Marketeers challenges, role and trends 2010

Marketing in a post-crisis world

Consumer Goods marketers’role, trends and challenges

June 2009

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© The House of Marketing www.thom.eu June 2009Not for publication without prior written consent

Marketers must balance and manage various pressures

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Marketers’ role

from 2010

Marketers’ role

from 2010

Consumer engagement and experience


Deliver customer valueDeliver customer value

Differentiate and promote through retailers


Develop innovative and sustainable offerings


Leverage all information and analysis


Demonstrate performance and impact


1. Consumers keep evolving and engaging

2. Online integration, marketing analytics and customer value on the marketer’s agenda

3. Marketers need to be measurable, innovative and sustainable

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© The House of Marketing www.thom.eu June 2009Not for publication without prior written consent 3

Agenda




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The Brand Called You 2.0 Tom Peters, 2009“It’s all about being an interesting and desirable brand to other individuals. To peers. To friends of friends.”

Consumers are getting even more personal, disloyal and sophisticated

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Source: Trendwatching.com

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Companies need to highlight the added value of their products/services moreCustomers become far more price sensitive and postpone purchases due to the economic crisis

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% of respondents

How do you expect your customers to react to the economic crisis?How do you expect your customers to react to the economic crisis?

N= 720Source: The House of Marketing; Yearly Marketing Survey 2009

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Agenda




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Marketers are aware of the need to improve customer experience, intelligence and “be green”

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In survey 2008

Legend:

New to the survey

How do you expect the following buzzwords to evolve in terms of importance for the coming year?

How do you expect the following buzzwords to evolve in terms of importance for the coming year?

% of respondents who expect an increase

Note: decrease or remain stable represent the remaining percentages

B2B C’ies only(N=246)

B2B C’ies only(N=246)

B2C C’ies only(N=98)

B2C C’ies only(N=98)

% of respondents who expect an increase

Source: The House of Marketing; Yearly Marketing Survey 2009

http://www.thom.eu/

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Position of challenges among answers

Evolution of challenges’ importance, perceived by marketersEvolution of challenges’ importance, perceived by marketers

N= 598

Branding and customer loyalty remain solid top-of-mind challenge for marketersInnovation & ROMI see strong decline compared to 2008


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54% of marketers in consumer goods expect further budget reviews

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This goes against the need to protect/grow existing revenue base by increasing marketing expenditures


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Direct marketing

Email marketing

Traditional TV

Overall media budget

# of companies planning to use the selected medium more

Evolution of share in total media budget of the selected medium

ConclusionMore

buyers, less

spend per buyer

Large increase

TV market

not heavily down

The 2009 media mix has clear winners and losers

POS

Print(Press/ Mag.)

Event marketing

Probable ex-aequo

Serious cut

Serious cut

Sponsoring

Serious cut

Source: UBA/Profacts February 2009 Survey, combined with Stichting Marketing/THoM 2009 YMS Survey

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Belgian media mix becomes more traditional and measurable due to crisis

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Crisis reinforces success of interactive marketing…

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Traditional Marketing

“Modern marketing isa two-way conversation that

utilizes traditional, digital andsocial mediums to connect with

existing and potential members.”Currency Marketing

“There is a trend from traditional media toward online marketing

activities that allow for customer behavior tracking and concrete

metrics.”Aberdeen Research

… but stimulates a more balanced approach, where traditional supports interactive

Interactive Marketing

Su

pports

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Mastering certain metrics tends to be key to be confident in outperforming competition

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% of respondents using the hard metric defined on the left

Which of the following hard metrics do you use to track your marketing performance?Which of the following hard metrics do you use to track your marketing performance?

Respondents claiming a better performance in 2009 versus competition

Legend:

Respondent claiming a worse performance in 2009 versus competitionN= 665


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Too few marketers are mastering analytics and customer intelligence

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1 out of 5 marketers do not use the full combination of metrics available to them

Marketers rely on information in reports, instead of looking at the raw data


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Analytical deployment is mostly depending on organizational context and prioritization

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What is the main obstacle for analytical deployment? What is the main obstacle for analytical deployment?

% of respondents

N= 497Source: The House of Marketing; Yearly Marketing Survey 2009

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Agenda




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Marketers are struggling to adopt a long term sustainable business model

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Buzzwords hint at a sustainable business model

Buzzwords hint at a sustainable business model

The marketer is being challenged financially, ROMI-

wise

The marketer is being challenged financially, ROMI-

wise

Budget reductions make

marketers rethink their media mix

Budget reductions make

marketers rethink their media mix

The marketer is less confident

about the future

The marketer is less confident

about the future

Many marketers are fighting the crisis

with lower budgets (and prices)

Many marketers are fighting the crisis

with lower budgets (and prices)

Companies must highlight the added-

value of their offerings more to customers

Companies must highlight the added-

value of their offerings more to customers

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Sustainably position marketing as key value adding department in the long term

Be genuine, be authentic…

Be genuine, be authentic…

Differentiation based on green arguments will only prove effective for who adopted this in their Corporate identity, Business model AND Culture

This becomes even more important as your company becomes more transparent to customers by choice or not

No proof, no budget

No proof, no budget

Today, the size of the marketing budget is among the first items to be challenged by management

Marketing budgets will not restore to their pre-crisis levels without marketers building up a rock-solid argumentation:

Pragmatic performance management tools allowing to track, manage, benchmark & predict financial return

Increase focus on the main concern of the boardroom: sustainable profitability requires evolving from a top-line to bottom-line focused marketing and investment in people

Invest in analytical skills

Invest in analytical skills

Analytical skills are paramount to making complex fact based decisions and generate relevant insights from available data

Marketing departments with a clear ambition to outperform competition should

Invest in developing analytical skills to a level allowing them to extract maximal value from internal data

Base their decisions on the qualitative and quantitative insights provided from the above analysis

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Sustainability at a glance: From inside to outside

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Note: a company can be considered as socially responsible only if it acts within the three pillars.

Today’s situation• Businesses have accepted sustainability

as a mainstream concern but struggle to integrate it at strategic level

• Implementation of sustainability is increasingly consumer and MKT driven

• Sustainability is still often only a PR tool• Challenges according to senior

executives: • leadership, • supply chains, • metrics and reporting, • the transformation of values into processes

Critical Success Factors• Sustainability policies and practices

should be driven by corporate values and be integrated meaningfully into strategy and performance management

• Sustainability should be fully embedded in all levels of the organization

• Involvement of all stakeholders internal and external

• Credibility through partnerships with NGO’s or independent organizations

• From customer perspective, value generation while avoiding price premium and differentiation from competition

Sustainability has to be understood in the context of a specific industry, not as a set of principles per se. Depending on value drivers,

sustainability needs to be integrated at strategic and/or operational level.

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Marketers must balance and manage various pressures

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Marketers’ role

from 2010

Marketers’ role

from 2010



Deliver customer valueDeliver customer value









What is Marketing’s USP?

Marketeers challenges, role and trends 2010

Business

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