Convergence Marketing E-Book

Richard Rosen

• Herausgeber: John Wiley & Sons
• Kategorie: Fachliteratur
• Sprache: Englisch

Seitenzahl: 206

Veröffentlichungsjahr: 2009

Beschreibung

Offering a common language, better processes, and a set of practical tools, Convergence Marketing is a real-world guide that successfully combines the best of brand and direct into something more powerful and effective than either can be on its own. Convergence marketing offers the kind of real-time accountability that positions marketing as a vital and effective component of leadership's overall business strategy. Convergence brings brand and direct together with respect to both disciplines, within the same silos. And it offers the necessary tools and processes that deliver better results. Our global market demands nothing less than this fully integrated approach. Convergence Marketing is the key to shifting marketing communications efforts from a cost-based to a profit-driven model and will have your CFO begging you to spend more money.

Leseprobe

Table of Contents

Praise

Title Page

Copyright Page

Dedication

Introduction

I - CONVERGENCE OF BRAND AND DIRECT

Chapter 1 - WHY CONVERGENCE MARKETING ?

EARLY CROSSROADS: WHEN TWO PATHS CONVERGED

THE TRADITIONAL MODEL VERSUS BUILDING BRAND AND DEMAND

THE TRADITIONAL MODEL OF CLASSIC ADVERTISING

THE BUSINESS REASON FOR CHANGE

THE END OF THE TRADITIONAL MODEL: A FOND FAREWELL

Chapter 2 - GETTING TO CONVERGENCE

THE FINE ART OF BALANCING BRAND AND DIRECT

Chapter 3 - CONVERGENCE

GETTING STARTED WITH CONVERGENCE

MEET THE PRIMARY DRIVERS

II - MEASURING THE INTENTION AND SUCCESS: PROCESS TOOLS AND PRACTICAL APPLICATIONS

Chapter 4 - ACCELERATE AND DRIVE

THE VISUAL MANIFESTATION OF THE GOAL

SURE, BUT WILL IT FLY? CRITERIA FOR THE ROSEN VELOCITY SCALE

WHERE ARE YOU ON THE VELOCITY SCALE?

TESTING THE VELOCITY SCALE WITH THE BIG KIDS AT GENERAL MOTORS

REAL-TIME ACCOUNTABILITY AND THE KILLER APP

Chapter 5 - SALES CYCLE AND CUSTOMER DIALOGUE

HOW DO WE DECIDE WHAT TO BUY?

TRY THIS AT HOME

THE SALES CYCLE AND HOW IT DRIVES DIALOGUE STRATEGY

GOING FULL CIRCLE

Chapter 6 - THE ASK AND THE OFFER

MORE MEANINGFUL HEADLINES

BEHAVIORAL CHANGE AGENTS: THE OFFER

TRANSFORMING THOUGHT

PRACTICAL APPLICATIONS

Chapter 7 - EXPECTED VALUE OF THE INDIVIDUAL

-

WHY WORKING WITH FINANCE CHANGES EVERYTHING

DIFFERENTIAL ACCOUNTING

Chapter 8 - REAL-TIME ACCOUNTING

WINNING BIG WITH MICHAEL DELL

CONVERGENCE: THE DA VINCI CODE OF ADVERTISING

THE WORKSHEET: TRANSFORMING THE WAY YOU SEE MARKETING AND ADVERTISING

Chapter 9 - THE BRAND-INTERACTION ACCELERATOR™

BRAND-INTERACTION MEDIA

WHAT HAPPENS WHEN WE PUT IT ALL TOGETHER

III - PERFORMANCE AND BALANCE

Chapter 10 - ZEN AND THE ART OF . . . THE MOTORCYCLE STORY

WE CAN FLY

Chapter 11 - A FEW MORE CASE STUDIES

TANGO

FRONTERA: DOGS AND ICE CREAM

Chapter 12 - THE LAST WORD

SEEING THE RESULTS

RUNNING TO THE NEXT MEDIA

INDEX

Advance Praise forConvergence Marketing

“The current approaches to communication are no longer enough—the world is saturated with too many messages that overwhelms consumers. Today’s marketing communications have to work harder and be more effective than ever before. Convergence Marketing guides you through an intuitive approach that turbo-charges your messages, delivering greater impact and leverage of your marketing investment.”

—Merle Marting, Senior Vice President, Global Business, TaylorMade

“Richard Rosen has been a pioneer in bringing the science of direct together with the art of brand. Convergence Marketing is a high velocity tour of market tested techniques for combining advertising that moves you with brand direct discipline that compels customers to action.”

—Robert L. Solomon, Senior Vice President & Chief Marketing Officer, Outrigger Enterprises Group

“Convergence Marketing is a ‘must read’ for anyone involved in advanced TV advertising struggling with the disconnect between Media and Creative. As TV advertising becomes more targeted and measurable, it is imperative that these two worlds come together around common objectives. Convergence Marketing provides the road map.”

—Tony Coulson, Director, Comcast Spotlight

“Rosen combines real world experience with visionary thinking to create an actionable road map to marketing success. Marketers looking to dramatically improve their campaign effectiveness and simultaneously break down organizational silos should read Convergence Marketing.”

—Ian Oxman, SVP, Marketing Sage Software

“Richard has hit a home run with this book. His ability to break down the language barriers and to build confidence for the C-suite is dynamite. Dynamite that turns into profits. In today’s cluttered and noisy market empathizing with the customer and building a nurturing relationship is what it is all about. Richard Rosen gets it. And you will too by using the principles as laid out in this book.”

—Thomas M Shannon, Director, Revenue Management (retired), Puget Sound Energy

“Convergence Marketing is the manual all marketers have been waiting for! Richard Rosen has distilled in a very handy book, the lessons of a life-time as a practitioner of marketing and advertising. This is a handbook designed to give real help, real advice and real results! It is easy to read, well documented with case studies and examples, and full of wisdom. Whether you are a CEO, CFO, CIO, or in marketing, sales or advertising, whenever you are looking at brand building, or planning marketing strategies, advertising or sales, read this book. It has something in it for you.”

—Alastair Tempest, Director General, Federation of European Direct & Interactive Marketing (FEDMA)

“Very relevant for today’s advertising and marketing executives who struggle with finding solutions that meet both brand and sales objectives. Rosen’s Velocity Scale™ is an effective analytical tool to improve your investment and creative decision-making skills. Valuable to anyone interested in making brand advertising far more accountable.”

—Becky Chidester, President, Wunderman, New York

“What we have here is a ‘failure to communicate’ because many of the fundamental assumptions we make about how people consume media need to be challenged and rethought. That’s just what Richard Rosen does in this book—and he goes even further by outlining pathways to focus and converge media streams to create business impact in today’s world. A great and practical read for anyone in business communications.”

—Ralph A. Oliva, Executive Director, Institute for the Study of Business Markets, Penn State

“Convergence Marketing is a solution whose time has come. In a world where the economic pressures are driving the need for more effective growth, Richard has come up with a simple and compelling roadmap that brings together the best of advertising and the best of business. This is one of those books that you are going see on a lot of successful executive’s desks. Don’t miss it.”

—Pam Maphis Larrick, Former CEO of FCBi Worldwide and CEO of MRM Partners Worldwide

“The Rosen Velocity Scale™ is a powerful and relevant tool for 21st century marketers. Rosen’s message ought not to be ignored. He is urging marketers to innovate and march forward by building on his successes. What better time than NOW to rewrite the rules of marketing.”

—Ann M. Jelito, President, Right Time Coaching and Consulting, Formerly Sr. Director of Training, Association of National Advertisers (ANA)

“As a leader of major service businesses, I know that marketing is important—but all of that brand, image, direct, indirect—it can make an operations executive’s head spin. Using the Rosen Velocity Scale™ can help me target my message to my customer and make an investment that yields real returns using scarce resources to benefit my business.”

—Chris Wallace, Senior Vice President, Customer Services, NCR Corporation

“Business schools and marketing books teach countless lessons from the likes of Microsoft, Intel, Nike, and Starbucks. Yet few of us work in multi-billion-dollar companies with gross margins north of 60 percent, that is, with a lot of marketing slack in the system. For the rest of us, Richard Rosen has helpful advice. Namely, get your brand building and direct marketing to converge for more acceleration in the customer’s buying process. This is a pragmatic book for the marketing veteran and novice alike.”

—Kevin Renner, Global Marketing Director, FEI Company

“Convergence Marketing provides a practical and innovative guide for all levels of management to balance brand-building tools with powerful direct marketing techniques. Rosen draws on a wealth of personal experience and dozens of real examples to explain why convergence between brand building and DM matters and exactly how it can be achieved faster driving more profits. This is a must read for anyone who wants to get the most out of their efforts to communicate effectively and efficiently with customers.”

—Dennis R. Howard, Dean and Philip H. Knight Professor of Business Charles H. Lundquist College of Business, University of Oregon

“This is a book that the business world has been waiting many years for. My company has been a keen follower of Richard Rosen’s theories for many years and his methods have brought us great successes across a number of products and brands, so I would strongly recommend this book to anyone who wishes to significantly improve their marketing and advertising ROI. Convergence Marketing is sure to become the industry bible for bridging the gap between brand building and direct response. It will give you all the necessary tools to efficiently leverage your every marketing dollar; to not only alert customers of your presence, but to lead them to actively respond, build relationships with you, and most importantly buy from you.”

—Sandi Cesko, President Studio Moderna—Ljubljana, Slovenia

“Convergence Marketing underscores the fact that most marketing is going direct. The combination of brand and direct highlights the power of direct, encompassing relevance and responsibility, leading to results.”

—John A. Greco Jr., President & CEO, Direct Marketing Association

“Marketing professionals are now living in a world of ‘and’. Push-and-pull communications; offline and online; print and video; paid and non-paid media. Effectiveness demands leveraging this and it demands integrating marketing communications around and for the consumer. Convergence Marketing does a great job of illustrating why and how.”

—Tom Collinger, Associate Dean and Department Chair, Medill Integrated Marketing Communications Program, Northwestern University

“Richard Rosen’s book shows you how to maximize the benefits of brand advertising—and the best of direct—it does not create a false merger but combines the best of both disciplines. It is based on a thorough understanding of the customer and their point in sales cycle. The final touch, which really matters, is how by using appropriate financial measures a company can measure the value of its customer profitability.

I thoroughly recommend this book. It is full of antidotal business examples which bring practicality to the text. The tools and processes covered, if followed properly, will deliver accountability, scalability, and consistency.”

—Professor Derek Holder, FIDM, Managing Director and Founder, The Institute of Direct Marketing

“I have been looking for something like Rosen’s Velocity Scale™ for years. This will let me talk with my clients using a language we can all understand. And the fact that I can provide immediate response at each level of the scale will help me guide my clients in spending their shrinking marketing dollars wisely. Richard Rosen makes this concept clear and simple. I can’t wait to begin using it.”

—Betsy Ashton, Marketing and Public Relations Consultant, BearingPoint

“Convergence Marketing: Combining Brand and Direct for Unprecedented Profits is perhaps the most important and thoughtful book on how to sell to customers at a distance since Lester Wunderman’s Being Direct. It is my sincere wish that this book be translated into as many languages as possible to enable marketers worldwide to benefit from the wisdom and sheer practical beauty of this book. It will bring together the finance, sales, marketing and direct marketing functions and enable them to understand this kind of marketing exercise from each of their respective professional needs viewpoints. This deserves to be considered by every marketer to be a must-read, and she should buy extra copies for finance and sales.”

—Charles Prescott, Vice President, International Direct Marketing Association, USA

Copyright © 2009 by Richard Rosen. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication DataRosen, Richard G. Convergence marketing : combining brand and direct for unprecedented profits / Richard G. Rosen with Jane Rosen. p. cm. Includes index.

eISBN : 978-0-470-52239-4

1. Branding (Marketing) 2. Direct marketing. 3. Marketing. I. Rosen, Jane. II. Title. HF5415.1255.R67 2009 658.8—dc22 2008042914

.

To Jane—my wife, best friend, and partner.

INTRODUCTION

Two roads diverged in a wood and I—I took the one less traveled by,and that has made all the difference.

—ROBERT FROST

After 20 years toiling in the trenches of the advertising industry, this book grew out of my quest to converge two disciplines of thought. My first job out of business school led me down the road of direct marketing. Soon after, another road led me to advertising. I realized that each school was steeped in brilliance, yet lacking in so many ways. I wanted to bring those separate roads together and create a new path that would gain better traction. It was suddenly so clear that if we could utilize the disciplines of both direct and brand advertising, while respecting the needs of the customer, we’d have a better set of tools and processes to deliver what the C-suite needs—accountability, scalability, projectability, and consistency—faster and with less money.

So here’s the result—your primer on how to successfully bring the school of advertising and the school of business together! Because convergence grew out of my frustration with the gap between those two worlds, I know I’m not the only one feeling it. I have experienced similar frustrations with clients and peers. This is the logical direction in which our industry has been moving for years. We’ve all sat in too many meetings watching adversaries from the brand and direct departments speaking to each other in foreign languages without an interpreter in the room. What a waste. Why not participate in an empathetic dialogue with our colleagues? We need a common language and tools that will help us work together toward our shared goal: to make money and build brand resonance. That’s why a palatable new vocabulary is part of the critical path for ease of acceptance. You’ll learn new words and terms like brand-interaction as you are introduced to the convergence toolbox.

The other essential element to make convergence work is a visual common ground. During my years of dialogue with both brand and direct practitioners, I have developed a process tool called the Rosen Velocity Scale. One of my clients, a VP of branding, calls it the killer application. It’s a tool that brings visual understanding of the balance between brand and direct. It’s used to determine the goals of the communication, so everyone involved can see them—and then deliver!

Finally, we must get the sales and finance functions on board. As the adoption curves of customer relationship management (CRM) have shown, we can progress much faster if the executive suite embraces this change—especially if it embraces the model of real-time accountability. We have the technology; it’s time to use it! For the same reason billions are streaming into the web as the next frontier, convergence marketing is the new toolbox to deliver accountability and profits with reduced business risk from both offline and online media.

Unlike the earlier attempts of integration marketing, convergence brings the disciplines of brand and direct together like never before—to generate profits your budget never dreamed of. It is the culmination of our past successes into newly refined processes and creative tools that build brand resonance through interaction. So let’s get started!

What I’m offering is a new set of glasses. Put them on, and see what a difference this new perspective called convergence makes as you join me on this new road that most could not see until now.

—RICHARD ROSEN

I

CONVERGENCE OF BRAND AND DIRECT

1

WHY CONVERGENCE MARKETING ?

We live in a world that revolves around the individual. We celebrate self-expression at every turn, within the personalization of every product we buy. We pursue personal desires; we constantly download music, games, and films on communication devices that fit into our back pockets. And the individual controls it all. This is a far cry from the way we’ve always done it. These days, individuals decide not only how marketers and advertisers can reach them, but also if and when we can reach them at all. If they are inclined to grant us access, they choose where and how the communication takes place. The individual controls his or her relationship with the brand. The only way those of us in marketing and advertising can regain some leverage is to love the individual. We need to empathize with him or her, respect him or her. We need to gain the individual’s trust so he or she will trust the brand, which gives us what both sides want—enduring brand loyalty. The best way to achieve this is by combining the best tools from the two major marketing disciplines, brand building and direct marketing.

Convergence is the happy union of the best of brand and direct. It also includes tools from sales. All of these tools are fused to build loyalty, through a respectful and empathetic dialogue with the freethinking, experiential individual known as our customer. Convergence retains the powerful imagery and messaging of brand advertising, while leveraging the motivational techniques of direct marketing, and focusing all of it on the goals set by sales. It is powered by a financial model that statistically determines the expected worth of the individual, and it all happens in real time. This all adds up to making money faster than ever before, and it has the unique advantage of being a process we can repeat over and over again, as well as proving critical path accountability to the corporate financial officer (CFO).

The theory of convergence has evolved out of my own experience within the school of business and the school of advertising. After all, I am a card-carrying, MBA-trained, business-minded guy, who loves creative advertising. So this methodology strives to bring together the left and right brains for the most effective possible work. It unites creative and financial, strategic and intuitive, in a collaborative effort to reach a shared goal. That goal just so happens to be our primary job requirement: to make money. It’s about building brand, increasing sales, and improving the bottom line.

Although convergence is a new model, as a practitioner you’re already halfway there because it’s about using what you already know from your discipline and combining it with the other half you haven’t really met. It’s a proven model, with pragmatic tools to guide us into the next phase of our craft. Convergence marketing is the logical next leap for advertisers and marketers looking to deliver greater results and profits in today’s increasingly competitive global economy.

The benefits are tremendous and measurable. Using the new tools, we can balance and leverage resources to drive brand and demand via all media and channels. At the same time, we’ll create an environment where everyone can work together, bringing his or her best to colleagues at the table, rather than competing against each other in the same tired silos.

EARLY CROSSROADS: WHEN TWO PATHS CONVERGED

I’ve been developing this method for over 30 years—a journey that began when I was a franchise marketing manager for Kawasaki Motors Corporation’s northeast region. It was my second job out of college as an undergraduate, and I was raring to go. It was my dream job. As a teenager I loved motorcycles, and rebuilt my first bike at age 16. I got a job working on bikes after school at a local shop, and I loved everything about them. I even spent weekends road racing bikes, at speeds cresting 125 mph and now the “man” was paying me to ride.

I left the evergreen-filled campus of the University of Oregon for the not-so-green turnpikes of Highland Park, New Jersey. I lived right at the crossroads of Route Nine, Route One, the New Jersey Turnpike, and the Garden State Parkway. Newark Airport was up the road, just past the three refineries. I can still see the sunrise through the smokestacks over the Jersey shore.

At Kawasaki, my job was to market the concept of fun with fast motors attached.

The tag line for Kawasaki was right on: “We Know Why You Ride.” It was strong, macho, and speed-oriented. They were speaking to me, their target audience, a bike lover through and through. Their agency, J. Walter Thompson, was right on the money. But I knew there had to be more we could do to sell these great bikes. After all, I was young, passionate, highly competitive, and ready to sell franchises.

All of the dealers relied on mass advertising, mostly print ads, to build brand and drive traffic. Kawasaki advertised in all the trade magazines, as well as any others that targeted men aged 16 to 24. But I wanted them to draw bike lovers like me into the shop. I mean, if you sent me an invitation to come by and test drive one of those babies, you’d have had me by the chaps, if you know what I mean! So why weren’t we doing that? It seemed easy enough. They were spending somewhere in the area of $5,000,000 on print advertising, a few TV spots, tradeshows, and bike races. That was a lot of money back then; yet we were only reaching a small percentage of our target. All of this money was going into print ads that were creative, on message and gorgeous, but didn’t get guys into the shop. Our director of advertising knew he didn’t have enough money to drive the frequency he needed to accomplish his task.

I, of course, wanted sales to move faster. I just knew if we sent out an invitation to guys like me to come in and take a test drive, we’d be in business. These were great bikes, and after all, this is where the rubber hit the road! What a great compliment it would be to the strategy of building brand awareness. Then I discovered that we had access to about eighty percent of all the Department of Motor Vehicles (DMV) records across the United States, and we could get a biker’s address just by asking. Man, oh, man, this was perfect; it just made sense. But when I suggested it to the higher-ups, I was told to stick to doing the franchise marketing I was hired to do. So I did . . . for the time being.

That experience has always stayed with me. It was the catalyst for all of my investigations into marketing and sales. I guess you could say it was the moment of inspiration for this methodology because I suddenly understood both the buyer and the seller. I knew how to make both happy, and it just didn’t make sense to disregard an idea like the invitation to the store. Using the language I know now, I guess my question was, why not enhance the brand message with a call to action to get the individual to move forward in the sales process? Why not give our target the brand experience on the road, by converging the paths of brand and direct? And I wasn’t even the big stakeholder—just a kid who wanted to sell franchises where these great bikes flew off the shelves at record-breaking speed. Why not combine great creative and a decisive call to action?

THE TRADITIONAL MODEL VERSUS BUILDING BRAND AND DEMAND