Are P&G Right to End Marketing?

In the last couple of weeks, there has been a tremendous amount of discussion around P&G’s decision to change marketing into br and management.

The consumer products world closely watches whenever P&G announces changes, whether to their strategy, marketing or in this case their organisational structure. As this AdAge article (herementions “P&G seems well out in front of the rest of the marketing world — or what used to be known as the marketing world — on this”.

As businesses have become more social, there have been a lot of articles about marketing. Some have spoken about the need for marketing and IT to get together, if not even merge in some way (See this Forbes article). Others have proclaimed the end of the CMO’s position altogether, including the infamous piece by IMD’s President Dominique Turpin “The CMO is Dead ..… Welcome to the CCO. Then there have been even more articles challenging marketing to show their worth and suggesting metrics to prove their ROI (See  Fournaise 2011 study of 600 CEOs or  Forrester’s Marketing Performance Management Survey).

The fact that there have been so many different pieces on the topic over the last year or so, suggests to me that marketing is still vital for and extremely attractive to business, but that it is in desperate need of reinventing itself. I believe this is behind P&G’s move.

At the end of last year I wrote a post proposing what I thought would and wouldn’t change and what needs to. Six months on, in light of P&G’s announcement, I thought it useful to review my list:

What will change

  • Marketing can no longer work alone in a silo; it needs to become more collaborative and more commercial or business oriented. It can no longer remain fuzzy and hide behind claims that its ROI is difficult to measure.
  • anding customer service opportunities” width=”375″ height=”226″ />The sales funnel will be (has already been) replaced by the purchase decision journey, which will be a multi-layered, flexible representation of the route to purchase. For more on this, read “How Great Customer Service Leads to Great Customer Loyalty”.
  • Advertising  and messaging TO the customer will be replaced by valuable information made available FOR the customer. In line with the longer sales journey and multiple online consultations, communication will become more informative, more useful, more timely.
  • Local will no longer be geographic but “Native”. Whether it’s language, habits or interests, customers will be targeted on their similarities that will rarely, if ever, include geographical proximity.
  • Mobile web consulting will become the norm, so br and sites need to become adaptive. Content will aim to inform, educate and entertain first and foremost, rather than sell, and websites will become flexible and adaptive to the differing screens and customer needs.

What won’t change

  • The customer is still the king, but content joins the ranks in almost equal position, needing more respect and value, and less commoditisation.
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Four Tough but Essential Decisions Every Business Leader Must Make: Who, What, Why & How?

“Why do I have to do it?” That was what my friend’s daughter provocatively asked him recently. She didn’t want to do something he had requested of her and like many kids was now questioning his reasoning as well as his authority.

This happens in the work environment too. When you are the boss, your team members are likely to sometimes ask you a similar question. And whilst it may be done less bluntly, they will still be questioning your reasoning and authority.

Last week I spoke about honesty in the workplace and it caused a lot of discussion online and in various LinkedIn groups. This week I want to speak about the difficult decisions we, as leaders, are sometimes forced to take.

Organisational structure

Individuals are all too often promoted for good performance in their current positions and not for their people-management skills or because their abilities are suited to the future positions. This is coined the “Peter Principle” in management theory, named after Laurence J. Peter. His book on the topic, co-authored with Raymond Hull, suggests that people tend to get promoted until they reach their “position of incompetence”. In fact  it has been shown that CEOs who fail are quite often found to have made poor people choices  that they have then been unsuccessful in dealing with appropriately.  (>>Tweet this<<)

True leaders accept mistakes, both theirs and their teams, and personally own their bad decisions. However, that doesn’t just mean firing the under-performing employee. It also means firing someone that doesn’t “deserve” to be fired, just because your priorities have changed. It also means taking the time to explain why; no hiding behind HR to do the dirty work or just h anding over the official letters in silence. Taking the responsibility of one’s acts can sometimes be painful, but that’s what distinguishes a true manager.

Portfolio management

In the garden, you keep your plants healthy by regularly trimming them. You remove the dead wood and cut back the longer stems so the plant will bush out and have more new growth and flowers. The same is true in business.

Both P&G and Unilever have done some radical pruning of their br ands over the years. P&G has around 300 br ands today, a third less than just a decade ago. And Unilever continues to frequently reduce the number of its stock-keeping units (SKUs). Since introducing its “ Path to Growth” initiative almost fifteen years ago, the number of its br ands has been culled from 1,600 down to just 400.

Retail organisations are no longer willing to offer increased space for ever-exp anding numbers of br ands and variants. This is especially true in recent years with the start of a clear increase in the numbers of supermarket chains offering smaller stores. Therefore it makes sense to regularly review your own portfolio and cut the “long tail” of slowest movers. The “Pareto Principle” or 80-20 rule helps a lot to make these difficult decisions. Continue Reading

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