five keys to marketing's "new golden age"
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McKinsey Insights & Publications webinar | February 20, 2015
Five keys to unlocking growth in marketing’s “golden age”
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New trends shaping marketing today
Consumer power
Explosionof digital
Fragmentation
Always on Personalization
Data, data,data!
100
110
Personalization
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This is the dawn of a new golden age of marketing
This is the dawn of a new golden age of marketing
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Science
StorySpeed
Simplicity Substance
The 5 S’ of the new golden age
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“The beauty of marketing today is that we can really show the return. The data allows us to demonstrate impact in a much more transparent way than in the past.”
Lorraine Twohill, Senior VP for Global Marketing, Google
Science
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Science
Better decisions to increase impact
$200 billion opportunity
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Science: Better decisions to increase impact
Avg. profitfor promotedproducts up
288%
Retail company
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Science: Better decisions to increase impactInternational industry player
100,000 price points reset
500 SKUs
1.3 million transactions
An
alyt
ical
ren
der
ing
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Science: Better decisions to increase impact
vs.
Art Science
Wrong debate
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Science: Better decisions to increase impact
Art Science
Wrong answer
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Art Science Craft
Science: Better decisions to increase impact
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Substance
“Look what [luxury brands] are doing: they’re building flagship stores that are beautiful, where you actually like to just browse around before you buy. Those are emotional places.”
Ola Källenius, Board of Management of Daimler AG
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Substance
Moving beyond messaging to shape the substance of
business
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Differentiation
Substance: Shaping substance of business
Products Services Experiences
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Substance: Shaping substance of businessEnergy company
Customeronboarding
7 steps
2 steps
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Story
“It’s not [all data]! … If you fall down on the art, if you fail on the messaging and storytelling, all that those tools will get you are a lot of bad impressions.”
Lorraine Twohill, Senior VP for Global Marketing, Google
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Story: Better storytelling for emotional connection
What makes a good story hasn’t changed.
HOW to tell one has.
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Old story telling BRAND
New story telling BRAND
Story: Better storytelling for emotional connection
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Speed
“Speed comes from decentrali-zation and creating a local autonomy to take local action.”
CMO, Consumer goods company
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Speed
A culture of urgency has placed emphasis on speed and agility
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Speed: A culture of urgency to keep up with consumers
From To
Batch processing
Command and control
Manual
Slow development
Continuous delivery
Agile
Automated
Real-time test & learn
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Simplicity
“The growing complexity is unmanageable: in-house vs. external partners, established channels vs. new channels. We need help to get through this jungle.”
CMO, Consumer goods company
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Simplicity: Simplify to execute
Speed and agility require relentlessly focusing
on simple
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Complexity kills
Expanding geographic footprints
Product and channel
proliferation
Digital and technology
specializations
Hierarchies, silos, gaps,
redundancies
Simplicity: Simplify to execute
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Complex: Disparate HQs and teams
Simplified: Single team mapped to customer
ourney
Consistent brand experience
Simplicity: Simplify to executeDaimler
Customer journey
Before
After
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The most important questions to ask
Speed Faster than our competitors or slower?
Simplicity Simplifying processes or overwhelming with new things?
Story Making connections or speaking into space?
Substance Differentiated experience or “me-too” selling?
Science Today’s insights or yesterday’s facts?
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Jesko PerreySenior Partner andGlobal Knowledge Leader of McKinsey's Marketing & Sales Practice
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