Embed valEmbed valEmbed value-based marketinue-based marketinue-based marketing as a cog as a cog as a core bre bre buuusinsinsineeess pss pss prrraaaccctice in Rtice in Rtice in Roooyal Mayal Mayal Mail, inil, inil, inclclcluding the leadershuding the leadershuding the leadership and culture, processes and ip and culture, processes and ip and culture, processes and
capabilities.capabilities.capabilities.Marketing matters more than ever
Markets are incredibly complex and competitive
• Competitive intensity has tripled in most markets
• Typical segmentation models now have 400 clusters
• Product lifecyles have reduced by 70% over last decade
Customers are much more powerful than ever
• Consumers now receive 1500 messages per day
• 54% of consumers have registered for "do not call"
• Purchase decisions are typically made in 2.6 seconds
Shareholders demand higher, faster returns
• Intangible assets make up 78% of the Fortune 500's value
• 60% of brand investment impacts future years
• 21% of CEOs are marketers delivering 5% better TSR
© Peter Fisk 2005The old ways don't work anymore. Complexity, speed and
power means that even the best brands and marketers need
to think differently in order to succeed
© Peter Fisk 2005Marketing Products Innovations Communications
1837 Marketing Candles and
soap products
function
First colour print ads
1900
First radio ads
Laundry products
Direct selling
Brand to consumers
Management Hair care Synthetic
Detergents Radio soap operas
Oral care
Home cleaners First TV ads
1950
Inhouse TV
Supply chain Coffee Flouride toothpaste programming
management
Disposable nappies 1-800 Numbers
Salted snacks
Global category
Enzyme detergents Cable TV
management Cosmetics
2 in 1 shampoos Digital ads
Corporate venturing Pet food
Tooth Whitening pg.com
2000
Customer is boss
© Peter Fisk 2005Intuitive
Divergent
Imaginative
Non-Linear
Holistic
Subjective
Interactive
Convergent
Directive
Linear
Analytical
Objective
Marketing needs to be more intelligent and imaginative. It
must combine more rigorous analysis and more radical
creativity, to make sense and stand out in today's markets.
© Peter Fisk 200© Peter Fisk 20055Genius
Original
thinking
Analytical
Creative
thinking
thinking
Dual Observational
thinking thinking
Visual
Volume
thinking
thinking
Holistic
Pragmatic
thinking
thinking
Genius marketing requires the skills and confidence to make
the best ideas happen. It brings together left and right-brain
thinking with practical, integrated action.
© Peter Fisk 2005Outside in
Inside in
Companies need to work "outside in" rather than "inside
out". Rather than improving what they do, they should be
focused on the best opportunities in their marketplaces
© Peter Fisk 200© Peter Fisk 20055Complexity
Space
Power
Networks
Pace
Insight
Responsibility
Inversion
Genius insights include Apple, Coca Cola, eBay, Enterprise,
Microsoft … Genius tools include Market Mapping,
Ethnography, Ethics Compass, and Reverse Marketing.
© Peter Fisk 200© Peter Fisk 20055Traditional definitions of markets make little sense.
Boundaries blur, and new markets emerge. The pace and
impact of this change can be phenomenal.
© Peter Fisk 20053 new stores
open every day
Starbucks name is taken from
the sailor in Moby Dick, its
painted lady emblem taken
from an old fishing boat.
Acquires Tazo
tea company
7225
Howard Schultz acquires
Frappucino
Starbucks and starts
launched
coffee bar roll-out
With Pepsico
Key accounts 4709
with corporates
and airlines
Pike Place Market
2135
Seattle starts selling
coffee beans
1412
676
272
116
55
17
1971 1988 1990 1992 1994 1996 1998 2000
2002 2004
Source : starbucks.comCool PlacesCool Places Hot SpotsHot Spots
where latestwhere latest where the newwhere the new
trends emergetrends emerge competition iscompetition is
Black HolesBlack Holes White SpacesWhite Spaces
where oldwhere old where nobodywhere nobody
brbrandsands die die has venturhas ventureded
© Peter Fisk 2005Marketing needs to work outside in too. Starting with the
customer and their need, rather than supplier and product.
Campaigns are dead, channels invert, start with a Google.
© Peter Fisk 2005Power Profile™
Brands define supplier or product S C Brands reflect buyer aspirations
Communicate in mass campaigns CS Get in touch when want to know
Products standard and discrete CS Solutions assembled by buyer
Distributed through defined channels CS Agents help buyers solve problems
Price based on competitors and costs CS Pricing based on perceived worth
Relationships sought by suppliers CS Buyers loyal to people like them
Innovation drives product derivatives CS Innovation redefines contexts
Strategy based on current capabilities CS Strategy based on best opportunities
Measured on financial-based metrics CS Measured on customer-based metrics
Overall, supplier calls the shots S C Overall, buyer calls the shots
© Peter Fisk 2005Short-term
Long-term
Marketing must create tomorrow whilst delivering today.
Build the brands, innovations and relationships to drive
future cashflows whilst also delivering quarterly profits.
© Peter Fisk 200© Peter Fisk 20055Stakeholders
Value
Strategies
Brands
Innovation
Design
Portfolio
Intangibles
ROI
Genius insights include Boden, BMW, Paul Smith, Panera
Breads, Virgin, Zara … Genius tools include Market Strategy,
Value Propositions, Memetics, Brand Equity and Innovation.
© Peter Fisk 200© Peter Fisk 20055What is the measure of marketing success? In the European
car market, a different brand is "best" when measured on
market share, revenue, operating profits or shareholder value.
© Peter Fisk 2005££
PastPast FutureFuture
Shareholders care about the future not the past. Shareholder
value is the sum of likely future cashflows. Marketing creates
three times more value than anything else.
© Peter Fisk 200© Peter Fisk 20055Marketing - customers, brands, innovations - should be top
of the boardroom agenda, at the front of the annual report
(OFR) or a key topic for every investor relations meeting
© Peter Fisk 2005Operating
Economic
Profit
Profit
0
0
However this also requires marketers to think differently,
identifying the few markets, products and customers than
really do "create value" and focusing creatively on them.
© Peter Fisk 200© Peter Fisk 20055Nike outsells Reebok
3 times, with a market
value of $12 billion.
Knight hands over
CEO role to Bill Perez
Phil Knight Nike regains
launches his market leadership
Nike brand of from Reebok
Nike buys
running shoes with "Just Do It"
Converse
and Starter
brands
Nike signs tennis Nike signs Nike grows Nike signs
Superbrat basketball rookie internationally. golfing star
$12bn
John McEnroe Michael Jordan Soccer is key. Tiger Woods
Nike becomes "Nike Air"
top US running launched $7bn
shoe brand and With the
goes public Air Max
$3bn
$1bn
1972 1980 1985 1990 1995 2000
2005
Source : nike.comRight brain
Left brain
Marketers need to change personally - to be more strategic,
innovative and commercial. To drive the market and the business.
They don't need to be on the board, but they do make the best CEOs.
© Peter Fisk 200© Peter Fisk 20055Ideas
Decisions
Focus
Integration
Capabilities
Influence
Leadership
The best CEOs
Genius insights include Diageo, Dyson, Innocent, Nestle,
P&G, and Nokia … Genius tools include Market Manager,
Leadership, Customer Capital and Brand Blogging.
© Peter Fisk 200© Peter Fisk 20055Even in difficult markets, there is space to stand out and be
profitable. Jet Blue's incredible success combines the
lessons of low-cost and premium service airlines.
© Peter Fisk 2005ValuValuValuValue ofe ofe ofe of
ValValValValuuuue ofe ofe ofe of "Value for money"
bebebebenenenenefitsbenefitsfitsbenefitsfitsbenefitsfitsbenefits
to to to to
to to
cucucucustostostostommmmercustomererercustomerer
PercePercePercePerceiiiivvvveeeedPerceiPerceiPerceiPerceivvvveeeeddddddd
wowowoworrrrtttthhhh PrPrPrPricedwowovavallrruutthehePrPriicceedicediceddiced
relatirelatirerererelalalalattttiiiivvvvvveeeeeeto offerto offerto offerto offer
to offeto offerPrPriiccere
to otto otto otto otherherherherssssvavavavalllluuuueeee f f f foooorrrr
momomomonnnneeeeymonemoneyy"yy"y
RetuRetuReReReRetutututurnrnrnrnrnrn
totototo i i i innnnvevevevessssttttoooorrrrsto invto inveestorssRetuReturnsstorssrn
The only route to more shareholder value, is to create more
value for customers - to manage perceptions and price, to
change context and connotations of value.
© Peter Fisk 200© Peter Fisk 20055Jones Soda Co. is perhaps the most radical of the 50 genius
brands - "nobody needs my shit, but they love it" - explains
Peter van Stolk, the man who makes turkey and gravy soda!
© Peter Fisk 2005Radical
creativity
Innovative state
Conventional state
Rigorous
analysis
Genius drives innovation in every aspect of marketing - from
products and media to market rules and business models. It requires
disruptive push and creative pull, focused in the right places.
© Peter Fisk 200© Peter Fisk 20055Marketers need the mind and skills of Steve Jobs, to spot the
best opportunities, to make sense of complexity, and think
how to best exploit their brands commercially.
© Peter Fisk 2005Marketers need the guts and passion of Phil Knight, who
gave up his running aspirations to sell shoes from his car,
and over the years created a $12billion brand called Nike.
© Peter Fisk 2005Outside in
Market
Competitive
Customer
Sensing Inside out
Business
Capabilities
Finance
Long term
Market driving
Strategic
Value
Short term
Responding Market driven
Tactical
Sales
Organisation
© Peter Fisk 2005Market Inspiring
strategies leadership
Shaping the Leading the
Distinctive
market Profitable business
brands
focus
Deep
Disruptive
Customer
innovation
insight
Genius
Marketing
Compelling
Collaborative
propositions
working
Engaging
experiences Integrated
activities
Engaging the Aligning the
customer operation
Personal Effective
relationships delivery
© Peter Fisk 2005 Diagnostic available from peterfisk@peterfisk.comRight brain
Concepts
Creative
Holistic
Sensing Left brain
Facts
Analytical
Specific
Radical ideas
Conceptual
Possibilities
Development
Practical action
Responding Operational
Priorities
Delivery
Organisation Individual
© Peter Fisk 2005Analytical Creative
thinker thinker
Evaluating Exploring
opportunities Factual possibilities
Idea
evaluator
generator
Externally Inner
adaptive conviction
Genius
Marketer
Pragmatic
Conceptual
realist
guide
Focused
deliver Integrated
Practical deliver Creative
implementation implementation
Controlling Empowering
manager manager
© Peter Fisk 2005 Diagnostic available from peterfisk@peterfisk.comThe edge 1. Invert
Marketing must bring an "outside in" approach to
business, delivering today and creating tomorrow.
2. Insight
Marketing must build brands around customers, create
pull not push, work on their terms
3. Innovate
Marketing must drive more significant innovation of the
business and marketplace
4. Influence
Marketing can take centre stage, shaping markets and
driving the business. Marketers make the best CEOs.
5. Inspire
Marketing can combine deep intelligence and radical
creativity to deliver extraordinary results.
© Peter Fisk 2005Genius marketers combine the intelligence of Einstein and
imagination of Picasso to focus their efforts, build brands,
drive innovation, and to deliver extraordinary results.
© Peter Fisk 2005Marketing Genius is the radical new book from Peter Fisk. It describes a better
approach to marketing in today's complex markets, one that combines deep
intelligence and extreme creativity in order to deliver extraordinary business results.
Markets are incredibly complex, competition is intense, change continues at pace, and power
has fundamentally shifted to customers. Yet most companies still do business inside out, driven
by financial blinkers, trying to improve what they have always done. Whilst the markets,
competitors and customers do otherwise.
Business needs marketing more than ever, but not as today.
Customers are more different, discerning and demanding than ever. Competitors challenge from
every angle, across sectors and geographies, imitation is immediate and differentiation is rare.
Shareholders, similarly demand better returns on investment, quicker and at less risk.
Marketers are under pressure to deliver better results.
Marketing is the key driver of long-term shareholder value in business. Intangible assets now
account for around 70-80% of market value, and much of this is driven by marketing, and can
increasingly be accounted for. Witness the enormous "customer capital" paid by P&G for Gillette,
contributing to a price 25 times the operating profits.
Profits are not the same thing as value creation.
Cont >
Marketing Genius will be published by Wiley Capstone in September 2005 at
£14.99. You can order your copy now from Amazon, and download free extracts
at www.MarketingGeniusLIVE.comMarketing Genius is the radical new book from Peter Fisk. It describes a better
approach to marketing in today's complex markets, one that combines deep
intelligence and extreme creativity in order to deliver extraordinary business results.
Marketing creates the future whilst delivering today. Whilst supporting current sales, it also
develops the markets and innovations, brands and relationships, which secure future profitability.
Indeed, most large investors take a long-term view on their investments, despite the short-term
obsession with quarterly results internally.
Marketers need to work in double time. Value-based marketing starts with focusing on what matters
most - the few markets and segments, brands and products which will deliver a superior, return on
equity in future years. Evaluating most portfolios will reveal that most companies are still focusing
on many activities which actually cause them more harm with every penny spent on marketing, and
every extra sale.
Focusing on the value creators, eliminating the value destroyers. Value-based marketing is typically
about doing the right things, identifying the best opportunities, focusing on what matters most,
doing less rather than more.
Value-based marketing is about creating more value for customers and shareholders. Shareholder
value has often been tarred with the brush of short-term greed, and the financially-blinkered
behaviour and corruption which that can drive. Indeed creating this virtuous circle is the only way to
drive long-term value for shareholders.
More customer value creates more shareholder value.
Cont >
Marketing Genius will be published by Wiley Capstone in September 2005 at
£14.99. You can order your copy now from Amazon, and download free extracts
at www.MarketingGeniusLIVE.comMarketing Genius is the radical new book from Peter Fisk. It describes a better
approach to marketing in today's complex markets, one that combines deep
intelligence and extreme creativity in order to deliver extraordinary business results.
Creating more value for customers is about insight and innovation, but also about managing
perceptions and perceived value in smarter ways. That is the route to the win-win, where strong
brands really can charge a premium. This requires more radical innovation, more compelling
propositions, and doing business on customer terms - where, how and when they want, not you.
The death of campaigns, the reversal of channels.
Value-based marketing demands that marketers step up to lead both their markets and the
business, to be the driving force of strategy and decision-making, investment and performance.
This requires marketers to work more strategically, innovatively and commercially. It also requires
them to be more collaborative and accountable, better team players and leaders.
Indeed marketers make the best CEOs.
Marketing needs to articulate its real value to business. The new OFR requirements for annual
reporting, which came into effect on 1 April 2005, are an excellent opportunity. Marketing is the
driving force of future performance, its time for to take centre stage, and become the drivers of
business.
A marketing genius, brings together the intelligence and imagination to achieve this, and to
deliver exceptional business results.
Marketing Genius will be published by Wiley Capstone in September 2005 at
£14.99. You can order your copy now from Amazon, and download free extracts
at www.MarketingGeniusLIVE.comPeter Fisk
Peter is a highly experienced marketer. He spent many years
working for the likes of British Airways and American Express,
Coca Cola and Microsoft. He was the CEO of the world's largest
professional marketing organisation, the Chartered Institute of
Marketing, and for almost 10 years led the global marketing
Peter is a highly experienced marketer. He spent many years working for the likes of British Airways and American Express, Coca Cola and
Microsoft. He was the CEO of the world's largest professional marketing organisation, the Chartered Institute of Marketing, and for almost 10 practice of PA Consulting Group.
years led the global marketing practice of PA Consulting Group.
He is Managing Director of Brand Finance, the leading brand
strategy and valuation firm. He writes and speaks regularly on all
He is Managing Director of Brand Finance, the leading brand strategy and valuation firm. He writes and speaks regularly on all aspects of aspects of marketing, and in particular on how marketing, brands
marketing, and in particular on how marketing, brands and innovation drive exceptional long-term value for customers and shareholders. He and innovation drive exceptional long-term value for customers
recently authored The Marketing Society's Manifesto for Marketing, and led the development of Customer Capitalin response to the DTI's new
OFR reporting requirements. and shareholders. He recently authored The Marketing Society's
Manifesto for Marketing, and led the development of Customer
Capitalin response to the DTI's new OFR reporting
requirements.
Peter's new book Marketing Geniuswill be published by Wiley
later this year, and describes how a more intelligent and creative
approach to marketing can deliver exceptional results in today's
complex markets. He has also authored over 50 papers,
published around the world, and is co-author of the FT Handbook
of Managementand The Complete CEO.
You can email him at peterfisk@peterfisk.com
Or visit his website www.MarketingGeniusLIVE.comEmbed valEmbed valEmbed value-based marketinue-based marketinue-based marketing as a cog as a cog as a core bre bre buuusinsinsineeess pss pss prrraaaccctice in Rtice in Rtice in Roooyal Mayal Mayal Mail, inil, inil, inclclcluding the leadershuding the leadershuding the leadership and culture, processes and ip and culture, processes and ip and culture, processes and
capabilities.capabilities.capabilities.
peterfisk@peterfisk.com
www.MarketingGeniusLIVE.com