AUGUST 2006

The online version of the Marketing Update August issue can be accessed at:http://www.ami.org.au/amimu/0608August/0608_summary.htm

FINAL REMINDER: Marketing Week 2006,22-25 August, Adelaide.

IN THIS ISSUENATIONAL PRESIDENTThe toughest job for marketers?So you think your marketing job is tough? Roger James considers the challenges faced bymarketers in the motor industry. Go to article

NATIONAL CONFERENCETim Ambler’s marketing masterclass a special extraOne of the world’s leading marketing thinkers, Britain’s Tim Ambler, will present two keynotesaddresses plus a marketing masterclass at the AMI’s October conference in Melbourne.Go to article

VALUE OF MEMBERSHIPWeb hosting and advertising added to member benefitsWebCentral and Professional Marketing magazine have added their special offers to the newrange of benefits available to AMI members. Go to article

MARKETING AND THE LAWRing, ring … be careful who you callNew restrictions on the telemarketing industry draw closer as the Government introduces its DoNot Call Register legislation into Parliament. Philippa Hore and Jacqueline Scarlett report.Go to article

CUTTING-EDGE TOOLSIncentive planning system wins Marketing Science prizeChair of judges Professor John Roberts reports on the winner of the 2006 INFORMS Society forMarketing Science Practice Prize, which is supported by the AMI. Go to article

PROFESSIONAL SERVICESIntegrate your marketers to best use their skillsMarketers can sometimes feel unloved in professional services firms. Louise Robinson andDr Daryll Cahill say firms must understand how marketers fit into their business. Go to article

BOOK REVIEWS — Magic Numbers and Asia’s Star Brands

STATE NEWS — All the latest news from each state is on the AMI website

IN BRIEF — Hyundai shifting A-League focus to fans Go to article

EVENTS — All the latest event information is on the AMI website

02 AUGUST2006National P R E S I D E N T

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By Roger James FAMI CPMnational presidentAustralian Marketing Institute

Email: roger.james@ami.org.au

So you think your marketing job is tough? Consider thechallenges faced by marketers in the motor industry.

Are there too many competitors in your market? InAustralia today there are 44 different brands of passenger caron sale. Indeed, there are more than 250 different models, notincluding variants. This count treats the BMW 3 Series, forexample, as one model, when in fact there are 11 different carson sale in Australia that carry the 3 Series badge. Includevariants and you have a total of many hundreds.

The range of vehicles in the car market means that realcompetitors in each segment are more limited. The compactHyundai Getz is not likely to lose any sales to the luxuryHolden Caprice. Nonetheless, as Subaru chairman and our SirCharles McGrath Award winner Trevor Amery observes,Australia is arguably the most competitive car market in theworld.

Is price competition a problem for you? Again, thepassenger car market is legendary for vicious price wars.Model run-outs often lead to margins disappearing asmanufacturers try to get dealers to clear stock of the currentmodel before the new one is released, as has been happeningrecently with Holden Commodore.

Another important aspect of pricing in some segments ofthe car market is that the majority of vehicles are sold ‘inbulk’, at prices the average retail punter would never see. Thefleet market has accounted for up to 60% of sales ofconventional ‘big six’ cars in the past and distorts the retailpricing picture.

Is launching a new product a difficult and expensive taskin your market? Designing a new model motor vehicle startsup to four years before launch and requires forwardcommitment of many millions of dollars. This is possibly thetoughest aspect of the car market, since it requires productplanners and marketers to predict the state of the market yearsahead.

Do external market conditions make your marketing moredifficult? Consider the position faced by marketers of large

The toughest job for marketers?

cars at the moment. Since fuel price rises have taken hold,sales of large cars have plummeted, falling more than 20% inthe first six months of this year compared with 2005 sales.

The stand-out example of tough marketing in this segmentis the Mitsubishi 380, successor to the Magna. The Magna wasalways a well-regarded car, but perhaps because it was front-wheel drive it never seemed to break through the conservativeconsciousness of the conventional six-cylinder, rear-wheel-drive buyer.

The 380 was launched last year in what many industrypundits regarded as the last roll of the dice for MitsubishiAustralia. The car was extremely well reviewed, with theRACV and its sister organisations judging it to be Australia’sbest large car.

Then the unstable situation in the Middle East, combinedwith continuing growth in world demand for oil, leads to fuelprices rising 50% or more in a year and the whole segment inwhich the 380 competes more or less collapses. You would behard-pressed to find a tougher marketing situation, but I wouldbe pleased to hear from you if you can think of examples thatcompare with or exceed this one (roger.james@ami.org.au).

As a footnote, it is not all bad news in the motor industry.While the big sixes suffer, sales in the light segment, inhabitedby cars such as Toyota Yaris, Hyundai Getz and HoldenBarina, have risen by more than 30% in the first six months ofthis year. ●

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03AUGUST2006 National C O N F E R E N C E

The 2006 AMI National Conference, to be held in Melbournefrom 11-13 October, will include an exciting additional event– a workshop for senior marketing practitioners run by one ofthe world’s leading marketing thinkers, Britain’s Tim Ambler.

With the challenging title of ‘You don’t get rich bymaking money’, this workshop will address issues that arecentral to finding and harvesting cash flow – marketing itself.

As Ambler says: “Money is the result of success, not thecause of it. Marketers today are starting to give far too muchtime to financing, relative to doing marketing. A preoccupationwith cash, e.g. budgets, damages a business as much asneglecting marketing.”

He distinguishes start-up or small businesses that don’tsee themselves as doing formal marketing from largecompanies that spend so much time on the formalities theydon’t do any real marketing either.

The workshop will consider some of the key issues interms of dynamic marketing capabilities, flowing from thework of Neil Morgan of the Kelley School of Business atIndiana University, United States.

It will also draw on Tim Ambler’s own work in helping tounderstand and use a company’s marketing capabilities. Whilehe acknowledges the importance of metrics for evaluating andimproving marketing in the future, there is a need to putappropriate emphasis on performance. As he succinctly puts it:“Adding up runs is not as important as making them in thefirst place.”

The workshop will be held in Melbourne on Friday 13October at the Sofitel Hotel. Registration can be made withconference registration or independently.

Featured speakers at the conferenceTim Ambler, who is a senior fellow at the London

Business School, will also speak twice as a keynote speaker atthe AMI National Conference. His day one address will be:‘Marketing Finance: Can Marketing Performance be MeasuredFinancially?’

His day two address will dip into controversy: ‘Obesityand Advertising: Does Advertising Influence ChildhoodObesity?’

Other high-profile speakers — all successful marketersand business people — include:

Tim Ambler’s marketing masterclass a special extra

●●●●● Trevor Amery, the chairman of Subaru Australia and winnerof the AMI’s 2005 Sir Charles McGrath Award for lifetimeachievement in marketing.●●●●● John O’Neill AO, chief executive of the Football FederationAustralia, on ‘Football in Australia: What Lies Ahead?’●●●●● Harold Mitchell AO, chairman of Mitchell & Partners, on‘The Future of Media Buying in Australia’.

Full program and registration details for the conferencecan be found on the conference website athttp://www.ami.org.au/2006NC/index.htm

Inquiries can be made to national events managerRoxanne Ruscoe on 1300 737 445 or emailroxanne.ruscoe@ami.org.au

For the full national conference program, go to the conference website

Tim Ambler Trevor Amery

John O’Neill Harold Mitchell

FEATURED SPEAKERS

04 AUGUST2006Value of M E M B E R S H I P

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Special offers in web hosting, managed services andadvertising have been added to the new range of benefitsavailable to AMI members.

WebCentral, Australia’s largest web and applicationhosting company, is offering a 10% discount for shared webhosting, online business tools and business email services.Members can also access a free, 30-day trial of the PromotionsManager email marketing tool, plus there is a further specialoffer on Promotions Manager for members who sign up forthis tool.

Read more details about WebCentral’s exciting new webhosting and managed services offers on the next page or go toWebCentral’s AMI benefits page on the AMI website byclicking here.

B&T’s Professional Marketing magazine is the flagshiptrade title for the marketing industry and is the officialmagazine of the Australian Marketing Institute. ProfessionalMarketing and the AMI are offering members the opportunityto advertise in this magazine at substantially discounted rates— a 30% discount off the standard casual rates for displayadvertising space.

Read more details about B&T’s Professional Marketingexciting new offer on the next page or go to ProfessionalMarketing’s AMI benefits page on the AMI website byclicking here.

The AMI’s Marketing Manager, Anthony Barac-Dunn,said the additional benefits would be a useful addition to thetoolkit of the modern marketing professional. “The AMI isstriving to increase access to more benefits that will enhancethe day-to-day business activities of our members,” he said.

More new benefitsWeb hosting, managed services and publication

advertising join an array of new member benefits announcedby the Institute in April. These are:●●●●● Professional indemnity insurance: Members have access tocompetitively discounted rates, and Certified PractisingMarketer (CPM) members receive an additional discount.● Accor’s Advantage Plus program: AMI members areoffered an opportunity to join this program, which provides awide selection of benefits including accommodation and

Web hosting and advertising added to new member benefits

dining discounts at more than 200 hotels across Australia andthe Asia-Pacific.● Hertz Affinity Car Rental program: Special benefits oncar rental, access to special offers and fee waived membershipto the Hertz #1 Club Gold, which provides a fast, easy way tocar rental within Australia and around the world.● Qantas Club Lounge membership at corporate rates:Enjoy access to the services and facilities of more than 250Qantas Club and partner lounges around the world (subject toaccess conditions).● Access to the Aquent Salary Monitor Report: The AMIpartnered with Aquent to conduct this year’s survey of themarketing, creative, advertising, media, public relations andbusiness support sectors across Australia.● Marketing oriented dotpoint research reports: Thisservice, called dotpoint, provides research on a topic ofchoice, presented in a easy-to-use dot-point format andavailable at a discounted rate.● IBISWorld research reports: Provides members withreports on Australia’s 500 industries, top 2000 companies, andhundreds of business indicators at a discounted rate, plus freeaccess to industry and company snapshots, special offers and amonthly online bulletin.

More details about the new benefits can be read on thenext page or by going to the AMI website benefits page byclicking here.

For more information regarding the new membershipbenefits please contact AMI Membership Services on 1800240 264 or email benefits@ami.org.au

U P D AT E A U G U S T 2 0 0 6

A U S T R A L I A N M A R K E T I N G I N S T I T U T E

2 0 0 6 M E M B E R S H I P B E N E F I T S

P R O F E S S I O N A L I N D E M N I T Y I N S U R A N C E

Practising as a marketing professional in today’s business world can be both exhilarating, and at the same time volatile…with exposure to expensive, time-consuming litigation a real threat. The AMI has negotiated a professional indemnity insurance facility, through Countrywide Tolstrup* which is exclusive to all members and provides: • Competitively discounted rates for marketing professionals • An additional discount for Certified Practising Marketers

H O T E L & H O S P I TA L I T Y M E M B E R S H I P

As a member you have the opportunity to save on accommodation and dining at a choice of hotels throughout Australia and the Asia Pacific. Membership of the Accor Advantage Plus program provides you with a wide selection of benefits including: • 50% off the daily rack rate on accommodation and up to 50% discount when dining in participating hotels and restaurants • One night’s complimentary accommodation, and even priority access to major events

A F F I N I T Y C A R R E N TA L P R O G R A M

Hertz and the AMI are offering car rental benefits to members. As an AMI member, you will receive: • Special benefits on car rental • Access to special offers such as upgrades and free day rental offers throughout the year • Fee waived membership to the Hertz #1 Club Gold program It’s the fast, easy way to rent a Hertz car in Australia and around the world.

Q A N TA S C L U B L O U N G E M E M B E R S H I P

When you travel, enjoy the services and facilities provided by The Qantas Club by taking advantage of the generous corporate rates for AMI members. As a Qantas Club member you have access to: • Lounge facilities which include complimentary refreshments and private meeting rooms • Services such as priority baggage handling and personal seat preferences • Access to more than 250 Qantas Club, partner airline and associated lounges worldwide (subject to access conditions)

I N F O R M AT I O N S E RV I C E S

The AMI has partnered with Aquent, a global staffing firm, to conduct the 2006/2007 Aquent Orange Book - Salary Survey and Industry Monitor for the Marketing, Communications and Creative Industries across Australia. AMI and Aquent will supply members with a copy of this report, which provides: • Latest salary information on hundreds of staff categories • Statistics on revenue growth, staff retention strategies, hiring trends and anticipated salary increases • A valuable management tool for any decision-maker in the marketing, communications and creative sectors

Do you need to quickly ‘get up to speed’ on a topic for new business pitches, presentations, emerging markets or new business opportunities? In alliance with Axiom Consulting Australia, the AMI is offering members an exclusive research service called dotpoint. Advantages include: • Marketing oriented summaries on the topic of choice • Fast and easy-to-use reports for marketing, public relations and advertising professionals • 15% discount off standard rates and a FREE ‘snapshot’ report for prospective users

IBISWorld is a one stop shop when it comes to researching the key industries and enterprises that drive the Australian economy, together with the business environment in which they operate. The AMI, via IBISWorld, will provide members with reports on Australia’s 500 industries, top 2000 companies and hundreds of business indicators to assist in your business making decisions. Member benefits include: • 15% discounts for subscription packages and individual industry, company and business environment reports • FREE industry and company ‘snapshots’, special offers and an online Industry Bulletin

W E B H O S T I N G & M A N A G E D S E RV I C E S

WebCentral is Australia’s largest web and application hosting company, providing web hosting and email services to companies of all sizes in the Asia Pacific region. As a major sponsor of the AMI, WebCentral is offering members exclusive access to the following discounted web hosting and managed services: • 10% discounts for shared web hosting, online business tools and business email services • Special offers, FREE trial periods and ‘hands on’ training sessions

P U B L I C AT I O N A D V E RT I S I N G

B&T’s Professional Marketing magazine is the flagship trade title for the marketing industry, and is the official magazine of the Australian Marketing Institute. Professional Marketing and the AMI are offering members the opportunity to advertise in this magazine at substantially discounted rates: • 30% discount off the standard casual rates for display advertising space

The Australian Marketing Institute has negotiated

on behalf of members an array of new and exclusive benefits,

which include discounts off standard rates and complement

the current AMI membership services.

C U R R E N T M E M B E R S H I P B E N E F I T S

• Professional Development • Visibility • Events • Recognition of Achievement • Career Advancement • Certified Practising Marketer Program • Practising Standards and Code of Professional Conduct • Marketing Publications • Networking Opportunities • Professional Recognition

F U RT H E R I N F O R M AT I O N

For more information regarding our new membership benefits, please contact the Australian Marketing Institute:t e l 1 8 0 0 2 4 0 2 6 4 f a x 1 8 0 0 2 4 1 2 6 4 e m a i l benefits@ami.org.au w e b s i t e www.ami.org.au

© 2006 Australian Marketing Institute ABN 30 000 026 586*Countrywide Tolstrup Financial Services Group Pty Ltd operates under Australian Financial Services License number 244436.

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06 AUGUST2006Marketing and T H E L A W

The Federal Government has introduced into Parliament theDo Not Call Register Bill and the Do Not Call Register(Consequential Amendments) Bill.What does the proposed legislation prevent?

As a general rule, it will be a breach of the legislation tomake a telemarketing call to an Australian telephone numberthat is listed on the Do Not Call Register.

However, listing a telephone number on the register willnot prevent calls from all telemarketers. Charities, religiousorganisations, government bodies, registered political parties,independent Members of Parliament and candidates andeducational institutions (where the call is made to a student orformer student) are still permitted to call.

In her media release about the introduction of the bills toParliament, Senator Helen Coonan said that it was importantto “allow these organisations, who carry out activities in thepublic interest, to be able to continue to provide services to thecommunity”.

In addition, telemarketing calls will not infringe thelegislation if:● The call is made with the express or inferred consent of therelevant telephone account holder or their nominee.● The call is made to a number on a list that the telemarketerhad checked against the register in the past 30 days and thenumber was not listed on the register at that time.● The call was made by mistake.● The caller had taken reasonable precautions and exerciseddue diligence to avoid the contravention.Establishment of the Do Not Call Register

The legislation requires the Australian Communicationsand Media Authority (ACMA) to establish the register. ACMAcan either maintain the register itself or outsource its operationto a third party. The Federal Government has indicated that itexpects ACMA will put the operation of the register out totender once the legislation has been passed.

Once established, individuals will be able to request thattheir number be listed on the register. There will be no chargefor this service. The number will then be included on theregister for three years and can be re-registered when the threeyears expires or if it was removed for another reason.

The cost of the register will be shared by the FederalGovernment (which will contribute more than $17 million)and the telemarketing industry (which will contribute anestimated $15.9 million over four years). The telemarketingindustry’s contribution will be made by way of fees paid to‘wash’ call lists against the telephone numbers listed in theregister.Small businesses will not be able to register

Contrary to information released earlier this year, theGovernment has decided not to permit small businesses to listtheir numbers on the Do Not Call Register. According toSenator Coonan, “businesses contact each other for amultitude of reasons in the course of day to day operations,

Ring, ring … be careful who you call

and the Government was concerned not to potentially exposeorganisations to fines and penalties for ordinary business-to-business contact”.Outsourced telemarketing services

Organisations that outsource their telemarketing callsmust expressly require that the person to whom they outsourcethose calls (e.g. a call centre) must comply with therequirements of the legislation and also take reasonable stepsto ensure that their employees and agents comply.Consequences of non-compliance

ACMA will be responsible for investigating complaintsabout telemarketing calls and enforcing the legislation. Arange of civil penalties will be available, depending on thenature of the breach.

Fines for breach of the legislation range from $1,100 to$1.1 million. ACMA will also be able to take other steps, suchas issuing formal warnings or infringement notices and takingaction in the Federal Court for injunctive relief.Regulating legitimate telemarketing calls

ACMA is obliged under the legislation to develop acompulsory standard for all telemarketing calls (includingthose that fall within the exemptions outlined). The standardswill regulate matters such as the times that telemarketing callscan be made, the information that must be given to callrecipients and when calls must be terminated. The standardwill also require that telemarketers must enable calling lineidentification.Timeframe

Senator Coonan has requested speedy consideration of thebills by the House of Representatives and the Senate so thatACMA can start implementing the Do Not Call Register asearly as possible in 2007.

The Federal Government has previously predicted thatthere would be one million registrations within a week of theregister being established and four million registrations withinthe first year.

By Philippa Hore (left),Special Counsel,Technology andIntellectual Property, andJacqueline Scarlett,senior solicitor,Clayton Utz

Email:Philippa Hore phore@claytonutz.comJacqueline Scarlett jscarlett@claytonutz.com

Website: www.claytonutz.com

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07AUGUST2006 Cutting edge T O O L S

The 2006 INFORMS Society for Marketing Science PracticePrize competition judges declared a winner at the 28thMarketing Science Conference in June, hosted by the KatzGraduate School of Business at the University of Pittsburgh,USA.

The prize is supported by grants from the MarketingScience Institute, the Brand Science Institute, the Institute forthe Study of Business Markets, the European MarketingAcademy, and the Australian Marketing Institute, inconjunction with the Australian and New Zealand Academy ofMarketing.

The winning entry was ‘Incentive Planning System: ADSS for Planning Pricing and Promotions in the AutomobileIndustry’, by a joint team of Professor Jorge Silva-Risso fromthe University of California, Riverside, and J. D. Power’s IrinaIonova.

Their work reports on a promotion analysis tool thatenabled car manufacturers to improve the timing, frequency,and components of their promotional activity to maintain salesbut reduce margin loss.

The authors presented evidence of savings in the order of$2 billion, with Daimler Chrysler executives alone claimingannual benefits of $500 million. The researchers used the salesdata available to J. D. Power to help them work withindividual car manufacturers to calculate the dynamic impactof sales promotions. The work was implemented in a phasedapproach, allowing an evolutionary increase in sophisticationamong its users.

The Practice Prize is awarded for an outstandingimplementation of marketing science concepts and methods.The methodology used must be sound and appropriate to theproblem and organisation, and the work should have hadsignificant, verifiable and, preferably, a quantitative impact onthe performance of the client organisation.

The 2006 Practice Prize Committee comprised NilsAndres (representing the Brand Science Institute), Pete Fader,Delaine Hampton from Procter & Gamble, DominiqueHanssens (representing the Marketing Science Institute), GaryLilien (representing the Institute for the Study of BusinessMarkets), John Roberts (Prize Committee chair), Steve Shugan(as Marketing Science editor), Jan-Benedict Steenkamp(representing the European Marketing Academy), and TulinErdem (as ISMS president).

The other finalists‘The Power of CLV’, by V. Kumar, Denise Beckman,Tim Bohling, Rajkumar Venkatesan

This research described a carefully planned andimplemented program within IBM to optimise the number oftimes the organisation ‘touches’ its customers, incorporatinginnovations with respect to alignment with corporateobjectives, forecasting cost to serve, imputing unobservedcontribution margins, and allowing for interdependence ofpurchase incidence and quantity.

Incentive planning system wins Marketing Science prize

‘BRAN*EQT: A Model and Simulator for Estimating,Tracking, and Managing Multi-category Brand Equity’, byVenkatesh Shankar, Pablo Azar, and Matthew Fuller

In the BRAN*EQT study, the researchers examined thedrivers of the Allstate brand name. By understanding howadvertising investments directly influenced the brand equity ofAllstate, the researchers were able to make brand-buildingactivities within the firm accountable.

This led to advertising changing from being viewed as adiscretionary cost to a strategic investment. One of the usefulaspects of the research was to ‘untease’ the benefits ofcorporate branding into the advantages that were captured byeach of the divisions within Allstate.

By John Roberts FAMI CPM

John Roberts is Professor of Marketing at theAustralian Graduate School of Management and theLondon Business School, and chair, 2006 ISMS PracticePrize Competition Committee. He is also team leaderof the AMI’s Marketing Metrics Project.Email: JHRoberts@london.edu

ABOVE: Prize Committee chair Professor John Roberts(left) presents the winners' plaque to Professor JorgeSilva-Risso, from the University of California, Riverside.

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08 AUGUST2006Cutting edge T O O L S

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‘Planning New Tariffs at Tele.Ring – An Integrated STPTool Designed for Managerial Applicability’, by MartinNatter, Andreas Mild, Alfred Taudes, and Udo Wagner

Tele.Ring is a leading cellular phone supplier withinAustria. A new entrant threatened its position and pastexperience suggested its share could become marginal as itwas squeezed by different players within the market. Byundertaking a detailed segmentation study, Tele.Ring was ableto identify a new market opportunity of no upfrontsubscription charges, which would be difficult for othercompetitors to mimic.

A sophisticated perceptual mapping study not only madethe resulting service innovation credible to seniormanagement, overcoming internal barriers to its launch, it alsoprovided ideas as to how the product could be introduced witha compelling and relevant advertising campaign.

Presentations available for studyAs with previous competitions, the presentations were

professionally videotaped and have been edited especially forclassroom use. These DVD versions of the presentations are inchapter format, enabling rapid and easy selection of theaspects of the presentations that instructors wish to highlight.

DVD users also have access to the papers and the relatedcompetition PowerPoint presentations for use in theclassroom. This material, along with the material fromprevious competitions (available now), will be available by 15October at http://www.informs.org/Edu/MarketingScience

In addition, papers and reports on these outstandingimplementations of marketing science will appear in aforthcoming issue of Marketing Science. Short 3-4 minutevideo summaries of each of the presentations are nowavailable at http://www2.informs.org/Edu/MarketingScience/

Entries are being sought for the 2007 Practice PrizeCompetition. For further information, contact John Roberts atJHRoberts@london.edu

Hyundai shifting A-League focus to fans

Korean motor vehicle manufacturer Hyundai has providedsome insight into its naming rights sponsorship of the A-League heading into the competition’s second season.

The senior manager marketing for Hyundai Australia,Alex Pinsuti, said that the first year of the arrangement was asuccess and had confirmed that sponsorship was very muchabout developing a long-term partnership and having a long-term strategy.

He said that you simply did not get instant rewards fromsponsorship and that, as such, the company had developed amulti-year strategy for its involvement with the competition.

Pinsuti said that the year one objective was to ensure thesuccess of the competition. The company had worked closelywith Football Federation Australia on several marketinginitiatives to promote the new league. He said that the firstyear was very much about introducing the brand to the footballcommunity and building awareness of the Hyundai brand’slink to the competition in Australia.

Moving into year two, Pinsuti said its sponsorship wouldinvolve the development of closer relationships with A-Leaguesupporters, in that the company wanted to interact more andintroduce its product range to the A-League fan base.

He commented that while year one was all aboutdeveloping the Hyundai brand, which had been successful,year two would see the company take its relationship with thefan to the next level and encourage them to take a closer lookat Hyundai vehicles. He said that the company wanted toconnect with people and point out that Hyundai was the brandthat supported their game, both locally and internationally.

Pinsuti said that the tag line it had developed in Australia— “where there is life there is football, and where there isfootball there is Hyundai” — really summed up the alignment

the company wanted with the sport and its followers.© pando Publishing 2006

The first item of ‘In brief’ comes courtesy of pandoPublishing. AMI members receive a 10% discount onpando newsletters: Australian Corporate Hospitality;Onsport Newsletter; Australian Sponsorship Newsletter; andAustralian Sponsorship Database. Emailinfo@pando.com.au, referring to your membership, toobtain a special subscription form.

Member receives humanitarian awardThe Australian Lions Foundation has recognised the efforts ofAMI member Bob Crawshaw, who has helped more than 60volunteer organisations in the past three years.

The foundation presented its prestigious Ian StockdaleAward for Humanitarian Services to Crawshaw, of Canberra’sMaine Street Marketing, for providing marketing support tocommunity groups.

Since 2003, Crawshaw has run free marketing workshopsfor not-for-profit organisations to help them promote theirwork. Crawshaw said: “The workshops, provided under theLions banner, offer a service many local groups could nototherwise afford.”

Have you seen the AMI’s free jobopportunities service?

The AMI offers its members the opportunity to list ‘positionsvacant’ and ‘positions wanted’ advertisements on its website.This service is free of charge, and offers the opportunity to getyour advertisement in front of a qualified audience. Furtherdetails can be found on the job opportunities page of thewebsite by clicking here.

IN BRIEF

09AUGUST2006 Professional S E R V I C E S

By Louise Robinson and Dr Daryll Cahill

Professional services firms need marketers (and many otherprofessionals outside their core technical service offering) tocreate a sustainable and profitable client base. However,partners’ lack of understanding of marketers’ skills and waysof working can cause frustration on both sides, leaving themarketers feeling that their planning and advice is beingignored and the partners wondering why they hired marketingprofessionals in the first place.

Once a firm has decided to hire marketers, it is essential tounderstand how to make best use of their expertise and how tointegrate their work with that of the firm’s fee earners.Expectations for both sets of professionals must be discussedand aligned with an agreed marketing plan.

First, a professional services firm needs to understand thatmarketing has several broad specialisations.

What is marketing?Marketing generally can be defined as devising and using

a range of activities that will assist in positioning the firm tosell services to specific target groups. The marketing of thefirm’s services may be presented as the provision of solutionsto organisations’ needs and problems through devices such asevents, sponsorships, seminars and presentations, andsupporting communications materials including brochures,tenders, and credentials statements.

Business development is based on understanding clientsand the market in a systematic manner and then devisingstrategies to meet the needs uncovered. Business developmentaims to retain clients and recurring revenue and to generatenew revenue from existing clients or strategically selectedtargets.

Communications can be divided broadly into external (tothe marketplace) and internal (to staff). Externalcommunication activities include media and public relations,production of brochures, capability statements, speeches andpresentations, and Internet, email and direct marketingactivities that increase knowledge of a firm’s brand andreputation to clients and targets. The communication can begeneral, to the mass market, or tailored to specific clients.

Internal communications involves the use of intranets/email, in-house publications, voicemail, posters, and internalspeaking forums. Internal communication is important toensure that messages conveyed to the external marketplace areknown and reinforced by all staff. It also plays an importantrole in ensuring that conflicts of interest are uncovered anduseful business, new client or target relationships areidentified and used in retaining or winning clients.

Advertising provides information about the organisationand its work. It involves different types of media: print-basedadvertising, catalogues, flyers/inserts in publications orhandouts, commercials on radio, TV, Internet, billboards and

Integrate your marketers to best use their skills

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posters. Advertising can be used to generate brand or namerecognition, assist with recruitment, announce successes suchas awards and achievements, or to promote a specialisation.

To achieve a return on investment in any of thesemarketing-related activities, professional services firms needto understand these specialist roles and how they can beintegrated into practice development. Without a long-termstrategic view, the skills of marketing staff will be under-used.Professional services firms need the infrastructure to managemarketing staff — career paths, access to management andpartners — plus an understanding of the application ofmarketing skills.

Many marketing activities will be wasted effort if they areundertaken on the spur of the moment, suddenly dragging feeearners off billable work and forcing the marketingprofessional to quickly act, unplanned, without understandingof expectations or outcomes.

Marketing professionals also need to play a role in theeducation process. They must articulate how professionalmarketing skills can meet the firm’s present and future needs,such as identification and development of revenueopportunities, market positioning and brand development, andhow the results of their work can be measured and assessed.

What marketing can and cannot doHere is an outline of what can and cannot be achieved by

a professional services firm using marketing’s skills and tools.MarketingMarketing can:● Provide effective tools to reach key targets.● Measure and monitor activities used to reach targets.● Tie external communications to business needs.

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Louise Robinson AMAMI is a nationaldirector of business development andmarketing. She has more than 12 yearsof senior professional servicesexperience in large Australian legaland global accounting firms.Email: lourobinson@deloitte.com.au

Dr Daryll Cahill is a senior lecturer inthe School of Accounting and Law, RMITUniversity, Melbourne, with researchinterest in measuring intangible assetsand intellectual capital.Email: daryll.cahill@rmit.edu.au

10 AUGUST2006Professional S E R V I C E S

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Marketing cannot:● Be successful if delivered piecemeal or outside a definedstrategy.● Replace face-to-face relationships or a total communicationsprogram.Indicative measures:● Number of materials produced that achieve desiredoutcomes, e.g. tenders, marketing collateral that can be atalking point for clients.● Feedback from clients or partners as to the accuracy andquality of marketing information and queries generated.AdvertisingAdvertising can:● Assist the market to become aware of your firm and itsservices.● Generate interest and inquiries.● Complement an external communications program,especially media.Advertising cannot:● Build relationships with clients.● Compel people to contact the firm.● Replace face-to-face or relationship-building activities.Indicative measures:● Responses from a ‘call to action’ in the advertisement orarising from a sponsorship.● Number of queries generated from advertising.● Capturing comments from clients and targets (solicited andunsolicited feedback).Business developmentBusiness development can:● Provide understanding of existing clients and their needs.● Provide analysis and strategy of targets and how to reachthem.● Focus resources to meet business needs for profitable, long-term client relationships.Business development cannot:● Replace the need to act in order to retain or gain new clients.● Be effective without implementation by professional staff.● Work in isolation from other specialists.Indicative measures:● Number of new engagements from cross-referrals in targetedsegments.

from previous page ● Size of engagements – has the work increased in scope orcomplexity.● Client satisfaction measures as per client feedback.● Client retention or new client wins,● Number of relationships and depth of these – i.e. decision-maker-level access arising from marketing activities.External communicationsExternal communications can:● Profile expertise in particular area.● Increase awareness of credentials.● Showcase intellectual capital.● Assist in differentiation from competitors.● Enhance market reputation.● Lead to more publicity.External communications cannot:● Be effectively controlled.● Create sales.● Compel people to buy.● Limit competitor activity.Indicative measures:● Number of media hits (compared with competitors).● Number of follow-up pieces of media arising from activities,e.g. additional request for information arising from release,quoting of source article in other articles.● Measurement of Internet traffic, particularly relating tocampaigns.Internal communicationsInternal communications can:● Profile expertise of firm to all staff.● Reinforce firm’s values to staff.● Identify relationships or prior work for client.● Educate staff on external messages and brand.Internal communications cannot:● Generate sales or interest from the marketplace.● Build relationships with clients.Indicative measures:● The staff understands the firm’s core values (solicited andunsolicited feedback).● Staff can name key clients/industry segments and keystatistics about the firm as per surveys and feedback.● Responses to conflict or relationship searches (number,timeliness and additional information). ●

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11AUGUST2006 Book R E V I E W

Magic Num8ers for ConsumerMarketing— Key Measures to Evaluate Marketing SuccessBy John Davis. Published by John Wiley & Sons (Asia)Pte Ltd, Singapore, 2005. 309 pages. RRP $46.95.ISBN 0 470 82162 0.

Reviewed by TARNYA KEATING

Although you might groan at the title and the subject matter,almost any marketer who reads this book will find it is exactlywhat they have been searching for or what is missing fromtheir marketing reference library.

From the start, author John Davis is quick to point out thestruggles that we face at the cold front of our profession: “…marketing is a hybrid: art and science; qualitative andquantitative. There are no perfect formulas or idea practicesthat are uniform across or even within industries”.

However, I strongly believe thisbook fills a gap in marketingreference materials. It is a shorthandguide to the economic and financialapplication of marketing and anexcellent reference guide to consumermarketing metrics. It shows how tofurther develop a marketer’s business

acumen, how to evaluate return on investment for marketingstrategies, and ultimately it speaks the language of generalmanagement to fast-track approvals for marketing proposals.

Also an excellent tool for training and guiding marketingstaff, the simple and concise format is more in the style of‘Marketing Numbers for Dummies’. Read this book and youwill have the answers to questions you were too afraid to ask.

The book is clearly organised and succinctly covers howto measure (the definition and formulas), report (how to findthe data), compare and evaluate (what it means and potentialchallenges) on the four main marketing areas for evaluation:market; company; customer; and marketing.

In reviewing the book with a senior finance manager, Ifound all the approaches and formulas presented to be in linewith Australian and general company practices. The only reallycontentious area covered is how to measure brand equity.

However, as with all sections in the book, a fairopinion and more than one formula are discussed indetail.

Magic Num8ers for Consumer Marketing isrecommended as essential for every marketingmanager’s shelf!

Tarnya Keating is the regional marketingmanager for Delfin Lend Lease in NSW/ACT.

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Asia’s Star Brands

By Paul Temporal. Published by John Wiley & Sons,Singapore, 2006. 301 pages. $30.95 (pb).ISBN 0 47082156 5.

Reviewed by DR LINDA BRENNAN AMAMI CPM

As someone who is interested in international marketing andconstantly on the lookout for examples of marketing inpractice, I was really looking forward to reading this book.However, I found it somewhat disappointing because it did nothelp my knowledge of Asian markets, people or companies.

The ‘star brands’ identified were not always Asian, either.For example, a German goes to Thailand, adopts their idea fora ‘tonic drink’ and starts selling as a joint venturein Europe. This is the Red Bull Story and, yes, itwas successful, but … what I want to know iswhere is ‘Asia’ in this story? Would a uniquelyAsian approach be as successful?

This question arose because many of thecases are not Asian at all. For example, lasttime I looked, Jim Thompson came from theUnited States, Sir Stamford Raffles was ‘oldBritish empire’ and Emirates is located inthe Middle East.

The lessons learned from this bookmight be that to be successful you shouldbe anything but Asian. I don’t think this

message is an accurate portrayal of the potential of Asia in aglobalising world.

The book tries to cover the branding aspects of successand attempts to be a text book set of cases. However, it doesnot quite meet either of those objectives. First, if you knewanything about branding (which most of us in marketing do),this book does not tell you anything new or different.

In Reis and Trout parlance, it fails the differentiation testand does not claim a unique position in the marketplace (inthis case the mind of the reader). If you knew nothing at allabout branding it would be equally as problematic because it isso filled with marketing jargon that an outsider would havedifficulty interpreting it.

Second, while I feel sorry for case study writers in this dayand age of real-time Internet updating, much of theinformation provided is already out of date and/or is readily

accessible from websites – in which case justifying thebook’s price tag is an issue.

However, what it does do issummarise a lot of material. Thisfunction has value if you are time poorand need a refresher course in brandingstrategy.

Dr Linda Brennan is Associate Professor inMarketing and Director of UndergraduatePrograms in the Faculty of Business andEnterprise at Swinburne University, Victoria.