Getting the Right Balance: More Decentralised Marketing in Europe?
As marketers look to achieve more with less by leveraging corporate
branding, centrally defined offers, and global communications campaigns,
it is easy to forget that each country in Europe has a very different
economic profile, culture, and buying style—and that each needs
an appropriate ‘local’ marketing approach. Striking the right
balance between global, regional, subregional, and country-based marketing
activities has never been easy, and last year we saw a number of companies
publicly re-evaluate their go-to-market approaches in Europe.
In fact, a cyclical see-saw between centralisation and decentralisation
seems to be a pattern for many companies. Today, the balance is tipping
in favour of greater decentralisation, with companies such as IBM stripping
away regional marketing activities in favour of a more local focus. (U.S.-owned
companies such as IBM have traditionally been the most centralised; their
European and Japanese peers have always had a more locally driven approach
to marketing—and to business in general.)
But it is not just the shift to more country-based marketing that’s
interesting, it is also the activities that local marketers are being
asked to execute. Traditionally, country marketers have picked up the
more ‘tactical’ end of the marketing spectrum (golf/lunch/dinner,
anyone?). But this is now changing. Many of the tactical activities,
including market research and specialist communications activities, are
being pulled into central shared service teams. At the same time, some
of the more strategic activities, such as market segmentation and targeting,
portfolio management, and offer development, are being driven and shaped
at a local level.
In some cases, country-based marketers are acting as coaches to local
business managers, facilitating the strategy process in the country and,
at the same time, leading matrixed teams for international programmes
such as thought leadership and reference management. The shift to more
local decision making is perhaps a natural consequence of what has happened
in the world in recent years—and is following other emergent management
thinking such as distributed leadership. But it does put a strain on
local marketers; I’ve seen many of them, and they’re not
happy!
You see, the demand for those golf/lunch/dinner arrangements doesn’t
just go away. But for most country-based marketers, that demand now represents
a distraction from the really interesting work they need to do around
identifying and prioritising local market opportunities and designing
content-rich programmes to go after them. Some marketers have responded
by outsourcing much of the tactical work (either to an internal shared
service or an external agency), while others have developed internal
metrics systems to evaluate whether the golf/lunch/dinner activities
are worth doing at all.
As local marketers struggle to balance their tactical and strategic
activities, companies are stepping up to the plate by providing corporate
templates, common processes, and shared systems for strategy development
and marketing planning at a local level. Many companies make Web-based
training available to their local marketers, and some have even established
a ‘marketing academy’ that provides a framework for continuous
professional development. Underpinning all of this is work with HR to
define the competencies that country-based marketers now need and to
build job and employee specifications to recruit and develop them.
We won’t know for quite some time whether the shift to more decentralised
marketing we are now seeing is just another swing of the see-saw or a
more fundamental change. In the meantime, please join us for a discussion
of other key marketing trends and priorities during an ITSMA Web Briefing
on January 24: http://www.itsma.com/Events/event_desc/06OB01N01.htm.
About ITSMA
ITSMA specializes in helping companies market and sell services and solutions more effectively. As a membership organization, we provide research, consulting, and training to the world's leading technology, communications, and professional services providers to generate increased demand, strengthen customer relationships, and improve brand differentiation. ITSMA is based near Boston, and has offices in London and Tokyo. Learn more at www.itsma.com.