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Cutting Edge: Our Weekly Analysis of Marketing News Cutting Edge: Our weekly analysis of marketing news 28 February 2018 Welcome to our weekly analysis of the most useful marketing news for CIM and CAM members. Quick links to sections Marketing trends and issues Agencies UK B2B heads across the pond Advertising One of the findings of the UK B2B Marketing The changing depiction of women Agencies Benchmarking Report 2018 is that UK B2B The use of women in ad campaigns has stood the agencies are expanding to the US. Out of the top 20 test of time. Dove’s “Campaign for real beauty”, agencies in the latest league table, 60% now have launched over ten years ago, was the moment when at least one listed office in the US. The figure is 45% women could be themselves rather than an for the top 40 agencies. In contrast, very few US airbrushed image. Fourteen years later Sport B2B agencies have set up shop in the UK, the most England’s “This girl can” campaign only featured real successful being gyro and Stein IAS. This is women. However, Kate Dale, head of brand and surprising because the US, long regarded as the digital strategy at Sport England, believes that, “home” of B2B marketing, has traditionally although women are no longer being depicted as understood B2B better. In fact, much of the simply housewives, their image is still unrealistic: technology and terminology derives from the US. “women just simply will not stand for being told that The expansion of B2B agencies across the Atlantic they should have a perfect body”. The “body- reflects the growing confidence of the B2B sector. positivity” movement is more than just a passing B2B Marketing, Winter 2018, p50 trend and the ad industry must transform itself accordingly or accept the backlash. Relationships – McDonald’s-Leo Burnett Campaign, February 2018, pp78-82 (Kemp) Leo Burnett and McDonald’s have one of the longest-standing relationships in British advertising Sex sells – even for monkeys history. McDonald’s has achieved over 11 years of Sex sells, even if the audience is a monkey! continuous growth in the UK, a state of affairs that Research conducted for the journal, Plos One, found Alistair Macrow, its senior-VP and CMO, wants to that macaques (a species of monkey) preferred maintain. This article records a discussion between brands that were represented by an attractive Macrow and Chaka Sobhani, chief creative officer of female macaque. The monkeys were shown a brand Leo Burnett, which took place in a McDonald’s logo alongside a low-status monkey, a dominant restaurant in Essex! monkey, a sexy one and a neutral picture. When the Campaign, February 2018, pp54-55 (Macrow and pictures were taken away they chose the brand that Sobhani) had either been associated with a high-status or sexy monkey. However, the males, rather than the WPP horizontal as tech companies muscle in females, also seemed to like the low-status Keith Weed, CMO of Unilever, has said that social monkeys. The researchers note that “the origins of media is “at times little better than a swamp in the effectiveness of sex and status on advertising terms of transparency” and has warned Facebook remain a puzzle”! and Google that that he will remove his ad money The Times, 24 February 2018, p40 from their platforms unless they take remedial steps. However, the scandal in which brands were appearing alongside terrorist content online has had Don’t forget, reading this publication can count towards your annual CPD record. 1 www.cim.co.uk/charteredcpd Cutting Edge: Our weekly analysis of marketing news a greater impact on large ad groups, such as WPP, to events. Observing people provides the greater whose market value has fallen by a quarter over the granularity of data that is sometimes lacking in big past year. The biggest threat to these ad groups data. A brief case study of Lego is included. comes from the likes of Google and Facebook who eventindustrynews.com, 23 February 2018 (Desai) control around 60% of the ad market and can afford to employ lots of ad sales staff. There is a possibility Customer relations that WPP and other big groups – Publicis and Targeting customers at high risk of churn Omnicom – could be squeezed out. They are also Companies increasingly manage customer churn facing competition from professional services proactively, often by identifying customers that are companies. WPP’s Sir Martin Sorrell wasn’t to rely on at highest risk and fine-tuning their retention “horizontality”, whereby his agencies collaborate to strategies accordingly. So far, no research has been sell more services, but is he being too laid back? done on whether the optimum strategy is to target The Sunday Times (Business & Money), 25 February individuals at high risk of churn. Through two field 2018, p8 experiments, the authors show that customers who are at the highest risk of defection are not always Brands and branding the best targets for churn programmes. They Corporate brand association indicate that retention programmes might not work This study looks at the effect of corporate brand because they don’t use the right targeting rules. associations on consumers’ cognitive (product They suggest an alternative approach which involves attitude and purchase intention) and affective targeting customers based on their sensitivity to the (corporate commitment) responses across the communication, regardless of how high their risk of durables, services and FMCG sectors. It finds that churn is. corporate brand associations fall into two categories: Journal of Marketing Research, Vol 55 February 2018, universal associations which are influential in all pp80-98 (Ascarza) sectors; and sector-specific associations, which have varying effects on consumers according to sector. It Initial price discounts and customer retention also shows that a corporate brand story does not Discounts are often offered to new customers in the work across all sectors. In addition, corporate hope of building sustainable relationships. However, associations do not always have a positive influence there is inconclusive evidence when it comes to the on the consumer. It concludes that there are two long-term effectiveness of initial discounts on routes through which corporate brand associations customer retention. The authors hypothesise that can influence consumers: either through their moderate initial discounts (5% to 35%) have cognitive or affective responses. positive effects on customer retention while low Journal of Marketing Communications, Vol 24 (3) April (less than 5%) and high (more than 35%) discounts 2018, pp230-249 (Mann and Ghuman) have negative effects. Two studies are carried out in the insurance industry which support the authors’ Brand engagement behaviours theories. Another experiment reveals that moderate This study examines the role of perceived value and discounts lead customers to have higher innovativeness in promoting customer brand expectations of future benefits. engagement behaviours and brand loyalty. A Journal of Marketing, Vol 82 January 2018, pp115-131 conceptual model was tested on customers of Uber (Olivares et al) in Australia. It concluded that, when promoting brand loyalty, service innovation needs to have the Direct marketing right characteristics (perceived value, service Influence of economic and relational DM concept newness and relative advantage) and B2B companies spend significant amounts on direct practices to encourage customer brand engagement marketing to manage relationships with customers behaviours. but there is limited understanding about how the Journal of Services Marketing, Vol 32(1) 2018, pp70-82 effectiveness of direct marketing varies according to (Leckie et al) value propositions. Direct marketing initiatives are generally designed to convey economic or relational Conferences and events values. However, firms need to understand how The value of small data customers evaluate these marketing The event industry is intent on measuring the communications because these will affect their effectiveness of the experiences it creates for buying behaviours. Analysing data from a Fortune attendees. It relies on big data to analyse patterns 500 B2B services firm, the authors arrive at three of attendee behaviour, to identify trends and devise main conclusions. future strategies. However, this should include an Journal of Marketing Research, Vol 55 February 2018, analysis of people’s behaviour first-hand, something pp48-68 (Kim and Kumar) known as “small data capture”. Small data is important to all marketing disciplines, but especially © Copyright 2018 CIM 2 Cutting Edge: Our weekly analysis of marketing news Direct mail – innovation and measurement Marketing Direct marketing, particularly direct mail, is having a Impact of company boards on new products renaissance. The launch of the Joint Industry Little research has been done on the influence of Committee for Mail (JICMail) audience data standard company boards on new products. This study in January has given it even more authority. During considers the effect of a company’s “board lock Q3 2017 direct mail ad spend rose by 5.9% year-on- centrality” (how much board members are year and it is the third-largest media channel in the connected to boards of other companies) on new UK after online and TV. According to IPA product introductions. They suggest that board lock TopuchPoints data, 38% of people buy or order centrality gives companies additional market something after reading a mail, while 87% of adults intelligence which provides opportunities for keep mail for more than a month. This article incremental new products. They hypothesise that discusses: JICMail; the forthcoming GDPR; and two aspects of board leadership affect this innovation, in the context of direct marketing. relationship: internal leadership and marketing marketingweek.com, 19 February 2018 (Hemsley) leadership. The theory is tested using a panel of US CPG companies, a sector where new products are Law mainly incremental. GDPR may impede Facebook advertising Journal of Marketing, Vol 82 January 2018, pp132-148 Facebook’s collection of personal data will become (Srinivasan et al) illegal under the new GDPR which takes effect in May.
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