Matthew Palmer, Deloitte Consulting
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Transcript of Matthew Palmer, Deloitte Consulting
Matthew Palmer,
Deloitte Consulting
Marketing Effectiveness
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MARKETING AND MEDIA PARTNERS
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The 7th IDM B2B Marketing Conference
Matthew Palmer
• Head of Deloitte’s Financial Services Marketing practice
• Leads Deloitte’s offerings on brand, marketing cost reduction and operating models
• Background in consulting and advertising
• Typical projects include: – Corporate transformation
– Brand valuation and optimisation
– Sales and marketing effectiveness
– Channel strategy
– Operating model improvement
• Clients include: – Lloyds Banking Group, HSBC, Aviva, Standard Chartered
Bank
– IBM, Microsoft, Sony, BT, Vodafone, T-mobile, Siebel, SAP
– Diageo, Pernod Ricard, Habitat, Royal Mail, Centrica, VOSA
The 7th IDM B2B Marketing Conference
What will we cover today?
• What has changed and what has stayed the same post recession
• How to get your marketing budget approved - and the executive board on your side
• How to increase marketing ROI
• How to cut costs without slashing performance
The 7th IDM B2B Marketing Conference
Which trends have changed, which have stayed the same
• Increasing power of individuals on corporate buying decisions (especially in FS and technology)
• Longer sales cycles • Wider DMU • Exploitation of social media and
opinion management
• Getting marketing’s voice heard• Focus on lead quality and
management • Getting sales and marketing
working together better • Cost cutting and effectiveness • Accountability and measurement • Channel and partner
management • Differentiating offerings • Making global work
Marked change in trend Continuation of trend
The 7th IDM B2B Marketing Conference
We will focus on three main areas
• Increasing power of individuals on corporate buying decisions (especially in FS and technology)
• Longer sales cycles • Wider DMU • Exploitation of social media and
opinion management
• Getting marketing’s voice heard• Focus on lead quality and
management • Getting sales and marketing
working together better • Cost cutting and effectiveness • Accountability and measurement • Channel and partner
management • Differentiating offerings • Making global work
Marked change in trend Continuation of trend
The 7th IDM B2B Marketing Conference
Getting marketing’s voice heard
In order to help the organisation attain its goals Marketing needs to be able to influence at board level
The challenge facing marketers is making sure the rest of the business understands the value they create.
Our research found that C-level execs do not have a common understanding of marketing and its role in the company
The 7th IDM B2B Marketing Conference
The CMO’s view
The 7th IDM B2B Marketing Conference
The CFO’s view
The 7th IDM B2B Marketing Conference
The CEO’s view
The 7th IDM B2B Marketing Conference
81%
of CEOs identified marketing as a key driver of growth
84%
of CEOs identified marketing as being crucial to devising strategy
1in3
CFOs did not believe that marketing is crucial in determining strategy
16%of Board level discussions are about marketing according to CMOs.
CEOs believe that the
figure is nearly double at 33%
Board level views of marketing are mixed
The 7th IDM B2B Marketing Conference
Impact of marketing’s lack of influence
Seen as a cost
Not seen as ‘Commercial’
Link between marketing
metrics and company
performance not
understood
Limited voice
Not involved in key
decisions
Constant pressure to
justify expenditure and
reduce costs
Budgets frequently
rejected or slashed
The 7th IDM B2B Marketing Conference
Marketing gets its budget approved when it:
• Actively engages with Finance and other functions throughout the year
• Uses easy to understand metrics to show outcomes of past programmes and how these relate to proposed activities
• Can explain where and how money is spent • Uses zero based budgeting linked to specific programmes and
outcomes • Prioritises its own spend with stretch and retrenchment options • Presents options to stop some activities to pay for others • Clearly links programme outcomes to corporate targets (eg revenue
growth, EBITDA, free cash flow)
The 7th IDM B2B Marketing Conference
CMOs recognise this as an issue and are trying to improve measurement and accountability
What are your top three marketing issues?
44%
39%
34%
28%
24%
CMOs acknowledge that accountable and effectiveness are important
‘By 2012, the CMO’s priorities will shift from creative brand building to an accountable, business-oriented, customer loyal-driven focus in 55% of organizations’
‘Financial accountability will be an imperative for 60% of marketing’s budget by 2012, up from less than 20% in 2007’
‘Marketing strategy and processes will need to change radically during the next 5-10 years in order to answer to pressures to manage costs and drive revenue’
Analysts predict that marketing accountability and effectiveness will become
increasingly important
The 7th IDM B2B Marketing Conference
How to cut costs while increasing revenue and profits
The 7th IDM B2B Marketing Conference
Cost cutting
The 7th IDM B2B Marketing Conference
Some common cost cutting mistakes
• Cutting costs by the same amount across the board
• Choosing an arbitrary percentage cut
• Trying to do everything with less money
• Failure to plan for budget challenges like ‘tell me what you could do with 20% less money”
The 7th IDM B2B Marketing Conference
So what works?
• Improve your focus: concentrate on the areas that add most to your business
• Only pay for what you need
• Make sure you get what you pay for
• Instil a real culture of fact based decision making, and act on it • Become more accountable
• Improve relationships with the rest of the business, especially finance
The 7th IDM B2B Marketing Conference
Improve focus
Value Drivers
Asset Value Revenue Growth Operating Margin
Maximize Brand Equity
OptimizePricing
Retain & Grow Current Customers
Acquire New Customers
Profit From Higher Margin Products /
Customers
OptimizeMarketing Spend
Maximize Price
Potential
Capture Price
Potential
Increase LENGTH of Current Relation-
ships
Increase VOLUME of Current Relation-
ships
Increase BREADTH of Current Relation-
ships
Penetrate New
Customer Segments
Increase Share in Current
Customer Segments
Realign Products
& Channels
Improve Marketing Program Spend
Efficiency (MRM)
Optimize Marketing Resources
Leverage Brand Value
Create Innovative Products
& Services
Strengthen Brand Value
Increase Shareholder Value
Value Drivers
Asset Value Revenue Growth Operating Margin
Maximize Brand Equity
OptimizePricing
Retain & Grow Current Customers
Acquire New Customers
Profit From Higher Margin Products /
Customers
OptimizeMarketing Spend
Maximize Price
Potential
Capture Price
Potential
Increase LENGTH of Current Relation-
ships
Increase VOLUME of Current Relation-
ships
Increase BREADTH of Current Relation-
ships
Penetrate New
Customer Segments
Increase Share in Current
Customer Segments
Realign Products
& Channels
Improve Marketing Program Spend
Efficiency (MRM)
Optimize Marketing Resources
Leverage Brand Value
Create Innovative Products
& Services
Strengthen Brand Value
Increase Shareholder Value
Be clear how your programmes, products and target
customers contribute to corporate objectives
The 7th IDM B2B Marketing Conference
Get what you pay for, only pay for what you need
• 3rd party suppliers services and SLAs
• Don’t over-specify or gold plate
• Standardise where heterogeneity doesn’t pay
• Many suppliers are trying to grab share coming out of the downturn: use this to negotiate
• Demonstrate your control over marketing spend to the CFO and finance community
The 7th IDM B2B Marketing Conference
Make decisions based on facts, become more accountable
• Understand how your money is being spent – Audit of marketing spend based on effectiveness and value
• Test, analyse, learn and implement – So you can maximise returns on your marketing spend
• Use the knowledge to approach the leadership team to discuss opportunities for cost reduction or growth
• Involve finance, commercial and other parts of the business to create joint programmes
The 7th IDM B2B Marketing Conference
Increase revenue and profits
The 7th IDM B2B Marketing Conference
Most effective changes to boost revenue and profits are often
• Improve lead management – Quality – Fix leaky buckets – Recycle leads
• Focus on winning brands, products and segments
• Free up local offices to be entrepreneurial within the overall company strategy
• Introduce formal programmes to iudentify what works in your organisation and roll it out
The 7th IDM B2B Marketing Conference
Further information
Marketing in 3D Benchmark
Take part in our new online Marketing in 3D Benchmark survey
www.deloitte.co.uk/marketing
Marketing in 3D Report
Read the summary of key findings from our latest
research
Contact
Matthew Palmer
Tel: +44 (0) 207 007 7293
Mob: +44 (0) 07764 939920
Email: [email protected]
Structural Cost Cutting in Marketing
Read the summary of key findings from our latest
research