My CMO 2.0 conversation with John Kennedy, the head of corporate marketing at IBM, was a truly great discussion. John started his marketing career at one of the best on-the-job training companies for branding — Proctor & Gamble, where he worked on some well known brands like Downy, Spic and Span, and Cinch. Following that he joined IBM’s consumer division in the mid-90s, and subsequently, spent 8 years with IBM in Tokyo in a variety of product marketing, geography marketing, and sales roles. So, John is another true and true marketer in this ongoing series of CMO 2.0 Conversations.
According to John, the main causes for the recent changes in marketing come from the digitization of business and the increased interconnectness of people. The fundamental change that marketing has undergone is that it has once again become a social science — it is about understanding how people connect, what they aspire to, and what motivates them to do what they do.
At IBM they use three lenses to understand how the marketing function is fundamentally changing — knowing the customer, knowing markets, and knowing audiences. In the past marketers were mostly limited to understanding their customers in terms of big demos and big psychographics. Now, big data allows marketers to understand their customer at the individual level. Big data also gives marketers the ability to serve market segments better — moving from a transactional focus to a much more customer-centric conversation around the benefits of products and services. The last lens relates to the fact that both companies and customers now have a much higher visibility and transparency into one another’s business — with customers who now being able to see behind the firewall and assess whether the way a company operates actually matches with what it promises through its marketing.
Like other leading marketers that I interviewed recently, John too believes that the brand is not just embedded in the promise that marketing makes about its products and services and how well those products and services deliver against that promises, but it is also embedded in the culture of the company — how the company actually behaves behind the firewall. Along those lines, IBM has done a lot of work in humanizing its brand by allowing the IBM brand to be defined by the IBMer. They see themselves as an intellectual capital company, with their employees delivering the value that gets created and offered for their customer.
Next we talked about the shifting advocacy role that marketers need to embrace. They increasingly need to take all the learnings that they develop about the customer and bring that back to the C-Suite rather than think of themselves as the corporate spokesperson in the marketplace. While marketers will continue to have the need to communicate messages to the marketplace, a majority of the content about a company’s products and services now flows through word-of-mouth.
Once again, marketers need to become more inter-disciplinary, and be concerned about more aspects of the company’s operations than they have traditionally been involved with. With the brand being impacted by so much more of the company’s operations, marketers need to think way beyond the four P’s when they think about their role. Not only do they need to become more knowledgeable, they also need to rely on more of their C-Suite counterparts to help execute the brand. And with marketing becoming increasingly technology-enabled, which is especially true of their relationship with the CIO.
Marketing in the future will not feel like marketing. It will increasingly feel like a welcome service. With marketers developing a better understanding of consumer behavior, both through social sciences and data, marketers will be able to deliver a whole new level of value to their customers. In order to so, however, marketers will need to develop a level of “digital empathy” — by not only contacting customers with the goal of achieving commercial results.
Following this conversation on the changing role of marketers, we switched to the topic of culture. According to IBM research, leading marketers are focusing more on corporate character than on the products they sell. As I said before, marketers have to become concerned with not only how a company comes across in its marketing, but how the company actually operates — and that is called culture, or in IBM parlance corporate character. Culture, of course, is the externalization of shared corporate values and beliefs.
We closed the conversation on the topic of measurements and ROI, which is increasingly tricky as marketing contributions spans both the range of hard things and soft things. Marketers are going to have to be careful to select those key analytics in this growing amount of information that best represent their contributions.
Other things that we discussed include:
- How market researchers need to shift their thinking from consumer segments to consumer tribes.
- How to leverage social media and communities as part of marketing.
- The importance of listening to what is being said about your brand and gauge the sentiment of those conversations.
- The importance of matching internal tribes with external tribes.
- The changing need for talent within the marketing department.
- How the promise of gaining actionable insights from big data is still very much in the early stages.
- How to transition from a transactional customer relationship to one that is focused on the customer journey.
- How to balance an historic/iconic brand like IBM with having a brand that appeals to new generations and consumer tribes with the example of Smarter Planet as a platform to make that happen at IBM.
Tags: big data, changing role marketing, corporate character, culture, francois gossieaux, human 1.0, humanizing brand, ibm, john kennedy, marketing advocacy
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