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McKinsey Insights & Publications webinar | February 20, 2015 Five keys to unlocking growth in marketing’s “golden age”
New trends shaping marketing today Consumer power Explosion of digital Fragmentation Always on Personalization Data, data,data!
This is the dawn of a new golden age of marketing McKinsey & Company | @McKinsey @McK_MktgSales #McKGrowth 2
Science Story Speed Simplicity Substance The 5 S’ of the new golden age
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
Science: Better decisions to increase impact Avg. profitfor promotedproducts up 288% Retail company
Science: Better decisions to increase impact International industry player 100,000 price points reset 500 SKUs 1.3 million transactions Analytical rendering
Science: Better decisions to increase impact vs. Art Science Wrong debate
Science: Better decisions to increase impact Art Science Wrong answer
Art Science Craft Science: Better decisions to increase impact
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
Substance Moving beyond messaging to shape the substance of business
Differentiation Substance: Shaping substance of business
Substance: Shaping substance of business Energy company Customeronboarding 7 steps 2 steps
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
Story: Better storytelling for emotional connection What makes a good story hasn’t changed. HOW to tell one has.
Story: Better storytelling for emotional connection
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
Speed A culture of urgency has placed emphasis on speed and agility
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
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
Simplicity: Simplify to execute Speed and agility require relentlessly focusing on simple
Expanding geographic footprints Product and channel proliferation Digital and technology specializations Hierarchies, silos, gaps, redundancies Simplicity: Simplify to execute
Complex: Disparate HQs and teams Simplified: Single team mapped to customer ourney Consistent brand experience Simplicity: Simplify to execute Daimler Customer journey Before After
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?
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