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Rethinking Marketing To Compete in the Interlinked Economy <ul><li>Philip Kotler, Ph.D </li></ul><ul><li>Kellogg School of...
Your Action Agenda <ul><li>Improve Marketing’s Role in Your Business </li></ul><ul><li>Find New Market Opportunities. </li...
1. Improving Marketing’s Role and Relationships in Your Company
 
Think About This <ul><li>Easy times are the enemy; they put us to sleep.  </li></ul><ul><li>Adversity is our friend.  It w...
And This. “ When the storm comes,  some build walls,  the others build windmills.” Old Chinese proverb
Consumers Will Spend Less <ul><li>Consumers will move toward favoring lower priced products and brands.  They will replace...
Therefore Business Will Spend Less <ul><li>Businesses will reduce production and order fewer goods from their suppliers.  ...
What Should You Do? <ul><li>DON’T DO NOTHING </li></ul><ul><li>DON’T PANIC! </li></ul><ul><li>AND DON’T MAKE ACROSS-THE-BO...
HERE IS HOW P&G ADJUSTED <ul><li>Consider how P&G responded when they decided in a down period that they had cut marketing...
Here Are Additional Adjustments <ul><li>Drop uneconomic customer segments </li></ul><ul><li>Drop uneconomic customers with...
Answer These Questions <ul><li>Can your company lower the costs of paper, photography, and other production inputs by nego...
Respond Strategically <ul><li>Track changes in customer wants and values. </li></ul><ul><li>Examine individual competitors...
Latent Opportunities Latent Vulnerabilities Chaos Strategy Selection Chaos Strategy Response 1 Strategy Response 2 Strateg...
Corporate Level Branding  
Building a Corporate Reputation <ul><li>Are there any companies that you love or you would miss as a buyer if they disappe...
Characteristics of Firms of Endearment <ul><li>They align the interests of all stakeholder groups  </li></ul><ul><li>Their...
Four CEO  Views of Marketing  <ul><li>1P  CEO </li></ul><ul><li>4P  CEO </li></ul><ul><li>STP  CEO </li></ul><ul><li>ME  C...
Stages in the Development  of the Marketing Discipline <ul><li>1.   Selling stage .  </li></ul><ul><li>4P stage .  </li></...
AMA Definition of Marketing <ul><li>“ Marketing is an  organizational function  and a  set of processes  for  creating, co...
Marketing Objective, Process,  and Philosophy <ul><li>CCDVTP </li></ul><ul><li>R -> STP -> MM -> I -> C </li></ul><ul><li>...
Marketing’s Role <ul><li>In world class organisations where the customer is at the centre of the business model, marketing...
What is a CMO Expected to Do? <ul><li>Represent the voice of the customer (VOC) to others in the company and champion the ...
Sales Precedes Marketing <ul><li>In the beginning there was sales. </li></ul><ul><li>Marketing appeared later to help sale...
Identify the Existing Level of Relationship Undefined Defined Aligned
The Sales Funnel Prospecting Qualifying Defining Needs Contract Negotiation Developing Solutions Proposal Preparation/ Pre...
The Marketing and Sales Funnel Purchase Intention Customer Awareness Brand Awareness Brand Consider- ation Brand Preferenc...
Revise Your Sales Approach
Drop the Old Sales Model Source: Sandro Magaldi,  Sales 3.0
Be a Value Merchant, Not a Salesman <ul><li>Move from  features  to  benefits  to the  worth  of the offering. </li></ul><...
2. Find New Market Opportunities <ul><li>“ A business has two—and only two—basic functions:  marketing  and  innovation.  ...
The Issue <ul><li>Innovate or stagnate. </li></ul><ul><li>But most innovations fail. </li></ul><ul><ul><li>Consumer packag...
Opportunity-Driven Companies During the Downturn <ul><li>Wal-Mart </li></ul><ul><li>McDonalds </li></ul><ul><li>TJ Maxx of...
Three Innovation Models <ul><li>Whirlpool Corporation  launched an effort in 2000 to stimulate greater innovation.  The co...
Six Ways to Get Ideas  From Customers <ul><li>Observe how your customers are using your product. </li></ul><ul><li>Ask you...
Source: Blue Ocean Strategy
Reconstruct Market Boundaries  Through a  Six Paths Framework  <ul><ul><li>1. Look across alternative industries </li></ul...
Lateral Marketing Process The case of Cereal Bars into Cereals for breakfast market Cereal varieties New category Vertical...
Baby dolls market Doll varieties New category Lateral Marketing Process Vertical Marketing Process To feel as... = Teenage...
Hotel: Lateral Marketing Thinking <ul><li>Substitution : a free hotel room when the flight is cancelled. </li></ul><ul><li...
3. Find New Ways to Communicate <ul><li>One executive said that he needs to continue spending “big bucks” on advertising b...
<ul><li>“If advertisers spent the same amount of money on improving their products as they do on advertising, they wouldn’...
The Basic Question and Challenge <ul><li>TV ads have been the most effective way to build a brand, especially if there is ...
Make Use of the New Media <ul><li>Traditional Media </li></ul><ul><li>Drum beats and smoke signals </li></ul><ul><li>Face-...
Your Ads Are Small Compared to the Influence of Consumer-Generated Media (CGM) <ul><li>Direct customer feedback to company...
Your Job is to Create Buzz <ul><li>Mavens : they are an expert on a topic.  You listen to them closely. Their motivation i...
4. Use New Marketing Technology  and Metrics <ul><li>Direct marketing and predictive analytics </li></ul><ul><li>Marketing...
Some Metrics That Count <ul><li>Market share </li></ul><ul><li>Customer satisfaction </li></ul><ul><li>Number of promoters...
Marketing Automation Plan Manage Execute Measure <ul><li>Marketing </li></ul><ul><li>investment  </li></ul><ul><li>managem...
 
The power to deliver profit growth… P&G Soars Due To Marketing Efforts  Brandweek,  October 31, 2006 By Constantine von Ho...
Your Take-Aways <ul><li>Organize your marketing more holistically and strategically and relate better to sales and to new ...
“ Within five years. If you’re in the same business you are in now, you’re going to be out of business.”
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Philip Kotler Marketing To Compete

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Seminar given by Phillip Kotler on April 2009

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  • Transcript of "Philip Kotler Marketing To Compete"

    1. 1. Rethinking Marketing To Compete in the Interlinked Economy <ul><li>Philip Kotler, Ph.D </li></ul><ul><li>Kellogg School of Management </li></ul><ul><li>Northwestern University </li></ul><ul><li>San Jose, Costa Rica </li></ul><ul><li>April 22, 2009 </li></ul>www.aportasolutions.com
    2. 2. Your Action Agenda <ul><li>Improve Marketing’s Role in Your Business </li></ul><ul><li>Find New Market Opportunities. </li></ul><ul><li>Find New Ways to Communicate. </li></ul><ul><li>Use New Technologies and Metrics. </li></ul>
    3. 3. 1. Improving Marketing’s Role and Relationships in Your Company
    4. 5. Think About This <ul><li>Easy times are the enemy; they put us to sleep. </li></ul><ul><li>Adversity is our friend. It wakes us up. </li></ul><ul><li>Dalai Lama, 2008 </li></ul>
    5. 6. And This. “ When the storm comes, some build walls, the others build windmills.” Old Chinese proverb
    6. 7. Consumers Will Spend Less <ul><li>Consumers will move toward favoring lower priced products and brands. They will replace buying national brands with store brands and even generic brands. </li></ul><ul><li>Consumers will reduce or postpone discretionary purchases such as autos, furniture, major appliances, and expensive vacations. </li></ul><ul><li>Consumers facing higher fuel costs will drive less and buy more from suppliers nearer to their work or home. They will rely more on their home for eating and entertainment. </li></ul>
    7. 8. Therefore Business Will Spend Less <ul><li>Businesses will reduce production and order fewer goods from their suppliers. </li></ul><ul><li>Businesses will cut their rate of capital investment. </li></ul><ul><li>Businesses will cut their marketing budgets substantially. </li></ul><ul><li>Businesses will postpone new product development and put on hold major new projects. </li></ul>
    8. 9. What Should You Do? <ul><li>DON’T DO NOTHING </li></ul><ul><li>DON’T PANIC! </li></ul><ul><li>AND DON’T MAKE ACROSS-THE-BOARD CUTS!!! </li></ul>
    9. 10. HERE IS HOW P&G ADJUSTED <ul><li>Consider how P&G responded when they decided in a down period that they had cut marketing costs from 25% to 20% of sales to remain competitive. They took the following steps: </li></ul><ul><ul><li>They standardized more their product formulations, packaging and advertising around the world. </li></ul></ul><ul><ul><li>They reduced the number of sizes and flavors </li></ul></ul><ul><ul><li>They dropped or sold some weaker brands </li></ul></ul><ul><ul><li>They launched fewer but more promising brands </li></ul></ul>
    10. 11. Here Are Additional Adjustments <ul><li>Drop uneconomic customer segments </li></ul><ul><li>Drop uneconomic customers within a segment </li></ul><ul><li>Drop uneconomic geographical locations </li></ul><ul><li>Drop uneconomic products </li></ul><ul><li>Lower prices or promote lower cost brands </li></ul><ul><li>Reduce or discontinue ads and promotions that aren’t working </li></ul>
    11. 12. Answer These Questions <ul><li>Can your company lower the costs of paper, photography, and other production inputs by negotiating for lower prices or switching to lower cost suppliers? </li></ul><ul><li>Can your company switch to lower cost transportation carriers? </li></ul><ul><li>Can your company close down sales offices if they are not getting enough use? </li></ul><ul><li>Can your company put your advertising agency on pay-for-performance ? </li></ul><ul><li>Can your company replace higher cost communication channels with lower cost channels? </li></ul><ul><li>Can your company achieve more impact by shifting money for 30-second commercials into public relations or new digital media? </li></ul><ul><li>Can your company drop some product features or services for which customers don’t seem to care? </li></ul><ul><li>Can your company hold your marketing staff meetings and customer conferences in lower cost locations? </li></ul>
    12. 13. Respond Strategically <ul><li>Track changes in customer wants and values. </li></ul><ul><li>Examine individual competitors’ weaknesses. </li></ul><ul><li>Protect your core market. </li></ul><ul><li>Decide in which markets to build market share. </li></ul><ul><li>Offer lower prices or add value to your offering. </li></ul><ul><li>Don’t let your values or long term goals slip. </li></ul><ul><li>Think Opportunity! </li></ul><ul><li>Source: Philip Kotler and John A. Caslione, Chaotics: The Business of Managing and Marketing in the Age of Turbulence (New York: AMACOM, Spring 2009). </li></ul>
    13. 14. Latent Opportunities Latent Vulnerabilities Chaos Strategy Selection Chaos Strategy Response 1 Strategy Response 2 Strategy Response 3 Scenario 1 Scenario 2 Scenario 3 Chaos impacts the Company Undetectable Turbulence Chaotics Management System Construction of Key Scenarios (Opportunities : Vulnerabilities) Unaddressed Turbulence Early Warning System (Addressed Turbulence) Detectable Turbulence
    14. 15. Corporate Level Branding  
    15. 16. Building a Corporate Reputation <ul><li>Are there any companies that you love or you would miss as a buyer if they disappeared? List them…. </li></ul><ul><li>Amazon, Best Buy, BMW, CarMax, Caterpillar, Commerce Bank, Container Store, Costco, eBay, Google, Harley-Davidson, Honda, IDEO, IKEA, JetBlue Johnson&Johnson, Jordan's Furniture, LLBean, New Balance, Patagonia, Progressive Insurance, REI, Southwest, Starbucks, Timberland, Toyota, Trader Joe's, UPS, Wegmans, Whole Foods. </li></ul><ul><li>The researchers found these firms to be highly profitable. </li></ul><ul><li>Do customers love your company? </li></ul><ul><li>What is common to companies that are loved? </li></ul><ul><li>Source: Raj Sisodia, David B. Wolfe, and Jag Sheth, Firms of Endearment: How World-Class Companies Profit from Passion and Purpose (Wharton School Publishing, 2007) </li></ul>
    16. 17. Characteristics of Firms of Endearment <ul><li>They align the interests of all stakeholder groups </li></ul><ul><li>Their executive salaries are relatively modest </li></ul><ul><li>They operate an open door policy to reach top management </li></ul><ul><li>Their employee compensation and benefits are high for the category; their employee training is longer; and their employee turnover is lower </li></ul><ul><li>They hire people who are passionate about customers </li></ul><ul><li>They view suppliers as true partners who collaborate in improving productivity and quality and lowering costs </li></ul><ul><li>They believe that their corporate culture is their greatest asset and primary source of competitive advantage. </li></ul><ul><li>Their marketing costs are much lower than their peers while customer satisfaction and retention is much higher. </li></ul><ul><li>Source: Sisodia, et al. </li></ul>
    17. 18. Four CEO Views of Marketing <ul><li>1P CEO </li></ul><ul><li>4P CEO </li></ul><ul><li>STP CEO </li></ul><ul><li>ME CEO </li></ul>
    18. 19. Stages in the Development of the Marketing Discipline <ul><li>1. Selling stage . </li></ul><ul><li>4P stage . </li></ul><ul><li>3. STP stage . </li></ul><ul><li>Customer relationship management stage . </li></ul><ul><li>5. Co-creation stage . </li></ul>
    19. 20. AMA Definition of Marketing <ul><li>“ Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders .” </li></ul>
    20. 21. Marketing Objective, Process, and Philosophy <ul><li>CCDVTP </li></ul><ul><li>R -> STP -> MM -> I -> C </li></ul><ul><li>CIB </li></ul>
    21. 22. Marketing’s Role <ul><li>In world class organisations where the customer is at the centre of the business model, marketing as a discipline is responsible: </li></ul><ul><ul><li>for defining and understanding markets, </li></ul></ul><ul><ul><li>for segmenting these markets, </li></ul></ul><ul><ul><li>for developing value propositions to meet the researched needs of the customers in the segments, </li></ul></ul><ul><ul><li>for getting buy-in from all those in the organisation responsible for delivering this value, </li></ul></ul><ul><ul><li>for playing their own part in delivering this value and for monitoring whether the promised value is being delivered. </li></ul></ul><ul><ul><ul><ul><li>Professor Malcolm McDonald </li></ul></ul></ul></ul>
    22. 23. What is a CMO Expected to Do? <ul><li>Represent the voice of the customer (VOC) to others in the company and champion the development of a strong customer-orientation to build loyal customers. </li></ul><ul><li>Monitor the evolving business landscape and gather customer insights to help develop new products and services for achieving growth objectives. </li></ul><ul><li>Be the steward of the corporate brand and brand-building practice. </li></ul><ul><li>Upgrade marketing technology and skills in the company. </li></ul><ul><li>Bring insight into the corporate portfolio and synergies. </li></ul><ul><li>Measure and account for marketing financial performance and contain media and other service costs. </li></ul>
    23. 24. Sales Precedes Marketing <ul><li>In the beginning there was sales. </li></ul><ul><li>Marketing appeared later to help sales people. </li></ul><ul><li>Marketing was originally located in the sales department. </li></ul><ul><li>Then marketing grew as a separate department responsible for the marketing plan (4Ps) and brand-building. </li></ul><ul><li>Marketing and sales are separate cultures with interdependent jobs to do. </li></ul>
    24. 25. Identify the Existing Level of Relationship Undefined Defined Aligned
    25. 26. The Sales Funnel Prospecting Qualifying Defining Needs Contract Negotiation Developing Solutions Proposal Preparation/ Presentation Revision & Issue Resolution Implemen-tation Purchase Intention Purchase Loyalty Customer Advocacy
    26. 27. The Marketing and Sales Funnel Purchase Intention Customer Awareness Brand Awareness Brand Consider- ation Brand Preference Purchase Loyalty Customer Advocacy Marketing Sales Handoff
    27. 28. Revise Your Sales Approach
    28. 29. Drop the Old Sales Model Source: Sandro Magaldi, Sales 3.0
    29. 30. Be a Value Merchant, Not a Salesman <ul><li>Move from features to benefits to the worth of the offering. </li></ul><ul><li>Distinguish between the value of an offering and your pricing of the offering. Make the difference between your value and price superior to the competitor. </li></ul><ul><li>Your task is to be able to demonstrate (before) and document (during). </li></ul><ul><li>Stress the points of differences between you and the competitor, not the points of parity. Make sure that the differences matter to the customer. </li></ul><ul><li>Construct a value word equation for each point of difference and point of contention. </li></ul><ul><ul><li>Our pump lasts 3 years rather than 2 years and will save you X dollars. </li></ul></ul><ul><li>Source: James C. Anderson, Nirmalya Kumar, and James A. Narus, Value Merchants: Demonstrating and Documenting Superior Value in Business Markets (Harvard Business School Press, 2007.) </li></ul>
    30. 31. 2. Find New Market Opportunities <ul><li>“ A business has two—and only two—basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs.” </li></ul><ul><li>Peter Drucker </li></ul><ul><li>“ While great devices are invented in the laboratory, great products are invented in the Marketing Department.” </li></ul><ul><li>William H. Davidow, former Senior Marketer </li></ul><ul><li>at Intel and author </li></ul>
    31. 32. The Issue <ul><li>Innovate or stagnate. </li></ul><ul><li>But most innovations fail. </li></ul><ul><ul><li>Consumer packaged goods…90% </li></ul></ul><ul><ul><li>B2B…20% </li></ul></ul><ul><li>The ones that succeed are copied so quickly. Does it pay to innovate? </li></ul><ul><li>Yes. Stagnating is more fatal. </li></ul>
    32. 33. Opportunity-Driven Companies During the Downturn <ul><li>Wal-Mart </li></ul><ul><li>McDonalds </li></ul><ul><li>TJ Maxx offers brand name women's and men's apparel, juniors and kids clothes at affordable prices. </li></ul><ul><li>Colgate’s tier 2 brands doing well </li></ul><ul><li>Makers of private brands </li></ul><ul><li>Pharma companies making sleeping pills </li></ul><ul><li>Hyundai offers to take back new car if job is lost </li></ul><ul><li>Toll Brothers in home construction is offering to cover 6-months of mortgage payments up to $2,500 per month if a person gets laid off of work after buying a home with Toll. </li></ul>
    33. 34. Three Innovation Models <ul><li>Whirlpool Corporation launched an effort in 2000 to stimulate greater innovation. The company trained 400 employees from a wide variety of functions in a new process of “ideation.” </li></ul><ul><li>Shell Oil , in 1996, authorized a team of its employees to allocate $20 million to rule-breaking ideas originating anywhere in the company. Any employee can make a 10-minute pitch followed by 15-minute Q&A. Greenlight ideas get an average of $100,000 and up to $600,000. Of Shell’s 5 largest growth initiatives in 1999, 4 started this way. </li></ul><ul><li>Samsung Electronics established the Value Innovation Program (VIP) Center in 1998. Core cross-functional team members come together to discuss their strategic projects. Samsung runs an annual Value Innovation conference and awards are given for the best cases. </li></ul>
    34. 35. Six Ways to Get Ideas From Customers <ul><li>Observe how your customers are using your product. </li></ul><ul><li>Ask your customers about their problems with your products. </li></ul><ul><li>Ask your customers about their dream products. </li></ul><ul><li>Use a customer advisory board to comment on your company’s ideas. </li></ul><ul><li>Form a brand community of enthusiasts who discuss your product. </li></ul><ul><li>Encourage or challenge your customers to change or improve your product. </li></ul>
    35. 36. Source: Blue Ocean Strategy
    36. 37. Reconstruct Market Boundaries Through a Six Paths Framework <ul><ul><li>1. Look across alternative industries </li></ul></ul><ul><ul><ul><li>Home Depot (products and craft advice) </li></ul></ul></ul><ul><ul><li>2. Look across strategic groups within industries </li></ul></ul><ul><ul><ul><li>Curves (health club or home exercise) </li></ul></ul></ul><ul><ul><li>3. Look across the chain of buyers </li></ul></ul><ul><ul><ul><li>Canon (small copiers for homes, not companies) </li></ul></ul></ul><ul><li>4. Look across complementary product and service offerings </li></ul><ul><ul><ul><li>Barnes & Noble book stores </li></ul></ul></ul><ul><li>5. Look across functional or emotional appeals to buyers </li></ul><ul><ul><ul><li>Swatch (from function to emotion) </li></ul></ul></ul><ul><ul><ul><li>Body Shop (from emotion to function) </li></ul></ul></ul><ul><li>6. Look across time </li></ul><ul><li>. Toyota </li></ul>
    37. 38. Lateral Marketing Process The case of Cereal Bars into Cereals for breakfast market Cereal varieties New category Vertical Marketing Process STREETS =
    38. 39. Baby dolls market Doll varieties New category Lateral Marketing Process Vertical Marketing Process To feel as... = Teenager The case of Barbie
    39. 40. Hotel: Lateral Marketing Thinking <ul><li>Substitution : a free hotel room when the flight is cancelled. </li></ul><ul><li>Inversion : a hotel without a front desk. </li></ul><ul><li>Combinations : a hotel room with a sauna. </li></ul><ul><li>Exaggeration : hotel room with two king size beds. </li></ul><ul><li>Elimination : a hotel without a room. </li></ul><ul><li>Reordering : turning the radio on when leaving the hotel room. </li></ul>
    40. 41. 3. Find New Ways to Communicate <ul><li>One executive said that he needs to continue spending “big bucks” on advertising because he would be blamed if reducing this budget was accompanied by lower sales. </li></ul><ul><li>“ Advertising, as you know it, is dead… Advertising is a lot more than just television commercials—it includes branding, packaging, celebrity spokespeople, sponsorships, publicity, customer service, the way you treat your employees, and even the way your secretary answers the phone.” (Sergio Zyman) </li></ul><ul><li>The former CEO of P&G said that he would gladly switch half of his advertising budget to the Internet if he knew how to spend it effectively. </li></ul>
    41. 42. <ul><li>“If advertisers spent the same amount of money on improving their products as they do on advertising, they wouldn’t have to advertise them.” </li></ul><ul><li>Will Rogers </li></ul>Remember…              
    42. 43. The Basic Question and Challenge <ul><li>TV ads have been the most effective way to build a brand, especially if there is one positioning. </li></ul><ul><li>When we reduce TV advertising, how can we replace it. </li></ul><ul><li>Answer: Narrative Branding. </li></ul><ul><ul><li>The new media – websites, video, podcasts, consumer generated content – are long-form media. Marketers need to design compelling brand stories with richness and depth. </li></ul></ul><ul><ul><li>Narrative Branding is story-telling. It is designed around all senses: sight, sound, taste, touch and smell. Narrative Branding engages people through metaphors, co-creation and a compelling narrative arc. </li></ul></ul><ul><ul><li>Narrative branding replaces single positioning. </li></ul></ul>
    43. 44. Make Use of the New Media <ul><li>Traditional Media </li></ul><ul><li>Drum beats and smoke signals </li></ul><ul><li>Face-to-face sales calls </li></ul><ul><li>Writing </li></ul><ul><li>Leaflets and posters </li></ul><ul><li>Billboards </li></ul><ul><li>Newspapers </li></ul><ul><li>Magazines </li></ul><ul><li>Direct mail and catalogs </li></ul><ul><li>Telephone </li></ul><ul><li>Radio </li></ul><ul><li>TV </li></ul><ul><li>Film </li></ul><ul><li>Sponsorships </li></ul><ul><li>Street level promotion </li></ul><ul><li>Festivals </li></ul><ul><li>Trade fairs </li></ul><ul><li>Product placement </li></ul><ul><li>Digital Media </li></ul><ul><li>Websites </li></ul><ul><li>Email </li></ul><ul><li>Banners and pop-ups </li></ul><ul><li>Webcasts </li></ul><ul><li>Blogs </li></ul><ul><li>Podcasts </li></ul><ul><li>Videocasts </li></ul><ul><li>Mobile marketing </li></ul><ul><li>Social network sites </li></ul><ul><li>Stimulated buzz </li></ul>
    44. 45. Your Ads Are Small Compared to the Influence of Consumer-Generated Media (CGM) <ul><li>Direct customer feedback to company Web sites </li></ul><ul><li>Online bulletin boards, chat rooms, forums, and discussions </li></ul><ul><li>Person-to-person e-mail </li></ul><ul><li>Blogs (personal Web logs/diaries) </li></ul><ul><li>Moblogs (sites where users post or send digital images, photos, video clips to others) </li></ul><ul><li>Consumer opinions and reviews on Web sites (amazon, netflix, zagat, planetfeedback, epinions) </li></ul><ul><li>Podcasts (audio files that can be downloaded and played on various devices) </li></ul><ul><li>Webcasts (internet live presentations) </li></ul><ul><li>Second Life </li></ul><ul><li>You Tube </li></ul><ul><li>Wikipedia (encyclopedia) and Flickr (photos) </li></ul><ul><li>Instant messages </li></ul>
    45. 46. Your Job is to Create Buzz <ul><li>Mavens : they are an expert on a topic. You listen to them closely. Their motivation is to inform or explain. </li></ul><ul><li>Connectors : they know a lot of people. They are social glue. They may mention things to many others but are not seen as experts. </li></ul><ul><li>Salespeople : they are persuasive and help create an epidemic of interest. </li></ul><ul><li>Source: Malcolm Gladwell, Tipping Point </li></ul>
    46. 47. 4. Use New Marketing Technology and Metrics <ul><li>Direct marketing and predictive analytics </li></ul><ul><li>Marketing metrics </li></ul><ul><li>Marketing models </li></ul><ul><li>Sales automation </li></ul><ul><li>Marketing automation </li></ul><ul><li>Marketing dashboards </li></ul>
    47. 48. Some Metrics That Count <ul><li>Market share </li></ul><ul><li>Customer satisfaction </li></ul><ul><li>Number of promoters to detractors </li></ul><ul><li>Retention rate </li></ul><ul><li>Customer lifetime value </li></ul><ul><li>Customer equity </li></ul><ul><li>Return on customer </li></ul><ul><li>Brand strength (perceived relative brand value) </li></ul><ul><li>Brand equity </li></ul><ul><li>ROI </li></ul><ul><li>DCF </li></ul>
    48. 49. Marketing Automation Plan Manage Execute Measure <ul><li>Marketing </li></ul><ul><li>investment </li></ul><ul><li>management </li></ul><ul><li>Demand modeling </li></ul><ul><li>Marketing resource management </li></ul><ul><li>Campaign management </li></ul><ul><li>Lead management </li></ul><ul><li>Events management </li></ul><ul><li>Loyalty management </li></ul><ul><li>Media management </li></ul><ul><li>Marketing analytics </li></ul><ul><li>Web analytics </li></ul>
    49. 51. The power to deliver profit growth… P&G Soars Due To Marketing Efforts Brandweek, October 31, 2006 By Constantine von Hoffman BOSTON -- Procter & Gamble credited marketing improvements as part of the reason for its better-than-expected first quarter of fiscal ’ 07. “ We ’ re getting real traction from our marketing ROI and media-mix modeling, ” CEO A.G. Lafley said in a conference call with analysts today. “ That means we ’ re better able to reallocate ” what the company spends on marketing. He did say that this had helped improve the margins and increased earnings 33% during the quarter to $2.7 billion. Brand Week, November, 2006 CEO A.G. Lafley
    50. 52. Your Take-Aways <ul><li>Organize your marketing more holistically and strategically and relate better to sales and to new product development, especially during the economic downturn. </li></ul><ul><li>Find new market opportunities by working with customers and using ideation frameworks (blue ocean strategy, lateral marketing). </li></ul><ul><li>Add newer media (websites, email, blogs, podcasts, webcasts, mobile phones, social networks, and buzz marketing) to replace some of your traditional media. </li></ul><ul><li>Incorporate new marketing technologies (marketing models, sales automation, marketing automation) to increase your company’s marketing productivity and financial results measurement. </li></ul>
    51. 53. “ Within five years. If you’re in the same business you are in now, you’re going to be out of business.”
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