Transformational Marketing
Automotive News World Congress
Jan Thompson,
VP Marketing
Nissan North America
January 18th, 2006
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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
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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
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Millennials or Generation Y Generation X Baby Boomers
Radical times demand radical changes in marketing
Demographic and Cultural Changes
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Source: Marketing Leadership Council, 2005
Radical times demand radical changes in marketing
Technology Advances
The Proliferation of Media Channels
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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 due
to the number of media channels available
* The Long Tail concept from Wired Magazine, 2004
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Download some photos from the show as wallpaper onto a Sidekick II phone/internet/email/instant message/camera device
Radical times demand radical changes in marketing
The Democratization of Content and Media Meshing
Playing Project Gotham Racing 3 on Xbox with Nissan URGE concept car
Chatting on Xbox Live about the iPod connector in the 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.
Edmunds.com message boards to see what other people are saying about
the Nissan URGE
Click on banner ad to check out Nissan
URGE microsite, sign up for next podcast
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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 last 30 years**
Source: *Forrester, “What’s Next for TV Advertising” December 2004; ** Advertising Age “The ChaosScenario” April 2005
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Radical times demand radical changes in marketing
322
191
20051985
17.0 Million14.5
Million
20051985
17.0 Billion
700 Million
20051985
Number of Models Industry Sales Advertising Spend
17%68%
What does this mean for the Automotive Industry?
• The Automotive industry spends more than any other category…..
1985, Wards Automotive Yearbook (1985), 2005, Automotive News Data Bank (2005)
1378%
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Traditional Model
Comparison of Marketing Models
Planning Objective: Communications goals based on reach/frequency
Targeting Method: Mass mediums focused on large, undefined segments
Measurement: Ad tracking metrics like awareness, brand opinion, TRP and CPM
Planning Objective: > Brand Transformation > Channel Integration > New Media metrics
Targeting Method:> Detailed consumer insights> Embrace media meshing> Enable peer networking
Actionable Business Intelligence:> Full funnel focus> Data Modeling> KPIs, ROI & CLTV
Test Measure Refine
Test Measure Refine
Transformed Model
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Search
• One of the biggest drivers of transformational marketing
• It is evolving quickly:- Audio search- Video search- Geographic search- User generated content search
Radical times demand radical changes in marketing
-* ClickZ, 11/2005
$8 Billion
$22 Billion
The Search Transformation
2005 2010
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-* ClickZ, 11/2005
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
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The Transformed Marketing Company
To achieve this transformative model internal and external factors must be addressed…
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Managing for Success
• Re-examine and re-organize internal organization
The Transformed Marketing Company
Clear Brand Vision
What
Who
How
Relentless focus on the Consumer
Manage the Consumer Experience
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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
RegionsDealers
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
Client
Lead Agency
AgencyAgency
Agency
Client
Agency
Agency
AgencyAgency
Traditional Model Transformational Model
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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