Download the glocal transformation: developing marketing assets

THE GLOCAL TRANSFORMATION:
DEVELOPING MARKETING ASSETS FOR THE NEW AGE
RESTRUCTURING THE MARKETING FUNCTION TO DRIVE THE 5 MARKETING ESSENTIALS IN TODAY’S
GLOBAL MARKETPLACE – INNOVATION, CONSISTENCY, COMPLIANCE, ANALYTICS, AND COST-EFFECTIVENESS
BACKGROUND
Digitization and globalization
continue to transform nearly every
years included an increased focus
on multichannel marketing
(MCM) and use of digital
industry, including the
technology and analytics.
pharmaceutical industry. However,
Simultaneously, cost reduction
in case of the pharmaceutical
remained the top strategic
industry, a rapidly changing
priority for most of the
environment is further coupled
executives.1
“It’s tough when
markets change and
people within your
company don’t”
– Harvard Business Review
with the challenges of stringent
regulations, expiring patents, less
In view of this structural shift in
penetrated markets, and
marketing channels and
inadequate access to physicians.
collaterals and to be in line with
Therefore, the need of the hour is a
the overall objectives, it is
complete overhaul of the
important to examine if the
traditional ways of functioning for
current model of developing
the industry.
This paper focuses on the
marketing function, with particular
emphasis on the development,
management, and analysis of
marketing assets in the current
dynamic environment.
A STRUCTURAL SHIFT
FROM THE TRADITIONAL
MARKETING METHODS
Pharmaceutical companies today
have to essentially embrace
technology and be in the digital
space in order to stay competitive.
A recent industry survey consisting
of senior sales and marketing
executives of major
pharmaceutical companies in the
United States revealed that their
strategic priorities for the coming
marketing assets is still relevant.
The traditional approach requires
marketers to purchase their own
digital assets and establish a
direct relationship with the print
house. A recent study has shown
that 7 of 10 local marketers
develop their own print
collaterals to be on a par with the
local markets.2
THE REASONS THAT MAY BE
ACCOUNTABLE INCLUDE
THE FOLLOWING:
• Varying levels of expertise
and experience among various
agencies working on various
types of deliverables, especially
with the introduction of newer
digital formats, platforms, and
technologies
SUCH A
DECENTRALIZED
APPROACH TO
MARKETING IN
TODAY’S SHRINKING
WORLD CAN
LEAD TO SERIOUS
LOSS OF
COMPETITIVENESS
ARISING FROM
PRODUCTION
INEFFICIENCIES,
COST PILEUPS, AND
QUALITY
INCONSISTENCIES
1. Accenture. Insight pharma analytics digital communications survey.
2. Gleanstar. How top performers drive relevance and revenue in distributed marketing environments.
1
• Lack of standardized processes
imperative that the engagement
and systems across agencies
models with Agencies of Record
leading to inconsistent quality
(AoRs) evolve and pertinent
and reduced reusability of
technology is adopted to achieve
certain marketing assets
the next level of marketing
excellence.
• Repurchase of asset
components such as image,
font, etc, by different agencies
or their inability to reuse such
THE 5 MARKETING
ESSENTIALS IN TODAY’S
ENVIRONMENT
components because of lack of
The marketing framework
understanding or clarity on the
described in this paper has been
global rights of usage
designed around the 5 marketing
essentials in today’s environment.
• Repeated/redundant creation
These marketing essentials have
of similar/same marketing
been identified based on the
material from the scratch, in
current trends seen across some
spite of the same material being
of the top, forward-looking
available in a different market or
pharmaceutical companies.
region
“To be INNOVATIVE in this intense
• Inability to share best practices
competition, while ensuring
and learning from the past
CONSISTENCY and COMPLIANCE
successes/failures across the
across deliverables, use relevant
brand teams and agencies
metrics to ANALYZE your
performance so as to repeat what
In order to deal with the current
went right and yet do all this in a
challenging and dynamic
COST-EFFECTIVE manner.”
marketing landscape, it is
2
How can organizations reorganize
simplification, productivity
their marketing model to derive
improvement, volume
maximum benefit from the
aggregation, and knowledge
5 marketing essentials?
sharing by employing this
approach.
To achieve this, organizations
require a complete relook at the
Digital production services is a
4 fundamental areas, namely
relevant domain for the first-level
development, administration,
implementation of this concept
organization, and analytics,
(manage and deliver the
besides an evaluation of their
marketing assets from the creative
needs for a change in strategy and
stage) because of the following
integration with technology.
reasons:
This sea of change can be
• Minimal deviation from the
traversed using the SWIM
current ways of working
framework, which outlines the
for marketers, allowing them to
transformation pillars for
focus on core essential areas
introducing change in each of the
4 fundamental areas.
DEVELOPMENT –
SPECIALIZATION AND
CONSOLIDATION
Considering the unprecedented
rate and emergence of new digital
channels, it is imperative to create
Centers of Excellence (COEs) for
different stages in the
development process to achieve
• Ability to explore design and
interactive features that were
previously limited, possibly
because of inadequate existing
capabilities
• Access to technology platforms
and productivity tools
• High scope for service efficiency
and reusability
• Standardization and
perfect execution. Organizations
internalization of brand-level
can largely benefit in the areas of
knowledge
service standardization, process
3
This model can then evolve to
through the tool, providing more
move up the value chain based on
time for high-value tasks. In
the key parameters such as
addition to driving operational
product life cycle, reusability, and
efficiencies, it provides various
service maturity.
other benefits such as:
• Improved and consistent quality
This approach helps organizations
of assets through the
build a sustainable road map
standardized work methods and
toward achieving operational
greater accountability by
excellence while ensuring
creating audit trails
consolidation of repeatable
• Traceability of work as it moves
services and delivering benefits of
through various stages of
greater than 25% than the
development
existing and traditional models.
• Execution and real-time data of
ADMINISTRATION –
WORKFLOW
MANAGEMENT
various suppliers, which help in
performance optimization
• Improved oversight as service
The next step toward the
scales
development of assets in a global
workplace environment is to have
ORGANIZATION –
INFORMATION REUSE
an integrated workflow
management tool that allows for
Currently, global pharma
easy and effective collaboration
companies have huge
among various stakeholders with
marketing/digital assets totaling
clear and defined rules, roles, and
to more than 15 terabytes with a
responsibilities. The routine tasks
stockpile of duplicates, redundant
such as work allocation, approvals,
and obsolete data without any
and reports should be automated
meta-tagging, and inconsistent
Reusability
High
Maturity
Decline
Brand Strategy
Brand Strategy
Brand Strategy
Brand Strategy
Content and
Creative Storyboard
Content and
Creative Storyboard
Content and
Creative Storyboard
Content and
Creative Storyboard
Creative
Development
Creative
Development
Creative
Development
Creative
Development
Production
and Publishing
Production
and Publishing
Production
and Publishing
Production
and Publishing
Creative and Digital Production
4
Optimized AoR
Low
Growth
Service
Maturity
Introduction
High
Low
Product Life Cycle
taxonomy; therefore, companies
Integrating the DAM system with
cannot use, reuse, or upscale
the workflow management tool
digital assets across channels or
and analytics is highly
other brands, resulting in loss of
recommended to provide the
time because of time spent in
marketer with a holistic view of
re-creation and inadequate return
any marketing campaign and
on investment.
collateral, allowing a more
informed decision-making
In order to address these
challenges, some pharmaceutical
organizations have already
deployed a global digital asset
management (DAM) system.
However, successful
implementation of a DAM system
requires more than just ensuring
proper storage of all the digital
assets across the life cycle of the
marketing collateral. Library and
information services play an
essential role, especially in the
initial phase of employing such a
system. These services ensure that
the marketers can easily find,
outcome.
EVALUATION –
MEASUREMENT AND
ACTION
With digitization presenting an
opportunity to reach a greater
number of customers, the number
of marketing campaigns that run
globally has increased. In the long
run, it may not be feasible to
adopt every channel. Hence
choosing the best strategy,
campaign, and channel for brands
is crucial.
search, or retrieve the collaterals
However, the performance and
most relevant to them. It further
impact of each campaign is
helps in early adoption of the
measured differently by different
concept.
groups. If one labels it as
Global Innovation Customer
Engagement Competitiveness
Integration
Extended
Enterprise
120%
15%
CoE
100%
25% Additional
Excellence
Over
Traditional CoEs
10%
80%
Skill Set
Augmentation
10%
15%
60%
40%
20%
20%
30%
Staff
Augmentation
0%
Quality
Direct Cost
Savings Improvement
Shared
Learning
Economies
of Scale
Shared
Vision
Risk and
Ownership
TOTAL
5
“successful,” the other perceives it
GETTING STARTED
only as “moderately successful.”
In order to implement the new
When standard formulae and
model for the development of
metrics are used across marketing
marketing assets, we have
campaigns, it is easier to compare,
observed organizations taking
evaluate, and benchmark the
primarily 2 approaches:
results obtained. This, in turn,
1. Mandate Driven: This approach
allows for creation of more
involves a significant amount of
appropriate campaigns and
management sponsorship and
improves the chances of choosing
communication and a
the right agencies each subsequent
centralized project
time. The incremental benefit
management office
derived each year can compound
2. Investment Driven: In this
into huge gains in marketing
approach, the early adopters
success over the years.
are identified and the model is
To successfully derive benefits in a
built on their successes and
practical setting, the analytics need
subsequently scaled up
to be supported by robust
technological tools. Technology can
Choosing a relevant and suitable
be used to support analytics in
approach can be based on
multiple areas such as automated
multiple factors such as
report generation, integration with
organizational culture,
CRM systems, and determination of
implementation time, and cost
channel effectiveness.
constraints.
SUMMARY
The SWIM framework and its influence on the 5 marketing essentials are summarized in the table below:
Development
Cost
advantage
Administration
Organization
Evaluation
6
S
W
Specialization and
Consolidation
Workflow
Management
Innovation
Consistency
Compliance
+++
+++
++
+++
++
++
++
+++
+
+++
+++
++
I
Information Reuse
++
M
Measurement and
Action
++
Analytics
Cost-effectiveness
+++
CASE STUDY
Objective: The client, one of the
top 5 global pharmaceutical
companies, had the mandate to
reduce the cost base and increase
productivity.
Methodology: An audit identified
a considerable amount of wastage
because of duplication in efforts
toward creation of marketing
assets. For example, MoA was
created separately for the United
States, China, Japan, and
Germany, and an e-learning
module for a product launch was
created by each affiliate.
The AoRs were reported to charge
high price for simple tasks such as
updating web pages, converting
one digital format to another, and
conducting translations.
starting with pilots for
low-complexity assets, and
gradually scaled up to include
multiple geographical locations
and high-complexity assets.
All the suppliers were measured
on the following standard key
parameters twice a year:
Innovation
• Originality, novelty, and viability
of suggestions
Partnering
• Effective communication
• Collaboration with other
suppliers
Performance
• Timeliness
• Quality of cost estimates
• Quality of finished jobs
Solution: A team consisting of
representatives from marketing,
Reliability
information services, and
• Meeting deadlines
procurement divisions was set up
• Quality/accuracy of work
across the organization and
• Concern for the standards
geographies. The team identified
• Administrative quality
the critical business need of
creating a centralized library of
Impact: This exercise helped the
assets and eventually setting up a
client reduce the cost base by
DAM system. The project was
50% of the original value.
executed in multiple phases,
7
NOTES
NOTES
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