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 A letter from CEO Michael Dunn The talent for striking that delicate balance between the so-called arts and sciences is increasingly the secret sauce that propels some marketers above others and enables them to take a leading role in driving business performance. Analytics are important, providing the data that allows marketers to stay focused and pragmatic, while also serving to set boundaries and provide the underlying rationale for marketing decisions. But analytics shouldn't be allowed to overwhelm the intuition that characterizes great marketers. It's the insights that the data leads to that result in breakthrough products and compelling new customer experiences. It's a theme that should resonate with marketers like you, and we explore it in this issue of our newsletter, leading off with our perspective, “Data Should Fuel – Not Rule – Insightful Thinking.” An overview of some of the insights we were able to glean from our own 2005 State of Marketing Survey is also in the lineup. Featured in the Recommended Reading section are some recent Prophet-authored articles that you should also enjoy reading. These include our analysis in Admap magazine of how marketing's insights can foster the kind of innovation demanded of successful businesses, and our thinking on how the next generation of brand tracking research can help marketing better justify investments in brand-building initiatives. In the spirit of the season, all of us at Prophet wish you happy holidays and a prosperous 2006!Warm Regards,
Michael Dunn Building Great Brands and Businesses Data Should Fuel - Not Rule - Insightful Thinking More money than ever is being spent on marketing-related research as the pressure increases to quantify marketing investment decisions: One study shows an expected jump in such U.S. spending of 26.5% to $8.6 billion in by 2008 from 2004 levels. It begs the question of whether data is taking precedence over the kind of critical thinking that marketers should be bringing to the party. Instead, data should be the springboard for creative thinking, rather than the final arbiter of tactical and strategic direction. To produce ideas that will drive the business forward, marketers need to keep three key considerations in mind:
It's data that keeps marketers on the right path to the customers, mitigating the kind of “me, too” traps that can lead to ineffective marketing programs. But it takes an effective marriage of data with insight to result in inspirational programs and offers that support business success. Prophet 2005 State of Marketing Survey Senior Marketers Must Expand Influence Over Customer Experience A recently completed study by Prophet on the role of marketing in driving business growth finds a keen understanding among senior marketers of the growing power of the customer, yet a disconcerting lack of influence over those touchpoints that have the most sway. In the study, conducted with IDG (publisher of CMO magazine), nearly one-third of respondents cited customer service and delivery and the customer experience, followed distantly by business strategy and marketing strategy, as key to helping the business achieve growth goals. Interestingly, the 300-plus senior marketer participants put little stock in the traditional MarCom tools of advertising and promotions; each generated a mere 1% response rate. Despite the importance of various aspects of the customer experience, however, a significant percentage of respondents admitted to playing no role in some of the key ways to shape it: 33% were not involved in the customer service functions; 43% played no role in pricing; and 45% had no involvement with the sales force. The findings point to the need for senior marketers to forge alliances outside of their own silos if they hope to expand their influence and ability to drive the kind of material impact that senior management expects. While the bulk of respondents said their relationship with business unit marketers was successful, over 20% said this was not the case with Human Resources and Information Technology, which are the best equipped in the organization to train employees on delivering on the brand promise and capturing customer insights. Other findings of Prophet's 2005 State of Marketing Survey are presented in a special report that can be downloaded by clicking here. David Aaker Talks Brand in Recent CMO Podcast When the economy's taking a downward spiral, senior marketers are best advised to protect their brands even though pressure exists to take measures that may compromise them, according to David Aaker, branding authority and vice-chairman of Prophet. Of course, Aaker said during a recent CMO magazine podcast, protecting your brand is your best course of action in good economic times and bad. “This means avoiding measures like discounting, which compromise your brand,” he said. “Don't cut your media spend, but find ways to make it work more effectively and efficiently in support of your brand positioning. And definitely cement the core – make sure your core customers have a reason to stay loyal. Don't back away from your promise to them.” During this far-reaching discussion, panelists also looked at issues ranging from the push for influence in the print media to the selling of the U.S. Army. To hear their thoughts, click here. For other articles written by David Aaker, please click here. The personal and intellectual journey that has led to David Aaker's growth as a preeminent authority on brand is detailed in his newly published autobiography, “From Fargo to the World of Brands.” Rich with detail about his small town upbringing, the influences of the academic worlds of MIT and Stanford and even entrepreneurial failure, this work by Prophet's vice-chairman is an enjoyable read. To download a complimentary, printable version of the book, please click here. The hard copy can be ordered through Amazon.com. Prophet's latest articles How Marketing Can Support the Innovation Imperative Time to Re-Embrace The "Next Best Customer" Truism On Track Most frequently downloaded article from our web site Building Brands From the Inside Other articles of interest Slice of Life Brand Blogs Capture the Attention of Some Companies Scott Davis keynotes, and Prophet sponsors, the Conference Board's 2006 forum on Extending Your Brand to Employees: Engaging Your Talent to Drive Business Results, on February 22 at the Hotel Inter-Continental in Chicago. For information, click here. Results of Prophet's 2005 State of Marketing Survey will be presented by Michael Dunn at the Marketing Week Brand Summit on February 27 and 28 in London. For information, please click here.
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