"This book empowers marketers to infuse their function with an investor′s mindset and drive sustainable marketing performance."
Pieter Nota, CEO Personal Health & CMO Royal Philips
Top marketers today don′t shy away from financial accountability. In fact, they actively seek to account for the return on their companies′ investments in marketing because they want their budget to make a difference for their brands and for their business: more relevant messages, more effective campaigns, more satisfied customers, more profitable promotions, higher returns to shareholders. If this is how you think about marketing, this book is for you. It is a book for CMOs who adopt an investor′s mindset, and it deals with the most pressing marketing performance questions:
- How much should you spend on marketing?
- How should you allocate your budget to brands or business units?
- What is the best instrument mix to achieve your marketing objectives?
- Which solutions and service providers do you need to get it done?
- Which capabilities should you build to make sure the impact sticks?
This isn′t a work of theory. This is a hands–on guide to better marketing, neatly packaged into ten concise chapters. Drawing on our experience as consultants to the world′s leading marketers, we bring you a wealth of proven success factors and real–life case studies. We won′t give you all the details on marketing operations in this book. Instead, we focus on the ten things you need to get right to drive marketing performance and grow your business.
"If you only read one book about marketing, make sure it′s this one. It is written for a board–level audience, and it treats marketing as a driver of higher returns."
Kenny Lam, Group President, Noah Holdings Limited
"Adding facts to creativity and intuition and driving accountability for success, that′s the future. This book paves the way into that future."
Christian Deuringer, Director Global Brand Management, Allianz
"This is exactly the kind of thinking marketers need to make a difference today: get your objectives straight, focus on the big buckets, and hold people accountable to generate quantifiable returns on investment: your team, your agencies, everyone"
Michael Trautmann, Founder and CEO, thjnk; Former Global Head of Marketing, Audi AG
Introduction: Smart Money vii
How much should I invest?
1 Budget sizing: Combine multiple lenses to right–size your marketing budget 1
2 Allocation: Put your money where your strategy is 19
How should I shape my messages?
3 Insights: Discover what really matters to consumers to sharpen your proposition 35
4 Storytelling: Take a publisher′s mindset and tell stories that cut through the clutter 51
How will I reach my target group?
5 One currency: Compare apples to apples as you make trade–offs between instruments 71
6 Science: Apply advanced analytics to drive fact–based mix optimization 89
How do I ensure excellence in execution?
7 Smart activation: Trim the fat off key instruments to drive incremental benefit 107
8 Partners: Build performance partnerships with marketing service providers 127
How can I drive change and sustain impact?
9 IT solutions: Use marketing ROI decision support solutions to transform your company 143
10 Agility: Infuse your organization with a return on investment mindset 159
THOMAS BAUER joined McKinsey in 2001 and is based in Munich. As a Senior Expert in McKinsey′s marketing strategy group he serves clients across industries and geographies on topics such as marketing spend effectiveness and brand management. Thomas co–leads the Marketing Navigator, a McKinsey technology solution for marketing performance optimization.
TJARK FREUNDT is a Partner in McKinsey′s Hamburg office. He joined McKinsey in 2001 and is co–leader of the EMEA Marketing and Sales Practice. Tjark leads McKinsey′s global service line for brand management and marketing effectiveness. His main areas of activity are logistics, energy, and chemicals. He is the author of many articles and books such as Power Brands.
JONATHAN GORDON is a Partner in New York. He joined McKinsey in 1995 and is the leader of the global marketing strategy service line. He helps consumer companies construct marketing strategies and build capabilities that drive top–line growth, spanning financial services, packaged goods, and automotive.
JESKO PERREY is a Senior Partner at McKinsey and based in Dusseldorf. He joined McKinsey in 1999 and is global leader of the Marketing and Sales Practice. He serves clients across multiple industries and a broad range of topics such as commercial transformation, marketing ROI, branding, customer experience, digital marketing, and advanced analytics. He is the author of Power Brands and Retail Marketing and Branding.
DENNIS SPILLECKE is a Senior Partner at McKinsey and based in Cologne. He joined McKinsey in 2001 and is leading the German Marketing and Sales Practice. He serves clients across multiple industries and a broad range of topics such as advanced analytics, commercial transformation, marketing ROI, branding, and digital marketing. He is the author of Power Brands and Retail Marketing and Branding.