Online Newsletter

OCTOBER / NOVEMBER 2002

edition14

From Davis & Associates (Strategic Marketing)
www.davismarketing.com.au

Welcome to our newsletter for October - November 2002.

Please forward this newsletter on to colleagues and friends who may also find it of interest.

As always, we want to ensure your continued interest in receiving our newsletter ­ so if you wish to unsubscribe, please email us at: info@davismarketing.com.au

Our first newsletter for 2003, will feature the results of our second annual "survey" amongst senior professional services marketers and executives on which firms and individuals stood out in 2002. It is what we call our Industry Pulse

Best Regards

Dianne Davis
Principal and Managing Director

In this edition:

Item 1:
Chief Marketing Officers Forum

Item 2:
Why Bean Counters rather than Marketers get the CEO's job and Board seats?

Item 3:
Market Research: Applying the Results

Item 4:
New Business Wins

Item 5:
AGSM Brand Case Study

Item 6:
In the News / On the Hustings


Item 1: Chief Marketing Officers Forum

Since its establishment in February 2002, the Chief Marketing Officers Forum ("CMOF") has gone from strength to strength, highlighting the need within the Australian market for an organisation clearly focused on the interests and priorities of the country's executive marketers.

With chapters in Sydney and Melbourne, members include over 40 Chief Marketing Officers / executives from such major corporates, professional services firms and not-for-profit organisations as:

ABN AMRO, Accenture, Allens Arthur Robinson, AMP, ANZ, APSMA, Australian Business Limited, Beringer Blass, Bristol Myer Squibb, Cisco, Citipower, Coles Myer, Commonwealth Bank, Computershare, Deloitte Touche Tohmastu, Federation of Australian Commercial Television Stations, Ford, GE Commercial, Goodman Fielder, IBM, JB Were, Kodak (HPA), KPMG, Lend Lease, Lucent, McDonalds, Minter Ellison, Merrill Lynch Investment Managers, MLC, Mortgage Choice, News Interactive, NRMA, PriceWaterhouseCoopers, Queensland Rail, Rabobank, St.George, Sydney Symphony Orchestra, The Securities Institute of Australia, South Pacific Tyres, The Smith Family and Westpac.

CMOF has also established a strategic relationship with The Australian Institute of Company Directors, teaming up to deliver a panel discussion on Board diversity, and exploring the potential to develop and deliver marketing content for specific AICD Director courses.

CMOF's principal aims are:

  • To be a respected advocate for the Australian marketing profession within the business sector, government and the wider community
  • To be a source of intellectual leadership for the marketing profession (including research and intellectual capital)
  • To support its members in being appointed to public and not-for-profit Boards and to CEO roles
  • To enhance the image and understanding of the marketing profession within the wider Australian community by its members offering marketing expertise, skills and advice - at no cost - to SMEs and not-for profit organisations
  • To see marketing issues discussed in the Boardroom in an informed manner
  • To advocate a common set of marketing metrics which gain acceptance as a clear framework for demonstrating marketing's contribution to organisational performance.

During 2003, CMOF will focus on steadily growing its membership base, and commissioning research into marketing metrics and the composition of Australian boards.

Davis and Associates Strategic Marketing is a founding member of The Chief Marketing Officers Forum.


Item 2: Why Bean Counters rather than Marketers get the CEO's job and Board seats?

Why are beancounters, rather than marketers, more likely to be appointed to CEO and Board roles?

In an article that appeared in The Times earlier this year, the UK's Chartered Institute of Marketing identified five key reasons why a financial/accounting background is still viewed as being more appropriate for such roles (the following is based on a UK perspective, but much is relevant to the Australian market):

  1. Measurability: while marketers have, at their disposal, an array of quantitative metrics for demonstrating marketing effectiveness, they are not always used to best effect in the Boardroom. This may be due to the senior marketer not wishing to be subject to Board scrutiny, or (as is more often the case) the Board having little, or no, idea that marketing initiatives can be measured with a robust degree of accuracy.

  2. Accountability: an organisation's senior marketer needs to take responsibility for less successful marketing initiatives, as well as credit for the successful ones.

    Marketers can be highly entrepreneurial (which is to be lauded), but also somewhat less than forthcoming about their plans (which is not so laudable).

    For example, when you are part of a senior team involved in turning a company around - with tools that may include insights into consumer's emotional responses to a brand - you may be reluctant to share your plans with the rest of the executive team and the Board, before you've had the opportunity to see them through.

  3. Longevity: accountants have a reputation for sticking with a job; marketers are often viewed as individuals who make their mark on an organisation - and then move on to the next challenge.

    A Finance Director, on average, remains in the role for up to five years (UK figures), while the average tenure for an ambitious Marketing Director may be only 18 months - two years.

  4. The Business of Spending Money: Marketers are seen as a rather prolifigate bunch.

    Compared with a cost-conscious Finance Director, a Head of Marketing looking to advance their position with a Board may be seen to be a "less safe pair of hands".

  5. Reluctance to move around an organisation: To make it to general management, marketers need to learn about line management and finance and have had responsibility for a P&L; in other words, to take a more holistic approach to running a business.

    Marketers have a tendency to stay in specialist marketing roles, creating the perception they are not capable of (or open to) taking on broader management challenges.

Item 3 : Market Research: Applying the Results

Many organisations make a significant investment in market research - much of which, however, simply ends up as "credenza ware" (i.e. placed in a credenza and seldom taken out).

Why is market research commissioned and not actioned - or not actioned in full? Common reasons can include:

  • The findings challenge company orthodoxy and are seen to reflect negatively on senior executives. These executives then go into denial - seeking to ignore and /or discredit the research.
  • It's too hard (and will take too long) to seriously address major change and implementation issues arising out of research findings - so instead, small changes are made
  • Market research is frequently linked to medium-longer term initiatives, involving a longer time horizon; management attention and effort gets diverted by fire fighting and short-term measures, meaning market research-related implementation gets pushed further down the agenda - sometimes to the point where its relevance and currency renders it marginally applicable.
  • The "sponsor" of the research lacks the influence (resources and budget) to implement research findings.

Acknowledging the need to regularly test and monitor one's marketplace (and thus, the intrinsic value of market research), how can organisations avoid - or certainly reduce - "wastage" in their market research investment. Some suggestions:

  • Ensure the groundwork has been laid with senior management so the research findings are received and interpreted in an environment of candour and honesty: of paramount importance, is acknowledging and acting on your customer/ stakeholders' attitudes and perceptions
  • Ensure market research is viewed as an integral component of medium to longer-term business strategies, fully costed into business cases - so that actioning research findings remains a priority
  • In terms of internal "sponsors", ensure the research is not sponsored by a central corporate function alone (e.g. Marketing, HR etc), but is also supported by the senior line managers most directly impacted by the research
  • Leverage the research - so that it becomes a "living" and valuable tool.

    Most notably, build relevant marketing metrics based on the research (e.g. brand equity, customer purchase propensity), or update existing metrics drawing on the research; see whether external PR/media can be generated from the research findings; where appropriate, use the research findings in business cases, and for internal presentations and training.

 



Item 4: New Business Wins
  • Project manager / strategic marketing adviser for advertising agency tender for Mortgage Choice
  • Brand Counsel to Acuiti Legal (formerly Middletons Moore and Bevins) in implementing a brand awareness-profiling strategy


Item 5: AGSM Brand Case Study

The Australian Graduate School of Management's MBA program chose the re-branding of law firm, Acuiti Legal, as its branding case study for 2002.

The successful re-branding of Acuiti Legal in 2001 was a joint effort by Acuiti's in-house marketing team, Davis and Associates Strategic Marketing, and brand identity and design group, CPd.

Davis and Associates developed the values, vision and positioning underlying the Acuiti Legal brand, and identified the new brand name.

CPd were responsible for all elements of the brand identity - creating a fresh and differentiated look for a law firm.



Item 6: In the News / On the Hustings

Dianne Davis was quoted in The Australian Financial Review
(1 August, 2002) on the branding implications of IBM's acquisition of PWC Consulting and the decision to phase out the Monday brand.

Dianne was also quoted in B&T Weekly on The Chief Marketing Officers Forum (5 August 2002) and cited in Business Review Weekly
(30 August, 2002) on the Chief Marketing Officers Forum.

On 13 September, Dianne gave a presentation in Sydney on "How to Market A Marketing Consultancy" to Connect (a newly-established network of independent marketing consultancies).

On 5 December in Sydney, Dianne will Chair a Panel Discussion at the Australian Financial Review's 2002 Summit on Advertising; the discussion will look at the future of corporate advertising strategies, with the panel comprising a number of Australia's leading marketing executives.


Next Issue:
BEST PROFESSIONAL SERVICES FIRMS AND MARKETERS IN 2002

DUE TO THE CHRISTMAS-NEW YEAR BREAK, OUR NEXT ISSUE WILL BE OUT IN LATE JANUARY 2003.

Produced by MC3

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