Businessworld in cooperation with Pearl2 Sofitel Philippine Plaza, February 22, 2008 Marketing Leadership Willy Arcilla
Marketing is Not Just About . . . • Selling • Special Price-Off Coupons in K/A • Advertising • Publicity Stunts • Celebrity Endorsements • “New, Improved! . . . Packaging” • New Flavors or Colors • Building “Brand Image” • Asking for & Spending More A&P Budgets • Hyper ‘Bola’
Marketing Is Not Just a Subject, Department, Function or Discipline Marketing is a Way of Life – a Philosophy of Doing Business
“Marketing is very important; in fact, far too important to be left to Marketing people.”
Marketing F1 Pitstop Crew 7-12 seconds Marketing’s raison d’etre is to enhance the value proposition of a company’s brands in order to convince target consumers to prefer one’s brands over the competition, influence their attitude and drive their behavior.
Simple Yet Difficult “What’s in it for me?” “Why should I switch?”
Marketing Leadership • Marketing – What any Entity Must Do • Leadership – What any Entity Must Have • Marketing Leadership – Marketing-Driven, Consumer-Oriented, Customer-Focused • Leadership Marketing – Excellence in Quality of Products & Services; Innovations & Operations; Marketing Programs in Market • Market Leadership – The Ultimate Reward
Marketing Leadership • Do Your Homework • Invest in Research • Take it to the Next Level • Build/Reinforce Equity Based on Strong BPS • Reinvent Your Brand without Losing Essence • Do More with Less • Find Creative Solutions to Solving Problems • Take Calculated Risks & Learn from Mistakes • Prioritize Your Options • Expand Your Horizons • Build Your People to Build Your Brands • Integrate & Synthesize the Whole Business
Marketing LeadershipLeadership Marketing • Do Your Homework – Study. Read. Learn. Listen. To Consumers, Competitors, Customers, Company, Sales, R&D, Suppliers, Friends & Foes, Family & Consultants. • Be Market-Oriented. Consumer-Driven. Fact-Based. • Study the History of Your Industry, Company, Brand. • Do your SWOT. • Invest in Research – • If you think the price of EDUCATION is expensive, imagine the cost of IGNORANCE (because ultimately Consumer IS the Boss!) • I believe in Research but NOT in Researching EVERYTHING (Because Gutfeel/Judgment/Wisdom Improves Over Time)
Marketing LeadershipLeadership Marketing 3. Take it to the Next Level – • In All Aspects of the Marketing Mix (6 Hard P’s + 6 Soft P’s) • Every Year, Every Month, Every Week, Every Day • Live Olympic Spirit: Citius, Altius, Fortius (Faster, Higher, Stronger) • World Class Marketing is Defined in terms of Quality, Speed & Cost • Products/Services & Packaging Must Get Better, Pricing & Value Better, Advertising Effectiveness & Media Efficiency Better, Sales & Distribution Executional Excellence Better. • Success is Perishable. Who could have imagined that . . . • Toyota > General Motors • GMA7 > ABS-CBN2 • Philippine Star > Philippine Daily Inquirer > Manila Bulletin • Cebu Pacific > PAL (Domestic Market) • Simon Cowell – Tells the truth to challenge contestants • Andrew Carnegie, “Learn to Say NO to the Good, So You Can Say YES to the Best!” • Keifer Sutherland, “One of the ways the show keeps refreshing itself is by introducing new characters to replace the dead ones and allowing the remaining characters to grow.
Marketing LeadershipLeadership Marketing 4. Build or Reinforce Brand Equity w/ Powerful Marketing Programs and Excellent Communications Campaigns, Building Upon Strong Brand Positioning Statements which are Important, Specific & Unique to Consumers that are Anchored on Simple yet Powerful Insights • Intel Inside, Mastercard Priceless, Singapore Girl, Absolute Vodka • URC: C2 Campaign & Nova • Reinvent Your Brand – Constantly – Without Losing Your Essence • Good Examples – Apple, Adidas, McDonald’s, Levi’s Copper Collection • Safeguard – For Superior Skin-Germ Protection – the Rock of Gibraltar 6. Accept That You Will Have to Relentlessly “Do More with Less” • You Will Never Have Enough A&P (ex., Coca-Cola in China w/ US$100M) • Raise Productivity of A&P Budget • Effective Advertising (Demand it from the Creative Ad Agency) • Efficient Media (ex., Apple MacIntosh Launch Jan 24, 1984 Superbowl) • Restore Credibility in Effective Advertising, i.e. Advertising that Sells • Turn PR into a Competitive Edge • More Credible vs. Commercial Advertising, but Don’t Sensationalize like RP Media • Some Brands Have NO Advertising, ex. Starbucks, Google, Viagra. Body Shop • Forge Strategic Marketing Partnerships w/ Complementary Products/Brands
Marketing LeadershipLeadership Marketing 7. Learn to Think Creatively so You Can Offer Creative Solutions to a Variety of Business/Marketing Issues • Ex. “In Your Strength Lies Your Weakness” (Concorde Supersonic Jet) • Coke Story – 1985 – New Coke Blunder • Pepsi Story – Losing the Cola War was a Blessing 8. Prioritize your options, applying principles of economics (optimum allocation of scarce resources). You can’t afford to or physically do everything simultaneously. Pick your battles and be decisive. • Which One? Market (Regional) Industry Category Brand 4 Ps A vs. P, TVC Production vs. Media, Consumer vs. Trade Promo 9. Take Calculated Risks & Learn from Mistakes • Mr. John Gokongwei is Happy w/ 1 Hit out of 5 “Swings” • When in Doubt, Test with Consumers • Learn from Mistakes Committed by Others, e.g., Post-Mortems or Mortality/Morbidity Conferences of Physicians Whenever a Patient Dies in Their Care This Requires Humility & Maturity
Marketing LeadershipLeadership Marketing 10. Expand your Horizons. • Think Beyond your Industry to learn and “practice” your principles of Marketing because you are talking to the SAME consumer. Ex., FMCG Fashion, Retail, Real Estate, Banking, Pre-Need Plans, Media, Telecoms (Service or Units) Automobile, Appliances. • Go Beyond your Borders (Travel to more advanced markets and spend time observing consumers). • Ex., Learn from similar but more advanced countries, e.g., Malaysia ($5000 pc inc) vs. the Philippines ($1000 pc inc) • Go to Shanghai and see the world’s newest product and package innovations as the whole world competes there. • Benchmark against the best in the world.
Marketing LeadershipLeadership Marketing 11. Bring Out The Best in Your People to Enable Them to Bring Out the Best in Your Brands. 12. After Mastering your Profession in Marketing, Learn to Integrate & Synthesize All the Components of the Business, e.g., Sales & Distribution, R&D and Manufacturing, Finance & Accounting, Purchasing & Logistics. • Be a Salesman, a Promotion Girl, a Merchandiser. • Go on Sales Training to Gain Experience & Respect. • Understand Basics of Manufacturing & Engineering. • Learn Purchasing, Warehousing, Logistics. • Review your P&L, Balance Sheet, Cashflow, DCF.
12 P’s of Marketing6 P’s of Marketing Mix • 4 P’s of Marketing – by Philip Kotler • Product • Price • Promotions • Place • 2 P’s of Marketing • Packaging • Publicity
6 P’s of the Marketing Man Problem-Solving Skiills Professionalism Passion Persuasive Positive Outlook & Perseverance Participative & People-Oriented
12 P’s of Marketing6 P’s of Marketing Man • 6 P’s of Marketing Man • Professionalism • Passion • Perseverance and Positive Outlook • Problem-Solving • Persuasiveness • Participative and People-Oriented • Partnering
3 Types of Entrepreneurs • Classic Entrepreneur • Social Entrepreneur • Corporate Entrepreneur • Intrapreneur
Role of the Corporate Entrepreneur • Lead and motivate employees to achieve business goals of the company and deliver returns for Classic Entrepreneur • Bring out the best in your people to enable them to bring out the best in the company’s brands and businesses. • Foster a sense of ownership w/ employees – precisely what entrepreneurs look for.
“How Do I Become an Entrepreneur?” • Teach a nation to fish; you feed a nation for life. [But we need more than sustenance fishermen]. • Be bold. Be brave. Mighty forces will come your way. The greatest risk is not to take any at all. • Gain experience. • “Get employed. Learn everything. Then leave.” – John G • Entrepreneurship is innate in the Filipino • Sari-Sari Stores, Tricycles, Jeepney, FX Tamaraw • Don’t follow the crowd – “bandwagon effect” – gaya2 5. We need to shift to High Gear. Take Pinoy Entrepreneurship to a Whole New Altitude.
“How Do I Become an Entrepreneur?” • Guerilla Marketer – 3 New Secrets – InvENT. ImprovemENT. DifferENT. • Find your TalENT. 8. Think positive. • “WWII was the great equalizer.” -- JG • Look at globalization positively. • Yes, foreign competitors are coming in. • But your market is bigger RP ASEAN Asia 9. Consider franchising – 90% success rate. 10.Two kinds of people – Swindler & Sucker.
Filipino Brands Expanding Overseas #1 Filipino Brand Overseas Don’t Overlook Halal Market Estimated at US$600B!
1. Appliances 2. Electronics 3. Digital Cameras 4. Cellphones 5. MP3s 6. Computers 7. Printers 8. Bicycles 9. Motorcycles 10. Cars But When Will We See Higher-Value Filipino Brands Beyond Processed Food & Drinks, Fastfood & Fashion Apparel?
Filipino Inventors Eduardo San Juan - Filipino Inventor: Mechanical engineer, San Juan worked on the team that invented the Lunar Rover or Moon Buggy. He is considered the primary designer. In 1971, the Rover was used in the Apollo 12 landing to explore the Moon. Daniel Dingel - Water-Powered Car or Water-Powered Hoax?: Filipino inventor, Daniel Dingel designs cars that run on water. The Philippine Daily Inquirer reported that Daniel Dingel built a water-fueled automobile engine as early as 1969. Dingel has no patents and many members of the science community feel that his water-powered car is a hoax. However, Daniel Dingel has demonstrated his car without any technical papers or explanation as to how it works. And if it does work, it would be a fantastic invention. Daniel Dingel - Claims: Daniel Dingel claims his engine has a chamber that breaks apart water molecules to produce combustible hydrogen. Electricity from a 12-volt car battery is used to split the water molecules into hydrogen and oxygen components, with the hydrogen then used to power the engine.
SplashManufacturing Filipinos Have the Entrepreneurial Spirit; We Must Take it Beyond the “20th Century” “Teach a nation to fish and you feed a nation for a lifetime.”
Raul Concepcion Mikaela Fudolig Dado Banatao Dennis Mendiola 16 years old UP BS Physics 2007 Summa Cum Laude Norberto Quisumbing “We have upon us a knowledge-based economy … and nothing could be of greater strategic value to a nation than the ability to generatenew knowledge & technologies if we don’t want to be the modern-day ‘hewers-of-wood’ and ‘bearers-of-water’ of a 21st century global economy.” Dr. Rey Vea President Mapua Institute of Technology
Salamat at Mabuhay! Willy E. Arcilla President, Business Mentors, Inc. Regional Director, ZMG Ward Howell, Inc. firstname.lastname@example.org Tel: 816-2466 0917-8804296