And it is that one of the most striking conclusions of the report “CMO Survey Panorama 2021, Spain Edition “Towards the unknown”, Prepared by Dentsu’s Consumer Insights & Strategy department on the results of interviews with 100 marketing directors of large companies in Spain, contrasted with the responses of more than 1,250 CMOs from 11 other countries.
In the face of the unknown, some CMOs have decided to focus on the fundamentals of marketing in response to this whole situation, and they are doing so by looking back at the origins of marketing and recovering and recovering their four 4Ps: product, price, point of sale and promotion.
The fifth “P”
However, during the crisis, leading brands are also showing their more responsible side through tangible actions and useful experiences for consumers: that is, the fifth “P”, the purpose.
Leading strategies have emerged, but now the focus must be on the ability to deliver results that meet expectations. The survival of brands and even the country’s economy depend on the marketing function as a driver of growth.
Skills of the “Hyper” CMO
The study also offers a guide to the five key strategies that brands must develop at this time:
1.Hyperempathy– Needed to understand and understand consumer behaviors through first party data, direct e-commerce strategies, and increased investment in CRM to maximize brand equity.
2.Hyperagility: In a changing environment, the data collected must be quickly transformed into plans capable of attracting and retaining customers, prioritizing content and price optimization.
3.Hypercollaboration– Creating closer links between departments and serving as an integrator on the steering committee and even with other departments or suppliers allows more effective adaptation to changing consumer needs.
4.Hyperconsolidation: Large brands can consolidate in this crisis by acquiring or merging with small companies that fill strategic gaps in their offer of products and services.
5.Hypertransparency: companies must ensure that all their elements and processes can be scrutinized and submitted to public opinion. In crisis situations, people look for responsible companies that are committed to society.
No instruction manual
The reality that CMOs will face in the coming months has no antecedents or instruction manual and is what will define their functions in 2021. The challenge that more Spanish CMOs agree on (39%) has to do with the justification of investment in marketing, where they will have to demonstrate the return on each euro invested. This figure is double the result of the rest of the countries included in the report.
Many brands have out of necessity embraced the digital transformation at an unprecedented rate. Despite this and other changes that make up the new normal, in Spain 96% of CMOs have been using strategies from past recessions to cope with this new and different landscape, compared to 88% of the global average.
The way of offering responses to the crisis varies in Spain with respect to marketing directors in other countries. In our country 29% of CMOs have identified their ability to be inclusive and achieve a unified work among all members of the management as a key point, compared to 20%.
Among the strategies that CMOs implemented in Spain to get through the crisis in 2020, the most effective were: the work side by side of the steering committee (C-Suite) for make decisions in a consensual and efficient manner without affecting any of the business areas (21%); optimize the pricing scheme and offer products and services adapted to the needs of the moment (20%), and be agile before the adjustment of the marketing mix to focus investment on those channels with the best return (17%).
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