The power of communitiesRoderick E Wilkes – Chief ExecutiveDipM, Hon FCIM, FIOD, FCMI, FRSA, FCAM, Chartered Marketer

- A not-for-profit organisation incorporated by Royal Charter established in 1911.

- We are the leading international professional marketing body, with members worldwide

- We exist to develop the marketing profession, maintain professional standards and improve the skills of marketing practitioners

- We do this via Membership, Professional Qualifications and providing Training, and a comprehensive CPD programme

- Only professional marketing body in the world that can grant individual Chartered Status to practitioners

- Associate member of the Association of Business Schools

- Member of the European Marketing Confederation

- Our qualifications are accredited by Ofqual (previously QCA) and the Open University Credit Rating Service.

The Chartered Institute of Marketing

- World’s leading professional body for marketers

- Approx 50,000 members in 138 countries

- 4,500 Chartered Marketers

- Offices in UK, Sri Lanka, Hong Kong, Singapore, Malaysia, Kenya, Ghana anda strategic alliance in Cyprus

- 52 branches, regions and interest groups across the world

- Internationally recognised qualifications in both marketing and sales

- 300+ study centres around the world

- Leader in the development of the National Occupational Standards

- 135+ sales and marketing training courses

- Comprehensive conference facilities

The Chartered Institute of Marketing

Our evolution

1911Sales Manager’s

Association

1961

1955

1939-1945

19711975

1998

Correspondence courses- Sales Management

Founder member of

the now European Marketing

ConfederationDiploma introduced

First Industry Interest Group:

Construction IndustryMarketing Code of Practice

First Chartered Marketers

1993

CPD programme launched

1996

International Operations

begin

2005

BusinessSuperbrand

Her Majesty the Queen

Awards the Royal Charter

1989

Incorporated SalesManager’s Association

1921 1928

1st CertificateExaminations

1952

HRH The Prince Philip, Duke of EdinburghBecomes Patron

1960

The Institute of Marketing and Sales

Management

1968

The Institute of Marketing

Royal College of

ArmsAuthorises‘The World

Is Our Market’

1975

1994

First graduation ceremony

The Institute aims to be the Heart of Marketing.

Our mandate is to give the marketing profession a place to:

LEARN BELONGDEVELOP

Our purpose

To be the first point of call for formal marketing learning.

The Institute has two channels of formal learning delivery:

1. We deliver the highest quality practice-based awards through our UK and International study centre network

2. We are a centre of excellence for training and awards in marketing and sales delivered directly by The Institute

Formal tailored training

Formalopen

training

Specialistqualifications

Accreditation/Dual awards

Marketingqualifications

CAM

Marketing &Salesquals

CIM

Delivered

Third Party

Channel

Delivery

HEART OF

MARKETING

LEARNING

Learn

World class qualifications

Range of marketing qualifications and training- Our core qualification portfolio- Digital marketing and sales qualifications- Vast range of training courses

Various delivery methods- Virtual classrooms through CIM Academy- Extensive centre network

To be the first point of call for marketing information, knowledge and insight

-To develop practitioners -To develop the profession

- Promoting the benefits and importance of Continuing Professional Development as an essential personal and professional responsibility

- Engaging with Government and other key groups to ensure the promotion of marketing as an essential business discipline

- Delivering a wealth of marketing best practice content to the marketing community and business

- Delivering information and insight regarding key issues and future considerations to the profession

KNOWLEDGE

STANDARDSVOICE

VOICE RESEARCH

STANDARDSINFORMATION

HEART OF

MARKETING

DEVELOPMENT

Develop

To date:- Programme has registered 14,954 individuals- Includes 5,062 Chartered Marketers - 34% of members involved in CPD

The CPD portal allows membersto manage and record their CPD viathe CIM website which has 48% take up rate

Continuing Professional Development

Thought leadership

In search of a strategic role for marketing- A benchmarking study in partnership with Accenture. - Return on Ideas research partnership with CIMA and DMA

Shape The Agenda papers- Marketing and the Olympic Games- Social Marketing

White papers - The Future of Marketing -Metrics and Marketers in the NHS- Marketing in a Recession

To be become the home of marketing communities

- We will facilitate the largest community of marketing professionals in the world

- The Institute will evolve to develop a range of communities that allow us to engage with the marketing profession on a number of levels.

- Professional Membership is still core to our business, but there are many other opportunities to develop additional communities to widen our reach.

Our

Communities

OpinionFormers

Accreditation/Dual awards

Learners(HEI)

Communities

CAM

HEART OF

MARKETING

COMMUNITIES

WiderBusiness

Communities

CorporateCommunity

StudyingMember

Community

CharteredMarketer

Community

Members(practitioner)Community

OtherProfessionalCommunities

Linked

Communities

Belong

In the last year....

– Professional membership growth currently 1%

– Strong growth in professional membership overseas (7% growth)

– Kenya 23% growth

– Sri Lanka 16% growth

– Ghana 13% growth

– 18,000 student members

– Through our contact centre we engage with over 110,000 individuals

– Information Services team recorded 284,000 information downloads last year

– In 2008/09 the website received 1.3m hits (715k unique)

– 1,664 positive mentions in the media (EAV £2m)

– 80,000+ online readers of the marketer

– Attendance at Regional and Branch events rose from 10,000 to 12,000

Communities

The future of marketing...

Key questions for the profession:

– With the increasing availability of information, how do marketers ensure that they are using the right information to gain the right results?

– With the increasing subtleties involved with the practice of marketing, do marketers increasingly become stakeholder managers?

– How does the advancement of technology change a marketers role? Is it simply ‘old rules, new tools’?

The future of marketing...

Key questions for the profession:

–Does technology enhance good marketing or simply hide the defects of bad marketing?

–Why is marketing still not taken seriously as a boardroom discipline?

–Why are there so many books about marketing and so few about selling?

–Is the future of marketing one where we focus on behavioural change instead of encouraging consumption?

The future of The Institute...

Key questions for us:

– What does a 21st century Institute look like?

– How do we continue to represent/support both the profession and our members?

– How does the advent of social media change the approach that Professional Bodies take?

Marketing in a recession

Frame of reference - marketing?

• Right offer

• Right customer

• Right message

• Right channel

• Right time

• Measured

Marketing

Marketing communications

Good business practice!

Audience participation! Are you...

1 Optimistic about new opportunities for growth, innovation and customer acquisition for 20010-11

2 Pessimistic and worried about what 2010/11 holds and how long this will last

3 On the fence - going to wait and see how the next six months pan out

Turbulent times

Key principles tohelp marketers and their organisations

Applicable to public and private sector, across industry verticals andfirm size7

A lasting

legacy

1. A lasting legacy

Challenges

• ‘Back to normal’ just won’t be back• Key hallmark of this recession

• Capital/credit less available• Individuals and businesses

• Customers now refocusing on a new definition of what constitutes ‘value’

• Customers still spending, but...• Now in need of more compelling,

persuasive reasons to do so

Responses

• Embrace re-using rather than consuming

• Added benefit of a more responsible, sustainable approach

• Don’t wait for ‘normal’ to return• Use short term tactics to inform your

future• Seek out opportunities to align with

a redefinition of value• Redefine the core of your offering

Visibility

2. Visibility

Challenges

• Reducing spend risks invisibility• Short term silence/reduced activity

can have a long term impact

• A silent brand risks further malaise by word of mouth

• [Unfounded?] perceptions of failure

• Cutting marketing investment today can provide competitive vulnerability

• If your activity reduces, competitors’ will increase in relative terms, even if they don’t increase spend

Responses

• Revisit and prioritise core objectives• Retention? Awareness? Market

share growth?

• Are your marketing plans aligned?

• Are other media options available?

• Can you renegotiate rates with marketing services suppliers?

2. Visibility

Example - airline industry

• 9/11 attacks brought many airlines marketing spend to an abrupt halt

• Assumption that customers would dramatically reduce flight purchases

• Ryanair embarked on aggressive (and sustained) marketing campaign

• Revenues increased >20% pa since

+457% (2001-08)• Pax no’s increased >19% pa since

+528% (2001-08)

Source: Airline BusinessSurvey on 2009 marketing budgets

Lessons from the past

Lessons from the past

McKinsey study - 1990/91 recession

• The companies who increased their spend in a recession were the only ones whose profits rose substantially when the economy recovered– Top quartile of companies overspent peers by 9.2%

We’re on

your side

3. “We’re on your side”

Challenges• Customer centricity/affinity never

more important

• ‘Doom and gloom’• Confidence is low

• Trust is under question

• Empathy doesn’t have to mean discounts

Responses• Speak to key customers

• What are they going through?

• Explore how you can show sensitivity to build loyalty• Promotions on price/volume

• Restructured product/service offers

• Retention offers to retain dialogue at lower spend levels

Differentiate

4. Differentiate

Challenges

• Differentiation always been key in commoditised markets - now even more so

• Differentiators require thought from the customers’ point of view

• The current market dynamics can be used as an opportunity to establish a stronger position

• Also keep track of competitors and their strategies

• Avoid the temptation to copy them

Responses

• Macro issues shaping markets are long term trends, not fads

• Revisit what constitutes ‘value’• Rethink your offer/proposition• Explore solutions across the value

chain

Adapt

5. Adapt

Challenges

• ‘Normal’ won’t be familiar when we emerge from this period

• Customers’ are still spending, just in different ways

• EG: automotive spare parts retailer• Retention of second hand cars

could create new segment

• EG: computer hardware supplier• ‘Downsizing’ and office moves

create potential new service offering

Responses

• Avoid ‘marketing myopia’

• Be clear on your competencies• Revisit your definitions of ‘market’

and ‘opportunity’

• Don’t write off defecting or value negative customers/segments

• Assuming core needs still exist, what are they trading down or defecting to?

• Do your competencies align with these new alternatives?

Don’t count

on discounting

6. Don’t count on discounting

Challenges

• Cutting prices an obvious response• A price reduction today

compromises price sensitivity tomorrow

• Cost cutting cheaper than investing in marketing?

• Short term profit defence only• Past campaign impact undone• Maintaining SOV improves long-

term profitability• Maintaining SOV repositions against

competitors not doing so

Responses

• Don’t take your eye off competitor responses to the economy

• Seek out low cost/high value augmentation to product/service offerings

• Are customers looking to reduce spend, or reduce risk?

• How would you approach this?• Talk internally to sales, service,

distribution, finance to explore cross-business solutions

Technology

7. Technology

Challenges

• Technology has transformed marketing over the last decade

• Technology a low cost way of communicating in a downturn

• Online response more effective• 20% more conducive than average• Telephone response 16% less likely• Personalisation makes response

14% more likelySource: CDMS

Examples

• Toolkit Websites• E-Marketing SME• Introduced e-newsletters to maintain

dialogue in current climate• Drives greater enquiries

7. Technology

Responses

• Technology a great opportunity• Reduces Direct Marketing costs• Supports a sustainable philosophy• Positions businesses as innovators/

contemporary

• Find out what online media your segments are exposed to

• Facebook, LinkedIn, Twitter etc• Explore how to leverage and

measure!

Responses

• Measurement is critical• Make sure you know what works

first!

• Be wary of effectiveness• Avoid wholesale changes to media

channels without testing

• Don’t be cavalier• Be sensitive to ‘bombarding’• Be clear on objectives• Maintain an ethical approach -

respect data protection and privacy legislation

In conclusion

Final thoughts

Provided marketers can demonstrate how marketing fits in

with the broader strategic aims of the organisation, they

will have a strong case against panic cuts and for investing

in the very people who can prevent the gap between you

and your competitors increasing.

Final thoughts

The most important thing marketers can do during a

recession is ensure that every bit of budget is spent

wisely. This is true in expansionary times, but becomes

critical in slowdowns.

By all means, allocate marketing spend differently,

but don’t slash it.