TEAMFLY Team-Fly ® Enterprise Marketing Management Enterprise Marketing Management The New Science of Marketing Dave Sutton and Tom Klein John Wiley & Sons, Inc. Copyright © 2003 by Dave Sutton and Tom Klein. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. 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For general information on our other products and services please contact our Customer Care Department within the U.S. at (800) 762-2974, outside the United States at (317) 572-3993, or fax (317) 572-4002. Wiley also publishes its books in a variety of electronic formats. Some content that appears in print may not be available in electronic books. For more information about Wiley products, visit our web site at www.Wiley.com. ISBN 0-471-26772-4 Printed in the United States of America 10987654321 www.copyright.com. Requests to the Publisher for permission should be For Whitney, Wheeler, and Maggie—D.S. For my scientist grandfather, Admiral John T. Hayward, and for my salesman father, George.—T.K. CONTENTS Foreword Sergio Zyman xi Introduction: Enterprise Marketing Management xiii PART I RUN BRANDS AS BUSINESSES, NOT AS CAMPAIGNS 1 1. Marketing Is Not an Art—It Is a Science 3 2. Architect Your Brand 16 3. Plug Marketing Into the Enterprise 43 PART II MANAGE YOUR BRAND, NOT YOUR CUSTOMER 61 4. Take Ownership of the Brand Experience 63 5. Plug Marketing Into CRM 95 6. Cross-Market to Cross-Sell 114 7. Use New Media for Brand Activation 125 PART III REINVENT YOUR BUSINESS, NOT JUST COMMUNICATIONS 147 8. Restructure Based on Brand Experience 149 9. Measure Investment Performance 171 10. Optimize Marketing Investments to Drive Profitable Sales 191 Conclusion: A New Day for Marketing 211 Index 219 vii ACKNOWLEDGMENTS T his book is the result of relentless hard work on the part of many talented people. While conducting research for the book and developing content, we had the pleasure of meet- ing and working with many marketers and hearing their stories— many of which became the foundations for case studies in this book: Lisa Gregg at American Express, Tim Riesterer at Ventaso, and David Perry at Aspen Skiing Company. We would like to thank everyone at Zyman Marketing Group for their dedication to bringing Enterprise Marketing Management to life with our clients across the globe. We would like to especially thank those colleagues that dedicated their personal time, of which there’s never enough, to the book. They’ve added content, been there to think through new ideas, advanced their own theories, and helped us to bring it all together. Thanks to Ric Alvarez, Art Ash, David Cross, Leanne Fesenmeyer, Linda Michaels, Michael Sinclair, Dave Singleton, and Jon Stewart for their energy, ideas, and general passion for great marketing. And, thanks to Denise Cowden and Veda Sammy for their creativity and patience in helping to develop and organize both the written and graphical content. Even though marketing is a science, they’ve helped us apply art where it’s neces- sary to help us communicate more clearly. And finally, even books ix [...]... every person who interacts on the brand’s behalf with any customer From the smallest local business to sprawling global enterprises, it’s the end of the art of marketing and the beginning of the new science of marketing Gone are the esoteric theories of marketing as a creatively driven endeavor Now is the time for an analytical method that focuses on selling, plain and simple Marketing isn’t INTRODUCTION... to marketing It’s either because they realize that they need to in order to grow their business or because they are forced to do so by their customers or consumers who are not buying as much of their products as they used to One of the most powerful distinctions that I revealed in that book was the fact that marketing is not an art—it is a science Of course, there are artistic elements in some of the. .. leaders at some of the largest companies in the world understand my principles, develop a strategy, and get into action in the market And, you know? It works xi xii FOREWORD We learn with every client, with every project, and we pass on our knowledge to our new clients Enterprise Marketing Management: The New Science of Marketing, which has been written by two of the senior members of Zyman Marketing Group,... consist of fawning or mindless meddling in the creative enterprise du jour First and foremost, a marketer is a businessperson It’s indeed the responsibility of the marketer to bring a healthy portion of intellectual and process discipline to these investments in 3 4 ENTERPRISE MARKETING MANAGEMENT what are often creative exercises It’s this discipline that is at the heart of enterprise marketing management. .. management (EMM) and the new science of marketing To begin, a quick review of some of the terminology of science, starting with the dictionary definition: TE AM FL Y sciиence n 1 The observation, identification, description, experimental investigation, and theoretical explanation of phenomena a Such activities restricted to a class of natural phenomena b Such activities applied to an object of inquiry or... logical way has a new name: enterprise marketing management INTRODUCTION: ENTERPRISE MARKETING MANAGEMENT T housands of books have been written to try to explain how to go about the business of marketing Most of them describe in a very basic way how to use tools like advertising or promotions or trade shows to drive your business This isn’t one of those books What has been left out of the dialogue is... observations 5 Modify the theory in the light of your results 6 Return to step 3, and continue as needed 6 ENTERPRISE MARKETING MANAGEMENT Easy enough if you’re testing, say, the boiling point of water But how does this relate to marketing? Consider the opportunities that open up when applying the scientific method to a tangible marketing possibility: 1 Observe some aspect of the universe—that is,... reams of experience to succeed All that’s required is a simple focus on the best way to get your goods in the hands of your customers—and their money in yours Think of it this way Marketers often fail in three key categories: those with (1) the inability to use their knowledge of their customers to position their brands; (2) the inability to put their brands to work beyond traditional media; and (3) the. .. lot of great examples out there The good news: You’ve still got time to change, embrace the new science of marketing, and assume a leadership position in the markets where you compete (You may become a case for the next edition!) xvi INTRODUCTION The www.MarketingScientists.com web site can serve as a resource for you to continue your journey toward putting enterprise marketing management in place once... this book On the site you will find the following: ~ Contact information (access to marketing scientists) ~ New presentations/speeches (the science is always evolving) ~ Marketers’ scientific methods ~ Newsletter sign-up Each chapter includes at least one case study of the theories introduced The companies outlined herein represent all sorts of industries, large and small, new and old And they’re not . interacts on the brand’s behalf with any customer. From the smallest local business to sprawling global enter- prises, it’s the end of the art of marketing and the beginning of the new science of marketing. . on Brand Experience 14 9 9. Measure Investment Performance 17 1 10 . Optimize Marketing Investments to Drive Profitable Sales 19 1 Conclusion: A New Day for Marketing 211 Index 219 vii ACKNOWLEDGMENTS T his. Team-Fly ® Enterprise Marketing Management Enterprise Marketing Management The New Science of Marketing Dave Sutton and Tom Klein John Wiley & Sons,