Transcript Transformational Marketing - Front Page

Transformational Marketing
Automotive News World Congress
Jan Thompson,
VP Marketing
Nissan North America
January 18th, 2006
Radical times demand radical
changes in marketing
Radical transformation in technology is taking place and
will only continue to accelerate
“The Law of Accelerating Returns”
Source: The Singularity Is Near, Ray Kurzweil - 2005
2
Radical times demand radical
changes in marketing
The traditional hierarchical marketing model is
no longer as effective
• Demographic Shifts
• Technology Advances
• The Democratization of Content and Media Meshing
• Impact on Costs
3
Radical times demand radical
changes in marketing
Demographic and Cultural Changes
Millennials or Generation Y
Generation X
Baby Boomers
4
Radical times demand radical
changes in marketing
Technology Advances
The Proliferation of Media Channels
Source: Marketing Leadership Council, 2005
5
Radical times demand radical
changes in marketing
The Long Tail - as it applies to the automotive industry
• More nameplates with lower volumes than ever before
• All products have an opportunity to capture consumer awareness
to the number of media channels available
* The Long Tail concept from Wired Magazine, 2004
due
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Radical times demand radical
changes in marketing
The Democratization of Content and Media Meshing
Chatting on Xbox
Live about the iPod
connector in the
URGE
Click on banner ad to
check out Nissan
URGE microsite, sign
up for next podcast
Playing Project Gotham Racing
3 on Xbox with Nissan URGE
concept car
Edmunds.com message
boards to see what other
people are saying about the
Nissan URGE
A little more interested in the model,
off to check out any Auto show
pictures on My Space blogs
Downloads a cool
Podcast with a review
from a guy in his My
Space group that went
to the Auto show.
Download some photos from
the show as wallpaper onto a
Sidekick II
phone/internet/email/instan
t message/camera device
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Radical times demand radical
changes in marketing
Impact on Costs
• Audience fragmentation
- 1960: 6 channels on average
- 2005: 100 channels on average*
• Prime time CPMs have increased dramatically
- 1994: $7.64 CPM**
- 2004 $19.85 CPM
• Network TV viewership has declined almost 50% over the
30 years**
last
Source: *Forrester, “What’s Next for TV Advertising” December 2004; ** Advertising Age “The Chaos
Scenario” April 2005
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Radical times demand radical
changes in marketing
What does this mean for the Automotive Industry?
• The Automotive industry spends more
any other category…..
68%
322
17%
14.5
Million
191
17.0
than
Billion
1378%
17.0
Million
700
Million
1985
2005
Number of Models
1985
2005
Industry Sales
1985, Wards Automotive Yearbook (1985), 2005, Automotive News Data Bank (2005)
1985
2005
Advertising Spend
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Comparison of Marketing Models
Traditional Model
Transformed Model
Planning Objective:
Planning Objective:
Communications goals based on
reach/frequency
> Brand Transformation
> Channel Integration
New Media metrics
Test
Targeting Method:
Mass mediums focused on large,
undefined segments
Ad tracking metrics like
awareness, brand opinion, TRP
and CPM
Refine
Targeting Method:
> Detailed consumer insights
> Embrace media meshing
> Enable peer networking
Test
Measurement:
Measure
>
Measure
Refine
Actionable Business
Intelligence:
> Full funnel focus
> Data Modeling
> KPIs, ROI & CLTV
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Radical times demand radical
changes in marketing
Search
$22 Billion
• One of the biggest drivers of transformational
marketing
• It is evolving quickly:
- Audio search
- Video search
- Geographic search
- User generated content search
$8 Billion
2005
2010
The Search Transformation
-* ClickZ, 11/2005
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Radical times demand radical
changes in marketing
Search is a significant part of our media mix
• Nissan Summer Sales event paid search results:
- 34% of all web traffic to NissanUSA.com
- 31% of interactive sales tracked to search activities
- ROMI of $31.82 returned for every dollar spent
-* ClickZ, 11/2005
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The Transformed Marketing
Company
To achieve this transformative model
internal and external factors must be addressed…
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The Transformed Marketing
Company
Managing for Success
• Re-examine and re-organize internal organization
Clear
Brand
Vision
What
How
Manage the
Consumer
Experience
Who
Relentless
focus on the
Consumer
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The Transformed Marketing
Company
Managing for Success - Internal Organization
• Subject Matter Experts
- Search
- Data analysis and modeling
- Business Intelligence
• New OEM communication
strategies must be aligned with
regional and dealer strategies
OEM
Dealers
Regions
Create a consistent and integrated
dialog with the consumer
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The Transformed Marketing
Company
Managing for Success - External Organization
• Re-examine and re-organize external organization
Traditional Model
Transformational Model
Agency
Client
Lead Agency
Agency
Agency
Agency
Client
Agency
Agency
Agency
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The Transformed Marketing
Company
Seven keys to transforming your marketing:
1. Know what you stand for and relentlessly execute against it
2. Learn fast and adapt quickly
3. Create an action oriented culture
4. Structure internal and external organizations to align with the new
communication paradigm
5. Start with the Idea, not the buy
6. Aggressively innovate – it’s not how much you spend, but how you
engage your target
7. Embrace accountability
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