The move south

The North American consolidation of marketing departments by companies, primarily those in the packaged goods sector, has opened avenues of opportunity for Canadian marketers.

Those who have moved to the u.s. either as part of a consolidation or as a way of gaining experience have found themselves at the hub of the wheel.

They have gained exposure to other subsidiaries, more of the company’s businesses and issues and have a greater potential to move not only within the u.s. but internationally.

On the other hand, the consolidation trend is causing concern to many in Canada’s marketing community.

Some fear a brain drain as too many senior jobs move south of the border and that growth beyond a junior marketing position will become impossible in Canada.

Historically, Canadian companies have been able to demonstrate there is a difference between the Canadian and u.s. consumer to justify the need for separate marketing departments.

But as corporations continue to strive to maximize profits, or even deliver a profit, they are sacrificing market share for the cost efficiencies of a North American strategy.

They have realized they cannot afford to go after niche markets and, therefore, are prepared to settle for 75% of the market and, ultimately, end up making more money because of economies of scale.

Marketers who have worked in Canada and the u.s. have varied opinions about the opportunities in Canada.

Chris August of S.C. Johnson says with the exception of the companies that have shut down their marketing operations, he feels the same opportunities are available in Canada now as in the past.

‘There’s always been a prevalence of head offices in the u.s., so to really grow to an executive level position in a company, not the subsidiary, you always had to come down to the u.s.,’ August says.

‘That has not changed,’ he says.

‘I think there’s greater movement of people to the u.s. because there’s more communication between Canada and the u.s. with free trade.

‘There’s more exposure to Canadian marketers and that visibility is increasing the amount of flow.’

August was director of marketing for S.C. Johnson Canada when he moved to Racine, Wisc. as marketing manager two years ago.

He made the move to grow within the company.

He does not rule out returning to Canada, but would like the next step to be an international one.

According to August, doors have now been opened for Canadian marketers that were previously hard to get access to without high level sponsorship.

‘I think the greater access Canadians have to the u.s. is a win-win on both sides,’ he says.

‘We’ve found the training that Canadians get is different than u.s. marketers get. It’s broader, and they tend to have more responsibility earlier on in their career.’

Karen Maley agrees Canadian marketers are valued in the u.s.

Maley is based in Modesto, Calif. with E&J Gallo Winery as director of marketing and region manager for Asia-Pacific in the International Division.

She was in brand management with Procter & Gamble when she moved to the Gallo office in Toronto more than four years ago as marketing manager.

She moved to the u.s. 3 1/2 years ago and continued to be responsible for Canada for her first year there.

‘I actively recruit in Canada,’ Maley says.

‘I find people are tougher and really do what it takes,’ she says. ‘People like the attitude and the experience base.

Forty per cent of Maley’s division is Canadian and there is currently another position open because the region manager for Canada was just transferred to Europe.

When that spot is filled, Gallo will have a marketing retail manager responsible for Canada based in California while the company’s Canadian-based marketers consist of a junior position in the b.c. sales office.

Maley believes Canada is an excellent training ground for world class marketers but there is more opportunity in the u.s.

‘A big thing I’ve noticed in Canada is after you’ve worked in marketing for five to 10 years, your opportunities for senior positions are much fewer than in the u.s.,’ she says.

‘Opportunities here are so diverse, even within one industry. For example, if I’m going into packaged goods, I have 10 to 20 companies to choose from rather than two to three good ones in Canada.’

Maley says one of the reasons for that is that jobs are spread right across the u.s. unlike in Canada where they are centred in the Toronto area.

Closer to Canada, human resources consultants serving the marketing community also have divergent views of the opportunities.

Stefan Danis, managing partner of Mandrake Management Consultants of Toronto, believes without a doubt that Canadian marketers are world class.

Danis says the Canadian work ethic, training and attitude makes for a healthy combination early on in a marketing career, but adds in more senior positions Canadians falter because they are not as aggressive as Americans.

‘As we’re competing globally for jobs, because Canadians are reserved, they will have to demand a promotion or posting abroad without feeling Canadian guilt,’ he says.

Canadians will also have to think of uprooting themselves.

‘Canadian marketers seem to congregate in Toronto and then move back to where they’re from, while for Americans, the world is their oyster,’ Danis says.

Danis says he has also found that while Canadians are moving south of the border, more Americans are moving to Canada for experience and training.

He says this is because Canada is believed to be a good testing ground, but, in turn, this means fewer jobs for Canadians in Canada.

‘I don’t want to be the apostle of doom, but the way we look at it, Canada one day will be a distribution centre so we’ll need salespeople, not marketing people,’ Danis says.

In five to 10 years, we think our business in the marketing sector will have shrunk by one-half to two-thirds, he says.

What Danis is seeing today is a growth in trade marketing, a hybrid of marketing and sales and he says a lot of companies are hiring in this area.

‘The idea is to get closer to the customer, which is the distributor, and get to know your retailer,’ he says.

‘Marketing plans are set up for them. Large buying groups are established.

‘That’s where the marketing growth is, moving toward more technical and customer-based work, rather than consumer-based.’

Richard Foster, president of Toronto recruitment firm The Richard Foster Company, says he does not see people flocking to the u.s. and that generally the marketing environment is still positive in Canada.

‘From a scope point of view, there’s a bigger market in the u.s.,’ Foster says. ‘There always has been and always will be.

‘I think we have good talent here,’ he says. ‘Some of it moves to the u.s., some of it moves to Europe.

‘But that’s part of an international network of marketing companies. It happens in advertising as well.

‘We’re just part of a North American market that’s still trying to find itself.

‘I think marketers are always going to bob and weave and shift based on how they read the marketplace.

‘I don’t think you can say this is what it’s going to take and that’s the formula,’ Foster says. ‘This works for now, but may be different in a year.’