Transformational Marketing

1
Transformational Marketing

• Automotive News World Congress
• Jan Thompson,
• VP Marketing
• Nissan North America
• January 18th, 2006

2
Radical times demand radical changes in marketing

• Radical transformation in technology is taking
  place and will only continue to accelerate
• The Law of Accelerating Returns

3
Radical times demand radical changes in marketing

• The traditional hierarchical marketing model is
  
• no longer as effective
• Demographic Shifts
• Technology Advances
• The Democratization of Content and Media Meshing
• Impact on Costs

4
Radical times demand radical changes in marketing

• Demographic and Cultural Changes

Millennials or Generation Y
Generation X
Baby Boomers
5
Radical times demand radical changes in marketing

• Technology Advances
• The Proliferation of Media Channels

Source Marketing Leadership Council, 2005
6
Radical times demand radical changes in marketing

• The Long Tail - as it applies to the automotive
  industry
• More nameplates with lower volumes than ever
  before
• All products have an opportunity to capture
  consumer awareness due to the number of media
  channels available

The Long Tail concept from Wired Magazine, 2004
7
Radical times demand radical changes in marketing

• The Democratization of Content and Media Meshing

Click on banner ad to check out Nissan URGE
microsite, sign up for next podcast
Chatting on Xbox Live about the iPod connector in
the URGE
Playing Project Gotham Racing 3 on Xbox with
Nissan URGE concept car
Edmunds.com message boards to see what other
people are saying about the Nissan URGE
A little more interested in the model, off to
check out any Auto show pictures on My Space blogs
Download some photos from the show as wallpaper
onto a Sidekick II phone/internet/email/instant
message/camera device
Downloads a cool Podcast with a review from a guy
in his My Space group that went to the Auto show.
8
Radical times demand radical changes in marketing

• Impact on Costs
• Audience fragmentation
• 1960 6 channels on average
• 2005 100 channels on average
• Prime time CPMs have increased dramatically
• 1994 7.64 CPM
• 2004 19.85 CPM
• Network TV viewership has declined almost 50
  over the last 30 years
• Source Forrester, Whats Next for TV
  Advertising December 2004 Advertising Age
  The Chaos
• Scenario April 2005

9
Radical times demand radical changes in marketing

• What does this mean for the Automotive Industry?
• The Automotive industry spends more
  than any other category..

17.0 Billion
17
68
1378
322
17.0 Million
14.5 Million
191
700 Million
2005
1985
2005
1985
2005
1985
Number of Models
Industry Sales
Advertising Spend
1985, Wards Automotive Yearbook (1985), 2005,
Automotive News Data Bank (2005)
10
Comparison of Marketing Models
Traditional Model
Transformed Model
Planning Objective gt Brand
Transformation gt Channel
Integration gt New Media metrics
Planning Objective Communications goals based on
reach/frequency
Test
Measure
Refine
Targeting Method Mass mediums
focused on large, undefined segments
Targeting Method gt Detailed consumer insights gt
Embrace media meshing gt Enable peer networking
Test
Measure
Refine
Measurement Ad tracking
metrics like awareness, brand opinion, TRP and CPM
Actionable Business Intelligence gt Full funnel
focus gt Data Modeling gt KPIs, ROI CLTV
11
Radical times demand radical changes in marketing

• Search
• One of the biggest drivers of transformational
  marketing
• It is evolving quickly
• Audio search
• Video search
• Geographic search
• User generated content search

22 Billion
8 Billion
2005
2010
The Search Transformation

• ClickZ, 11/2005

12
Radical times demand radical changes in marketing

• Search is a significant part of our media mix
• Nissan Summer Sales event paid search results
• 34 of all web traffic to NissanUSA.com
• 31 of interactive sales tracked to search
  activities
• ROMI of 31.82 returned for every dollar spent

• ClickZ, 11/2005

13
The Transformed Marketing Company

• To achieve this transformative model
  internal and external factors must
  be addressed

14
The Transformed Marketing Company

• Managing for Success
• Re-examine and re-organize internal organization

15
The Transformed Marketing Company

• Managing for Success - Internal Organization
• Subject Matter Experts
• Search
• Data analysis and modeling
• Business Intelligence

• New OEM communication strategies must be aligned
  with regional and dealer strategies

16
The Transformed Marketing Company

• Managing for Success - External Organization
• Re-examine and re-organize external organization

Traditional Model
Transformational Model
Agency
Client
Lead Agency
Client
Agency
Agency
Agency
Agency
Agency
Agency
17
The Transformed Marketing Company

• Seven keys to transforming your marketing
• Know what you stand for and relentlessly execute
  against it
• Learn fast and adapt quickly
• Create an action oriented culture
• Structure internal and external organizations to
  align with the new communication paradigm
• Start with the Idea, not the buy
• Aggressively innovate its not how much you
  spend, but how you engage your target
• Embrace accountability