TRANSPARENCY - MATURITY - PRIORITY - IMPROVEMENT - ALIGNMENT
Marketing Operations DNA provides the base information required to become excellent in marketing operations.
TRANSPARENCY MATURITY PRIORITY IMPROVEMENT ALIGNMENT
MO:dna Making marketing count
Marketing Operations DNA provides the base information required to become excellent in marketing operations.
Disclaimer: We use reasonable efforts to ensure that accurate information is provided in this report, but do not guarantee such accuracy, and make no representations regarding the use or results of use of any content on this report in terms of its accuracy, reliability or any other matter. Â All information provided in Marketing Operations DNA is intended solely for general information purposes and we cannot take responsibility for the results or consequences of any attempt by you to use or adapt any of the information in Marketing Operations DNA, including, without limitation, any financial analysis, savings or investment summary, labor savings, production increases, scrap reduction savings, annual profit increases or other miscellaneous savings.
Our organization, nor any of its sponsors, individual contributors or system operators, nor anyone who helped develop, create, produce or deliver the content in this Marketing Operations DNA, is liable for any damages related to your use of or inability to use this report, including, without limitation, indirect, incidental, special or consequential damages. This report is delivered subject to the condition that it shall not, by the way of trade or otherwise, resold, hired out, or otherwise circulated without the publisher’s prior consent in any form of binding or cover other than that in which it is published and without a similar condition, including this condition, being imposed on the subsequent client.
Published in the Netherlands in 2012 by MRMLOGIQ B.V. Edition Evans Electronics 2012 04 Copyright Š 2012 by MRMLOGIQ B.V. All rights reserved. For more information contact: MRMLOGIQ B.V., Amsterdam, The Netherlands Authors: Romek Jansen & Frans Riemersma Printed and bound in The Netherlands MO:DNA version 1.0a
3
table of contents introduction
6 - 27
transparency
28 - 37
maturity priority
38 - 47 48 - 57
improvement alignment
58 - 63 64 - 69
conclusions about
70 - 79
80 - 85
definitions
86 - 87
6. Executive Summary 8. Introduction 14. About Operational Marketing Excellence 16. About Marketing Operations DNA 18. About the Respondents 22. 10 Marketing Processes 24. 5 Marketing Resources 26. 1 Marketing Operations 28. Marketing Operations Transparency 31. Materials 32. Manpower 36. Machines
38. Marketing Operations Maturity 43. Maturity by Resource 44. Maturity by Business Unit 45. Maturity by Market 46. Brand Governance Maturity
48. Marketing Operations Priorities 52. Efficiency Priorities 54. Effectiveness Priorities 56. Compliance Priorities
58. Marketing Operations Improvement 61. Improvement Potential
64. Marketing Operations Alignment 67. Alignment by Role 68. Alignment by Business Unit 69. Alignment by Market
72. Transparency 73. Maturity 74. Priority 75. Improvement 76. Alignment 78. Next steps
83. About MRMLOGIQ
87. 10 Marketing Processes - 5 Marketing Resources - 9 Value Drivers 5
EXECUTIVE SUMMARY An Operational Marketing Excellence program creates sustainable value. It creates an environment which lowers the marketing operations investments, increases the generated campaign results, whilst reducing the operational risk associated with not being in control or transparent. Marketing Operations DNA delivers insights in who is involved in the core marketing operations processes, what we currently do right and what we can do better. The outcomes of the assessment provide us with the base information that will help us to become excellent in our marketing execution.
introduction
EVANS ELECTRONICS* is founded in the UK in 1982 by Victor Evans. After the successful launch of the well known CoolBlueTM cooling series, new Household Appliance lines were launched and quickly followed by the Personal Care segment. Over the years the product lines have expanded with the business units Sounds & Vision and Mobile making use of the advanced CoolBlueTM touch screen technology. Recently EVANS ELECTRONICS entered the Health Care market. Due to increased competition, expiration of patents and economical challenges, EVANS ELECTRONICS has decided to defend market share in Household Appliances and Personal Care and grow to top 5 positions in Sound & Vision, Mobile and Health Care. A strategic initiative called 4E, “Effective & Efficient Evans Electronics”, was set out by the Executive team. Within the next two years the marketing function will design and implement the 4E concept and took the first step with the MO:DNA survey.
Transparency and Maturity of resources
Within the Evans Electronics marketing organization it is likely that “on time delivery” is problematic, since many teams and suppliers are involved in the same parts within the marketing execution processes, namely the creation and production of predominantly offline marketing materials. It is probably impossible to create an instant overview of the status of marketing activities with the use of MS Office tools only. The average maturity of the marketing resources and processes is low (2.5 out of 5). With the strong customer driven focus of the large trade marketing work force the physical and digital distribution processes of marketing materials have the highest maturity. The ordering and production processes of marketing materials rank second highest in terms of maturity. But it comes with a price, a large amount of suppliers and marketers are involved in these processes.
Priority, Improvement Potential and Alignment
In the case of marketing efficiency and effectiveness both ‘Process Cycle Time’ and ‘Customer Relevance’ have a high priority and improvement potential. Looking at role, Business Unit or market, all agree on the same improvement potential. The very opposite is true for the alignment of priorities. This indicates that there is a limited capability to roll out strategies throughout the organization down to the lowest operational levels. The Business Unit Personal Care matches best the overall priority and improvement potential. In terms of markets, the UK matches best the overall priority and improvement potential.
Where to start?
The consolidation and standardization of marketing materials across all business units and markets is recommended to create a balanced media mix, more relevant to the customer. As for the creation and production of marketing materials the roles and responsibilities should be redefined and distributed across the markets and Business Units to effectively roll out new strategies and to avoid delays in cycle times when delivering marketing materials. This new operating model for the marketing supply chain should be accompanied by a higher level of automation for the actual creation of marketing materials as well as the planning and budgeting of marketing activities. It is recommended to start with the business units and markets already closest to the end goal. This will set the example for the other units and markets and increase the learning curve. The Business Unit Personal Care across markets or the UK in particular match best the overall priority and improvement potential, Process Cycle Time and Customer Relevance.
* EVANS ELECTRONICS is an non-existing company. It is founded in our imagination with the objective to show you the potential of streamlining your marketing operations and applying MO:DNA. If EVANS ELECTRONICS shows resemblance with a real life company this is no coincidence. The situation at EVANS ELECTRONICS is based on a extensive collection of real-life experiences in marketing operations improvements projects. However, it is written with no specific company or vertical in mind and is solely used for explanation purposes.
7
introduction
9
then
Back in the days communication lines were straightforward. There was no need for a Marketing Operations function.
now
Nowadays communication lines get strangled in a web of information transactions. We need a Marketing Operations function. 11
our Marketing Operations DNA?
What is
DNA defines who It is at the
core of all life.
If there is a
Can we Are we
we are.
fault in the DNA, survival and growth are at risk.
rely on our DNA?
ready and equipped for the challenges ahead?
Marketing Operations DNA gives us the insights on where we are So we can see where we can become better More scalable, more flexible and more
today.
tomorrow.
competitive.
13
ABOUT operational
marketing excellence Understanding the value drivers
Marketing has never found itself in a more challenging and promising decade. There are more competitors, more products, more brands, more media channels and more regulations than ever before. Basically everything increases, except the budget. Operational pressures and complexity drive many marketing departments to the edge of sanity. And sometimes beyond. On the plus side, there are new techniques, methods and specialized marketing technology available that tackle some deeply-grained issues around marketing: its role within the organization and its ability to deliver efficiently and effectively. Turning the challenge into an opportunity means aligning the long-term vision and the short-term solutions across the marketing supply chain. The secret of safeguarding this life-time opportunity lies beneath the surface, the 80% of the marketing iceberg, in marketing operations.
Marketing Operations DNA clusters the operational priorities around the 3 value drivers of Operational Marketing Excellence:
Marketing Efficiency
Driving higher results through smarter allocation and use of marketing resources, lowering the investment.
Marketing Effectiveness
Allowing higher results through a better infrastructure, enabling right time, right place, right offer capabilities, increasing the return.
Marketing Compliance
Facilitating risk management by a better controlled marketing infrastructure and by delivering output according to guidelines regarding brand, finance and legal, thus lowering the risk.
“While strategy is the differentiator for creating competitive advantage,
operational efficiency is a prerequisite.”
Michael Porter Many marketers focus on marketing strategy – branding, positioning, segmentation, tone of voice – neglecting operational marketing efficiency. Marketing Operations DNA delivers the base information to help us
operational marketing excellence.
focus on
15
20% Strategy & Creative
80%
Operations & Processes
about
marketing operations DNA Understanding the chapters
1. transparency Which resources do we use?
2. maturity How mature are the resources we allocate?
3. priority Which value drivers do we rank highest?
4. IMprovement Which value driver has the biggest improvement potential?
5. ALIGNMent To improve our ability to execute marketing activities and campaigns, we need to know where we are, where we want to be and how to get there.
Do we agree on value drivers and improvement potential?
Marketing Operations DNA brings the 80% of the marketing iceberg to the surface in 5 chapters.
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About the
respondents
Understanding the Marketing Operations DNA respondents All the data in this document are derived from a marketing operations survey we executed amongst the people actively involved in our marketing processes.
MO:DNA-IN 1. respondents & locations
UK 3344 34
BeNeLux 12
SPIF
DACH
CEE 10
21
14
Statistics on the survey Start date:
01-04-2012 End date:
22-04-2012 Number of invitations sent:
100
Number of respondents:
91
Total number of months of knowledge contributing to this assessment:
Conclusion: Over 1/3 of the respondents operate from the UK. DACH comes in second place followed by three markets almost equal in amount of respondents (SPIF, BeNeLux, CEE).
1533
Average number of months in role:
17
MO:DNA-IN 2. respondents & Business Units
MO:DNA-IN 3. respondents & roles
2
Marketing Director Marketing Manager Operations Manager
26 1
Production Manager Healthcare
6
Household Appliances
24
5
Creative Designer
4
Content Creator
4 13
Online Marketer Mobile
13
Trade Marketer 32
Personal Care Sound & Vision
16
Conclusion: Most respondents work for Personal Care followed by Household Appliances.
Database Marketer Other
29 3 4
Conclusion: 2/3 Of the respondents work as a Trade Marketer or Marketing Manager. 19
10 Marketing Processes + 5 Marketing Resources = 1 marketing operations Paul Isakson
“People. Process. Input. If you want to create new outcomes you’ve got to change at least one of them.”
21
10 Marketing Processes Where can we change people, process or input in our marketing function? Using the 10 Functional Areas we can easily map our resources. The 10 Functional Areas are 10 Marketing Processes that require different activities, workflows, skill sets, knowledge and technological solutions. They naturally follow the daily marketing communication flow as we create, produce and distribute marketing materials.
Marketing Operations Monitoring & Reporting Process
10. Reporting
9. Knowledge Marketing Operations Management Process
8. Budget 7. Planning
1. Content
2. Publishing
3. Ordering
create
S
4. Production
5. Channel
produce
M
6. End User
Marketing Operations Execution Process
disTRibute
C
R
The 10 Marketing Processes cover three layers, representing the organizational hierarchy. marketing operations execution processes
1. Content
The creation of images, texts, logos, artwork, icons.
2. Publishing
The creation of advertisements, brochures, displays, websites, banners, TV/Radio commercials, flyers.
3. Ordering
The coordination of the order list, defining production volumes and capturing demands for marketing material.
4. Production
The coordination with the production suppliers (such as printers and advertising agencies), Request For Quotation (RFQ), purchasing (media & print), traffic.
5. Channel
Trade marketing activities, e.g. the use and distribution of assets, POP, POS, in store material distribution to retailers/resellers/dealers/wholesale, long tail.
The 10 Marketing Processes naturally follow the daily marketing communication flow because they are based on the SMCR model.
S
Source - The entity wishing to present a particular view of an event or object: you or the brand
M
Message - Signal or combination of signals that form a body of information: an idea or an offer
C
Channel - Vehicle or carrier through which signals are sent: the chosen medium or set of media
R
Receiver - The target, person or thing that takes in messages: the prospect or customer
In between the 4 SMCR elements 3 main processes exist: the creation, production and distribution of marketing materials.
6. End User
Consumer marketing activities; CRM, campaigns distribution directly to consumers.
marketing operations management processes
7. Planning
Management of the production planning; resources planning, calendar, workflow, collaboration, dependencies, alerts, sign-offs.
8. Budget
Management of the budget; allocated budget, committed budget, spent costs, invoices, cost centers, cross billing.
9. Knowledge
Management of knowledge; brand guidelines, procedures, definitions, intranet, best practices, results.
marketing operations monitoring & reporting process
10. Reporting
Management of business intelligence; reports, data mining, Key Performance Indicators (KPIs), scorecards, dashboards.
You can always find these 10 Marketing Processes at the definitions.
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5 Marketing Resources Within these 10 Marketing Processes we use marketing resources. But what exactly are marketing resources? And how many are there?
There are five key resources in marketing. No more, no less.
“What needs to be created, by whom, using which technology, under which budget, in what timeframe?� Answering this central marketing operations question gives us the five-M paradigm: Materials, Manpower, Machines, Money and Minutes. The dynamic between the marketing resources is as follows. Marketing strategies cause the use of Materials to increase. Manpower and Machines transform the Materials into something more valuable. Money and Minutes are under the greatest pressure to be more efficient. In MO:DNA we focus on Materials, Manpower and Machines, with the objective to reduce the use of Money and Minutes.
1.
2.
Manpower
Machines
Materials refers to the physical and digital input and output of the marketing (sub)processes, undergoing the transformation and creating value for the organization.
Manpower refers to all human-related assets across the marketing processes. This covers the number of staff you can deploy (FTE), but also your suppliers, and what their roles and responsibilities are, as well as the proliferation of skills, knowledge and experience.
Machines refers to all technology – hardware and software – used in the process. This resource may range from capacity at the printer to software technology such as content management systems, automated publishing modules, campaign management tools, CRM, etc.
4.
5.
Materials
Money
Minutes
Money refers to budgets and the way they are allocated and spent.
Minutes refers to the time required to process a task, execute a process or go-to-market.
3.
You can always find these 5 Marketing Resources at the definitions.
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1 Marketing operations 10 Marketing Processes and 5 Marketing Resources come together in 1 Marketing Operations.
The Marketing Operations function needs to strategically coordinate all marketing activities. Only then we can manage our strategy by the minute. When we group and align our resources around the customer we become customer centric. We need to break down the silos, benefit from economies of scale and turn into an integrated organization designed to learn. In summary: we need to align our priorities and resources. Let’s take a look at the transparency, maturity, priority, improvement and alignment of our marketing operations.
27
Transparency Which resources do we use?
29
Marketing Operations TRANSPARENCY
Materials
Our Media Mix and Information Mix Our Materials refer to a mix of Media and Information categories used in our communication with our audiences.
mediA mix Indicates the mix of different media types used across our Business Units and Markets to communicate with our audiences. It ranges from various touchpoints like face to face to Merchandising, Internet, E-mail, Mobile, Outdoor, Print, Radio, Television, etc.
INFORMATION Indicates the different information categories included in our Media Mix. Think about Corporate information, Marketing information, Product information, Financial information, Compatibility information, Legal information, Channel information, Co-branding information, etc.
INFORMATION mix MO:DNA-TR1. % Of publication creators of specific media
MO:DNA-TR2. % Of content creators of specific information
51%
Advertising, Billboards
Channel information
CRM, CI
Co-branding information
28%
Merchandising, Events Mobile
63%
Print, Brochures, Flyers
TV, Radio Web, Microsite, Banner
66% 43%
Corporate information
81%
Financial information
69%
8% Legal information
Social, Blog
11%
Compatibility information
6%
POS, POP, Displays, In store
SEO
57%
11%
33%
28% Marketing information
34% 40%
Conclusion 1: Most respondents are involved in creating ‘Print, Brochures, Flyers’, followed by ‘POS, POP, Displays, In store’.
Product information
90% 94%
Conclusion 2: Many respondents are involved in creating many types of content. In content creation there are many generalists. 31
Manpower our teams
Our team members play different roles in the daily marketing communication processes across the 10 Marketing Processes.
You can always find these 10 Marketing Processes at the definitions.
MO:DNA-tr3. marketing processes & roles
10. Reporting
2 Marketing Directors 14
3 Database Marketers
Marketing Managers
9. Knowledge
8. Budget
2 Marketing Directors
23 2 Marketing Marketing Managers Directors
2. Publishing
1 Marketing 3 Others 17 Director Marketing 4 Managers Production 13 Online de 2 Creative Managers 4 Creative 26 Tra Marketers Designers ters Designers Marke 4 Content 20 Trade 4 Others Creators 11 Marketers Online Marketers
1 21 Production Marketing Manager 4 Content Managers Creators
13 Online Marketers
1 5 Operations Production Manager Managers
2 Database Marketers
6 Online Marketers
26 2 Marketing Marketing Managers Directors
7. Planning 1. Content
11 Marketing 1 Creative Managers Designer
1 Operations Manager
1 Database Marketer
3. Ordering 16 Marketing Managers 1 Content Creator
1 Operations Manager
5 Production Managers
5 Online Marketers
20 Trade Marketers
7 Trade Marketers
1 Operations Manager
4. Production
1 Operations Manager
17 Trade Marketers
8 Online Marketers
4 5 Others Production Managers
4 Others
Marketing Operations Monitoring & Reporting Process
5 Production Managers
2 Production Managers
7 Online rs Markete
16 Marketing Managers
18 Trade Marketers
1 Operations Manager
4 Others
Marketing Operations Management Process
12 Trade Marketers
5 Productions Managers
21 Trade Marketers
5. Channel
20 Marketing Managers
1 Database Marketer
2 Others
6. End User
12 Marketing Managers
11 Online 4 Marketers Others 5 1 Production 29 Trade Operations Managers Marketers Manager
26 Trade Marketers
13 Online Marketers
2 Others
3 Database Marketers
Conclusion 3: Marketing Managers are involved in operational tasks and Trade Marketers are heavily involved in the creation of content.
Marketing Operations Execution Process
Manpower our suppliers
Our suppliers play different roles in the daily marketing communication processes across the 10 Marketing Processes. You can always find these 10 Marketing Processes at the definitions.
MO:DNA-tr 4. marketing processes & suppliers Data Mine
10. Reporting
Marketing Operations Monitoring & Reporting Process
IntelCore5
9. Knowledge WPPK/ Hartmann
8. Budget
WPPK/ Hartmann
7. Planning 1. Content KingCom Creative
Blue Berry
iCatch
2. Publishing WPPK/ Hartmann ThreeSixty
Meier & Mayer
Socialistas
Marketing Operations Management Process
ThreeSixty
TH!NK digicomm
3. Ordering M.A.C. Fulfilment
Madison
4. Production TH!NK digicomm Rototech
5. Channel
Travertari
WPPK/ Hartmann
PrimaPrint
M.A.C. Fulfilment
Store Steps
Mr. Bricks
6. End User Ad Valvas
Exprezz
Marketing Operations Execution Process
Daily Direct
Conclusion 4: No suppliers support knowledge management. 70% Of the suppliers support the Marketing Operations Execution Process layer. Publishing and production are supported by many suppliers.
33
Manpower our skills & talents
Are we fit to face the challenges of the future? How are the talents distributed within the organization? Is the team more creative than analytical? Do the team members consider themselves to be strategic masterminds or operational wizards? Is the team capable of keeping pace with the changing marketing discipline? Let’s take a look at the Manpower within our organization, all human-related assets across the marketing processes. This covers the roles and responsibilities, as well as the combined set of skills, knowledge and experience.
There are 2 major trends in regards to the resource Manpower: 1. The Creative – Analytical skills and talents Over the years, marketing has gradually shifted from an art to a science. This transition within the marketing field, running parallel with the transition from offline to online media and technological innovations, has sparked a new world of opportunities in regards to customer insights, customized product offerings and return on investment calculations. Marketing has become more analytical. 2. The Strategic – Operational skills and talents Over the years, marketing focus has gradually shifted from mainly generating good ideas to the execution of good ideas. Media proliferation and reduced product lifecycles call for a better coordination and collaboration skills to master marketing complexity. Nowadays on average 70% to 80% of the activities within a marketing department are related to marketing execution. A good marketing execution and a welloiled marketing operations engine have become prerequisites for marketing success. Operational Marketing Excellence has become a must.
Position & Talents
MO:DNA-TR5. talents & skills
How are the roles and talents distributed throughout our marketing organization?
Strategic
The Strategic MasterMind Answering the why, vision, concept, long-term, roadmap, large scale, doing the right thing.
The Operational Wizard Answering the how, tasks, tools, short-term, execution, smaller scale, doing things right.
The Creative Doing the cool, visual, emotional, impetuous, believes, big picture oriented, right brain.
The Analyst Doing the smart, textual, factual, pratical, knowing, detail oriented, left brain.
Analytical
Creative
Role Marketing Director
Operational
Marketing Manager Operations Manager Production Manager Creative Designer Content Creator Online Marketeer Trade Marketeer Database Marketeer
Conclusion 5: Most respondents score high on the strategic and creative scale. Few respondents are involved in analytical and operational tasks. 35
Machines our marketing technology
Our marketing technology solutions supports different areas in the daily marketing communication processes across the 10 Marketing Processes.
You can always find these 10 Marketing Processes at the definitions.
MO:DNA-tr 6. marketing processes & Technology
Indigo
10. Reporting
9. Knowledge
8. Budget
1-2 Many
FTP
Neutron
Marketing Operations Monitoring & Reporting Process
IntelCore5
Connect (MS SharePoint)
COOP
ProClear
MS Excel
7. Planning 1. Content
Site-C
2. Publishing Adobe
Marketing Operations Management Process
MAP
MS Outlook
3. Ordering Madison Square
M.A.C. Fulfilment
4. Production
5. Channel Partner base (MS Access)
6. End User Target Soft
1-2 Many Delphy CRM
Conclusion 6: Budget Management is done in three different systems. Planning is predominantly done via MS tools. Publishing and Production are not really supported by internal systems.
Marketing Operations Execution Process
37
maturity How mature are the resources we allocate?
39
Marketing Operations Maturity
Identifying the current maturity of resources in our processes is essential to estimate our Operational Marketing Excellence growth potential. Striving for Operational Excellence in Marketing is a matter of climbing the maturity ladder. With every step we become more efficient and effective and create sustainable competitive advantage. The Capability Maturity Model (CMM), developed by Carnegie Mellon University, is altered to fit the purpose of MO:DNA and to map marketing processes and resources.
41
The
elements and dynamics in the maturity levels can be described as:
Materials
Manpower
Machines
Level 5.
Level 5.
Level 5.
Level 4.
Level 4.
Level 4.
Level 3.
Level 3.
Level 3.
Level 2.
Level 2.
Level 2.
Level 1.
Level 1.
Level 1.
Marketing material is continuously improved, based on customer result measurements. All material is created according to the marketing plan. It is linked to tactical and strategic goals.
Marketing material can easily and effectively be adapted by marketing management to particular projects according to the marketing plan, without significant loss of quality or deviating from brand specifications.
Marketing materials are well-defined, standardized and consistent. The individual marketing materials are linked to objectives and marketing plan.
Some marketing materials are produced repeatedly, but without guaranteed consistency. The marketing plan is consulted and offers (limited) guidance when there is a request for new material.
Marketing material is created on an ad hoc basis, reacting to requests from the business. Results from previous campaigns are not stored or consulted when new campaigns are created.
Through a controlled and monitored process our roles and responsibilities are improved continuously through incremental steps.
Roles & responsibilities can be guided, controlled and adapted to particular projects, whilst maintaining quality standards.
Roles & responsibilities are defined and documented, which enables the entire organization to execute processes and workflows consistently.
Some roles & responsibilities look similar throughout the organization. Discipline is not strict, but where it exists it may help to ensure that existing processes are maintained during times of stress.
Business is run in an ad hoc and reactive manner. Roles & responsibilities are generally undocumented and in a state of dynamic change.
There is a single interactive enterprise marketing platform, where all marketing-related data can be continuously checked and improved.
The marketing management uses workflow tools and automated data synchronization to control, adjust and adapt data across the organization.
There is one set of technology and software solutions for the entire group. A consistent asset & project administration is established across all teams through a controlled data entry process.
Some technology and software are used by multiple people. Data is shared via a central folder structure. Overviews are created in spread sheets based on templates.
The technology and software used in campaigns differs per individual marketer. Assets are stored in personal folders and can be requested at external agencies. Overviews are created in personal spread sheets.
Maturity by resource
What is the maturity of our resources in our organization? Can we manage our resources more efficiently?
You can always find these 10 Marketing Processes at the definitions.
The average maturity level score per Resource is:
Materials
Manpower
Machines
The average Marketing Operations maturity is:
2,5
MO:DNA-MA1. maturity by resource
Materials Manpower Machines
Content
Publishing
Ordering
Production
Channel
End User
Planning
Budget
Knowledge
Reporting
Conclusion 7: The overall Marketing Operations maturity is 2,5. The Marketing Operations Execution Process layer has the highest maturity level, with an exception for Publishing. Knowledge Management and Reporting are the least mature processes. 43
maturity by business uNit
What is the maturity of our resources across the different Business Units? Can we match good performing with less performing Business Units?
You can always find these 10 Marketing Processes at the definitions.
The average maturity level score per Business Unit is:
Healthcare
Household Appliances
Mobile
Personal Care
Sound & Vision
Healthcare Household Appliances Mobile Personal Care Sound & Vision
MO:DNA-MA2. Maturity by Business Unit
2,0 2,7 2,4 2,4 2,1
1,7 2,3 2,1 2,3 2,2
1,7 1,8 1,7 2,0 1,9
1,0 1,7 1,5 1,7 1,3
1,0 1,7 1,4 1,5 1,3
1,0 1,3 1,0 1,5 1,0
2,7 3,5 3,3 3,4 3,0
2,7 3,1 3,0 3,3 3,0
2,3 3,1 3,0 3,0 3,0
2,6 3,1 2,8 3,3 2,8
2,6 3,1 3,0 3,2 2,9
2,4 2,8 2,8 2,7 2,9
3,3 3,7 4,0 3,6 3,8
3,0 3,6 3,9 3,6 3,8
3,0 3,3 3,7 3,2 3,6
0,0 4,0 3,8 4,0 3,5
0,0 3,2 3,6 3,7 3,7
0,0 2,9 3,4 3,5 3,3
1,6 2,8 2,4 2,3 2,0
1,6 2,2 1,9 2,3 1,7
1,6 1,9 1,6 1,9 1,5
1,6 4,1 2,3 4,0 2,3
1,6 3,7 2,0 3,3 2,2
1,8 3,3 1,7 3,2 1,8
0,0 0,0 2,0 0,0 1,7
0,0 0,0 2,3 0,0 1,7
0,0 0,0 1,7 0,0 1,0
0,0 1,7 1,8 1,9 2,0
0,0 1,4 1,5 1,5 1,8
0,0 1,6 1,4 1,8 1,4
Content
Publishing
Ordering
Production
Channel
End User
Planning
Budget
Knowledge
Reporting
Conclusion 8: BUs are equally mature with an exception for Healthcare, which scores significantly lower. Knowledge and Reporting are partially not covered, especially in Healthcare, Household Appliances and Personal Care.
Maturity by Market
What is the maturity of our resources across the different Markets? Can we match good performing with less performing Markets?
You can always find these 10 Marketing Processes at the definitions.
The average maturity level score per Market is:
MO:DNA-MA3. Maturity by Markets
Content
Publishing
Ordering
Production
Channel
End User
Planning
Budget
Knowledge
Reporting
Conclusion 9: UK has the highest maturity, because of the Channel and End User processes. BeNeLux has the lowest maturity, because of low scores on Content, Publishing, Knowledge and Reporting processes. 45
BRAND GOVERNANCE MATURITY OUR BRAND ORIENTATION
Strong brands correlate with strong business performance. How does the marketing department experience the brand orientation of the company itself? Is Is Is Is
it merely a logotype? the brand a culture carrier that expresses the cohesion between colleagues? the brand used to create trust and drive sales? the brand the backbone of the company, connecting values and logic?
The Brand Orientation Index (BOI; www.brandorientationindex.com) clearly shows that brand-oriented companies are more profitable, have a long-term scope, combine the internal and external perspective in a holistic approach, have executive involvement in marketing and set clear goals.
5 Insights from Brand Orientation research 1. It is profitable to be brand-oriented. The more brand-oriented a company is, the more profitable it is. The most brand-oriented companies have almost twice the operating profit (ebita) of those that are the least brand oriented. 2. Short-term financial perspective and brand orientation do not go well together. Relatively few brand-oriented companies are listed on the stock exchange. One plausible explanation for this may be that the quarterly economic cycle forces many listed companies into a short-term profitability mindset that seldom benefits long-term brand strategy. 3. Combining an internal and an external perspective is a success factor for brand orientation. Most brand-oriented companies have the ability to combine both an internal and an external perspective on brand development. These companies have succeeded in creating a value-driven organization in which the employees are brand ambassadors, while they also have the ability to exploit the brand as a strategic competitive tool on the market. Building a strong brand requires a holistic approach.
4. In brand-oriented companies, brand development is an issue for top management. In most brand-oriented companies the executive management group is very involved and active in various brand-related issues. Decentralized brand responsibility seldom promotes brand orientation. 5. Brand-oriented companies attach considerable importance to setting up targets and meeting them. Successful brand building is characterized by continuity and determination. The most brand-oriented companies therefore attach considerable importance to setting up long-term goals and to evaluating them, for both internal and external brand development.
MO:DNA-MA4. Internal Brand Perception
Conclusion 10: By far the most respondents see the brand as a sales tool.
The brand is a logotype The brand is a visual element. The management team shows little interest in the brand. Brand recognition in the market is limited. We have no defined and/or strong brand values.
The brand is the carrier of the corporate culture Our brand is the vehicle for educating and connecting employees. There is a considerable brand involvement from the management team. There is limited brand recognition in the market, but our internal brand values are highly respected.
The brand is a sales tool We focus more on product branding than on corporate branding. The management shows considerable interest in the brand. Our brand is highly recognized in the market. We have defined brand values, but most people/consumers don’t know what they are.
The brand is the backbone of all operations The brand is the cement that holds together strategy, operations and organization. The management team is highly involved in the brand. Our brand is widely recognized and we have strong and well-known brand values. 47
PRIORITY Which value drivers do we rank highest?
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Marketing Operations priorities
Which value drivers do we rank highest if we look at efficiency, effectiveness and compliance? Each marketing discipline or department within a large organization tends to set goals for efficiency, effectiveness or compliance. Sometimes these goals align with broader corporate objectives. Sometimes they don’t. Each can work against the other: the different functions can create a silo-driven mentality that establishes individual fiefdoms. A more organization-wide collaborative approach will yield better results. Making conscious and holistic decisions on Operational Excellence objectives and selecting priorities helps all parties to work together and create sustainable value.
Marketing Operations DNA clusters the operational priorities around the 3 value drivers of Operational Marketing Excellence:
Marketing Efficiency
Driving higher results through smarter allocation and use of marketing resources, lowering the investment.
Marketing Effectiveness
Allowing higher results through a better infrastructure, enabling right time, right place, right offer capabilities, increasing the return.
Marketing Compliance
Facilitating risk management by a better controlled marketing infrastructure and by delivering output according to guidelines regarding brand, finance and legal, thus lowering the risk.
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Efficiency Priorities Achieving efficiency is primarily aimed at the benefit of the process owner. Marketing Efficiency is the optimal use of marketing resources to create the marketing output. Costs, Cycle Time and Capacity are the main efficiency drivers.
1. Reduce Operational Costs
Operational costs are associated with the resource investments to create and produce marketing materials. These include costs related to HR, creative agency fees, planning, coordination, workspace and systems costs. Operational marketing costs do not include Media buying costs. In some organizations the ratio between Media costs (customer touch points) and Operational Marketing costs (overhead) is called the “the working dollar versus nonworking dollar ratio�.
2. Reduce Process Cycle Times
Cycle time is the total length of time required to complete an entire process. It includes the time taken to perform the actual work, also known as processing time, as well as the task transfers and waiting. Often processing time is less than 1% of the cycle time. Therefore comparing the sum of processing times between the old and the new situation is not sufficient. Reducing cycle times means primarily looking at the waiting, not at the doing.
3. Increase Operational Capacity
Capacity is the ability to do, to perform or to produce. It refers to the size, amount, load and scalability of Manpower (human resources) and Machines (technology systems). In some marketing organizations, higher capacity and higher peak performance are required to handle a growing list of (customized) messages and associated Materials. Accurate capacity ensures that the availability of resources is in line with the current and future business needs and that demand and supply are balanced.
MO:DNA-PR1. Efficiency priorities
REDUCE OPERATIONAL COSTS
16%
58%
25%
REDUCE PROCESS CYCLE TIMES
64%
31%
5%
INCREASE OPERATIONAL CAPACITY
19%
12%
69%
high Priority
medium Priority
low Priority
conclusion 11: 2/3 see the reduction of process cycle times as the highest efficiency priority to fulfill the needs of the internal organization. 53
MO:DNA-PR2. Effectiveness Priorities
REDUCE TIME-TO-MARKET
12%
70%
18%
INCREASE CUSTOMER RELEVANCE
75%
20%
5%
INCREASE CUSTOMER EXPOSURE
13%
10%
77%
high Priority
medium Priority
low Priority
Conclusion 12: 75% indicate that the increase of customer relevance has the highest effectiveness priority to fulfill the needs of the customer.
Effectiveness Priorities Achieving effectiveness is primarily aimed at the customer. Marketing Effectiveness is how well the marketing output meets the requirements of its end customer. Time-to-market, relevance and exposure are the main effectiveness drivers.
4. Reduce Time-to-market
The Time-to-market of campaigns relates to the time required from the start of the marketing concept to the launch of the campaign. If you take the same start date as before the improvement, and launch earlier, a reduced timeto-market results in an increased “sales window”. If you take the same launch date as before the improvement, but start later, a reduced time-to-market allows you to decrease the “response time” to changing market conditions.
5. Increase Customer Relevance
Customer relevance relates to creating an offer that meets and satisfies every aspect of the customer need, and is delivered through a preferred media channel. Nowadays customers are better informed, more savvy and more media-wise than ever before. Improving “right offer, right place capabilities” through marketing operations facilitates a better customer engagement, more customer intimacy, creates context and drives sales.
6. Increase Customer Exposure
Customer exposure relates to the number and frequency of customer touch points. A bigger market presence can be calculated using Gross Rating Point (GRP), measuring the size of an audience reached by a specific media vehicle or schedule. The GRP is calculated by multiplying the percentage of the target audience reached by an advertisement with the frequency they see it in a given campaign.
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Compliance Priorities Achieving compliance is primarily aimed at the benefit of the brand owner and the company as a whole. Marketing Compliance is how well management expectations about marketing are embedded in internal quality standards and procedures, guidelines, processes and technology. Brand compliance, legal compliance and financial compliance are the main compliance drivers.
7. Increase brand compliance
Brand compliance refers to the measures and procedures by which the brand guidelines are directed and controlled. A brand needs to be creative to be distinctive and stand out from the crowd. A brand also needs to be consistent to be recognized, and to be remembered by the crowd. The creative concept needs to be carried out consistently through all aspects of creative production to add value. Brand compliance reduces the risks that the brand is used in a wrong way.
8. Increase legal compliance
Legal compliance refers to the procedures by which legal regulations are applied and controlled. These can be local language laws, laws on company registration information, equal opportunity legislation and accounting laws like Sarbanes-Oxley (SOX) and IFRS. But usage rights on digital assets are also part of legal compliance measures. Legal compliance reduces the risk of campaign recalls or financial repercussions.
9. increase Financial compliance
Financial compliance refers to the procedures by which financial approvals are applied and controlled. Research shows that 20% to 40% of all operational activities within marketing environments go nowhere near serving any strategic or tactical purpose. Through financial approval measures and procedures, budget allocations become transparent, correct, and controlled. Financial compliance reduces the risk that company resources and associated budgets are spent on wrong operational activities.
You can always find these 9 Priorities at the definitions.
MO:DNA-PR3. Compliance Priorities INCREASE BRAND COMPLIANCE
43%
40%
18%
INCREASE LEGAL COMPLIANCE
26%
68%
5%
INCREASE FINANCIAL COMPLIANCE
29%
55%
high Priority
16%
medium Priority
low Priority
Conclusion 13: The increase of brand compliance has the highest priority to fulfill the needs of the company, followed by financial compliance. 57
improvement Which value driver has the biggest improvement potential?
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MARKETING OPERATIONS improvement
Different value drivers have different priorities. According to the respondents, some of the 9 priorities have more improvement potential than others. If we compare the priority list with the improvement potential we can identify the starting point for improvement.
IMPROVEMENT potential estimated impact of marketing operations improvements
You can always find these 9 Value Drivers at the definitions.
Not at all
MO:DNA-IM1. Potential Improvement
Improvement potential is absent. We have clear insight in the situation. We have successfully implemented means and measures to have this topic under full control.
Is there room for improvement to:
Slightly
Reduce Operational Costs
Improvement potential is small. We have a fairly good understanding of the situation. We have done projects related to this topic which have shown pretty satisfying results.
Moderately
Improvement potential is present. We have some sort of understanding about the situation. We have done some projects related to this topic which have shown some results.
Very
Improvement potential is high. We don’t have the situation under control and there are multiple issues. We have not done anything yet to fix this problem, or have done something but with limited results.
Extremely
Improvement potential is rocketing. We have no insight. The situation is out of control. We have not done nothing to fix this problem or previous projects have failed.
Reduce Process Cycle Times Increase Operational Capacity Reduce Time-to-Market Increase Customer Relevance Increase Customer Exposure Increase Brand Compliance Increase Legal Compliance Increase Financial Compliance Not at all
Slightly
Moderately
Very
Extremely
Conclusion 14: The reduction of process cycle times, the increase of customer relevance and the reduction of time-to-market are estimated to have a very high improvement potential. 61
What we do best in our
marketing organization “I happen to have a good relationship with Group Marketing & Communications.”
“It is an interesting business with a lot of competition. We need to be sharp to succeed. I like that.”
Like!
“We have done a lot of initiatives this year! It is never boring.”
“For the first time in 7 years we have a brand book. It looks great.”
“I like the dynamics of being in a sales driven organization.”
“I like the freedom in my role.”
“We are very flexible and take on a lot of pride in fixing last minute jobs.”
“Reverts all the way, all the time.”
“If I need something I have to make it myself. What the UK is creating doesn’t work around here.”
“Retailers don’t know which material is available so they don’t know what to order. Sometimes I wonder if they ever use our stuff.”
Dislike!
“Excel, Excel, Excel! We are turning our backs towards the customer filling in Excel sheets.”
“We are short of staff. We burn people.”
“I would not design the unit as it is now. There are too many people.”
“We are doing the impossible for the ungrateful. Nobody sees. Nobody cares.”
What I suggest to improve in our marketing
organization
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alignment Do we agree on value drivers and improvement potential?
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marketing operations Alignment
Understanding where we are not aligned is vital to succesfully initiate improvements in Marketing Operations. Each discipline within a large organization tends to set its goals in terms of objectives that are specific to that department. Many marketing organizations are managed according to a common sense approach. But in MRM, where creativity meets structure, where finance meets IT and accountability meets that now-or-never market opportunity, “common sense� is rarely the best guide. We need to investigate the alignment of our priorities and improvement potential in relation to roles, product lines and markets.
alignment by role
You can always find these 9 Value Drivers at the definitions.
strategic roles operational roles
MO:DNA-AL2. Alignment of Roles & Improvement Potential
MO:DNA-AL1. Alignment of Roles & Priority Reduce Operational Costs
Reduce Operational Costs
90%
Increase Financial Compliance
80% 70% 60%
4,5
Increase Financial Compliance
Reduce Process Cycle Times
Increase Brand Compliance
Increase Customer Exposure
3,5 3,0
50%
2,5
40%
2,0
30%
Increase Legal Compliance
4,0
20% 10%
Reduce Process Cycle Times
1,5
Increase Operational Capacity
0%
Strategic role
Increase Legal Compliance
Operational role
Reduce time-to-market
Increase Customer Relevance
Conclusion 15: There is a mismatch in strategic and operational alignment in regards to priorities with the exception for ‘Customer relevance’.
Increase Brand Compliance
Increase Customer Exposure
1,0 0,5
Increase Operational Capacity
0,0
Reduce time-to-market
Increase Customer Relevance
Conclusion 16: The strategic and operational teams are aligned on improvement potential. 67
Alignment by business unit
Healthcare Household Appliances Mobile Personal Care Sound & Vision
MO:DNA-AL3. Alignment of Business Unit & Priority
MO:DNA-AL4. Alignment of Business Unit & Improvement potential
Reduce Operational Costs
Reduce Operational Costs 5,0
70%
Increase Financial Compliance
60%
50%
Reduce Process Cycle Times
Increase Financial Compliance
4,5 4,0 3,5
Reduce Process Cycle Times
3,0 40% 2,5 30%
20%
Increase Legal Compliance
Increase Brand Compliance
Increase Customer Exposure
10%
2,0 1,5
Increase Operational Capacity
0%
Reduce time-to-market
Increase Customer Relevance
Conclusion 17: The different BUs have completely different priorities.
Increase Legal Compliance
Increase Brand Compliance
Increase Customer Exposure
1,0 0,5
Increase Operational Capacity
0,0
Reduce time-to-market
Increase Customer Relevance
Conclusion 18: The estimated improvement potential is aligned with the exception for Healthcare.
Alignment by market
BeNeLux CEE DACH SPIF UK
MO:DNA-AL5. Alignment of Markets & Priority
MO:DNA-AL6. Alignment of Markets & Improvement potential
Reduce Operational Costs
Reduce Operational Costs 4,5
70%
Increase Financial Compliance
60%
50%
Reduce Process Cycle Times
Increase Financial Compliance
40%
4,0 3,5 3,0
Reduce Process Cycle Times
2,5 2,0
30%
1,5 20%
Increase Legal Compliance
Increase Brand Compliance
Increase Customer Exposure
10%
Increase Operational Capacity
0%
Reduce time-to-market
Increase Customer Relevance
Conclusion 19: Uk and CEE are significantly misaligned with the other markets in regards to priorities.
Increase Legal Compliance
Increase Brand Compliance
Increase Customer Exposure
1,0 0,5
Increase Operational Capacity
0,0
Reduce time-to-market
Increase Customer Relevance
Conclusion 20: All markets agree on the estimated improvement potential. 69
conclusions & next steps
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conclusions Transparency Which resources do we use? How do we allocate our resources across our processes?
graphs
overall
CONCLUSION 1: Most respondents are involved in creating ‘Print, Brochures, Flyers’, followed by ‘POS, POP, Displays, In store’.
There is a strong focus on traditional offline media, potentially underutilizing the power and synergy of the the online channels and social media.
CONCLUSION 2: Many respondents are involved in creating many types of content. In content creation there are many generalists.
Content creation is not treated as a separate specialization judging by the large amount and variety of roles and people involved. This potentially decreases the quality, relevance and impact of the message.
CONCLUSION 3: Marketing Managers are involved in operational tasks and Trade Marketers are heavily involved in the creation of content. CONCLUSION 4: No suppliers support knowledge management. 70% Of the suppliers support the Marketing Operations Execution Process layer. Publishing and production are supported by many suppliers.
There is a strong focus on the creation of marketing materials using many supporting suppliers but no Print-on-Demand tool. The physical production of materials requires many suppliers, but there is no underlying technology to support the buying and production of materials.
CONCLUSION 5: Most respondents score high on the strategic and creative scale. Few respondents are involved in analytical and operational tasks.
Many are involved in marketing execution, while they regard their skills as strategic and creative.
CONCLUSION 6: Budget Management is done in three different systems. Planning is predominantly done via MS tools. Publishing and Production are not really supported by internal systems.
It is probably impossible to create an instant overview of the status of marketing activities with the use of MS Office tools only. It is likely that “on time delivery” is problematic.
conclusions Maturity
How mature are the resources we allocate? What is the maturity of our resources across the different processes, Business Units and markets?
graphs
overall
CONCLUSION 7: The overall Marketing Operations maturity is 2,5. The Marketing Operations Execution Process layer has the highest maturity level, with an exception for Publishing. Knowledge Management and Reporting are the least mature processes.
The average maturity of the marketing resources and processes is 2,5. Creating marketing materials, Knowledge management and Reporting are the least mature.
CONCLUSION 8: BUs are equally mature with an exception for Healthcare, which scores significantly lower. Knowledge and Reporting are partially not covered, especially in Healthcare, Household Appliances and Personal Care. CONCLUSION 9: UK has the highest maturity, because of the Channel and End User processes. BeNeLux has the lowest maturity, because of low scores on Content, Publishing, Knowledge and Reporting processes. CONCLUSION 10: By far the most respondents see the brand as a sales tool.
With the strong customer driven focus of the large trade marketing work force the physical and digital distribution processes of marketing materials have the highest maturity. With a large amount of suppliers and marketers involved in the ordering and production of marketing materials, these processes rank second highest in terms of maturity. The maturity of the entire marketing execution process is at a level that does not allow for standardization of knowledge or reporting on processes and marketing data. Healthcare does not cover all processes, allowing for the company to run efficiency and compliance risks. UK has the highest maturity, while BeNeLux has the lowest maturity, (re)creating many materials locally.
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conclusions Priority
Which value drivers do we rank highest? According to our strategy, which value driver has the highest priority?
graphs
overall
CONCLUSION 11: 2/3 see the reduction of process cycle times as the highest efficiency priority to fulfill the needs of the internal organization.
While ‘Process cycle time’ is ranked as most important driver for internal improvement, the effectiveness priority is not Time-to-Market’ but ‘Customer relevance’. Reducing process cycle time can lead to increased customer relevance if content is created closer to the live date of campaigns and materials.
CONCLUSION 12: 75% indicate that the increase of customer relevance has the highest effectiveness priority to fulfill the needs of the customer. CONCLUSION 13: The increase of brand compliance has the highest priority to fulfill the needs of the company, followed by financial compliance.
With ‘Process cycle time’ as the most important driver for internal improvement, financial compliance will be a challenge with the current structure. The large amount of people involved in content and materials creation brand compliance is a challenge with the current structure.
conclusions Improvement Which value driver has the biggest improvement potential? Which priority do we believe has the largest improvement potential?
graphs
overall
CONCLUSION 14: The reduction of process cycle times, the increase of customer relevance and the reduction of time-to-market are estimated to have a very high improvement potential.
Respondents agree on the fact that ‘Process cycle times’ are a high priority and have a high improvement potential. If we consider that reducing ‘Time-to-market’ has a high improvement potential, despite its low priority, it will probably improve due to the decrease of ‘Process cycle times’. The relevance of the marketing messages (customer relevance) are perceived also both a high priority and improvement potential. However brand compliance is a high priority, its improvement potential is not regarded very high.
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conclusions Alignment
Do we agree on value drivers and improvement potential? Are we aligned across the different roles, Business Units and markets?
graphs
overall
CONCLUSION 15: There is a mismatch in strategic and operational alignment in regards to priorities with the exception for ‘Customer relevance’.
Regardless of the role, BU or market, all agree on the same improvement potential. The very opposite is true for the alignment of priorities.
CONCLUSION 16: The strategic and operational teams are aligned on improvement potential. CONCLUSION 17: The different BUs have completely different priorities.
There is Business Unit or market that typically represents the overall priorities and improvement potential (‘Reduce cycle time’ and ‘Customer relevance’). This potentially indicates that there is no capability to roll out new strategies throughout the organization down to the lowest operational levels.
CONCLUSION 18: The estimated improvement potential is aligned with the exception for Healthcare.
The Business Unit Personal Care can be considered representing best the overall priority and improvement potential.
CONCLUSION 19: UK and CEE are significantly misaligned with the other markets in regards to priorities.
The UK, and to a lesser extend DACH, are the markets that can be considered representing best the overall priority and improvement potential.
CONCLUSION 20: All markets agree on the estimated improvement potential.
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next steps
1.
Hand out the copies of this MO:DNA booklet to colleagues and key stakeholders.
2.
4.
5.
Set up an internal meeting with colleagues and key stakeholders to share next steps.
Set up an internal meeting with colleagues and key stakeholders and discuss MO:DNA results.
Build the business case using the MO:NPV calculation to assess the potential business value of Operational Marketing Excellence.
3.
Set up a workshop to elaborate on additional MO:DNA data, insights and next steps.
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about
81
about
MRMLOGIQ
MRMLOGIQ is a marketing efficiency company
MO:DNA is an MRMLOGIQ product. It is based on more than a decade of improving marketing operations departments for some of the best brands in the world. MRMLOGIQ streamlines marketing processes and translates marketing strategy into daily tasks and routines. We assist you in improving your marketing operations to guarantee an excellent execution of brand activities and marketing activities. By rationalizing marketing processes and implementation of marketing technology, we help you save substantial budget, reduce time-to-market of materials and improve the quality of your marketing output. Marketing Resource Management is our core business. It is not something we also do; it is the only thing we do. Through the delivery of operational marketing excellence we make marketing count. In every sense of the word.
www.mrmlogiq.com www.marketinggovernance.com
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about marketing
resource management The noble art of getting things done in marketing. Efficiently.
More information about the base concepts, read: Marketing Resource Management – The noble art of getting things done in marketing. Efficiently. Romek Jansen & Frans Riemersma. Available at www.amazon.co.uk.