Showing posts with label Innovation. Show all posts
Showing posts with label Innovation. Show all posts

Wednesday, April 25, 2012

Why the "CMO extinction" theme is a tired climate change cliché:


This Fast Company published blog is once again the same old song: that one being taunted by all sorts of new age marketing experts, trying so hard to look & sound oh so avant-garde by displaying a  breakthrough headline to sell their next episode:  as for those who invented the Internet or decided to dress cool by blaming global warming on modern industrialization for the past 50 years rather than considering the bigger picture, the data & the documented global temperature cycles that existed well before human CO2 contribution, the CMO’s extinction is an easy-sell theme, a popular urban legend in tabloid marketing circles…

I find that not only the reasons given in this paper for the theory of extinction of the CMO are distorted, redundant & incomplete but that, on the contrary, we are indeed living a defining time of evolutionary stage for marketers that should eventually see us regain more leadership in the C suite of more & more corporations; here’s why:

1)        If it is true that "....budgets are shifting..."  marketers have however been from the start at the forefront of the development of new  analytics , budget allocation tools & metrics of success beyond overall corporate performance & top line results; from marketing & media statistical modeling, new digital engagement metrics or web analytics, CRM data mining and customer segmentation or Customer Dialogue Management platforms are all tools & know how that marketers have created & mastered in adapting to a more complex landscape of consumers & channels; that means that the evaluation, dashboards & resource allocation process are more & more strategically driven by a more informed & analytics savy marketer rather than I.T transformation implementers or sales forces: marketers are the architects & designers of demand generation or systems that power the customer strategy that other functional teams help implement.

2)        If "...Social media exacerbates one thing..." it is the call for the real customer centricity order. The cacophony is an old (pre-digital) challenge that marketers already learned to address through real multichannel, integrated marketing strategies .If the consumer is now more empowered and an active co-writer of the brand story, the CMO always had, by sitting at the intersection of all Medium, to inspire, channel & harness that constant dialogue/relationship between the brand & its audience segments: has anyone seen customer feed-back, consumer research /opinions, ad testing  or CRM data being gathered & interpreted by other talents than those who are supposed to engage, respond & adapt to the markets every day…? Even call centers or Retail employees get their cue from marketing when it comes to the script & directions behind customer dialogue management or revenue optimization…
3)        "...The democratized web spawns confusion and trust issues…" and it’s precisely because everybody claims to be an expert in marketing that a C-suite relies on the CMO to sort out business intelligence , make determinations or present informed arbitrations; the P.R. crisis doesn’t dictate marketing, the sales people are way to entrenched into field management & too partial to analysis of success or failure and  web analytics still  tend to give a bias section view of the full customer base & patterns…Hundreds of TJMax "Maxinistas" or American idol contestants don’t replace a few dozens prominent rocks stars or gifted  fashion designers who actually know how to abosrb market trends whilst also monetizing them so effectively. It’s funny how the ultimate democracy or twit doesn’t automatically make everybody the best natural born communicator , buzz expert or leader !

4)        "...Pressure to demonstrate a return on investment with marketing has reached a fever pitch..." But it is hardly a new phenomenon. I have worked with most top CMOs in past 10 years  who in the mid-90’s started , under  the pressure to demonstrate their accountability in the C-suite, to hire an array  of powerful vendors & experts to help them make the case for their marketing MROI, budget sizing & allocation: from the management consulting or I.T. strategists , the top digital agencies to media marketing mix modeling divisions, CRM software Business Intelligence modules or Central Decisoning, they all cater their expertise to the CMO and feed his own decision making & dashboards: if there certainly  is pressure and stronger accountability , there is no cluelessness nor shortage of new science available; find me a single sales officer or CIO who can speak to MROI analytics & interpret the results of market research in front of a board !


5)        "...Lines of responsibility across marketing and sales are disintegrating..": again nothing new here: BtB or Btc marketers have long worked with sales force, customer services , call centers or customer facing agents…Marketing has always been all about top line revenue growth and extracting more value from every customer. I would argue that there is a danger in the GE solutions example as far as the artificial dichotomy between upstream and downstream: as any good marketer knows, product development is a key element of demand generation & can be informed & refined by downstream practices & experience. This is where integration stemming from a sharp understanding of consumer’s evolving needs & expectations can drive the product development or inspire go-to-market strategies: that what marketing genius Steve Jobs so beautifully embodied as the ultimate integrated marketer from corporate vision to technical execution, brand building or Retail strategy; I say the new generation of CMO is the Stve Jobs type, the best customer reader & advocate, the one who understand all pieces of the complex puzzle , dynamics & dimensions of what a brand is at heart and can nurture through a in-tune relationship with consumers & markets.

Now, of course, they are some of us who are not as talented as others or simply unable to adapt, wherever they sit, in marketing or somewhere else in the organization. Old media types , tired sales man or new digital wunderkinds are not necessarily cut for the greatest job of marketing leadership…I laugh at that underlying accepted cliche that puts any social media blogger or web designer at the pinnacle of marketing instinct & vision.

All in all, it is well known that the CMO role has been constantly reshaped & had to re-invent itself for the past 15 years with an incredible acceleration since digital reached a critical mass,radically changing the center of gravity of the relationship between consumers, channels & brands.The good marketers is te the one who understands & embodyies best the essence of the brand , both from the corporate and consumer’s perspective.He is the only one  who possesses the necessary subtle balance between art & science, creative, analytics & optimum mix across all available touchpoints, both strategically & operationally. They have their feet in the market, incredible sense of smell & hearing for the “air du temps” , have developed wings & acute long term vision to foresee future  markets shift... and the memory of an elephant when it comes to the roots of the brand.

The CMO role might be redefined or rebranded Chief Brand Officer, Chief Experience Officer or Chief Customer Officers etc… but the fact of the matter is that while the contours & areas of responsibility evolve constantly under more & more pressure or scrutiny from the board, they are the most multi-skilled  & adaptable of species and the customer centricity agenda that they naturally lead has become more than ever before a central strategy to full scale corporate transformation that many CEO’s are now embracing.

Tuesday, March 27, 2012

The nature of True Innovation for a brand

http://www.nydailynews.com/life-style/eats/taco-bell-introduces-doritos-taco-shell-article-1.1035078?localLinksEnabled=false

As Taco Bell is launching its Doritos Taco shell, I was reflecting on how the importance of true Innovation is essential to the equity & sustainability of a brand. They are a few notable dimensions to Innovation that this initiative is bringing to life:

Ø  Dimension 1: it makes perfect sense for the brands involved: it’s a perfect alliance in terms of product but also in terms of brand psyche: by touching on the Taco shell, a founding block of Mexican food, and transforming its blend, basic function into being part of the taste of a menu, it actually renews the core of the value proposition around taste & experience: it’s much more than packaging, it’s much more than Image; it puts the innovation in the heart of the Taco Bell around taste, indulgence beyond the fundamental of value for price or other commodity features that are hygiene factors  but not so differentiating ; it also brings the Doritos snack into a wider food experience, it gives it a more versatile dimension than chips with a beer.
Ø  Dimension 2: it makes perfect sense as a call to action: while it focuses on a product centered value proposition, it actually boils down to a strong “come try it” proposition and stands to generate traffic to the point of sale…and this is exactly what ANY innovation should trigger: it’s the sampling, the real life experience , as Apple so neatly did it with the “come play freely with the device” experience in the Apple store...Any Innovation that doesn’t carry that is a failure and this goes as much for consumers as for the company’s staff for it should galvanize goodwill around a new, clearly outlined & exciting narrative
Ø  Dimension 3: it makes sense from a supply chain /corporate synergy perspective: the brands who used to be both part of the same Pepsico company -before Pepsi spun Taco Bell to Yum brands- shared a natural common ground industry, marketing & product innovation culture: re-igniting this kind of mutually natural & profitable synergy is what breeds a Customer centric culture of Innovation beyond vertically integrated frameworks…

Now, from this rich example, I was reflecting on REAL Innovation: either groundbreaking product Innovation (Revolutions ?) such as the Ipad, the Google search engine or Tivo...or new marketing concepts such as Starbucks coffee, Dyson vacuum cleaners, at-home teeth whitening strips or Activia yogurts… Innovation these days has been so diluted by marketers, from the latest moisturizing lipstick or anti aging cream”Innovation” that’s been on the market for years to the “new” Tide that’s only as new as the primary color of the box.Even if it doesn’t mean that sometimes the genius of marketing Innovation can’t reside mostly in the go-to- market originality: that’s what Old Spice's “the man your man could smell like”, the  Jay-Z ‘s “Decoded” book launch or Burger King’s subservient chicken campaigns did so well…

Real Innovation  requires 3 essential ingredients :Talent , Cult (ure?)  of Innovation ,  Disruption.
First, they are the creative, idea-driven and entrepreneurial profiles that you need to have (find) to achieve true Innovation: a Johnatan Ive (Apple) , a Facebook team of students, a poised Martha Stewart, a media darling Tom Ford (Gucci) or a celebrity pet Armani , an unapologetic Jack Welsh or ubiquitous Philippe Stark....Of course, you have to recognize their next generation version in your everyday staff : there are others out there as these where when they were still undisicovered  !
Then, there’s the ecosystem that you create for these talents to be nurtured & drive the corporate (not only R&D) agenda: that’s where the genius of Steve Jobs came into play when as a CEO , he became the demanding, relentless dynamo of Innovation. This eco system doesn’t have to be confortable nor all lovey dovey, it’s not about the number of tennis courts or juice bars available on the HQ campus: it is about the focus on business value & results, customer centric attractiveness, profitability, constant self-improvement, non compromising excellence delivery in execution…
And then , there is the questioning (deconstructing ?) of the way you approach your usual business model every day: questioning the status quo from a market standpoint rather than the traditional paths in which things have been done or seen: in marketing, that chiefly means starting from a needs-based, consumer centric market research and segmentation, a wide ranging Customer Lifetime Value , cross-selling , beyond -category strategic planning..; it is unfortunate that it is also where many CEOs task their headhunter with finding the guy from competition who has marketed the same exact business model for years and is already formatted into it…a problem starting with the right culture profile of leasdership  & talent !

Lastly, Innovation is all about the magic “tour de main” or alchemy in which you prepare & combine these ingredients Keeping in mind like good chefs do, that as food is more about social & sensorial experience than just filling stomachs, Innovation is not an end in itself, it is the best way for a business to connect with its consumers , to stay RELEVANT: and relevance IS here the KEY objective for a CEO or CMO to keep top of mind throughout strategy AND project execution rather than Go-to-Market processes.
Then the good side effects of Innovation as a means is that it also naturally feeds many essential business assets such as brand brand equity, customer awareness & preference, transformational attitude and attracts the best talents in the industry…
I have learned  while working across a wide range of companies of different sizes & industries, that INNOVATION is a quality derived from a spirit, a CULTURE: setting that culture, infusing it through all employees, customer facing, sales people, I.T., design, manufacturing, control teams etc.., is what allows a company to grow innovation: that’s what Steve Jobs in his own autocratic/rough yet effective style was so good at; that’s what Jack Welch unapologetically accomplished for GE in the 90’s , Sir Branson infused so well into his ever stretching Virgin brand portfolio or what Samsung is now doing in their own Korean way. Nothing, none of the best brightest minds without that spirit, encouraged & organized INNOVATION culture can bring innovation into corporate life & success.Innovation is NOT a POPULARITY contest.

So ask yourself as a manager, employee or CEO not what you can do for Innovation not what innovation can do for you…Start contributing to nurturing , safeguarding the mind set together with the best people around the ideation of Innovation and then it’s tedious but necessary transformation process from nurturing curiosity & questioning to capturing suggestions and experimental  project or prototype task force…and don’t leave it only to R&D but have it championed by a business oriented officer who can has clout in the C-Suite…And that person should be the CMO –other name for Champion Innovation Officer J