CMO's as Change Management Operators
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The document discusses the evolving role of Chief Marketing Officers (CMOs) as change management operators, addressing significant marketing-led changes in 2012 that improved customer engagement, revenue growth, and alignment with organizational goals. It highlights a shift from traditional marketing methods to integrated, data-driven approaches that enhance brand value in a rapidly changing digital landscape. It also emphasizes the necessity for CMOs to adapt their strategies to meet the demands of a hyper-engaged, multi-channel consumer environment.
CMO's as Change Management Operators
- 1. CMOs as l.27.l3! Change Management Operators
- 2. As a CMO, are you experiencing big CHANGES in your leadership role?
- 3. survey says: What is the single-‐most significant Marke4ng-‐ led change that you managed in 2012 and what was the o... * What was the most significant Marketing led change that you managed in 2012 & what were the results? Implemented Marketing automation system with Salesforce.com Re-org’ed Marketing to align with other Division’s & Company goals Sales marketing tools to differentiate Sales team - increased revenue Integrated Marketing strategy with new products, communications, digital Implemented financially-driven alignment process with Product & Sales - increased attributable opportunities to Marketing … at lower cost Increased globalization – Marketing Centres of Expertise - improved employee engagement, leveraging of best practices, customer experience Deployed performance based marketing measures & use of data for actionable decision making *CMO survey led by Kimberly A. Whitler, Indiana University Kelley School of Business PhD candidate & serial CMO
- 4. from Chief Marketing Officer
- 5. to Change Management Operator
- 6. Maribel Garcia–Rodriguez Director, Global Marketing Excellence, Bayer Consumer Care Lorena Harris @harrilor VP Corporate Marketing Steven Cook @StevenCook CMO writer former CMO Vince Ferraro @VinceLFerraro former VP Global Strategy & Marketing, Corporate & Consumer Group Filip Wouters @FilipAWouters Senior Director, Integrated Marketing, Windows Phone CMOs/Senior Marketers as Change Management Operators - Improving Customer Engagement - Building Relevant Brands - Growing Revenue, Improving MROI
- 7. Understanding & proactively leading through these changes is critical to each of us.
- 8. Not making Brand Marketing changes from this …
- 9. ‘listening’ to your consumers like this …
- 10. strategic planning like this …
- 11. digitally engaging with your consumers like this.
- 12. ‘It’s Time To Raise the CMO Bar’ Editor & reader pick 12 Most Popular Posts of 2012 Chief Marketing & Sales Officer Forum Editor ‘Must Read’ www.cmo.com/articles/2012/1/24/its-time-to-raise-the-cmo-bar.html Q1 2012
- 13. ‘It’s Time To Raise the CMO Bar Tipping point to develop NEW & IMPROVED roles for CMOs, Marketing & Agency partners to remain relevant, valued, connected & focused on the highest value creation strategic opportunities. Shift from traditional CMO role & deliverables to CGAR5 - Commercial Growth Accelerator Relationships (‘people’ engagement) Reputation (authentic, transparent, trust) Relevant reimaging (compelling value prop, grow brand) Revenue & results (metrics that matter, MROI) Real-time (responsive, agile)
- 14. What has shifted? push > pull > powered = >potential
- 15. What has shifted? push > pull > powered = >potential >potential for people & brands
- 16. driving brand value pre-digital push brand customer 1-way Adv Tech /prospect
- 17. driving brand value pre-digital push brand customer 1-way Adv Tech /prospect 2013 2009 2011 2012 2014 people brand 2010 2008 2016 2015 powered potential
- 18. Communication landscape has shifted from 1-way brand building at you to building brands with constituents.
- 19. Consumer’s behavior has shifted to a hyper socially engaged, multi-screen, mobile lifestyle. Super Bowl 2013 online offline party
- 20. Consumer’s path to purchase has radically shifted to a non-linear, merged online-offline multi-screen journey.
- 21. HAPPENED!
- 22. HAPPENED! Fundamental sustained strategic shifts have happened that will continue to accelerate people power… and change their behaviors and expectations… powering potential for brand’s to deliver increased value. trend • general direction in which something is developing or changing or has a tendency to move, or a popular taste at a given time shift • to exchange or substitute one thing for another • to move or transfer from one place or position to another • to change position, direction, place, or form We are beyond trends.!
- 23. And experts forecast that these shifts will accelerate. “This cycle of tech disruption is materially faster and broader than prior cycles. No industry or business is immune. We will see the re-imagination of nearly everything… powered by new devices, connectivity, UI, and beauty.” Mary Meeker, General Partner at Kleiner, Perkins, Caufield, Byers
- 24. Digital is no longer a subset of the average person's life. It's just a part of everyday living that's expected and more accessible than ever. Marketers need to embrace how people (consumers) engage digitally and integrate their communications accordingly.
- 25. Digital Brand Marketing 2013+ Sustained Strategic Shifts_ Smart User Experience Social Media Mobile First Multi-Screen Integration Omnichannel Big Data INNOlytics Content Context Social TV CMO Reinvention Brand Value Reimagined Brand Trust Brand Agility www.slideshare.net/stevencook/2013-digital-brand-marketing-sustained-strategic-shifts-legolas-media-neustar-adadvisor-digital-brand-forum-11713
- 26. CMOs understand importance of these shifts … are starting to make changes.
- 27. Marketing Mind is at a tipping point shifting from ‘Art Science’ to ‘Science Art’.
- 28. Chief Marketing Sales Officer Forum ‘Prediction for 2013: “Operations” becomes a key word in Marketer’s vocabulary’ ‘every CMO made a strong reference to the significant changes they have had to make to their operations’ ‘non-stop drumbeat of mentions: “the incredibly heavy lifting it took to ___” ‘ ‘snapping point of current organization structures, processes, tech’ ‘getting tighter about designing workflows for customer engagement’ ‘setting up coordinating mechanisms across functions lines of biz’ ‘rethinking agency mixes what they do internally’ ‘standardizing on shared sets of technology tools’ ‘needing to add new roles’
- 29. “More than 70% of needed change either fails to be launched, completed, or finishes over budget, late, and with initial aspirations unmet.” John P. Kotter Harvard Business School
- 30. Topline stories about 2012-13 Change Management Operator Marketing led initiatives that grew value-add results grew leadership capabilities. Maribel Garcia–Rodriguez Director, Global Marketing Excellence, Bayer Consumer Care Lorena Harris @harrilor VP Corporate Marketing Vince Ferraro @VinceLFerraro former VP Global Strategy Marketing, Corporate Consumer Group Filip Wouters @FilipAWouters Senior Director, Integrated Marketing, Windows Phone - Improving Customer Engagement - Building Relevant Brands - Growing Revenue, Improving MROI
- 31. Filip Wouters @FilipAWouters Senior Director, Integrated Marketing, Windows Phone Change Management Operator - Improving Customer Engagement - Building Relevant Brands - Growing Revenue, Improving MROI The Launch of Windows Phone 8 – A Mobile Change Challenge
- 32. The Change Challenge: Create the Next Mobile PlaDorm
- 33. A Fully Integrated Approach to Windows Phone Best of Microso, Best for Windows 8 Surface Killer Hardware 8X HTC Nokia Lumia 920 Windows Phone 8 “Windows Phone 8 makes big changes while remaining true to its core. On the whole, it is a worthy refresh, and one that gives MicrosoM's mobile plaDorm the boost it needs to compete against Android and iOS.” Over 125,000 apps Store available in 50 languages and 191 markets
- 34. Crea4ng Customer Engagement Starts with a Clear Consumer Target Persona Target market
- 35. And features that can change the game. Only Windows Phone has … Live Tiles Live Apps SkyDrive Kid’s Corner
- 36. Building a brand starts with a clear brand story “The smartphone reinvented around you”
- 38. Building a brand through Integrated Marke4ng Touch Points Dot.com Learn and Evaluate Select and Buy Ecosystem buys (apps/accessories) Consumer Purchase Journey Brand Experiences Familiarize Try Purchase Customer Service Use Advocate Tv ads Retail stores Crm Social Wow demo Online ads Print Custom RSPs OOH MS stores / e-‐commerce WOM PR Product Across Windows Phone, MicrosoM, OEM partners and mobile operators Experien4al Cinema Search
- 39. Global marke4ng – Reinvented Meet Jessica Meet Gwen Meet Cam Meet Bilbo Glocal approach: +20 Celebrities characters in 5 countries, 32 TV ads
- 40. Integrated marke4ng -‐ reinvented Bilbo App CollecTon InteracTve Print (STckers) CompeTTve mobile ads
- 41. And the results… -‐ Engaged customers: Dot.com, Social, CRM Online -‐ Brand momentum: Considera4on, Percep4on Recogni4on -‐ Growth: RSP, Experien4al, MS Stores, Demand in stores
- 42. Change Management Operator - Improving Customer Engagement - Building Relevant Brands - Growing Revenue, Improving MROI Maribel Garcia–Rodriguez Director, Global Marketing Excellence, Bayer Consumer Care Marketing Evolution as Change Management Operators
- 43. The rate of change is not going to slow down anyTme soon. If anything, compeTTon in most industries will probably speed up even more in the next few decades. — John P. Koer Leading Change
- 45. Why is Integra4on Necessary? CONSUMER VALUE CONVENIENCE COMMUNICATION PRODUCT PRICE PLACE PROMOTION
- 46. Why is Integra4on Necessary?
- 47. WHAT IS INTEGRATED MARKETING? The coordinaTon and integraTon of all markeTng communicaTon tools, avenues, funcTons and sources within a company into a seamless program that maximizes the impact on consumers and other end users at a minimal cost Source: Wikepedia
- 48. WHAT IS INTEGRATED MARKETING? “A way of looking at the whole markeTng process from the view point of the consumer” Phillip Kotler, Professor of Interna9onal Marke9ng, Northwestern University
- 49. WHAT IS THE FOUNDATION FOR SUCCESS? CONSUMER Focused Thinking CONNECTIONS Among Key Ac4vi4es PLANNING as One Team
- 50. Marke4ng Integra4on = Strong Results Elevit China • Helped iden4fy in store and digital as new channels which, upon ac4va4on lead to a 77% growth and +12.9 share points. Bepanthen Russia • Helped iden4fy Maternity hospitals and digital as new channels which, upon ac4va4on lead to 35% growth vs. 15% growth for the category
- 51. “We don’t have a choice on whether we do social media, the ques4on is how well we do it” -‐ Erik Qualman* Source: 2013 Social Media Revolu4on The ROI of social media is your business will exist in 5 years*
- 52. Why is a DDP Process necessary? • Digital is s4ll new to most of us • Digital development is complex – involves mul4ple agencies and func4ons • Legal and regulatory restric4ons are vague • There a few established success models • Digital development oMen lacks strategic direc4on and/or is not fully integrated in the overall communica4on strategy
- 53. What is the Founda4on for Success
- 54. Strategically Integrated Digital = Strong results 800,000 video views of Canesten ‘The Naked Truth’ You Tube Channel in only 4 weeks
- 56. Change Management Operator - Improving Customer Engagement - Building Relevant Brands - Growing Revenue, Improving MROI Lorena Harris @harrilor VP Corporate Marketing Marketing Change Management at Vantiv
- 57. Vantiv’s Marketing Mission Marketing’s Challenge in 2011: Rebrand and build awareness from scratch in time for a successful IPO Marketing Challenge for 2012-13: Redefine the Marketing function as a change agent, revenue center, and partner to the Sales process. Vantiv is a 40-year old payment processing company, originally known Fifth Third Processing Solutions, the payment processing division of Fifth Third Bank. A decision was made to separate and re-brand in June of 2011. The new company subsequently IPO’d in March 2012 with a market cap of $3B. 57 …Or, put another way… Work Miracles
- 58. Change Management Through Content Marketing Vantiv’s thought leadership / content marketing program is designed to: • Improve brand awareness, • Position the company as an industry thought leader, • Generate qualified leads via multi-channel digital campaigns, and • Provide the Sales force with high-quality content for client conversations. The Vantiv Insight Series Research In January 2012 Vantiv and Mercator Advisory Group teamed up to conduct primary research on payment trends in the U.S. We asked 1200 consumers details both about how they currently make payments and how they expect to do so in the future. The research was just refreshed in January 2013. The Vantiv Insight Series is based on this data, and provides educational campaigns and tools to help merchants and financial institutions identify areas of opportunity in payments. All this information is available at Vantiv.com/research, with registration required so that Vantiv can follow up to nurture prospects and funnel leads to Sales.
- 59. Vantiv’s Thought Leadership Program Something to Talk About 59 2012 Program Campaigns Jan Security Fraud Protection April Top 10 Trends for 2012 July The Case for Prepaid Sept Payments Go Mobile Nov Executive Thinking on Payments 2012 2013 Program Campaigns March Top 10 Trends for 2013 June Payments in the Omni-Channel Customer Experience Sept In Pursuit of Mobile Payments Nov Executive Thinking on Payments 2013 Viewers who come to Vantiv.com for the Thought Leadership content represent over 66% of new visitors, spend 4X longer than the average viewer, and view over 11 pages per visit (versus 4.5 pages). In 2012, the program touched more than 12k opportunities and helped generate more than $22M. http://vantiv.com/research
- 60. Thought Leadership Program Toolkit #9 Social Media Podcasts Video Sharing Social Networking Blog Content #5 PR Media Presence News Releases Media Briefings Media Query Responses Interviews #7 Events Webinars Trade Shows Community Events #14 eNL’s Blogs #2 External ValidaTon Experts as Spokespeople Endorsements Referrals Co-‐PublicaTon Co-‐MarkeTng #12 Collateral #13 Sales Tools Core Business Issue #15 eBooks #8 Themed Videos External Experts Client Interviews Event Montages #10 Sales PresentaTons Scripted Sales Presos Industry Deep-‐Dive Presos Short Decks Filler Slides #6 Speaking Engagements Client Seminars Prospect Workshops Industry Conferences #3 Web Micro-‐site Key Findings Industry Views Downloads #1 Primary Research White Papers Key Themes Quarterly Campaigns #11 Sales Training Live PresentaTons Recorded Webcasts Scripted PPTs #4 SEM Organic Paid Search Editorials/ Advertorials Referral Program
- 61. Change Management Via Integrated Channel Mix In late 2012 Marketing began leading revenue acceleration campaigns which apply a full set of digital inbound marketing programs -- integrated with traditional outbound channels -- to deliver leads with a 3X higher close rate than any other lead source. Prospect or Client Nurtured by Mktg thru Marketo MarkeTng Lead Qualified by Inside Sales team Sales Opportunity Closed by Sales Serviced by Rel Mgmt Accelerated Revenue Cycle (ARC) Fast-track Lead Gen Program • Kick-off: Identify revenue goals, target markets, primary channels, timing, success metrics, etc. • Inbound Marketing (B2B) – web content, advertising (print, online), paid search, SEO, webinars, blogs, videos, social media, events, PR, etc. • Outbound Marketing (B2B) – Direct mail, email mktg, event invites, telemarketing, sales tools, etc. • Assessments: Frequent, then regular evaluation of metrics and adjustment of tactics to ensure leads are flowing within 2-3 months.
- 62. Demonstrating the Value A marketing touch does not equal a sale, but it’s valuable to show Leadership how and when Marketing contributed – and which tools are most effective in soliciting the desired responses from prospects and clients. 62 Circle size represents program cost. Therefore at this time print SEO and web search have the lowest cost, highest success, and best ROI. Conversely, print advertising is the most expensive, least successful and has lowest ROI.
- 63. Change Management Via Marketing Automation Critical Tool: Implementation of a marketing automation system (like Marketo) for lead generation and nurturing, email marketing, analytics, reporting, and interoperability with salesforce.com. Marketing Maturity Journey *% Revenue Target Achieved Chart information from Marketo 63 + Leverage automated email or direct mail communications to stay in touch with customers Traditional Marketing + Enable business users to create content, manage campaigns and events + CRM Integration + Lead scoring practices Demand Generation + Embrace multi-channel program delivery + Lead scoring and nurturing + Alignment between sales and marketing + Integration to 3rd party system Integrated Marketing + Improve business results through continuous analysis and optimization of sales and marketing resources Revenue Performance Management *60% *72% *80% *100%
- 64. Change Management Priorities for 2013 Improve Brand Awareness Fill The Sales Funnel With New Prospects Help Sales Cultivate Client Relationships Integrate Sales Marketing Efforts Improve Mktg Mix Effectiveness Demonstrate Value Be a Change Management Agent Going Forward
- 65. Change Management Operator - Improving Customer Engagement - Building Relevant Brands - Growing Revenue, Improving MROI Vince Ferraro @VinceLFerraro former VP Global Strategy Marketing, Corporate Consumer Group Change Management - The Decline and the Phoenix of a Venerable Brand
- 66. EK Facts At A Glance • 1892 -‐ Founded in 1892 by George Eastman • 1900 -‐ Introduced Brownie camera for $1 • 1901-‐1930s executed marke4ng like Coca-‐Cola, Ford, and PG • 1974 – Developed film used on the moon • 1975 – Developed first digital camera • 2004 – Last film camera sold • 2012 – Kodak files for Chapter 11 protec4on • 2012 – Announces businesses to be sold or shut down • 2013 – Kodak plans and is likely to reemerge from chapter 11 later this year. Sells IP and license brand
- 67. The Marke4ng Transforma4on Agenda Three Ques4ons Old and Rusty Brand New and Shiny Brand 1) What do we do with the Kodak brand? 2) How does marke4ng posi4on Itself as a change agent? 3) What needs to be done immediately?
- 68. What Do We Do With The Kodak Brand? SituaTon: • Kodak’s brand lost over $10B in equity between 1999 and 2007. • Brand had strong awareness but lacked energized differen4a4on and relevance. • Consumer brand posi4on with a go forward B2B set of businesses. • IP PorDolio externally valued at $1-‐2B in late 2011. • At the 4me around the Chapter 11 filing, the market cap of Kodak hit $145M. AcTons and Results: • IP sold for $525M to a consor4um. • Selling or shut down all of the consumer businesses (cameras, printers, photofinishing). • Refocus brand on remaining B2B businesses. • Licensed B2C brand to consumer photography company.
- 69. How Does Marke4ng Posi4on Itself As A Change Agent? SituaTon: • Marke4ng had to take charge of the communica4ons, especially with the end user. • Cycle 4mes for strategic communica4ons went from days to hours. • Mindset shiM – From money spent and its ROI to money saved and its ROI. • Drama4c cost reduc4ons to contribute to downsizing of “RemainCo” company. AcTons and Results: • Marke4ng-‐led end user communica4ons for the company, Chapter 11, business shutdowns, including the establishment of Kodak Transforms web site. • SWAT teams established to reduce communica4on cycle 4mes. • Unwound sponsorships, saving $17M in 2012 and $77M over life of contracts. • Tough decisions in reducing cost structure and winding down func4ons and jobs that were no longer needed or affordable. • Developed a no excuses Nike “Just Do It” approach. Provided air cover to team for difficult decisions with collabora4on.
- 70. What Needed To Be Done Immediately? SituaTon: • Need to cut costs to manage to “new reali4es” of Chapter 11. • Ensure business confidence to all stakeholders. • Mo4vate and retain employees, especially high performers in strategic posi4ons. • Move from strategic planning process to something more short term and responsive. AcTons and Results: • Drama4c reduc4ons in people costs. Transparent process of how people and job reduc4ons were going to occur. • Business con4nuity – communica4ons to strategic partners and Kodak.com • Provide buffer to team -‐ accessibility, authen4city, buffer from C-‐suite, individual recogni4on, deployment of reten4on programs, etc. • Double down on cri4cal marke4ng ac4vi4es – trade shows, events, new product launches, social media, and online.
- 71. Lessons Learned • Don’t expect a call to be a leader. Just act and do. Lead the change you want to have happen. • Know the limits of your brand. In the church of your brand, not everyone is going to want to be a member! • Know the difference and 4me for brand building and con4nuity. • Learning how to “deconstruct” marke4ng func4ons and spend is as important as “construc4ng”. • You got to know when to hold 'em, know when to fold 'em. • Marke4ng scope gets very granular – revenue, costs, intros, strategic account management …
- 72. Eastman Kodak Company – The Story Con4nues …
- 73. Filip, Maribel, Lorena Vince, Thank you for sharing your successful Change Management Operator stories! What was your most significant incremental value contribution? What was your most significant professional growth?
- 74. What value adding CHANGES are you going to lead in your leadership role? Tell us: #CMOExchange #CMO.com