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TEAMFLY Team-Fly ® Enterprise Marketing Management Enterprise Marketing Management The New Science of Marketing Dave Sutton and Tom Klein John Wiley & Sons, Inc. Copyright © 2003 by Dave Sutton and Tom Klein. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. 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Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose. No warranty may be created or extended by sales representatives or written sales materials. The advice and strategies contained herein may not be suitable for your situation. The publisher is not engaged in rendering professional services, and you should consult a professional where appropriate. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages. For general information on our other products and services please contact our Customer Care Department within the U.S. at (800) 762-2974, outside the United States at (317) 572-3993, or fax (317) 572-4002. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley products, visit our web site at www.Wiley.com. ISBN 0-471-26772-4 Printed in the United States of America 10987654321 www.copyright.com. Requests to the Publisher for permission should be For Whitney, Wheeler, and Maggie—D.S. For my scientist grandfather, Admiral John T. Hayward, and for my salesman father, George.—T.K. CONTENTS Foreword Sergio Zyman xi Introduction: Enterprise Marketing Management xiii PART I RUN BRANDS AS BUSINESSES , NOT AS CAMPAIGNS 1 1. Marketing Is Not an Art—It Is a Science 3 2. Architect Your Brand 16 3. Plug Marketing Into the Enterprise 43 PART II MANAGE YOUR BRAND , NOT YOUR CUSTOMER 61 4. Take Ownership of the Brand Experience 63 5. Plug Marketing Into CRM 95 6. Cross-Market to Cross-Sell 114 7. Use New Media for Brand Activation 125 PART III REINVENT YOUR BUSINESS , NOT JUST COMMUNICATIONS 147 8. Restructure Based on Brand Experience 149 9. Measure Investment Performance 171 10. Optimize Marketing Investments to Drive Profitable Sales 191 Conclusion: A New Day for Marketing 211 Index 219 vii ACKNOWLEDGMENTS T his book is the result of relentless hard work on the part of many talented people. While conducting research for the book and developing content, we had the pleasure of meet- ing and working with many marketers and hearing their stories— many of which became the foundations for case studies in this book: Lisa Gregg at American Express, Tim Riesterer at Ventaso, and David Perry at Aspen Skiing Company. We would like to thank everyone at Zyman Marketing Group for their dedication to bringing Enterprise Marketing Management to life with our clients across the globe. We would like to especially thank those colleagues that dedicated their personal time, of which there’s never enough, to the book. They’ve added content, been there to think through new ideas, advanced their own theories, and helped us to bring it all together. Thanks to Ric Alvarez, Art Ash, David Cross, Leanne Fesenmeyer, Linda Michaels, Michael Sinclair, Dave Singleton, and Jon Stewart for their energy, ideas, and general passion for great marketing. And, thanks to Denise Cowden and Veda Sammy for their creativity and patience in helping to develop and organize both the written and graphical content. Even though marketing is a science, they’ve helped us apply art where it’s neces- sary to help us communicate more clearly. And finally, even books ix [...]... enterprise as the owners of the brand experience For example, marketing may suggest a reduction in a production forecast or a change in the promotion calendar, which in turn will impact the focus of the sales force—all in support of the needs and wants of the target customers The good news is that knowing what these systems can do for you will help you adapt to the new science of marketing The bad news is... every person who interacts on the brand’s behalf with any customer From the smallest local business to sprawling global enterprises, it’s the end of the art of marketing and the beginning of the new science of marketing Gone are the esoteric theories of marketing as a creatively driven endeavor Now is the time for an analytical method that focuses on selling, plain and simple Marketing isn’t INTRODUCTION... remains the island within the enterprise This inability to leverage company and customer information the second most valuable asset of the company (the most valuable being the brand, of course)—has made much of the new science of marketing almost impossible to realize Once marketers get in step, true optimization will be possible Thus, the role of marketers should be to inform decision making across the enterprise. .. to marketing It’s either because they realize that they need to in order to grow their business or because they are forced to do so by their customers or consumers who are not buying as much of their products as they used to One of the most powerful distinctions that I revealed in that book was the fact that marketing is not an art—it is a science Of course, there are artistic elements in some of the. .. specific marketing initiative It offers an immediate snapshot of the validity of the marketing investment Creatively minded marketers shouldn’t let all this science and investment talk scare them The art of marketing is also more important than ever The creative genius that drives brilliant marketing remains a critical part of everything that a marketer does But the left-brain aspects of marketing investment... consist of fawning or mindless meddling in the creative enterprise du jour First and foremost, a marketer is a businessperson It’s indeed the responsibility of the marketer to bring a healthy portion of intellectual and process discipline to these investments in 3 4 ENTERPRISE MARKETING MANAGEMENT what are often creative exercises It’s this discipline that is at the heart of enterprise marketing management. .. understand the amount of marketing investment required to generate business with your target customers, as well as the amount of the return from doing business with those customers over time Consider a marketing investment profile, as noted in Figure 1.1 This profile indicates the timing of the investment and the timing of the return, which in turn lets you monitor both the incremental and the cumulative... leaders at some of the largest companies in the world understand my principles, develop a strategy, and get into action in the market And, you know? It works xi xii FOREWORD We learn with every client, with every project, and we pass on our knowledge to our new clients Enterprise Marketing Management: The New Science of Marketing, which has been written by two of the senior members of Zyman Marketing Group,... drive value for their company As Sergio Zyman indicates in The End of Advertising As We Know It, brands stand at the center of everything that marketing does The EMM approach to marketing indicates that the way to evaluate a brand is based on how much it sells, not on the kind of fingerto -the- wind approach that might show up on the front page of USA Today Brands are only valuable as long as they sell (Ask... management (EMM) and the new science of marketing To begin, a quick review of some of the terminology of science, starting with the dictionary definition: TE AM FL Y sciиence n 1 The observation, identification, description, experimental investigation, and theoretical explanation of phenomena a Such activities restricted to a class of natural phenomena b Such activities applied to an object of inquiry or . global enter- prises, it’s the end of the art of marketing and the beginning of the new science of marketing. Gone are the esoteric theories of marketing. Team-Fly ® Enterprise Marketing Management Enterprise Marketing Management The New Science of Marketing Dave Sutton and Tom Klein John Wiley