As marketing teams finalise plans for the year ahead, the logistics of making growth happen should be strongly influencing the targets you set. Most of us would agree there are four ways to strategise for growth: increase the share you hold in the markets you are strong in; develop new products for those markets; extend your reach by finding new markets for your current brands; and develop new products that cater to new markets.
Chief Marketing Officers (CMOs) haven’t had it this good for some time. As Jack Trout observed the average tenure not so long ago stood at less than two years. Now it’s close to double that. The reasons why things got so bad, according to Trout, could be attributed to both internal and external forces. Internally, politics and competing functions combined to make it tough to get and keep the resources that CMOs needed to do an effective job. Externally, prima donna agencies with a hotline to the CEO also caused problems. Not helped, he says, by the fact that in most organisations the CEO is the ultimate CMO. The decisions they make essentially provide the marketing team with their licence to operate.
P&G’s decision to formally end the era of “marketing” at the company and make the shift to brand management may accelerate what amounts to much more than a title change for marketers generally. To me, it could point to a fundamental re-examination of the role of the people responsible for brands.
Marketers are busy talking up the value of telling the stories of their brands. But why aren’t more organisations structuring their own strategies and issues as stories, and what role are marketers taking in making that happen?
Marketers tend to think of their customers only as those people who purchase their brands – and to distinguish them from people who don’t buy any more or who haven’t bought yet. However, in a world where all manner of consumers are connected, it’s important to pay attention to a number of other groups that have influence but may not necessarily be in the aisles.
Marketers and business writers have been talking for ages about disintermediation – cutting out the middle man – in a bid to achieve more direct and economically efficient relationships. But the battle between Hachette and Amazon reminds us there are still very powerful players mediating between customer and producer.
Paul Marsden’s piece on “Thinking Fast and Slow” (thanks Hilton Barbour) raised some great marketing implications from Daniel Kahneman’s work that are well worth reading.
It’s an old bias but a telling one. Finance people accuse marketers of only spending money. Marketers accuse finance teams of only counting it. It’s another re-run of the analytical versus emotive debate yet it has the potential to carry deep bias into decision-making. As Brad VanAuken observed in this article, “I have found that many scientists, engineers and finance and operations professionals view marketing as a soft skill that lacks the rigor of other disciplines and that it deserves less attention and investment.”
From a marketer’s point of view, numbers don’t drive recessions. They may start them. They may justify them. But they don’t actually make them happen. What drives recession in a consumer economy is very much the same thing that drives boom: emotion. When enough people believe in it, it will happen – and that’s because there will be enough people acting in a recessive way for the mindset to become embedded, and for the behaviours to seem logical, sensible, responsible, unavoidable.
I’m intrigued by the number of people who insist they don’t believe in marketing, that no-one takes any notice of it and that they don’t have time to engage with brands. Until … they have something they want to tell the world. Then, suddenly, marketing – specifically their marketing – is interesting, exciting and something they know will work once they reach people. “Everyone will want to hear.”