Welcome to our newsletter for June-July 2004.

This issue focuses on the interrelationship between change management principles and marketing, and David A.Aaker’s latest book on branding.

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.

Dianne Davis
Principal and Managing Director

www.davismarketing.com.au

23

IN THIS EDITION

Item 1 :
Marketing and Change Management

Item 2 :
Recommended Reading – David A.Aker’s Latest Brand Book

Item 3 :
Recommended Reading – Professional Marketing magazine

Item 4 :
On The Hustings

ITEM 1: Marketing and Change Management

There are a number of marketing-based initiatives – that inexorably involve a significant change management component – and in which Marketing needs to play a driver (or certainly a co-driver) role; most notably:

  • Alignment of the internal and external brand
  • Re-positioning of the organisation’s brand
  • A change in the organisation’s brand identity
  • Implementation of client relationship management / CRM
    strategies and programs
  • Implementation of new/enhanced sales programs.

In a seminal article entitled “The Psychology of Change Management” (McKinsey Quarterly, 2003 – Gita Bellin & Michael W. Rennie), identify four critical success factors for change management initiatives.

For marketers seeking to achieve a strong internal-external brand nexus, re-position their brand, or implement an improved CRM strategy, the following four elements need to be strongly present:

1. Purpose to Believe In

If employees believe in an overall purpose, they will change their individual behaviour to serve that purpose; however, they need to understand their role and actions in the organisation’s future and believe it is worthwhile for them a play a part.

Note the authors, “Anyone leading a change management program must take the time to think through its story – what makes it worth undertaking – and to explain that story to all of the people involved in making change happen, so that their contributions make sense to them as individuals”.


2. The Right Reinforcement Systems

Reporting structures, management and operational processes and measurement procedures must all be consistent with the behaviour that people are being asked to embrace.


3. Imparting the Skills Required for Change

It is essential to understand effective adult learning patterns, and to develop training and education accordingly. An effective pattern typically incorporates:

  • Absorption of the new information
  • Applying it experimentally (i.e. try it and see what works / what doesn’t)
  • Integrating the new with existing knowledge.

Yet corporate training is often condensed into highly intensive timeframes where people are expected to absorb copious amounts of new information and quickly change behaviours; they are then provided with too few ongoing training and “at work” opportunities to incrementally apply (and work with) new tools and methodologies.

Again the authors note:

…break down … formal training into bite-size chunks, with time in between for the learners to reflect, experiment and apply the new principles. Large-scale change happens only in steps”.


4. Consistent Role Models

People model their behaviour on significant others (this is not necessarily the CEO, or one’s direct manager) – it could be someone in your immediate team / area who has a strong personality, or an influential PA or executive assistant.

In driving change throughout an organisation, it isn’t sufficient that people at the top are in line with new ways of working and thinking - role models at every level must in effect “walk the talk”. Too often, change initiatives are top-down, rather than a blended top-down / bottom–up approach, whereby role models at all levels are engaged in support of the change.

The authors make the point strongly that organisational behaviour is heavily influenced by: (a) both role models; and (b) the groups with which people identify. Thus, role modeling by individuals must be validated by the groups that surround them if it is to have a permanent or deep influence:

If (some employees) in the company’s (community areas) spend …lunchtimes complaining ‘that we’ve heard this a thousand times before and nothing happened’, individuals will feel less pressure to change their behaviour”.


ITEM 2: Recommended Reading – David A.Aker’s Latest Brand Book:

Brand Portfolio Strategy – Creating Relevance, Differentiation, Energy, Leverage and Clarity (Free Press, 2004)

Recognised as being amongst the pre-eminent thinkers and academics on strategy, Aaker’s latest work is a timely and welcome updating of his views on brand.

Full of diverse examples and case studies, Aaker brings some important fresh insights into strategic brand thinking. The standout section is on “Creating Relevance, Differentiation and Energy”.

Here Aaker talks about the need for all brands to be revitalised and energised (from "time to time") if they want to maintain their relevance and point of different in the market.

He also challenges the widely accepted Young & Rubicam Brand “Value Chain” (i.e. Differentiation / Relevance / Esteem / Knowledge), by arguing (most convincingly) that a brand first of all develops relevance then differentiation, rather than the other way around.

He asserts that a customer typically has a need / problem / opportunity and thinks of the relevant brand category first to address this need etc; it is then that customers think of brands within that category (and it is the most differentiated that get on the “shopping list”).

He also covers – in some detail - the role and management of different brand types (e.g. endorser, linchpin, silver bullet etc) within the brand portfolio strategy (aka “brand architecture”).

For students of branding (and marketers in general), Aaker is an essential addition to the marketing library.

It is most readily available via amazon.com. Retail price (AUD) is around $44.

ITEM 3: Recommended Reading – Professional Marketing magazine

Professional Marketing is a UK-based monthly magazine specialising in professional services marketing. The major focus is on accounting and law firms, but other professional services sectors (e.g. engineering, surveying, property management / development, architecture) are also profiled.

While it has a UK-European focus, the articles, profile pieces and case studies address branding, communications, business development and client relationship management issues of direct relevance to Australian and New Zealand professional services marketers. It also features, from time-to-time, stories on Australian firms (see April 2004, profile on Gilbert + Tobin).

Articles are written in a practical, “how to” manner, including useful tips, frameworks and methodologies. For information on how to subscribe go to, www.pmint.co.uk

ITEM 4: On The Hustings

Presentations - on 8 July in Sydney at an Australasian Professional Services Marketing (APSMA) lunchtime seminar, Dianne will co-present a Branding Case Study: Securities Institute of Australia – Achieving Internal-External Brand Alignment.

Along with SIA’s Head of Marketing, Dianne will discuss how the brand positioning research Davis & Associates conducted in 2003(and associated strategic recommendations) are being implemented, both internally and externally across the organisation.

Media - Dianne is featured in BRW (2 June, 2004) in an article about senior corporate marketers leaving the corporate world to establish their own marketing consultancies.


NEXT ISSUE: MARKETING METRICS – BUILDING CONSENSUS WITHIN THE PROFESSION

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