addressing challenges within marketing plan and spend ... · marketing budgets are 3x times the...
TRANSCRIPT
Addressing Challenges Within Marketing Plan and Spend Management
2© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 795823
JASON GALLOWAYManaging Director, KPMG
Marketing Transformation & Tech [email protected]
IntroductionWhat is Marketing Spend & Plan Management
1
Future of Marketing & Current Challenges
2
Leading Marketing Spend & Plan Management Capabilities
3
Panel Discussion4
Audience Q&A5
33© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 795823
MARKETING PLAN & SPEND MANAGEMENT (MPSM) IS A SYSTEMATIC APPROACH TO BUILDING A FINANCIALLY FOCUSED AND ALIGNED
ORGANIZATION
3© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 795823
4
The Future of Marketing
• Relentless enterprise-wide focus on the customer
• Requires Connected Enterprise
• Marketing needs to lead the transformation
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 795823 4
5© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 795823
Does Marketing have the credibility and capability to do so?
AB InBev brings together marketing and innovation in new global role … under disruptive growth officer2
How getting rid of the CMO ‘broadened’ Coca-Cola’s marketing approach2
Thomas Barta: “If marketing were a brand, you would fire the CMO”2
Mastercard on the ‘existential crisis’ facing CMOs and how it can be fixed2
Mastercard CMO Raja Rajamannar warns that too few marketers have both creative and financial experience, leading to them being replaced by chief revenue or growth officers.
TOP STORIES ANALYSIS
“Without broad understanding and consensus measures of the contribution of marketing to enterprise value . . . CMOs will suffer personally and professionally as they face expanded job scope, significant credibility gaps at the executive and board level”3
MasterCard CMO warns lack of financial expertise could lead to CMOs being replaced by chief revenue or growth officers. 2
Mondelez scraps CMO role and installs chief growth officer.2
66© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 795823
Marketing’s suffered from an inability to effectively plan, manage and measure marketing spend.
7© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 795823
Marketing spend vs ROI
Actual Percentage Change Prior 12 Months1
8© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 795823
While focused on ROI, the broader impacts of marketing spend management were missed.
Finance Reporting
Strategic Alignment
Demand Forecasting
Sales Productivity
Channel Partners
Marketing budgets are 3x times the industry avg. in firms with strong CFO/CMO alignment
Partner spend can be 50%+ but only 11% of marketers report their partner marketing budget is spent effectively
When sales and marketing are in alignment, average revenue growth is 3 to 5 times greater
41% of firms report the biggest challenge is getting accurate/timely customer and new product forecasts
Only 50% of CMOs report marketing activities are aligned to business goals
99© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 795823
Leaders have a greater commitment to planning, managing & measuring marketing performance
PEOPLE TECHNOLOGYPROCESS DATA
10© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 795823
To what extent do you agree with the following statements about allocating marketing investment resources?
Our investments drive the most measurable sales results possible
44.86% 69.77%
43.62% 60.47%
48.66% 54.76%
38.33% 53.66%
37.50% 52.38%
We are fully optimizing our marketing performance
Our investments maximize shareholder value
We are able to quickly adapt to changing customer preferences
We efficiently reallocate resources to high-performing
investments
High performers Total sample
Source: “Marketing Accountability: A CEO Blueprint”, Forbes CMO Practice, 2017
Most firms struggle with allocating and optimizing marketing investments, but not all. Highly accountable marketing organizations reported:
• 5% better MROI
• More than 7% higher growth
1111© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 795823
Leaders build their capabilities systematically
Holistic View
Financially Focused
Performance Driven
Organizationally Aligned
Technology Enabled
Roadmap to an end-to-end solution
Anchored in financial value generation
Comprehensive performance metrics
Agreement on shared goals & measures
MPSM platform with integration
12© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 795823
Marketing investment management affects your entire enterprise, requiring a holistic solution ...
Marketing Plan & Spend Management
PlanBudget
Source
Manage
Audit
Measure Report
ReviseForecast
13
Closing Comment
TO GET CONTROL OF ITS FUTURE, MARKETING NEEDS TO GET CONTROL OF ITS MONEY.
© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 795823 14
Panel Discussion
Mobile App Gamification Challenge/Beats Headphones Giveaway Code: KPMG & Aprimo drive mktg success
1515© 2019 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. NDPPS 795823
NATHAN CLARKDirector, Procurement Advisory
BRETT MOLOTSKYSr. Director
Panel Speakers