSchemesandNefariousPlans(marketing).‘‘It’shardtoexplain,butyouknowageekwhenyouseeone,andwhenyouareone,’’heasserts.

How much does ThinkGeek embody the lifestyle of theiraudience?Acustomeroncepostedanote to thecompanyon itsFacebookpageinbinarycode(whichlookslikethis,forremedialcomputersciencestudents):

0101010001101000011001010010000001001110

0110111101110111001000000101001001100101

0111011001101111011011000111010101110100

0110100101101111011011100010111000100000

Withinminutes,ThinkGeekreplied,alsoinbinary.Therealityis,thespeedandtransparencyofmodernbusiness

makes it impossible to fake enthusiasm or expertise. The NowRevolutionwilloverthrowthecharlatansandthedispassionate.

Grove suggests that automobile manufacturers should havepeoplewhoare really into carsworking in everyposition in thecompany.

‘‘Socialmediafavoursthereal.Andtheclever,’’hesays.The ThinkGeek corporate culture is intentionally addictive,

amixture of like-minded teammembers and an unceasing flowof engagement mechanisms where every employee can be thestar. Someof the company’smostpopular itemsare ‘‘ThinkGeekExclusives,’’ products dreamt up and manufactured by the firmdirectly,mostofthemsubmittedbyteammembers.

When theThinkGeek socialmediamanager is on vacation,it is considered an accomplishment to be asked to take over asthedesignatedTwitterandFacebookupdateartist.But,fill-insdo

not use it as an opportunity to put their own spin on customerinteraction. ‘‘Thehighesthonour iswhenpeople say, ‘‘Wedidn’tknowitwasyou,’’or‘‘Wecouldn’ttellthedifference,’’saysGrove.Itisaculturethatoperateswithonemind.

HowalignedareThinkGeek’sfiftyemployees?EveryThursdaynightisDungeons&Dragonsnightattheiroffices.WhenwasthelasttimeyouhadapackofOgres,ora4”gildedbroadswordbeingdiscussedinyourlunchroom?

This esprit de geek is bynomeans accidental, according toGrove. ‘‘We hire for culture, period... Being geeky isn’t just anadjective,it’sastateofmind.’’

Thecompanytakesfulladvantageof thesharedculturalandcorporateunderstandingof its teambyenabling them tooperatein real time, eliminating obstacles and cumbersome processes.Although their social media manager is the official tweeter,nearly every employee monitors Twitter constantly, looking foropportunitiestosolveproblemsanddelightcustomers.

Duringthe2009holidayseason,marketingconsultantSusanBaier had to return an electronic item she had ordered fromThinkGeekthathadstoppedworking.William,thecustomerservicerepresentativesheconnectedwithduringalive,onlinechat,noticedhermailingaddressandmentionedtheNoah’sArkFloodtypedelugetheweather channelswere predicting forArizona thatweekend.Jokingly,heaskedifSusanwasawarethatThinkGeekalsosellsarks.Secondslater,shepostedaTweetaboutthegreatcustomerserviceshehadreceived fromWilliamandgotan immediate replybackfrom@thinkgeek onTwitter that the accolades had been passedalongandthatWilliamhadofferedtoflyouttoassemblethearkand

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“ and finally... what type of video games do you like to play?’’

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Jay Baer is a hype-free content strategist, speaker, and author. he founded the social and content accelerator firm Convince & Convert in

2008. It is the fifth marketing services firm he’s started or managed.

Jay is a renowned and popular social media keynote speaker, delivering as many as 100 insightful, memorable, interesting and hilarious

presentations each year to groups as large as 5,000.

he’s also co-author of The NoW Revolution, 7 Shifts to Make Your Business Faster, Smarter, and More Social (Wiley, 2011) a leading book

on social business, and an Amazon category best-seller.

Jay has consulted with more than 700 companies on digital marketing since 1994, including Caterpillar, Nike, Visit California, Billabong, and 29 of the Fortune 500. he was named one of America’s top social media

consultants by Fast Company magazine, and his Convince and Convert blog is ranked as the world’s #1 content marketing resource. he’s also

co-host of the popular weekly Social Pros podcast.

Amber is a business strategist with a strong focus on social, communication and community initiatives.

her expertise spans professional fundraising, corporate communications, marketing, professional services, and social business

strategy. She’s successfully run multimillion dollar fundraising campaigns, built and led executive communication teams, and helped launch international brands. As the VP of Social Strategy for Radian6

(successfully acquired by Salesforce.com in 2011), she advised Fortune 500 companies on social business strategy, and built a renowned

community and social media team.

bringherreplacementitemwithhim.Thatisturningthespeedofnowtoyouradvantagebyseamlesslyconnectingcustomerserviceandsocialmedia.

‘‘Forus,e-commerceisthegreatestvideogameeverinvented,’’saysGrove.‘‘Everyoneisengagingacrossmultiplechannelsatthesametime,constantlyinteractinginternallyandwithourcustomers.’’

NosurprisethenthatthesecondquestionyouareaskedwhenbeinginterviewedforajobatThinkGeekis,‘‘Whatvideogamesdoyouplay?’’

gETTINg ThERE: FINdINg TAlENT yOU CAN TRUSTTherearenotonlynewrolesemergingbutalsonewexpectations

andfunctionsforthepeoplealreadyonyourteam.Youmayormaynot needbrandnew socialmedia jobs in yourorganisation, butwithout question, speed and social media will touch the job ofeveryoneyouhavealreadygot (if ithasnotalready).The time isnowtolookatthewayyouareputtogetherandhowyouempowerthehumanengineofyourorganisation.

hERE ARE ThE ElEMENTS TO kEEP IN MINd:

1 Hireforculture.Trainforskills.

2 Payattentiontothenewrésuméelements,suchassocial

graphs, that can help you find like minds (and avoid

misfires).

3 All roads lead to customer experience. Everyone is a

potentialspokes-persontoday,sohirewiththatinmind.

4 Bewillingtorethinktraditionalresponsibility-basedjob

descriptionsandlocationsinfavouroffindingtherightfit

foryourcompany’smind-setandattitude.

5 Thinksuperstarmentality,not just superstar individuals.

Cultivateanapproachthatcanbetaughtandscaled.

6 Consider addingnew roles thathave socialmedia and

real-timewebresponsibilitiesattheircore.Lookbeyond

tools,buttowardoutcomes.

7 Analyseyourexistingroles,andoutlinehowandwhere

thosesocialmediaareasintersectandaffectthem.

8 Educateyourteamswithgoals,vision,andpurpose,not

proceduremanuals. Let them see theflag andfind the

paththemselves.

9 Realisethatpeoplewanttoworkforsomethingmorethan

asalary.Givethemasenseofcontributionandpurpose.

‘‘FOR US, E-COMMERCE IS ThE gREATEST VIdEO gAME EVER INVENTEd,’’ says Grove ‘‘EVERyONE IS ENgAgINg ACROSS MUlTIPlE ChANNElS AT ThE SAME TIME, CONSTANTly INTERACTINg INTERNAlly ANd WITh OUR CUSTOMERS’’

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UNdERSTANdINg ThE SPhERE OF INFlUENCE

marketing is all about influence.We use various tools and tricks

to influence somebody into doingsomething,whetherthatisgoingonline,downloading a report,making a phonecall or simply following somebody onTwitter.SometimesweinfluencedirectlythroughPoS,directmarketingcampaignsand email. And a lot of the time weinfluencethroughthirdparties thathelpto reach a lot of people and provide alevelofendorsement,suchasthemedia.

IfIpolled100marketersaboutwhatinfluencestheircustomersI’mcertainthat95ofthemwouldcomebackwith‘thepress’.Itisthemostobviousandunderstoodsourceofinfluence,however,itisn’ttheonlyone.Ithinkthatbyputtingourcustomerinthecentreofourworldandthentryingtounderstandeverythingthatinfluencestheirdecisionweendupwithsomethingthatachievestwothings.Firstly,wefocusoureffortsonwhatisimportant.Andsecondly,wehaveapowerfultooltohelpexplainmarketing’sroletoourorganisation.

SOURCES OF INFlUENCEAs I touchedonabove, thepress is anobvious influencerandasignificantoneatthat.However,therearetensofothersourcesofinfluencefromyourbusinesscardsandstaff,totheGooglesearchresults page.The key to identifying them is to think about everytouchpointthatenablesyourcustomertoformanegativeorpositiveopinionofyourcompany,brand,stafforservices.InthetablebelowI’veidentifiedafew.Itisn’tanexhaustivelist,insteadjustastartingpoint.

Table 1: Potential sources of influence

OnlineYourwebsite

Google’sresultspage

LinkedIn

Twitter

Facebook

3rdpartywebsites

EventsConference

presentation

Exhibitionstand

Awardsceremonies

Hostedworkshops

In-houseevent

CollateralYourbusinesscard

Yourliterature

Emailmarketing

Casestudies

MediaNationalpress

Journals

Trademagazines

Businessmagazines

Blogs

PeersColleagues

Ex-colleagues

Competitors

Comparablecompanies

Peernetworks(like

LinkedIngroups)

StaffTheirknowledge

Their‘likeability’

Theirappearance

Theirconfidence

Theirexpertise

PublicationsAnalystreports

Directories

OtherUsergroups

Lobbyists

Charities

Industrybodies

VentureCapitalists

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Mostofthesearestraight-forwardandobvious.Theremightbeafewthataren’t,suchasGoogle’ssearchresults.WiththisIdon’tmeanwhetheryouappearornot,butinsteadwhatthatfirstpagesaysaboutyou.Ifyourcustomerissearchingforyoubynameandyouappearinthetopthreeyoumightthinkthatisjobdone,butit isn’t.Peoplewant to readaboutcompaniesonotherwebsites,they don’t trust the propaganda thatwe feed themon corporatewebsites,insteadtheywanttofeeltheyhavefoundthetruth(thisiswhyreviewsonAmazonaresopowerful).AswellasbeingonthetopofGoogle’sresultsyoualsoneedtomakesurethat theotherresultsarerelevanttoyourcompanyandpresentapositivepictureofyourbrand.Thisisachievedthroughincreasingthesizeofyourdigital footprint outside of a single website, such as Slideshare/Youtube/Vimeochannels,Facebookpages,blogs,Twitterfeed,etc,aswell as ensuringotherwebsites are talking about you. Seeinglots of different sources talking about your companyboosts yourcredibilityandbuilds trust.There isalso thedanger thatnegativeinformationcouldhaveaterribleimpactonyourbusiness.

Forexample,searchfor‘MeltwaterNews’inGoogle.Thisisacompanythatprovidesagoodonlineclippingsservice (I’veusedthembefore),however,atthepointofmakingadecisionIGoogledthemandonthefirstpage,alongsidethecorporatepropagandawasalinktonegativecontentabouthowthecompanyworksandtreatsitsstaff.RatherthanmecallingthemupandarrangingatrialperiodIspentthenextfewweeksdiggingaroundbeforeaskingthemtoexplain thisnegativity. Iwenton tobecomeacustomer,butourbrainsdon’t forgetnegativememories, insteadwebuild themupovertime.Ialwayshaditinthebackofmymind.IfIhadfoundacompetitorthatdeliveredtheservicesIwasafterIwouldhavegonewiththem.

Somesourcesofinfluencearewithinourcontrol(atleastmostofthetime),suchasstaffcorporatewebsiteandcollateralthatweproduce.However,manysourcesareoutsideofourcontrolandthismakesusallveryuneasy.Thereisanewexampleeveryweekofacompanyfallingfoulonsocialmediaaspeoplepokefunorvent

theiranger.LookattherecentMountainDewcampaigntorenametheirnewdrink.Theyhadtopullitintheendatgreatexpense.Butthislackofcontrolisnotdowntojustsocialmedia.

Themostsignificantsourceof influenceonourcustomers istheirpeers,colleagues,friendsandfamily.IntheB2Bcontextourcustomers rarely reachdecisionson theirown–unless thevalueofservicesorproductsislow.Insteadtheyseekopinionsofothers,whether that is theirbossor colleagues they trust.The larger theorganisation, and thehigher thecostsof goodsand services, themorepeople that are involved.Sowhilst you’ve spent thousandsofpoundstargetingandcommunicatingwithyourtargetcustomer,somebody that you don’t know has influenced your customer’sfinaldecision.Wedon’tgettomeettheseinfluencersbuttheyhaveopinions.Whichsituation is ideal– theonewhere theunknowninternal influencerknowsallaboutyourbrandand feelspositivetowards you, or the unknown internal influencerwho has neverheardofyouormaybehasanegativeorneutralopinionofyou?Theimpactofthisisthatwhilsttargetingtheend-userisvital,itisalsoimportanttoopenupthefieldofcommunicationtothewidercustomer organisation. For example, should part of your strategybeaboutcommunicatingwiththeC-levelsuiteaboutbigstrategicissuesaswellascommunicatingwithyourtargetend-user?

Thinkingaboutallofthedifferentsourcesofinfluenceenablesyoutobuildyourown‘sphereofinfluence’(see figure 1).Inityoucanrepresentacompleteviewofhowyourcustomerreachesdecisions.Youcanassignweightingtoeachcategory,orchannelwithin,anditcanalsobeusedtoassignresourcesandmonitorsuccess.Itisbestillustratedasaspherearoundyourcustomerbecausetheideaistosurroundyour customerwithpositivemessagesnomatterwheretheyturntobeinfluenced.

This customer-centric viewof theworld gives themarketingteamaclearpictureofwhatneedstobedone,oratleastaimedfor.By identifying themost important sources,which youcancross-referencewithabitofcustomerresearch,youcanfocusattentiononthepartsofyourmarketingplanthathavemoreimpact.

Whenbuildingyourownsphereofinfluenceitisimportanttoincludealltouchpoints,includingthingswithinmarketing’sremitaswellasthevitaltouch-points–thestaff.Thiscouldbesalesstaff,customer services, service engineers, consultants, analysts, etc.Ofallthesourcesofinfluenceabovetheyarethemostsignificantin their ability to generate apositiveornegative impressionof acompany.

A POWERFUl TOOlAtthebeginningofthisarticleItalkedaboutthisapproachhavingtwobenefits.Thefirstis,Ibelieve,bettermarketingcommunicationstrategies.However,thesecondbenefitcouldbeevengreater–theabilitytocommunicatemarketing’sroleinthemodernorganisation.

Nowunlessyouareincrediblyluckyinyourcareeryouwillhaveworkedforacompanythatdoesn’tvaluemarketing.Itmight

UNlESS yOU ARE INCREdIbly lUCky IN yOUR CAREER yOU WIll hAVE WORkEd FOR A COMPANy ThAT dOESN’T VAlUE MARkETINg

41

Figure 1: The sphere of influence is unique for every company and sector

bethattheyjustfundamentallybelievethatitisn’tnecessaryorthattheydoitbecausetheythinkthatit isbettertodoit thannotdoit.Whyareweinthisposition?Marketinghasbeenarecognisedprofessionforgenerations,yetwearestillseenas‘nice-to-have’bysomeofouremployers. I’veworkedinmanycompanies just likethis,althoughImustpointoutthatmycurrentemployerdoesn’tfitintothiscategory.

Ithinkweareinthispositionbecauseweasaprofessionhavefailed.We’vefailedtoexplainitclearlyandinsomecaseswe’vepromisedtheearthandfallenfarshort–notbecausewelacktheskills,butbecausetryingtoinfluencepeopleandmarkettothemishardwork.

Manyoftheorganisationsthatdon’tvaluemarketingdovaluesalespeople.Itisasimpleequation,youpaythem,theybringinmoneyandaslongastheymakemorethantheycost,thentheyaresuccessful.Youcanevencomparedifferentsalespeople,promote

thebestperformersandditchtheworstones.Marketinghasalwayshadadifficult relationshipwith sales functions,butby includingthem in theabove sphere of influencewecanexplain topeoplethat the two functionswork together. For example,whena salesrepresentative finishes a meeting with a potential customer, thecustomerinstantlydoesabitofduediligence.IftheydoaGooglesearchandfindpositivemessages,thenthathelps.Iftheythenpickup a copyof their chosen trademagazine and your company ismentioned, then that also helps to forma positive impression. IftheyattendaconferenceandoneofthespeakersisyourCEO,thenagainthenumberofpositivemessagesisbuilding.Theymaythenringthesalesrepresentativeandplaceanorder.Thesalesrepgetsthecreditforwinningthebusiness,quiterightly,butthisignoresthevitalrolethatmarketinghasplayedinexpandingitsonlinefootprint,feedingstoriestothepressorlobbyingtheconferenceorganisertoletyourCEOspeak.

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User groupsLobbyists

Charities

Industry bodies

VentureCapitalists

Peers

Colleagues

Ex-colleagues

Competitors

Peer networks (like LinkedIn groups)

Comparable companies

Collateral

Your business card

Your literature

Email marketing

Casestudies

MediaJournalsNational press

Trade magazines

Business magazines

Blogs

EventsWorkshops

Award ceremonies

In-house event

Conference presentation

Webinar

Exhibition stand

PublicationsDirectories

Analyst reports

Online

Google results

Your website

3rd party websites

Facebook

Twitter

LinkedIn

Staff

Their ‘likability’

Their knowledge

Their expertise

Their appearance

Their confidence

The Customer

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Thesphereofinfluenceenablesyoutoshowthisrelationshipand also highlight some of the areas where it is impossible tomeasuretruereturnoninvestment.I’vebeenusingthismodelsince2009andI’vefoundittobeincrediblyusefulwhentalkingaboutmarketing’s role. In the end this has helped increasemarketing’sinfluenceandcredibilitywithintheorganisation.

bUIldINg yOUR SPhERETheprocessofbuildingyoursphereisasusefulastheendresult.Thebestapproachistoinvolvedifferentpeople–ideallyfromallofthedepartmentswithinyourorganisation–aswellastheentiremarketingteam.Theidealprocessisshownbelow:

ThE IdEAl PROCESS

1 Captureallofthedifferentinputs–eitherthrough

anopenbrainstormorbyfollowingthetypical

processthatcustomerscouldgothrough

2 Putthemintogroupsthatmakesensetoyouand

yourorganisation

3 Weighupwhichgroupsandparticularinfluencers

arethemostpowerful.Atitsmostsimplelevel,

thiscouldbeprimary,secondaryandtertiary.

Forexample,theEconomist,BBC,FTandWired

couldbeprimaryinfluencerswithinthemedia,

whereasthelocalbusinesspapercouldbe

secondary.Itcouldalsobemuchmorecomplex.

4 Testyourassumptionsandonlyincludesources

thatyouthinkarecredible.Becarefulnottoleave

outoroverlookcolleagueswhoplayanactive

role.Butalsotryandavoidlistingeverything.

5 Talktocustomers.Itdoesn’thavetobea

quantitativesurveyofthousands;insteaditcould

beaquickchatwithahandfulaboutthetypical

processtheygothrough.Itwillhelpyouto

challengeyourdecisions.

6 Presentbacktotheteaminvolved,questioning

everything.Thenupdateasrequired.

7 Presenttheconcepttoyourcompany.Itis

importanttotakepeoplethroughafewscenarios

asyouexplainallofthedifferentinfluences.

Youcangoasdeepanddetailedasyouwant(whichpublications,associations,websites,etc).Althoughifitbecomestoocomplexitmaybedifficulttobringeverybodyalongwithyou.

Now that you havemapped out your customer’s sphere ofinfluenceyoucanthinkaboutrelatedaspects,suchas:• Measurement –alwaysachallenge,butineachsegmentthere

arewaysofprovidingsomeformofanalysis,whetherthatiswebstats,presscoverageorKloutscore.Foreachsegmentthinkaboutmeasurementsandthencommunicatetheirlimitationstothemanagementteam.Themetricsarethenlimitedtoeachchannelandtool,ratherthantryingtolinkthembacktoactualsales,which isdifficultunlessyouhave the right systems inplace.

• Resource focus–arethereanybenefitsofre-arrangingyourteamaroundtheseinfluences?

• Budget –howdoyourbudgetsmapontotheseinfluences?Arethereanyobviousgaps,mayberoomforimprovement?Ithinkthatthebiggestchallengewefaceisexplainingourrole

withinorganisations, ensuring thatwe gainmore credibility andthenusingthistouseourowninfluencewithintheorganisation.Thisapproachenablesustobeclearaboutwhatmarketingcandoand,importantly,whatitcan’t.

Neil is the host of Another Marketing Conference, which takes place on october 18th 2012 in Cambridge. For more information,

visit www.another.uk.com. he is also the head of Marketing at Team Consulting, a leading Cambridge-based medical product development consultancy.

MARkETINg hAS bEEN A RECOgNISEd PROFESSION FOR gENERATIONS, yET WE ARE STIll SEEN AS ‘NICE-TO-hAVE’ by SOME OF OUR EMPlOyERS

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ThE RISE OF EThICAl CONSUMERISM

over thepast twenty years societyhasgrownincreasinglyconcerned

aboutthestorybehindtheproductsandservices that theypurchase.Consumershavebecomeincreasinglyconsciousoftheethicsofthebusinessprocessesthatcompanies adopt includingminimisingharm to the environment and avoidingexploitation of labour. This emergingtrend of “ethical consumerism” is amajordriverofadiverserangeofethicalapproachestobusinessesandtrades.

Althoughthereisnoexactdefinitionforethicalconsumerism,itincludesanumberofbehaviouralcharacteristicssuchasbuyingfairly traded or environmentally friendly goods, boycotting oravoidingcertaingoodsorcompanieswhichdonotcomplywithethicalpractices,ethicalconsciousness,andunderstandingethicalchoices(Szmigin & Carrigan, 2006).Ethicalconsumerismhasbeendescribed by related terms such as “ethical purchasing”, “greenconsumerism”,“moralpurchasing”and“sustainableconsumerism”.Itisaformofconsumeractivisminwhichtheconsumeristakingresponsibilityfortheirpurchasedecision.

Accordingtoarecentglobalsurveyoncorporateethicsandfairtrade,51%ofglobalconsumersperceivethattheimplementationofenvironmentalprogrammesbycompaniesisaveryimportantfactor(Nielsen, 2008).Similarly78%ofglobalconsumersareconcernedaboutwhethertherawmaterialsusedintheproductstheybuyareenvironmentfriendly,puttingconsiderablepressureoncompanies.Thisisanindicationthatethicalconsumerismhasbecomeaglobaltrendandisforcingcompaniestoreassesstheirbusinessprocesses.

A FUNdAMENTAl ChANgE IN ThE Uk FAShION ANd ClOThINg INdUSTRy The ethical movement in the UK first appeared in the 1980s(Newholm & Shaw, 2007)andgrewstronglyduringthe1990s(Cowe & Williams, 2000).Sincethenethicalspendinghasbecomemoremainstreamandevidentinmanysectorsincludingfinance,travelandtransport,foodanddrink,personalproductsandenergy.The“EthicalConsumerismReport”publishedbytheCo-operativeBankhasfollowedethicalspendingintheUKformorethanadecade.In2011thisreportedthatthesaleofethicalgoodsandservicesintheUKhadincreasedby9%(from£43bnto£46.8bn)between2010to2011despitetheongoingglobaleconomicrecession.

ThE IMPACT OF EThICAl CONSUMERISM ON ThE Uk FAShION

ANd ClOThINg INdUSTRy

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VIDYANI WARNAKUlASooRIYA

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The trend of ethical consumerism has also influenced thefashionandclothingsector.Asaresult,differentsubsectorssuchas fair trade, organic, and recycled clothing have been alignedwith ethical clothing.Moreover, charity shopswhich sell secondhandclothingobtainedthroughdonationshavebecomeapopularcomponentof theethicalclothing sector (Carrigan & Pelsmacker, 2009).Total spending on ethical clothingwas £5m in 2000 buthad increasedsignificantly to£172min2008 indicatingastrongemergingtrendintheUK,withthemostnotableincreasesfrom2005to2008.Howeverthistrendslowedafter2008almostcertainlyasa resultof theglobaleconomicdownturn.Spending for the totalpersonalproductsector,whichincludestheethicalclothingsector,hasalsoexperiencedasimilarsetbackduringmorerecentyearsasshowninTable1(below).

Annual spend (£m) 2005 2006 2007 2008 2009 2010

EthicalClothing 29 52 89 172 177 171

PersonalProduct(TotalSector)

1,464 1,390 1,449 1,760 1,792 1,931

Percentage change from previous year

EthicalClothing – 79% 71% 93% 3% -3%

PersonalProduct(TotalSector) – -5% 4% 21% 2% 8%

Table 1: The UK consumer spending on ethical clothing and personal product sector

INCREASEd AWARENESS lEVEl OF CONSUMERSConsumers’ interest in ethical practices has grown for a numberof reasons including increased media coverage (Roberts, 1996),increased level of information (Smith, 1995) and the greateravailability of alternative ethical products (Strong, 1996). Thepresentchangeinattitudesandactionsofcustomerscanthereforebe attributed to many factors including the availability of moreinformation on global climate change, environmental pressuregroups, and increased involvement in ethical issues by youngpeopleintheUK.ThesefactorsactasdriversencouragingtheUKfashionandclothingsectortomoveforwardwithagenuineethicalcommitment.

Celebrityendorsementforethicalmovementshasalsobecomeoneof thedriverswhich is increasing awarenessof theneed foran ethical change among retailers and fashion brands. Productpromotionhasbecomeanintegralpartofmanycelebrities’roles:Livia Firth, the Italian filmdirectormarried toColin Firth,workswiththeecofriendlyfashionmovement“GreenCarpetChallenge”influencing fashion labels to operate under an ethical tag. Shehasbeendescribedas“theworld’smostglamorouschampionof

“ecostyle”andhasbeendubbed“thequeenofthegreencarpet”(Groskop, 2011).

Consumerismhasalsobeenatoolforsocialchange(Tallontire et al, 2001). This social change has resulted in national andinternationalcampaignersandpressuregroups,withthesupportofcharitiesandNGOs,creatingapoliticalclimateforethicaltradinginthefashionandclothingsector.ConsumerboycottsasoneformofethicalbehaviourhaveinfluencedfashionbrandslikeAdidastorethinktheproductionofkangarooleathershoes(Siegle, 2011).Asaresultofthissocialchangecompanieshavestartedtofindmoreethicalalternatives.

ChANgE IN ThE NATURE OF SUPPly ChAINSThe UK fashion and clothing market is linked with developingcountries as 90% of clothing consumed in the UK is importedfrom China, India, Bangladesh and Sri Lanka (Department for Environment, Food and Rural Affairs, 2011). Consequentlyenvironmental and ethical improvements across the internationalclothingsupplychainsareessential.The fashion industry is characterised by high volatility, highcompetitionandhighimpulsepurchasing.Thisnatureoftheindustryhasresultedinclothingsuppliersoperatingwithintightdeadlines.Thesectorcomesundersubstantialcriticismforworkerabuse,forcedlabour and unethical environmental practices. These criticismshaveinfluencedbothhigh-streetandluxuryfashionbrands’supplychains.ThisisevidentintheannualIpsosMorisurveyresultswhichshowed that 92%of theUKconsumers expect companies to beresponsiblefortheirsupplychain(Ramrayka, 2006).

The nature of the fashion and clothing supply chains haschangeddramaticallyduringthelastdecade.Firmshaveidentifiedthe benefits of green supply1 implementation for purchasing andsupply processes (Bowen et al, 2001) and these initiatives haveoccurredasaresponsetoethicalconsumerism.Bowenetalhavedeveloped a framework for evaluating Sustainable Supply ChainManagement (SSCM) Capabilities (see Figure 1 on next page).Theysuggestthattheimplementationofgreensupplyisderivedbyfocusingonthedevelopmentanddeploymentofanorganisation’s

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CElEbRITy ENdORSEMENT hAS AlSO bECOME ONE OF ThE dRIVERS WhICh IS INCREASINg AWARENESS OF ThE NEEd FOR AN EThICAl ChANgE

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specialisedinternalresourcesandthattheappropriatecapabilitiesforgreensupplyaredevelopedbyaproactivecorporateenvironmentalstanceandbyamorestrategicpurchasingandsupplymanagementprocess.

Figure 1: Framework for Sustainable Supply Chain Management (SSCM) Capabilities

Activity DescriptionCorporate Environmental Proactivity

• Alwaysattempttogobeyondbasiccompliancewithlawsandregulationsonenvironmentalissues• Corporatemanagementgivesahighprioritytoenvironmentalissues• Topmanagersinthebusinessunitgiveenvironmentalissuesahighpriority• Leadtheindustryonenvironmentalissues• Effectivelymanagetheenvironmentalriskswhichaffectthebusiness

Strategic Purchasing • ThePurchasingfunctionhasaformallywrittenlongrangeplan(e.g.5–10yearplan)• Purchasingfunctions’longrangeplanincludesthekindsofmaterialsorservicestobepurchased• Purchasingfunctions’longrangeplanincludesvarioustypesofrelationshipstobeestablished

withsuppliers

Supply Management Capabilities

• LiaisonbetweenPurchasingandotherfunctions• Detailedpurchasingpoliciesandprocedures• Partnershipapproachwithsuppliers• Technicalskillsofpurchasingprofessionals• Advancedunderstandingofenvironmentalissuesandhowtheyaffectsupply

Product-based Green Supply • Recyclinginitiativeswhichrequireco-operationwithasupplier• Collaborationwithasuppliertoeliminatepackaging• Effortswithsupplierstoreducewaste

Greening the Supply Process • Environmentalsupplierquestionnaire• Supplierenvironmentalaward• Scoringsystemtoranksuppliersontheirenvironmentalperformance• Requirementonsupplierstohaveanenvironmentalmanagementsystem• Selectionofstrategicsuppliers

The Framework in Figure 1 represents hypothesised relationshipsbetweeneachcategoryandthetwomaintypesofgreensupplieswhichare“Greeningthesupplyprocess”and”Product-basedgreensupply”. The model suggests a positive relationship between afirm’ssupplymanagementcapabilitiesandtheimplementationofProduct-basedgreensupply(H1)aswellasGreeningthesupplyprocess(H2).CorporateenvironmentalproactivityenhancesSupplymanagement capabilities (H3) and both types of green supply(Product-basedgreensupplyandGreeningthesupplyprocess(H5)).Additionally, strategic purchasing and supply promotes supplymanagementcapabilities(H4)andbothProduct-basedgreensupplyandGreeningthesupplyprocess(H6).BowenetalfoundempiricalevidenceforH1,H3,H4andH5.Table2 (below)summariseskeyactivitiesderivedfromtheframework.Supply management capabilitiesFirms liaisebetweenpurchasingandotherdivisions.Policiesandprocedures are established for purchasing as well as improvingthe technical skills of professionals. Partnership approaches withstakeholdersarealsofollowedbymostofthefashionbrands.Oneindustrialexample:theUKsupermarketretailerTescobegantodealwithdyeingandfinishingissuesinitssupplychainandlaunchedagreenprocessors’guide,whichithasusedtoeducatesuppliersabouteveryaspectofitsgreensupplychain(WGSN, 2011).

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Table 2: Framework for SSCM Capabilities: Key Activities

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Supplymanagementcapabilities

Product-basedgreensupply

H4H3

H5

H2H1

H6

H6

Corporateenvironmentalproactivity

Strategicpurchasingandsupply

Greeningthesupplyprocess

H5

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Corporate environmental proactivity enhancement Companies have identified the need to prioritise and manageenvironmental risks effectively beyond basic compliance. As anexample,Tescoisaimingfora30%reductioninitsclothingcarbonfootprint by 2020, targeting “greener” garment production in itssupplychain(WGSN, 2011).Strategic purchasing and green supply Companies are considering implementing sustainable sourcingstrategies. Some luxury fashion brands have adopted ethical andinnovativeprocurementstrategies.Thishasalsoresultedincreatingnewelementsinthefashionsupplychain.ForexampleStellaMcCartneyisonebrandthatintroducedanti-furfashiontothemarket.Product-based green supply Recycling is one initiative that firms implement as a way ofadapting to ethical supply chains. Many retail fashion brandscollaborate with their suppliers to eliminate waste. This hasalso created a new business entity in the fashion industryintroducing “up cycling and recycling”. Donation basedrecycling, such as the initiative run by Marks and Spencer(M&S) in collaboration with Oxfam, is one of the bestexamples that reflects the reshaping of supply chains throughinnovationinwastemanagement.greening the supply processFashion retailers like M&S use ranking systems based onenvironmental and sustainability performance to select theirsuppliers:

“Factories are allowed to move up the sustainability ladder, with the starting point categorised as bronze, followed by silver, gold and ultimately platinum performance level.” MikeBarry, headof

sustainablebusinessatMarks&Spencer(Nichols, 2010)Theseinitiativesencouragesupplierstohaveanenvironmental

managementsystemintegratedintotheirbusinessprocesses.Despitetheinitiativestakenbythefirmstochangethenature

oftheirsupplychainseveralconcernsremain:• Many fashion companies,with the exceptionof a few large

retail fashion brands, find it difficult to develop sustainablesupply chain initiatives becauseof the economic challenges– somethingwhich has becomemore significant during theprevailing economic recession. Small and medium sizedfashionfirmscannotaffordthelargecapitalinvestmentneededtofundtheinitialimplementationofsustainablesupplychainprocesses.Evenifthesefirmsdomanagetoadoptmoreethicalinitiativestheyfinditdifficulttocompetewithbigretailchainsintermsofconvincingconsumers.

• Althoughfashioncompanieshighlighttheneedforresponsibleprocurement processes some practical limitations can beobservedintheindustry.Companiesaremeanttobetransparentwithregardtotheirsupplychain.However,thetraceabilityofrawmaterialsandthecompliancewithgoodlabourpractices

are still beyond the total control of retail brands due to atendencyforcorruptionovertheresultsbysupplieraudits(The Economist, 2012).

• The product life cycle of a garment is becoming shorter.Replenishmentsideallyneedtobebackinstorewithinaveryshorttime–insomeinstancesinlessthanfourweeks(Just-style, 2011).Thesetightdeadlinesmakeitdifficultforfashionbrandstoachieveelementsofsustainabilitysuchasethicallysourcedrawmaterialsandunforcedlabourconditions.

CORPORATE SOCIAl RESPONSIbIlITy (CSR): A STRATEgIC MARkETINg RESPONSEA strategic CSR approach needs to be adopted as a response totheimpactofethicalconsumerism.AsidentifiedbyPorter(2006),the most strategic CSR occurs when a company adds a socialdimensiontoitsvalueproposition,makingsocialimpactsintegraltotheoverallstrategy.CSRneedstobemorewidespreadthroughoutthe organisation. In general, companies should attempt to clearawaythenegativevaluechainimpacts.ThisresponsiveCSRshouldbeusedasawayofmitigatingtheharmarisingfromfirms’valuechain activities. Eachbusiness unit canuse the value chain as atool to identify thesocial impactsof itsactivitiesseeFigure2(on following page).

AcomparabledistinctionisalsomadebyHalmeandLaurila(2009) who categorise CSR activities into integration activities(whicharearefocusedonimprovingtheresponsibilityofexistingbusinessoperations)andinnovationactivities(whicharearefocusedondevelopingnewresponsiblebusinessoperations).CSRcanbeintegratedintoinnovativeprojectsinordertocreateeconomicvalueforthecompanyaswellasbenefitsforsociety.

Fashioncompaniesneed to thinkaboutCSRbeyondtheoldconcepts such as corporate philanthropy. A new strategic CSRconcept“PlanA”implementedbyM&Shasresultedinbetterfinancialperformance.Although the investment in “PlanA” cost £20m in2007,M&Swasabletoachieveanextra£50min2010(Barnett, 2011).Howeveritisuncertainwhethereveryfirmcanaffordthesehigherinvestmentsevenifthefinaloutcomeisafinancialsuccess.Thereforecompaniesmustidentifydeliverablesocialinitiativesthatcouldbenefitsocietyanditsowncompetitiveness(Porter, 2006).

Companies will be less successful if they attempt to tacklesocietal problems on their own (Porter, 2011). Successfulcollaboration needs to be data driven, clearly linked to definedoutcomes, well connected to the goals of all stakeholders, andtrackedwith clearmetrics. Business agreements on sustainabilityand codes of conduct with suppliers are initiatives that enablefirmstotracksupplychaintransparency.Strategicalliancesandtheacquisitionofindustrymembershipsincreaseacompany’scorporatereputation.M&S,NewLook,NEXTandMonsoonwerealltopretailbrandswhoacquiredapositivemulti stakeholder approachwithETI2byestablishingandmaintainingsupplychainbestpractices(LBL

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Report, 2011). Collaboration approacheswith suppliers on sharedlearningalsoenhancemutual relationshipsandassurecontinuityinsustainablesupply.

Theglobalrecessioniscreatinganenvironmentofcostcuttingandstreamlining.Forfashionfirms,asforeveryleadingcompany,thecurrenteconomyhascreatedaparticularlychallengingenvironmentinwhichtooperate.Ithasalsocreatedachallengeforsustainability.Though fashionfirmsaremoving to implementmore sustainableapproachesaccordingtotheirCSRinitiatives,theyareincreasinglyunabletoabsorbthecostofswitchingtosustainableapproaches.Oneexample is thecostof rawmaterial.Organiccotton isoftennearlytwiceasexpensiveasregularcottonbecauseofloweryields(Just-style, 2011).Evenifbigfashionretailersarebetterplacedtoabsorbthecostofsustainablesourcing,smallandmediumretailershaveyettoadapttothesituation.

Lastbutnotleast,asPorter(2006)identified,afirmthatviewsCSRasawaytoplacatepressuregroupsoftenfindsthatitsapproachdevolves into short termdefensive reactions,withminimal valueto society and thebusiness.Thus companiesneed tounderstandthatCSRshouldnotjustbeusedasareactiontoexternalpressure:itmust be seen as away to build shared value not just as a PRcampaignfordamagecontrol.

SkIllS, ATTITUdES ANd bEhAVIOURAl ChANgES ThAT NEEd TO bE AlIgNEd WITh ThE STRATEgIC MARkETINg RESPONSE

As the UK fashion and clothing industry moves to becomemoresustainabletherearesignificantimplicationsforitsmarketingactivitiesandtheskillsthatwillbeneeded.Buildingaframeworktoaccommodateexternalenvironmentalpoliciesandregulations;leveraging and integrating new sustainable technologies tosupport business practices; and the development of productive,performance-based strategies to gain financial and social returnswillallbeincreasinglyexpectedfrommarketingprofessionals.Theywillneedtochangeanddevelopattitudes,skillsandbehaviourstorespondtoamorestrategicCSRapproach.Attitudes

Wood(1991)emphasisedindividualormanagerialintentionsasmotivatorsof socially responsiblebehaviour.Marketers shouldinitiallymotivatethemselvesforsustainablebusiness.TheyshouldnotperceiveCSRjustasaninstantreactiontosafeguardthecompanyagainst external environmental pressure. They must possess apositiveattitudefromtheoutsetandunderstandhowstrategicCSRimpactsorganisationalfinancialperformance.

Criticalthinkingcanhelptoresolvemanagerialproblemsby

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Firm Infrastructure:KeyCSRpolicies,Transparencyandtraceabilityofprocesses

Human resource Management:LabourCompliance,Trainingongreensupply

Technology Development:Softwaredevelopmentontraceability,Recycling,Up-cycling

Procurement:Responsible&ethicalprocurement

Inbound logistics:

Operations Outbound logistics:

Marketing & Sales:

Services:

Developmentofsustainablesourcesofenergyandmaterials

ReducingCO2footprint

Minimisingenergyusage

Ethicalmarketingpolicies/Promotesustainability

Support&shareskills(Ex:Greenguides)

Prim

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Social, Economic and Environmental Sustainability

Supp

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identifying stakeholder coalitions and issues (Maon et al, 2008).Managers need to think critically, analytically and innovativelyinorder to formulate strategicCSRpolicies.Thinkingbeyond thetraditionalCSRapproachesisessentialtofacetoday’schallengingcompetitivemarketingenvironment.MarketingprofessionalsneedtobestrategicCSRinitiators.Skills1 Networking Managers need to carry out effective environmental scanning toidentifyfutureopportunitiesandthreats.Professionalandpersonalnetworkingskillswillfacilitatethisscanningprocess.Havingbuiltupbetternetworkingskills,marketingprofessionalswouldbeabletounderstandstakeholders’attitudesandperceptionstowardsthecompany’sCSRpoliciesandprocedures.2 Effective communicationEffectivecommunicationwillfacilitatebetternetworkingskills.Thisresultsinmaintaininggoodrelationshipswithinthebusinessaswellaswithsociety.Astrongsuppliernetworkingbaseensuresmutualunderstandingand trustbetweenacompanyand its suppliersonCSRpolicies.Trustbetweenafirmanditssuppliersgrowsovertimeandisembeddedinitsrelationship(Gold et al, 2010).Theabilityto communicate in multicultural situations enables managers torespondwithinsightfulCSRapproachesonaglobalscale.3 Technological skills for effective communicationThe use of technology for effective communication is essential.ManagersshouldmakeuseoftechnologybothtoinformanddirectstakeholdersoncorporateCSRpolicy.NEXT,oneoftheleadingUKfashionretailers,useswebbasednetworksinordertocommunicatecodes of compliance to employees and suppliers as well as tocommunicatetheirpoliciestoendconsumers.4 Leadership skills and interdepartmental knowledgeThe role of seniormanagement remains critical in planningCSRstrategy.Without the backing of the company’s leadership, CSRstrategies have little chance of continuity (Kitthananan, 2010).A strong leadership style to inspire subordinates to follow theCSRpolicyof thecompany is essential.This leadershipneeds toextendnotonlytothemarketingdivisionbutalsotootherdivisionssuch as finance, HR, operations and production. CSR strategyimplementationshoulduseahorizontalapproachratherthanthetraditional vertical approach.Thereforemanagers need tohave asoundknowledgeofhoweachdivisionoperates.Asanexample,financiallyliteratemarketingmanagerswillsetstrategicCSRgoalswhichwillhelpdeliverabettercorporatefinancialperformance.behavioursBased on the above attitudes and improved skills, marketingprofessionalsshouldbuildcapacityinthemselvestoinitiateCSRasastrategicresponsetotheimpactsofethicalconsumerism.Increasingawareness of the company’sCSR policies among the public andotherresponsibleauthorities,supportingCSRandmultistakeholderinitiatives, enhancing company credibility and working towards

operationaltransparencyaretheimportantbehaviouralactionsthatmarketingprofessionalscanperform.

AN OVERVIEW OF ThE Uk FAShION ANd ClOThINg INdUSTRyThefashionandclothingindustryisoneofthemostdynamicandchallengingindustries.Ithasbecomehighlyglobalised.Clothesareoftendesigned inonecountry,manufactured in another country,and sold world-wide. 90% of clothing consumed in the UK ismanufacturedindevelopingcountries(Department for Environment, Food and Rural Affairs, 2011).Key figures and facts about the UK fashion and clothing sector:• TheUKfashionandclothingindustryisestimatedtosupport

816,000jobs• ThedirectvalueoftheUKfashionandclothingindustrytothe

UKeconomyis£21billion• UK consumers spent £46bn on clothes and shoes alone in

2010(BFCValueofFashionReport,2010).Thiswas6%oftotalconsumerspendingin2010

Consumer Spendings 2010

Uk ethical consumer spending Ethical consumer spending in theUK related to the fashion andclothingsectorissummarisedbelow:

Ethical personal products 2008 2009 2010 2011

Ethicalclothing 103 184 177 171

Charityshops 371 473 486 528

Buyingforre-use-clothing 210 299 340 350

Clothingboycotts 360 402 387 321

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TransportHealthRecreation & Culture

Housing,Household Goods & ServiceClothing & FootwearFood & Beverage

Restaurant & HotelEducationCommunication

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REFERENCES:

Anon, (2002). McCartney backs anti-fur fashion.CNN.com. [online]. 28thoctober. Available from: http://edition.cnn.com/2002/WoRlD/europe/10/29/design360.mccartney.fur/ [Accessed: 5th March 2012]

Anon, (2012). oxfam and M&S have teamed up to help you support some of the poorest people around the world.[online]. Available from : http://www.oxfam.org.uk/donate/donate-goods/ma nds-clothes-exchange [Accessed: 3rd April 2012]

Anon, (2012). When the jobs inspector calls: Do campaigns for “ethical supply chains” help workers? The Economist 31st March

Barnett,M.(2011). The new CSR: This time it’s profitable. Marketing week. [online].14th April. Available from: http://www.marketingweek.co.uk/the-new-csr-this-time-its-profitable/ 3025435.article [Accessed: 4th March 2012]

Berens et al, (2010). Corporate Social Responsibility in a Business Purchasing Context: The Role of CSR Type and Supplier Product Share Size. Corporate Reputation Review, 13(4), pp284-290.

Bowen et al, (2001). The role of supply management capabilities in green supply. Production and operations Management,10 (2). pp 175-183.

Carrigan, M. & Pelsmacker, P. (2009). Will ethical consumers sustain their values in the global credit crunch?. International Marketing Review, 26 (6), pp674-687.

Cowe, R. & Williams, S. (2000). Who are the ethical consumers? Manchester. The Cooperative bank.

Department for environment, food and rural affairs. (2011). Sustainable clothing roadmap progress report 2011. london: Department for environment, food and rural affair, pp5-10.

Gold, S. et al (2010). Sustainable supply chain management and inter-organizational resources: A literature review. Corporate Social Responsibility and Environmental Management.17 (4). pp230-245.

Groskop, V. (2011). From red carpet to green catwalk: the woman matching style with ethics. The Guardian. [online].4th December. Available from: http://www.guardian.co.uk/environment /2011/dec/04/livia-firth-design-fashion-recycle [Accessed: 28th February 2012]

halme, M. & laurila , J .(2009) Philanthropy, integration or innovation? Exploring the financial and societal outcomes of different types of corporate responsibility, Journal of Business Ethics, 84 (3), pp325-339.

Just-style, (2011). Just-style management briefing: Eco-fashion retailers walk a fineline. Just-Style. [online].1st June. Available from: http://www.just-style.com/management-briefing/eco-fashion-retailers-walk-a-fine-line_id111248.aspx [Accessed: 22nd January]

Kitthananan, A. (2010). Creating business and social value: The Asian way to integrate CSR into business strategies: Studies in trade and investment United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), 68. UNESCAP.

labour behind the label (2011). let’s clean up fashion 2011: The state of pay behind the UK high street. UK: labour behind the label( September 2011)

Maon et al, ( 2008). The Role of Managerial Perceptions in Developing a Corporate Social Responsibility Strategic Agenda. Systems Research and Behavioural Science. (Syst. Res. 25), pp.413-426.

Newholm, T. & Shaw, D. (2007).Studying the ethical consumer: A review of research. Journal of Consumer Behaviour, 6, pp.253-270.

Nichols, W. (2010). Mike Barry: M&S is cashing in with Plan A. [online]. 9th November. Available from: http://www.businessgreen.com/bg/interview/1868061/mike-barry-cashing-plan [Accessed: 31st March 2012]

Nielsen (2008).Corporate Ethics and Fair Trading A Nielsen Global Consumer Report. october. New York: Nielsen.

Porter, M.E. & Kramer, M.R. (2006). Strategy and society: The link between Competitive Advantage and Corporate Social Responsibility. harvard Business Review. (December), pp1-13.

Porter, M. E. & Kramer, M.R. (2011).The big idea: Creating shared value. harvard Business Review (January- February), pp 4-17.

Ramrayka, l. (2006) The rise and rise of the ethical consumer. The Guardian. [online].6th November. Available from: http://www.guardian.co.uk/society/2006/nov/06/5 [Accessed: 21st January 2012]

Roberts, J.A. (1996). Will the socially responsible consumer please step forward? Business horizons, 39(1), pp79-84.

Siegle, l. (2011) hopping mad over shoes, The Guardian. [online]. 9th october. Available from: http://www.guardian.co.uk/environment/2011/oct/09/kangaroo-leather-football-boots-ethical [ Accessed: 01st March 2012]

Smith, N.C (1995). Marketing strategies for the ethics era. Sloan Management Review, 36(4), pp85–98.

Strong C. 1996. Features contributing to the growth of ethical consumerism: a preliminary investigation. Marketing Intelligence and Planning 14(5)5-13

Studying the ethical consumer: A review of research Journal of Consumer Behaviour J. Consumer Behav.6: 253-270 (2007) Published online in Wiley InterScience (www.interscience.wiley.com) DoI:10.1002/cb.22

Szmigin, I. & Carrigan, M. (2006).Exploring the dimensions of ethical consumption. European Advances in Consumer Research, 7, pp608.

Tallontire, A. et al (2001). Ethical consumers and ethical trade: A review of current literature. Policy series 12.United Kingdom, hobbs the Printers ltd.

The Corporative bank, (2011).The ethical consumerism report2011. [online] Manchester. The Corporative Bank. Available from: http://www.goodwithmoney.co.uk/ethical-consumerism-repo rt-2010 [Accessed: 11th February 2012]

WGSN (2011). Tesco: “Greening” Clothing Production. london. WGSN.

Wood,D.J.(1991). Corporate social performance revisited, Academy of Management review, 16, pp691-710. Cited in: Zu, l. (2009). Corporate Social Responsibility, Corporate Restructuring and Frims’ Performance.heidelberg.

Vidyani Warnakulasooriya holds a bachelor’s degree in fashion design and product development from the University of Moratuwa, Sri lanka.

After graduation in 2009, she started her career as a textile designer attached to MAS holdings, one of the leading apparel manufacturers

in Sri lanka. later she joined the Spanish fashion brand “The IoU Project” founded by Kavita Parmar. She was able to gain a wide experience in fashion marketing while she engaged in “The IoU

Project”. Vidyani is currently reading for her postgraduate studies in marketing in The Chartered Institute of Marketing.

FooTNoTES:

1 The term ‘green supply’ denotes “supply management activities that are attempts to improve the environmental performance of purchased inputs, or of the suppliers that provide them. They might include activities such as co-operative recycling and packaging waste reduction initiatives, environmental data gathering about products, processes or vendors, and joint development of new environmental products or processes”. (Bowen et al, 2001: 175)

2 Ethical Trading Initiative (ETI) is an alliance of companies, trade unions and voluntary organisations working in partnership to improve the working lives of people across the globe who make or grow consumer goods.

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qUSTOdIAN CASE STUdy

Now that over half of the British population own a smartphone, and with over half of mobile internet users 35 or older, there can be little doubt that for the foreseeable future, ‘mobile’ is an extremely important channel for marketers. Whether it be for social activities, seeking information or interacting (‘engaging’) with companies, people (=customers) are spending significant time using their mobile devices. It should be no surprise then that brand owners regard mobile as an important part of their marcoms mix, and are allocating budgets accordingly.

The following paper and case study has been prepared by Qustodian, a company formed in 2009 to allow users more control over what information they receive, when and how.

REACh VS ENgAgEMENT IN MObIlE MARkETINg – A qUSTOdIAN CASE STUdy

many of you will have seen thedatashowing that theopportunity

for mobile advertising is enormous,because the advertising spend onmobile does not yet match upwith the(growing) amount of time we spendwith our shiny new smartphones. If youdidn’t see it, the following is taken fromMaryMeeker’sstateoftheinternetannualstudy.

Graphic 1: Percentage of time spent by media vs. percentage of ad spend

Inadditiontothis,mobileadvertisingisgrowingataveryhighrate(157%intheUKlastyear,source:IAB)andissettocontinueforthenextdecade.

Soit’sallgood,right?Well,scratchbeneaththesurfaceandthingsarenotasrosyastheyseem.Jean-LouisGasséewroteaveryinterestingpiececalled“Mobileadvertising:the$20bnopportunitymirage”intheGuardianon12June2012.Init,hepointedoutsomethingthatseemsblindinglyobvious,butthatmanypeopleintheadvertisingindustryseemtobeburyingtheirheadinthesandabout:smartphonesarenotlikepreviousmedia.Hesaid:

“Wegetcloser to theheartof thematterwhenwelookatacommonthoughtpattern,anage-oldanddangerouslymisleadingalgorithm:The [new thing] is like the [old thing] only [smaller /bigger]”

Inshort,whilstthepeoplewhoworkintheadvertisingindustryaresmartphoneusers,justlikeus,whentheygetintoworktheyseemtopurposelyforgetthatnormal people just don’t want interruptive advertising on their mobile phones.

They continue to try to crack ‘reach’ onmobile phones, ie.gettingtoasmanypeopleaspossible,asthisisalltheyreallyknowfromallpreviousmedia.

JohN RoBERTS

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Butmobileisdifferent.Unlesspeoplebuyintothecontenttheyreceiveontheirmobiletheysimplywon’tengagewithit.

Permissionbasedmobilemarketing isonepotential solutiontothisproblem.Whilstcurrentlyrepresenting less than 5% ofall mobile advertising, servicesthat actively seek opt-in byan audience can generateengagement.

As an example,Qustodianprovidesusercontrolledmobileadvertising and marketing.Nearly a quarter of a millionusers have joined our service to date in Spain and the UK andreceiveads,offersandinteractivecommercialcontenteverydayviaourAppsthatworkonallmajorsmartphones.Peoplejointoreceiverelevantcommercialcontentbasedontheirprofileofinterest(thatwehelpthemeasilycreateandinteractwithbyusingtheservice)aswell as receive up to 50%of the revenue generated by theirinteractionwiththeadvertiser.

By putting the user in control and sharing the valuethey are generating by their interaction, they opt in to viewrelevant messages whenever they want, thereby removingthe perception that advertisers are shouting at them.Theresultsofsuchanapproacharestriking…

CASE STUdy: NIVEA FOR MEN Qustodian recently ran a very successful campaign for NiveaforMenviatheagencyCarat.Thefollowingmessagewassenttorelevant users of its service during half time of the England vFrancegameduringEuro2012tocoincidewiththeNiveaforMenTVadlaunch.

John Roberts is co-founder and MD UK of Qustodian. he has 20 years’ experience in the mobile and mobile advertising industry and prior

to creating Qustodian was responsible for launching MVNos across Europe, including the first on the orange UK network.

TheclientmetricwassimplytodriveYouTubeviewsoftheout-takesvideoandofthepeoplewhoweresentthemessage:

• 67%ofusersreadit,• 72%oftheuserswhoviewedthemessageclickedthroughto

YouTube,• Themessagewasviewed1.42timesbytheaudience,showing

theylikedthecontentandsharedit.

Aweeklater,afollowupfeedbackmessagewassenttoasubsetoftheoriginalaudience.

Recipientsrespondedandthisqualitativeresearchshowedthattheusershadlargelyenjoyedthemessage,thatitwasthekindofactivitythatthey’dexpectfromNiveaForMenandthatasmallernumberhadsharedthecontentwithfriends.Again,overtwo-thirdsof the recipients readand responded to thesurveyshowing theiractive interest inengagingwith relevantbrandsandsharing theirviews.

Qustodianconsistentlydeliversaroundtwo-thirdsengagementwith itsmessages,which isat least anorderofmagnitude largerthanindustrynorms.Unlessthislevelofinteractionisachievedbysendingonlyrelevantandinteractive,valuableorfuncontent,thenthecontentwillbeperceivedasspam-likebyrecipients.

It is clear from this and similar services that adeeper,moredirectinteractionwithidentifiable(albeitanonymised),opt-inusersdeliversresults.Thebigquestioniscanthesesolutionsscaleuptodeliverthe‘reach’thatadvertiserswant?

Well, if peopleworking in the advertising industry continuetoforgetthatthe‘mediaowner’ofaphoneisus,thephoneusers,thenitisunlikely.Ifweconcentrateonshowingpeoplehowtheirinteractionwiththeworldofcommercecanbebothvaluableandfun,thenwewillhaveachance.

SERVICES ThAT ACTIVEly SEEk OPT-IN by AN AUdIENCE CAN gENERATE ENgAgEMENT

Graphic 2: Nivea for Men campaign to generate YouTube screen views of outtakes video

Video view on YouTube

Graphic 3: Nivea for Men campaign feedback selected screens

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PhIlOSOPhy OF MARkETINg

Why dO WE NEEd MARkETINg?

many products will be purchasedwithout any encouragement.

Many products and services arestaple to daily lives and do not needto be “marketed”, only placed in themarket. However because of the waywe, in the advanced (Western) world,live it is no longer a requirementto fulfill the basic needs of survival thatdrivesbusinessand sowenowcompeteforthebetterproduct.

Is there a reason for marketing, does it add to the body ofbusiness knowledge? The honest answer is No. Sociology andpsychologytellushowpeoplebehave,economicstellsushowmarketsreactandmathematicsprovidesthesourceoffinancialinputs.

Likeallsocialsciencedisciplines,itisnotessentialornaturallyformed.Itisaconvenientsetofmodelstoassistintheageoldtaskofcreatingasuccessfulcompany.Andby“successful”Imeanonethatachievesitsaims,evenifthoseareonlysurvivalorsubsistencefortheemployees.

However,marketingdoesbringallofthesedisciplinestogetherandprovidesauniquefocusonthemarketplaceandthecustomer.Do we need marketing? The answer is that all other businessdisciplines are functionalwhether finance, production or humanresources.Marketing isphilosophicaland in short it is about thecustomer and how they interact, and how companies need tounderstandthem.

Surelythetruetestofthewordistoseeifwecanfindotherwordstoreplaceitinmostcontexts.Ifwecan,thenthereisnoneedforit.Whatarewedoingwhenwearemarketing?• Wearepromotingourgoods,advertisingorcommunicating• We are researching the market for customer reactions or

consumerneeds• WearedevelopingorlaunchingnewofferingsSoisthereanythingwearedoingwhenwearemarketingthat’snotsomethingelse?Probablynot.

Isthetermthereforeonlyaconvenience.No,asitembodiesmore than a set of actions, it embodies a way of thinkingabout the economic and social intercourse of companies andindividuals. Marketing is a process, a methodology and aphilosophical approach to business that transcends the purelyfinancial and transactional. In its fullest incarnation it canevenbecountertoshorttermprofitmaximising(theprimarygoalofmanyeconomictheoristsandinvestors).

SO hOW ShOUld WE dEFINE MARkETINg ANd WhAT ChARACTERISES gOOd MARkETINg?Marketingmeansdifferent things todifferentgroups,sofirstlyweneedtolookathowitisviewedindifferentsectorsbeforewecan

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defineitandestablishasetofguidelinesforitsuse.Ismarketingaboutrelationshipsoris itaboutaggressionand

theroleplayofdominantcompaniesgettingtheirpoints/productsacross to a subservient consumer?Are consumers thepuppets ofMultinational Corporations as stated in Naomi Klein’s book “NoLogo”,oraretheyintelligentdecisionmakersactivelyengagingwithcorporationsformutualbenefit?Is the customer king? Onewaytocometoaconclusionistolookathowmarketers(inacompany)describetheirotherhalves(thosetheyarehavingtherelationshipwith);Targets=verymilitaristic;Potential=exploitative.Inmodernterminologymanywouldhavethemasstakeholdersorpartners.

Letusstartwiththemostvirulentofthese,marketingasexploiter:ofpeople, their ignoranceand their time.Theoversellingormis-sellingofproductsand,morelatterly,serviceshasoftenbeenbasedontheexploitationofcustomerignorance.OneAdvertisingadagestatesthatallproductscanbesoldonthebasisofFearorGreed.AddtothatSexandyoucanaccountfor90%ofsalesadvertising.Unrestrainedpromotionhas raisedmany fearsandconcernsoverpollution,obesity,childrenandhealth.Problemshave resulted incontrols on the marketing of financial services, drugs, food andhealthissuesamongstothers.

Yet thereare twocounterpoints. Inorder tohavean impactthisadvertisingmustbeacceptedandacteduponbyconsumers.Sodoestheconsumerplayarole?Furthermore,inordertoeducatepeople about the issues, legislators use the samemarketing andadvertisingtechniquestochangesocialattitudesandhabits.Getfit,StopSmoking,etc.TheGovernmentduringthe1990’sinstigatedthatgreatestincreaseonwhatiscalled“SocialMarketing”everseeninordertogetpolicymessagesacross.Youcannottravelthecountrythesedayswithoutbeingtoldtodosomeofthemostbasicthings.TheGovernmentwas trying toachieve its legislative targetsusingdirectmailingandadvertising.

Thisleadstoaninterestingdilemma.JunkMail(andadverting)is greatly disliked, however, information and knowledge about

new ideas and products is welcomed. Indeed whole televisionprogrammes are dedicated to it. This leads us to marketing asinformerandeducator:Theconsumeriskeentoknowmorebutisonlysoldtoandnotinformed.TheCustomerisKingbuteverywhereisIgnorant.

Hereisthemainpoint.Whenmarketersareseekingtoexploit,theylookmainlytothequicksale,andlikethestockmarketandsomebankers,areinterestedonlyintheshortterm.Theywillresorttoshortsellinginthefinancialworld(sellingsomethingtheydonothave)andsellingonpriceinthemarketingworld.Littlethoughtisgiventothelongtermconsequences;itisallaboutachievingtargets.However,whenviewing thecustomeraspartner, thenadifferentrelationshipisneeded.Weneedtoeducatethecustomertogetthebestfromourofferingandtogiveustheircommentsandcriticismsinorderthatthecompanycanimproveitsoffering.Takenintoday’scontext thismeansengagingineffortssuchascrowdsurfingasawaytodevelopnewproducts.(Marketing needs to be applied carefully but not everybody needs to be a Marketer).

SOCIAl MARkETINg OF ThE MARkETINg IN SOCIETy Michael Sandel, the well-knownHarvard Professor, has recentlyarguedthatmarketinghasbecomesoendemicwithinsocietythatit is beginning to become corruptive.The implication being thatmarketinghasmonetisedeveryaspectofsociety,includingthingslikerewardingpeoplefordoingwhattheyshouldalwaysbedoing,suchasreadingbooksorindeedtherentingofwombsinthecaseofpeoplewhoarewantingtobecomepregnantbutcan’t.Sandelisimplyingthatthemarketormarketinghasgoneoveritsbarrierofsellinggoodsandservicesandisnowinterferingwiththemoralgoodofsociety.

Thisisaninterestingdiscussion.Onethatmightbecounteredby the argument of ‘old’ versus ‘new’ money. The concept,historicallyspeaking,especiallyintraditionalUKsocietyhasbeenthatoldmoney,whichhascomeaboutoverhundredsofyears,isthatwhichaimstodowhatshouldbedoneratherthanwhatcanbedone.Thereforemoneyisnotalwaysusedwhereitcanbeandextraordinarilyhighpricesarenotpaidforthingsthatarenotworthitandrestraintismade.Ontheotherside,wehavenewmoney,thenouveau riche,whobelieve thatbecause theyhaveearned largeamountsofmoneyitwillgetthemanythingtheywant,whetherithappenstobeafootballclub,accesstoanightclub,orindeedanyparticular service that theymay require.The interestingdilemmais;wheredoyou stopwith theuseofmarketing?Dowemarketourselvesas individuals;dowemarketclubsandsocietiesordowemarketonlygoodsand services?Andwhat, indeed,haveweunleashedintheconceptsthatwehavecreated?

One could summarise thiswith the statement thatwe havebecome addicted tomoney.What thatmeans for the future andsociety,isanyone’sguess?

WE NEEd TO EdUCATE ThE CUSTOMER TO gET ThE bEST FROM OUR OFFERINg ANd TO gIVE US ThEIR COMMENTS ANd CRITICISMS

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Don Moyer has collected his series of cartoons as a book, entitled 64 Drawings. It is available from Blurb at

www.blurb.com/bookstore/detail/949041

qUESTIONS ThAT lEAVE A MARk

as a society, we are biased toward answers. Answers settlematters and tell us it’s safe tomove forward.Questions are

troublemakers,pokingholes in ideasandplans.Butquestionsarealsopowerfultoolsformarshalingfacts,exposingvulnerabilities,andstretchingimaginations.Howcanwemakethiswork?Howcanwemakethisworkbetter?What’stheworstthingthatcanhappen?Whatdoyouwanttobewhenyougrowup?

For simple fact gathering, you can’t beat the classics:Who?What?When?Where?Why?andHow?Buttoreallylift thelidoffaproblem,youneedmoreprovocativeinquiries.IntheirbookWhyNot?, BarryNalebuff and IanAyres propoundquestions that holdproblemsuptothelightandgivethemagoodshake.Whereelsewoulditwork?Wouldflippingitwork?Whydon’tyoufeelmypain?WhatwouldCroesusdo?

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Notonlyaregreatquestionswellconceived,theyarealsowelltimed. In “TheDisciplineof Innovation” (HBR,May–June1985),PeterDruckerremindsusthatinnovationoftenoccursunderspecialconditions—suchasachangeindemographicsortheemergenceofnewknowledge—andthatquestionsposedatsuchinflectionpointsproducethebestresults.Sosowyourqueriesinfertilefields,andwatchsolutionssproutandthenflowerintogloriouspotential.

BY DON MOYER

Cambridge Marketing Press 1 Cygnus Business Park

Middle Watch Swavesey

Cambridgeshire CB24 4AA

Tel: +44(0) 1954 234944 - Fax: +44(0) 1954 234950