1. Source: Marketing Is Dead, Harvard Business Review, 9th August 2012

2. Todays marketing model is broken.Were applying antiquated thinking andwork systems to a new world of possibilities. Jim Stengel,CMO, Procter & Gamble 3. Todays Chief Marketing Officers confront a painful reality: their traditional marketing model is beingchallenged, and they can foresee a daywhen it will no longer work.McKinsey Quarterly 4. Technology is shifting power away from the editors, the publishers, theestablishment, the media elite. Now itsthe people who are taking controlRupert Murdoch 5. Time Spent Ad Spend 39% 31% 28% 26%16% 13% 12%9%Newspapers Radio TVDigital 6. Over 50% of Microsofts marketing communications will be delivered via digital channels by 2010 Steve Ballmer, CEO, Microsoft2007 Association of American Advertising Agencies Conference 7. EarnedPaidOwned 8. Owned & Operated mediaEarned media Paid media 9. Smoked 10. Smoked 11. TransactionalRelationship CollaborativeMarketing MarketingMarketingValue is associated with a Value is associated with customer Value is associated with View of valuecompanys offering. Maximize value relationships. Maximize lifetimeexperiences. Maximize valuein exchanges value of relationshipsof co-created experiencesPlace where value is exchanged between customers and the firm. MarketMarket as a forum where valueis separate from the value creation processis co-created throughView of market interaction and dialoguePassive buyers to be targeted with Portfolio of relationships to beProsumers activeRole of customerofferingscultivatedparticipants in value co- creationDefine and create value forAttract, develop, and retainEngage customers in definingRole of firmconsumersprofitable customersand co-creating unique valueSurvey customers to elicit needs Observe customers and learn Active dialogue with customersNature of Customerand solicit feedback adaptively about customersand communitiesInteractionSource: Mohan Sawhney, Kellogg School of Management 12. andrewpi@microsoft.comandrewpickupandrewpickup