This month, Jim Stengel officially retired as Chief Marketing Officer of Procter & Gamble. As the leader of the largest spending marketing organization in the world, Jim was often named the most influential marketer and brand-builder in the industry. Last week, he gave his final speech as P&G’s Chief Marketing Officer, speaking at the Association of National Advertisers Masters of Marketing conference in Orlando, FL.
Here is Mediapost’s summary of Stengel’s five lessons of brand building:
Lesson One: Put people at the center of all you do.
Treat your people the way you would want your customers treated. “We too often forget brands are people. It’s the collective intent of people behind them,” he says.
“I have learned in my career that the most important legacy is the impact you will have with the people you work with. We all have rough months, rough years, which blend together, but what you will remember is relationships and people.”
Lesson Two: Engage your heart and mind in everything you do.
Says Stengel, “We need balance. Too often as an industry we approach everything with head, not heart. We often talk within P&G of personal relationship as a metaphor for marketing. How many of us internalize that and apply it to how we approach business and customers?”
“If we thought about everything we do in marketing, if they all tried to emanate from this idea of great relationship we would do and measure things differently.”
He offered brands other than P&G’s as examples: Apple, Southwest Airlines, online shoe company Zappos, and Amazon.com. “What we find with the strongest brands is they have strength and competitive advantage in emotional areas that drive brand,” he said.
Lesson Three: Results.
“In our industry we tend to make things complicated, focusing on activities that don’t drive brand,” said Stengel. “Why are CMO tenures short? Look at organization designs across companies; they are all over the place Too much spend goes to short term and tactical that doesn’t build loyalty and relationship with consumers.”
He asked, rhetorically, why many CEO’s and CFO’s don’t value marketing. “Because too much we focus on a bustle of activities, not the few things that drive growth of brand. Sales are important but if you don’t look at other measures of brand health, you are being short sighted.”
Lesson Four: Creativity is about solving problems.
We too often have the wrong discussion with agencies. We talk fees, etc, short term stuff, not how to come together about how to create a powerful brand.”
Lesson Five: Have a purpose.
“I am devoting the next chapter of my life to this mission. He cautioned that, by purpose, he doesn’t mean cause-based marketing, but an inspirational, motivational reason for being. “For example, Nike’s purpose is to build self esteem, to be an inspiration for athletes around the world.” The purpose of Pepperidge Farm Goldfish? “To bring optimism to children. Old Spice? To help guys navigate the seas of manhood,” he said.