ANA Marketing Musings

ANA's Marketer's Constitution

Today I will talk about ANA’s 100th Anniversary Marketer's Constitution. The constitution is a series of fundamental principles that we believe will apply to the marketing industry. Our hope is that these principles will carry us forward, helping us to build our brands and businesses. This is part one of a three part series.

Recession Marketing Vlog: Let Creativity Fly

Thanks for coming back and looking at my third blog in this 10-series, "Marketing in a recession" video blog. The third strategy deals with being creative. Innovation through consumer insights and experimentation can produce breakthrough ideas. I tell you why it's important, especially in tough economic times.

Recession Marketing Vlog: Passion and Leadership are Imperative

Welcome to my very first video blog! I'd like to invite you to my office where each week, I'll discuss the latest in the marketing industry. First, I will start a series of video blogs on marketing in a recession, based on the "Top Ten" published in AdAge. Today, you will hear the first strategy marketers need to deal with the tough economic times. This strategy deals with the need of passion and leadership to be a successful brand.

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P.S. Feel free to comment on my video blogs!

Technorati tags: marketing recession tough economy AdAge

Marketing Organization Overhaul

I believe 2007 is the year the CMO will make the reinvention of the marketing organization a top priority. It is my opinion that CMOs will push forcefully for a top-to-bottom reinvention of how to better conduct the “business of marketing.”

Sounds a little strange, right? As marketers, we spend so much time on positioning, agency relations, accountability, new media platforms, brand building – and, of course, the need to deliver short term results. But what often escapes our attention is having the right “marketing organization strategy.” How do we best leverage the assets of the marketing organization to accomplish the company’s goals?

So much of marketing’s success depends on the quality of people, the organizational structure, the integration of support functions (agencies and research) and the vision that is established by the marketing leadership function.

But how these elements all weave together in an integrated approach is a very complex and not well understood area. However increasingly, senior marketing leaders are beginning to appreciate the importance of these factors to the overhaul health and well being of the marketing function and the company.

So, where do we start? How about understanding what the CEO wants from marketing. Aligning with the CEO’s goals enables the CMO to evaluate the best type of marketing organization needed for success. In a groundbreaking study, the ANA and Booz Allen Hamilton identified different roles that marketing organizations can fulfill. A full description of each – as well as an online tool to help CMOs determine which one aligns with their unique circumstances – is available at marketingprofiler.com. But, in summary, the different roles that marketing organizations can play are:

• Growth Champions
• Consultants
• Brand builders
• Corporate priority managers
• Best practices advisors
• Service providers

The Consumer Will Be in Control in 2007

I said in my original top 10 list that, "Marketers will abandon their historic ‘command and control’ model of brand building in favor of a truly interactive dialogue with consumers.  Recognizing that consumers now have the power to control how, when and where they interact with advertisers, brand marketers will continue to reinvent their approaches, putting the consumer in the driver’s seat and unleashing a tsunami of interactive campaigns across all media forms."

This was, without a doubt, the resounding theme emanating from our ANA Annual Conference in October 2006.   In speeches by many of our presenters we heard that the power has shifted into the hands of those to whom we market our brands.   

• Our keynote speaker, AG Lafley, Chairman of the Board, President and Chief Executive, The Procter & Gamble Company, told us that “The consumer has been, is and always will be at the center of what we do. We have greater opportunity to move beyond transactions to relationships than ever before.”
• Russ Klein, President, Global Marketing, Strategy and Innovation, Burger King Corporation, spoke of “turning your brand over to the hands of consumers,” with their slogan, Have it Your Way, being their “global brand promise of empowerment.”
• Cammie Dunaway, CMO, Yahoo! described “Consumer 2.0” as someone who “has infinite choices always available on-demand.”  She urged us to “flip the funnel, identifying and embracing core influencers with targeted messages to help you as you seek to acquire the masses.”
• Jim McDowell, Managing Director, MINI USA, BMW North America, showcased the lengths that their consumers have gone to in order to make MINIs their own.  The car owners can design the paint jobs for their cars, the special features that can be added to their vehicles, and put together events designed specifically to showcase the uniqueness of their automobiles.   Being a MINI owner has become a sort of cult-like club, which engenders incredible brand loyalty.  Giving them the control to make their MINI as unique as they are has become a challenge to their consumers- and one of which they are taking full advantage. 

Consumers are telling marketers, in droves, when, where and how they want to be targeted.  They are creating their own ads, unprompted, and putting them on YouTube.  They are creating false MySpace and Friendster profiles pretending to be your products, characters and celebrities.  Heck, the consumer- or “you”- was even hailed as TIME’s Person of the Year for 2006.  They have the power to be both brands’ loudest cheerleaders and evangelists, but also their most fierce critic. 

In the April 2006 issue of ANA’s publication, The Advertiser, Stevie Benjamin, Media Director, Coors Brewing Company, wrote a case study entitled, “Connecting to the Consumer: Remembering Fundamentals But Embracing Change.”  This is exceptional advice, as we don’t need to turn our backs on the tried and true methods of marketing, rather our role as advertisers in this new environment is clear: embrace change.  Engage your consumers in as many different ways as possible, at as many different touch points as possible.  In the article, Benjamin confesses to owning four portable content devices herself – two cellphones, one Blackberry and a video iPod.  How many do you own? How many do you think your consumer does?  How can you use these many, varied devices to reach out to them?

The final step is probably the hardest.  Let the consumer respond, take their feedback and be ready, willing and able to tweak your plans accordingly.  You will see quite quickly just how open today’s consumer is to being marketed to - as long as they are a part of it.  No one “wants to be spoken to” any longer, they “want to be spoken with.”

10 Ways Marketing will be Transformed in 2007

Fundamental changes in the way marketing programs are planned, created and executed are expected in 2007.  The following list appears today in Advertising Age's "Book of Tens."  It is the top ten ways the marketing landscape is likely to be transformed next year, as forecasted by the senior leadership of the ANA.   

I will be taking each of these points and expanding on them in the months ahead right here on my blog, so stay tuned. 

1. Consumer in Control: Marketers will abandon their historic ‘command and control’ model of brand building in favor of a truly interactive dialogue with consumers.  Recognizing that consumers now have the power to control how, when and where they interact with advertisers, brand marketers will radically reinvent their approaches, putting the consumer in the driver’s seat and unleashing a tsunami of interactive campaigns across all media forms.


2. New Agenda for Agencies: Agencies will be turned on their heads, with their efforts increasingly tied to client brand performance.  Marketers will expect them to integrate strategic brand management, creativity and innovative media management – and to deliver big, game-changing ideas.


3. Hail to the Chief: The chief marketing officer will rise in stature as a C-suite player, not only serving as chief brand architect and marketing discipline integrator, but also as the enterprise’s business system innovator, organizational teacher/ motivator and, most importantly, chief revenue builder.


4. Unconventional Outreach: Marketing will become increasingly unconventional – tapping into social networking, word-of-mouth, local events and more – to break through media clutter, consumer multi-tasking and the growing cacophony of marketplace noise.  With the use of the internet, mobile and other new media forms, combined with the innovative use of traditional media, marketers will find ways to reach and engage reluctant consumers and customers.


5. Media Buying Metamorphosis: Media buying and selling will be transformed. The old, antiquated ways of doing business will give way to new, automated, highly transparent processes, as demonstrated by the growth of online media buying exchanges.


6. Let the Fighting End: Government policymakers, consumer advocacy groups and brand marketers will begin to find common ground, aligning business goals with public policy needs. Marketers will increasingly embrace their role in helping to advance national priorities in such areas as diversity, education and health – proactively addressing such societal ills as illegal drug usage, obesity, underage smoking, alcohol abuse and others.


7. Organizational Overhaul: The marketing organization will undergo a top-to-bottom reinvention, providing better professional education and skill-building, with a focus on enhancing creativity, strategic alignment and, ultimately, brand stewardship.


8. Research Renewal: Research will become the next frontier in the accountability equation. Marketers will insist that macro measurements (Nielsen, Arbitron, ABC), marketing mix modeling and brand performance research become far more relevant to and aligned with critical brand accountability goals. Marketers will be especially vocal in their desire for granular, brand-specific commercial ratings.


9. Blow up the Back Room: Archaic business systems and back office operations will be overhauled to lower costs, increase efficiencies and redeploy non-working dollars to hard-working, productive investments.


10. Continuous Marketing Reinvention: Continuous marketing reinvention will become the mantra of marketing executives and the cornerstone philosophy for successful brand building, integrated marketing communications, marketing accountability and the marketing organization.

A Round of Applause? Food For Thought

This past week, ten of the largest companies in the food and beverage industry in conjunction with the industry’s self regulatory body, the National Advertising Review Council (NARC), came together to announce a historic set of children’s advertising and marketing guidelines. The purpose of this collaboration was to find a way for the food industry to contribute to the fight against childhood obesity.

Over the past few years, public policy groups such as the Kaiser Family Foundation and the Institute of Medicine (IOM) pleaded for a comprehensive effort to combat the growing epidemic of obesity in this country. In many of their reports, they recommended changes in food industry practices. Under no obligation to do so, the industry recognized that it needed to play an important, contributory role– and proceeded to embrace that role with a wide range of positive actions such as:

• The introduction of 4,500 new and healthier products over the last three years by food and beverage companies and restaurant chains
• Significant changes to advertising, promotions and products available in schools by leading  beverage and snack food companies
• Support for a variety of public service campaigns led by The Advertising Council’s “Small Steps” effort and a recently announced program to combat obesity and promote healthy lifestyles.

Along the way, many companies began reassessing their respective marketing practices and decided to pursue a markedly different path– consistent with the wishes of policymakers and public policy groups. Of note have been the efforts of Kraft, PepsiCo and General Mills.

Beyond these concrete actions, the industry is finding ways to do even more – as exemplified by the joint announcement of NARC and the ten companies under the program called the “Children’s Food and Beverage Initiative.”  No matter how you slice it, these companies are committing to devote more than 50% of their children’s advertising to messages that communicate healthy food / beverage choices and/or healthy lifestyles. Additionally, these companies are committing to eliminate advertising from schools and to reduce practices such as product placement and third party licensing.

These are real, substantive measures that represent a materially different strategic direction than anyone in the industry would have believed possible just three years ago. Moreover, they are not easy to undertake, as anyone who has managed a business with volume, revenue and profit responsibilities can attest.

Yet, what’s been the reaction from organizations like Center for Science in the Public Interest (CSPI)?  They’ve been publicly dismissive – even rude, calling this effort “pathetic” – greatly undermining their own credibility in my opinion.

Reasonable people – important policymakers – are correctly acknowledging that the industry’s actions represent real, tangible change.

• J. Michael McGinnis, who served as chair of the Institute of Medicine’s Food Marketing Committee, called the Children’s Food and Beverage Initiative “a move in the right direction….”
• FTC Chairwoman Deborah Majoras said the Initiative “shows real promise …. “
• Senator Tom Harkin noted that the Initiative “shows the industry is headed in the right direction.”
• Senator Sam Brownback stated “I appreciate this new initiative and consider it a step in the right direction.”

Are we done yet? Of course not. There is always more to do.  And the Board of NARC and the Council of Better Business Bureaus have indicated they will continue to review the self regulatory process and push for even greater change where necessary.

But let’s take a step back every now and then, and give the food marketing industry a pat on the back for doing something really good.  We know we didn’t completely save the world this week, but we should feel proud that we heeded the call of consumers and responsible policymakers: We moved the needle decidedly in a positive direction. So I, for one, am going to stand up and give us all a much-deserved round of applause. I hope others will follow.

ANA Applauds Self-Regulation Actions of CBBB and NARC

The ANA applauds as major steps forward the announcement by the Council of Better Business Bureaus (CBBB) and the National Advertising Review Council (NARC) of two significant actions in the self-regulation of advertising to children.

CBBB and NARC announced a comprehensive revision of the Self-Regulatory Guidelines for Children’s Advertising (Guidelines), strengthening the ability of the Children’s Advertising Review Unit (CARU) to provide direction to all industry sectors. In addition, under the auspices of CBBB and NARC, ten leading food and beverage advertisers established the Children’s Food and Beverage Advertising Initiative (Initiative), designed to encourage healthy dietary choices and lifestyles by shifting the mix of advertising messages to children.

We believe that with these bold steps, marketers are augmenting their commitment to strong industry self-regulation with a new pledge of ‘public interest self-motivation.  Proactively identifying socially responsible ways of serving the public, food and beverage marketers are committing to devote large portions of their annual budgets to promoting positive social change.

In heralding the revisions to the Guidelines and the boldness of the Initiative, I want to also note other major efforts by the marketing community to respond to growing concerns about obesity in America.  For example, the Advertising Council, the industry’s public service arm, is encouraging children to make better food choices and be physically more active via a campaign launched a year ago entitled "Can Your Food Do That?” In addition, over the past three years, food marketers have introduced and promoted 4,500 new and improved low fat/low calorie offerings to the marketplace.

It is especially pleasing to see important policymakers like Sen. Tom Harkin and Federal Trade Commission Chairman Deborah Platt Majoras supporting the steps being taken by the marketing industry.  Chairman Majoras said the new initiative “shows real promise, and I hope will encourage more competition in developing and marketing healthier products that are attractive to kids and their parents.”  Senator Harkin said, “These steps show that the industry is headed in the right direction in the ongoing battle to combat childhood obesity and surging rates of diabetes in children.”  Both Chairman Majoras and Senator Harkin noted that effective enforcement of the announced actions was essential to achieve meaningful results.

Clearly there is more work to be done.  We want to see expanded participation in the Initiative to include the entire food and beverage industry, with the goal of reducing obesity in America.

It’s there in black and white…

Marketers will always have an affinity for print advertising.  It’s one of our most valuable targeting and reach-extending media. It has shelf life, and it’s extraordinary in its ability to match the advertising message with the editorial content.

However, the media landscape has evolved – and continues to evolve with lightening speed.  For print to remain competitive within our marketing mix, we offer 10 “pleas” to get the print industry to the head of the class. The following were presented at the June 16 ANA Print Advertising Forum held at the Grand Hyatt in New York City:

1. Help marketers understand print’s cause/effect contribution to generating results and building brands long-term. We need to understand more why print is the medium of choice for marketers to achieve their near term and strategic objectives.

2. Give us issue-specific circulation and cumulative data that show how an audience builds over time. Identify how that data is most specifically relevant for our brands target audience. Data is great – but it must be relevant and have targeted focused value.

3. Give us reader involvement insights that help us understand the unique connections publications have with readers. How do readers “get cozy” with the publications and show us how that affinity cascades to the advertised brands.

4. Tap into the creative energy that permeates editorial pages, and give advertisers some new, innovative, branded ways to sponsor publications. The relationship with print has to become broader, more integrated, more involved with a range of communications alternatives. We have to leverage them together to create enough “punch” to cut through the clutter and deliver an “embracing” message.

5. Reduce the long lead times to secure space and submit materials to monthly magazines. There really is no excuse for not making this happen. Publications need to examine their internal process chains and find ways to cut needless time out of their production cycle – to make it more accommodative to advertisers.

6. This one’s for agencies.  Find new, cost efficient ways for us to test print creative – and to test more frequently. With technological advances and the ability to transfer digital images of the web, there are clearly ways of expanding cost effective opportunities to understand the effectiveness of alternative print creative.

7. This one’s also for agencies. Raise the creative bar.  Put some of your senior talent on print advertising.  We want intelligent, visually exciting breakthrough print campaigns. This one has been talked about for years – and I just don’t get why print is always taking a back seat to electronic media. Recognizing the size of the investment in print vehicles, print creative must take a prominent stance in the minds of the agency creative management team

8. Either justify or end the practice – once and for all – of absurd bleed charges. Enough said. Let’s make this happen and let this old, antiquated legacy cost die a quick and painless death. They have no place in today’s marketing cost structure – particularly as the emphasis on marketing accountability has taken front and center position with CMO’s and CEO’s.

9. Either justify or end the practice of surcharges for national newspaper advertising in local editions. Fees should be based on value delivered – that’s why this doesn’t make sense.  

10. Get with the digital program!  Print media should be the leaders – not the followers – in this exciting realm. There is an expanding bundle of opportunities that will open up new vistas for everyone in the communications business – particularly those in the print arena. Do it now and make the world safe for the world of opportunity.

Marketing with Women

Last week, ANA and AXA Financial co-sponsored a day-long mini-conference titled “Marketing with Women”. Led by former agency CEO and Founder of “Just Ask a Woman”, Mary Lou Quinlan, and a cavalcade of marketing and industry executives, the day was focused on bringing attention to today’s most powerful constituency – women.

It’s rather strange that we almost take women’s focused marketing for granted. Maybe we’ve all been doing it for so long, that it’s a “given.” But it shouldn’t be. Recognizing that women make up 70-90% of all the purchase decisions in the US and control a preponderance of wealth, we need to keep women top of mind and really get into their heads – if we are going to enhance our probability for successful marketing. P&G certainly gets it. Not only do they profess “Know thy customer” – they also acknowledge that their customer is a woman. That helps, big time.

ANA’s conference highlighted so many fascinating knowledge points – too much for this writing. So let me take a crack at defining four distinct platforms that I took away from the meeting:

1. Understand women’s financial power and wide-ranging influence

By 2020, four-fifths of wealth will be in the hands of women whether personally accumulated, inherited or directly influenced. How women wield that power is critical for all marketers. Small shifts in spending patterns can have broad implications for many business categories. Those shifts can happen in reaction to product innovation or customer satisfaction. As marketers, we can never afford to be comfortable that we are doing it right – particularly in the fast paced / rapidly changing environment we live in.

2.  Listen to what women want – then get ready!

Sure, it’s very important to understand where the women consumer is today. But the real question is, where will she be tomorrow? Just when we think we have it figured out, the landscape changes and shifts – as fashion, innovation, quality and styles move rapidly. Companies like Toyota have made enormous inroads to the female consumer simply by setting up ownership groups and listening. Marketers have a captive audience in their female employees; use them as sounding boards. Let them teach you what’s hot and what’s not. Leverage their marketplace savvy to give you an honest peek under the tent to let you know where the marketplace is moving.

Then, prepare to react. Listening takes you so far. What marketers need do is to have the business systems in place to rapidly integrate these findings into tangible actions. Competitive advantages are typically “temporary” and often “fleeting”. Move quickly and responsibly to capture the moment – and the opportunity.

3.  Organize company communities to drive awareness / sensitivity / action

AXA Financial has been at this for about three years. They literally have begun creating company-wide communities that provide organized approaches to women’s marketing or generate unique findings about specific areas of women’s interests. This extraordinarily patient and rather unusual approach is paying off on AXA’s bottom line – as these individuals generate better results than typical company work groups.

These approaches have enormous implications for management structures as well. Ask yourself, is your company human resources and management structure properly crafted to optimize women performance and contributions? If not, consider the option of creating opportunities for women to facilitate their professional development and work/life balance – particularly when it comes to raising a family. Such women are incredibly valuable to your company as they carry years of experience and insight – that could be lost if they decide your company is not the place where they can successfully prosecute all of the complex demands in their rapidly changing lives.

4.  Make it all happen

Look at the processes achieved by marketers like Best Buy who have turned 25% of their stores into female friendly models and have watched these adaptations trump other stores’ performance. P&G has become increasingly creative with their female customer base as evidenced by their recent multi-platform product launch of Mr. Clean Magic Reach. 1-800 Flowers.com and Wyndham Hotels are other examples that have adapted and continue to adapt – as they have taken a far more progressive and aggressive approach to converting ideas into realities. There are some marketers out there who have smartly targeted this audience and have compassionately connected with them – a connection that has benefited everyone.

As marketers, it is important to truly understand the make up of our audience – and to set our marketing plans and initiatives into action. Let’s be sure to remember the power and influence of women as we set those wheels in motion.