What enables some businesses to weather the changing economic climate and the cold wind of market forces, while others wither? The most successful grow income and budgets steadily, while the weakest are left with diminishing income and budgets. Or none at all. Just as Darwin observed, the fittest survive or thrive, and the weak die. While research by Jim Collins and Jerry Porras (1) revealed the benefit of an ambitious, engaging business strategy, however, the role of marketing has received less attention.

Business success factors

Business strategy, and marketing, were first recognised as important in the middle of the twentieth century.

The role of marketing is also best understood by leading consumer goods companies. It is most influential in the most successful businesses, such as Procter & Gamble and Unilever. By contrast the discipline plays second or third fiddle in companies in sectors such as business-to-business (b2b) and utilities.

Marketing is a success factor

The effects of marketing communication campaigns are also well documented. Some show positive results, yet some, negative. Though it is difficult to find empirical evidence to prove how or what aspects of marketing drive business success. Or explain what businesses should do strategically. So we’ve done some research and thus, here, we summarise some ‘hard’ evidence to spotlight the role of marketing.

In 2006 Booz & Company (2) identified that businesses with ‘healthy marketing DNA’ were almost 60% more profitable than their competitors. Further, that those with ‘super DNA’, some 9% of the sample, were 20% more likely to show superior growth. But what is ‘healthy marketing DNA’ and how can it be ‘bottled’?

Here’s a summary of three marketing functional characteristics that correlate with business success:

1. Ability to measure contribution to business growth

In 1955, Peter Drucker wrote ‘what gets measured gets managed’ (3).  Yet in 2005, a CMO Council study of US CMOs (4) revealed that over 80% of organisations had yet to develop meaningful and comprehensive organisational measures or metrics. However, the 20% introducing useful measures substantially outperformed their competitors in terms of revenue growth, market share and profit. Thus, around two-thirds now believe that measuring marketing ROI will be the most important measure of success in the next few years (5).

Yet, many organisations hire marketers with lots of experience in a business sector and then rely on them to ‘judge’ what to do and where to invest. This compounds a perception that marketers are ‘fluffy’. It also compounds that they are unworthy of a seat at the board-room table. While far from easy, success requires measuring and proving marketing activities drive sales and profits.

2. Broad capabilities, scope of operation and ability to influence senior decision makers

In some organisations, marketing operates solely as a communication or promotion department. In others, as a management ‘gopher’, responsible for tactical initiatives, and also reactive to management demands. Organisations with marketing functions that work closely with the CEO, work across the organisation, and also assume broader strategic responsibility, are more successful. Their roles include business analysis and development, product innovation, and also approving large investments. In particular, grasping customer insights quickly, and communicating and making decisions based on those insights across organisation boundaries. Thus better engaging management and employees also enables out-performance.

3. Deep customer understanding, adding value proactively

Successful business development requires deep business, customer and strategic understanding to design, promote and deliver experiences that customers want. Outperforming organisations also invest much more effort in capturing and using customer information to make decisions and foster customer relationships. A further CMO study confirms that market research is the single most important source of information influencing strategy decisions (cited as important by 82% CMOs). It is therefore reassuring that 63% of CMOs believe they can grow their influence by being the voice of the consumer (5). According to CIM, marketers’ influence is also greater when competition is intense and the market turbulent (6).

Marketing Inspiration

So what to do? Unlike the DNA of living organisms, organisational DNA can change. So start your business strategy process by understanding where the business and marketing capability is now, and should be in the future. From The Marketing Directors’ research (7), there are just 14 executive marketing directors on the main boards of the UK FTSE 100 companies. This therefore suggests that the role of marketing is relatively unimportant in 86 of those companies, or that competition is benign. Yet the ability and role of marketing to drive business growth is widely misunderstood.

Effective and superior marketing involves understanding customers and accumulating facts. Also using facts to influence colleagues and make better decisions to advance growth and profitability. Marketers should therefore view themselves as the voice of customers and directors of growth. They should also explain what marketing is, and measure and report on how it drives business growth. Successful marketing simply justifies a marketers’ place in the boardroom.

References

Researching the Halloween market we discovered the market is not as shocking as it might first seem. While the tradition of Halloween originated on this side of the pond, the United States commercialised the event. As a result Halloween is now the third highest revenue producing US event, representing around £4 billion pounds a year.

Halloween market statistics

This equates to a mean household spend of £34 (1). Further, the UK Halloween market was worth a modest £310m (2011), with average UK household spend at just one-third of our US cousins. Yet the UK market has grown at twice the rate of the US since 2005 (1). So what market and product development lessons can we learn in order to grab a slice of the market pie?

Understanding the cultural context and origin of Halloween, different consumers, their needs, drivers and attitudes to Halloween, and the range and nature of Halloween offers and promotions around the world reveals new market and product development opportunities.

What is Halloween?

Halloween is an abbreviation of All Hallows Even, the night before All Hallows Day (All Saints Day). It started out as the Celtic celebration of  Samhain when the Celts believed that the border between this world and the ‘other world’ became thin and allowed spirits (both harmless and harmful) to pass through. All Saints Day was founded by Pope Gregory III (690-784) to remember saints and those that died. It is recognised globally as a time to honour ancestors and departed souls. In addition, wearing costumes and masks originated as a custom to copy or placate evil spirits. Begging for food also dates from the Middle Ages when the poor went door-to-door, seeking food in return for prayers for the dead. So called ‘souling’.

Growing popularity of Halloween

Awareness and interest in Halloween is fueled by popular culture, such as Hollywood movies, The Hollow and Halloween, and cultural crossovers such as Stephanie Meyers’s Twilight – driving interest in the ‘undead’ amongst teen girls and middle-aged mums.

US corporations including McDonald’s, Coca-Cola, Disney and Wal-Mart embrace Halloween as their own. Making it more appealing and accessible to customers. They built Halloween into an event to fill the relatively ‘dead’ period between the Summer and Christmas.  In the UK, Asda Wal-Mart developed the Halloween market and remains market leader with around a 50% market share. Asda’s Halloween event runs for 6 weeks from late September. Much of their merchandise is also ‘own-brand’.

So how can you grab a slice of the growing Halloween market pie?

Understand traditional needs and reveal new needs to inspire ideas

Consumers include both adults and children. Both seek a Halloween emotional experience. Beyond the traditional activities like carving pumpkins or turnips, and apple bobbing, needs include a ‘scary’ experience and to ‘trick or treat’ friends and neighbours. Also to socialise, look cool, be a good host, and of course, entertain. Adults seek gifts to satisfy trick or treaters, items for children’s and their own parties, or a day or night out. Children seek fun ways to spend their pocket-money.

Uncovering, defining and delineating needs, reveals new product opportunities. From confectionery, food and drink, scary stuff to entertainment, games, dressing-up gear and make-up – to go with the pumpkins, skeletons, turnips, and party fare.

Understanding and building on the rituals, such as pumpkin and turnip carving sparks needs for design inspiration, cutters, carving kits, tea lights and other decorative or special effects.

Trick o’treating, prompts needs for mixed bags of sweets. An area increasingly served, for example, by Swizzels Scary Mix, Cadbury Screme Eggs, Haribo and more. Thinking about combining needs, accentuating the emotional experience, stimulating or depriving the senses,  inspires more product ideas. For example, the sense of touch can add intrigue, shock or surprise to the sweet selection process. Using sound, light, colour or special effects adds decorative drama to a room or walk up a garden path.

Emotional and self-image needs such as socialising and looking cool are increasingly important. This is evidenced in, and suggests demand for products for sharing/making together. Also having a laugh, surprising and bonding to more dramatic make-over solutions. Thinking about the broad range of markets where needs could be fulfilled, such as food and drink, games, entertainment, mobile telephony prompts more ideas.

Excite and engage by combining ‘fun’ with terror

Being scared is fun, creating an adrenaline rush is like riding a roller-coaster. Most retail displays incorporate colours and symbols associated with the harvest (orange, pumpkins) or death (black, skeletons, bats). Adding more vibrant colours tones down the scary nature of the offer while providing a cultural signpost inviting people to explore the Halloween aisle. For example, greens, yellows and purples are colours that occur in nature, and cuddly ‘full-of-life’ characters. This year’s Asda theme is ‘Party time’ and ‘trick or treating’. While bats and skeletons abound, the aim is to engage and encourage partying rather than frighten away.

Looking overseas to mainland Europe, parts of Asia and Latin America provides further Halloween market insights and product ideas. Auchan in France takes the ‘fun’ a step further by hosting live entertainment – both to attract traffic as well as enhance the brand.

Halloween Marketing Inspiration

Successful Halloween marketing and product innovation requires clear understanding of the market, cultural and psychological variables. Using market research or alternatively, a few simple thinking tools helps better understand and interpret what consumers think and feel. And thus better reveal new needs and product opportunities.

Utilising Halloween colours, symbols, artefacts and rituals further helps match deep cultural and emotional needs. Thus stimulating demand, and enabling more inelastic pricing.

The insight and ideation tools applied to understand the Halloween market apply any market, occasion or consumer experience. Try them out and you may even shock yourself ;-).

References

(1)   The Marketing Directors’ secondary research and analysis based on various trade sources, the ONS and US Bureau of the Census.

I love posters! They epitomise great marketing communications. Like all communications they must clearly impress. However if viewed from a speeding car, the message must be recognised and understood in milliseconds.  From a technical point of view this therefore requires a single-minded (and hopefully matching) marketing communication strategy and execution. Engaging and motivating via this medium also presents a myriad of creative opportunities.

With consumers exposed to an increasing panoply of media, and over a 1000 messages a day, the task of developing great marketing communications is more challenging than it has ever been.

There are two key elements to great marketing communications. The first is the message, and the second is the medium through which to communicate the message. Here we’ve gathered some of the best outdoor marketing communication campaigns. Why? Simply because they can be easily illustrated, reviewed and used to make a point in a blog!

Some of the Best Outdoor Marketing Communication Campaigns

How great is your marketing communication?

Here’s a checklist to consider when creating your next advertisement (poster or otherwise):

Marketing Inspiration

References

(1) Packard, Vance; The Hidden Persuaders (1957)

Should writers and illustrators lead tv programme development? Or researchers and marketers who know what sells best in the crazily competitive world of children’s media? According to Simon Cowell, “Research just kills creativity because people lie or they say things they think the person wants to hear, or they over think it”. But is he right? Here’s a summary of the debate at The Children’s Media Conference (1). Moderated by Guy Tomlinson, Managing Director, The Marketing Directors, the session involved John Rice, CEO at Jam Media, Esra Cafer, Vice President Brand Management and Marketing at Chorion Ltd and researcher, Shari Donnenfeld.

Different views on TV programme development

It’s all about serendipity – John Rice, Jam Media

According to John, the ideas behind Jam Media’s successful children’s programmes emerged in different ways. By serendipity – happy accidents!

PICME started out as a multimedia invitation for John’s daughter Rebecca’s two year birthday party. One friend was so enthusiastic about it that he even offered to pay for it.

Roy, the Badly Drawn Boy was created in the opposite way to PICME. The film originated by John’s partner as a parody of his life; as a bitter 28-year-old who couldn’t find work in animation because he was so badly drawn. A CBBC development executive spotted the idea and thought that the fish out of water theme appealing to the CBBC audience. In the tv series the bitter 28-year-old is turned into fun loving everyday boy.

Tilly and Friends evolved from a series of stories by Polly Dunbar. By bringing in a child psychologist the story world expanded from 16 pages to 26 episodes!

Use research to create and support – Shari Donnenfeld, Researcher

Shari argued that research should support the creative process, as the process is complex. There are also lots of fingers in the creative pie, and it is easy for creatives to be removed from a child’s world.

Many creatives think they know kids, yet they are adults, who use razors and drink alcohol. Some are also parents who care for kids. There are however also some creatives who act like kids, but even if they do, they still don’t necessarily know what kids are about.

Children inhabit a different world, a more digital world than their parents. They are exposed to multi-million pound movies, games, e-books and ipads. It is hard to know what’s in their heads at a point in time. The sons and daughters of creatives inhabit an even more different world to ordinary kids. A world where words like 3D and CGI are regularly passed over the dinner table. As a result these children are neither normal nor representative.

Further, unlike live entertainers, tv programme makers are unable to adapt to live audience responses. A clown, for example, can easily change his or her act if he dies on his feet. However, programme makers can’t. So programme makers need to think like the clown and go and talk to children first.

Doing research with kids is like inviting them to the board-room table. They can help create a programme, while not heading the table. However, even though children are a worthy audience, research should facilitate creativity rather than act as a barrier to creativity or simply to ‘green-light’ programme development. Kids are naturally created and enthusiastic – so involve them as partners in the creative process.

Think about building brands – Esra Cafer, Chorion

Esra argued that there is a value in using brand management in the making of tv programmes. Brand marketing is a process to define the target, the programme and product offer. Also to communicate that offer to audiences and forge an enduring relationship. In other words to create brand love!

Chorion starts with characters, settings, worlds and stories already in place. It aims to understand, create, update, and extend brand properties to make sure that audiences love them. Rather than just translate the written word to the screen, research understands and defines the brand, the brand DNA, i.e. what makes it unique and appealing. Rather than dampen creativity, brand thinking reveals new opportunities and maximises relevance.

Make Way for Noddy has a traditional preschool audience of 3 to 5 year olds. So when developing Noddy in Toyland, research verified the audience, who they are and what they want. Findings revealed an audience that was growing-up and moving on to competitive products, such as Moshi Monsters, sooner than thought. This insight focused programme development on 3-4 year olds.

Research also spotted opportunities to extend the brand. It revealed that Noddy is a safe brand, to use in home, and not to show off to friends. This provided the confidence to focus on developing home products such as bedding and pyjamas, rather than lunchboxes or coats.

TV Programme Development Inspiration

Each programme development project is different. Some require more creativity and others more research. What’s right depends on the stage of development and whether more or less is known about the intended audience. Thus use creativity, research and marketing together – they are fine bedfellows!

1. Development is the most important part of the creative process

Get this right to establish a foundation for success. Further, for every show in production, have several in development. As innovation is a numbers game, this allows some to fall by the wayside.

Also create the right conditions for creativity to flourish.  While great ideas occur over a pint of Guinness or through sheer hard work, creativity is not limited to writers nor bottled and poured on. So prefer a more inclusive approach involving different disciplines.

2. Apply simple marketing principles

In other words, enable your audience to fuel creativity and be the main arbiter of choice. You’ll find this liberating!

3. Tailor research to circumstances

First, adapt the research process to reflect property origins, differences, challenges, risks and rewards.

Start by involving marketers and researchers at an early stage (via a short low-cost meeting). This will better represent target audiences’ needs, eliminate biases and also generate more saleable ideas.

Next, conduct informal research with family members and friends by showing programme materials before more substantial laboratory-esque research. And then talk to the trade and licensing people, for example, to understand cultural issues and what works in certain territories.

Finally, design audience research to fuel the creative process rather than evaluate or dampen it! Avoid closed questions such as “don’t you love this green dress?” as this invalidates the results.

4. Create a compelling pitch

Also use research to shape the brand strategy or ‘brand book’ and guide writers, illustrators and animators. Help all know the audience, and their needs. This empowers creatives to make the pilot and develop the series while retaining management control.

Create two scripts, a ‘brand book’ and a pilot to justify brand stand-out and appeal and also woo co-funders. While every tv programme development differs, the end game is the same – to secure funds.

References

(1)  The Childrens Media Conference takes place annually in early July in Sheffield.

It is a downer returning home from your holidays. You know all good things come to an end. You also expect a tedious wait at the airport and a tiring journey home.

So it was with squeals of delight that we discovered the Bubba Gump Shrimp Company at our departure airport. “That’s the company founded by Forrest Gump” shouted the little one. It is a fabulous brand development story.

The Bubba Gump Shrimp Company

The neon sign first caught the eye. It shouts all American and come and look at me.

Bubba Gump Brand Development

So what could a company that originated in shrimp fishing possibly have to offer? Lots more than we imagined. Firstly, merchandise. The little one tried on a snug- fitting t-shirt emblazoned with the company logo. In a trice she became a cool able seaman on Bubba’s boat. Then we found some shrimp plush toys. And lots of sporting goods including football jerseys, water bottles and also table tennis bats. All stuff connected to the Forrest Gump film. And also based on the novel of the same name by Winston Groom. As a result, the miscellany of stuff and colourful displays were irresistable.

Some Forrest Gump Sayings

So we had to discover more. The diner itself was like a shack. Wooden beams held up a corrugated iron roof. In addition, three different ‘rooms’ decorated with US car number plates and signs also outlined simple morals or beliefs:

“When all else fails, try doing what the captain suggested”

“A promise is a promise”

“If the customer wants vanilla, give him vanilla”

The Bubba Gump Brand Experience

To get the waiters’ attention, we waved a “Stop Forrest Stop” sign. And when we were happy, we then displayed the sign “Run Forrest Run”. We ordered “Bubba Gump’s Shrimp Heaven”. The choice was essentially shrimp or shrimp. Either boiled, broiled, fried, baked, sauteed, steamed or barbecued. But hey that’s the difference. The coconut shrimp were divine as were the shrimp balls.

With the family engaged, we enjoyed a happy hour reliving and conversing about the film. As the little one remarked; “this would be a great place to go with a first date.”

Marketing Inspiration

Every great business or brand starts with a great brand strategy or idea. The idea behind the Bubba Gump Shrimp Company are the characters and also the content of the film and novel. From the Forrest Gump story thus emerges a heart-warming and distinctive business and brand proposition.

Use clever brand presentation to reinforce the core brand idea and attract and engage

Experiencing the Bubba Gump Shrimp Company is like peeling back the layers of an onion to reveal the magic of the brand within. Through attention-getting signage, to the fun physical environment and displays, to products and then the people.

Build ‘a must talk-about’ brand experience by including magical moments

Combining lots of little things adds up to a memorable experience – one that you want to tell your friends about. The staff were part of the fun – hence the reason they appear in our photographs!

Prove the business model and then drive rapid global brand development

To create and deliver a compelling and distinctive brand experience, check out our brand strategy services and also  brand masterclasses.

And as Forrest would say, “that’s all I have to say about that.”

All photographs © Guy Tomlinson 2010

There is widespread recognition among children’s tv producers that income from tv programme sales is seldom enough to cover production costs so brand licensing is often centre stage to increase revenue.  However, if you start by thinking about brand innovation the upside is even greater.

Current Brand Licensing Model

The current brand licensing process is typically an auction. A producer makes a show. It’s then sold to broadcasters and aired. Production of a ‘style guide’ follows, with a synopsis of the show, the key characters and design elements. It’s usually an impressive tome, a wonderful work of art. This is then sent to potential licensees with a brief asking them to come up with new product ideas. The product rights are then sold to the highest bidder.

Label Slapping Limits Value

But the current model often leads to little more than putting a label on a product. While there are a few bucks in adding a logo to a pair of pyjamas, pencil-case or rucksack, the benefits seem marginal. Does the label aid brand recognition, stand-out or value? More likely it relegates your brand to a commodity found in cheap and cheerful stores. Thus undermining the brand.

Out-Smart Your Competitors

Therefore thinking from a supply-push product development mindset alone isn’t enough. It’s akin to throwing mud at a wall – and hoping it sticks.

Moreover, markets are increasingly competitive. Media owners compete against retailers, and consumer goods companies. These businesses are amongst the most sophisticated organisations in the world. So, learning from, and out-thinking them, is helpful.

Invest in Consumer ‘Insights’

Consumers choose based on their needs; whether an offer meets their needs, and also by weighing up the benefits of competing offers. They subsequently buy when their ‘needs’ become ‘wants’. The retail trade also buys and stocks-up similarly.  Based on what sets their store apart, and also drives store traffic and meets their customer’s needs.

So invest in audience or consumer research to make better product development and brand innovation decisions. In particular, invest in meaningful insights on consumers’ needs and behaviours. Also understand what engages and sets your tv series apart. Look for unusual character and personality quirks.  Do this at the same time as programme production, in order to maximise both programme development and brand innovation opportunities.

Create Stimuli to Push Boundaries

Stimuli (1) brings to life ideas.  Thus better enabling consumers to react to ideas, and challenge and build them. It therefore moves conversations beyond the superficial to the detailed.  In turn, helping to uncover more insights. In addition, insights become more meaningful and better articulate how to differentiate products and services, and also command a premium. All can then be hard-wired into ‘style guides’ and also brand marketing plans in order to deliver the return on investment you need.

Marketing Inspiration

Brand licensing is a valid and powerful means of extending a brand into new markets and growing sales. However there are commercial upsides in thinking beyond slapping your label on a product. So think about what currently sets your brand apart or could in the future, and develop a brand strategy based on these insights.

Extending programmes beyond the tv screen to create brands requires the programme’s unique essence to be truly understood. Do this by seeing through the audience’s eyes. Also by using creative stimuli to explore, and push creative boundaries.

The same thinking process applies to any organisation thinking about how to extend their product or service into new markets. Carpe diem.

References

(1) Stimuli reproduced courtesy BBC Worldwide. These are just a handful of some 70 plus ideas created in order to explore new product and brand innovation opportunities for The Secret Show. Read more about our approach to brand extension and using creative stimuli in research.

When dealing with tough times, a recession, or recovery from C-19 issues, marketers have a key role to play.  So how to take the opportunity to restore business growth. Here are six pointers for a speedy business turn-around:

1.   Start by ensuring your business fundamentals are sound

It has always been the case that the most successful businesses are those that are the most customer or audience driven. If the tough times have caused a sales reduction, this may indicate weakness in your offer which needs to be fully understood and addressed.  Whatever the economic situation, robust insights must inform your targeting, products, and promotions. Only when you have a strong offer and sound strategy in place will you ever be in a position to invest and grow.

2.   Maximise cash

Marketers can do much to bring forward and maximise cash flows, for example by rewarding early payment. Do your bit to control costs too. Consider using more efficient communications and seeking out smarter and better value agencies. If a worst-case rationalisation is required, view it as an opportunity to ‘right-size’. Also, make sure that the right resources are in the right places and perhaps refresh the culture. This then provides a more robust foundation for renewed growth.

3.   Be more vigilant to threats and opportunities

Marketers should lead; in particular to ensure that corporate antennae are installed and working properly. While tough times present threats, they also present opportunities – a weak competitor here, a lower cost investment opportunity there. There will rarely be a greater opportunity for the smart marketing and research department to prove their worth. So provide timely intelligence and quality thinking on how to realise those opportunities.  In particular, look to, and try and anticipate the future. Specifically, look for threats and opportunities by talking to consumers and reviewing what your competitors are doing. Reading investment blogs and company reports also provide potential sources of insight. In addition, consider using scenario planning to work through and determine the best business turn-around strategies.

4.   Don’t stop promoting your products but do be smarter about how you do it

There are many studies that show how the share of advertising voice correlates with market share. Further, those who invest in proactive marketing during tough times are the first to emerge and the strongest when the good times return. Also use creativity to add value to your brand and avoid creating a hostage to fortune.

5.   Cultivate a mindset of controlled aggression!

Test major business building initiatives on a low cost, controlled risk basis to ensure that they work. Only when you have the metrics to prove that they work should you invest heavily.

6.   Invest while the bargains abound

In tough times those under pressure often cut their prices or become cheaper to buy. So grab bargains, for example cheaper advertising, while they are around. Also consider good value hires or business acquisitions.

Marketing Inspiration

1.Darwinist fundamentals apply. So make sure that your business and brand strategies are based on true insight and facts by using robust market research. Only then can you best focus resources on being as fit and competitive as possible.
2. Take a long and also a short term view. Take proper notice of threats and opportunities by making sure your corporate antennae work properly. Thus you’ll be more proactive and timely in spotting opportunities and making investment recommendations to your Board.
3. Grasp lower cost marketing opportunities while they abound. In so doing you will be able to go for growth while others are still sitting on their laurels. Thus ensuring a speedier business turn-around.