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Five keys to unlocking growth in marketing’s “golden age”

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McKinsey Insights & Publications webinar | February 20, 2015 Five keys to unlocking growth in marketing’s “golden age”


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New trends shaping marketing today Consumer power Explosion of digital Fragmentation Always on Personalization Data, data, data!


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This is the dawn of a new golden age of marketing McKinsey & Company | @McKinsey @McK_MktgSales #McKGrowth 2


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Science Story Speed Simplicity Substance The 5 S’ of the new golden age


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McKinsey & Company | @McKinsey @McK_MktgSales #McKGrowth 4 “The beauty of marketing today is that we can really show the return. The data allows us to demonstrate impact in a much more transparent way than in the past.” Lorraine Twohill, Senior VP for Global Marketing, Google Science


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Science


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Science: Better decisions to increase impact Avg. profit for promoted products up 288% Retail company


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Science: Better decisions to increase impact International industry player 100,000 price points reset 500 SKUs 1.3 million transactions Analytical rendering


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Science: Better decisions to increase impact vs. Art Science Wrong debate


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Science: Better decisions to increase impact Art Science Wrong answer


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Art Science Craft Science: Better decisions to increase impact


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McKinsey & Company | @McKinsey @McK_MktgSales #McKGrowth 11 Substance “Look what [luxury brands] are doing: they’re building flagship stores that are beautiful, where you actually like to just browse around before you buy. Those are emotional places.” Ola Kallenius, Board of Management of Daimler AG


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Substance Moving beyond messaging to shape the substance of business


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Differentiation Substance: Shaping substance of business


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Substance: Shaping substance of business Energy company Customer onboarding 7 steps 2 steps


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McKinsey & Company | @McKinsey @McK_MktgSales #McKGrowth 15 Story “It’s not [all data]! … If you fall down on the art, if you fail on the messaging and storytelling, all that those tools will get you are a lot of bad impressions.” Lorraine Twohill, Senior VP for Global Marketing, Google


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Story: Better storytelling for emotional connection What makes a good story hasn’t changed. HOW to tell one has.


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Story: Better storytelling for emotional connection


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McKinsey & Company | @McKinsey @McK_MktgSales #McKGrowth 18 Speed “Speed comes from decentrali-zation and creating a local autonomy to take local action.” CMO, Consumer goods company


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Speed A culture of urgency has placed emphasis on speed and agility


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Speed: A culture of urgency to keep up with consumers From To Batch processing Command and control Manual Slow development Continuous delivery Agile Automated Real-time test & learn


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McKinsey & Company | @McKinsey @McK_MktgSales #McKGrowth 21 Simplicity “The growing complexity is unmanageable: in-house vs. external partners, established channels vs. new channels. We need help to get through this jungle.” CMO, Consumer goods company


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Simplicity: Simplify to execute Speed and agility require relentlessly focusing on simple


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Expanding geographic footprints Product and channel proliferation Digital and technology specializations Hierarchies, silos, gaps, redundancies Simplicity: Simplify to execute


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Complex: Disparate HQs and teams Simplified: Single team mapped to customer ourney Consistent brand experience Simplicity: Simplify to execute Daimler Customer journey Before After


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The most important questions to ask Speed Faster than our competitors or slower? Simplicity Simplifying processes or overwhelming with new things? Story Making connections or speaking into space? Substance Differentiated experience or “me-too” selling? Science Today’s insights or yesterday’s facts?


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www.youtube.com/McKinseyCMSOForum @McK_MktgSales McKinseyonMarketingandSales.com @JeskoPerrey Jesko Perrey Senior Partner and Global Knowledge Leader of McKinsey's Marketing & Sales Practice  Jonathan Gordon Leader of McKinsey's Marketing & Brand Strategy Practice  McKinsey on Marketing & Sales @JWGordon Stay Connected


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