Monthly Archive for June, 2006

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ANA/Booz Allen Hamilton Marketing Study part II

Here is how the study breaks down the different types of marketing departments:

1 | Marketing Masters (38% of respondents)
2 | Senior Counselors (17%)
3 | Service Providers (15%)
4 | Brand Builders (12%)
5 | Best Practice Advisors (9%)
6 | Growth Champions (9%)

1 | Marketing Masters “… enjoy the authority to coordinate with other major business functions. They do not, however, make strategic decisions and seldom lead new-business development.”

2 | Senior Counselors assist in guiding “… the CEO on marketing strategy and also serve as primary advisors on marketing strategy for individual businesses.” Rarely will these marketers lead product innovation initiatives, but they are responsible for leading major advertising and/or promotional campaigns.

3 | Service Providers are the coordinators of “… advertising, promotion and public relations at the request of the company’s brand and product teams.”

4 | Brand Builders provide “… marketing services like communications strategy, creative output and campaign execution of key brands, but their leadership role and decision rights on strategy and investment are all but negligible.”

5 | Best Practice Advisors work directly with “… individual business units to maximize marketing effectiveness and efficiency” by gathering and disseminating best practices within the company as it relates to advertising, promotion, and public relations.

6 | Growth Champions lead their company’s efforts in product innovation and in new business development. They also are heavily involved in decisions pertaining to new-market penetration and strategic investments. (btw, this is only category that truly drives revenue and profitablity – nothing says promotion and job security like top line growth!)

Which type do you work for? More importantly, what are you actively doing to move your department up the food chain by increasing the role you play in business development and NPD?

Measuring impact of design on business

A couple of recent posts on measurement caught my attention (DMI event) and (UK DesignCouncil study).

It seems that companies that put an emphasis on design are elevating above commodity status. That makes sense. I know a lot of talk has gone into iPods. But for years now there have been smaller, cheaper, and arguably better MP3 players on the market; but Apple is by far the 800lb gorilla in the marketplace.

Design is about more than the look & feel or colors of a product. It’s a purposeful thought process that goes into making every aspect of the user experience better. It’s VW understanding that silicon-dampened grab handles are nicer than the ones that just slap back against the headliner. It’s Rally’s understanding that two drive-throughs are better than one. It’s Nike. It’s the Aeron mesh chair. It’s Starbucks versus Seattle’s Best. It’s Target versus K-Mart.

Companies that integrate design thinking are more profitable because it usually costs the same to manufacture a designed widget versus a not. Customers want to love their purchases. Good design does that. It starts conversations. It creates profit – and that is infinitely measurable.

Top 10 stock photo clichés

From forty media

1. The Handshake of Synergy: You’ve made the sale and closed the deal. They can’t back out now—you shook on it!

2. The Flirty Customer Service Gal: Operators are standing by to take your call…and your heart.

See the rest…

So please, stay away from these worn out clichés. First off, no one looks like these people. How do you expect your audience to identify with you when you only use 25 year old supermodels in your advertising? Your customers are sick of it. It just shows how little you understand your customers.

Not that you have to spend mega-bucks on a custom photo-shoot; just put a little more thought and consideration into creating your marketing materials. As humans, we’re trained to only notice things that are different – things that stand out. If you put this level of effort into creating your collateral, you disrespect your customers and automatically lump yourself with every other business that thinks of marketing as an afterthought. Those businesses tend to focus more on their own products and services than how those products benefit their customers. No one cares about your product. People only care about meeting their needs and desires.

CMO’s Increasingly Take a Leadership Role

New ANA/Booz Allen Hamilton Study talks about companies that elevate the status and strategic nature of their marketing teams are 20% more likely to experience superior revenue growth and profitability.

The world-class marketing teams stopped being relegated to tradeshows and direct mail campaigns a while back. If you want a say in the future of your company; leverage the direct access to customers and products you’re given. Leverage your in-depth knowledge of your product/services, the competition, and your customer’s preferences & attitudes. That insight should be the foundation of your strat plan.

Brand-driven companies know that marketing is at the crux of future innovation. Engineering for engineering sake isn’t going to give you explosive growth.

Creative Process Explained

I thought this was a great explanation of the creative process. Most clients tend to want to dig right into design; but I like how this graphic shows that good design results from a lot of hard work and thought up front. I also like the importance of calling out “concept/prototype”. This is a critical step that I’ve seen agencies skip. You can save a lot of headache (read billable time) and effort by getting your prototypes approved before beginning the design phase. Clients will appreciate the fact that you are seeking directional approval before spending a lot of time.

Moral of the story: as a team (client & agency) determine why you’re doing this project, why now, what the audience will respond to, gain clarity of direction, test, then AND ONLY THEN move into the design phase of the project.

Indifference

From metacool

“The only real enemy of design is indifference.”
- Matt Kahn

It takes roughly the same amount of effort to great good design as it does bad design. With the exception of a few corporations, most are surprisingly indifferent about the design of their product and/or collateral. The prevailing thought is that it’s the job of the industrial design group or the marketing dept to figure out.

To be honest, I’m not sure why more executives do not appreciate good design in business. These same people understand the basics of fashion and typically know a great looking shoe or tie compared to a not-so-great looking one.

I think the creative community has built this reputation of secrecy around the creative process that needs to be abolished. On the whole, most people bring good ideas to the table – doesn’t matter their education, their title, or their background. Obviously these things factor in; but it’s naive to think that good ideas only come from creatives. Working together is the key. Bring the creatives and executives together to solve the business issue. Don’t just throw it over the fence.

Good design can make a difference. There are thousands of examples (Target, Apple, Starbucks, Sony, Audi, Dyson); the list goes on and on. As more and more markets commoditize, design has the power to elevate. It is a major factor in the overall brand experience. Customers can tell the difference and as more customers take greater control over their viewing and purchasing habits, indifferent businesses will feel it in the P&L.