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Compiled by website editor Paula Ruzek, editor@ami.org.au

Posted 27 October 2011

No recession, just strong brand and weak brands

Review, Australian Marketing Institute Annual Conference, 19-20 October, Sydney

The retail panel discussion declared there wouldn’t be a recession in 2012 (Tim Burrowes with Dr Colin McLeod, David Rumbens, Dean McEvoy, Ian Alwill, Jennifer Cook and Kelly Baker-Jamieson). However, David Rumben, from Access Economics, highlighted that Australians were saving more and people had less job confidence.

Social analyst David Chalke described an unsettled Australia but reminded us that there were opportunities in uncertain environments; anything that makes people feel they are back in control will succeed. Academic Mark Ritson hit it hard, saying there’s no recession, just strong brands and weak brands (see Zara’s Australian success).

The message…marketers need to shape up or be overtaken by faster moving companies. IBM's Jarther Taylor showed that many CMOs felt unprepared for today’s complexity and we need to better deliver value to customers as individuals. The 16-week campaign development timeframe is dead as smart business responds to the immediacy of demand (Andrew Murrell, CBA).

Telstra's Nick Adams argued that marketing was neither art nor science but business, and a foundation of repeatable processes is key. LeadStreet's Rod Grigson’s advocacy for automation, delivering better campaign and resource management, was one smart strategy. So was gaining a full picture of a business to enable a seamless contemporary experience, with design a core driver (Hans Hulsbosch, Hulsbosch Communication by Design).

The retail panel discussion prioritised customer experiences and challenged the meaning of loyalty. As women form 80% of consumer purchases, Linda McGregor (All About Eve) emphasised the importance of marketing that ‘gets’ women’s values around people and connections. Rhys Hayes (IE Agents of Change) discussed ‘curating’ individual experiences and using digital dashboards for real-time customer insights. Dr Colin McLeod (Australian Centre for Retail Studies) explained consumer dissatisfaction with the gap between ‘green’ intentions and action, and the role for brands around education. In balancing risk-taking with market responses, Sally Loane (Coca Cola Amatil) highlighted the value of public affairs working hand-in-hand with marketing.

There was more debate than usual around social media and Bruno Fiorentini Jr (Microsoft) said we needed a real objective to get involved. Research by Scott Doughty (ExactTarget) showed that a Facebook ‘like’ was not permission to market – stay in touch but don’t over communicate. Brands need to create experiences and change the way they communicate in this space (Stuart Bartram, LinkedIn). Mobile strategies were featured, noting the rapid uptake in their use as decision-making tools (Scott Doughty). As for TV, Michael Branagh (Nine Entertainment) argued that digital was liberating consumers, providing flexibility that should not be overlooked.

Mark Veyret (PwC) set the scene for proactive strategies for the future: we need to think differently as companies such as Lego show that "innovation comes from everywhere". Co-creation, he said, made change happen. To echo Bruno’s message, context, not content, is king – and our response to the future is seeing everything through the customer’s lens.

Posted 20 July 2011

Institute puts sustainability on the agenda for marketers

The Australian Marketing Institute has published a discussion paper to address the environmental and social imperative to produce and market products that better meet sustainability guidelines.

Institute Chair Lee Tonitto describes the paper as the first step for a new Institute sustainability project that will foster the adoption of sustainability in marketing and general business. The project could lead to sustainability principles being built into the AMI Member Code of Practice, thereby setting standards for professional marketers throughout Australia.

The paper is authored and edited by Dr Colin McLeod, head of Monash University’s Centre for Retail Studies (ACRS), Dr Samantha Thomas, a Senior Research Fellow in Monash University’s Department of Marketing, and Retail Consultant Alana Jones. It was originally conceived as a first stage of the Institute’s sustainability project by immediate past Chair Roger James.

The discussion paper is built around research of fact and opinion about sustainability, with consumer consciousness about the issue being driven by climate change. Quoting various studies and authorities, it notes that sustainability sensitivity has moved from fringe to mainstream thinking among Australian consumers, who are already spending $15 billion annually on environmentally friendly goods and services. This is expected to continue increasing by 20 per cent a year.

The paper says: “The highest demographic concentrations of green shoppers are in the older baby boomer generation, heavily influenced by their children as they have both the time to seek out specialty items and the resources to afford premium priced products.”

Although Australia’s ‘green consumers’ are willing to pay a premium of up to 10 per cent for environmentally friendlier products, recent financial pressures have discounted this, according to the research review, which also identified cynicism among Australians. The promotion of green credentials by some companies is seen as merely a way to increase sales. 

The paper says: “Research indicates that many green products have failed because marketers’ focus on their products’ ‘greenness’ over the broader expectations of consumers. In other words, simply being green will not be enough of the product does not perform its required functions at a satisfactory level, or if the price is seen to be excessive – being green is part of the consideration set, but it is not the only consideration.”

After reviewing ‘green washing’, ‘green harvesting’ and ‘enviropreneurs,’ the paper provides marketers with a ‘how to’ guide featuring practices worth following and others to avoid.

The Australian Marketing Institute will follow a review of immediate responses to the paper with research to benchmark attitudes to sustainability among senior marketers and sustainability practices.

Institute members can access a copy of the paper by logging in to the site and going to the Member Area page.