What Makes A Great CMO ?

October 25, 2010

I’ve often said that the best CMO is a CEO who believes in Marketing. But beyond this, what makes a great CMO? This is germane not only to CMO’s whose average tenure is about 2 years, but also to CEO’s who need Marketing to drive results.

What Makes A Great CMO?

CMO Competency Research

Egon-Zehnder International (EZI) has taken a close look at this and has some interesting insights. Over the past 5 years, EZI conducted 25,00o CMO appraisals across 300 companies to better understand what differentiates great CMO’s from average ones.

Assessed skills included: results orientation, team leadership, collaboration, strategic orientation, organizational development, change leadership, customer orientation, and market knowledge.

Markers of a Great CMO

EZI’s assessment shows that 2 factors stand out in differentiating great from average CMO’s:

1.  Results Orientation

“Results orientation means driving uncompromisingly for better outcomes, often achieving them through skilled use of robust analysis and benchmarking”

 

2.  Change Leadership

“Good CMO’s are adept at advocating change and communicating a clear and compelling new direction…they set clear targets that focus people on achieving the change and develop metrics that both monitor and motivate it”

You could easily summarize the above as “set a direction and then deliver on it.” And, this is entirely consistent with a previous post, “What Do CEO’s Really Want From Marketing?,” where I discussed Lou Gerstner’s definition of CMO success: great CMO’s build the brand and build the business.

Makers of a Great CMO

What Can CMO’s Do?

1.  Success Metrics — One thing that most CMO’s can do better is to develop clear Marketing success metrics and then use them to assess the performance of their Marketing efforts. I’ve written extensively about the need for Marketing to be more accountable, particularly with Advertising and Media.

  • Does your advertising build your brand equity ? Which creative or media choices contribute most to this growth?
  • Does driving your brand equity scores build your revenue and profitability ? Which equity attributes are most critical to better business outcomes ?
  • Does your advertising build volume, share and revenue ? And, what’s the short and long-term ROI impact ?

2.  Reward Metrics — The same metrics can be used to reward your organization. Whether you recognize and reward people on an ad hoc basis, or with more formal annual Marketing Awards events, every CMO has an opportunity to continuously recognize great performance by individuals and groups by emphasizing progress on the same metrics.

Success Metrics & Reward Metrics

 

Set a Direction and Then Deliver On It

Like most good insights, it sounds simple but is, of course, hard to execute in practice. Lou Gerstner was right. Great CMO’s just build great brands and drive better business results. And, the Egon-Zehnder research just proves it.

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Is iTV the Next Digital Marketing Frontier ?

August 24, 2009

Engagement, conversation, interaction. Whatever you call it, the web has ushered in a new era for Marketers to not just preach their gospel to consumers, but to actually engage in a more meaningful two way dialogue.

But, there’s another digital frontier beyond the web, and one that also has vast potential to change the way Marketers interact with customers — interactive TV. iTV marries traditional TV with digital interactivity–by using your TV remote to “point and press.”

iTV -- The Next Digital Frontier ? (visual courtesy of bobrien.com)

iTV -- The Next Digital Frontier ? (visual courtesy of bobrien.com)

As Meg Brossy, SVP Marketing at Brightline iTV, an iTV consulting firm and services provider, says:

“Consumers are being pulled in many different directions today. Done right, interactive TV allows marketers to feed viewers’ desire for entertainment through compelling ad experiences – when, where and how viewers want to encounter them.  When a consumer voluntarily opts-in to engage with the brand in this way, not only does ad effectiveness jump, but product/brand recall and purchase intent is heightened and the consumer embraces the information. The results our advertiser clients see from iTV speak for themselves.”

Did You Know ?

  • 75MM U.S. consumers now have digitally capable iTV
  • iTV reaches 7MM more consumers in the U.S. than broadband
  • 7 major satellite/cable TV companies can now provide iTV
  • “Time shifting” is growing, continuing traditional ad erosion

Implications for Marketing

TV no longer needs to be a passive medium that is in danger of irrelevance as consumers time shift and avoid uni-directional one to many broadcast ads. Instead, iTV creates opportunities for brands to interact with consumers in a variety of ways. An interesting view of this is “TV ads that refuse to be ignored” at ECommerce Times.

iTV -- Extending Interactive Marketing Beyond Web and Mobile to TV

iTV -- Extending Interactive Marketing Beyond Web and Mobile to TV

Most Marketers seem vaguely aware of the theoretically large potential of digital TV, but largely unaware that it’s moved from “potential” to “real, scalable and impactful.” With iTV, brands can expand the range of interactive platforms beyond on-line and mobile to include TV.

Brands are catching on. Unilever has 30+ brands using it. J&J and others are not far behind. And the medium isn’t limited to CPG, as TD Ameritrade, Nike and others are experimenting aggressively.

5 Ways Brands Can Leverage iTV

  1. Improved Targeting— iTV enables brands to tailor the message to the audience. For example, TD Ameritrade offers three different investor options for consumers to “point and press” to learn more about a particular investing style. Instead of a single message, it’s now possible to let viewers choose the message most relevant for them.
  2. Content Marketing — Suddenly, there’s a large opportunity for brands to create relevant and meaningful content to deepen and surround their brand promise–via the TV. Consumers can access educational content, games, or virtually any type of brand relevant content. For example, Hellman’s developed simple games and recipes to drive increased usage.
  3. Partner Marketing— Brands can partner their iTV creative content with relevant TV programs to increase viewer engagement. Consumers can now interact with a brand during a TV program about a similar topic — e.g. consumers can learn about sleeping bags while watching Man vs. Wild, etc.
  4. Direct Response Activity— Brands can use iTV to request free samples, sign-up for newsletters, etc. Viewer data is housed within the cable or satellite providers platform, so viewers don’t even have to provide personal info in reaction to direct response activity.
  5. Metrics and Measurement— iTV is digital, which means it’s measurable in the same ways as the web. ITV brings more sophisticated engagement and ROMI measurement to traditional TV spend.

Results & Impact — Encouraging

Brightline iTV claims CTR’s typically range from 3-6% vs. <1% typically seen on-line. Viewer engagement measured by time spent with brand typically increases dramatically. And, companies like Unilever seem convinced about the ROMI of such programs as evidenced by their increased participation in this new medium.

iTV — Too Good To Be True ?

So, what’s not to like about iTV ? Well, there are challenges:

  • Complexity— Each of the 7 cable and satellite companies have their own proprietary platforms and measurement approaches. Creative developed for iTV has to be modified across platforms. While these challenges are not insurmountable, they create cost and complexity and have deterred many Marketers in the past.
  • Opt-In / Audience Size— CTR’s are impressive, but there’s still an open question about consumer education and opt-in. iTV will only be as good as the number of consumers who know how to use it and are willing to opt-in. To date, it’s unclear what fraction of the 75MM viewers are actually “engage-able.”
  • Organization Skills— Where does iTV fit ? Is it creative or media ? Who drives it–ad agencies or clients or special service agencies ? What works and what doesn’t ? Like any nascent technology, there’s a lot to learn.

The world is moving digital — but not just on the web. iTV is arguably the next digital frontier for Marketers. CMO’s need to ask a very simple but fundamental question:

Should my brand be exploring iTV ?

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Should Marketers be in the Business of Selling Media ?

June 4, 2009

Target’s announcement this week that they’ve struck a media deal with Daily Candy is, on the surface, a straightforward attempt to monetize their large web site traffic and create a new revenue stream.  Daily Candy is a free daily e-mail from a website which focuses on leading edge fashion, food, and fun. Target has been advertising in DailyCandy e-mails for some time now.

DailyCandy

The deal, announced on Monday, creates a co-branded  “Red Hot Shop” in collaboration with Daily Candy, which features “a monthly dose of chic, unique, and sometimes offbeat” in the form of DailyCandy editors product picks on the Target web site.

Marketing Innovation ?

Is this a smart new Marketing idea that other Marketers should emulate ? Or, is this nothing more than a brazen play to generate a new revenue stream during a very challenging and difficult economic environment ?

It all starts with the Brand and the key equities you want to own. Target has done a great job over the past ~10 years of establishing itself as the mass merchandising retailer that brings you fashionable products at a reasonable price. DailyCandy squarely fits the Target “fashion” equity and brings an element of street cred as well.

Target Daily Candy

Guilding Principles

  • Do you have the same target consumer ?If so, it might make sense to evaluate a media partnership like the Target / DailyCandy one. In Target’s case, both Target and DailyCandy are focused on women interested in fashionable merchandise and ideas.
  • Do you share the same brand equities ?If not, you risk diluting your brand by devoting valuable web space to a brand that doesn’t reinforce and support what you want to stand for. What I really like about the Target / DailyCandy partnership is their focus on leveraging the DailyCandy fashion expertise and equity–similar to Target’s–to recommend products for sale on Target’s web site.
  • Would a media partnership help achieve your marketing objectives ? Building your core brand equity is a never-ending objective. Target also has the potential to bring in new shoppers and/or increase share of wallet via new merchandise.
  • Does the economic model make sense for both partners ?You’re giving up important real estate on your web site. There is an opportunity cost to devoting your space to someone else–does the partnership deliver a better financial return? It sure looks that way–Target leverages DailyCandy’s fashion expertise and street cred to sell more product, while DailyCandy benefits from Target’s large consumer reach and advertising. And they both build their “fashion” equity.
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I’ve always admired Target as a leading retail Marketer (one of the few), and this is another great example of them innovating through media, web and smart partnership marketing.

What do you think ?