We opened The Marketing Director’s Handbook by referring to the Bob Dylan classic ‘The Times They Are A-Changing’.
Change is the lifeblood of marketing
Understanding it, and adapting to it, is Darwinian theory applied to marketing.
When a new era begins, it manifests as a hybrid of the past and the future. Remember how LPs gave way to CDs and now the likes of Spotify; how celluloid gave way to tv, then Betamax, VHS, satellite, DVD, You Tube, Netflix et al. Sometimes it is difficult to see the wood for the trees during a period of change. Sometimes there is also resistance to change or an inability to embrace it. There are always leaders and followers, and also those that judge incorrectly. As a result, new opportunities often pass by some businesses leaving them shadows of their former selves. Equally some adapt and become more successful.
Digital marketing is no longer for niche marketing promotion
While there remain an enormous number of digital disciplines, and specialists occupying a variety of niches, the specialists are increasingly becoming mainstream. Joining together to provide a greater range of services, being absorbed into larger groups, or broadening their focus. In the same way, digital has merged with traditional marketing to create new value propositions, new brands, new business models and also new distribution and marketing promotion channels.
Examples are everywhere. From ComparetheMarket.com or ComparetheMeerkat.com, to Rightmove, Uber to new Government services, to ALS’s ‘Ice Bucket Challenge’, Always’ ‘Like a Girl’ and Sport England’s ‘This Girl Can’ media campaigns. So what to do?
Put the customer first.
In the late 1990s Internet boom, many businesses went bust. Back then I recall a well-known client, who spent the best part of a million on a new website and wanted evidence they spent their money wisely – with a budget equal to just 2 customer groups. It is folly to push technology when there is no evidence of a need. It is better to understand customer’s needs, attitudes as this is a precursor to meeting them successfully.
Make brands work in all digital channels
Digital is now a mainstream, a creative marketing promotion and distribution vehicle, on a par with the 30 second Coronation Street slot and Tesco gondola end. So uncover insights to find great idea and then use all digital channels to generate awareness and demand. P&G’s Always’ ‘Like a Girl’ video has been viewed over 85m times and rising. It echoes yet rebuffs a stereotype, it also connects emotionally and the pay-off is feel-good. It gets a message across at much lower cost than a traditional tv advertising campaign. This therefore explains why Marc. S. Prichard, P&G Global Brand Officer, says the company is quickly shifting to a digital-first approach to building brands.
Exploit multiple channels and new behaviours to win customers
We live in an always on world. The days of shot-gun marketing are gone, so it isn’t enough to plan and launch campaigns. Marketers need to be more like gamekeepers. Setting traps, baiting, luring and nurturing (less than wild) life 24-7. Understanding where customers are, when, how they behave, what is required to engage and build relationships. The ALS Ice Bucket Challenge was a success because it fulfilled participants’ desire to socialise (reach out and connect with mates), look good (even if the experience was a little self-deprecating), and entertain. ALS understood the criteria for social sharing, and in so doing found an idea to promote its good cause. And probably in that order.
Plan budgets and invest to achieve outcomes
At a recent Chartered Institute of Marketing event on how CMOs should influence CFOs, we asked for a show of hands on how delegates planned their budgets. Most take what they are given, or start with last year’s budget and increase it in line with expected sales. Less than 5% calculate the impacts and cost of impacts to meet the required sales. A post-digital marketer uses the ‘objective and task’ method and knows the relative promotion costs per sale across all media. He or she doesn’t view the digital budget in isolation. This also requires the customer’s journey, the media consumed, and enablers and barriers to demand at each stage to be understood. Only then can media be planned to intervene, at the right time, with the right message, and right impacts to change behaviour.
Maximise promotion bangs for bucks
They are sceptical of the relationship between impacts, clicks and sales. In the world of Google, as well as tv, there is lots of waste. They know what they don’t know. They know they don’t know who clicked and why. Understanding cause and effect relationships is difficult but they know it must be done. They look before they leap and test, learn and then replan promotion activities. They invest in small-scale tests before going large. They use econometrics to clarify causes and effects. They may take a risk on a new medium but it is a calculated risk.
Integrate all marketers in the business
While digital is code, and the realm of coders, coders are no longer just hunched over a computer in a back office. Digital should not be separate from, or different to, ‘business as usual’. They should thus come out of closet; and rightfully understand and connect with customers in order to influence the business.
1. In this post-digital age, digital marketing is business marketing. As business leaders, CEOs and CMOs define the entire business strategy, digital is just one important element. Though not a replacement for the Marketing Ps, such as marketing promotion, and product etc. but just another way of delivering all of the P’s.
2. CMOs and CIOs should work together – and with the customer as the arbiter of what’s right.
3. Focus on optimising products, creating new products, choosing the right distribution and promotion channels as well as getting your message across.
4. Stay truthful and authentic. The digital world is subject to more scrutiny, also less forgiving and word travels very fast.
5. Integrate and help all learn how the wider business works. This will both develop your people, and provide future successors to develop your business.