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Matthew Palmer, Deloitte Consulting

HEADLINE SPONSOR. ASSOCIATE SPONSORS. Marketing Effectiveness. Matthew Palmer, Deloitte Consulting. MARKETING AND MEDIA PARTNERS . Matthew Palmer. Head of Deloitte’s Financial Services Marketing practice Leads Deloitte’s offerings on brand, marketing cost reduction and operating models

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Matthew Palmer, Deloitte Consulting

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  1. HEADLINE SPONSOR ASSOCIATE SPONSORS Marketing Effectiveness Matthew Palmer, Deloitte Consulting MARKETING AND MEDIA PARTNERS

  2. Matthew Palmer • Head of Deloitte’s Financial Services Marketing practice • Leads Deloitte’s offerings on brand, marketing cost reduction and operating models • Background in consulting and advertising • Typical projects include: • Corporate transformation • Brand valuation and optimisation • Sales and marketing effectiveness • Channel strategy • Operating model improvement • Clients include: • Lloyds Banking Group, HSBC, Aviva, Standard Chartered Bank • IBM, Microsoft, Sony, BT, Vodafone, T-mobile, Siebel, SAP • Diageo, Pernod Ricard, Habitat, Royal Mail, Centrica, VOSA

  3. What will we cover today? • What has changed and what has stayed the same post recession • How to get your marketing budget approved - and the executive board on your side • How to increase marketing ROI • How to cut costs without slashing performance

  4. Which trends have changed, which have stayed the same Marked change in trend Continuation of trend • Increasing power of individuals on corporate buying decisions (especially in FS and technology) • Longer sales cycles • Wider DMU • Exploitation of social media and opinion management • Getting marketing’s voice heard • Focus on lead quality and management • Getting sales and marketing working together better • Cost cutting and effectiveness • Accountability and measurement • Channel and partner management • Differentiating offerings • Making global work

  5. We will focus on three main areas Marked change in trend Continuation of trend • Increasing power of individuals on corporate buying decisions (especially in FS and technology) • Longer sales cycles • Wider DMU • Exploitation of social media and opinion management • Getting marketing’s voice heard • Focus on lead quality and management • Getting sales and marketing working together better • Cost cutting and effectiveness • Accountability and measurement • Channel and partner management • Differentiating offerings • Making global work

  6. Getting marketing’s voice heard In order to help the organisation attain its goals Marketing needs to be able to influence at board level The challenge facing marketers is making sure the rest of the business understands the value they create. Our research found that C-level execs do not have a common understanding of marketing and its role in the company

  7. The CMO’s view

  8. The CFO’s view

  9. The CEO’s view

  10. 81% of CEOs identified marketing as a key driver of growth 16% of Board level discussions are about marketing according to CMOs. CEOs believe that the figure is nearlydouble at 33% 1in3 CFOs did not believe that marketing is crucial in determining strategy 84% of CEOs identified marketing as being crucial to devising strategy Board level views of marketing are mixed

  11. Impact of marketing’s lack of influence Seen as a cost Limited voice Not involved in key decisions Constant pressure to justify expenditure and reduce costs Budgets frequently rejected or slashed Not seen as ‘Commercial’ Link between marketing metrics and company performance not understood

  12. Marketing gets its budget approved when it: • Actively engages with Finance and other functions throughout the year • Uses easy to understand metrics to show outcomes of past programmes and how these relate to proposed activities • Can explain where and how money is spent • Uses zero based budgeting linked to specific programmes and outcomes • Prioritises its own spend with stretch and retrenchment options • Presents options to stop some activities to pay for others • Clearly links programme outcomes to corporate targets (eg revenue growth, EBITDA, free cash flow)

  13. CMOs recognise this as an issue and are trying to improve measurement and accountability What are your top three marketing issues? CMOs acknowledge that accountable and effectiveness are important Analysts predict that marketing accountability and effectiveness will become increasingly important 44% 39% 34% 28% 24%

  14. How to cut costs while increasing revenue and profits

  15. Cost cutting

  16. Some common cost cutting mistakes • Cutting costs by the same amount across the board • Choosing an arbitrary percentage cut • Trying to do everything with less money • Failure to plan for budget challenges like ‘tell me what you could do with 20% less money”

  17. So what works? • Improve your focus: concentrate on the areas that add most to your business • Only pay for what you need • Make sure you get what you pay for • Instil a real culture of fact based decision making, and act on it • Become more accountable • Improve relationships with the rest of the business, especially finance

  18. Improve focus Be clear how your programmes, products and target customers contribute to corporate objectives

  19. Get what you pay for, only pay for what you need • 3rd party suppliers services and SLAs • Don’t over-specify or gold plate • Standardise where heterogeneity doesn’t pay • Many suppliers are trying to grab share coming out of the downturn: use this to negotiate • Demonstrate your control over marketing spend to the CFO and finance community

  20. Make decisions based on facts, become more accountable • Understand how your money is being spent • Audit of marketing spend based on effectiveness and value • Test, analyse, learn and implement • So you can maximise returns on your marketing spend • Use the knowledge to approach the leadership team to discuss opportunities for cost reduction or growth • Involve finance, commercial and other parts of the business to create joint programmes

  21. Increase revenue and profits

  22. Most effective changes to boost revenue and profits are often • Improve lead management • Quality • Fix leaky buckets • Recycle leads • Focus on winning brands, products and segments • Free up local offices to be entrepreneurial within the overall company strategy • Introduce formal programmes to iudentify what works in your organisation and roll it out

  23. Further information Marketing in 3D Report Read the summary of key findings from our latest research Structural Cost Cutting in Marketing Read the summary of key findings from our latest research Contact Matthew Palmer Tel: +44 (0) 207 007 7293 Mob: +44 (0) 07764 939920 Email: mapalmer@deloitte.co.uk Marketing in 3D Benchmark Take part in our new online Marketing in 3D Benchmark survey www.deloitte.co.uk/marketing

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