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Online
Newsletter
OCTOBER / NOVEMBER 2002
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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
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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.
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| 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):
- 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.
- 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.
- 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.
- 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".
- 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.
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| 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.
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| 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
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| 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. |
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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.
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Produced
by
MC3
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