24 HOUR GLOBAL CONVERSATION
24 Hour Global Conversation
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About this report
Foreword
Now in its second year, the 24 Hour Global Conversation by The Marketing Society takes the temperature of leading marketers around the world.
To mark the launch of our Asian operation in 2014 we ran the first ‘24 Hour Global Conversation’ initiative connecting more than 40 business leaders from across the globe to discuss their biggest opportunities and challenges in a series of video telephone conversations.
Conducted over 24 hours at the end of 2015 by Bloomberg Media for The Marketing Society, this unique study followed the sun from Asia–Pacific and the Middle East to Europe and the U.S.
With the imminent launch of our next hub, The Marketing Society Middle East in Dubai, we repeated the study by asking our global members two deceptively easy questions; ‘What is the greatest opportunity and challenge for your business in 2016? How are you going to take it beyond business as usual?’
Telephone conversations with 26 marketing leaders took place on the hour, every hour across four continents. The result is a rare insight into the challenges and opportunities facing senior marketers today. Common themes soon emerged, but each marketer brought their own region’s emphasis and experience to the fore. We would like to thank all interviewees for their time and insight.
Hugh Burkitt, Chief Executive The Marketing Society
The 2016 edition of 24 Hour Global Conversation revealed some interesting differences and commonalities, with five key trends emerging: • The ongoing digital transformation
The Marketing Society
• The importance of cyber security
Hugh Burkitt, CEO, The Marketing Society
• The age of customer–centricity
Bloomberg Media Studios Editorial: Arif Durrani, Joni Roberts, Edward Adams, Mark Froude, David Benady Design: Emily McKay
• The collaborative economy • The talent hunt continues The Marketing Society will be delving deeper into these challenges throughout the year via our programme of events delivered by our global offices. Thank you to everyone who took part in our 24 Hour Global Conversation and special thanks to our friends at Bloomberg Media for partnering with us on this unique initiative and helping to produce this report.
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24 Hour Global Conversation
24 Hour Global Conversation
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Interviewees
Alison Orsi, Vice–President of Marketing Communications and Citizenship in the UK and Ireland, IBM
Andrew Cocker, Senior Marketing Director, Expedia
Andrew Warner Vice President Marketing, Monster
James Welch Managing Director Blue Logic Consultancy
Julian Boulding President and Founder thenetworkone
Pete Markey Chief Marketing Officer Post Office
Riccardo Brenna Head of Marketing and Insight Sony Mobile
Nevine el-Warraky Group Managing Director Brand Learning
Rupert Staines Managing Director EMEA, RadiumOne
Marketing Society 24 Hour Global Conversation Annabel Venner Global Brand Director Hiscox
Dominic Grounsell Global Marketing Director Travelex
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Feng–Min Chien, Managing Director, Principal Consultant, FMCGlobal Marketing Consultancy 24 Hour Conversation
Simon Morris Director of Demand and Content Marketing, Adobe
Calum MacDougall SVP Marketin Jabra
Darren Woolley Founder and Global CEO TrinityP3
Ruth Rowan Group Executive of Marketing Dimension Data
Emma Harris Founder Glow
Erica Kerner Vice President of Marketing Asia–Pacific, Tiffany & Co.
Steve Walker Marketing Consultant Two Sides Communications
Stuart Wilson Global Partner Shirlaws Group
Hugh Burkitt CEO The Marketing Society
Todd Handcock, CEO Asia Pacific and Global Head of Marketing at Tag Worldwide & Williams Lea
Vincent Gillet
Guy Parsonage CEO Fluid
Susan Griffin CMO Branding and Marketing Brainjuicer
Wayne Arnold Co–Founder and Global CEO Profero 24 HourMullenLowe Global Conversation
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Opportunities and challenges for 2016
“Much is in flux, and the demand for marketing talent and leadership remains a key requisite.”
Opportunities and challenges for 2016 The backdrop for business in 2016 is cautiously optimistic, with the world economy expected to lift by 3.4 percent, according to the International Monetary Fund.
marketing talent and leadership remains a key requisite. However, there’s strong evidence to support the view that such disruption plays to the strengths of inquisitive marketing polymaths.
Growth and innovation, as ever, will not be evenly distributed, and for marketing leaders trying to navigate the evolving landscape, an increasing number of challenges and opportunities have emerged – and they are often interconnected.
Darren Woolley, the Founder and Global CEO of Australia’s Strategic Marketing Management Consultants, TrinityP3, seemed to capture the pervading mood among many participants when he said:
From cyber security and data management, to agency collaboration, the changing advertising ecosystem and the ongoing risks presented by socio–political unrest; marketers continue to live at the forefront of change.
3.4% global economic growth forecast in 2016, IMF
This year’s 24 Hour Global Conversation by The Marketing Society and Bloomberg Media presents a unique view on how some of these industry trends are being translated around the world. Underpinning these sweeping changes is the ongoing digitalization of businesses and customer journeys. Much is in flux, and the demand for
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24 Hour Global Conversation
“2016 is going to be the year of the marketer. I believe we will see marketing come back to the forefront of business following the realization it is essential to capturing and engaging customers’ attention and ad dollars.”
Our brief snapshot in time highlights how today’s marketer has to combine operational and data skills with strategic vision and increasing levels of accountability. Some of the common, salient trends to emerge during this year’s 24 Hour Global Conversation have been collated around five central pillars: digital transformation, customer–centricity, cyber security, collaboration and talent.
24 Hour Global Conversation
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The ongoing digital transformation
The ongoing digital transformation In 2016, as clients and agencies continue to wrestle with unprecedented amounts of data, unsurprisingly one of the biggest areas of focus for marketers taking part in the 24 Hour Global Conversation involved the drive to interpret this shift. “When everything is connected, anything is possible,” noted Ruth Rowan, Group Executive – Marketing of the global IT services group, Dimension Data. “Increasingly we’re all connected to each other, and many things in our homes and offices are connected to one another, and they’re also connected to us. “This creates a huge opportunity for how we live our lives and also how we work differently. It gives us a huge opportunity to gather data, to communicate differently, to have immediate contact with wherever in the world they are, whatever help they need.” Technological innovation, and how it is impacting people’s lives, is top of mind for Wayne Arnold, Co–Founder and Global CEO of marketing agency MullenLowe Profero. He said: “It’s changing everything, from how we forecast economic bases to the way that businesses are engaged with their target audience. We need extra complexity that’s impacting the way we,
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“It’s about how we turn data into insights and real actions that can help us drive change for our businesses..” Alison Orsi Vice–President of Marketing Communications and Citizenship in the UK and Ireland IBM
as marketers, work on a global and local level. Technology has no boundaries.” Digitalization requires organizations to shift from established business models. Increasingly it is intangible assets, from brand perception to customer relationships and intellectual property to human capital, that drive value in businesses. Dominic Grounsell, Global Marketing Director of foreign exchange specialist Travelex, said:
“The opportunity for our business this year is the transformation around our infrastructure, our people, our culture, our processes and our risk appetite – gearing towards creating a business that’s much more orientated towards the consumer.” But digitization is not the destination in its self, and, as Alison Orsi, Vice–President of Marketing Communications and Citizenship in the UK and Ireland at IBM, noted, it’s really a foundation for what comes next. She said: “It’s about how we turn data into insights and real actions that can help us drive change for our businesses. We are now talking
“It’s changing everything, from how we forecast economic bases to the way that businesses are engaged with their target audience.” Wayne Arnold Co–Founder and Global CEO MullenLowe Profero
The speed of change varies wildly within individual sectors and companies. Some are already being disrupted, others are experiencing more incremental change, creating a sense of anticipation of what’s to come. Vincent Gillet, former VP Global Marketing at Nissan’s Infiniti, said for marketers navigating change in the automotive space, “few are really embracing it”. He added: “The day the Airbnb of cars does come along, it will be interesting to see how that might affect us. “Uber is disrupting mobility, of course, and also, arguably, the access economy – as opposed to the ownership economy. We [Infiniti] see no problem sending lots of cars to Uber, which we do. We’ve been very proactive [in that area] unlike other car companies. The next time you go to Paris and order an Uber, there’s a very big chance you will end up in an Infiniti.” One of the core strengths of these digital disruptors is the streamlined, single–minded vision that propels them. Free from the shackles of legacy operations, they are able to build agile workforces facing the same direction, and not reliant on the size of their manufacturing plants or distribution networks. “Look at the digital disrupters,” said Wayne Arnold, Co–Founder and Global CEO, MullenLowe Profero. “Uber is the world’s biggest car company, but doesn’t own a car. Amazon is the world’s biggest retailer, but doesn’t own stores. The digital disrupter is the competitor to every single brick and mortar business.”
about how you take data forward and analyse it, and have started talking about what we’re calling a cognitive era, or a thinking era. The opportunity is data, but really it’s about data analytics.”
24 Hour Global Conversation
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The age of customer–centricity
The age of customer–centricity Some of the inherent advantages of the digital disruptors are not lost on Andrew Cocker, Senior Marketing Director of online travel company Expedia. “The challenge for us is to simplify,” he said. “Like Airbnb or Uber, Expedia does not own any airlines or hotels, but what we do own is the overall customer experience.
Successful marketing integration relies on smarter use of data, both online and off. By harnessing information across multiple touchpoints, and learning to apply it in more meaningful ways, you can drive far better business outcomes, according to Rupert Staines, Managing Director EMEA at RadiumOne.
“We’re championing the user during every step of the process. Our biggest job is to make that user experience totally seamless, intuitive and less complex than it is today.”
He added: “The opportunity is this idea of connecting all the dots as audiences fragment across the media landscape and across multiple screens and devices. That is both the opportunity and the challenge in 2016.
“Good native tells a story, but at the same time, the consumer needs to realise it is paid for content.” James Welch Managing Director Blue Logic Consultancy
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“The idea of having a 360–degree view on your customer is right here, right now; it’s very much possible.” The move towards gaining a more holistic picture of the consumer is similarly top of the agenda among the more established companies. Pete Markey, Chief Marketing Officer of the Post Office, calls such integration “very much key”. “We need to get to know our 17 million customers better,” he said. “We talk a lot internally about moving from transactional to relational. “There are lots of things we are doing, such as starting the transaction online and completing it
in brand, such as printing your own stamps online – the U.S. have already started this. Currently [in the UK], apart from the utility of ‘find a post office’ and ‘find your postcode’, you can’t actually buy postage online.” In a complex and competitive marketplace, a positive customer experience across all major touchpoints is a major competitive advantage. Better data management, coupled with a more sophisticated use of search and retargeting, promises to boost the user experience.
“...Connecting all the dots as audiences fragment across the media landscape and across multiple screens and devices. That is both the opportunity and the challenge in 2016.” Rupert Staines Managing Director EMEA RadiumOne.
For Andrew Cocker, Senior Marketing Director at Expedia, the biggest opportunity in 2016 centres around engagement and context: “It’s about how can we anticipate what the customer needs before
they even have to ask?” he said. “This applies to whether they are in the inspirational part of the travel cycle or whether they are in booking mode. We have to anticipate better with so many things at our disposal now.” The use of content to engage audiences was one of the most talked about industry trends last year and, as social media channels develop, and ad blockers continues to rise, it looks set to remain high on the agenda in 2016. Simon Morris, Director of Demand and Content Marketing at Adobe, said: “From a content perspective, as marketers, we know that customers are looking for personalized, relevant experiences, delivered in seconds. If you get that right, the opportunity to stand out from your peers is enormous.” James Welch, Managing Director of Blue Logic Consultancy, had a similar point of view. He said: “We need to find a way to tell stories to people that is relevant to them, and if we’re going to find traditional advertising is getting less impact, then native is the stepping stone towards it. “Good native tells a story, but at the same time, the consumer needs to realise it is paid for content.” Even marketers in sectors once defined by the physical spaces they own, as typified by the high street retailer, are now finding new opportunities in the digital landscape. Feng–Min Chien, Managing Director, Principal Consultant, FMC Marketing Consultancy and former Managing Director and Head of Marketing, Asia Pacific at BNY Mellon, said: “Companies that are better at integrated marketing programmes will definitely be the winners. Every single touchpoint, from brochures
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The age of customer–centricity
to advertising, and websites, twitter accounts to physical shops, everything needs to deliver the same brand experience.” These sentiments were echoed by Erica Kerner, Vice President of Marketing Asia–Pacific for Tiffany & Co. “The retail experience is always going to be very, very important to luxury brands, but it’s about how can we make that experience better and more seamless for the customer.” She added: “There is going to be a lot of back of house work around digital, getting to know the customer and CRM programmes. Digital and
“If you go too far down the rabbit hole of data, data, data… analysis, analysis, analysis; you could lose your intuition as a marketer.” Richard Ivey Asia Marketing Society Steering Group
technology will greatly improve how products are sold within stores, how we better understand and read our customers’ needs and desires.” Riccardo Brenna, Head of Marketing and Insight at Sony Mobile, said the balance of power in the technology space has changed in the 65 years in which Sony has become a household name.
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The fact that products work and are reliable is expected, and they often share the same functionality as products from their competitors. So price points and brand perception plays an important role. He said: “We need to really improve the way that we listen and think about what this means for our strategies. We are in a heavily hardware minded industry, where software is leading the way and the connection with the customer.” For Darren Woolley, the Founder and Global CEO of Australia’s Strategic Marketing Management Consultants, TrinityP3: “The exciting trend that we’ll see in 2016 is going to be around the ‘Chief Customer Officer’. The CCO is coming out of marketing and integration is going to be not so much the approach of the 90s of having a set of matching luggage, but more about co–ordinating and aligning the organization to the needs of the customer.” One note of caution during the 24 Hour Global Conversation about becoming too reliant on data, came from Richard Ivey – Asia Marketing Society Steering Group. He warned: “If you go too far down the rabbit hole of data, data, data…analysis, analysis, analysis; you could lose your intuition as a marketer. Your intuition about what your consumer needs can become overcomplicated.” For Calum MacDougall, SVP Marketing, Jabra, all the biggest threats and opportunities for marketers in 2016 can be traced back to the collision of business models in the digital age. He said: “There is a great level of convergence in product categories, and the breaking down of traditional product structures, It drives you back to the core of discipline in marketing; the need to get much closer to the consumer and to understand them better.”
The importance of cyber security Whatever sector you are in, we are increasingly living in a connected world. From social media networks to personal finance, and mobile phones to computerized homes, as the Internet of Things (IoT) becomes a reality, the number of associated opportunities and risks has grown.
as “a great sort of drama,” noted Hugh Burkitt, CEO, The Marketing Society. He warned it was just the latest data breach that had been reported in the press as “very bad management”.
Pete Markey, Chief Marketing Officer of the Post Office, was sympathetic to TalkTalk’s The McKinsey Global Institute predicts predicament, but called it the “harsh the IoT will generate up to $11 reality of the world we’re now in”. trillion in value to the global He added: “Very quickly a brand economy by 2025. Cybercrime, can go from being somewhere in its many forms, has a huge to being somewhere else, and potential to impact businesses so too can the share price. I in 2016, and poses a real and think viewing brands in 360 distinct threat to marketers degrees, and not just from a predicted added value by the dealing in personal data. communication perspective, is a IoTto the global economy huge challenge for marketers.” by 2025 These risks were highlighted in the UK last year, when the telco and Regardless of sectors or geography, internet access company, TalkTalk, had one common theme that came up a high–profile data breach. It was initially feared repeatedly throughout our 24 Hour Global the sustained attack on TalkTalk had exposed Conversation focused on the expanding remits information on all its four million customers. and responsibilities of core marketing teams. Despite this being later scaled back to 157,000 Andrew Cocker, Senior Marketing Director, users, the damage to brand trust had been Expedia, noted: “It’s not about advertising. Our done, and could yet prove more costly than the brand is made up of every single iteration that’s estimated £35 million the company accrued in happening, every user experience. So, every one–off costs. time we do something to upset them, or have a It all played out in the ensuing media coverage problem we do not solve quickly enough, we’re
$11tr
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The importance of cyber security
eroding that brand, and no amount of advertising will fix that.” Few were surprised when cyber security took centre stage at the World Economic Forum in Davos at the start of 2016. Cyber attacks were singled–out as the greatest risk to doing business
“Very quickly a brand can go from being somewhere to being somewhere else, and so too can the share price. I think viewing brands in 360 degrees, and not just from a communication perspective, is a huge challenge for marketers.” Pete Markey Chief Marketing Officer the Post Office
in North America, followed close behind by data fraud, in WEF’s Global Risks Report 2016. Speaking in Davos, Gavin Patterson, Chief Executive of the UK’s telco giant BT, revealed the
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frequency of attacks on his company alone had rocketed to ‘hundreds of thousands’ a day and have increased by 1,000 percent in the past 18 months. For a global IT solutions company like Dimensions Data, cyber security now represents the greatest threat in the world to most businesses. Ruth Rowan, Group Executive – Marketing of Dimension Data, said: “Our customers trust us with their data, and if we’re going to collect and store data and use it, we have to make sure that we can do that responsibly, and that now unfortunately includes keeping that data secure and safe. “So, in the same way physical security has been a focus for many people in the transport and service industry for years, the greatest threat now to most companies is cyber–security. “Working in the industry that helps provide that kind of security, one of the biggest worries I hear among CEOs, not just CIOs today, is about protecting the client data that they have, which ultimately helps protect their own reputation.”
The collaborative economy
As things converge, new business opportunities arise. The trend is for groups to become more streamlined while providing more connected services. This means companies are relying less on owning physical assets in favour of harnessing or partnering with existing companies or services. So, Uber is the world’s largest car service, despite having no cars, and Apple is a major player in the cloud space but actually rents capacity on demand from others’ servers. As a Marketing Consultant, Steve Walker, noted: “Companies are no longer capable of doing everything themselves, we have to collaborate and partner with other companies. There is a different type of mind–set that people need to adopt, think first about working with others, rather than trying to do everything yourself.”
“There is a different type of mind–set that people need to adopt, think first about working with others, rather than trying to do everything yourself.” Steve Walker, Marketing Consultant
It’s a view shared by Guy Parsonage, CEO of strategy brands solutions agency Fluid, who said: “The business challenge is around trying to offer a very broad range of services under one roof, and to sell it with clarity.”
some quarters to bringing creativity in–house. Harris said driving this change is the search for efficiencies, and “finding new and innovative ways to make smaller budgets go further”.
Emma Harris, the former Sales & Marketing Director of Eurostar and Founder of brand and people consultancy Glow, noted a movement in
Others have adopted a roster approach, where agencies of different persuasions are encouraged to work together from the outset. Recognition
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The collaborative economy
of this shift has led to Sir Martin Sorrell’s WPP adopting a “horizontality” approach to servicing a growing number of global clients – with the view being if collaboration is key to clients, best to keep the portfolio of agencies within your own marcoms group as much as possible.
“Everyone in an organisation is responsible for the brand’s story... The importance of great brands is made throughout the business, not just the marketing department.” Pete Markey Chief Marketing Officer the Post Office
Feng–Min Chien, Managing Director, Principal Consultant, FMC Marketing Consultancy and former Managing Director and Head of Marketing, Asia Pacific at BNY Mellon, said: “Creative agencies and media agencies will need to work hand–in–hand to deliver customized solutions for each individual client, and that’s how we can help customers win… being innovative
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in design in media planning and creative design together.” Julian Boulding, President and Founder of thenetworkone, is focused on providing “open source” marketing services from independent agencies, for international companies, ranging from Bacardi and Dyson to Johnson & Johnson and Rosetta Stone. For him, agile companies are the best placed to succeed during this time of change. He said: “I’m having to juggle bigger teams on each client activation. I need to borrow skillsets from other consultants, so it’s becoming a much broader business consultancy play. We’re solving that by having relationships with other groups, like PwC who help on the digital transformation component and the business strategy of the implications of that, and then we can execute on the digital and creative for that.” Improving internal collaboration within teams and divisions was also singled out by some participants in the 24 Hour Global Conversation to better adapt to change. Nevine el–Warraky, Group Managing Director of Brand Learning, said: “Customer experience is one of the biggest drivers of building advocacy and loyalty with people. Therefore, enabling organizations to work cross–functionally in a holistic manner, to deliver a seamless experience for the customers, is important.” Pete Markey, Chief Marketing Officer, Post Office, agreed, noting that everyone in an organization is responsible for the brand’s story. He said: “When a customer pokes it, prods it, experiences it, from the good and the bad, do you come out smelling of roses, or smelling of something else? The importance of great brands is made throughout the business, not just the marketing department.”
The talent hunt continues
Another perennial challenge that continues to loom large in the minds of marketers in 2016 is the need to broaden their skill base, both in–house and among their partners. Today’s marketing operations need to combine the technical orientation of a project manager and data scientist with creativity and the big picture view of a business strategist. For Annabel Venner, Global Brand Director at Hiscox, ensuring she has the right people with the right skills is top of her challenges this year. “We currently have about 80 marketers across all our business units, and the skillset required is changing dramatically,” she says. “It’s about how do we continue to attract really great, smart people to our business. At the same time, how do we keep on top of the right structure and upskill the staff ?” Andrew Warner, VP Marketing at jobsite Monster, said the business has responded to the specialism versus generalist dilemma by restructuring around centres of excellence, that reflect the same key pillars as the core business strategy. For others, the ability to adapt is now key. “You would have been hired as a Senior Marketer in the past because of what you knew, or who you knew…Today you get hired because of what
“It’s about how we continue to attract really great, smart people to our business.” Annabel Venner Global Brand Director Hiscox
you’re willing to learn,” said Julian Boulding, President and Founder of Thenetworkone. Other participants highlighted the fact there’s often a generation gap between marketing professionals and those they are communicating with. In addition, senior marketers are usually experienced in more traditional media, but untrained in newer digital channels. Todd Handcock, CEO Asia Pacific and Global Head of Marketing at Tag Worldwide & Williams Lea, said: “Empower the new millennials to
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The talent hunt continues
create news ways of thinking, tap into that but at the same time, don’t throw out the rule book of what you’ve learnt over the last 30 years.” Pete Markey put his global team through a digital marketing academy to ‘up–skill’ them in digital marketing. As he explained, “They’ve fallen into digital marketing, they used to do direct marketing or outbound and suddenly they’re doing social media, search, affiliates and email.” Whether to build an entirely new team, or train existing staff was a common dilemma for our participants. For Dominic Grounsell, the answer was “very much both”. He said: “We’ve been
“They expect you to deliver a full experience of that brand too. If you don’t deliver what you promise, then as a brand, the emotional connection disappears.” Riccardo Brenna Head of Marketing and Insight Sony Mobile
hiring progressively for the past twelve to eighteen months to build a new digital division. We’ve
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The talent hunt continues
gone from virtually nothing to about 80 people, who are very much digitally orientated. “We’ve also got a very big legacy base of employees, of about 7,000 around the world, whom we are trying to upscale, maybe not necessarily in digital skills because they don’t need it, but certainly a digital mind–set. Everybody needs to be aware of the transformation that we are driving as an organization.” Most marketers involved in this year’s study conceded that talent recruitment and retention is a constant challenge. Despite the digitization of the industry, the emotional and human side of the business should not be forgotten. Susan Griffin, CMO Branding and Marketing at researcher Brainjuicer, noted: “The choices that consumers generally tend to make remain very emotional; market research needs to evolve in order to figure out how to measure the emotional reaction of the consumer. Most market research tends to ask people explicit questions, talking to their rational brain. What we’re finding is that brands need to make consumers feel something.”
marketers in 2016 are in a strong position. He said: ‘I think good marketing always justifies itself. There is pressure to make sure that you’re always measuring what you do, but we need to get over this hang up of thinking nobody loves us. Everybody loves us; just take a look at the City and look at multiples that investors place on great brands. We just need to use the language to properly engage people who work in that world.’ Elsewhere, Emma Harris, Founder of Glow, highlighted a strong movement in London to try and increase the diversity within the agencies to better reflect and represent today’s consumers. The truism that organisations still tend to recruit in their own vision looms large, but is something Harris believes there is a real appetite to change. She said: “I’m a bit fed up with going to dinners and events where the only people of colour are the ones that are serving the food. You know, 40 percent of London’s not white and the BAME market is expected to grow ten–fold in terms of their buying power in the next five years. So, as a creative industry trying to connect with this massive audience, there’s a huge business case for it, in addition to the ethical case for it.”
Riccardo Brenna, Head of Marketing and Insight at Sony Mobile, said that as the mobile category has become more commoditized, purchases have become more emotional. He added: “The reality is that when people approach a brand, they expect you to deliver a full experience of that brand too. If you don’t deliver what you promise, then as a brand, the emotional connection disappears.” Steve Wilson, Global Partner at Shirlaws Group, a company that helps secure funding for SMEs (small and medium-sized enterprises), is confident
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