ANA Marketing Musings

Great Marketers Market Great

So what are the common denominators for successful marketers in today’s rapidly changing environment? How can leaders best respond to the challenges of putting consumers in charge … and for making marketing investments more accountable?

I see six distinct platforms that are the foundation for consistent, top notch marketing performance in any industry:

1. Continuous product innovation or reinvention. If you’re not new … or you’re not perceived to be fresh and relevant … then you’re old news … yesterday’s business. Marketers must maintain their relevance in consumers’ minds or get blown away by fast-moving competition. Simply look at what Jet Blue and Southwest Airlines have done to reinvent the airline industry. By simply adding a few television screens and by offering consistent, understandable low fares, they’ve surged past the legacy carriers with sustainable, high quality business performance.

2. Product and service quality is the next critical marketing platform. Consistently being the best-in-class -- year-in and year-out -- is undoubtedly a fundamental component for long-term profitable success. Starbucks is a classic example of winning in the marketplace by consistently exceeding customer expectations … and accomplishing that without the benefit of a sustained communications program.

3. Offering flexible and fair value is an unbeatable way to win consumers’ hearts and minds. I think that one of the best and most recent examples of this marketing platform was Wendy’s extra value meal campaign. Not only was their offering reasonably priced, it was highly flexible. It provided consumers with the appealing choice of substituting a salad, chili or baked potato for the standard French fries offering. This was a stroke of brilliance and ingenuity – and was very useful to blunt the flood of food advertising criticism coming from Washington and special interest groups.

4. Marketing cost efficiency and streamlined marketing processes are paramount. Marketers are consistently looking at their own cost profiles to ensure they are getting the best return for their marketing investment. They need to know whether their marketing supply chain is as efficient as it can be. That’s why procurement departments are becoming increasingly involved in so many decisions, including agency management and media negotiation. It’s also why marketers are becoming more directly involved in functions like talent payments. In fact, the ANA Production Management Committee has just released guidelines for effectively managing television talent payments. And the Committee is encouraging advertisers to meet with their agencies and production consultants to discuss how these guidelines might help maximize efficiencies.

In addition, marketers are working to understand the effectiveness and efficiency of their media buys. Looking to maximize weight against working media, advertisers are striving to reconfigure their marketing mix to improve overall cost balance and to optimize revenue generation. American Express is one of the most visible examples of a marketer shrewdly redeploying its marketing mix.

5. Measurements and Metrics. Perhaps the most profound change in marketers’ behavior is the intensified focus on measurements and metrics.  Driven by the old adage, “you can’t manage what you can’t measure,” marketers are seeking greater precision in assessing the outcomes of their actions, as well as deeper knowledge of alternative communications disciplines. Indeed, the desire to transform marketing into a “science” is one of today’s hottest trends.

6. The final platform – and perhaps the most important transformation for marketers -- is making direct Consumer (or customer) Connections. Today, one-to-one connections are more feasible than ever thanks to targeted or addressable media – whether over the Internet … through the emerging arena of wireless … with the growing opportunities forged by cable TV … via enhanced forms of e-mail marketing … or in the new realm of blogging and other such alternative communication forms. In many respects, marketers are finding that “mass marketing is not dead,” it’s just undergoing an exciting transformation to “Mass Marketing – one customer at a time.” The proliferation of communication channels that we have demonized as “Media Fragmentation” has actually become the foundation for abundant new opportunities created by “Media Diversity.”
The pathway to each of these six platforms is through technology, innovation and experimentation. And importantly, they all recognize that marketing has dramatically shifted -- from a focus on the masses, to a focus on the individual. Marketing will continue to evolve -- ultimately, I believe, becoming a true “One-to-One” discipline. Consumers have enormous leverage and power to determine what they want to see and hear. We marketers must determine how we’re going to get invited to the table because in essence, marketing is becoming “By invitation only.”

Harkin Hears a Mouthful from Advertisers

I am extremely disappointed by the recurrent charges and finger-pointing of Senator Harkin regarding food advertising and marketing to children. Yesterday, Senator Tom Harkin (D-IA) spoke at the annual joint AAF/AAAA/ANA Government Affairs Conference commenting on the advertising industry and his opinions on the affect that he believes it is having on the child obesity issue in the

U.S.  Senator Harkin's comments are listed  here (PDF).

The ANA, AAAA and AAF presented Senator Harkin with this letter (PDF) at the conference yesterday, in response to a letter he sent in March which included many of the same criticisms of the ad industry included in his speech.   

The Most Socially Responsible Industry in America -- Advertising

The cornerstone principle that underscores all marketing is commercial free speech. When commercial messages for legal products are truthful and non-deceptive, marketers should be completely free to market their products and services unencumbered by government regulation – or the threat of such regulation.

I raise this point – at this particular moment in time – because of the outrageous attempts by Congress to vilify advertisers and marketers for many ills in American society. As noted by my colleague Dan Jaffe in his blog, Senators Harkin and Clinton bashed food marketers for undermining the health of our children by causing obesity. Representative Moran called for the restriction of ED ads. And Senator Grassley outlined provisions to eliminate the tax deductibility of prescription drug advertising.

I have no problems with politicians calling upon various industries to support initiatives that seek to improve the social well-being of all Americans. But I do have big problems when those calls threaten to impose governmental regulation and control -- particularly when the underlying issues are poorly supported by the facts.

I am particularly frustrated when the good work and socially responsible initiatives of our marketing industry go unrecognized and unappreciated – particularly by those grand standing in the political arena.

* Think of the great work done by the Advertising Council and its media partners who provide more than $1.5 Billion in donated media to educate the public on a variety of issues including drunk driving, seat belt usage and, of course, the well-being of children.

* Think of all of the great work done by the Partnership for Drug Free America and the enormous success it has had in curbing drug usage – particularly among teens and young adults.

* Think of all of the great work done by the Children’s Advertising Review Unit and the National Advertising Division of NARC – our self regulatory body -- to ensure truthful and non-deceptive advertising.

* Think of all of the great work done by the Family Friendly Programming Forum – the advertiser-sponsored group associated with the ANA that has successfully delivered outstanding prime time network programs so that parents and kids can watch television together.

* Think of all the great work done by the AAF, the 4A’s and the AEF to promote improved advertising and marketing education at our country’s higher institutions.

The marketing industry has done more than its share to contribute to the well being of people in America. Our industry’s social responsibility track record is second to none – and I encourage any and all politicians to take a fair and balanced look at the incredible good that we do.

All of us – the media, the agencies and our marketers -- should be very proud of the indelible contributions we have made -- and will continue to make – to American Society.