21st Century Marketing

21st Century Marketing
What's New?
By Nathalie Derain
N. Derain – Clear Thought Consulting job application September 2009

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

Context: evolution of marketing
from the Industrial Revolution to the
21st century

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

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.
Socio-cultural
environment
Politico-legal
environment
Technological
environment
Physical
environment
Economic
environment
Demographic
environment
COMPANY

■ 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

Major changes in the macro-
environment create new
opportunities and challenges for
21st century marketing

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.

■ 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

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.

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.

■ 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

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...

■ 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

From new marketing practices to
enhanced marketing models

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.

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.

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!

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/

21st Century Marketing

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