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Pim Marketing Trendrapport 2012


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Pim Marketing Trendrapport 2012

  1. 1. PIM Marketing Trend Report 2012 Mission Impossible: 8
  2. 2. Refreshing crisis thoughts: The marketing agenda of 2012 Marketing = Building Sustainable Business Strategy and Implementation Market Dynamics Personal and Experiences 8" Strategic Ambition Identity 1" 7" Information Inspiration Technology Technology as 2" 6"" Data, Metrics a Lifestyle Integration Investment Magic Wand 3" 5" Intelligence Integrity 4 Actionable Internationalisation Transparency Synthesis Me, You, Us WW Net Neutrality Market Power Equality Gebaseerd op Moenaert, Robben, Bray and Gouw, november 20112
  3. 3. Preface Hans MolenaarNever waste a good crisis… how-to’ manual. It is, however, indicative, case-based and contains a lot of valuable statistics. The report looks at today’s trends - trends that areMy apologies… Last year I quoted in the PIM Trend Report that we are observable and tangible - and discusses what is going on now and whatascending out of the crisis that started in 2008. I couldn’t foresee the will be important in the short term.Euro-crisis and it’s impact on the world. Actually we can affirm that wehave a crisis upon a crisis, the double dip... So, I was wrong… but also a The still growing Platform Innovatie in Marketing’s vision and mission is totad right by saying that we aren’t there yet. This crisis may last a few recognise and monitor the most important and distinctive marketingyears, perhaps. Afterwards, the world will never be the same, so… time to trends and share our knowledge with you. Just looking and debating notcreate or own new world then! How? Be creative, work hard and be enough: action is needed. At PIM there is a continuous, healthysmart, and most of all, get engaged with both your customer and supply examination about developments in the marketing field, a reflexion whichchain. Social is the word, relationship is the key… So, turn the world we want to share with you! One of the accomplishments we share is thearound is not a Mission Impossible => Mission Impossible: 8. PIM Marketing Trend Report.What you have in front of you is the PIM Marketing Trend Report 2012. It As always, the report will be distributed to PIM members and othersis the eighth time Platform Innovatie in Marketing (PIM) has published a involved in innovation in marketing. Peter Gouw is the report’s editor. Areport like this. The third time from Peter Gouw’s hand, the first five times record number of other marketers have also contributed to the report!the Trend Report was written by Egbert Jan van Bel. The assignment for Thank you all for the hard work!Peter Gouw, as editor of the Marketing Trend Report 2012, was to I hope this report will guide you to improve your marketing results anddescribe what your company needs to do to use the present situation to realise your goal in customer value for 2012. We as "Platform Innovatie inmaximise your interests, using statistics, global research and best Marketing” wish you loads of inspiration with this new Marketing Trendpractice. Report 2012. Enjoy reading it!With the title Mission Impossible the report will walk you through eightsubjects: Information Technology, Integration, Intelligence,Internationalization, Integrity, Investment, Inspiration and Identity. The keypurpose of the PIM Marketing Trend Report is to be food for thought,discussion and reflection. The aim of this report is not to give a completeoverview of all the trends in marketing, but to shed light on the mostrelevant marketing trends that will impact our work throughout 2012.Extremely necessary in times like this. Its purpose is to help marketers Drs. Hans Molenaarmake better decisions and provide guidelines for their work. It is not a ‘ Chairman Platform Innovatie in Marketing 3
  4. 4. PIM Marketing Trend Report 2012 Focus Trend Rapport PIM Marketing Trend Report 2012 Colophon January 31st, 2012 In this trend report you will not find short lists of trends and hypes. Publisher: Platform Innovatie in Marketing Nor warnings or intimidating facts. And this report is also not about an insightful description of what the trend will be in 5 to 10 years Translation by Euro-Script Utrecht from now. Video : Dimitris Krisilis   Price per copy 95 Euro incl. VAT The assignment of the board of PIM is clear. Where do we stand as Free copy PDF download for PIM members marketers today, why should we step up the plate and what should we do in 2012? We focus on the missions marketers / managers have this year. We have distinguished 8 special missions. Impossible missions, let’s see and discuss, but for sure we have to Editors work off-the-grid (again). That’s what this trend report is all about. Rudy Moenaert (TiasNimbas) Real marketing focus, facts, tips and opinions of our PIM Marketing trend watchers’ network in order to help improve performance in Henry Robben (Nyenrode) 2012. Providing marketers / managers insights and explanations Egbert-Jan van Bel (Beeckestijn) they can use immediately within their Business to Business (B2B) Jan Havermans (GfK) or Business to Consumer (B2C) activities and of course to inspire. Pim van Geest (van Geest) Michel van den Bosch (StratEx) Peter Gouw 4
  5. 5. PIM Marketing Trend Report 2012Table of Contents Visual Mission Impossible: 8 2 8 Identity Foreword 3 1 7 Information Focus Trend Report 4 Technology Inspiration Content 5 Trend 1 Information Technology 12 2 6 Trend 2 Integration 17 Investment Trend 3 Intelligence 22 Integration Trend 4 Internationalization 27 Trend 5 Integrity 29 Trend 6 Investment 33 Trend 7 Inspiration 38 3 5 Intelligence Integrity Trend 8 Identity 43 PIM Marketing Trend Watchers 2011 51 4 Internationalisation Our Sponsors 52 5
  6. 6. PIM Marketing Trend Report 2012 Focus What key trends are on the commercial radar in the years to Business Model Innovation no longer relates to the challenges that await come? the skillful marketer of today and tomorrow. MI:8 is nothing more or nothing less than a Business Model Turnaround. Tom Cruise is starring yet again in the recently released movie Mission Impossible 4, and we sincerely hope this will be his last MI appearance! But he should perhaps rise to this challenge because the marketing The reason behind this report world is already a few sequels ahead of the Tom Cruise bunch. Today, we Change in the world is gaining momentum. Late 2010, the Western world are looking at MI:8. We will use alliteration, a century-old technique was geared for new growth hoping that the crisis would subside. There widely used in poetry and music, to convey our thoughts on the was an air of hopefulness, but the fundamentals were still in a shambles. marketing agenda for the coming years. We have been accustomed to And from a marketing perspective, we would have to rethink our position this particular literary device ever since McCarthy propelled the 4 Ps into in the business environment. Eight professionals from their own particular marketing stardom. fields of expertise have written this report to impart their knowledge and The challenge for today’s marketing managers is all about boosting the reveal the trends for the coming year or two. We are not striving for a customer experience; it is about deploying the interactive aspects of information technology to appeal to demanding target groups both old and new. You want to develop activities that fully integrate into your customers’ lives in a seamless manner, using intelligent solutions, is fact- based and focused on actual behavior. In the meantime, economic growth is shifting towards the Far East. Growth in European markets is stagnating, and even a decline is on the cards. The Far East, with its rapidly growing population and economies, is now more interesting and relevant than ever. Doing good business requires transparency to keep the house clean. No business is immune, although perhaps a few may attempt to prolong the current blur for as long as possible. The Return on Marketing concept is rendering marketers accountable in the true sense of the word. We need strong marketers, not funny marketers. They must put emotion into their products and services to give customers a reason to buy and employees a reason to be proud. This is what will bring an end to the discussion about the added value of marketers and their identity crisis. To coin a phrase, make marketing cool again. The epithet6
  7. 7. long-term vision, but simply focus on a pragmatic understanding of the Michael Cusumano rightly argues that we must no longer think productcurrent environment. but rather product and services (“Staying Power”, 2010.)The information in this report combines empirical insight, personal views, Cusumano is actually behind the times. Were now moving way beyondand extensive discussion and debate among marketing trend watchers in thinking about products and services as we should be thinkingthe Netherlands who are associated with PIM (Platform Innovatie in ‘experiences.’ Apples explosive growth is not about products or services:Marketing). its about creating a seamless, yet open experience with every interaction. Its about a commitment to the elegance of simplicity. Its about building an emotional connection with every customer. Its their ethos. And itStructure pervades every touch point, every product - throughout their eco-system.The distinct fields of interest for the coming year, our Mission Impossible:8 Organizations that evolve and get this right will be the ultimate winners.are:• Information Technology• Integration• Intelligence• Internationalization• Integrity• Investment• Inspiration• IdentityThis teaser is a holistic view of the 8 subjects covered in this report. Thefollowing chapters give more detailed information about these areas.1. Information Technology: Facebook, SAP, Tripadvisor, FourSquare,Siebel, Groupon,, iTunes, Twitter… The list of IT-enabledbusinesses that have converted formerly fragmented markets into winner-takes-all or winner-takes-most markets is nearly endless. Innovation guru 7
  8. 8. textbooks that are currently used in top-notch American business schools. It is simply frightening to see how disconnected marketing research methodology is from the connected world it is probing. Folks, there’s a lot more to focus on than the methodological principles underlying ad hoc marketing surveys. However, the next big trend in intelligence is how to synthesize all the collected data and present them in a condensed and digestible format. 2. Integration: Generation Y has made its first inroads into the Take, for example, a company like CIRadar. They deliver a daily briefing organizational pyramid. Also known as Echo Boomers, they are true covering several metrics about you, your customers, and your digital natives. The sequel to the 1990 classic ‘Home Alone’, starring competition. The briefing covers a significant amount of data that would Macaulay Culkin, would today be called ‘Never Alone’. Generation Y take a team of 10 to 15 people to collect manually. This dashboard of expects nothing less than transparency and authenticity of the people meaningful, insightful and actionable information is available for a very around them, and their employers. The forty-somethings who currently reasonable $12K per year. head up the marketing departments in many organizations may find themselves not only outmoded, but most likely also outwitted by their younger colleagues. Just watch a toddler used to the iPad interface try to swipe its way to the next screen on your PC. Well… that toddler is your next customer! Again, its about the experience. For digital natives, it’s more about absorbing a technology that IS their lifestyle rather than a technology that meets their specific needs. For digital natives, the best technology for them is a technology they want to use 24/7/365 simply because its about their lifestyle - their everyday experience. Its not something they turn off when they leave work. 3. Intelligence: We continue to be profoundly amazed at how inadequately the academic community reacts to the opportunities afforded by the new scenery. The Internet provides huge opportunities to study customers, competitors and other stakeholders in real time, and as a business ecosystem. As a test, we screened a few of the leading8
  9. 9. 5. Integrity: Any relationship between two people actually involves three entities: the first person (‘me’), the other person (‘you’), and the relationship between both of them (‘us’). In the age of one-way communication, the company (me) was able to define the relationship at its discretion. Personally, we do not think for a moment that the presidential ambitions of DSK, the brand label generally used for Dominique Strauss- Kahn, would have been dented at all by4. Internationalization: In the past, the Western world viewed his escapades if they had occurreddeveloping countries as low-cost production centers and avenues for some 50 years ago. We have, however,channeling Barbie, beer and cosmetics. However, the business’ center of entered the age of transparency.gravity is rapidly shifting towards the Far East. The 7th billion person on Morons, however high in thethis planet was born recently in Manila. Citizens in the Far East no longer organizational chart, are todayconsider themselves as passive outposts, slavishly implementing the confronted with a ‘you’ who wants a greater say in ‘us’. This is somethingagenda of Western headquarters. No, driven by pride, people and the that is very much needed. We do not want idiots like Bob Diamond, CEOpower of money, they are now building their own global corporations and of Barclays Bank, saying in a parliamentary committee in January 2011:brands. A voiceover in a new edition of “How the West was Won” might “There was a period of remorse and apology; that period needs to bejust suggest it all started in the Far East. Chris Burggraeve, the over. We need our banks willing to take risks,Chief Marketing Officer of AB Inbev, put it quite simply: “The to be confident and to work with the privateBelgian marketer of the future will be international, or he won’t be sector in the UK to create jobs and improvea marketer”. A very valid observation. economic growth”. Vineet Nayar, author ofHowever, there is a wildcard in the equation. The concept of “Employees First, Customers Second”, isworldwide net neutrality has been a catalyst to breaking down right: transparency keeps the house clean.borders and isolated cultures. Some geographies are doing their And if we may be so bold, it keeps idiots likeutmost to gain control and limit Web access. This could change Bob Diamond under scrutiny. Even Michaelthings or at least slow down the openness of information. Porter himself calls for shared value rather than shareholder value. 9
  10. 10. 6. Investment: The book ‘Marketing Strategy & Organization’ (4th 7. Inspiration: Are you inspired to lead the change and manage the Edition, LannooCampus, 2011), quotes Sir George Bull, a long-time journey through the commodity game, through financial market veteran of the British beverage industry. He observed: “The marketing disruption, through the battle for energy and the environmental function bears all the hallmarks of abstract art – it costs an arm and a leg, challenge? As marketing leaders we should and need to be inspired by it bears only a passing resemblance to real life, and you’re never quite these fundamental trends. It is inevitable - you will have to demonstrate vision and leadership more than ever before, and lead your company by building a sustainable business roadmap with a competitive edge. By embracing the new reality, look differently, look forward, ask yourself WHY and use the full potential of your company strengths, resources, opportunities, and commit fully to all this. Involve your entire organization and bring emotion to the people and customers. Giving them a reason to buy, work your ‘you’. The question might be: “Does your inspiration come from the crowd or from yourself?” As life is becoming more individualistic and sure what you’ve got at the end of it all”. Return on Marketing is still a self-reliant, are we gypsy metric. It need not be. Marketing activities are an investment in a seeking collaboration firm’s business model. We need marketers who not only understand the to get the right ins and outs of an advertising campaign, but who can also calculate and proposition out there? sell the net present value of search engine optimization, international Life is a journey - brand expansion, new product development and sales force recruitment. enjoy the ride! We need strong marketers, not funny marketers.10
  11. 11. 8. Identity: The questions currently being asked by marketers and heardin marketing discussions reveal that marketing is undergoing an identitycrisis. When asked which marketer we admire the most, Steve Jobs ismore often than not our unanimous answer. We do not believe that SteveJobs’ business card read: “Chief Marketing Officer”. He wouldn’t haveaccepted that. What Steve Jobs did was real marketing; he impressivelytranscended the two disciplines that are generally used to illustrate thefield: marketing research and marketing communications. In reality,marketing is building sustainable business. The marketer is the architectand manager of the core commercial processes of an organization. Well,it’s high time to rethink these core marketing processes and organizationalstructures. “What ultimately constrains the performance of yourorganization is not its operating model, nor its business model, but itsmanagement model” (Gary Hamel in The Future of Management).Business model turnaround has always been the #1 decision screen forgood marketers. The mediocre marketer operates effectively as acaretaker and guardian of the status quo. True marketers attempt to peelback the layers of perceived truth, they are driven towards insight ratherthan data, they are motivated to perform and use creative problem-solving to identify new opportunities and cater for a real customer need.To put it simply, the business model innovation label no longer capturesthe challenges that await the skillful marketer.There is no choice: MI:8 means Business Model Turnaround. 11
  12. 12. Trend 1 Information Technology The year of the natural user interface Natural user interface: from Search Engine to Answering Siri, ask a question and Siri will give you the answer and provide it in text. Machine Apple makes a search more relevant – ask for information and get the answer. In 2012, Apple’s virtual assistant, Siri, will pose serious competition to Google on the other hand seems to be sticking to finding web pages. Google. Users of Apple’s Siri platform Google+ is a step towards the next search levels, and predicts what you for the iPhone and iPad do not have and I want to find. to search through thousands of websites for what they’re looking for. Siri provides answers to questions, makes a reservation in a restaurant, sends messages, or orders a taxi. You can strike up a conversation with12
  13. 13. Natural user interface: Near Field Communication (NFC)With the introduction of Near Field Communication (NFC), banks stoppedinvesting in the ChipKnip. NFC technology means paying is simple – justswipe your smart phone across a reader at the cash desk, or touchanother phone with your phone to transfer money from your account tothe owner of the other phone. Google Wallet is currently the marketleader, but banks are also experimenting.NFC makes paying more user friendly. You no longer have to find a Natural user interface: MultiTouchcharge point. You will Interactive Glass: Imagine a shop window where we can pick and choosebe able to charge from the complete range, examine your choice to your heart’s content,your wallet on the go, and then drag it to a shopping basket - all without even entering a shop.even fullyautomatically, so youcan be sure youalways have fundsavailable. 13
  14. 14. Multitouch glass will start to appear in the home and office and in public and 3D face recognition, this bank will provide fully digital banking spaces. There will be Multitouch glass where interactivity and information services. You can now open a bank account, or order a new credit card. coincide, providing people with yet another way to interact with an Clients must still answer a few questions verbally, and lie detector organization. software will detect whether they are telling the truth. If this is the case, your verbal characteristics will be stored on your card whereby the system learns and improves itself. The next step: Hand Gesture Recognition (2012: Innovators) Natural user interface: Robotics in customer service 2012 will see companies investing in robotics for service processes. So far we’ve seen this mostly in production processes. At some point in 2012 it will reach the tipping point for customer services. Sberbank in Moscow is probably the first bank where technology has won out over the employee. Using scanners for passports, fingerprints14
  15. 15. Social impact: The end of hierarchyNatural user interfaces will make technology and its intelligence availableto all. Individuals will have more influence, and be less dependent onothers. This, in turn, will free them from hierarchical systems based oncontrol and inequality. They will look for equal relationships as citizens,employees or customers. If they’re not satisfied with the service provided,they will join up with others in the crowd to be heard. Social impact: Social judgment Bringing a case before court will be increasingly difficult and more expensive in 2012. In fact this is no longer a viable option for many people. It’s either too expensive or time consuming, and consequently its popularity as an option is on the wane. No worries, crowd-based solutions are at hand. Technology currently available makes connecting with others in the crowd easy. It is highly effective and easy to use. So, for example, if you have a problem with a company, and you shared this problem with others and with employees in that company, the latter will swiftly attempt to remedy whatever was wrong. Everybody wins, and it’s light years faster than going to court. 15
  16. 16. Social impact: The Boardroom sandwich Nano world To date, politicians and young people have been active on numerous Although still in its infancy, nanotechnology will evolve rapidly and in the different social platforms, but the board members of big multinationals next year or two we will be seeing its first practical applications in didn’t seem to care. Today this attitude is no longer viable and may even everyday life. By the late 2010s, ubiquitous, unseen nano devices will be destructive because communication with all stakeholders in a provide seamless communication and surveillance among all people company has become crucial. They have to prepare for an openness and everywhere. Humans will have nano implants, facilitating interaction in an transparency that was not previously required of companies - the all-pervading network. Everyone will have a unique Internet Protocol (IP) boardroom must step up to the plate or be phased out. address. Since nano storage capacity is almost limitless, all conversation and activity will be recorded and recoverable. -- Gene Stephens, "Cybercrime in the Year 2025," July-Aug 2008 Social impact: Digi crime A word of warning: the frantic pace of digital development and dwindling financial funds will lead to an increase in cyber crime. The greatest threat is identity theft, so protect it!16
  17. 17. Trend 2 IntegrationIntegration is constant evolutionHave you ever met somebody from Generation Y? Well, they are now products. There are no secrets. Companies can no longer hide behindentering your organizational pyramid or taking over your own household if happytalk websites. Generation Y expects nothing less than transparencyyou have teenagers or older children. These Echo Boomers, Youngsters, – of the people around them, and of their employers.Generation Why, Millennials, Generation Next, Net Generation, Einsteinand .com Gen were born between 1980 and 1996 and are true digitalnatives. They have grown up in Authenticitya world resounding with Brand authenticity drives consumercommercial messages. They choice. But perceptions of authenticityare adept at filtering out change. The young generation considersmessages that are irrelevant. the old interpretation of authenticity i.e.They are skeptical about origin, brand history and heritage, to beproduct novelty or brand less relevant or important. In their eyesuniqueness. They take heed of authenticity means being unique, honesttheir friends, of shop staff and and ethical. If marketing managers havefamily rather than websites and to tell people that their brands arebrand brochures. And key to authentic then they are not - Generation Ybrand building are consumers will decide for themselvestransparency, authenticity and what’s authentic and what’s not.connectivity. The needs,behavior and habits of thisgeneration is the angle for Connectivityexplaining some of the Generation Y demands connectivity. Theyintegration challenges don’t just buy brands, they join them. Andmarketers will face in the so they want to be connected to themcoming years. just like they want to be connected to their friends. They use social networks, microblogs and blogs in order be part of aTransparency conversation, part of a community. This is why many successful brandsSociety is currently moving towards total transparency and there will be use social platforms and behave like friends by providing involvement andno room for corporate rhetoric about adding value to commoditized control over the brand. 17
  18. 18. How do you compete to gain their trust and give them a reason to buy The Values of Generation Y employees: from you or work for you? They are also perceptively called Generation • Meritocracy. Only the talented survive and people with talent should be Why because they don’t take things for granted. Generation Y able to succeed. “demands” flexibility and telecommuting choices, and is generally • Camaraderie. Working with others, in teams or just collaboratively; optimistic, highly social and rather moralistic. They have a complex and group accomplishment is sweeter than solo success. A sense of strongly tribal social structure built on their social networks. Work and mentoring, or mentors, in the workplace. social life are blurred (global • Non-traditionalism. Doing things differently from in the past while making the point that “this is workplace study, Johnson different”. Controls Inc.s). Generation Y •Integration of work and personal brings new energy with their life in a number of ways: co- virtual collaboration & workers are “family”, work and communication, networking, social life blend, and personal and knowledge sharing and their social activities are merged into the working day or night. second-nature use of online •Fierce independence: in choice of tools. This comes as a big company to work for, when to challenge if you happen to be leave, how to get the work done, a traditional marketing (offline) and how the work should be done manager. The Johnson are all individual decisions, with Controls study showed that input from social and professional networks. The result is that there is over 70% of respondents say little loyalty to employers. they want recycling programs in the office, and 47% would like to see solar panels on site at work. And 79% prefer working in an urban environment. Are we ready for this? Or will they “come round” once they have experienced the financial and economic crisis and act “normally”?18
  19. 19. Generation Y employees see themselves as: expect that their• Unique. They consider themselves to be a breed apart, talented, skilled organization will and in demand. They strongly believe in the value of their work and provide learning and expect “the rest of the world” to appreciate it. growth opportunities:• Proud. They are confident of their skills and enjoy being looked to for the chance to do advice and guidance and admired for their special talents. creative, challenging• Confident. They show little fear of the future, believing that their skills will work, with career always be in demand, and they have a strong support network in place through family and friends. prospects.• Realistic. They are, however, realistic about financial compensation in Collaboration. Young turbulent economic times. workers seek a work• Are they too arrogant and without the right experience and knowledge culture that is for them to have power? organized around teamwork andImplications for Business collaboration. Financial compensation. Social Responsibility. Young knowledge workers Business should may be realistic about espouse a social variations in compensation cause that goes beyond the traditional bottom line. because of economic Is this a generation of “cherry pickers” with company devaluation as the fluctuations, but the result? Well as Don Tapscott stated in his book: Grown up digital (2009), underlying expectation of “this newest generation of workers entering the workforce is changing the high compensation way that we live and work”. remains. In the years to come, marketing managers will face a shift in their tasks. In Caring. The sense of being an era of digital technologies and empowered customers, it is more nurtured and indulged by important to become a “content supply chain” manager by managing the organization is central. content through coordinating messages in the media rather than just Career opportunities. publishing simple content. Marketing managers will have to become Generation Y workers marketplace intelligence leaders by taking a lead in distributing customer 19
  20. 20. insights gathered through the digital touch points across the organization. A study by Junco and Mastrodicasa: “Research on ‘The Online marketing and social media are not just new channels that can be Net.Generation,’” found that 97% of students owned a computer, 94% used for the same commercial message – they are much more. owned a cell phone, and 56% owned an MP3 player (iPod, Zune, Sansa, etc.). The same study also found that 69% of students polled had a Just watch a toddler used to the iPad interface try to swipe its way to the Facebook account, 28% owned a blog and 44% read blogs. At home, next screen on your PC. Well… that toddler is your latest customer! Gen Y influence 81% of their families apparel purchases and 52% of car Generation Y was raised in the world of digital information technologies. choices. They can’t imagine a life where consumers are not able to connect with Nike found out the hard way that Generation Y is different. Although still hugely popular among teens, the brand actually lost its hold on the market at the turn of the century, according to Teenage Research Paul Polman Unlimited, a Northbrook market researcher. Nikes slick national ad CEO Unilever campaigns, with the emphasis on image and celebrity, helped build the brand among boomers. Yet these ad campaigns backfired with Gen Y who said: It doesnt matter to me that Michael Jordan has endorsed “If they can bring Egypt government down in six weeks they can bring us down in Nikes. Bad moves such as Nikes disastrous attempt to sponsor nanoseconds.” Olympic snowboarders and allegations of inhumane overseas labor practices only fuelled Gen Ys scorn. As Nike has discovered, success with this generation requires a new kind of advertising and a new kind of product. The huge image-building campaigns that led to boomer crazes in everything from designer vodka to sport-utility vehicles are less effective with Gen Y. The old-style advertising that works very well with boomers, ads that push a slogan and an image and a feeling, the each other, talk about products and services, share opinions and assess younger consumer is not going to go for, says James R. Palczynski, what other consumers have to say. They are active producers of media retail analyst for Ladenburg Thalmann & Co. and author of YouthQuake, a information and are constantly looking for interaction. Companies are study of youth consumer trends. Instead, Gen Y respond to humor, irony, starting to acknowledge this “power to the people” movement. and the seemingly untainted truth. Sprite has scored with ads that parody celebrity endorsers and20
  21. 21. carry the tagline Image is nothing. Obey your thirst. J.C. Penney & world they grew up in. The best technology for them is one that they wantCo.s (JCP) hugely successful Arizona Jeans brand has launched a new to use 24/7/365 since its about their lifestyle - their daily experience, itscampaign showing teens mocking ads that attempt to speak their not something that’s turned off when they leave work.language. The tagline? Just show me the jeans. You gain Gen Y’s attention by being available 24/7, listening to them, byNike has learned from its mistakes. When the company wanted to being creative,contract Rihanna and Chris Brown to promote their skating products, green andthey first asked their fans, who, in turn, didn’t think it was a good idea. responsible. BeGen Y consumers said that both stars had nothing to do with skating; competitive bythey don’t even know how to skate! These celebrities would not lend staying true tocredibility to the campaign. And so Nike did not contract them. But they your brand DNAdid sign a contract with a young Paul Rodriguez, also known as P-Rod, a and connect toyoung street skateboarder turned professional at the age of 17. They shot the spirit of thea video in the most beautiful places in New York popular for skating, with new generation -P-Rod demonstrating his most spectacular and difficult skateboard tricks. this is the secretNike’s commercial with P-Rod got hundreds of thousands clicks on to becoming partYouTube. of their choices. Just as Darwin The sequel to the 1990 classic once said, it’s ‘Home Alone’, starring Macaulay not the strongest Culkin, would today be called of the species, in ‘Never Alone’. Generation Y was this case raised in a world in which total companies, that connectivity is normal. survive nor the Technology is not just a device, most intelligent. it’s a part of their lives. The way But the one most they make purchasing decisions, responsive to start friendships, communicate change. and make career choices is affected by their use of online technologies. Because this is the 21
  22. 22. Trend 3 Intelligence Power shifts to the User, Information becomes focused GfK must reevaluate their position in the current marketplace if they are to provide viable and up-to-date tools and insights for specific groups to use. And even if they do this well in the coming years, Google will be by far the largest market research institute in 5 years’ time because they created a total new market research playing field – a new business model. The networked company, the real relations within the company If we go beyond the hierarchy, and see the company as a network, we gain new insights into how organizations truly work. This also means that information flows are no longer top-down or run by just a handful of people. Getting everybody involved in a company’s strategic goals means Marketing intelligence There is a distinct difference between market intelligence and marketing intelligence, or can we combine them as business intelligence? In these economically challenging times, companies and individuals are increasingly looking for pragmatic ways to conduct research and make sure it is relevant to their business. It will become easier to communicate with the market via online questionnaires, portals and other user groups. It is no longer the domain of the big research companies, although they still play a major role. But the individual is now empowered through various apps to get the right information that is essential for them and their division or company. Since most relevant information is now in the public domain, companies like Google, Facebook and LinkedIn provide a wealth of information to targeted users through groups and specialized apps. The big research companies like Nielsen, Kantar, Synovate and22
  23. 23. getting the very best out of people and not just having them perform their to attract the right employee. Another great innovation in providing valuedesignated tasks. Using the best that networks can offer, both inside and to the customer as well as the company is KLM’s Social Seating. The ideaoutside the company, fluid project teams are better equipped to focus on is to allow passengers to select seat-mates on the basis of what theirspecific goals. And once the target is reached, the team dissolves to Facebook, LinkedIn, or Google+ profiles say about them.make way for new projects. In 2005 Bill Gates drafted a memo headed:“the new way of working” to encourage his company, Microsoft, to shifttowards this new norm. Even though the memos are already seven yearsold, it was only the Dutch division that managed to fully implement hisviews successfully. However, increasing pressure to create a viable work-life balance will mean that this new way of working will be implemented inmany more companies across the board. Failing to provide this flexibilitywill put your team or company at a distinct disadvantage when attempting Apps in business, getting things done ERP systems used to be the norm in larger companies. Even though they’re very useful, more and more startups provide applications to present data in a more useful manner. So look beyond the big systems to get the right applications for your team or company. Faster time-to- market and implementation can be guaranteed if you’re able to define your specific requirements for the goals at hand. Integration of specific marketing information can be extracted from proprietary systems as well as public domain information from dashboards instead of bulky reports. 23
  24. 24. Information becomes has its limitations. Ask yourself what information is essential for achieving actionable, clutter is the company or team goals and what seems to be unnecessary detailing. reduced, and there is Provide the team with meaningful aggregated data instead of no unnecessary focus bombarding them with yet another list. It also means that intuition, based on too many KPIs. on experience and input from multiple sources, places increasing importance on decision-making. A project and result focus will diminish Finding the right the need for bulky reports and increase actionable data presented in applications for your dashboards and scorecards. business is a challenge simply because new Look for proprietary systems provided by ERP vendors like Business apps are cropping up Objects, Cognos, SAS enterprise BI server, Oracle enterprise BI server every day. Analyzing large amounts of data, finding meaningful patterns and of course Microsoft products. And don’t forget nonproprietary and aggregating them to useful data does not have to take place within systems from vendors like QlikView, WebFocus or even open-source the company. New services will provide you with the necessary insights to propel your company towards achieving its goals. Online surveys will become more sophisticated and easier to implement as will interaction with the customer through gamification to monitor behavior and conduct interactive research. A wealth of new programs is available from numerous app stores. iPhone users’ cell phone addiction is not only the result of its design - every new app means they are more locked in. They can’t stop using their iPhone and tend not to switch to the competition. They can no longer live without the integration and intelligence afforded by Apple. More on developments in the App-World in the recently released book “The App Effect” by VINT. Beyond Excel, be the guru or provide actionable information People sometimes talk as though Excel were better than sex! What on earth has happened to our lives! Yes, Excel is an excellent tool but it also24
  25. 25. software like Actuate and Pentaho. Share your vision with us, tell us what prospective partners is readily available through Internet technology, andyou think is excellent, challenge us and give feedback. should be used accordingly. One of the best examples of a company that shifted from the traditionalRedefining your business model for true focus and business model towards a completely new one is Springer. Springer, thecollaboration second largest academic publisher in the world, fully embraced digitalization and it has become very profitable in today’s market.Our economy is a networked economy. More and more companies willfocus on a specific role within the supply chain and they will becomeexperts as a result. This will mean they can be more efficient and thereforeprofitable. It also means that relations with other members of the supplychain become increasingly important. It is no longer possible to ignore thistrend (it’s one of the winning business trends, Moenaert, Robben andGouw), as the geographical boundaries no longer exist. Information on Cloud-based computing All the previously mentioned tools can be provided in the cloud. This poses a whole new set of challenges and opportunities. Where previously the IT department dictated what software people would use, now they will look for the tools that best suit their needs without consulting or even 25
  26. 26. To warp up In the coming year marketing intelligence will provide accurate and actionable data for project teams and the company as a whole. In order to get the right information at the right time, take a good look at your business model and for more focus redefine it if necessary, and involve the whole company and all its stakeholders to get things done. The availability of public domain data and tools to access specific information will shift power from the vendor to (expert) user. Give the employees the freedom to explore these avenues and learn to adapt quickly. In the coming years mobile applications will develop quickly and give users more self-reliance. This means they will have to learn new skills and adapt rapidly to a changing environment that places increasingly more importance on social media. informing the IT department. The result: loss of control, a raft of security issues and more influence on what tools to use. On the other hand it provides the user with targeted solutions on their smart phone or mobile devices. iOS, Android and Windows mobile where HTML 5 will become the new standards. It also makes the tools independent of their workspace and blurs the boundaries between time and place. Using currently available computing power, interactive data visualization is becoming a requirement and even a necessity in order to keep up with current demand. The US elections, which are always very much data driven, will provide a wealth of new applications and insight into what is currently possible.26
  27. 27. Trend 4: InternationalizationCenter of Gravity ShiftWhat is a Shift in the Center of Gravity? Surat, Ghaziabad), Bangladesh (Chittagong), Afghanistan (Kabul), Yemen (Sanaa), Mali (Bamako), Nigeria (Lagos), Tanzania (Dar Es Salaam).In the past, the Western World was the center of gravity when it came tosetting standards for trends and creating a need for new products and With the rapid population growth in these emerging regions, bolstered by the Net and social media, these markets are expanding rapidly. New global companies are emerging at a rapid pace, led by pride, people and the power of money. This is generating new international top competitors. New rich appear; new markets open up for trade creating opportunities for alliances, partnerships and acquisitions. The growth in wealth and prosperity is guaranteed to accelerate fast in these emerging regions and with increasing connectivity, it creates enormous commercial opportunities. However, growth has a downside, and resources such as water, energy and food will come under serious pressure. Socially aware societies are emerging and stepping up to address the resources issue, asking businesses, governments and NGOs to take responsibility. As this next group of people will be a tremendous commercial opportunity, they will also need to operate responsibly and contribute to a world pervaded by ‘healthy societies’.innovations. The global population is growing rapidly, the 7th billionthperson was recently born and we are moving towards a global populationof 8 billion. Today, the pace of population growth in the Western world isdiminishing, whereas populations in other parts of the world are growingsignificantly faster, creating a shift of people and economic power.Emerging regions - Africa, the Middle East and Far East – are home to the10 fastest growing cities in the world: China (Beihai), India (Faridabad, 27
  28. 28. • One in ten firms in the Netherlands is active in international trade. The top 1 percent of traders generated 74 percent of Dutch imports and 71 percent of exports in 2008. • In 2009, 1 percent of companies in the Netherlands were foreign- owned. They generated over a quarter of the added value, one-sixth of employment and nearly a third of turnover in the private sector. (Source: Beware of the unknown and unexpected, create flexibility, and make sure to choose your business path wisely, select your partners with great care, take responsibility and pro-actively translate the shift of gravity to commercial opportunities. The Statistics Netherlands internationalization Monitor for 2011 states; “Economic globalization is characterized by increasing international trade, foreign investment and international sourcing. For the Netherlands, this concerns activities by Dutch multinational companies abroad as well as foreign enterprises in the Netherlands.” Important findings in this Monitor are: • The share of imports from BRIC countries quadrupled since 1996 from 4 to 16 percent in 2010, making China the third most important source of Dutch imports.28
  29. 29. Creating Sustainability Co-leadership is an essential ingredient for creating co-operation among the different stakeholders needed for setting the new rules of the‘Sustainability’ is part of the mission of many companies. In the past sustainability game. An inspiring and visionary view by Tex Gunning, boardsustainability was about creating a way for your company to keep your member at AkzoNobel on co-leadership can be viewed on YouTube.shareholders, customers, consumers and employees satisfied. Today it is Next, AkzoNobel is trying to set the new standard with support from social societies. They really understand the need to build trust and gain the support of social societiesonly a ticket to ride. In order to create sustainability, leading companies that is neededare now focusing on all stakeholders, also involving governments, NGOs, to achieveinstitutions and social societies. sustainability. An excellent example of how AkzoNobel is creating thisWith a global increase in the consumption of resources, there is a trust is the Let’s Color Project ( trend among international companies towards increasingawareness of sustainable, durable and green business needs. This hasled to a shift from governments and NGOs establishing legislation tocompanies and social societies creating legislation. The shift will probablynot be endless, but it will get to a point where governments, NGOs,companies and social societies will work together to introduceimprovements to our world and society, setting new standards andcreating ‘green, durable and sustainable’ international legislation. 29
  30. 30. Philips is a company that According to Paul Polman, CEO of Unilever, there is a commitment gap continues to innovate to stay between what governments say and what they deliver on sustainability, ahead of the competition. which provides an opportunity for business, NGOs and society to take up Within this innovation the challenge. This challenge shows that Unilever already has all process, besides customers stakeholders in its sites. Unilever Press Releases on sustainable change. also opinion leaders and Next, he expresses the urgency to think about how to better shape your government officials are business models and a new future. Watch on YouTube already involved in the innovation process. Philips It is also definitely worth watching the following Youtube movie entitled has clearly taken the direction of focusing on all stakeholders by working “One Young World Global CEO Panel”, with 5 speakers. Watch on with governments and NGOs. See also: YouTube) YouTube.30
  31. 31. Trend 5: IntegrityConsistency – Unity in relation Integrity is often associated with In the Netherlands, integrity is often used as in the second concept: act good-evil conflicts, mostly in the from a just understanding of a relationship. With a marketing approach it sense of personal characteristics. is more about productivity and an emphasis on consistency, on top of the If we follow this association for necessary emphasis on unity in relationship. marketing, it is easy to get lost in a race to be the ‘most respectable person in the class’. Integrity marketing is a consistent mix We would say that reducing In short we believe integrity integrity to a ‘good-evil problem’ marketing is about the absence will lead to too narrow a of internal contrast combined perspective, and the marketing with customer insight, product capabilities from the integrity trend characteristics, services, will be much greater if we packaging, brand, price, approach it with a broad advertisement, promotion, perspective. sales promotion, personal sales, publicity and distributionIntegrity – consistency – relation channels. No matter what the marketing strategy of aThe word integrity comes from the company might be: as soon asLatin word integer, which means there are inconsistencies (and if‘untouched’, ‘flawless’ or ‘whole’. A they are there, they will emerge‘flawless whole’ implies something sooner or later) it will have a negative impact on sales.made from parts, and that all its partsare interdependent and interact. Take a practical example from the B2C market: the claim that a product or ingredient is ‘natural’ is obviously vague. The consumer will have anWhen we talk about integrity we want idea of the product, but the consumer’s image and the real product mixto emphasize two core concepts: can be quite diverse because of this vagueness. These kinds of• Consistency inconsistencies between the product mix and the experience will cease to• Unity in relation 31
  32. 32. exist according to market researcher Mintel. Producers will emphasize The compliance officer attempts to the usability of the product, instead of what the product is made of. enforce ‘rule-based’ integrity. Using what is referred to as a ‘tick box culture’ the marketer can use his Background: Everything is visible imagination to contribute on a The driving force behind this trend towards integrity and consistency is ‘principle-based’ solution that meets the recent increase in transparency in the B2C market. This penalizes the wishes of the customer. Where the knowledge arbitration, and has led to a transparency spillover from the compliance officer uses integrity as a B2C to the B2B market. The brake, the marketer uses it as an visibility of the value chain in accelerator. consumer markets has led to an increase in the availability of information and a subsequent Marketers do this by strengthening of consumer implementing a consistent activism. marketing strategy that covers all the parts of the value chain As a result, consistency in the and is true to the spirit of the marketing strategy will relationship that the consumer increasingly become more has with the product. The important. Transparency attracts criticism of the inconsistencies, whether consumer receives positive intentional or not, with all the subsequent consequences. Companies confirmation of his moral must therefore take a close look at their own value chain, and replace the contract with the producer parts that don’t fit their marketing strategy. when consuming the product or service. The consumer New marketing: consistency & moral contracts becomes a fan. Integrity doesn’t lead to new This is a big opportunity for both consumers and marketers: B2B paternalism but to new represents the largest part of economic activity and adding consistency marketing! could lead to a new branch of marketing. In this type of market the marketer will be a positive alternative to the compliance officer.32
  33. 33. Trend 6 InvestmentChoosing the Investment to makeThe banking crises of 2008, and the world economic crises of 2011 have to act in this way by countless marketing campaigns. Large companiesresulted in turbulent times. And something even worse may possibly be in are waging war with consumers and other competitors in an attempt tostore if we consider the political and financial issues that must be solved preserve their own 2012. In the meantime, customers throughout the world continue to We have forgotten how to re-pair,connect with each other, re-use, produce and to re-developing global trading habits, produce.getting closer and closer to oneanother, leaving very little room A good example is guerillafor distribution companies gardening in cities. It isbecause these customers are flourishing because it is not onlydoing business more cheaply a financial issue, it is aboutand quickly directly with the human nature and the need toproducers. create and re-produce. Give seeds to children, and theyOur planet is not only too small want to put them in the groundto maintain the pace of our and watch them grow.growing population; it is also toosmall to contend with significant Give seeds to adults and theynumber of large businesses first look on the Internet to findoperating on the world market. out about the ideal soil, temperature, and moistureBe more pragmatic about the levels… and by the time thechoices you deal with because: seeds should be in the ground,We have no choice other than our children will be harvestingto think about the right way we their produce.should be doing things. It is essential to learn again howWe must start to listen again to to re-connect with our planet,others and ourselves in order to understand what we both need. and re-connect with our neighbors, family and friends. Our digital lives have changed the way we interact with the world, but our needs asWe are returning to a sense of reality. We have become consumers on a human beings have not changed at scale, with almost no goods being made locally. We are triggered 33
  34. 34. So what should we be doing in 2012? Look at the momentum surrounding social media, use the energy that is being brought by individuals into those digital worlds and connect to people. Think about re-connecting with Mother Nature and think about the urge to create. Re-think how you conduct business and ask yourself: Am I going to continue to be a producer? If survival is your aim then it is time for a huge paradigm shift. You will have to come up with something new and worthwhile for individuals if you are in B2C, or worthwhile for companies, both new and old, if you are in B2B. If you truly want to survive and you are seriously motivated, then it is time This is not childish, it is very serious, unless of course you want to spend to re-organize your business. time looking on the internet for solutions instead of planting seeds to harvest this year. Be practical, follow this Just draw, it is only for you and no one else will see it unless you want to recipe: show it off. Be honest, don’t draw just to satisfy your brain, use your heart for the best effect. Ingredients: Follow these instructions: • A large piece of white paper (as large as you can find) 1. Draw your customer in the center of the paper. • Color pencils 2. Choose bright colors and draw something you expect your customer • A quiet place to think to be happy about. 3. Choose a dark color and draw something your customer would be disappointed about. 4. Don’t touch the drawing for at least 24 hours. 5. Then add some new features: one bright, and one dark. 6. Repeat the drawing-rest session at least 5 times. 7. Look at your drawing again.34