Lafley, P&G’s CEO started talking about that five years ago, there were head nods: We’ve done that for 155 years. It's an enviable position, but uneasy lies the head that wears an ad king's crown.At the Growth Summit last week in Atlanta one of the speakers was Jim Stengel, former Global Marketing Officer of Procter & Gamble and author of.Jim Stengel: It’s a real centering concept for everyone in marketing and the partners, internally and externally, we work with. He is Procter & Gamble's global marketing officer, and thus commands the world's largest ad budget - about $6.7 billion.He also has significant experience representing Chinese companies in litigation in U.S. James Stengel represents clients in large, complex and multi-party class action litigation, including significant actions involving the chemical, building products and medical device industries. Opportunity is exploding in developing economies, but marketing to billions of low-income consumers - rather than millions of affluent ones - is a new skill for Procter & Gamble, which was founded in Cincinnati in 1837.James Stengel. Product innovation happens faster than ever. By Jim Stengel, former Global Marketing Officer at Procter & Gamble and a.The Digital Age is revolutionizing the way consumers use media, though no one yet knows what the new model will be or if it will last longer than an eye-blink. Marketing Hall of Fame inductee Jim Stengel launched his book Unleashing the.Edited excerpts follow.COLVIN: What's the best marketing you've seen lately?STENGEL: Outside P&G, I think Harry Potter. He has been P&G's chief marketer for six years the average tenure of a chief marketing officer is less than two, according to recruiting firm Spencer Stuart.Before an invited audience at the Time & Life Building in Manhattan, Stengel sat down recently with Fortune's Geoff Colvin to talk about consumer power, the value of brands, the decline of mass media and who needs chief marketing officers. So far, Stengel has met the challenge. Jim has also significantly contributed to the Cannes Lions Young Lions program.The stakes are high for P&G ( PG, Fortune 500), which has built its $200 billion market cap in large part on superior marketing.
![]() I mean, there were chatrooms that began an hour after the book came out. They didn't look at anything in the media in case they would see the ending. My wife's and daughter's lives just stopped when the book came out until they finished it. They've also come out with the stain stick, which we get tremendous letters about. They've done a lot of work to get more people to wash in cold water, which is terrific for energy savings. They have developed a positioning, as well as products and packages that have surprised and delighted.There's the new compact size, which is great for the environment, great for our retailers, and great for the consumer. They have gotten close to their consumer. What the team has done to energize this brand has been just phenomenal. They want to be understood, they want to be respected, they want to be listened to. Consumers is that they want to trust something. What is the most important thing you are seeing?The biggest thing going on with U.S. Epson printer icc profileCan any of that possibly be good for P&G?I think it's great for us. Businesses and brands that are breaking records are those that inspire trust and affection and loyalty by being authentic, by not being arrogant, and by being empathetic to those they serve.Technology is giving consumers more power than they've ever had - more information, more choice, more control. We can never be complacent about that.This is an enormous phenomenon, enabled by technology in many ways. They care about the values of a brand and the values of a company. People really do care what's behind the brand, what's behind the business. It's trust in the largest sense of the word. On most of our brands, it's a relatively small group. One such principle is to understand the consumers we're trying to serve. What we have now are principles by which we approach marketing. Now that mass media is losing its dominance, what's the new model?I don't think there is one. The end of the era of mass marketing is a very positive thing for our company, for our brands and for the industry.Procter & Gamble is a $76 billion business, built by selling giant brands through mass media. What's happening in the media world is enabling us to make marketing that's much more creative and much more customized for a certain consumer group or a certain brand. She was tremendously proud of her children, tremendously proud of her home. Can you give me an example of what that has done for you?I had a wonderful field visit in Latin America on a recent trip - I went into the home of a woman who had very little money. We really try to get at what we can do through our brands to make a difference in people's lives."Immersion research" means you spend time with consumers in their homes or other settings, rather than in focus groups. We do much more immersion research, much more anthropological research. Our research has changed a lot. It's about understanding these consumers in a complete way. What is the proportion now, and what will it be in five years?It continues to go down, but you have to realize we are a global company. When I was in China the last time, I wanted to visit a very poor consumer and a very wealthy one, just to look at the differences in how they thought about brands, how they thought about media, what was important in their life.Two years ago a P&G executive estimated that the company was spending 85% of its marketing budget on 30-second television spots. We all go out and really spend time with consumers, especially those who are not like us. It was important to understand what role our brands played in her life.At P&G, we all do that kind of thing, up through A.G. Where do i download gears of war 4 pcWe are spending a lot more on interactive and a lot more on mobile as that makes its way around the world. Many of those countries have only a few stations, so the 30-second ad is very important in many countries - including the U.S.You are going to see us more and more fragmented in our spending. Paid advertising is still effective in those markets, and our challenge is to make our advertising engaging, interesting, persuasive, fun - everything we should be doing. In many of them television is the primary form of entertainment it's on five or six hours a day. The marketing world, enabled by technology, is in some ways very scalable. If it explodes and becomes a phenomenon, then we are there.We have to leverage what has worked before and always be thinking about how we get some knowledge going forward. Can sponsoring this possibly have enough impact to make the time and trouble worthwhile?The program you just referred to is an experiment to see what will happen. That is what Harry Potter proved.Not long ago, a social-networking Web site launched a video feature called "Kate Modern," a British version of "Lonely Girl 15." The sponsors included such P&G brands as Gillette, Tampax and Pantene. If the content is good, consumers will spend an awful lot of time with media. The interesting news in all of this is that consumers are spending more time with media than ever. ![]() We don't accept that there are any commodity categories. I hate it when someone says they're in a commodity category. Is that a problem for P&G?No, it's not a problem. So I think it's going to be a game changer, and it's going to have a big impact on our business model.It is very difficult to maintain a tangible product advantage for any length of time. People will have more of their media with them. We are not in any commodity categories.If you go back at Procter & Gamble, and in a lot of the industry, we often thought of our brands in terms of functional benefits. That is bad marketing and an excuse. So, no, I think that is a cop-out. We have developed tremendous equities, tremendous loyalties from our consumers. It is about helping women look better and feel better as they age. That's because Olay is not just about being a pink fluid that moisturizes. Or look at all the different areas we are in at Olay. You know, our baby-care business didn't start growing aggressively until we changed Pampers from being about dryness to being about helping Mom with her baby's development.
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