Should CMOs Concentrate on Brand Building or Business Growth?

Do you remember when Coca-Cola did away with their CMO in favour of a Chief Growth Officer? Then two years later they brought back the position. At the time, I asked if they were wise or foolhardy to make such a change, but they answered the question themselves!

In an interview with Marketing Week, their global vice-president of creative claimed that it had “broadened” the company’s approach to marketing. Obviously, this didn’t live up to their optimistic expectations. I think that other companies who followed suit, also realised that they need a CMO after all. However, their role has changed significantly. 

 

HOW MARKETING HAS CHANGED

Marketing is an old profession. It’s been around for hundreds of years in one form or another. If you’re like me and are fascinated by how change happens, then I’m sure this complete history of marketing Infographic by Hubspot will be of interest.

With the arrival of digital marketing in the early 80’s, many companies began to take a serious look at their marketing. They realised that their primarily outbound strategy had to change. Their consumers didn’t appreciate being interrupted in their daily lives. However, with the creation of inbound marketing, they still irritated their consumers with spammy emails, popups and “subtle” cookies for following their every move. No wonder the EU felt inclined to develop its GDPR (General Data Protection Regulation).

What has changed over the past five years is marketing’s deeper awareness of, if not complete adherence to, what customers like and dislike. The major trends that we have seen and their impact on marketing, include:

  1. Chatbots, especially through Facebook Messenger and WhatsApp, to catch consumers on the go with highly personalised messaging.
  2. The use of voice. With the battle between Amazon, Microsoft and Google in the voice search and commands domain, customers can get answers just by asking. This is a huge challenge for businesses because being on the first page of search results is no longer enough; you have to be first!
  3. Video is taking over social media, with its rapid rise on YouTube, Vimeo, Twitter and Facebook.
  4. Influencer marketing is giving way to customer journey mapping with the increased detail that IoT can provide. Many organisations have moved their marketing plans to mirror their customers’ path to purchase. Or rather paths, as personalisation continues to trump mass engagement.
  5. Zero-party data. As social media platforms have seriously reduced the collection of their subscribers’ data, brands are increasing their direct engagements with their consumers. Through polls, quizzes and competitions, they openly ask for consumers’ details, bypassing the need for cookies.

Have you taken these megatrends on board and adapted your marketing accordingly? If not, why not? 

 

BRAND BUILDING

In the past decade or so, many large CPG companies such as P&G  and Nestle renamed their Marketing departments as Brand Builders, in the hope of adapting to this new world. They failed, miserably.

I believe the reason they failed is that despite this name change, they continued to run their marketing in the same old way. Continue Reading

The Exceptionally Easy & Profitable Uses of Customer Co-creation

One of my clients, who is following the 50 weekly actions for customer centric excellence as described in Winning Customer Centricity, asked me for some further ideas on how to execute customer co-creation.

Since working more closely with customers is the best way to understand, satisfy and delight them, I am impressed that she is taking customer co-creation even further. In fact, I realised that this is an area that many of you may be interested in learning more about, so I decided to share what I told her, but first …

What is Co-creation?

The term co-creation has been around for decades. However, it is only in the last ten years or so that we are seeing a growth in co-creation in so many different areas of marketing.

According to Wikipedia co-creation is

“A management initiative, or form of economic strategy, that brings different parties together (for instance, a company and a group of customers), in order to jointly produce a mutually valued outcome.”

Individualisation, which offers higher-priced items with a customer perceived higher-value, has been popular for years. It allows customers to design their own unique products to show off their personality. For instance, customers can personalise their M&M chocolates and design their own Nike running shoes. But these are not strictly co-creation since they are designed by one person for for one person. Co-creation is designed by many for the many. 

After the success of such personalised offers, organisations understood that there is value in getting input from customers. They now include them not only in product enhancements, but also in developing their advertising and even in first-stage innovation.

The practice has been further intensified by the internet, which has enabled companies to reach out to customers across the globe, virtually for free. Social media, in particular, is a great source of customer understanding, as well as for highlighting issues with current offers. This is why co-creation should include social media in some form, as I’ll share further on.

 

These are just a few of the best uses of customer co-creation that I remember, but I know there are many more. If you have other examples, I would love you to share them below.

In conclusion, I hope I have inspired you to try customer co-creation and to include them in more of your internal plans and processes. It is not only fun, it also provides you with fresh thinking  and a deeper understanding of how your customers’ needs and desires are changing. Makes you wonder why you haven’t done it before, no?

Need help in setting up your first customer co-creation sessions? Then I can help; contact me here: https://c3centricity.com/contact

 

 

Continue Reading

Successful Innovation comes from answering Desires not Needs

What is the difference between a need and a desire? Emotion, that’s what. A need is something for which someone has a necessity; a desire is something they want or crave, whether they know it or not.

There are the three main types of products or services that companies offer; it is important that you underst and the difference between them as well as what you are offering or planning to innovate, if you are to be successful.

Some organisations speak about articulated, unarticulated and unimagined needs, but they miss the power of emotions if they are considering all three as simply needs to be addressed. Unless there is an emotional connection between what you are selling and what your customer perceives he is buying, you are likely to remain at the level of a commodity, or at best are restricted in the price you can charge. Only emotional connection brings passion into the equation, when customers desire or crave your product or service and are willing to pay (almost) anything to have it.

Examples of Great Emotional Connection

Think about Apple as a great example of a company that brings passion into their products, so that potential customers pre-order or spend the night queuing in front of the shop in order to have the privilege to give Apple their money in exchange for the latest gadget.

Now I love Apple as much as most people, but are their products really worth more than their competitors? Was the iPod really that much better for listening to music on the go? Probably not, but it is their customers’ desire to be a part of the Apple “family” that makes them crave their products.

Another example is Marlboro cigarettes. Do they really taste better than other br ands? Maybe, but it is not the taste (alone) that makes smokers remain loyal to the br and; rather a feeling of community and adherence to a desired image.

And speaking of taste, what about colas? The now famous brain imaging study run by Baylor College of Medicine – you can read more about it here – showed that consumers thought Pepsi tasted better that Coke, but there was something very different happening in the brain when consumers thought they were drinking Coke or Pepsi. It was what the consumers were thinking that made the difference, a result of br anding.

So what can you do to make your customers think differently about your br and, so that they remain loyal to it, desire it and even crave your product or service? Bring in and stimulate their emotions; here are four ideas on how this can be done:

#1. Make them feel special, different, privileged

This can be achieved through:

  • higher prices – many premium and luxury products are priced more on image than on cost and their customers are happy to pay more for the associated image that has been created
  • membership to a br and club with special privileges – Nespresso is a great example of this; their clients get to order online and even get asked their opinion or to choose new flavours
  • personalised offers – unlike clubs, these are offered to a wider group of purchasers (on a mailing list for example) but the wording of communication and the offers proposed are personalised to each target group, so they are perceived as more personal

#2.

Continue Reading

No Success without Trust

One of the (many) reasons Coca Cola is so successful, is because consumers Trust the br and. They trust that it will refresh them and help them to enjoy a relaxing moment, probably in the company of friends and family. 

Trust in a company or br and is what makes people believe in it, makes them loyal to it and often willing to pay more for it than other, similar offers. If you don’t know whether or not consumers trust you, or how to go about increasing it, then read on.

 

There are no Br ands without Consumers

A now famous, but anonymous quote states that:

“There may be consumers without br ands, but there are no br ands without consumers”

In other words, unless people purchase what you are manufacturing, then however you package and br and it, it will certainly not succeed. IPSOS MORI in the UK went even further, when they said that “There is little doubt that an organisation’s reputation is its most important intangible asset. Managed effectively, it can increase loyalty, commitment and support from a wide range of stakeholders. A strong reputation creates a positive halo around an organisation – generating a reservoir of good will as well as increasing the effectiveness of its marketing and communication activities.” In the case of Coca Cola, the br and is the company and the company is the br and, and as such the company needs to abide by the same rules as br and building.

 

A great example of a great Br and

Coke’s promotion the Coca Cola Friendship Machine (video) is a great example of how well Coca Cola underst ands its consumers really well. This knowledge and underst anding comes not only from market research, but from all employees putting the consumer at the heart of their business. And they don’t just talk about how important their consumers are to them; they walk consumer-centricity day in, day out. They demonstrate it in their constant reevaluation of what they are communicating and how they are doing so. And they demonstrate it to their consumers by surprising and delighting them every day.

 

Trust enables mistakes to be overcome more quickly

To be truly consumer centric takes work, but all (CPG / FMCG) companies need to reevaluate how they are integrating their consumers into everything they do. They need to start every decision or plan by thinking about their consumers first and what they would like the company to do. Even when there are problems, recalls or disasters to face, consumers are more likely to be underst anding and stay with a br and that is open, honest and transparent; a company that tells people what has gone wrong and how they plan to put it right.

Whether good or bad, today the web means that news is shared globally FAST; you can’t avoid it. Everyone makes mistakes but people – and companies – we trust openly admit it, learn from it and move on.  Continue Reading

New Year, New Challenges: 3 Helpful Ideas for Innovators

As we ramp up to face the economic, political and societal changes that will surely continue in 2012, many organisations are challenging their R&D and hopefully marketing departments too, to develop and launch new products and services.

With luck, these developments were already in their plans and pipeline for this year, but sometimes businesses are forced into going to market sooner than they would have liked, due to market circumstances or competitive activities.

An article in Marketing Week (read here) at the beginning of last year, mentioned that Unilever said that increased investment, as well as their “Bigger, Better, Faster” innovation initiative was the driving force behind its increased profit and sales in 2010.

As we are all only too aware, today’s customers are highly dem anding of novelty and each period of satisfaction becomes shorter and shorter, as they quickly get accustomed to the latest improvements.

In an earlier post (read here), I spoke of the research carried out by Jan-Benedict Steenkamp, a marketing professor at UNC Kenan-Flagler which showed that CPG / FMCG innovation needed to be one of the two extremes of “innovativeness” to succeed:

  • either a minor improvement, or renovation, such as a new flavour, size, colour, packaging, content …
  • or a radically new product that is significantly different from anything else on the market. These are of course more breakthrough and therefore more difficult to develop. Past examples have included microwave meals, Sony Walkman, Nespresso, iPhone, Ipad,

The interesting and perhaps disturbing thing about breakthrough innovation, is that timing is everything; bring it out too early and people won’t underst and or see the need; too late and competition might beat you. This is one of the reasons that IT companies quite often offer “beta versions” of their products or software before they are 100% ready and then quickly follow with a version 2 with corrected or improved functionalities.

Other br ands such as Nestlé’s Nespresso or even Gillette’s Silkience, the first shampoo with integrated conditioner, launched almost 40 years ago, were introduced ahead of the curve, before their consumers were ready for them. The companies then had to decide to either wait it out (Nespresso waited many years to become profitable) or relaunch at a later date, but then risk being pre-empted by competition, who then have the time to copy the new product.

So how can companies better underst and their consumers’ needs, desires, or even unarticulated and unknown needs, and launch just in time to benefit from them? Here are three ideas that I came up with, but I would welcome your input too:

1. Develop Future Scenarios

Most organisations today are following trends, but as competition is almost certainly following the same ones, there is no competitive advantage and little chance of benefiting from identified tendencies. It is only when the trends are turned into future scenarios that the real competitive advantage appears.

 

2. Identify lead countries

Most industries have markets where the consumers are more dem anding or more open to innovation in certain categories. Continue Reading

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