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2009 presentation to the Merage School of Business.
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WHAT GREAT MARKETERS DO WELL Presentation to the Merage School of Business - University of California Irvine
David Murphy Co-President
Exec. Director – Brand Innovation
Barrie D’Rozario Murphy
MY MENTORS
THE MARKETER’S IMPERATIVE
“If you don’t like change, you’ll like irrelevance
even less.”
Tom Peters
THE MARKETER’S IMPERATIVE
“Those who live by the sword will be shot by those
who don’t.” Gary Hamel
THE MARKETER’S IMPERATIVE
“They couldn’t hit an elephant at this dist----”
The last words of
Union General John Sedgwick
WHAT CHANGE LEAVES IN ITS WAKE.
DISRUPTIVE FORCES: CONVENIENCE
DISRUPTIVE FORCES: EXPERIENCES
DISRUPTIVE FORCES: FUNCTIONALITY
DISRUPTIVE FORCES: DESIGN
DISRUPTIVE FORCES: PRICE
DISRUPTIVE FORCES: COMMUNITIES
WHAT GREAT MARKETERS DO WELL
• STRATEGY: – Brand literacy – Consumer intimacy – Relevant
differentiation – Storytelling – Innovation
• EXECUTION: – Thoughtful
interactions – Test and learn – Design – Context – Alignment – Courage
BRAND LITERACY
Brands provide a source of margin, repeat business and growth.
BRAND LITERACY
A brand is formed through an empathetic relationship with customers.
Emotionally led. Rationally justified.
BRAND LITERACY
Great brands possess a clear sense of true north.
Who they are What they value
Where they’re heading
BRAND LITERACY
Brand equity is not a static metric -- it is the relationship between
different dynamics.
Differentiation Relevance
Esteem Knowledge
Example: B.A.V. B
rand
Str
engt
h (D
iffer
entia
tionE
/ R
elev
ance
)
Brand Stature (Esteem / Knowledge)
Leadership
Niche or Unrealized Potential
Declining
New, Unfocused or Unknown Commodity or
Eroded
D_E R E K
D_E R E K
D_E R E K
D_E R E K D_E R E K
WHAT GREAT MARKETERS DO WELL
• STRATEGY: – Brand literacy – Consumer intimacy – Relevant
differentiation – Storytelling – Innovation
• EXECUTION: – Thoughtful
interactions – Test and learn – Design – Context – Alignment – Courage
CUSTOMER INTIMACY
There is no such thing as “the customer.”
Segments Needs Usage Values
CUSTOMER INTIMACY
Traditional market research often misses
the mark.
Focus groups lie. Quantitative lacks nuance.
Awareness, satisfaction, etc. are tired measures.
CUSTOMER INTIMACY
The best research yields insights, not data.
Category ideal vs. brand Personification
Values Loyalty drivers
Unarticulated needs
CUSTOMER INTIMACY
Great marketers are “commercial anthropologists.”
Observe with open mind Interact
Talk Understand
Connect the dots
Tundra launch
Extensive observational research to help design the truck. Engineers visited junk yards to learn why trucks fail; construction sites to see how workers use their trucks; saddle
shops attention to detail; NASCAR, rodeos, etc to understand the culture.
Segment ideal customer profile: “where life is tough
and the work is tougher.”
Build the truck where real trucks
are built.
Be a part of their world
Choose iconography that conveys USP.
Win the barstool debate.
USP: The 1/2 ton Truck with 3/4 ton guts
WHAT GREAT MARKETERS DO WELL
• STRATEGY: – Brand literacy – Consumer intimacy – Relevant
differentiation – Storytelling – Innovation
• EXECUTION: – Thoughtful
interactions – Test and learn – Design – Context – Alignment – Courage
RELEVANT DIFFERENTIATION
A relevant and differentiated proposition is the basis of
enduring brands.
Important, un-met needs Grounded in the truth of the product
example Desired benefit
Brand strength
Expected benefit
Brand weakness
Innovate Strategic focus
Improve Maintain
examples
Accessible design
Ladies and gentlemen
serving ladies and gentlemen.
Save 15%. Commercialize innovations
WHAT GREAT MARKETERS DO WELL
• STRATEGY: – Brand literacy – Consumer intimacy – Relevant
differentiation – Storytelling – Innovation
• EXECUTION: – Thoughtful
interactions – Test and learn – Design – Context – Alignment – Courage
STORYTELLING
Great brands tell great stories. They are an inspiring protagonist in a
compelling brand narrative.
Empathetic protagonist Equally clear about its antagonist
Sense of journey Powerful archetypes
examples An authority-defying rebel uniting a community in a
crusade against fear.
An advocate of women’s self-esteem battling
against the falsehood of media-defined beauty.
A free thinker liberating the world from beige conformity.
WHAT GREAT MARKETERS DO WELL
• STRATEGY: – Brand literacy – Consumer intimacy – Relevant
differentiation – Storytelling – Innovation
• EXECUTION: – Thoughtful
interactions – Test and learn – Design – Context – Alignment – Courage
INNOVATION
Strategic innovation should solve real, unarticulated customer needs.
Analyze customers Observe them
Be inspired by them But don’t take orders
Slavish adherence to research would have led Henry Ford to build a faster horse.
INNOVATION
Latchkey kids + Microwaves Running + Music
Unserved rental market + cheaper locations
Techno-stress + affluence Senior market + cell phones
“We” generation + web
Often a mash-up of disparate insights and technologies.
INNOVATION
They are underpinned by rigorous analytics -- a business case that
drives fresh thinking.
Demand segments Price premiums
Assess real world trade-offs Conjoint analysis
WHAT GREAT MARKETERS DO WELL
• STRATEGY: – Brand literacy – Consumer intimacy – Relevant
differentiation – Storytelling – Innovation
• EXECUTION: – Thoughtful
interactions – Test and learn – Design – Context – Alignment – Courage
THOUGHTFUL INTERACTIONS
Every interaction matters.
Product performance Customer service
Packaging Retail display
Website Distribution Advertising
WHAT GREAT MARKETERS DO WELL
• STRATEGY: – Brand literacy – Consumer intimacy – Relevant
differentiation – Storytelling – Innovation
• EXECUTION: – Thoughtful
interactions – Test and learn – Design – Context – Alignment – Courage
TEST AND LEARN
Great marketers build learning cultures.
Kaizen Celebrate learning from failure
TEST AND LEARN
Dismal launch Major success
WHAT GREAT MARKETERS DO WELL
• STRATEGY: – Brand literacy – Consumer intimacy – Relevant
differentiation – Storytelling – Innovation
• EXECUTION: – Thoughtful
interactions – Test and learn – Design – Context – Alignment – Courage
DESIGN
Design is not an image. It is a business strategy.
DESIGN
Design thinking is a critical business discipline.
Forces customer orientation. Focus on possibilities. Question everything.
Embrace restraints. Reductive thinking.
DESIGN Designed a new banking
experience.
Created the “third place”
Transformed financial products into tangible, packaged items.
Coffee bar by window to convey welcoming environment
Money bar -- not cashier.
Self-guided video presentations
Doubled customer base in one year.
WHAT GREAT MARKETERS DO WELL
• STRATEGY: – Brand literacy – Consumer intimacy – Relevant
differentiation – Storytelling – Innovation
• EXECUTION: – Thoughtful
interactions – Test and learn – Design – Context – Alignment – Courage
CONTEXT
Context is a powerful, unspoken message. Brand associations can
shape brand meaning.
Media Distribution
Alliances Customers
CONTEXT
Helpful context:
YARIS advertising on mobile phones.
CONTEXT
Damaging context:
Jaguar X-type
Jaguar at Hertz
WHAT GREAT MARKETERS DO WELL
• STRATEGY: – Brand literacy – Consumer intimacy – Relevant
differentiation – Storytelling – Innovation
• EXECUTION: – Thoughtful
interactions – Test and learn – Design – Context – Alignment – Courage
ALIGNMENT
The most effective and enduring marketing strategies are fully aligned with
the company’s value chain.
USP is not an ad strategy Grounded in a unique business model
Activities complement and reinforce Strategy connected to the balance sheet
ALIGNMENT
“We’ll pick you up.”
Enabled by lower cost structure
Driven by lower off-airport real estate
Inspired by idea to service replacement car market.
“Designed for all.”
Expressed through iconic advertising
Manifested by unique merchandising strategy
Inspired by idea to find sweet spot between Walmart and Macys.
WHAT GREAT MARKETERS DO WELL
• STRATEGY: – Brand literacy – Consumer intimacy – Relevant
differentiation – Storytelling – Innovation
• EXECUTION: – Thoughtful
interactions – Test and learn – Design – Context – Alignment – Courage
COURAGE
Do you have the courage?
To follow customers into territories that are not obvious?
To provoke the system -- challenge your management?
To weather public scrutiny at all times?
To be different?
