Marketing has undergone many phases of change. Four phases since 1900, to be exact, according to Erik Newton (LinkedIn | Twitter). Erik is the Vice President of Growth Marketing at BrightEdge. Previously, he has held senior marketing roles at leading media and entertainment companies including Netflix, TiVo, and Vidcie.
On this episode of Marketing Trends, Erik walks us through the phases of marketing as he sees them and describes what we should expect to see in the next couple years during the rise of "Marketing 5.0". Breaking Down Silos - (7:00) - In the early days of Netflix, there were traditional marketing and advertising channels with dedicated channel managers. It wasn't a growth hacking environment. - "Netflix was about data accuracy. Everyone was a quant jock, hired to come in and just look really hard at the numbers." - Erik Newton - There was a silo problem that eventually made Netflix ineffective, so it had to evolve. - "Kicking down walls is everything that a CEO wants." - Erik Newton
Marketing Phases - (14:30) - "Understanding where we've been helps us understand where we're going. It helps us understand how [marketing] is evolving and what we need to do to be at the cutting edge." - Erik Newton - Phase 1.0 (1900-1995): the big brand/big advertising agency era, era of consumer goods - Phase 2.0 (1995-2010): the rise of digital channels, digital distribution, and tracking - Phase 3.0 (2010-2015): the debut of social, emphasis on community building, inbound marketing, and user-generated content - Phase 4.0 (2015- ): "the growth era", focus on the journey, intentional viral distribution based on the product itself - "In Phases 1 and 2, we created demand. In Phases 3 and 4, we work to understand the demand." - Erik Newton
The Shift to Phase 5.0 - (31:00) - Erik has observed that big budgets, big capital, and big supply chains are down. Any kind of silos are bad, head counts of marketing teams are doing down, and single function manager are on the way out. - On the other hand, APIs are on the way up. The marketing stack is the key pillar of growth. The cloud, agile teams, multi-function managers, and direct engagement with the product are growing in importance. - "If you're a CMO or a VP and your job isn't defined to give you involvement in the product, you're not well positioned for [phases] 4.0 or 5.0." - Erik Newton - Erik also emphasizes the importance for marketers to use empathy to understand and establish a direct relationship with the customer. - "Empathy is a requirement. Who in the company is better positioned to exercise empathy than the marketing group?" - Erik Newton
What Is 5.0 Going to Look Like? - (40:00) - "5.0 will be owning the customer experience end-to-end." - Erik Newton - Erik describes "flipping the funnel", where customers go out and sell for you, so you no longer need a big advertising budget. - Things that are required in growth are what the CMO always should have been and what the CMO will be, from Erik's perspective. - It might be difficult to institutionalize a company culture that allows the marketing group to strongly influence the engineering and sales groups. This may require elevating marketing even further to understand things that other managers haven't figured out. - "The best C-level executives are bringing insights that the other business functions didn't even know they were tracking." - Ian Faison
Pardot Lightning Round - (1:15:00) - Favorite app:B-hyve - Favorite vacation spot: Puerto Vallerta - Favorite book: Hacking Growth by Sean Ellis - Most excited about for the future of marketing: Empathy. It's a human intelligence that's going to be the last thing that artificial intelligence understands. Mentioned by Erik: Marketing: A Love Story by Bernadette Jiwa - Best advice for a first time head of marketing/head of growth: Transitioning from being managed to managing up. Your exercise of corporate maturity and your ability to control your boss will define your future. This is the topic of his book: Hack the Corporate Fast Track by Erik Newton.
Marketing Trends is brought to you by our friends at Salesforce Pardot, B2B marketing automation on the world’s #1 CRM. Are you ready to take your B2B marketing to new heights? With Pardot, marketers can find and nurture leads, close more deals, and maximize ROI. Learn more by heading towww.pardot.com/podcast