The CMO Challenge For 2019

Bob Wolf Partners/TPG is one of the premier U.S. agency search consultancies advising in all matters that optimize the client-agency relationship.



Financial pressure on the CMO role has never been greater as CEO's, CFO's and investors expect improved marketing ROI. At the same time, the convergence/importance of multiple channels in the customer journey to purchase has never been more complex, nor more important. This environment requires a knowledge and somewhat precise use of data, technology, marketing tactics and measurement of results all aimed at reaching various consumer touch-points/engaging the consumer prior to purchase. It should come as no surprise, not all CMO's have all of this expertise or a supporting g brand management team to manage it effectively.

 

Whether it's comprehensive strategic planning, specialized research examining consumer needs, attitudes, media/social habits, shopping patterns and so forth; or at home on large-screen TV viewing, in-store displays, sporting event signage, online via your phone or computer, in conversation with friends...the need to prioritize, allocate and optimize channel / creative / media / production strategy / execution / spend is key to sales success. Savvy CMO''s have learned that surrounding oneself with subject matter experts (SME's) is key to this success...but easier said than done. 

 

With emerging brands seeking improved ROI, creation of an in-house agency staffed with strong internal specialists is not uncommon. Danger often occurs with too many SME's (e.g. USX/digital, social, direct response, etc.) and not enough generalists. Who settles turf wars, budget allocation, creative direction...who is the "integrator" leading the brand's future marketing direction? Even with large sophisticated brands, an in-house entity can be 

cost effective, particularly when dealing with repetitive, more tactical activities such as customer service, social chat lines, social listening, direct response production/mailing, in-store collateral/displays, etc. But these more established companies usually leave more sophisticated research, creative development and production to outside agency partners...recognizing that the best talent is hard to come by for in-house shops.

 

A related observation is that large brands with big agencies and long-term relationships are getting more comfortable selectively hiring small upstart shops/boutiques led by experienced pros and other outlier niche agencies to tackle key projects. The goal is to round out their agency portfolio and inspire friendly competition...leading to better/break-through marcom solutions. A side benefit may be lower fees, a stronger bargaining position and improved creative energy...all leading to greater ROI.

 

Why Trust Is Key to Brand Preference

We all know that many elements comprise brand image...appearance, convenience, functionality, reliability, scarcity, cost and so forth. One attribute often overlooked is trust. When trust is harmed or lost, brand loyalists and various constituent groups begin to flee. Two very current examples of this are Facebook and the United States of America.  

 

The first, Facebook, has enjoyed rapidly growing support, consumer usage, advertising revenue and accolades for over a decade. However, recent revelations about unauthorized data sharing, possible cover-up of Russian hacking regarding the 2016 US election, and privacy issues. have forced consumers, advertisers and investors to lose trust...resulting in more governmental scrutiny, possible regulation and some ad cancellations all placing the brand's future in doubt.

 

The second example, The United States brand, has suffered a significant loss of trust among the majority of Americans and among citizens of many countries around the world. Why? Because a normally key and reliable brand attribute, The President/Administration, has for two years consistently spread falsehoods, denigrated the media and all major institutions (e.g. Justice, Congress, FBI/CIA, etc.), denied science/global warming, ignored sage advice, made many poor personnel choices, overseen enormous turnover among key cabinet/admin posts, demonstrated a lack of comprehensive planning/ quality execution along with a chaotic decision-making and communication style all of which consistently worries and divides people throughout our country and abroad. 

 

An empty suit, with a bad tie has been linked (though not yet proven) to many crimes big and small...and has used his street smarts, personal attacks and media savvy to distract, cover-up and mislead the citizens of our country and our allies all over the world. His narcissistic and sociopathic ways, love of autocrats, lack of curiosity, poor management and communication skills have made the US a laughing stock in much of the world...hence a lack of brand trust within NATO, NAFTA, the UN, members of the Paris Accord and so forth. His disregard for more commonly accepted American values, amorality and need to diminish others to make himself appear important are just more reasons why he is losing US voter trust as evidenced by the mid-term election results and recent polls. Only a reversion to a more consistent center-right or center-left President with prior proven job/political/management experience can restore trust in the United States brand.

 

The Value of Marketing Integration

The concept of all marcom integration goes back to the "Whole Egg" concept developed at Y&R in the 70's. In short, all elements including branding, advertising, PR, digital, promotion, in-store, social, direct response, shopper, experiential and so forth should all work together synergistically to achieve a unique, memorable and favorable image...all leading to increased sales/share for the Client brand. Unfortunately, most large agencies were developed around more profitable large creative advertising campaigns. And while large agency holding companies added dozens of specialty agencies, turf issues and competition for share of budget prevent most of these niche players from playing well together. There were a few small-medium sized agencies who staff/organize well for integration...and the occasional AOR that manages multiple elements well. But all in all, budgets and competition being what they are, it falls upon the Client to manage integration effectively.

 

The above, notwithstanding, there are many obstacles to effective marketing integration even when the Client manages this process. First, there's the in-house agency some Clients set up which often lacks superior creative talent, but somehow keeps inserting itself (or being inserted) into many projects. Then, often, there are various departments and/or brand teams competing for budget and control of a given initiative, or the top-down authority, bosses in corner offices, power bases and conflicts of interest...all getting in the way of doing great work on a given brand's behalf. What's critical, but difficult to pull off, are "circles"/teams of independent experts from different disciplines working synergistically on the brand's goals. All that's needed are excellent systems, org alignment, feedback mechanisms, quality control and best practice management providing the right environment! Good luck. 

 

Before You Call For An Agency Review 

Too many reviews seem to be initiated due to management changes, KPI's or agency service not meeting expectations and/or a lack of scrutiny as to what Client issues may have resulted to poor advertising/marcom campaign results. Before a review decision is made, we suggest a careful 360 performance review of both Agency (incumbent) and Client teams to see if the key elements of the relationship...culture, lines of communication, values, insights/ creativity, briefing/feedback, account service, expectations and personnel "fit" are optimized against brand goals. This kind of initial Client/Agency performance audit may lay the groundwork for improved future results with the incumbent agency ...or provide the foundation for a new review and a successful long-term relationship with the winning agency. The Performance Audit also is useful as the basis for an annual agency compensation negotiation / renegotiation. As you might expect, self-serving as it may seem, this kind of 360-Performance Audit is best conducted with the assistance of an outside consultant to ensure objectivity and ease in handling any delicate personnel/turf issues.

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