I published a report based on a Q2 2013 survey that benchmarked marketing innovation culture and indicated that most marketers are still not investing enough to accelerate their innovation efforts. Only 11% indicated that they are currently setting aside budget specifically for marketing innovation programs. Budget is both an indicator of intent and lifeblood for these programs to succeed. Today, Advertising Age published an article based on this report — "Most Brands Aren't Budgeting For Innovation." Below is the article Forrester submitted to Advertising Age.
Only 11% of marketers set aside a specific budget for marketing innovation efforts, and only 9% make marketing innovation a part of every marketer’s budget, according to a recent study of 45 marketing leaders. What’s more is that 95% of these marketers agreed, mostly agreed, or partially agreed that they are achieving positive ROI from their innovation programs. Why the difference? Mastering marketing innovation is getting harder and harder due to the ever-changing customer landscape caused by digital disruption, perpetually connected customers, and shifting customer expectations.
The follow-on report will focus on how to assess your organization’s current marketing innovation culture and what it takes to migrate from where you are today to where you want to be tomorrow. Whether you have a risk-averse, pragmatic, experimenter, or customer-obsessed marketing innovation culture, your insights are critical to this research.
I have developed a short (5 to 10 minute), anonymoussurvey on assessing your marketing innovation culture. The more responses I receive, the more insightful and valuable the report will be for you. Everyone who takes the survey will receive a summary of the results if they choose to provide their email address at the end of the survey (optional).
Please take the survey today, and forward it to any of your colleagues or peers you feel could add insight into this topic.
Today, we published my first Forrester Research report on marketing innovation, "Culture Is Key To Marketing Innovation Velocity" (client access required). This is the first report in a series I will be writing on marketing innovation culture, innovation labs, and partnering to accelerate marketing innovation velocity.
Marketing innovation in the age of digital disruption, perpetually connected customers, and the customer life cycle is hard and getting harder. What separates the marketers who are leading their organizations to accelerate marketing innovation velocity is the organizational culture they have created. This report discusses the four marketing innovation cultures including: risk-averse, pragmatist, experimenters, and customer-obsessed. We also align the cultures based on whether they are internally or externally oriented or highly focused or highly flexible. For example, a customer-obsessed culture is more flexible and externally oriented in how it innovates and markets to its customers. Here is the marketing innovation cultures matrix:
Shopper marketing is going digital, providing shopper marketers with a plethora of new high-buzz technologies, devices, and platforms to communicate messaging, promotions, or content to their shoppers along their path to purchase. But with limited budgets, and such a wealth of options, which ones should they choose? To help shopper marketers prioritize their technology investments in 2012 and beyond, my colleague Cory Madigan and I evaluated 17 digital tools for using Forrester’s TechRadar™ methodology. The highlight trends reveal that:
Cool isn’t necessarily critical . . . yet. Social networking pages, interactive displays, and QR codes get a lot of attention in the marketing world, but we found that in terms of shopper marketing utility, real shoppers aren’t quite as smitten. The opportunity is there, but lack of scale, measurement, and clear value for the consumer has limited the traction of many of the more talked-about technologies in the digital shopper marketing arsenal.
The digital oldies are still the ROI goodies. When it comes to shopper utility, consumers and marketers still rely most on brand websites, content that brands create for specific retailers, and email to deliver the value they seek. Rather than being replaced by new technology, watch for these platforms to become better optimized for mobile. With mobile optimization, shopper marketers will be able to tie shoppers’ online activities at home — on a PC or tablet — to their smartphone activities while on-the-go.
How many times have you been asked, “What’s your social strategy?” As Facebook’s IPO grabs the headlines, and new social sites like Pinterest and Tumblr grab consumers’ attention, many marketers are wrestling with what brand building looks like in today’s social world. But the real question you should be asking yourself is, “How does social media change your brand strategy?”
Marketing leaders now view social media as critical for brand building. In our February 2012 Marketing Leadership Online Survey, nine out of 10 marketing leaders told us that social media is fundamentally changing how brands are being built in the 21st century. In fact, they view it as second only to search for brand building. But many are still struggling to determine how to integrate it into their marketing plans. The truth is, while social is a great new tool, it lacks the power to build a brand alone. Marketing leaders such as Coca-Cola and JetBlue recognize this and are integrating social with paid and owned media to build a 21st century brand experience. In my new report, "How Social Media Is Changing Brand Building," I identify three ways social media can help marketers harness the power of social to build their brand by 1) building a relationship to become more trusted; 2) differentiating through an emotional connection to become more remarkable; and 3) nurturing loyal fans to become more essential.
How is social changing your brand building strategy? What challenges are you facing in the social brand building world? Comment here, or join the conversation in our community of marketing leaders.
As the economic malaise lingers on, a more frugal consumer mindset is spurring consumers to embrace new digital technologies to make more informed buying decisions. This shift in behavior is releasing shopper marketing from the confines of the store walls, as consumers make purchase decisions at home and on-the-go. Once a tactical outpost in the sales organization, shopper marketing is now being embraced by forward-thinking marketers like Kellogg’s and Clorox, which are focused on getting on their consumer’s shopping list before she even gets to the store. But with this new opportunity comes potential organization confusion. Where does shopper marketing end and brand marketing begin? And where should it sit in the organization? Check out my report, “Shopper Marketing Breaks Out Of The Store,” to find out how consumers' shopping habits are changing, how retailers are responding, and what it means for brand marketers.
How is your consumer shopping differently? And how is shopper marketing changing your organization? Answer here or join the discussion on The Forrester Community For CMO & Marketing Leadership Professionals here.
Marketing planning has changed little in the past century. It's essentially a linear process built on the development of rigid 12-month plans built around brand and channel metrics. This approach is coming increasingly under strain as the combined effects of the growth of digital marketing platforms and a volatile economy demand marketing plans that deliver clear business outcomes and can adapt and improve to meet evolving market dynamics.
Over the past 12-18 months, we have come across several marketing organizations that have decided to do something about this situation and look for new ways to improve their approach to marketing planning by adopting some principles borrowed from a relatively new methodology originally conceived for software development efforts: agile development.
From the interviews that we did with marketers that are experimenting with this new approach, several of the key principles of "agile" development looked particularly relevant to innovating their approach to marketing planning:
A clear definition of business outcomes and associated business metrics
Last week’s financial market roller coaster is so far not affecting fall TV upfront buys, which are due to convert to orders in late August/early September. MediaPost reports that media agency leaders aren’t seeing any signs of adjustments to the TV upfront buys and expect Q4 to remain strong despite economic uncertainty. Steve Lanzano, president/CEO of the TV station association TVB says, “Back-to-school consumer spending should provide a good barometer for retail spending in the upcoming holiday season . . . But at this time it is not expected that planned advertising spending will be affected."
This attention to the TV market reflects its continued advertising power position. Despite frequent proclamations of TV’s demise, the fall 2011 TV upfronts showed that it remains the go-to media for many advertisers. What is new, though, are signs that nascent TV and digital convergence is now being led by the ad sellers themselves. TV networks like Fox and The CW are following their consumers to multiscreen viewing by offering integrated video ad deals that span on-air and online. What does this mean for marketers? To stay connected with their consumers, marketers must get off of the couch and out of the living room to reach consumers through and beyond linear TV programming. Check out my report “The 2011 TV Advertising Upfronts Preview Convergence Of TV And Digital” to learn more about how these trends will affect brand marketers.
When the FBI finally captured Boston mob boss Whitey Bulger after a 16-year hunt, it did it by talking to women. Why? Because it realized that women would be more likely to have connected with his more conversational girlfriend Catherine Greig. The FBI went the traditional daytime-TV advertising route, but modern marketers should integrate social media into their marketing communications to make a more personal connection with their female consumers. Women are higher users of social media than men and have the potential to drive a brand’s reputation online because they are more connected and like to talk about brands and products. The key to making a digital connection with women is to understand their life stage and engage with them around the passion points that intersect with your brand. Brands like Kraft are leading social media, with Kraft innovating through its “Real Women of Philadelphia” campaign that uses social media as a creative inspiration. Check out my report “Engage Women With Personal And Relevant Social Interactions” to learn how to connect with your female consumer.
The recent Earth Day celebration brought a slew of often-conflicting reports on consumers’ environmental or green attitudes and behavior, such as “consumers cut spending on green,” “green worth paying more for,” “Americans hate faux green marketers,” and “[Boomers] passionate for green.” Green marketing initiatives were also everywhere, from Jet Blue’s “One Thing That’s Green” pledge to Procter & Gamble’s “My Carbon Footprint” app and Target’s eco-conscious “Refresh Your Nest” home makeover sweepstakes. Faced with this barrage of information and activities, many marketing leaders will be asking themselves what this means for their brand. Should they bide their time until the dust settles, or jump in? What about the risks of green-washing? Do consumers really care about the environment, or is it just something that they think they should care about? In truth, there is no one answer, because green marketing and green consumer behavior is changing rapidly. That being said, the expectation for companies to be more sustainable, from consumers and CEOs alike, is not going anywhere. So marketing leaders need to figure out what level of green engagement is right for their brand and their consumer.