Thursday, 09 February 2012
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Five ways to keep your marketing department healthy

Marketing Week identifies five strategies that can help businesses and marketers adapt to a recession by improving levels of staff morale and marketing capability.

A marketer’s job requires many skills. Some are listed on the job description: quick thinking and creativity, for example. Others are simply very desirable, such as positive energy in the face of adversity and the ability to motivate an entire company around the brand.

But in the past year even the most positive marketers have found energy sapped by a depressed economy and falling demand for goods. Unemployment figures in the UK have hit 2.4 million – the highest level since 1995 – according to the Office for National Statistics.

With layoffs, salary caps, business closures and recruitment freezes put in place and promotions cancelled, just how can businesses make sure their marketers retain their skills and motivation? And is it possible for marketers to emerge from the recession as more skilled, creative employees?

Mhairi McEwan, founder of marketing capability firm Brand Learning, which both acts as a consultant and trains staff for Unilever and Cadbury, argues that if marketers aren’t motivated, the whole organisation is set to follow.

“People drive successful brands, not just budgets. The marketing department plays a huge role in empowering all the brand ambassadors – that’s all of the company’s staff – to strive for excellence,” she points out. “It must be recognised so marketers never feel underappreciated.”

Marketing Week has identified five strategies that can help businesses and marketers adapt to a recession by improving staff motivation and marketing capability levels: these can be termed extra skills, creative push, mentoring, internal academies and internal communications.

1 Extra skills

Enrolling marketers on courses can improve their ability to do their jobs. By ensuring that marketers are better prepared for both the financial challenges of a recession and are equipped to move quickly and take advantage when the upturn comes, businesses feel they are improving their future prospects (see business-to-business case study, below).

Brand Learning’s McEwan says that broadening marketers’ experiences and helping them think beyond the roles they carry out day to day is very important. Brand Learning holds a course in association with The Marketing Society called Marketing Capability Development, which aims to give marketers tools they can use as part of career development in future jobs. The course encourages companies to breed a new generation of chief executives.

Course leader Steve Radcliffe, a former marketing and managing director at Procter & Gamble, explains: “Marketers have to use their ambition as a driving force and take their skills and expand their leadership qualities across every boardroom division. It’s not enough to just be a marketer any more. Career paths should divert into other fields that can be applied to any corporation anywhere.”

The “extra skills” approach can help marketers facing the prospect of a salary freeze decide to help build the brand of their current employer rather than jumping ship. Mike Roberts, a headhunter for Moira Benigson Executive Search, whose clients include Apple, Liberty and Sainsbury’s, says the most talented marketers will always be in demand.

“If a company wants to retain its top marketing talent in a recession then it has to remember that they have to do a lot more work with less budget,” he warns. “If they feel even the slightest bit frustrated, then when the competition contacts them to try to poach them, they may well decide to entertain the offer.”

While training may still involve costs to businesses, these are generally far lower than recruitment. Ensuring that marketers have more skills to offer the business overall is also likely to have a positive effect on the bottom line across the company. “Marketers are becoming more skilled in a variety of different areas and so are able to cross divisions easily,” adds Roberts.

An even cheaper method of helping employees is ensuring that marketers train for any available professional qualifications. The company can help by offering the use of its IT resources, subscriptions to trade magazines and case studies and time off for studying.

Gill Waters, regional manager of Oxford College of Marketing, says: “By supporting employees’ training for professional marketing qualifications, organisations could leverage synergetic benefits.” And all without a large expense for the parent company.

2 Creative push

Although marketers are in a job that requires a certain level of creativity, the pressures on finances during a recession mean that sometimes companies cut back on innovation. Yet fostering ideas in marketing departments does not simply lead to new product development. Getting to flex creative muscles also helps marketers feel they are appreciated (see marketing agency case study, below).

Ricky Coussins, founder of marketing consultancy Coussins Associates, argues: “Brands pay far too little attention to their workforces and the ideas they are coming out with. This sort of attitude is the core reason why marketers become demoralised and move to other places, where their creativity is really considered a talent.”

The desire to work for a brand that encourages ideas was evident in the Marketing Week/Michael Page Marketing Top Employer Survey 2008 (MW 13 November, 2008), which saw Google named as the place marketers most want to work. It isn’t the salary that attracts marketers but the company’s ability to offer a challenging role in developing strategies for a well-known business that might not spend millions on advertising yet maintains high levels of brand equity.

Oxford College of Marketing’s Waters explains: “Successful organisations [like Google] will be organisations that have a plan to retain genuine talent and don’t rashly cut back on investment in skill.” They also require employees to remain creative and adaptable. It is more attractive for marketers to work for businesses that focus on opportunities rather than simply cost concerns.

The need for a push behind creativity is particularly stark in the advertising and marketing agency market, which relies on selling its ideas to multiple businesses. As clients cut their budgets, keeping staff motivated and taking a positive approach to the competitive market can be a challenge.

Many agencies are adopting a system of internal problem-fixing brainstorming sessions, designed to engage with account teams and help them develop stronger relationships with clients and each other (see marketing agency case study, below). This aims to keep marketers in high spirits and creativity in full flow.

However, Tamsin Russell-Flint, associate director at WPP-owned consultancy Added Value, warns: “Employees are like consumers. They’re inundated with initiatives and communications that try to engage and change behaviour. These initiatives are cyclical and hence lose momentum quickly within the business – which is accelerated in a recession.”

The key to making these projects successful is ensuring that creative pushes get carried into normal working life rather than staying as special projects, says Russell-Flint, who cautions that such programmes can be “difficult to link to the everyday” if companies fail to implement them properly.

3 Mentoring

Marketers welcome learning from their peers. Indeed, 84% of those surveyed recently by marketing recruiter Robert Walters believe they would benefit from a formal mentoring programme, with 45% saying that guidance, recommendations and constructive feedback received from a mentor would be of most value.

Companies can use mentoring initiatives to help keep marketers interested in their jobs and suggest new possibilities for campaigns or ideas. Practices used in one industry are rarely applied in another yet this kind of cross-sector conversation can generate new strategies and plans that boost the companies and the marketers involved (see marketing agency case study, below).

This appears to be more common in the US. Business-to-business technology company Instill Corp has long sent its senior executives out to be mentored by figures at other companies. For example, Andy Cohen, formerly the firm’s vice-president of marketing, was teamed up with Mohanbir Sawhney, professor of ecommerce and technology at Northwestern University and a member of five corporate boards.

Marketers are already used to sharing their concerns, ideas or strategies with colleagues in other companies operating at a similar level through LinkedIn groups and online knowledge exchanges, such as Insightory. There are even a number of agencies, such as Smarter Networking, that now specialise in “matchmaking” external mentors with corporate executives to offer help with everything from specific projects to simply providing support.

The system already operates in areas such as financial services, where firms such as IFA Life are rolling out a mentoring programme to match less experienced independent financial advisers with knowledgeable, experienced staff. Philip Calvert, the founder of IFA Life, claims that while not an “exact science”, creating access to “those who have been there and done it” is essential.

4 Internal academies

While sending marketers on courses is one way to improve skills, it may prove cost-effective to set up an internal marketing academy. Brand Learning’s founder Andy Bird helped Unilever set up its in-house academy and the agency recently launched its own Brand Learning Academy in association with the Institute of British Advertisers. This aims to build foundation-level marketing skills for marketers who seek to develop a better appreciation of the discipline’s core principles and practices.

McEwan says: “The programme helps companies look at the value that marketing brings to a business and gives them a real sense that they are investing in people by engaging their marketers. It offers skills development, support and a common identity for all marketers, so that they get a sense of personal development even when times seem bad outside.”

Other large companies that have set up their own marketing academies include Wal-Mart, which is run by the retail giant’s international chief marketing officer, Rick Bendel. http://www.marketingweek.co.uk/in-depth-analysis/lessons-in-marketing-come-from-the-heart/3001239.article Ebay’s former vice-president of marketing in North America, Kip Knight, also set up an international marketing academy for the auction site several years ago, based on one he had run at PepsiCo.

Knight initially set up the division at PepsiCo in response to his experiences of a lack of cohesive company spirit in international marketing departments. He described the idea of his later eBay academy as “a network of people talking to each other”.

He added that while hiring the right people was vital, “you need to put them through an indoctrination process so they feel like they’re part of the same team with the same goals and focus”. By using in-house marketing academies through every stage of the business, from initiating new staff to keeping people motivated and trained in times of recession, companies can ensure there are multiple opportunities for managers to identify dissatisfaction (see consumer-facing brands case study, below).

Pharmaceuticals company AstraZeneca is also following such a path. Tim Bailey, director of marketing strategy at the company, says: “It is important that we address any skills gaps that marketers feel they have and enhance their capabilities. Then when they communicate with the public they deliver the best idea possible in a way that is understood by all audiences.”

Far from being something viewed as costly, internal learning programmes can save costs in the long run as people become better skilled. AstraZeneca’s Bailey reveals that his company uses everything from “virtual classrooms to brainstorming to live action learning”. The end result, claims Bailey, is that marketers are “fit for any role in the company”.

5 Internal communications

Marketing cannot exist alone within a business as a discrete function. An opportunity to make sure that marketers are hearing the right messages comes in the shape of using HR and other departments to work closely with PR staff and motivating internal communications through staff magazines, department days out or company bonding days (see public sector and PR case studies, below).

Keith Burton, president of Insidedge, the employee communications consultancy of Interpublic Group, says: “Even though PR is an extension of marketing, all company employees rely on good internal communications to ensure they are in the loop as to how the company is doing and what they can use to boost morale and maintain motivation.”

While it might seem obvious that people working in marketing will respond well to communications, it seems this is rarely the case. In times of recession, the “fear factor” is also higher than ever before, with marketers concerned that they face the chop.

Tim Knight, director at consultancy Nunwood, says that being honest, upfront and regularly communicating with staff can tackle this issue. He claims: “Internal marketing has to become a core component in organisations to ensure everyone is singing from the same hymn sheet, and a culture of openness and transparency is obvious to all – boosting morale.”

Careful use of internal communications can also allow companies to conduct research into where marketers’ anxieties and concerns lie. Only by finding out about any worries are they able to address these as much as budgets allow and be open about this process. Knight continues: “It enables feedback to be taken into account and helps to ease fears about restructuring or changes to business procedures.”

Will it work?

While marketers may be keen to push their reputations as defined by Brand Learning’s McEwan as the “talent” keeping brand awareness high within organisations, will companies really implement any of these five strategies?

According to a recent survey from the European Leadership Programme, only 21% of employees believe marketing will be crucial in helping CEOs bring their organisations out of the recession unscathed. In addition, only 28% believe that sales and marketing skills are critical for the role of CEO. Despite this, respondents indicated that their CEO needs more support in marketing (37.7%) and sales (35.8%) within the senior management team. It’s an especially worrying time for those students and trainees entering the marketing industry. But while Nicholas Elliot, director at graduate consultancy The Grad Room, admits the market is flooded with young talent, he suggests that those new entrants who leave themselves open to learning more than just traditional marketing skills will eventually win out.

He notes: “The greatest advice I have heard about this situation is that nobody remembers the first role you did, but they remember how you did it.”

Yet despite opportunities for marketers to take on new skills and projects to broaden their experience, if businesses do not treat their marketers as well as their customers, they risk losing their greatest brand ambassadors. If even those working within the company walls do not really buy into the brands and messages they are producing, the corporate strategy risks faltering even before any products go to market (see top tips).

As the Open University Business School advises: “If you treat people badly during a recession, they will soon leave you when things improve; now is the time to incentivise and engage your top talent with alternatives to bonuses and monetary rewards.”

Internal communications case study

Public Sector

Public sector marketers have a tough job on their hands. They are asking consumers for money or support at a time when people have less disposable income and a greater fear of unemployment. All this on limited advertising budgets.

With these problems lingering in the background, it would be easy for marketers to feel vulnerable themselves, but those working in the public sector are reporting that “extra skills” training and better internal communications are helping ease concerns.

Alison Cowan, director of fundraising and marketing at Missing People, says the charity works hard to build relationships across the business, ensuring that marketers feel part of the whole organisation, rather than isolated.

“We’ve set up regular monthly team lunches where we use whatever discount vouchers are available at the time to get a cheap lunch. We take the opportunity to build team relationships and share ideas and issues,” she explains.

“We recently ran an all-staff session where we challenged the charity’s staff to ‘get to know’ the fundraising and marketing team. We shared a ‘secret’ from each team member and the rest of the staff had to guess to which person the secret belonged.”

Public sector marketers, she suggests, also benefit from the knowledge that their work helps improve society, which can be a powerful motivator even in times of recession when money is sparse.

“As marketers, it can sometimes be hard to stay motivated with very little to spend and the need to raise new funding. But we are lucky in that we only have to look at the walls of our office, which are covered in hundreds of posters of missing adults and children to be reminded of why we are here,” she says.

To reinforce the mission behind the marketing, the team also has weekly meetings with the people who deliver its charity services to the public. It hears their updates on the children and vulnerable adults who have called its helpline in crisis, as well as the families who have come to them for support as they search for a missing loved one.

This helps keep marketers in touch with the reason they do their job – an enviable return on investment in making a job personally satisfying.

Extra skills and internal communications case study

Business to Business

 

To the casual observer, the business-to-business sector may appear too corporate and profits-oriented to care about internal marketing. But it is this industry where marketers are often valued as core assets to the success of the brand. By using “extra skills” training to improve marketing capability and good internal communication, individual talent can be nurtured.

Electronic Data Systems, recently acquired by Hewlett-Packard, attempts to give marketers broader skills than those found in their day-to-day jobs alone. The company positively encourages marketers to look at other career areas to improve their capability.

Tina Green, its marketing director for UK, Ireland, Middle East and Africa, was previously a director of public affairs before venturing into marketing. She explains: “In large business corporations, marketers don’t have to stay in marketing; they have the opportunity to take their skills across any part of the business and demonstrate their skills in that area instead.

This ensures that even if pure marketing jobs aren’t available, there are still career opportunities. “It means we can keep marketers motivated through development, so that when vacancies come up elsewhere they have the skills to fill that position easily,” she explains.

Green adds that it’s important to recognise personal sacrifices and make the company more suited to its marketers. She says that small concessions by organisations can often have a large effect on motivation.

“The challenging economic environment means marketers make personal sacrifices to complete work and while salaries are capped, we look to reward them in different ways like family days, discounted HP products and discounts from other HP commercial partners,” she explains.

At Google, the brand where most marketers want to work, according to Marketing Week’s 2008 Top Employers Survey (MW 13 November, 2008), it’s about keeping the job itself interesting on a daily basis so there is obvious skills development.

 Dan Cobley, Google’s director of marketing for the UK, Ireland and Benelux, says: “Business-to-business marketing is all about helping our large advertisers make the most of the opportunity, with research and events helping the salesforce engage with big businesses to understand what Google can do to make them more successful. The constant challenge makes the job more appetising to our marketers.”

Jirina Yates, head of EMEA marketing at business communications specialist Avaya, says that enabling staff to work flexibly, while maintaining regular internal communication, is the key to her team of marketers remaining motivated. Again, it is balancing this with a more personal touch.

“You can’t over-communicate; marketers expect to be communicated to and know what is going on and when. The key is to maintain a life-work balance. I do this by allowing staff flexible working patterns and running an open-door policy,” she says. “We also keep morale up by holding regular brainstorming sessions and exercise collective thoughts – sharing makes it all more bearable and keeps morale on the up.”

Transparency and good communication are also the watchwords at office solutions company Ricoh, with messages from senior managers encouraging staff.

Ricoh UK marketing director Chas Moloney says: “Constant positivity from the chief executive and board of directors helps to keep everyone feeling motivated and valued. It helps to inspire marketers with tools, ideas and opinions.

“We are in a tough environment, so any sense of positivity is well received and helps to keep marketers creative in a quest to maintain high market share.”

Internal communications case study

PR

 

The worlds of marketing and PR have become increasingly close over the past few years as techniques such as “word of mouth” grow increasingly important for getting the most out of campaigns.

Despite this increasing demand for its services, the industry has been hit by the recession and has seen budgets and new business shrink, while existing clients rely on them to avoid negative reports. As a result, PR industry chiefs are turning to their core skill of communication to keep executives motivated.

Richard Millar, chief executive of WPP-owned agency Hill & Knowlton, says: “Times are tough internally and externally, so you have to over-communicate with your staff to ensure that they know they are valued and are doing a great job.

“You can’t shrink the volume and leave people in fear for their job safety. We realised this and stopped using digital means to communicate with staff, favouring the face-to-face approach instead.”

Hill & Knowlton chooses to focus on explaining challenges and heralding achievements with its staff on a weekly basis. It also boosts morale by doing collaborative charity works and team-building exercises. Millar adds: “By using opportunities to address negatives through team-bonding and brainstorming events, we know we are getting the best out of our team and keeping them motivated.”

Scott McKenzie, the chair of the internal communications working group of the Chartered Institute of Public Relations, heralds this approach. He says: “It’s essential that companies are seen to be investing in people, even with limited resources. The use of internal marketing helps to encourage staff to do their best against all the economic turmoil and expose their talent as best they can. When they come out of the worst, they can apply the lessons they learnt in future endeavours.”

But David Bells, a director of Garnett Keeler Public Relations, warns that any internal communication must have its roots in reality to seem credible. Transparency is more important than putting a good spin on a situation.

“Initiatives to maintain morale must be grounded, believable, credible, evidence-based and must have integrity.  It isn’t about what happens at the interface between management and employees; there is no magic formula for using communications to raise morale when the news is bad,” he argues. “Employees are generally not stupid and will see through any such programme pretty quickly.”

Those firms that manage to get it right, however, will achieve a reputational boost that will take the company far beyond the short-term bad times; those seen to be “spinning” or ignoring the situation will suffer. Lorraine Barker, head of the PR division at recruitment company Major Players, says that PR consultants are relying on word-of-mouth feedback to determine if a company is worth joining when the economy recovers.

She says: “If a company ignores the power of internal marketing and employees are left distressed, then it will suffer when the economy lifts and candidates look for new positions. To the employee it becomes apparent that the company doesn’t recognise good talent and cannot nurture them.”

Creative push and mentoring case study

Marketing Agency

Marketing agencies have faced the effects of the recession first-hand as their clients begin reducing budgets and cutting back on media expenditure. Traditionally hubs for young creatives, pressure from clients to cut costs has meant that agencies have cut back on their own expenditure.

Ian Millner, chief executive of Iris, says the onset of the recession has had a “massive impact” on the independent agency. It has had to come up with initiatives to keep morale up among those people developing creative ideas.

“We’ve gone from increasing business 50% year on year to having clients asking us to freeze work for a period of time,” he says. “We had to re-evaluate our spending drastically, which led to a decline in morale and questions as to whether we had become too corporate.”

To address the issues and keep the balance of idea-generation high and costs low, Millner began a programme of communication with employees, explaining clearly why things had changed and challenging people to see the creative opportunities posed by the situation.

“It was all about making people feel empowered and making sure they realise how important they are to us. We set up regular meetings so that people could come together and co-create new creatives. Each agency division also set up their own morale-boosting events like ‘Mad Hatter tea parties’,” recalls Millner.

The new approach aimed to ensure that marketers were able to keep up creative development in their career. The agency also started a mentor programme, graduate scheme, a development academy and “have your say” opportunities.

Millner says the mentoring and emphasis on opportunities has helped boost the agency staff’s spirit. “It’s all connected to eradicating the circumstances from external factors and bringing back a culture so that when clients ask, our teams are always happy and able to give them their creative best.”

Jeremy Shaw, chairman of Kitcatt Nohr Alexander Shaw, says that companies that help employees develop ideas and see creativity as a positive influence, rather than a costly nice-to-have, are those which will benefit in the long term.

“They thrive on innovation, growth and change. So it’s tough to keep the marketing troops happy when budgets are cut. But smart marketers can thrive on this too,” he says. “Just as great creatives can come up with wonderful ideas on a restricted canvas, so smart marketers can relish the extra spur to innovation and imagination that restricted budgets bring.”

He adds: “We have to work smarter. Delivering great campaigns on low budgets brings a satisfaction of its own. The real officer material emerges more quickly from the ranks.”

Internal marketing academies and creativity case study

Consumer-facing brands

 

Many consumer-facing companies are trying to cheer up customers through the recession with cheerful and optimistic campaigns but internal positivity can be tricky when brands are chopping marketing staff.

The insurance sector is one of many industries to have felt the strain of the recession. RSA Insurance Group’s group director of strategy, marketing and customer, Clare Sheikh, says developing a marketing academy for the organisation has helped to keep employees motivated.

“We have embedded marketing into the heart of our company so that anyone can learn about marketing skills and use them in their future careers,” she claims. She says this lets marketers learn “any aspect of the company they want to” and boosts both the working patterns of the business and the individuals.

“It’s all part of sustaining engagement and developing our brand internally, helping anyone determine their own career path,” she adds.

Other companies such as telecoms business TalkTalk are also using its external brand activities to engage its marketers and other employees. TalkTalk sponsors TV talent show The X Factor and took a roadshow to all of its business sites. It gave employees the chance to become “bright stars” by creating their own dances for the idents appearing on ITV during The X Factor. 

Olivia Streatfeild, TalkTalk’s marketing director, says: “It’s vital to drive engagement, excitement and buzz around the brand

and ensure that marketers feel that the brand’s relaunch is a project worth feeling motivated about.”

Jean-Michel Boujon, head of marketing for recruitment website TheLadders, says this sort of activity helps keeps marketers interested and motivated in their jobs even when financial career development is not an option. “If employees can understand as a business and a team what you are working towards, it puts the decisions and changes that are made along the way into context,” he claims.

Retailer HMV has also been conducting its internal marketing by treating its marketers in the same way they in turn treat their consumers. Gennaro Castaldo, director of communications, explains that the firm’s brand proposition about getting closer to music, film and games works just as well for motivating marketers as consumers.

“It’s about bringing everyone together through their passion for the product. We’ve also been developing our CSR and community engagement activities and these have had a huge galvanising effect, especially at store level,” he reports. Involving marketers on pushing society-friendly initiatives can be a cost-effective way of keeping interest levels high.

In the manufacturing sector, which has had to reduce supply due to plummeting levels of demand, businesses are relying on internal communications programmes to push the future potential of a marketing role, despite a lack of activity.

David Warfel, director of global marketing at Zippo, says a positive mentality has been essential. “It’s all about trying to get marketers to recall how good things were when we were busy, and trying to instil that positivism back into the mindset of the marketer by reminding them that the best is yet to come.”

Top tips

Internal marketing

  • Build trust and improve retention by developing a good internal marketing and/or communications plan that is open and transparent at all times;
  • Ensure that your department/company’s organisational goals and talent strategy are obvious to your marketers, so they feel they have objectives to meet;
  • Consider extra training or development opportunities, either internally or externally;
  • Put in place career paths for marketers so they feel they can become corporate leaders in the future;
  • Find ways to incentivise staff as alternatives to bonuses and monetary rewards – days out, discount vouchers, flexible working, career development;
  • Explore as many learning and development opportunities as possible through external and internal mentoring and coaching;
  • Ideas come at no expense – they can even save money. Companies with ideas are also better places to work and this ensures higher morale;
  • Encourage more teamwork across the business and help staff identify any mutual opportunities or problems common to the whole business.

Readers' comments (2)

  • We are an event production company and we are continually amazed at the amount of event "agencies" who approach us to do marketing and PR events for them with an end client who is 3 steps away from us. The consequence of this is that we have to include a percentage for them on our costs when, if the end client came to us directly, we could give them a direct cost. Marketing and PR departments need to do a bit more delving when looking for suppliers, ask pertinent questions, go and see their set up - we have a warehouse full of equipment and operate a construction workshop as opposed to a "one man in an office" agency who farms the work out to other companies. Huge savings can be made by choosing the right supplier!

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  • I have to agree with Rachel. It is too often the case that the agency I work with ends up responding to a diluted or inexact brief thanks to an agency that sub-contracts work it does not understand. Brands, if you want good work find a good creative agency which has a minimal cost base but is able to delive great work. I could name several smaller agencies that can deliver the ceative goods for a fraction of the cost . . . just ask!

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