Cultural Innovation: Triumph of a Better Ideology’ Look to Anthropology for Inspiration
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QUARTER 1 JANUARY 2012 NEW THINKING, DIFFERENT PERSPECTIVES Cultural innovation: triumph of a better ideology Douglas Holt and Douglas Cameron NEVER WASTE A GOOD CRISIS Sir Terry Leahy QUARTER 1 QUARTER 2012 JANUARY ACCOUNTABILITY IS NOT ENOUGH Rory Sutherland THROUGH THE GLASS CEILING Janet Hull 1 cover.indd 1 28/11/2011 19:34:31 Market Leader_Experienica.HR.pdf 1 11/11/2011 13:05 Editorial Keeping brands healthy i rEcEntly attended a lecture on the applications of neuroscience to marketing. All the data marketers will ever need, it was claimed, can now be obtained from ‘neurometrics’ – via MRI scanning, EEG measurement and eye-tracking devices. I listened to the lengthening list of uses with mounting disquiet and an article formed in my mind entitled ‘Caution: neuroscience may be dangerous to the health of your brand’. The lead article in this issue provides the explanation of why the skills required for brand building live in a parallel universe. Douglas Holt and Douglas Cameron in ‘Cultural innovation: triumph of a better ideology’ look to anthropology for inspiration. It is commonplace to say that brands live in the mind (as opposed to the factory). But where they really live is in culture, in society’s norms, values, codes and practices. And while yes, neuroscience and anthropology can exist together, the danger is in what we qualitative researchers call ‘physics envy’ (the need to elevate market research to the level of the pure sciences). Put access to the brain – the human version of the Rosetta Stone – together with lots of gadgetry that measures things and before you know it, the new and intriguing drives out the old but essential. The key point that Holt and Cameron make is that innovation models tend to reflect an engineer’s view: technology is the necessary driver. Yet, cultural innovation, a new and better ideology (think Innocent, Starbucks, Harley Davidson, Dove and many many more) are just as innovative and likely to be just as profitable. Neuroscience may have a lot to offer but it will never contribute the insights into brand building to be obtained from a constant monitoring of the cultural environment. The article forming in my mind could equally have been entitled ‘Caution, data can be dangerous to the health of your brand’, and this is a theme that Mark Earls pursues elsewhere in this issue. The ‘data hosepipe’ – the literally billions, maybe trillions, of pieces of data flowing over us – can lead to paralysis. Advice: look for big patterns or you may lose the will to live. Also in the issue, Rory Sutherland explores concepts from Behavioural Economics as well as some other less familiar sources that have insightful applications in understanding brand choice. Finally, from the most successful brand builder of them all, Sir Terry Leahy, comes a checklist of the ways in which CMOs can turn the whole organisation into marketers. Use the power you have, he advises. After all, he did it. Judie Lannon, Editor [email protected] Market leader Quarter 1, 2012 3 3 editorial.indd 1 24/11/2011 20:23:34 contents In thIs Issue QUARTER 1, 2012 PUBLISHED IN ASSOCIATION WITH THE MARKETING SOCIETY BY WARC editor Judie Lannon editorial Board Paul Bainsfair, Roger Banks, Hugh Burkitt, Matthew Coombs, Martin Deboo, Paul Feldwick, Anthony Freeling, Roger James, Laurie Young editorial adVisorY Board Professor Paddy Barwise LONDON BUSINESS SCHOOL Stephen A. Carter CBE ALCATEL -LUCENT INC Simon Clift CONSULTANT Hugh Davidson CRANFIELD SCHOOL OF MANAGEMENT Martin Glenn BIRDS EYE IGLO Sir Paul Judge THE MARKETING COUNCIL Sir Chris Powell NATIONAL ENDOWMENT FOR SCIENCE , TECHNOLOGY AND THE ARTS Richard Scase UNIVERSITY OF KENT AT CANTERBURY Mark Sherrington QUIRK EMARKETING AGENCY Dianne Thompson CAMELOT GROUP Production editor Helen Devonshire PuBlisHer Matthew Coombs adVertisinG Diana Pounsford editorial & adVertisinG office Warc, 85 Newman Street, London WIT 3EX, UK Tel: +44(0)20 7467 8137 Fax: +44(0)20 7467 8101 Email: [email protected] suBscriPtions 28 Subscriptions Dept, Marston Book Services Ltd, Unit 160, Milton Park, Abingdon, Oxfordshire OX14 4SD, UK Tel: +44(0)1235 465574 Fax: +44(0)1235 465556 Email: [email protected] Web: www.warc.com/marketleader Annual subscription rates: £245, 405, $370 Market Leader is published quarterly by Warc in association with The Marketing Society. ISSN 1463-0877 The views expressed in contributions to Market Leader are not necessarily those held by the publishers or The Marketing Society. Printed by Pensord Press Copyright © Warc and The Marketing Society 2012. All rights reserved. Reproduction in whole or in part without written permission is strictly prohibited. 4 Market leader Quarter 1, 2012 4 contents.indd 2 26/11/2011 16:16:30 contents In thIs Issue ideas & issues 57 Speaker’s corner Are you pushing customers around? By 12 Marketing services providing too many channels, you could be 24 The divide has almost disappeared between discouraging people from using any of them ‘below-the-line’ and ‘above-the-line’. By Kamil Michlewski Where to draw the line now? By Andy Nairn 58 The last Word The advertiser’s generally cheerful demeanour 14 Public relations could be a disadvantage – we need to take Not so long ago PR executives had to fight more notice of case histories of brand failures for the chance to play an integral role in the By Rory Sutherland organisation’s business. The tables are turning By MaryLee Sachs features 15 Marketing food in china An understanding of what and how Chinese CoVER SToRy want to eat is a quick way to know China 24 Triumph of a better ideology By Tom Doctoroff Market innovation has been dominated by the world view of engineers and economists, 17 Marketing in recession but cultural innovation can be more successful When cuts are rife, it’s time to make the By Douglas Holt and Douglas Cameron case to your organisation for marketing expenditure in austere times 28 Blazing the retail trail By Vincent-Wayne Mitchell Many mould-breaking retail innovators are loved by shoppers and are bucking the 18 Gender agenda downward trend in the retail environment Genetics influence how we consume; more By Leslie Clifford and Laura Moser people are now choosing brands that celebrate their masculinity or femininity 32 Drinking from the big By Mary Say and Charlie Skinner ‘data hosepipe’ We have access to more data than ever, but we need to use that ‘data hydrant’ in the correct reGulars way or marketing benefits are lost in the deluge By Mark Earls 08 Brainwaves A selection of what’s going on from around 36 Co-creation is here: we the world of marketing can’t ignore it By Elen Lewis This powerful source of competitive edge is still one of the most misunderstood 20 Chopping Block By Doron Meyassed, Philip Burgess A great deal of time and money is spent on and Priscilla Daniel trying to find out what people think of brands, 32 but what do brands think of us? 40 Accountability is not enough By Jeremy Bullmore It’s time to reject the limitations of regular business language and devise a vocabulary 22 Viewpoint specific to marketing needs How does it feel when you’re on the receiving By Rory Sutherland end of healthcare? Insurers could do better 44 Partners or suppliers? By Hugh Burkitt Agencies like to think of themselves 53 Trendwatch as partners, but that is not realistic if they fail The consumer psyche is complex: attitudes to understand clients’ commercial needs and behaviour refuse to follow logical patterns By Derek Day By Melanie Howard 47 Never waste a good crisis 54 Best in Brief Tesco’s former CEO urges marketers to take advantage of these difficult times Reviews by Michael Bayler, Winston Fletcher, By Sir Terry Leahy David Nichols and Hamish Pringle 50 Through the glass ceiling 56 Letter from tokyo Several recent initiatives should make it easier Reflections on Japanese women, earthquakes for women in the marketing and advertising and ad agencies community to earn a place in the boardroom By David Nichols By Janet Hull Market leader Quarter 1, 2012 5 4 contents.indd 3 26/11/2011 16:16:35 in this issue contributors Market leaders Jeremy Bullmore is a former challenge through online sir terry leahy is a former anDy nairn is chief strategic chairman of JWT London and co-creation communities. CEO of Tesco and one of officer of Dare, Campaign’s the Advertising Association Britain’s most influential Digital Agency of the Decade and is currently a member of Derek Day is a founding businessmen. As marketing and the IPA’s Effectiveness the WPP advisory board. partner of Passionbrand, and director he was responsible Agency of the Year. He was co-author of Creating Passion for the famous Tesco Loyalty named the UK’s top planner, PhiliP Burgess is a director at Brands: how to build emotional programme. He became CEO by Campaign, in 2011. Promise Communities, which brand connection with customers’ in 1997 and led the expansion helps solve insight, innovation published by Kogan Page. into Europe and Asia. DaviD nichols is managing and brand strategy challenges partner of the brandgym where via online co-creation tom Doctoroff, North Asia Doron meyasseD is an he leads brand strategy and communities. He has consulted CEO of JWT, is one of Asia’s entrepreneur with a passion for innovation projects across for brands including Danone, most respected marketing cutting-edge technology. He the world. He has published PepsiCo and Starbucks. professionals. He is the author founded Promise Communities three marketing books, three of Billions: Selling to the New and monitors technological musicals and managed an hugh Burkitt is chief Chinese Consumer and What trends.