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21st Century Marketing

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Presentation I did recently when applying for a job at Clear Thought Consulting. …

Presentation I did recently when applying for a job at Clear Thought Consulting.
One of the restraint was that the recipient should digest it in no more than 20 minutes.

Published in: Business, News & Politics

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  • 1. 21st Century Marketing What's New? By Nathalie Derain N. Derain – Clear Thought Consulting job application September 2009
  • 2. Table of Content 1. Context: evolution of marketing from the Industrial Revolution to the 21st century. ■ Marketing chronology ■ Marketing as a discipline today 2. New opportunities and challenges for 21st century marketing. ■ Trend towards globalisation ■ 21st century consumers: informed and unstable ■ Internet: a powerful tool for marketers 3. From new marketing practices to enhanced marketing models ■ Marketing mix: from the traditional 4Ps to the 7Ps ■ Integration of online channels: clicks & mortar model 4. Conclusion: 21st century marketing – what’s new? 5. Photo credits N. Derain – Clear Thought Consulting job application September 2009
  • 3. Context: evolution of marketing from the Industrial Revolution to the 21st century N. Derain – Clear Thought Consulting job application September 2009
  • 4. Marketing Chronology Production orientation: ■ Industrial Revolution ■ Focus on efficient production and distribution ■ People would buy as long as they could afford it Sales orientation: ■ 1900s to 1950s ■ Increased competition; focus on advertising, branding and communication ■ Objective is to persuade potential consumers Marketing orientation: ■ From the 1960s onwards ■ Saturated markets and intense competition ■ Marketing has become a strategic thinking process N. Derain – Clear Thought Consulting job application September 2009
  • 5. Marketing as a Discipline Today ■ Marketing has become an outward-looking discipline: strategies and actions depends on the company's external environment. ■ Evolutions in any of those components will affect the company’s marketing strategy. N. Derain – Clear Thought Consulting job application September 2009 Socio-cultural environment Politico-legal environment Technological environment Physical environment Economic environment Demographic environment COMPANY
  • 6. ■ Marketing today needs to be fully integrated in the business and cannot be separated from the other functions, i.e. all internal departments, from production to sales, via finance and customer service, need the input of the marketing team to know what to do and how to do it. Why? Because marketers analyze the market and the company’s environment and therefore know how their business can fit into that. ■ Marketing is no static discipline and will continue to evolve over time. We have experienced some major changes in the economic, technological and socio-cultural environment since the late 20th century, leading to new marketing opportunities and challenges. Marketing as a Discipline Today N. Derain – Clear Thought Consulting job application September 2009
  • 7. Major changes in the macro- environment create new opportunities and challenges for 21st century marketing N. Derain – Clear Thought Consulting job application September 2009
  • 8. Trend Towards Globalisation ■ Globalisation is an ongoing process where regional economies and societies become increasingly integrated. The trend is still relatively recent and will bring new developments for marketers in the 21st century. ■ Opportunities: ■ An increased number of potential markets. ■ International regulations make it easier to penetrate some markets (free trade areas). ■ Opportunity to develop and implement cost-effective global marketing strategies. ■ Threat: ■ More substitute products and new entrants. N. Derain – Clear Thought Consulting job application September 2009
  • 9. ■ Globalisation, however, does not mean that all markets are now standardized. Marketers should be aware of and understand the cultural, social, economic, political specificities of the market they want to get into when planning their strategy. ■ Even though to some extent regional differences tend to disappear, there will always be social and cultural issues to consider carefully, such as: ■ religion ■ language ■ historical background ■ beliefs and values… Global versus Local N. Derain – Clear Thought Consulting job application September 2009
  • 10. An Increasingly Competitive Market ■ Globalisation has not only created new market opportunities, it has also brought new competitors. Many businesses today compete with national and international companies of all sizes. In this environment only the best businesses will survive. ■ Implications for marketers: ■ Need to make a greater effort to differentiate themselves from the competition. ■ Need to focus on innovation to avoid being a follower. ■ Smaller companies should try and find niche markets where they will be able to become leaders. N. Derain – Clear Thought Consulting job application September 2009
  • 11. 21st Century Consumers: Informed & Unstable ■ Consumers of the 21st century are different than a few decades ago and have developed new characteristics: ■ Brand loyalty is decreasing; consumers switch more easily from one brand to the other. ■ Constant need for novelty; people always want the latest trendy technology/product available on the market. ■ They are more and more interested in environmental and ethical issues, which is reflected in their consumption patterns. ■ People are not as sensible to advertising as they used to be or in a different way. N. Derain – Clear Thought Consulting job application September 2009
  • 12. ■ Implications for marketers: ■ Strong branding is essential to avoid brand switching and requires a lot of resources and efforts in communications. ■ Companies which settle for being a follower on the market won’t survive long. Constant innovation also means having an excellent understanding of the market. ■ The organic and fairtrade markets are fast growing and profitable, particularly good to invest in. ■ The traditional forms of advertising (e.g. TV and radio ads) are not necessarily the best options anymore, especially given the current internet penetration rates in developed countries. 21st Century Consumers: Informed & Unstable N. Derain – Clear Thought Consulting job application September 2009
  • 13. Internet: A Powerful Tool ■ The latest main technological evolution, which has greatly affected marketing activities, is of course the internet, which you can now access almost everywhere, on your mobile phone/laptop/netbook. Although it was created a couple of decades ago, it’s now developed into a powerful and essential tool for marketers. ■ What’s new? ■ Constant flow of information ■ Consumers have access to more information more easily ■ Cheap communication and promotion tool: social networks, voting sites, PPC, affialiate programmes, listings, forums, SEO, bookmarking... N. Derain – Clear Thought Consulting job application September 2009
  • 14. ■ Implications for marketers: ■ Understand and be able to use this new communication tool efficiently: it is cheap but it can be time consuming. ■ Be able to control the company’s image and brand reputation. ■ Be able to target the right audience, which is sometimes not as easy as with more traditional communication tools. Internet: A Powerful Tool N. Derain – Clear Thought Consulting job application September 2009
  • 15. From new marketing practices to enhanced marketing models N. Derain – Clear Thought Consulting job application September 2009
  • 16. Marketing Mix: From the Traditional 4Ps to the 7Ps ■ E.J. McCarthy introduced the 4Ps of the marketing mix in 1960. The concept has then been widely used by marketers who used it as a tool to define their marketing strategy, but it was primarily directed to tangible products. ■ In the 1980s, Booms and Bitner have added 3 additional Ps to the traditional marketing mix. The 7Ps model is more suitable for service industries and will be therefore increasingly relevant during the 21st century. N. Derain – Clear Thought Consulting job application September 2009
  • 17. Integration of Online Channels: Clicks-and-Mortar Model ■ In a click-and-mortar business model, a company integrates both online (clicks) and offline (mortar) presences. ■ It is mainly relevant to large retailers, which have recently integrated e-commerce with existing physical channels, thus benefiting from common brand equity, customer base, supplier network and core competences (vs. pure internet firms which don’t have brick and mortar costs but spend more time and money building their brand and acquiring customers). ■ This business model can be successful but particular attention must be paid to the coordination of both channels, so that they are complimentary and not competing against each other. N. Derain – Clear Thought Consulting job application September 2009
  • 18. Conclusion: 21st Century Marketing – What’s New? ■ For the last few years, we have been experiencing deep changes which will have long-term consequences. ■ So, what’s new? ■ a global market made of very different yet increasingly standardised markets ■ increasingly fierce competition ■ informed, unstable and demanding consumers ■ new technologies and new communication channels ■ Marketing is now a specialist discipline that every business needs to embrace. Some are still struggling to set up and implement a great marketing strategy. That’s when people like Clear Thought Consulting can help them! N. Derain – Clear Thought Consulting job application September 2009
  • 19. Photo Credits ▪ " Old cars " by freeparking - http://www.flickr.com/photos/freeparking/502609973/ ▪ " Wanderer " by Davydutchy - http://www.flickr.com/photos/42057291@N00/125318388/ ▪ " Hello world " by Isza - http://www.flickr.com/photos/lsza/3729636718/ ▪ " Networking " by ricki888c - http://www.flickr.com/photos/50717872@N00/2765451633/ ▪ " 4 " by richardscalza - http://www.flickr.com/photos/scalza/2524403302/ ▪ " Old vs new " by rolandsmart - http://www.flickr.com/photos/rolandsmart/3333016657/ ▪ " Marketing mix diagram " by rolandsmart - http://www.flickr.com/photos/rolandsmart/3424388777/ N. Derain – Clear Thought Consulting job application September 2009