Designing a - MMA

Rodriguez Vila, Bharadwaj, Morgan, Mitra, and Schelstraete (2020)

Designing a Modern Marketing Organization

Omar Rodriguez Vila, PhD

Sundar Bharadwaj, PhD

Neil A. Morgan, PhD

Shubu Mitra

Peter Schelstraete

Research Partner:

Picture by: Todd-McLellan

Rodriguez Vila, Bharadwaj, Morgan, Mitra, and Schelstraete (2020) 3

Storytelling

Social Media &

Conversation

Management

Direct-To-Customer

Service and Delivery

CRM & Loyalty

ManagementLocation, Trajectory &

Contextualization

Cx DesignJourney Monitoring

and Management

Product Quality

Public

Relations

Content

Management

Buyer/User/

Guest

Insights

Integrated Data

Management

Talent Management

Marketing Accounting

Standards

Agile Management

Martech

Marketing

Ventures

Dynamic Segmentation and

Targeting

Portfolio Strategy

& Innovation

Data privacy and security

management

Influencer

Management

Sponsorship

ManagementProgrammatic

Media Management

Data Science

and Analytics

Social Purpose

Performance

Marketing

Brand Management

Customer-Centric

Culture

Ux Design

SEM & SEO

Monetization

Strategy

Ux Design

Attribution

Customer

Communities

Brand Activism

Design Thinking

Marketing

Operations

Diversity, Equity and

InclusionStorymaking

Portfolio

Management


Structure Challenge

Skills Challenge

Change Challenge


Content Team Media TeamPerformance Marketing

Martech Team Social Media Team



Observed Tensions

7

Marketing DividedBrand and Performance marketer “camps” within firm don’t get along…view the world very differently

We have loads of data, now what? The challenge of putting the customer at the center of the business

Tech is eating strategyNewly available data and attribution leads to emphasis on value capture over creation

Which bell and which whistle?How to select the type of innovation that matters for a specific brand and business?

If I can measure it, it may be fraudThe challenge of data integrity and collaborations in the digital space

We are adding, not changingIt is less about what to start vs. stop. It is about doing more with less

What should be in-house?With all these new things we are doing, which should we in-source vs. outsource…and when?

I thought I knew my role Blurring of lines and need for ever more collaboration requires full redesign


Designing a Modern Marketing Organization

8

What capabilities?

The people, process, and tech areas that marketing needs to be great at

leading or supporting in order to deliver on its mission.

What structure, skills, and change? The formalization of functional areas, reporting lines, and allocation of roles,

responsibilities, and decision rights.

What mission?

The value proposition of marketing defined by the goals it will serve and the

accountabilities it will own for the enterprise.


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A s s e s s Y o u r F i tS t e p 3

D e s i g n Y o u r C h a n g e


Marketing Value Proposition

Drive growth by matching

offerings to individual customer

needs and context in ways that

facilitate transactions.

Drive growth by increasing

convenience and enjoyment

across the customer journey.

Drive growth by deepening and

expanding the meaning, community,

and purpose around an offering.

ExperienceValue

(Journey)

EngagementValue

(Meaning)

ExchangeValue

(Transaction)



ExperienceValue

(Journey)

EngagementValue

(Meaning)

ExchangeValue

(Transaction)



ExperienceValue

(Journey)

EngagementValue

(Meaning)

ExchangeValue

(Transaction)



ExperienceValue

(Journey)

EngagementValue

(Meaning)

ExchangeValue

(Transaction)


Personalization

Convenience

Meaning

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Convenience

Meaning

Personalization

Average Marginal Utility by Age

TECHNOLOGY & SOCIOLOGY DRIVEN BENEFITS

Example: Personalized Content | Personalized Products

Example: Mobile Ordering | Delivery Services

Example: Societal Benefits| Customer Communities

Customer Value Equation Research (June 2020)10 Industry Sectors / n=46,230 consumer x choice combinations


Average Marginal Utility by Age and Industry Sector

Convenience

Meaning

Personalization

Age

Customer Value Equation Research (June 2020)10 Industry Sectors / n=46,230 consumer x choice combinations


Different Strategies to Create Customer Demand

Service Focused

Exchange

Experience

Engagement

Branded Platforms

Exchange

Experience

Engagement

Experience Sellers

Exchange

Experience

Engagement

Transaction Centered

Exchange

Experience

Engagement

Branded Sellers

Exchange

Experience

Engagement


Different Transformation Journeys

17

Three-Stack

Marketing

Organizations

Exchange

Experience

Engagement

Exchange

Experience

Engagement

The Legacy Firm Path

Exchange

Experience

Engagement

Exchange

Experience

Engagement

The Digital Native Path

Exchange

Experience

Engagement


Drive growth by matching

offerings to individual customer

needs and context in ways that

facilitate transactions.

Drive growth by increasing

convenience and enjoyment

across the customer journey.

Drive growth by deepening and

expanding the meaning, community,

and purpose around an offering.

Guide the discovery of new growth via

branded platforms, revenue streaming, and

marketing model innovation.

Facilitate Stronger and More Flexible

Organizational Links to Nurture Speed,

Synergies, and Drive.

Build and Leverage Information Loops to

Increase Causal Understanding and

Expand Resource Optimization


OperatingValue (Connection)

ExperienceValue

(Journey)

StrategicValue(Direction)

KnowledgeValue(Intelligence)

EngagementValue

(Meaning)

ExchangeValue

(Transaction)




Indirect Direct

Slow Fast

Vertical Horizontal

Outsource Insource

Operating Asymmetry

Brand to Sell Sell to Brand

Market Data Customer Data


OPERATINGVALUE

EXPERIENCEVALUE

STRATEGICVALUE

KNOWLEDGEVALUE

ENGAGEMENTVALUE

EXCHANGEVALUE

Marketing Value Areas

MODERN MARKETING CAPABILITY MAP


CUSTOMER VALUE

FIRMVALUE


Prediction

Personalization

Conversion

Product/Service Experience

Journey Orchestration

ValueAugmentation

Stories

Connections

Community and

Purpose

Growth Paths

Market & Customer Intelligence

Platforms

Monetization

Talent Management

Organizational Links

ExecutionTechnology

Data Creation & Management

Marketing Analytics

Marketing Value Areas

OperatingValue

ExperienceValue

StrategicValue

KnowledgeValue

EngagementValue

ExchangeValue





TECHNOLOGY COMPANYCurrent Capability Configuration

Desired Marketing Value Proposition



CPG COMPANY


23 November 2020This material is confidential is not for distribution.

29

Marketing Capability FitTotal Marketing Capability Fit Assessment

= capability area.

Priorities for Investment and

Development

Potential for Reduction or Reallocation

Capabilities near desired level of development. No action needed.


23 November 2020This material is confidential is not for distribution.

30

Fit Level

67%

Marketing Capability FitTotal Marketing Capability Fit Assessment

= capability area.

Priorities for Investment and

Development

Potential for Reduction or Reallocation

Capabilities near desired level of development. No action needed.


Capability Fit and Growth

31

Low High

Benchmarks based on Marcaps research across 348 companies.


Marketing

Mission

What new capabilities to build?

What existing capabilities to upgrade

or downgrade?

What individual competencies/skills to

train?

What new talent/partners are needed?

What to insource vs. outsource?

What is the role of marketing?

(Lead, support, let go)


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A s s e s s t h e F i tS t e p 3

D e s i g n t h e C h a n g e

How to Design a Modern Marketing Organization

Harvard Business ReviewNov-Dec 2020 Edition

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Designing a - MMA