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Science has permeated marketing for decades. In reality, though, the s through the early s witnessed a happy marriage of advertising and technology as marketers mastered both the medium of television and the science of Nielsen ratings. Until recently, marketers could be forgiven for looking back wistfully at this golden age as new forces reshaped their world into something completely different. The efficacy of this spending is under deep scrutiny. Paradoxically, though, CEOs are looking to their CMOs more than ever, because they need top-line growth and view marketing as a critical lever to help them achieve it. Can marketers deliver amid ongoing performance pressures? At the core of the new era are five elements that are simultaneously familiar and fast changing. The first two are the science and substance of marketing. Leading marketers are using research and analytics to shed light on who buys what, and why; who influences buyers; and when, in the consumer decision journey, marketing efforts are likely to yield the greatest return. That understanding, in turn, is making it possible for marketers to identify more effectively the functional benefits that customers need, the experiences they want, and the innovations they will value. Organizational simplicity is fueling speed , and story is pulling things together while inspiring both the customer and the organization. Happily, the story just seems to get better as creative minds express themselves through digital means, and it then echoes and expands through social media and user-generated content. Advances in data, modeling, and automated analysis are creating ever more refined ways of targeting and measuring the returns on marketing investments, while generating powerful new clues about why consumers behave as they do. Long gone is spending guided mostly by intuition and focus groups. Instead, organizations are seeking greater precision by measuring and managing the consumer decision points where well-timed outlays can make the biggest difference. A major consumer company investigating the decision journey for its products recently undertook a consumer study, collected through online surveys, on a massive scale and at a speed that would have been unimaginable in the days of mall-intercept interviews. The project, which involved more than 10, surveys over the course of a month, uncovered material differences between how the company and consumers were thinking about the category, while also explaining what drives choice at each stage of the journey. These insights are now being used to change brand strategy, product-portfolio design, and marketing campaigns. The potential impact runs into billions of dollars in additional revenue. While much recent marketing science has played out in the measurement and targeting of advertising and promotion expenditures, many consumer companies are increasing their focus on in-store behavior: how promotions, traffic flows, and physical engagement with products affect sales. The impact goes beyond marketing and product teams. Marketing science is boosting the precision of real-time operating decisions. At a major hospitality company, marketing analysts are able to get a read on the performance of a particular property or category over a weekend and then drill down on individual customer segments to assess how to make improvements. If the data show that a profitable segment of weekend travelers are shortening their stays, the company can create special offers such as late checkouts or room upgrades to encourage repeat business. Or consider how one industrial-products company revamped its highly fragmented portfolio of more than SKUs sold to customers in a diverse set of industries. Prices varied widely even for the same products, without any clear reasons as to why, hindering efforts to manage margins. An analytical tool that could scan 1. Ultimately, it reset about , price points. More scientific marketing means that CMOs and other senior leaders need enhanced analytical skills to exploit data possibilities more fully and stay ahead of the whirl of developments. Knowing what can be automated, when judgment is required, and where to seek and place new technical talent are becoming increasingly central to effective marketing leadership. That is intensifying the war for specialized talent as traditional marketing powerhouses bid against high-tech companies for needed skills. As more advanced marketing science and analytics take hold, they are making it increasingly natural for marketing to go beyond messaging and to shape the substance of the business, particularly the experiences of customers, the delivery of functional benefits, and the drive to develop new products and services. Luxury carmakers already are making sophisticated safety options part of their marketing story. Simultaneously, Amazon and other digital players are pressuring brick-and-mortar retailers, which are responding both by retooling their supply chains to enable faster restocking and one-day delivery and by creating new advertising messages around the in-store pickup of online orders. Marketers are well placed to help their organizations meet the rising bar by, for example, making the case for customer-care initiatives and for consistency in the customer experience. A better one became the heart of a marketing campaign at European energy supplier Essent, a subsidiary of RWE. To ensure that the company delivered on the promise, the CEO named the chief of marketing to lead the initiative. Among the successes: making customer onboarding less cumbersome by cutting process steps from seven to two. Marketing also took the lead in efforts to create new products that customers wanted. Some of its functionality was cocreated with customers. These efforts and many more like them are extending marketing into the guts of the business, and most would not have been possible just a few years ago. But ways to tell it are morphing continually as the stuff of storytelling encompasses richer digital interactions, and mobile devices become more powerful communications tools. In this world, creativity is in greater demand than ever. It tells the story of a father writing to his daughter as she grows up, with the narrative demonstrating how Google search, Gmail, and YouTube can be new channels of human connectivity. It dramatizes the moms who were there for their kids throughout the years of hard training, who picked them up when they fell, and who deserve celebration as the unsung heroines. Over a decade after their first collaboration, creative chief Karl Lagerfeld has again partnered with film director Baz Luhrmann to produce a short film on a woman whose lifestyle embodies the brand. New media also dictate that marketers relinquish control of the story as digital interactions with customers become more frequent. Customers want to interact with stories and modify them on social media. Following the kinds of story rules that once made board members and CEOs comfortable is no longer feasible. Social-media programs are consuming a larger share of many marketing budgets. A number of major consumer companies are using interaction centers to monitor and participate in social-media conversations as they develop, sometimes including the promotion of discussions on corporate social-media channels. Agency-management issues also are an important piece of the puzzle. Talent scarcity, evolving digital storytelling, and perceived institutional rigidities have opened new debates about the best ways to access creativity. Some companies, like Chanel, are enhancing their control over the story with supplemental digital content. Other global marketing leaders are bringing in-house more of their story muscle, particularly when it involves lighter message content for social media. Agencies are responding. Many are acquiring more digital talent and working to break down silos to overcome perceptions that they are actually geared to bigger productions and may lack the digital and story skills to handle new content in an agile, integrated way. Consumer preferences change with stunning velocity, as do the dynamics of markets and product life cycles. This culture of urgency means that marketers need a new agility, plus the management skills and organizational clout to bring other functions together at a higher clock speed. How speed is achieved, of course, will vary by company and industry. A number of CMOs we know are setting the terms of how functional units should collaborate and spelling out what the entire organization needs to know to get new products to market at a stepped-up pace. In these cases, marketing becomes the glue across the organization, providing oversight and coordination. These specialists train business units and functions in the skills needed to be effective in digital marketing and social communications. At Google, lead times for new products are continually shrinking. Internal teams are attuned to putting products in front of consumers and then, in real time, to bringing back insights in a cycle of testing, learning, and iterating. Marketers are central to this process: they work to develop close relationships with product-development teams in order to inject their knowledge of user needs into how products are developed. Achieving that shared vision between product developers and marketers is a key element of speed in formulating new products and features. The time-to-market benefits of better information and more fluid collaboration extend to a wide range of companies, sectors, and business functions. Consider, for example, how data and collaboration are increasing the speed and agility of B2B sales teams. Complexity is the enemy of speed, which is a big reason why a number of leading marketers are reforming their organizations. Too often, expanding geographic footprints, product proliferation, and new arrays of channels and digital specialties have led to complex hierarchies, silos, communication gaps, and redundancies. But these can be tamed. For example, one telecommunications company realized that a cumbersome organizational structure was getting in the way of delivering the top-notch customer service that the CEO had designated as a strategic priority. He created a unit combining existing call centers and a newly formed social-media customer-care group. The leader of the unit reports directly to him. Proximity to the top of the company allows the new team to collaborate more smoothly across the organization, while signaling the importance of the customer experience. Many consumer marketers are using technology to reduce complexity. They are embracing internal social-media platforms to encourage the generation and sharing of ideas, which helps speed up problem solving across the organization. Simplifying working relationships with advertising and other media agencies is another goal for many marketing organizations. Larger agencies offer more services, but the strengths of many still lie in traditional media. Marketers building teams of employees with strong skills in digital content and delivery are bringing more activities in-house, but bulking up can create complexity and slow things down. In our work with global marketers, including many leading-edge practitioners, we are seeing significant progress in each of these five dimensions. As you think about the implications of science, substance, story, speed, and simplicity for your organization, we suggest that you ask yourself five questions:. Although this may seem like a lot to handle, the rapid changes and fast-breaking opportunities facing marketers in the 21st century suggest to us that the best ones will have good answers to all of these questions. In our opinion, those that do will not only enjoy above-market growth, they will define the next golden age of marketing. Skip to main content. February 1, Article. Jonathan Gordon Jesko Perrey. Marketers are boosting their precision, broadening their scope, moving more quickly, and telling better stories. PDF KB. Explore a career with us Search Openings. Related Articles. Article - McKinsey Quarterly The consumer decision journey. Article Digitizing the consumer decision journey.

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