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FEATURESHow to Build and Sustain a Brand
FOCUSCMR takes an In-depth Look at Customer Value
REPORTSEmbracing the 7Ps, Naturally
VIEWSMarketing in Uncertain Times
BRANDSUCCESSInnovate Your Way to a Brand That Stands the Test of Time
MARKETINGCAMBRIDGE
ISSUE
1 SUM
MER
2011
We are the music makers, And we are the dreamers of dreams, Wandering by lone sea-breakers, And sitting by desolate streams;— World-losers and world-forsakers, On whom the pale moon gleams: Yet we are the movers and shakers Of the world for ever, it seems.
With wonderful deathless ditties We build up the world’s great cities, And out of a fabulous story We fashion an empire’s glory: One man with a dream, at pleasure, Shall go forth and conquer a crown; And three with a new song’s measure Can trample a kingdom down. [...]
Ode[to the Marketer]
Arthur O’Shaughnessy, 1844 -1881
3
CO
NT
EN
TS
5 A welcome To The firsT ediTion
From Charles W. Nixon, Chairman of
Cambridge Marketing College.
6 how To Build A BrAnd like PixAr mAkes movies
12 AGency Profile: moBAs
An interview with Robin Bryant, Managing Director, and James
Wheatcroft, Director of Brand Strategy.
16 cAse sTudy: moBAs, meeT wiTh mercure
As part of their work for the Accor hotel chains, Mobas were
tasked with the development of a new proposition.
18 The new 4 cs of smAll Business mArkeTinG
Connections, Conversations, Credibility and Creativity.
20 lonG live The BrAnd
An article about something very simple which has profound
implications: the longevity of brands.
24 undersTAndinG And APPreciATinG Green mArkeTinG
How to avoid being the wrong shade of green.
31 deATh By A ThousAnd cuTs
32 hAs The inTerneT reAched TiPPinG PoinT?
How marketers must react to the crowded online market.
36 whAT is vAlue?
In an exclusive extract from their forthcoming book,
Harry Macdivitt and Mike Wilkinson get to the heart of value.
44 BuildinG The BeTTer Tech mouseTrAP
Do your B2B customers buy your product or service because you
have the best technology, the better mousetrap?
46 emBrAcinG The 7Ps, nATurAlly
A destination team’s journey into customer-focused marketing.
48 cAsh is kinG, BuT noT for much lonGer
There is a change on the horizon that promises to affect all of our
lives. Once key barriers are overcome, we will see the removal of
cash from society. It is a change that will happen much quicker
than you would ever imagine, and marketers need to be ready.
51 shAreholder vAlue versus shorT-Termism
The role of marketing.
52 mArkeTinG sTrATeGy in Times of uncerTAinTy
There were times in the last 50 years when we thought we knew
the name of the game, how to play it and which way was up.
Now we have all been dumped into what we are comforted to
know is a ‘recession,’ so we wait patiently for the uncertainty to
pass and for the old levers to start working again.
54 endnoTes
The Bestselling Marketing Books on Amazon.co.uk;
Digital Dashboards; Website Inspiration.
CONTENTS
FEATURES
REPORTS
FOCUS ON CUSTOMER VALUE
VIEWS
4
Publishing Editor: Chris Burgess
Chairman: Charles W. Nixon
Contributors: Laura Barton-Taylor, Nigel Bradley, Mike Farmer, Paul Fifield, Peter Fisk, James Lord, Harry Macdivitt, Malcolm MacDonald, Don Moyer, Melissa Nixon, Neil Wilkins, Mike Wilkinson, Tony Wilson, Paul Woodhouse, Laurie Young.
Contact: Cambridge Marketing Press 1 Cygnus Business Park Middle Watch Swavesey Cambs CB24 4AA
Tel: +44(0) 1954 234944 Fax: +44(0) 1954 234950 Email: [email protected]
Issue 1 Summer 2011
Front cover illustration: Robert Sprot
Cambridge Marketing Review is published quarterly by Cambridge Marketing Press
Printed by Kingfisher Press, Bury St. Edmunds, Suffolk: www.kingfisher-press.co.uk
The views expressed in contributions to Cambridge Marketing Review are not necessarily those held by the publishers.
©2011 Cambridge Marketing College under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 license (CC BY-NC-ND 3.0): http://creativecommons.org/licenses/by-nc-nd/3.0/ You may photocopy this magazine for collaborative study purposes. Individual images under licenses listed below:
Creative Commons Photo Attributions:
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(Page 22) Flames by Steve Ryan, 2008: http://www.flickr.com/photos/juniorvelo/2941512003/ Available under a Creative Commons Attribution-ShareAlike 2.0 License: http://creativecommons.org/licenses/by-sa/2.0
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CONVENTIONS:• Wearemarketersnotmarketeers;wearenot
cavaliers.• WepracticemarketingnotadvertisingorPR.• Whenwerefertoproducts,wemeanproductsand
services.Otherwisewerefertoofferings.
If you would like to comment, please contact the Editor, Chris Burgess: Tel: +44(0) 1954 234944 Email: [email protected]
Most Cambridge Marketing Review articles are accompanied by a word cloud from wordle.net. You can use our clouds to assess swiftly the themes of the article: the larger the word, the more times it appears in the text.
‘Marketing’ in many languages, drawn from Wikipedia references.
5
WE
LCO
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There is so much to say in startinga new journal that it is difficult to
know where to begin. Marketing, as asector, does not command the respect itdeserves.Thisisillustratedbythelimitednumbers of marketers on the boards ofmajorcompaniesandthewidespreadlackofunderstandingofthecrucialimportanceofmarketing.Webelievethattheabsenceofahighqualitymarketingjournalisbothacauseandasymptomofthis.
Marketing can be described as a sector, an industry, adiscipline,apracticeandavocation.Itissometimesasciencebutmore often an art.The imprecise nature of the subject is one ofitsadvantages,butitisalsooneofitsmainproblems;thegeneralpublic’sunderstandingofwhatitisthatwedoisshakyatbest.
“Marketersarenotgoodatmarketingthemselves”isaphraseoftenheard–anditistrue,thoughprobablyalsotrueofallprofessionsandthepracticeof theirowndiscipline.Ourability toargueourcasewhenchallengedinternallybyourpeersorexternallybythemedia has compounded the belief thatmarketing is all “pufferyandcost”and isnot tobe taken seriously. Is it thatmarketing isalwaysthehardestcosttojustifyandtheeasiesttocutbecauseitissolittleunderstood?
A MARKETER’S APOLOGy AlongthelinesofHardy’s ‘AMathematician’sApology’,weneedtobeclearabouttheimportanceofmarketingtotheeconomyandsociety.Thefactthatthatstatementmayraisesomeconcernsinthebackofyourmindistestimonytothestrugglewestill facetogetmarketingaccepted.OnecanalmosthearthescornfultoneofJohnHumphrysontheTodayprogrammeashereactstotheargumentthatweneedmarketinginordertomaintainasuccessfuleconomy.
Yet for many companies, marketing is a unique quantumphenomenon: it is both inside and outside (of the organisation)simultaneously.Itistheinternalrepresentativeofthecustomerandthemarket,and theexternalvoiceof thecompany.Thisparadoxneedstobeclearandunderstoodbyall.
As components are assembled into products, supply chainsbecome the weapon of competitive advantage. So ideas fromaroundtheworldneedtobeassembledtoformthenextinnovation.Sourcesofideas,instancesofexperimentsandexamplesofactionsneedtobefedtothemarketertocomeupwiththenextgenerationofproductsandservices.Thisjournalwillprovidethosestimuli:• Wewilladdressthelackofgeneralunderstandingwithinthe
professionandwithout;• Wewillexaminetheroleofmarketinganditsrelationshipto
otherdisciplines;• Wewilllookatmarketingpracticesfromaroundtheworldto
discussnewideasandnewproducts;• Wewillconsidertheclassicandthenew,measuringsuccess
andtheimportanceoftimeandtimingtoestablishingsuccessfulproducts;
• Wewillconsiderwhatsuccessis(!)• Wewillconsiderthephilosophyofmarketing,whyitisneeded
andhowpractitionersshoulddevelop;• We will look at the ethics of the marketer and what
responsibilitiesMarketersshouldrightlybear.
Though theseare just someof the issues facingmarketing today,CambridgeMarketingReviewaimstodefinetheplaceofmarketingintheeconomicprocessofsociety.
Overall,CMRaimstoprovidethebasisforthefutureacceptanceof marketing as a business fundamental and a respected careeroptionbyexploring,expoundingandexplainingmarketingasfullyaspossible.Wehopeitwill.
A WELCOME TO THE FIRST EDITION
From Charles W. Nixon, Chairman of Cambridge Marketing College
CHARLES W. NIxoN
6
Pixar is an amazingbusiness.Built onimaginationandcreativity,itharnesses
thepotentialofdigitaltechnologiestocreatethemostengagingcharactersandfilms.
In 1979 Star Wars creator GeorgeLucas and computer scientist Ed Catmullestablished the foundations of what wasinitially a digitally-enabled special effectsandadvertisingbusiness.SevenyearslaterSteveJobsacquiredthestudio,renameditPixar, andgavebirth to someof themostsuccessful animated films ever - like Toy Story, Finding Nemo andThe Incredibles.Today it is one of theworld’smostcreativebusinesses.
BRANDS NEED BIGGER AMBITIONSSimilarly,today’smostsuccessfulbrandshavemovedonfromspecialeffectsandadvertising-muchmorethanjustanameandlogo-tobeanenduringnarrative,embracingthedigitalandhumanworld,andcapturingthecreativeandemotionalessenceofabusiness.
Marketers are no longer support functions for sales, orbrief writers for creative agencies. They are the creative talent,making sense of the world around them, turning insights intoideas into innovations.Theyare thedrivingforceofbusiness, thechampionofcustomers,andtheguardiansof incrediblyvaluableassetscalledbrands.
FromAppletoZappos,AbercrombieandFitchtoBetterPlace,PaulSmithtoShanghaiTang,AirAsiatoVirginGalactic…Themostsuccessfulbrandshavebiggerambitions.
Thebestbrandsdon’t limit themselvestowhattheydo,theyarenotjustlabelsofownership,distinguishingonecommoditisedproduct or service from another. They define themselves oncustomers’terms,ontheiraspirationsandneeds–onbenefitsratherthanfeatures,ifyoulike.
Theyrecognisethewiderimpacttheycanhaveoncustomersandsociety,ratherthanjustcommunicatingrelevanceanddifferenceatthepointofsale.Theydefinewhattheyenable,ratherthanwhattheyare. In fact theyaremore thancommunication tools. Theygive business purpose, sharedwith customers.They give peopleconfidence, bring people together, and enable them to achievemore.Theymakelifebetter.
WORLD CHANGING, GAME CHANGINGWhy is it not enough for a brand to be a passive namewith adistinctive logo, a trademark that rarely changes, and a fixedpackageorcommunicationdevice?Weneed to lookathow theworld,markets,andattitudeshavechanged.
PETER FISK
HOW TO BUILD A BRAND LIKE PIxAR MAKES MOVIES
MARKETERS ARE THE CHAMPIONS OF CUSTOMERS
AND THE GUARDIANS OF INCREDIBLy VALUABLE
ASSETS: BRANDS
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As Pablo Picasso said, “times of turbulence are the mostexciting times,becauseeverythingchanges”.Customerpriorities,competitive positions, commercial structures: all are shaken up.Markets are no longer absolute, bordered and predictable. Andthereforeweneeddifferentmodelsofbrands,anddifferentwaysofmanagingthem.
Youmightcallita“VUCAworld”–volatile,uncertain,complexandambiguous–butatthesametimevibrant,unreal,crazyandastounding…atimetokeepyourheaddownandtoavoidriskandchange,oratimetolookattheamazingopportunitiesallaroundus.
Weallnowcompeteinglobal,always-onmarkets,whetherweintendtoornot.Sectorsconvergeandnewwhitespacesemerge.Customers have incredibly high demands and expectations, butlittletrustorloyalty.Disruptionisnormal,uncertaintyisexpected.Virtualityisthereality,combiningspeed,interactivityandreach.Atthesametime,businessismoreemotionalandempathetic,morehumanthanever.
Whilst many of us struggle to shake-off the hangover ofeconomic crisis, others realise that it was just the crying painsofachangingworld.Seismicshifts inpowerand influencehavechangedtherulesofourgame.Theshift fromwest toeast isnotjustaboutmoney,butaboutknowledgeandculturetoo.Thehotfashionsare inBuenosAires, thebestgreen tech is inShanghai,the topwebdesigners are inMumbai, andmost venture capitalisinShenzhen.
Technologyhasempoweredcustomerslikeneverbefore:theyaremoreinformed,havemorechoice,andaremorepromiscuous.Brandsneed to redefine themselves in termsofwhat theydo for
people,andthendeliveritontheirterms-when,whereandhowtheywant.Collaboratingwithcustomers, supply,distributionandaffinity brands (in the form of crowdsourcing, co-creation andpartnerships)hasbecome thenorm,creatingmoreflexibilityandhelpingtobuildmorerelevantandengagingsolutions.
Markets have fragmented with more specialism, yet remainlargewhenconsideredglobally.Beingspecialtoanichemarketisfarbetterthanbeingaveragetoeveryone(andspecialtonobody).Newmarkets emergeas categories collide, andnewpossibilitiesemerge.Gonearetherigidmarketboundaries,thenotionofyourhomemarketbeingtheclosesttoyou,andthatofcustomersandcompetitorsasabsolutes.Goneistheassumptionthatthefutureisanextrapolationofyourpast.
Areyoufocusedonthebigopportunities?Andifnot,whynot?Overthenext5years,femaleconsumerswillgrowfasterthanChinaandIndia.Within20years,theE7(Brazil,Russia,IndiaandChina–plusIndonesia,Mexico,Turkey)willbebiggerthantheG7,rentingwillreplacebuying,educationandhealthcarewillbetransformed,sustainabilitywillbecompulsory,andwaterwillbethenewgold.
Our marketing metrics have to change too. Market share,for example, becomes largely irrelevant. Profit is no longer aconsequence of volume. Share price is about potential morethanperformance.
Value networks, enabled by the likes of Alibaba and Li &Fung,replacetheneedforownedproductionandtheheadacheofinflexibleproductioncosts.3Dprintingenablesrealcustomisationofcarsandclothing,designandmanufacturingforcentsandwithinhours.Forgetcorecompetencies,youcandoanythingyouwant.
World changing: new markets, new opportunities, new priorities.
Sour
ce: C
reat
ive
Gen
ius
by P
eter
Fisk
THE BOUNCING DESK LAMP IN PIxAR’S LOGO IS LUxO jR., THE EPONyMOUS STAR OF THEIR FIRST SHORT FILM, PRODUCED IN 1986.
8
WELCOME TO THE IDEAS WORLDThe possibilities are limited only by your imagination. Ideasbecomethecurrencyofsuccess.Newmarkets,likesmartphones,arewaitingtobedefined.NobodywantedtoplayonaNintendoWiiuntilShigeruMiyamotodesigned it.Nobodyneededan iPaduntilJonyIvedeliveredit.
IDEAS NEED TO BE BIGGER AND BETTER THAN EVER The best ideas capture the attention of customers with infinitechoice,wherewant outplays need, and viral ideas spread freelybetweenpeople- rather thanbeingpushedataudiences throughinterruptivecampaignsusingexpensive,passivemedia.
Beating the competition is not to do with the size of yourbusinessoryourmarketingbudget,itisaboutout-thinkingthem-betterunderstandingthezeitgeist,developingthemostcompellingpropositions,seeingthefuturemoreclearly,andbringingtogethertherightpartnersandnetworkstosecureit.
BRANDS ARE ABOUT IDEAS, MARKETERS ARE THE CREATIVE TALENTPixar, therefore, is a fabulous metaphor for brand-building andmarketing in this new world. Like the best movies, brands areabout ideasmore than effects, storiesmore than icons,They areenabledby softwaremore thanhardware, touchingpeoplemoredeeplyandmemorably.
BUILDING A CREATIVE BUSINESSEmeryvilleliesjustacrossthebayfromSanFrancisco,andthis iswherethestoryofPixar,Woody,Buzz,NemoandMickeyMousetoo,unfolds…
Steve Jobs ismuchmore than a tech geek.He is aman ofextremevision,creativityandcommerce,withtheabilitytogetthebestoutofpeople.Inthelate80s,havingtemporarilyletgoofhisApplepassion(that’sadifferentstory!),hesetabouttransforminghisnewbusiness,Pixar,movingitfrommakingandsellinghardware,todesigninganddistributingsoftware.
SohebroughtinJohnLasseter,whohadabackgroundinoff-beat mini-animations, to drive his transformation. The two menshared a vision, not just of how they couldmake greatmovies,butofhowtheycouldtransformanindustry,bringingtogetherthebesttechnologiesandahumantouch(perhapsprefiguringtheiPodadecadelater).
Christmas1995sawthemuchanticipatedreleaseofToy Story.Itreceivedtremendouscriticalacclaim,generating$362millioninworldwide box office receipts and earning Lasseter anAcademyAward. On its success, Lasseter built a creative team of highlyskilledanimators,a storydepartmentandanartdepartment.Buthedidn’tjustwantgreattechnicians,hewantedpeoplewithinsightandimagination.Hesoughtanimatorswithsuperioractingability,peoplewhocouldsensehowcharactersandaudienceswouldfeel,deeplyandemotionally.
Dream machine: the step-by-step guide to movie-making, the Pixar way.
Source: Creative G
enius by Peter Fisk
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The new Pixar University quickly became the trainingschoolforanimatorsfromaroundtheworld,andPixardevelopedcomplete creative teams in-house, whilst the non-creativetaskswereoutsourced.
Moreblockbusteranimationsquicklyfollowed...A Bug’s Life,Toy Story 2,Monsters, Inc.,Finding Nemo,andThe Incredibles.Thesixfilmscombinedgrossedmore than$3.5billionatboxofficesworldwide,themostsuccessfulanimatedfilmsofalltime.
With each success, Pixar learnt more and invested in itsprocess, brands and audiences. It revolutionised the technologyof filmmaking, it transformed the expectations of audiences,and it gave children (and adults) across the world a newgenreofheroes.
MICKEy MEETS MONSTERS INC.In 2006, Pixar became a wholly-owned subsidiary of TheWaltDisneyCompanyina$7.4billiondealthatsawJobs,themajorityshareholderofPixarwith50.1%,takeaseatonDisney’sboardofdirectors.With7%ofallstock,hewasthelargestindividualDisneyshareholder.Anewbrandname,Disney·Pixar,wascreated,andasChiefCreativeOfficer,LasseterreportsdirectlytoDisneyCEOBobIger.HebecameresponsiblenotjustforPixar,buttheentirecreativeactivityofthegroup.
The Pixar blockbusters continued, as did the related themeparksandmerchandising-aresultofcarefullybuildingthemovieandcharacterbrands:personalitiesthatkidsloved,anddefinedtheirlivesby.CarsandRatatouille,WALL-EandmostrecentlyUpalltookAcademyAwards.
The stories reflected a changing world; more global, moretechnological,moremixedup.Thecharacters resonatedwith theshiftingaspirationsofpeople,imaginativeandemotional,notjustfunctional and rational, an eclecticmix of cultures and colours,backgroundsandfutures.Thestoriescouldbewatchedandwatchedagain,avirtueamidstdisposablemedia.
PixarStudioshasevolved intoaworkspace thatdefinesandinspiresthecreativeprocess.Jobswasneveragreatmoviemaker,butheknewhowtobringtogether1200creativepeopleandtheircollectivetalents.
Jobs designed big open spaces, atriumswith fabulous cafesandawood-firedpizzaoven.Heencourageddesignerstoconstruct(and decorate) their ownwooden sheds rather than sterile workstations,andprovidedscooterstohelppeoplegetaroundfaster.Herecognisedthattheorganisationneededto“loosenup”,tobemorefluidandhuman,inordertodrivecollaborationandcreativity.
TheUniversity ismuchmore thana trainingschool fornewentrants. Instead it can be seen as a constant source of eclecticlearningandprovocation–fromastrophysicsandspacetravel,toconservationintheAmazon.AtPixarUniversity,knowledgedrivesinsights,ideasandinspiration.Thisinevitablycreatesmorerounded,morethoughtfulpeople-andmaybethenextbigblockbuster.
PixarStudiosarelikeafusionofHollywoodandSiliconValley,justlikePixarisafusionoftechnologyandentertainment,artandcommerce.The Pixar creative process is not unique, but it doesbeautifully recognise and combine the need for inspiration andperspiration,executedbyaloyalandobsessiveteam.
Thestartingpointisanidea.Ideascomeinallforms,inspiredby all types of insights, but usually impulsive and unstructured.A short paper or, better, a visual poster, captures the proposalfor a new movie which is then explored by the whole team.Whilst this is a high-tech studio, it is still full of hand-drawingsandplasticinemodels.
The parallels for brands and marketing are everywhere inPixar:thepivotalroleoftheCCOandthecreativeteamwithinthebusiness,theprimacyofaudience,thebringingtogetheroftalents,the nurturing of ideas, the building of personality, the pursuit ofcompellingnarratives,thedreamsandemotions,alwaysdeliveringontimeandtobudget.Andarelentlessstreamofsuccess.
Maybe brands need to own more of their own creativity,ratherthanbeingsubservienttotheiragencies.Maybetheyneedtoimmersethemselvesdeeperintheworldtheyaretryingtosimulateandstimulate, tochallengeeachother, tounlockandmesh theirtalents,inamoresustainedandevolvingway.IndeedthemarketingdepartmentsofAppleandZapposaremore likecreative studios,thehubofbusinessthinking,deliveringstrategiesandinnovationsaswellasbrandsandcommunication.
Lasseter describes the process as “telling a great story, butnot too predictably,” maybe in the same way that a marketingprogramme needs to evolve rather than be a series of quickly-discardedcampaigns.Hetalksof“takingpeopletoanotherworld”whichequatestotheabilitytoreframebrandsincontextsthathavemorerelevanceforaudiences,andmorescopecommercially.Hetalks about “characters that people develop a deep bond with”which isat theheartofbuildinganemotionalconnection,doingmoreforpeopleandcreatingabrandtheylove.
WHAT CAN WE LEARN FROM PIxAR?Pixar isadigitalcontentbusiness,and inmanyways that’swhatbrandsaretoday.Beyondtheproductsandservicesthattheysupport,brands are about ideas, stories, relationships and communities,and the capturing and sharing of these. Increasingly, all this ishappeningdigitally.
Ofcourse,itisthewholestoryofPixarwhichisalessonforbrandstoday,notjustthewayinwhichPixarthemselvesusetheirbrands.Fewbrands,fewmarketingleaders,canhaveachievedthesuccessofLasseterandhisteam,eitherintermsofglobalawardsorcommercialresults.
It is more important to apply the lessons of Pixar’s creativeprocess to the challenge of brand building.This is where manymarketersarefallingbehind,andwheremanybusinessleadersfailtorecogniseitsimportanceandimpact.
Finding nemo IS PIxAR’S HIGHEST GROSSING MOVIE TO DATE, EARNING $867 MILLION DOLLARS AT THE BOx OFFICE, WORLDWIDE.
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BRAND BUILDING IN THE 21ST CENTURy InmynewbookCreative Genius,Iexplorethebestandemergingpractices for creativity, design and innovation. From Lego toWhirlpool,DonnaKarantoDaveStewart, I learntfromlargeandsmallcompanies,adagenciesand fashionhouses,architectsandrock stars. Pixar is certainly one of the best.Over 50 chapters Iexplorethemanydimensionsofcreativeexcellence,whichcanbedirectlyappliedtothechallengeofbuildingandmanagingbrands.Firstlet’sbeclearaboutwhatcreatesagreatbrandtoday.
Brandshavecomealongway.LookfarbacktotheBabyloniansof 3000BC, theChinesepotters of 1500BC, the cattle herders offeudaltimes,andeventhefirstwatermarksofpapermakers,andyouwillfind“branding”inaction.
Fast forward to modern times. In 1886, John PembertoninnovatedbrandiconographywithCoca-Cola,followedbyP&G’smastery of branding as a discipline, a leader through much ofthe20thcentury. Inrecentdecades,guidedbythelikesofLevitt,Kotler,AakerandBedbury,brandshavebeendefined in termsofownershipandidentity.
THE 21ST CENTURy BRANDThecharacteristicsofsuccessfulbrandshavechanged.Thedigitalandglobal,transparentandcollaborativeworlddemandsbrandingthat does more for people. Brands are more than companies,products and services. Brands are more than names, logos andcommunications.Brandsreachbeyondtransactionsandmarkets.
In a world where image and reputation can be built anddestroyedinaninstant,brandsneedtobestronger,richer,andinthehandsofthebeholder.Thisiswhythemovie-makinganalogyisuseful,andwhytoday’sbestbrandsare:• Aspirational–Brandscapturethedreamsanddesiresoftheir
audience,whattheyseektoachieve,ratherthansimplylabellingabusiness,productor service.Theyestablisha richer,morerelevantcontext,basedaroundtheirapplicationandpotential.Theyareaboutthem(thepeople)notus(thebusiness).
• Ideas-beyondnamesandlogos,productsorservices,brandshave a strong and distinctive idea. They capture a sharedpurpose, supported by values which come alive throughattitudesandbehaviours.These ideascancrossmarketsandcategories, supporting innovation and growth, even withdifferentidentities.
12 PIxAR INSIGHTS TO INSPIRE MARKETERS1. Imagineering:ideasarethestartingpoint,drivenbyinsight
and experience, and more often through imagination.Createan“imagineif”scenariowhichisgraduallyscopedoutandbroughttolifefromthefutureback.
2. Creative fusions:thisisnotaningredient,buttheessenceof the whole business. The creative process defines theorganisation, its operational and commercial models,enabledbythefusionofcreativetalents.
3. Deep immersion:thinkinglikethecharacter,andliketheaudience, is the skillof theanimator– recruitingpeoplewhoaregreatactors,whocanput themselves inside theheadsofotherstosee,feel,thinkandactliketheywould.
4. Storytelling: the core narrative that brings togethercharactersandexperiencesinawaythataddscontextaswellastheplot.Thisimmersestheaudienceandcapturestheir imagination, and makes it memorable and talkedabout.
5. Humanity:whilsttechnologyisessentialtoaPixarmovieintermsofproductionanddistribution,itisnotwhatmattersmost.These are human stories,where the characters tapdeepintotheemotionsandpsycheofitsaudiences.
6. Moving you: aPixarmovieisfunandentertaining,grippingand memorable, but more than anything it moves you.It inspires you, it makes you think, it challenges yourprejudicesoritmakesyoucry.
7. Viral infections: thesestoriesaretrulycontagious,becomingthe‘mustsee’ forgenerationsofchildren.Morethanjustadvocacy,Pixar’slatestfilmandthedesiretowatchitalwaysspreadslikewildfire.
8. Branded content: thebusinessisaphenomenalexampleofalargeandcomplexbrandarchitecturethatreallyworks,witheachbrandclearanddistinctive-Pixarisabrand,Toy Storyisabrand,andBuzzLightyearisabrand.
9. Personality:ateachlevel,thebrandsaremoreaboutasenseofcharacter,attitudeandbehaviours,ratherthannamesandlogos.Indeed,aslongastheessenceofthebrandisstrong,thevisualisationscanflexandchange.
10. Content spinning:beyondthemovie,licensingeachlevelofbrandsacrossmanydifferentproductsaddstotherich,ongoingexperience.Fromthemeparkstocomputergames,bookstoclothing,allarepartofthebusinessmodel.
11. Never ending:Pixarisarelentlessstreamofcreativesuccess,replicating themodel with evermore innovative stories,storieswhichthemselveshavenoend–living,evolving.
12. Inspired leaders:acreativebusinessisbydefinitionchaoticandunstructured,butthat’swhyleadershipmattersmore.Hereisaninspiringpurpose,ashareddirection,confidenceandclarity,ledbyanenergisingleader.
BRAND INNOVATION STARTS By THINKING FROM THE ‘FUTURE BACK’
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Peter Fisk is a bestselling author, an inspirational speaker, and an experienced marketer who has worked
with British Airways, Coca Cola and Microsoft. He is founder and CEo of the GeniusWorks, dedicated to helping
businesses think different things.
His latest book Creative Genius: the essential innovation handbook for business leaders, game changers and border crossers has just been
published. Find out more at www.theGeniusWorks.com or by emailing [email protected]
• Bold–Brandsaremoreambitious,theychallengethenorm,theystandoutfromothersandgowhereothersfearorhavenever imagined. They are iconic, or at least use icons todemonstratetheirpurpose.Theyaretalkedabout,questioned,exploredandlovedbecausetheyaredifferent.
• Enabling – Brands do more for people, giving them thefunctional means and emotional confidence to do whatthey never thought possible. Awareness and purchase arejustthebeginningsofadeeperbrandexperience.Advocacy,repurchaseandongoingcollaborationarestepstoabrandtoliveyourlifeby.
• Connecting – Brands build communities because peopleultimatelyenjoybeingwithpeoplewhoshareasimilarpassion,purpose or experience. Customers don’t want relationshipswith companies or products, but they do value brands thatfacilitatetheirabilitytoconnectanddomorewithothers.
BRAND INNOVATION IN THREE STEPSSo what is the essence of brand building today? Brandinnovation starts by thinking from the “future back”… Findingthe real issue, recognising theparadoxes, imaginingpossibilities,exploring potential scenarios, and deep diving for interestingcustomerinsights.
Newideasemergeinthemarginsmorethanthemainstream,maybetricklingupfromemergingmarkets;improvisationisagreatsourceofideas.LookatM-PesainAfrica,whereanewcurrencyemergedasaresultofpeople’saccesstomobilephonesandtheability to sendSMSmessages. LookatAravindEyecare in India,wherethelackofqualifiedhospitalsanddoctorsledtoaninnovativelow-costonlinesolutiontocuringblindness.
Fusionisthekeytodesigningabrandconcept:thefusionoffunctionandform,thefusionofbusinessandcustomer,thefusionof different ideas… Connecting the unconnected, learning fromother segments, sectors and geographies. More than anything,fusion comes through collaboration – working with customers,partners,academics,technologists,otherbrands,andsomeweirdandunusualpeople too.Samsungcall it the“taekuk,”findinganew balance between yin and yang, connecting opposites toachievemore,addingemotiontofunctionality.
From business models to brand architectures, products tocustomer experiences, everything can be designed better. ElBulli, the world’s best restaurant, builds its reputation on crazy,unusual fusions of ingredients. Christian Audigier built the EdHardybrandsensationbyfusingtattoodesignswithlatestfabrics,stylesandlicensingmodels.
Brandsmustultimatelydeliverresults–transformattitudesandreputations,buildengagementanddrive sales…Shortand long-term,creatingextraordinaryvalueforcustomersandshareholders.Impactisaboutlaunchingnewideasintomarkets,butalsoaboutmakingthemworkovertime.
Nike Plus transformed the sportswear brand’s performancethroughenablementandcommunity.Addingtechnologytoshoesthatmonitorandmapyourruns,thensharethemwithothers,theycreated theworld’sbiggestmass-participation raceever.Skoda istheunlikelyheroofVolkswagen,using itsdeeply loyal followinginEasternEuropetobecometheportfolio’smostprofitablebrand.
AndthenthereisStefaniGermatto.BetterknownasLadyGaga,shehasbeentheculturalsensationofrecentyears,havinglaunchedherselftotheworldinthesameweekthatLehmanBrotherswentcrashingtotheground.Withboldnessandattitudeshehaspolarisedsociety, harnessing social networks anddigitalmedia to becomethemostdownloaded,tweetedandtalkedaboutrockstarinhistory.
TO INFINITy, AND BEyONDBrandsarethemostvaluableassetsinbusinesstoday,andmarketersthemost valuable talent. Success in aVUCAworld depends onhow you think, how you seize the potential of technology andopportunitiesofnewmarkets,andhowboldandambitiousyouare.
Agreatbrandcancomefromanywhere:bigcompanyorsmall,emerging nation or developed, young marketers or experiencedleaders, limitlessbudgetsoralmostnone. It’snotaboutwhatyouare,buthowyouthink.OrtoleavethelastwordstoBuzzLightyear:“toinfinity,andbeyond!”
yOU SHOULD BE SEARCHING FOR IDEAS AND INSIGHTS, CHALLENGING THE RULES, CHANGING THE GAME …
LIKE BRANSON AND jOBS, CARRy A NOTEBOOK WITH yOU WHEREVER yOU GO.
Future lab: innovating brands from the “future back.”
Sour
ce: C
reat
ive
Gen
ius
by P
eter
Fisk
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PAUL WooDHoUSE
situatedintheleafyCambridgesuburbssitstheofficesofMobas,afullservice
marketing agency. The organisation itself,however, is not mirrored by its quaintsurroundings. In fact, anybody that triesto labelMobas in anywaywill be sorelywrong.This agency and its people are animpressive proposition and its success isbuiltonapassionatebeliefinwhatitstandsfor,whatitdoesandhowitdoesit.
EARLy DAySMobaswasbornonJanuary29,2003,thevisionofthreemen,twoofwhomarestilldirectorstoday.SpeakingtoRobinBryant,FounderandManagingDirector,andJamesWheatcroft,DirectorofBrandStrategy,thereisaclearfocusontheethosbehindthecompany:it’sallaboutbrand.
Aswith all agencies, thingswerenot automatically easy.Asthefledglingadvertisingagencystrivedtobuildaclientportfolio,thedriveandpassionofthedirectorshelpedtogrowasmallbutimpressiveclientbase.Moneywascomingin,butsomeriskshadtobetaken,asRobinrecallswithawrysmile:“CertainlyforthefirstthreeyearsofthelifeofMobastherewasavestedinteresttomakesureitworked.Icanrememberatoneverypreciouspointinmylifehavingafewthousandpoundsonacreditcardforprint.”
Theserisksweretaken,thedirectorsfirmlyconfidentintheirideas and creative instincts.They personally funded the project,but thispaidoff - todayMobasowesnomoney toanyfinancialorganisation,providingthemwithasolidcashbaseasaresult.
MOVING FORWARDThings really started to happenduring years four andfiveof theMobas story. Peter Chaloner replaced one of the original boardmembers, becoming the Client Services Director. At the sametime some large additions to the client base sawMobas start togrowmorerapidly.
Robin admits that despite the strengths that Mobas had atthe time, theacquisitionofabluechipaccountgaveMobas thecredentials to approach other large accounts with confidence.The first example of this type of client relationship that helpedto establish Mobas’ reputation came with the acquisition of itsNovotelaccount.ItwasatthispointthatJamesjoinedthecompany,wherehesuccessfullymonitoredanddevelopedtheaccountintoits present form.As a result of hiswork,Mobasnowhandle theaccountsofSofitel,MGallery,Pullman,Novotel,Mercure,Ibis,EtapHotel,andallSeasons,aswellasB2BAccor,whichincludesHR,SalesandDevelopment.
An interview with Robin Bryant, Managing Director, and James Wheatcroft, Director of Brand Strategy.
AGENCy PROFILE: MOBAS
Mobas’ clients are from a range of industries
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Robinfirmlybelievesthat thecompany’sability tonurtureaclient,buildtherelationshipandbecomeanextensionoftheclient’sorganisationiskeytoMobas’successasamarketingagency:“Thenatureof ourbusiness is that to ensure the growthandongoingsuccessofabusinessyouneedtogetlongestablishedaccounts.”However,althoughheappreciatesthatthishelpedtoacquireotherlargeaccounts,heisquicktoacknowledgethatthesmaller,regionalclientswerethefoundationonwhichMobaswasbuilt.
PASSION FOR CLIENTSMobashasapassionforworkingwithclientsofalldifferentsizeswithdifferentbudgets.There issatisfaction inworkingwith largeaccountsbutalso inhelpingsmallerones too.“Wedoalso loveworkingwith start-up businesses andwewill continue to do soaslongasIamstillsathere.Wefeelitisreallyimportant,”Robinenthuses,“IlovethebigbluechipsandIlovethebrandsandIlovethetopleveladvertisingthatJameslooksafterbecausethat’swherehispassionslieandcapabilitiesare.Ilovethestart-upbusinessesthatyoucangrow.”
ThebestexampleofMobasgrowingastart-upisthatofRanierTechnology, a company that Mobas has worked with since itsinception.“Weworkedwiththemtohelpthemachieveabrand,awebsite and all themarketingmaterial they needed to go outthereandachievefunding,”saysRob.“Whentheygotfundingtheythenpaidus.Iftheydidn’tgetfundingtheydidn’thavetopayus!”Oversevenyears,MobashashelpedgrowRaniertoamulti-millionpoundcompanythattradesglobally.
However,itwaswiththegrowthoftheNovotelaccountthatMobas has been able to develop a portfolio that spans finance,food,technology,healthcare,propertyandthepublicsector,amongothers.HavingworkedformanyLondonagenciesbeforefoundingMobas,Robinbelievesthatlargecompaniescanlookoutsidethecapital for creative, innovative partners. He believes that eventhoughMobas is smaller than most pan-European agencies, therightattitudeandworkethicmeansthatMobasoffersauniqueandstrongeralternative.
Robin uses the constant availability of all staff, from top tobottom, as an example of this. If a client called him late to askhim to be in London at 9:00am the followingday, hewouldbethere.Thisissomethinghedoubtswouldhappenatalargeragency.“Thebigdifferencebetweenasmallandmediumsizedagencyandthelargeboysisthatpersonalcontactwithseniorpeople.Wecanmakeadecisionandmakeacallandcanspeakconfidentlyaboutwhatwedoasanagencyfortheirbrands.”
Duringyearfive, asMobas reached thispeak, the recessionhit.Alotofmarketershadatoughtime;somearestillcomingtoterms with the effects it has had. Both agencies and client-sideorganisationshadtocuttheirclothaccordingly,butdidthishaveaneffectonMobas’growth?
Infact,thecompanycontinuedtogrowduringthisperiod.ItmovedfromitsofficesinSheprethtoitscurrenthomeinStapleford,justontheoutskirtsofCambridge.Ittookonsevennewmembersofstaff,nowemployingatotaloftwentysixpeople.RobinattributesMobas’recession-beatingsuccesstoitsstaff’ssolidcommitmentto
WE SUPPORT ACCOR’S ONGOING MARKETING WORKLOAD AS ONE OF THEIR TEAM. WE’VE ACTUALLy GOT A DESK AT THEIR OFFICE NOW!
I LOVE THE BIG BLUE CHIPS, I LOVE THE BRANDS, I LOVE THE START-UP BUSINESSES THAT yOU CAN GROW
Robin Bryant, Managing Director
James Wheatcroft, Director of Brand Strategy
THE NAME ‘MOBAS’ WAS CREATED By TAKING THE INITIALS OF THE AGENCy’S FOUNDERS AND ADDING TWO VOWELS. THIS LEAVES A NAME THAT IS PRONOUNCED THE SAME WAy IN ANy LANGUAGE.
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theMobasbrand,abilitytoworkwithinconstrainedbudgets,andsolidcommitmenttotheirclients.Mobasactuallygrewitsaccounts,includingAccor,asJamesexplains:“We’veseenourclient’sheadcountfrozenandyettheirresponsibilitiesgrew.Workingcloselyasapartneragency,wesupporttheirongoingmarketingworkloadasoneoftheirteam.We’veactuallygotadesktherenow!”
During thisperiod,Mobas found ithad toadapt tomeet itsclients’needs. Itdecided to invest in theadditionofpeoplewitha spread of skillsets including digital specialists, public relationsexperts, brand strategists, copywriters, creative designers andvideo producers. Robin and the senior members of the Mobasteamrecognise theneed toutiliseeverymemberof its teamandto build knowledge, expertise and disciplines. “We are a brand,design, digital and PR organisation that specialises in marketingcommunications.Weareafullyintegratedagency.”
THE PEOPLEBut what does it take to work for an innovative and boundarypushing agency like Mobas? Robin lays it out like this: “Withregardstorecruitingfordesign,Idon’treallycareaboutdegrees,Idon’treallycareaboutqualifications.WhatIcareaboutisthatanindividualcandesign.WithregardstoAccountManagement,thatisacompletelydifferentbagandcompletelydifferentskillset.Beingabletocommunicatereallywell,beingabletodeliverconceptsandpresentationsreallywell, tobeable toputstrategicpresentationstogether is really key. Having qualifications here is importantbecauseitshowsanabilitytodothat.Aboveallyouwanttobeabletobuildrelationships.”
Professional qualifications are also important to Robin:“Something that we’re really driving home on now ismarketingcoursesliketheCIMcourses.Thatmarketingbackgroundisreallyimportanttocertainareasofthebusiness.”
The reward isworking in an open, vibrant and incentivisedculturewhereeverybody’s input isvalued,asRobincontinues toexplain:“Everybodyisallowedtobecreative,everybodyisallowedanopinion.Ihonestlygointomeetingsandsay‘lookguys,digitalisawholenewworldtome.’That’swhyweemployspecialists.”
He also admits that working with demanding clients cansometimesbe tough,butemphasises thatMobas iscommitted torewarding its staff for their efforts: “Through the recession,we’vecontinuedtogivepayrises,we’vecontinuedtogivebonuses,we’vecontinuedtodosummerparties,we’vecontinuedtogoonChristmaspartiesbecausewerespectourstaff.Withoutthemit’sallcompletelymeaninglessbecausetheirtalentiswhatmakesMobashappen.Itisn’tmeanditisn’tSteve[Smith,FounderandFinanceDirector]anditisn’tPete[Chaloner],itisthepeoplethatmakeupMobas.”
RELATIONSHIPSBuilding a strong ongoing relationshipwith clients has been thekey behind Mobas’ achievements. This is through the intimateknowledge of each and every single account and themarket inwhich theyoperate.Robinexplains thatMobasare so integratedwithin the organisations with which theywork that clients haveaskedthemtowritestrategicplansforthem.“Theywantustodoitbecausetheytrustus...theyknowthatweunderstandtheirmarketssoincrediblywell.”
This trust is built on very thorough research and goingfar beyond the call of duty. For example, Mobas went beyondexpectations forNovotel,asRobinrecalls:“Wedidagrand tour,unpaid, of all of the Novotel hotels across the UK, which wasthirty.Now,wedidn’tcharge for thatbecauseourphilosophy is:howcanwepossiblymarketyourbrand,andthereforeultimatelyyourproduct[otherwise?].Ifwedon’tknowyourproductwedon’tknow your brand.”This took a wholemonth but it proved veryvaluableasMobasexperienced theproduct, andmetwithallofNovotel’sgeneralmanagers.
This philosophy drives other parts of the business. Wheresome agencies charge formileage and the cost of a phone call,Mobas do not. “We always say to clients that if youwant us tosit down for a half daybrainstormwewon’t charge you for thatbecausetheoutcomeiswherewecharge,”Robsays.“Thechargeis for the product, we charge for what we produce. If Jamessits there and produces a brand strategy document that is theoutcomeofahalfdaybrainstorm,thenthat’swhatwechargeforandthat’sreallyimportant.”
Robin explains that the decisions the directors took in thecompany’s infancy have helped Mobas to maintain the strongcashbasewhichallows thishigh levelof service tobepossible.“IcouldsaytoJames,‘rightyougooutforamonthontheroadandseeallthehotelsandI’llgetsomebodyintocoveryou.’That’sgoingtocostme£4000butthereturnonthatisthattheclientgoes‘wowthese guys are so committed to us thatwe trust themandwe’regoingtospendwiththemandwe’regoingtorelyonwhattheysaybecausethey’vetakenthetimeandthefinancialimpacttogoandunderstandmy brand,’ and that’s really crucial.”Mobas attribute
Mobas employs specialists with a range of skillsets
WITHOUT OUR STAFF, IT’S ALL MEANINGLESS
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winning numerous client briefs, including a rebranding pitch forTheCambridgeBuildingSociety,tothiswillingnesstogotheextramiletounderstandthecustomerexperience.
This approach of actually experiencing the brand ratherthan just taking a client’s word helps Mobas to challengemisconceptions,RobinandJamessay.Theywanttoexperiencethebrandtheyareworkingwithtotheextentwheretheyknowmoreabout it than theclientdoes.This isnot tobelittle theclient,butto help themunderstand that sometimes there are gapsbetweenwhatmanagement perceives the customer experience to be andwhat is actually happening. As James explains: “The client sidemarketingmanagers, they haven’t got time to be doing that andthey’retooclosetoit.”
Mobas’ drive to communicate its unalloyed experience of abrandbacktoitsmanagementforgesstrongrelationshipsbetweenthe agency and its clients. This has helped Mobas to win newbusiness but, as importantly, it has helped to retain business aswell.Thecompanypromotestheirworkwithbrandsthroughtheirconcept of ‘TheBig Picture.’This is, as James explains, “Mobas’uniquestrategyforworkingwithbrands.Itistheprocesswehavedevelopedtohelpclientsseetheirbrandasconsumersorcustomersdo.”Thisdedicationtolookingat“TheBigPicture”epitomisesthewaythatMobasgoesaboutitsbusinessasacreativeagencywithtrulyintegratedcapabilities.
So thatclientscangainsimilar insight intoMobas in return,ithasstarted todesignandprint itsownmagazine,On Brand,a38-pageglossypublication.Robinexplainswhythishasbeenputtogether:“Weliketokeepourclientsinformedaboutwhatwe’redoingandwherewe’regoingandwhatourstrategyis.Weplantheirstrategiesandwherethey’regoingandlookaftertheirbrands,butIthinkit’simportantthattheyunderstandwherewe’regoingonourjourneysotheycanmakeachoiceaboutwhethertheywanttobeapartofthatandhelpustoachievethatornot.”
LOOKING TO THE FUTUREThis takesus to the currentmarketing landscape:what is on themindsofMobas’clientsrightnow?
With the changes in advertising since Mobas started, andthegrowth indigitalmediaandsocialmedia,hasMobas seenachangeinattitudes?“There’sabsolutelynoshadowofadoubtthatthedigitalworld isgrowingandgrowing rapidly,”Robin reflects.“Itwasonlytwoyearsagothatwehadanofficeonlyhalfthissizewithfourdevelopersin.They’venowgottheirowndepartmentandthatnumberhasdoubled.Althoughfullyintegrated,we’reproudtohavebluechipclientsthatuseusonlyforourdigitalservices.Thatdoesn’tmeanthattherestofthebusinesshasshrunkorstayedstill:ithascontinuedtogrowaswell.
“People will always need offline but where we’re shapingour business to suit that growth in demand is that we’re nowbrand,design,digital.”
“Thechallengewithdigital is that it changes so fast,” Jamesadds.“Idon’tthinkthatclientsoftenhaveastrategyforhowdigitalfitsin.Theythinkthere’sanewchannelsothey’llnowjumponthat.Forexample,withsocialmedia,whileithasitsusesandmerits,Idon’tthinkthateverybodyshouldhaveaFacebookpageforinstance.Insomeindustriesitispointlessandforcedbutthere’satendencytogo‘IneedtodothatandIneedtodothat,’wheninactualfactitbecomesamoredilutedmessageacrossmorechannels.Whenyouhaveamoreintegratedstrategythatalsoincludesoffline,that’swhenitreallyworks.”
Robinbelievesthatsomeofthedeclineinofflinemediaandadvertising has been something of a red herring brought aboutby therecessionandreducedbudgets:“Ifyoulookat thefiguresnow,intermsofofflineadvertisingspenditisincreasingagain,soIthinkpeoplejustredirectedtheirbudgetstoonlinebecausetheythoughtitwasmorecost-effective.Therefore,theycouldcoverandtrackthereturnoninvestmentandjustifythespendtotheirseniors.Ithinknowthatweareallcomingoutoftherecessionandthingsare picking up again, I think we would all find that the spendwill increase again in both online and offline - they work bestwhenusedintandem.”
Ifthisisindeedthecase,thenRobinandJamescanhavelittletoworryabout.Havingweatheredthestormofthisrecession,evengrowingthroughit,Mobasisaterrificexampleofagroupofpeoplewithambitiousideasandarefreshingapproachtoclientcareandrelationship-building.The combination of this approach and thepassion of every member of its staff has rewarded Mobas withundoubtedsuccess.“Weprovedexactlywhatwelookedtoprove,”saysRobin, “weproved that youdon’t have tobe abig Londonagencytolookafterabigaccount.”Thiswas,afterall,oneofthereasonsthatRobinstartedMobas,andheisdefiantthathiscompanywillcontinuetoprovethispoint.
Paul Woodhouse is a Marketing Executive for Vetspeed Ltd. With a career spanning many sectors on both agency and
client side, Paul has a passion for writing, and freelances for Cambridge Marketing College and other organisations.
THE BIG PICTURE‘TheBigPicture’ isMobas’uniquewayof lookingatandworkingwithbrands.Ithelpsbrandstogrow,flourishandstay relevant through day-to-day communication. Mobasunderstands the fundamental elements that shape andimpactbrands,whetherthey’recreatinganewbrandforaproduct,identifyingastrategytoextendabrandportfolioorre-brandingawholeorganisation.‘TheBigPicture’hasbeendeveloped as a result ofmerging left-brain creative typeswithright-brainstrategiststocreateateamofover25highlyexperiencedstrategists,designersandplannersworkingontheemotiveandtangibleaspectsofbrands.
ACCOR IS THE WORLD’S LEADING HOTEL OPERATOR AND MARKET LEADER IN EUROPE, OPERATING IN 90 COUNTRIES
WITH NEARLy 145,000 EMPLOyEES.
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THE MOBAS APPROACHBrand researchUnderstanding what’s going on in the client’s industryandhowtheirbrandfits.Whatarethetrends?Whatisthecompetitive environment? What insights can be drawn?What are their customers’ purchase and experientialjourneysandwheredoestheclienttouchthebrand?Whatdocustomersthinkandwhatmakesthemtick?Brand strategyWorking with the client to define clear and relevantpropositions for their corporate or product brand, andcreatingavisionforthefutureofthebrand.Mobaswalksthemthroughtheprocess,ensuringtheagencygainsbuy-infrom the client’s internal stakeholders throughworkshopsandinsightsessions.Theresultisastrategytocreatenewcustomerperceptionsaboutthebrand.Brand designCreatingidentitiesandcommunicationplatformsforbrands,withfullunderstandingofchannels, languagesandvisualmessaging.Thismeanscreatingnewbrandidentities,andevolving existing brands and platforms for collateral andcommunications–everythingfrombrochurestoe-commsto web banners to packaging and in-store POS. Mobasbecomesthebrand’sguardian.Brand PRMonitoring and creating the voice of the brand – mostimportantly, Mobas is the window to discovering whatcustomersaresayingabouttheclient.BrandLive!This is howMobas describes the ongoing experience ofworkingwith brands.Mobas is a brand ambassador, butis alsoa ‘chameleon’ thatbecomepartofmarketingandoperational teams todevelopand leadbrands long-term.Adedicatedaccountteaminspireandchallengethebrand,ensuringitsfuturelong-term.
AsamajorongoingpartoftheAccorhotelsaccount,Mobasworks strategically and creatively on the Mercure brand.
MercureisafastgrowingbrandintheUKwithover30three&fourstarhotels,andhasover700hotelsworldwide.
MobasworkedwithMercure to develop their newmeetingproposition‘MeetwithMercure.’Untilthen,Mercuredidnothavethebrandedproduct thatmanycorporatebookers look forwhenbookingbusinesstravel,meetingsandconferences.Thechallengewas tocreateapropositionandconcept thatwhileappealing tocustomerswouldalsobefittingtoallinternalstakeholders,withtheend-goalofexpandingtheproductacrosstheirgrowingnetwork.Aswithallbrands,consistencyneededtobeakeydrivingfactor.
MobasworkedcloselywiththeMercureUKMarketingteam,theirteamfromOperations,anddirectlywithhotelstoensurethattheconceptwasright,andhitthemark.Mobasstartedbyresearchingthe industryandcompetitiveset toseewhatwashappeningandwhattrendswereemerging.Asbusinesstravelandmeetingswerehit very badly during the downturn, finding the right gap in themarketwasessential.
Mobasthenworkedwiththeinternalteamstounderstandtheimportantfactorsinvolvedwhenbookingorattendingameetingatanexternalvenue.Whatarethepains,andwhatdifferentiatesonebrandfromanother?
Mobascreatedaselectionofmeetingpropositionsdefinedbykey‘consumerdrivers’thatwouldresonatewiththeintendedtargetmarket.Mobaswasakeydriverinpushingtheprojectforwardanduseditsrangeofservicestodevelopa360brand.
Focus groups were held to test the concepts and creative,whichwas then refineddown into thefinalconcept/proposition.Aspartoftheirfullyintegratedservice,Mobasthendevelopedtheroll-outofthecreativeacrossallchannelsandplatforms,creatingmarketingmaterialandlocaltoolsforhotelstoadaptandadopt.Theseincluded:• Thecoreproposition• Developmentofbrandpillarsandpromise• Branddesign• Brandvideo• Acreativeonlineplatform• Salestoolandtemplates• Standing operations and procedures to ensure rollout
consistency
The launch has been a huge success and the 360 degreeapproach taken by Mobas has ensured that the proposition isrelevant, compelling, and consistent, andwas delivered on timeacrossallstakeholders.
As part of their work for the Accor hotel chains, Mobas were tasked with the development of a new proposition.
CASE STUDy: MOBAS, MEET WITH MERCURE
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Overview of Available Programme ElementsThis 35 hours can be made up of a variety of activities. The Cambridge Chartered Programme covers most of these, thereby offering you a selection of activities to undertake to satisfy your interests and CPD requirements.
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*Two years Continuing Professional Development is required initially to achieve Chartered Status. Thereafter you are currently required to continue with 35 hours of CPD activity to maintain the status. This figure is likely to increase.
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As a reader of Cambridge Marketing Review, you should be a Chartered Marketer. You have the necessary qualification(s) and are a practicing marketer, so you should be at the top of your profession: you should be Chartered.
With the growing competition in the jobs market, Chartered status is the ultimate way to stand out. As with other professions such as Accountancy, Chartered status is becoming the accolade to achieve.
The achievement of Chartered status has seemed daunting to many because of its complexity and time-consuming paperwork. The solution is now at hand: a simple one-stop service of administration and content to satisfy all your needs, all for the cost of a standard course.
The Cambridge Chartered Programme handles all the paperwork and liaises with the CIM to obtain your acceptance as a full member, then enrols you onto the necessary programmes to satisfy your CPD requirements.* Your activities are registered and logged each year, keeping you up to date and concentrating on what you need to, not on the paperwork.
PRactiSE PERSonal
SkillS
dEvEloP SPEcialiSt
SkillS
bEcoME MoRE
EfficiEnt and
EffEctivE
accESS REfEREncE
infoRMation
EngagE with
othER MaRkEtERS
kEEP UP to datE with MaRkEting
dEvEloPMEntS
AD
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thE nExt StagE in yoUR caREER StaRtS hERE
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few theories have endured as well asJerome McCarthy’s 4 Ps (Product,
Price, Place and Promotion) which werefirstsuggestedin1960.
There have been many imitatorssince, e.g. the 7 Ps (McCarthy’s four plusPeople, Process and Physical evidence),the 4 Cs (Consumer, Cost, Convenienceand Communication), and Ogilvy andMather’s4Es(replacingMcCarthy’sPswithExperience, Exchange, Everyplace, andEvangelism,respectively.Fetherstonhaugh,2009).
Each has its merits for the ‘text book’ brand with a finelytuned pricing strategy, manageable distribution channels and apromotionalbudget,buthowusefularethesemodelsforthesmallbusiness-to-businessenterprise?Howdoestheentrepreneurwhois trying tobuildupa recruitmentorwebdesignbusiness,oranarchitecturepractice,applytheseprinciplesinanypracticalway?Inmyexperience,notveryeasily.Usuallythepersonorpeoplebehindasmallbusinessaretheproduct,thepriceisdeterminedbywhattheirexpertisecancommandandpromotionoftenrevolvesaroundtoday’s favourite business pastime - networking. In other words,mostof themarketingmixrevolvesaroundthe individuals in thecompany:theyarethebrand.
Soweneedanothermodel,onewhichismoresympathetictotheneedsofthesmallbusinessowner.Thisarticleoutlinesmynew4Csofmarketingwiththesmallbusinessentrepreneuratitsheart:apracticalstrategyfortoday’schangingbusinesslandscape.
CONNECTIONSThese are all the people who in someway have entered into aperson’s business world. LinkedIn connections, contacts on anemail database, business cards harvested from long-forgotteneventsor a list of peoplewhomightbe telephonedperiodically.Unless someone runs one of those enviable businesses thatthrives on referrals, connections are likely to be the sourceofmostnewbusiness.
Therealityhoweveristhatconnections,leftontheirown,don’tusuallydoverymuch. In fact theymightnotdoanythingofanyconsequencewithoutthenext-andpossiblymostimportant-stageinourmodel.
CONVERSATIONSI havebeen tonumerous seminarswhere speakershave toldmeaboutall thenewbusiness theyaregetting throughsocialmediaand implying I should be gettingmy share too, but no one hasreallytoldmeexactlyhowtheyhavedoneitinawayIcanapply
THE NEW 4 Cs OF SMALL BUSINESS MARKETING
Connections, Conversations, Credibility and Creativity.
MIKE FARMER
WE NEED ANOTHER MODEL, ONE WHICH IS MORE
SyMPATHETIC TO THE NEEDS OF THE SMALL BUSINESS
OWNER.
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tomy business.Were they holding something back or had theytoonotquitedefinedthatpartofthedigitalalchemywhichturnedconnections into commercial gold? It wasn’t until I got my firstcoupleofclientsthroughsocialmediathatIdiscoveredwhatwasmissing–conversations.
Creatingopportunitiesfordirectconversationsistheonlywayto maximise the potential of your connections.Whether this ismeetingatanetworkingevent,tweetingsomeonedirectly,sendingadirectmessagethroughLinkedin,oragoodoldfashionedphonecall.Unlessyoucanfindareasontomakedirectcontact,tohavetheseone-to-oneconversationsandtostartbuildingrelationships,your prospects will never make that all-important leap fromconnectiontoclient.
CREDIBILITyWhenyouarehavingtheseconversationsdopeoplereallybelievewhatyouaresaying?Willtheybeconvincedthatyoucandowhatyousayyouaregoingtodo?Notjustwhatyousaydirectly,butwhateverythingelsesaysaboutyou:yourbusinesscard,onlinecontent,LinkedInprofile,andprintedliterature(yes,theprintedwordstillhasaroletoplay).
Quitesimply theeasiestway tobecredible is tobehonest.Ifyoufindyouarebeinghonestandcrediblebutnotgettingtheresponse youneed (whichdidhappen tomybusiness about 18monthsago)itmaybetimetothinkseriouslyaboutchangingwhatyouaredoing rather than simplychangingwhatyouare saying.Morethanever,businessestodayshouldregularlyconsiderifwhattheyaredoingisstillrelevant.Willtherestillbeamarketforwhattheyareprovidinginthreeorfiveyearstime?Ifnot,itistimetothinkaboutdoingsomethingelse.
For the last 20 years, Mike has been running a design and marketing company, developing and implementing marketing communications
campaigns for clients throughout the UK.
Mike is also a Director of a small charity working in East Africa and has worked as a business mentor under the North West Development Agency’s business mentoring scheme. Mike tutors the CAM digital
marketing course for Cambridge Marketing College.
Connections ClientsOne-to-oneConversations
BE CREDIBLE• Do what you say you are going to do• Be consistent• Don’t oversell
ADD CREATIVITY• Say things differently• Use strong imagery• Less is more• Think benefits, not features• Why are you different?
Adding to the pool of connections is essential to fuel the marketing pro-cess:• Contacts from events• Linkedin connections• Twitter followers• Telephone marketing• Email marketing
Using the New 4 Cs
one-to-one conversations aided by a credible ‘story’ presented in a creative way turn connections into clients. Most conversations will lead nowhere and many connections will always be just connections. At the other end of the process some clients may start to drift away. Conversations here can ‘intercept’ them before that happens and help retain them as active clients.
CREATIVITyPresentwhatyouaredoinginawaythatwillgrabpeople’sattentionandwillhelpthemrememberyou.Perhapseven,insomesituations,taketheviewthatwhatyouhavetosayaboutyourbusinessjustmaynotbethatinteresting.Sosaysomethingelse.Ifpeoplerememberthatthenthereisachancetheywillrememberyou.Buildingbusinessrelationshipsdoesnothappenovernight,soyoudon’tneedtotryandclosethesaleatthefirstopportunity.
IN SUMMARy:Toapplythismodeltoyourownoryourclient’sbusiness:Work continuously build to build your Connections; createopportunities to engage in one-to-one Conversations with them;makesurewhatyousay isCredibleandmakeyourconversationsmemorable by being Creative. Get that right and you can addanotherCtothemodelasconnectionsstarttobecomeCustomers,ClientsorCollaborators.
REFERENCE:
Fetherstonhaugh, B. (2009). The 4 Ps are out, the 4 Es are in. Ogilvy [online]. Available at:
http://www.ogilvy.com/on-our-Minds/Articles/the_4E_-are_in.aspx [Accessed May 2011].
ACCORDING TO THE FEDERATION OF SMALL BUSINESSES, THERE ARE 4.8 MILLION SMALL BUSINESSES IN THE UK. SMALL AND MEDIUM-SIzED
FIRMS EMPLOy MORE THAN 59.8% OF THE PRIVATE SECTOR WORKFORCE.
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A few years ago I was returningfromamarketingconference inAmerica. I had heard speaker afterspeakerfill theirpresentationswithanunchallenged consensus: that marketswere changing very fast, that theywere becoming more global, andthat customers were becoming moredemanding.Asaresult,competitionwasincreasingand itwasdifficult to createenduringvalue.“Theproductyoulaunch
onaMondayisacommoditybyWednesday”.BythetimeIwasattheairport,Iwastired,thirstyandhungry;
soIwanderedintoabar.AsIlookedatthebeers,Inoticedtheage
ofKronenbourg(1664)andBudweiser(launched,thebarmantoldme, in1886). IknewthatCoca-ColawasquiteoldandresolvedtolookitupwhenIgothome(itwasalsolaunchedin1886,justbeatenbyDrPepper1885).
Later,Iwanderedintodutyfreeandwas,again,struckbytheageofanumberofbrandswestilluse today.AmericanWhiskyslikeSouthernComfort(1874)andJackDaniels(1866)satalongsideperfumeslikeChannelNo5(1925)andwatcheslikeBreitling(1884).
I spent the remaining time before my flight collecting thenamesofbrandswhichIthoughthadbeenaroundalongtimesothatIcouldlookthemupwhenbackathome.Ihavekeptgoingsinceand,adecadelater,havealonganderraticallycompiledlist.Itcomprisesthecategory,countryoforiginandstartdateofbrandswhicharestillsoldtoday.Iamnotanhistorianoranacademicbutthereseemtobeseveralobviousimplicationsofthissimplelist.
A FEW SURPRISES IamnotinthedrinksindustrysoIwassurprisedthatBailey’sIrishcreamissonew(1974).Ihadassumedthatitwasaheritagebrand.IwasnotsosurprisedbytheageofsomeChampagnesandspirits(VerveClicquot,1805;Glenfiddich,1887;JackDaniels,1866)butIwastakenabackbyJimBeam(1795),RemyMartin(1724),Martel(1715)andBushmills(1608).
LONG LIVE THE BRAND
An article about something very simple which has profound implications: the longevity of brands.
Iwasastonished,though,attheageofsomeofthebeersthatarearoundustoday.ItisenoughthatarelativelynewcountryliketheUSAhasbeerbrandshundredsofyearsold(Schlitz,1849,forinstance)butEuropecanboastnotonlyofKronenbergandCarlsbergbutalsoGreeneKing(1799),Guinness(1759),Lowenbrau(1383),Stella Artois (1366) and, astoundingly,Weihenstephan (1040). Ihavestudiedmarketingtomaster’slevelandbeenonmanycoursesinmytime.NotoneusedacasestudyofbrandscreatedaroundthetimeoftheNormanConquest.
I knew that several banking brands were quite old (HSBC,1865;Santander,1857)butBarclay’s raisedaneyebrow(1690). Iknewthattea(Twining’s,1706)andcoffee(DouweEgberts,1753)were introduced to Europe in the seventeenth and eighteenthcenturiesbutIwassurprisedbytheageofsomeChineseteabrands
(PiLoChunhasbeenbrewedfortwelvehundredyears)andotherdrinks (Schweppes, 1783; Cinzano, 1757; and San Pellegrinolocally available since 1200) or foods (Warburton’s, 1876) thatarearoundustoday.
Despite all this, though, I still find the technology brandsthemost surprising. I learnt that IBM is celebrating its centenarythisyear. Itwas interesting tofindthatPhilips (1891),GE(1876),Ericsson(1876),Toshiba(1875)andCable&Wireless(1869)havebeenmovingwithtechnicalchangesforsolong.ButmykidswereamusedbytheageofNintendo(1889)andIwasstunnedthatOtiselevatorsoriginatedatthetimeoftheWildWest(1861).
Themore I collected the ages of familiar brands (or brandsfamiliar to their target segments in foreignmarkets) themore thestoryoflongevitybegantoemerge.Itmadetheideathatit’sdifficulttocreateenduringvalueseemridiculous.
LAURIE YoUNG
IBM IS CELEBRATING ITS CENTENARy THIS yEAR
Photos: Jhayne, Flickr (left); Universidad de Sevilla, Flickr (right)
New World 1492
Battle of Hastings 1066
Beretta1526
Kronenbourg1664
The Observer1791
Cadbury1824
Stella Artois1366
Weihenstephan1040
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BRANDS ARE AMAzINGLy ENDURING AND RESILIENTI nowhave a list of over four hundredbrands thatwere createdbefore1900andsomethatarearoundathousandyearsold.Manyoftheseentitieshavebeendoingwhatbrandsdo(creatingwealthbyappealing, inauniqueway,toasuccessionofhumanbeings)for at least acentury.Theyhavecommanded theallegianceof agroupof buyers, differentiated themselves from their competitorsandsolicitedpricesabovethecommodityfloorintheircategory.
Admittedly, some of these offers may not have had brandcharacteristics throughout their long life. Some (like Axminster,1755; Meissen, 1705; or Majolica, 1405) were originally adescriptionofaregionalheritageorgeneric,culturalskill.Itistruetoo,particularly in luxurygoods, thatmanywere runbyartisanswith a craft heritage and a commitment to quality but perilousfinancialtrackrecords.Nevertheless,theevidenceinthissimplelistsuggeststhatbrandcreationisapowerfulwaytocreatesubstantial,sustainable,long-termbusiness.
It is stunning, for instance, to find brands inmodern Chinacreated several hundred years ago which have survived neglectand massive historical traumas.Tsingtao beer, for instance, is ahighly successful and familiar international beer brand whichis sold in 62 countries andmakes up about 50%of all Chinesebeer exports. Created in Qingdao in 1903, it has survived:famine, flood, the Warlord Era, the Second World War, thecivil war, communism, the cultural revolution and the deathsof approximately seventy million people in its home nation.In turbulent times, marketers surely have a responsibility totheir shareholders to convince their colleagues to invest inthisremarkableapproach.
THE CONCEPT OF BRANDINGTheideaofbrandingisitselfveryold.Anearlymarketingtextbook(Butler,1917)usesthetermsofreelythatitwasobviouslyincommonusage.VictorianadvertisingconsultantHenrySampsontalksfreelyofbrandsinhisextensivehistoryofadvertising(1875).Bothwritersusetheword“brand”inwaysthatwewouldtoday.
In fact, business leaders of the period, likeAmericanHenryHeinz (who in 1861 launched the successful brand franchisewhich straddles theworld today),hadclearlyheardofconsumerbrandsandunderstood theirpower.Before that,business leaders
used branding techniques to meet their customers’ needs eventhough they were unable to articulate the concept in modernways.Manyhadapassiontoproducehighquality,reliableproductfortheircustomers.
InpartsofChinaitisstillpossibletoseethebrandofthebrickbuilderswhoworkedonthemonumentsofemperorsa thousandyearsago.Theirproductswereexpectedtoofthehighestquality:so reliable that the artisans’ grandchildren were expected toreplacethemiftheyfailed.Furtherback,in701,articletwelveofJapan’sGanshicodewasconsumerprotectionlegislationrequiringmanufacturers to brand their goods (like swords and clothes) asaqualitysafeguard.
When asked how hewrenched himself from abject povertyto the eighteenth century’s equivalent of billionairedom, JosiahWedgwood called his systematic use of branding andmarketing“thescienceofmoneygetting”.Thesebrandcreatorsmightnothavehadtheconceptsandterminologyavailabletoustodaybutthere
is nodoubt that theyuseddeliberate, systematic, brandbuildingtechniquestocreateenormouswealth.
Itisremarkablehowmanyofthesebrandsareconnectedtothevisionanddeterminationofonebusinessleaderortheirrelatives.Laterintheirlifetheymayhavebeenboughtandnurturedbybrandmanagers with professional training.Yet names likeWedgwood,Heinz,Mars,Cadbury,GuinnessandSingerhaveearnedvastsumsbecausetheirfoundershadavisionforaproductorservicewhichtheydoggedlybuiltovertime.
Wedgwoodwould roamhispremises smashingpoorqualityproductswithhiswalkingstickandproclaiming them“notfit forJW.”HeinzcampaignedforqualityinfoodproductionandMarshallFieldwasobsessedwithgivingexcellentcustomerservicetoChicagoshoppers thirty yearsbeforeAlCapone.Theirpassion for servingtheircustomerswellandtheirintuitiveinvestmentinsustained,highqualitymarketingmadethem,likemanybrandicons,afortune.
ANCIENT CHINESE BRANDS HAVE SURVIVED NEGLECT AND HISTORICAL TRAUMAS
TSINGTAO BREWERy WAS FOUNDED IN qINGDAO IN 1903 By THE ANGLO-GERMAN BREWERy CO. LTD. THE FIRST BEER WAS SERVED A yEAR LATER.
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Liberté, égalité,
fraternité
French Revolution 1789-1799
Beretta1526
Kronenbourg1664
The Observer1791
Cadbury1824
Stella Artois1366
Weihenstephan1040
Great Fire of London 1666
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WELL-ROUNDED MARKETING TECHNIqUESItwouldbeeasytodismisstheseenduringwealthcreatorsastheby-productoflonglost,heroicentrepreneurs,iftheyhadn’tbeencreatedbybogstandardmarketing.BrandslikePears,Wedgwood,Sunlight(Lever),Heinz,Selfridges,andCoca-Colawerebuiltusingmarketingcampaigns that look very modern. Histories and biographies(someofwhicharenowrarebooksorarchivedcorrespondence)writtenahundredyearsor so agoare full of campaigns thatwewouldrecognisetoday.
In 1771, for instance, one thousand German aristocratsreceivedanunsolicitedsampleplatewithadirectmailletterfromWedgwood.Itwouldbefascinatingtoknowwhetherthelanguageseemed strange to them, how it was packaged and whetherJosiah’s designs appealed to theGermanic taste of their families.Itisalsomaddeninglydifficulttounderstandhowitwasdeliveredand how the orderswere fulfilled in a time before PostOffices,railwaysorgoodroads.
Wedoknow, though, that thehugeriskof£20perpackage(£20,000intoday’sprices;nearly£2millionforthecampaignasawhole)elicitedafastresponsewhichquicklypaidthatback.And,withintwoyears,allbutthreeofthosethathadpurchasedhadpaidinfull.AfactorinthissuccesswasWedgwood’safter-carepackage.Itincludeda“satisfactionormoneyback”guarantee,freeshippingandthewillingnesstoreplaceanybrokenitemwithoutquestion.
Forat least a thousandyears, theelitehavecreatedmarketsthroughtheirthirstforluxury.Chinesesilk,Easternspices,Venetianglass,Swisswatches,MeissenPorcelain,StaffordshirepotteryandFrenchcouture,created,eachintheirturn,richniches.
Once established, the bestmarketers used them to developbrandsandpioneerbiggermarkets through theaspirationsof thelesswealthy.JosiahWedgwoodsaid:“…greatpeoplehavehadthesevasesintheirpalaceslongenoughforthemtobeseenandadmired…themiddlingpeoplewouldbuyquantitiesofthematareducedprice.”(CitedinKoehn,2001).
THE PRODUCT LIFE CyCLE: UTTER NONSENSEThis irritatingly well known concept is taught in nearly everymarketingcourseandappearsinnearlyeverytextbookpublishedafter the 1960s. Young marketers are taught that the sales of
individualproducts followapatternoveraperiodof timewhichnormally follows the line of a simple s-curve. They are born,grow,matureanddie.Yet,althoughtheideahasastrongholdonmanagement thinking and executives can often be heard to talkabouttheirproductas, for instance,“mature”ora“cashcow”,itremainsunproven,controversialandcompletelymuddle-headed.In1983,forinstance,ProfessorMichaelBakerpublishedresearchthatshowedaround80%ofallnewproductlaunchesineachyearfailed.Forthosemanythousandproductsandtheirmarketers,then,lifewasanythingbutasmoothS-curve.
Itisseldomtaughtthat,afternearlytenyearsofunsubstantiatedassertion,severalcrediblepiecesofworkintheearly1970sdebunkedtheProductLifeCycle.AnHBRarticlebytwoJWTplanners(DhallaandYuspeh,1976)rehearsedtheargumentswell.Theypointedoutthatmostadvocatesofthepropositionhadlittleempiricaldataandthattherewerewell-craftedresearchprojectsthathadfailedtofindacorrelationbetweennumeroussaleshistoriesandanS-curve.Their
articlecontainsseveraldatadrivenmodelswhichshownoS-curveat all in individual products or services.This cherished notion isalsochallengedbythefactthattherearehundredsofbrandssoldtoday that are decades or centuries old,with sales volumes thatarestillrising.
The PLC concept is also challenged by the early history ofthe twentieth century’s most successful marketing phenomenon:Coca-Cola.AsMarkPendergrast(1993)explains,therationaleforthedrinkhadbeentofindsomethingsimplypleasurableduringanalcoholprohibitionphaseinAtlanta.Butbythe1920s(nearlyfortyyearsafteritsinvention)thathadchanged,andconsumptionfellforthefirsttime.Thereweremanyreasonstothinkthatthisdeclineinsaleswasbecausetheproductwas“mature”.
The government was beginning to respond to constantnegativepublicityabouttheaffectsofthedrinkbyinvestigatingitscontents(becausetherewereconstantallegationsthatitcontainedcocaine).Costlylegalactionswerebeingconsidered,whichwouldaddtoproblemsoverownershipof thepatent.Therewerecheapcompetitorsandimitators.Inaddition,globalevents(theFirstWorldWar,forexample)wereaffectingtheoptimismofthenation.
‘ClassicMarketingtraining’(haditexistedthen)wouldpromptmarketersofthetimetoconsiderwhetherthisdecades-oldproduct
Hucklebury Finn 1884
oliver Twist 1838
Nokia1865
Nintendo1889
Birdseye1930
Apple1976
Proctor&Gamble1837
Samsonite1910
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wasstartingitsdeclinephaseandshouldbereplaced.(Whentheleadersofthefirmattemptedthatattheendofthetwentiethcenturywith‘NewCoke’,ofcourse,oneofthemostremarkableexamplesofconsumerantagonismfollowed).
Yet,anexplosionofsalesinthe1940sdemonstrateshowdaftitwouldhavebeen to followclassicmarketing trainingwith thiswonderful brand. Just thirty years later the companywas sellingbillions of gallons of syrup and the so-called PLC blip vanishedin the rounding.The company’s leaders had a passion for theirdrink and invested in someof themost aggressive and focussedmarketing possible.They used segmentation, research, extensiveadvertising,PRandthoughtleadershipinthehalfcenturybeforetheso-called“marketingconcept”phaseofthinking.IntheearlypartofthetwentiethcenturyCoca-ColawasAmerica’smostadvertisedproduct. Its fanatical leaders are probably fortunate thatmodernmarketingtrainingaboutthePLCandportfoliotheorydidnotexistthentodistractthem.
Termslike“cashcow”arefartooeasilyandsloppilyappliedandhave,sometimeswithoutanalysis,promptedfirmstoneglectordenudebrandsofcapitalinvestment.Toteachyoungmarketers(whoarelikelytobeinanyjobforafarshortertimethananyoftheproducts,servicesorcorporatebrandstheywillhandle)thatitisroutinetotakemoneyfromlong-termsuccessfulentitiestoinvestincreatingriskyinnovationsisdaftandnaive.Iamnowconvincedthat the very first question any marketer should ask is: “can Ifindanywaytoturnthisintoabrand?”not“atwhatphaseismyproductinitslifecycle?”
COMMODITISATION IS NOT INEVITABLETimeandagain Ihearmarketingpeople talkabout theirofferasa commodity. In utilities or many technology companies, forinstance, it isoftenanunwrittenassumptionthat theycannotdomuchtotheircoreoffertoenhanceitsperceivedvalue.WhyisthetelephoneserviceofBTsosimilartomanyofitscompetitors?WhyisthemaintenanceserviceofIBMsomuchlikethatofFujitsuorHP?Whyisthemoderncurrent-accountbankingofHSBC,Barclaysandothersalmostidentical?Whycan’tsophisticated,repeatbuyersfindanydifferencebetweentheauditsofthebigfouraccountancyfirmsorthelegaladviceofthelawfirmstheyuse?
Modernbrands likeVirgin have shown that it is possible tocreatewealththroughthevisionarypursuitofauniqueoffer.Theyhavecreatedaperceptionthatitispossibletoprovideanairline,train or broadband service that is truly different. But that is alsothelessonoftheselonglivedbrands.I’mnotabeerconnoisseur(andIamsurethereisadifferencebetweenmanyoftheproducts),butitisjustbeer.WhythenshouldLowenbrau(1383)beabletoholditsownagainst,say,Grolsch(1615)afterfourhundredyears?It’sjustadrink.
Themessageof thegreat,durablebrands is thatnoneofusshould accept the idea that commoditisation or price cuttingis inevitable. In the face of harsh competition from China orIndia, many business leaders in the West are assuming thatthere is no way they can hold their own and command acustomer franchise; that you cannot build value in a changingcommoditised, internationalmarket.Wedgwood,Cadbury,Lever,Colt, Heinz, Pears and Singer must be spinning in their graves.
Afterthirtyyearsasamarketer,tryingtopersuadeexecutivesnottotreatmarketingasanafter-thoughtandtoinvestinbrandequity,itissatisfyingtofindthatoneofthemostenduring,differentiatingandprofitablebusinesstechniquesinhumanhistoryisours.
Laurie Young is a businessman who likes to write. Throughout his career, he has held senior positions at BT, Unisys and
PricewaterhouseCoopers. He also founded, built and sold a company.
Laurie holds the CIM’s diploma and an MBA. You can see his full list of brands in his latest book
The Marketer’s Handbook (obtainable through the CIM or Amazon).
REFERENCES:
Baker, M J. (1983). Market development: a comprehensive survey. Harmondsworth: Penguin.
Butler, R.S. (1917). Marketing methods: modern business. New York: Alexander Hamilton Institute.
Dhalla, N. K. and Yuspeh, S. (1976). Forget the product life cycle concept! Harvard Business Review, Jan/Feb.
Koehn, N. F. (2001). Brand new: how entrepreneurs earned consumers’ trust from Wedgwood to Dell. Boston, Mass.: Harvard Business School Press.
Pendergrast, M. (1993). For God, country and coca-cola. Macmillan.
Sampson, H. (1875). A history of advertising: from the earliest times. London: Chatto and Windus.
THE COCA-COLA COMPANy REGISTERED THE US TRADEMARK ‘COKE’ IN 1944.
Phot
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Flic
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First World War 1914-1918
Nokia1865
Nintendo1889
Birdseye1930
Apple1976
Proctor&Gamble1837
Samsonite1910
One small step for
man...Moon Landing
1969
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The industrial revolution began inBritain and had a major impact
throughout the world. This marked thepointatwhichenergyfromhumanlabourwas replacedbymachinery.Thebenefitsweremassive: textileswere produced invastquantities,andtransportationallowedeasyimportofgoods.Whilstwemustbeproudofthisadvanceinthedevelopmentof human enterprise, it was the start ofseriousdamage toourenvironment.Thismachineryusedsteam,producedbywaterheatedbythefossilfuelcoal.Anypreviousdamagetotheplanetmadebymanhadbeenpromptlyrepairedbynature.Industryheraldedthearrivalofpoorair,whichcombinedwithfogtoproducesmog.
Theeffectwasapparentintownplanning;wepositionedindustryso that thewindwould takepoor air away from thepopulation.Inmanycountrieswestillseethatthewesternsidesofcitieshavehigher property values, are more desirable and are associatedwithupperclassresidents.Theeastendsarelesssoughtafter,lesssalubriousandassociatedwiththeworkingclass.Industrialisationledtounprecedentedlevelsofwastefromproduction,butalsoatthepointofconsumption.
Itisnowunderstoodthatourplanetismadeupofacomplexsetof inter-related systems,andabalance innatureallows thesesystems to co-exist.The human race has affected these systems.Somesaythatwearenowintheprocessofdestroyingtheplanetasaresultofthedamagecausedbypoorresourcemanagementandalackofconsiderationofproperwastedisposal.
In this article, I look at the environment inwhich corporatemanagement must operate.There have been dramatic exampleswhereplanet earthand its inhabitantshave struggled toco-exist.I identify the advances made by the industrial and agriculturalrevolutions but also show their negative effects. The humanrace has reacted in differentways over the years and I trace theemergence of the green movement. The interplay betweennature and human activity is described in the context of theevolution of marketing philosophy and the two waves of GreenMarketing that have gradually changed decision-making by bothconsumersandsuppliers.
HOW GREEN MARKETING HAS EVOLVEDProduction and Sales OrientationIn the 1880s the industrial revolution began themassive outputof products which could be sold in great quantities, therebygiving us the Production Orientation for the marketing process.
UNDERSTANDING AND APPRECIATING GREEN MARKETING
How to avoid being the wrong shade of green.
NIGEL BRADLEY
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Thiscoincidedwiththebeginningofdamagetotheenvironment,atfirstlocaltoproductionplants,butgraduallybecomingwidespread.From the place of production, natural air currents spread smokeand grime whilst waste was transported away to be depositedinvariouslocations.
By the 1920s the Sales Orientation for marketing was wellestablishedandreadycustomerswerefoundforexcessproduction.Instarkcontrasttotheseadvancesofsociety,VladimirVernadsky,in1926,wrotethatlifeforms,includinghumanlifeforms,arebasictothewell-beingoftheearth(Vernadsky1998).ThisstoodagainstprevailingthoughtandtheideaswerenottakenseriouslyoutsideRussia.However,thesewereearlysoundingsaboutglobalwarming.
The Marketing Orientation Inthe1950s,marketerswereadvancingtheconceptofConsumerMarketing,recognisableasthestartofthescienceofmarketingasweknowit.Inthenextdecade,ConsumerMarketingflourishedandtherewasan interest inapplying the techniques tonon-domesticmarkets (thesehavealsobeenvariouslycalled IndustrialMarketsandBusinesstoBusinessMarkets).Themarketingindustrystartedtoapplywhatithadlearntfromconsumerstothesenewmarkets.
Additionally, the green revolution was taking place inagriculture. It became possible to increase crop productionby the use of pesticides, fungicides and fertilisers, and animalhusbandry benefited from the use of new techniques andanimalhealthproducts.
Despitethisatmosphereofprogress,in1962agroundbreakingbook questioned the use of chemicals in agriculture. Rachel
CarsoncalledherbookSilent Springbecausewildlifehadbecomequiet during springtime. Although the book was almost bannedbefore being published, remarkably it led to the banning ofDDTintheUnitedStatesin1972.Afurthernotableeventinthisclimate of conservation was David Brower’s 1969 formation ofFriendsoftheEarth.
Alsoduringthe1960s,massproductionofconsumergoodswasincreasing. Newer production techniques allowedmore excitingproductstobedeveloped.Developmentsinpackagingtechnologieslent theappearanceofproductsamore imaginativepointofsaleimpact.Thisrepresentedafurtherrevolutionaroundtheworld.
After twodecadesofchange, the1970sare rememberedbymanypeopleforoilshortages,recession,andinflation.Itisagainstthisbackgroundthatvariousstrandsofmarketingemerged.WesawthearrivalofNon-ProfitandSocialMarketing.Kotler(1971)definedDemarketing. Corporate Social Responsibility (CSR) emerged.In1973DrSchumacher,a formeradvisor to theBritishNationalCoal Board, published his book Small is Beautiful, stressing thatdecentralised business activities should be encouraged, as suchdecentralism opposes globalization. He felt that the workplaceshould be dignified andmeaningful and that theworld’s naturalresources must be considered.These notions have been echoedinmany initiatives thatgrew fromhis ideas.Amongstmanysuchvoices,onepioneerofGreenMarketingmustbeseenasGeorgeFisk(1973,1974),whoidentifiedboththeconsumerandsupplierofproductsasresponsibleforeffectsontheenvironment.
GREEN MARKETING WAVE 1In the 1980s we saw the emergence of ServicesMarketing andalso thefirstwaveofGreenMarketing.CSRReports startedwiththe ice cream seller Ben & Jerry’s, where the financial reportwas supplemented by a greater view on the environmentalimpactof thecorporation. In1987,adocumentpreparedby theWorld Commission on Environment and Development definedsustainable development as meeting ‘the needs of the presentwithout compromising the ability of future generations to meettheir ownneeds.’This became knownas theBrundtlandReport,andwasanothersteptowardswidespreadthinkingonsustainabilityineverydayactivity.
In1989aman-madedisastercameintheformoftheExxonValdezoilspill.Over10milliongallonsofcrudeoilwerelostintotheseaandthiskilledfish,birdsandotherformsoflife.Itwasoneof the most damaging environmental disasters created by man.Thisandothermisdeedsbycorporationsledtogreaterpolicingofconduct,andmoreimportantly,toasenseofresponsibilityfromtheorganizationsthemselves.
In the 1990s, environmental issues continued to be top ofmindas theShellcorporationdecided toabandonanoil storageandtankerloadingbuoy(calledBrentSpar)intheAtlanticOcean.Thisdecisionwasmadein1991andcontinuedtobefeaturedin
OUR NATURAL RESOURCES MUST BE CONSIDERED
Silient Spring (Carson, 1962) denounced the use of chemical fertiliser
FRIENDS OF THE EARTH IS A NETWORK OF MORE THAN 75 NATIONAL ORGANISATIONS WORLDWIDE, WITH AROUND
2 MILLION SUPPORTERS ACROSS FIVE CONTINENTS.
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themediatotheextentthatmanyShellcustomersswitchedtoothersuppliers. Shell also faced controversy in Nigeria as the Ogonipeopleprotested against them, arguing that local peopledidnotbenefit from their operations and environmental damages werebeingcaused.SomeprotesterswereexecutedandShell’sreputationsuffered. Furthermore, a decade of research culminated inTheoColborn’s1997bookOur Stolen Future: How We Are Threatening Our Fertility, Intelligence and Survival.Thisshowedthatexposuretoman-madechemicalsintheatmosphereisdamagingtoorganisms.Herwork, likethatofCarsonyearsearlier,heightenedawarenessandactuallyledtonewlawsaroundtheworld.
Earlier in the 1990s, twomarketing authors assembled theirknowledge and views into two key books, both of which werecalled Green Marketing. They were Ken Peattie (1992) in theUnited Kingdom and Jacquelyn Ottman (1993) in the UnitedStates ofAmerica. In this atmosphere the phrase ‘Triple Bottom-line’ (TBL) was coined by John Elkington in 1994 in his article“Towards the sustainable corporation.” TheTriple Bottom-line iseasilyrememberedasPeople,PlanetandProfits.Itwaseffectivelya tangible step towards social, environmental and monetaryaccountabilityonthebalancesheet.
GREEN MARKETING WAVE 2In the years after 2000we saw the definite arrival of ElectronicMarketing, making full use of theWorldWideWeb which was
conceived in 1990. E-Marketing and other related techniquesgave the ability to offer customised communications and tailor-madeproducts to individualsonamassivescale.This ‘marketingtoindividuals’promisedtheeliminationofwasteatallpartsoftheoffering,whetherbyavoidingjunkmailorprovidingproductsthatmatchneedsprecisely.
ThiscamehandinhandwithasecondwaveofGreenMarketing,wheresomeof the lessons learnt inwave1, twodecadesearlier,wereputintopractice.BynowCorporateSocialResponsibilityandtheTripleBottomLinewerewidespread.Awayfrommarketing,suchpublications as the2005UnitedNationsReport,AlGore’s 2006bookAn Inconvenient Truth,andthe2006UKSternReportbroughtscientific-environmentalargumentstothewiderpublicinaneasytounderstandway.Eachassessedtheimplicationsofmovingtoalow-carbonglobaleconomyandthepotentialofdifferentapproaches.
ThisnewwaveofGreenMarketingdifferedfromthefirstwaveinmanyrespects.KenPeattie,currentlyanexpertinthisfield,alongwithAndrewCrane(2005)lookedbackoverthepreviousyearsandarguedthatGreenMarketingdidnotbecomearealitybecausefivetypesof‘misconceivedgreenmarketing’stoodinthewayasobstacles.TheseweredescribedasGreenSpinning,GreenSelling,GreenHarvesting,EnviropreneurMarketingandComplianceMarketing.
ItiscurioustonotethatGreenMarketingwave1followedaneconomicrecession,whereasGreenMarketingwave2camebeforetheglobalrecessionwehavecometoknowastheCreditCrunch.
yEARS FOCUS OF MARKETING ENVIRONMENT
1880s IndustrialRevolution,ProductionOrientation Pollutionbegins1920s SellingOrientation VladimirVernadsky,1926
1950s ConsumerMarketing
1960s IndustrialMarketingGreenRevolutioninAgricultureRachelCarsonpublishesSilent Spring,1962DavidBrowerformsFriendsoftheEarth,1969
1970sNon-ProfitandSocialMarketingKotlerdefinesDemarketingCorporateSocialResponsibilityemerges
Oilshortages,recession,inflationDrSchumacherpublishesSmall is Beautiful,1973
1980sServicesMarketingGreenMarketingwave1emergesCSRReportsstartwithBen&Jerry’s
TheBrundtlandReport,1987ExxonValdezoilspill,1989
1990sCustomerRelationshipMarketingTripleBottom-lineaccountingtermcoined,1994
Shell’sBrentSparandNigeriancontroversies.TheoColbornpublishesOur Stolen Future,1997
2000s
ElectronicmarketingMarketingtoIndividualsGreenMarketingwave2CSR&TBLwidespread
UnitedNationsReport,2005ReleaseofAlGore’sAn Inconvenient Truth,2006SternReport,2006
Table 1: Notable Events for Green Marketing. Based on Christopher, Payne and Ballantyre (2002)
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This difference may be significant: it may suggest that GreenMarketing ishere tostay.TheGreenMarketingconceptdictates,amongstotherthings,lessuse,recyclingandavoidingwaste-justsomeofthewayssocietyreactsattimesofrecession.
In GreenMarketing wave 2 we find ourselves with excesswaste in developed countries - there is a real problem that hasresulted from using the earth’s resources. Rubbish is piling upandweare runningout of landfill. Forests aredisappearing andsooxygenproduction is indoubt.Qualityof life isunder threatfromtoxicwasteandincreasesingreenhousegaslevelsareleadingtoglobalwarming.
Let us distinguish Green Marketing wave 2 from wave 1by suggesting that the problems are the same, but that wave1was largelyconfined to suppliers. Inwave2 there is agreaterpublic awareness. There have been various attempts to creategreen typologies of consumers to help in market segmentation(Schlegelmilch et al, 1996; Straughan andRoberts 1999;WalleyandParsons2000;MolinaandSerrano2002).
OneusefullongitudinalstudyistheGreenGaugeReport.IntheUSAintheearly1990s,RoperStarchWorldwideidentifiedfivesegments of consumers, a classificationwhich has continued insurveyssincethen.ThisclassificationappearsintheGreenGaugeReport,asyndicatedstudyofconsumerenvironmentalattitudesandbehaviourintheUStoday.Mostofthesewerebasedon2,000face-to-faceinterviewsselectedinlinewiththemostrecentUScensus.
This classification is shown in Table 2 and highlights thedifferencesintheUSAgeneralpublicbetweenwave1and2.Notethatthesurveydidnotexistinthe1980s,so1995isshownasanindicatorforwave1andtheyear2007isusedasamarkerandforwave2.DespiteaslightincreaseinGrousers,weseeanincreaseinTrueBlueGreensandareductioninApathetics.
ENERGy AND WASTEIt is also useful to focus on the production of energy and theproductionofwaste. Energyandwasteare two indicatorsof theinefficiencyof industrialprocesses; regardlessofprofitability: thegreatertheenergyandwaste,themoreecologicallyinefficienttheindustrysectororindividualcorporation.
Energyproductionhaslargelyfocusedonfossilfuels,usedtocreate electricity, to heat buildings and to power transportation.Coal, oil, and gas are taken from the earth, where, effectively,they store carbon dioxide. These are sometimes known asnon-renewable because supplies are limited and cannot bereplenishedatthesameratebywhichtheyareused.Theprocessesinvolved in transforming them into power release carbon intotheatmosphereand thiscontributes toglobalwarming,which isdamagingtheplanet.
By using the termwaste we are referring to any unwantedmaterials,variouslydescribedas trash,rubbishorgarbage.Thesemay take the form of liquids, solids, gases or even energy such
as heat. Simply speaking we can identify two types of waste.Production waste and consumption waste. Production waste iscreatedbythemanufacturerandmaytaketheformofheatenergythatislost,dirtywater,excessproduct,productnotfitforthemarketorexcesspackaging.Allofthesemustgosomewhere.Atthefinalconsumption point there is a new type ofwaste: the packaging,unconsumed product, excess energy used in preparation, andultimatelyhumanexcreta.
There are many direct consequences of inefficient use ofenergy andwaste generation.Air pollution leads to asthma, andgreenhousegasesfromproductionandwastearecausingunstableweather conditions. This is not helped by deforestation, as theoxygenproductionlostwouldhavecompensatedfororoffsetcarbondioxide. Intensive-farmingandpoor land-managementmean thatthefertilityofthelanddeteriorates,resultinginloweryieldsandashortageoffood.Tocounteractthis,morefertiliserisproducedandused,meaningmoreenergyandpollution.
Anotherproblemthatisemergingisareductioninbiodiversity.Some living organisms are becoming extinct. This is a problembecause strengths and weaknesses in any organism allowcomplementaryco-existence.Iflife-formscannotsurviveinchangedenvironments,therewillbeashortageoffood.Thisconcernsseedsasmuchasother,moredeveloped,lifeforms.
Afinalexampleofhumanactionthathasanegativeconsequencedirectlyconcernsmarketing.Ifweover-promotetocertainmarketsegments,or ifwedonotprovideadequate information,wecancause over-consumption.An often cited example is obesity; thishas become a major issue in recent years in the USA and theUK. There is mounting evidence linking obesity to higher riskfornumerouscancers.
NAME DESCRIPTION 1995 2007
TrueBlueGreensMajorgreen
purchasersandrecyclers
11% 30%
GreenbackGreensWillbuyorgivegreen,won’tmakelifestylechanges
7% 10%
SproutsCarebutwouldonlyspendalittlemoreto
buygreen31% 26%
GrousersSeetheenvironmentasaproblem,butsomebodyelse’s
14% 15%
ApatheticsEssentiallydon’tcare/
won’tcare35% 18%
Table 2: GFK Roper Consulting Green Segments. (From the Green Gauge Report)
look to the blog: WHO SAyS CSR DOESN’T PAy? (2010)
http://tutors.marketingcollege.com/who_says_csr_doesnt_pay
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THE MEANING OF GREEN MARKETINGTheterm‘green’appearstohavebeenfirstusedinthe1970sandcanbetracedtotheGermanpoliticalpartyknownasTheGreens(Die Grünen). Subsequently, other green political parties startedtogainsupport inthe1980sinotherpartsofEurope.Theunitingprinciplesofthegreenpartiesincludeconcernfortheenvironment,sustainablelifestylesandsocialjustice.ThesearethemesthatpushthroughintoGreenBusinessandGreenMarketing.
From the 1970s to today, some corporations havemade bigerrors and tried to foster better relations by being transparent.Otherfirmshavepre-emptedanyquestioningof theirconductbypublishingacodeofconduct,astatementofethicsorastatementofCorporateSocialResponsibility.Inthebackgroundwasrecessionandpollution.BesidesMultinationalCorporationsleadingtheway(or misbehaving), there have also been: NGOs, social activistsand academics, and government initiatives. Additionally therehas been greater public awareness of business effects. Then ofcourse corporations have needed to be seen to be ‘keeping upwiththecompetition’.
Since1976,theCharteredInstituteofMarketinghasdescribedmarketingas‘the management process responsible for identifying, anticipating and satisfying customer requirements profitably.’KenPeattieadaptedthisdefinitioninhis1992booktoarriveata
definition for Green Marketing. He called it ‘the management process responsible for identifying, anticipating and satisfying the requirements of customers and society, in a profitable and sustainable way’. By including theword society, this definitionincorporatesanelementofsatisfyingthehumanenvironment,butitdoesnotfullycovertheenvironmentofotherorganismssuchasplantandanimalspecies.Peattie’sdefinitiondoesincorporatethewordsustainablewhichimpliescontinuity.Inotherwords,therawmaterialsandresourcesofmarketingmustbeavailableandthebi-productsshouldbeabsorbedorre-usedwithnodetrimentaleffect.
In1995Polonskyofferedanothervariant,withamainfocuson theenvironment:‘Green or Environmental Marketing consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment.’
This definition leads us to other similar terms: SustainableMarketing, Environmental Marketing, Ecological Marketing,Eco-Marketing, EthicalMarketing,Cause-relatedMarketing, andResponsibleMarketing.These termsappear inTable3.Theyarenotexactlythesamebuttheydooverlap;GreenMarketingshouldembracethemall.AnunderstandingoftheseconceptshelpstomoveclosertoanunderstandingofwhatwemeanbyGreenMarketing.
TERM DEFINITION
De-MarketingAstrategywherebyconsumerrequirementsareidentifiedandanticipatedbutthentechniques
areusedtodecreasedemand.
SustainableMarketingAconceptthatsuggeststhattherawmaterialsandresourcesofmarketingmustbeavailableand
thebi-productsshouldbeeasilyabsorbedorre-usedwithnodetrimentaleffect.
EnvironmentalMarketingAwayofdoingbusinessthathasminimaleffectonthesurroundings,namelywater,airandland.
Thisembracespollutionandwastedisposal.
EcologicalMarketing Activitiesandtechniquesusedtoavoidortosolveenvironmentalproblems.
Eco-MarketingAtermformedfromthewords‘ecological’and‘marketing’tosuggestthatconsumerrequirementsareidentified,anticipatedandsatisfiedinfullconsiderationoftheimplicationstoorganismsand
theirenvironment.
EthicalMarketingAwayofdoingbusinessthatfirstofallconsidersthemoralstanceandhowitaffectseverything
andeveryone.
Cause-relatedMarketingThe use ofmarketing tools to link businesseswith charities (or causes) to have amutually
beneficialoutcome.
ResponsibleMarketing Awayofdoingbusinessthatconcernsthewellbeingofothercitizensandisseentobecorrect.
Table 3: Terms similar to Green Marketing
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Ofcourseproductcategoriesareimportant;theymaybedurableornon-durable.Ifaproductisnon-durableitcanbeconsumedfully,butdurableproductsarealsocapableofbeingusedfullywithoutwaste.Thismayentailtheirrepeatuseorsometransformationintosomethingquitedifferent.
WethereforearriveatourowndefinitionofGreenMarketing,whichisasfollows:Satisfying customer and other stakeholder needs with products that are environmentally friendly. It involves efficient production and delivery followed by complete consumption; there is minimal waste at any point in the process.’
Note that this definition talks in terms of customers ratherthanconsumers, therebyembracingbothmassmarketandnichecustomers.Itthereforelooksatbusinesstobusinessanddomesticbuyersandusers. Italsogoesbeyondcustomersby includingallotherstakeholdersofanorganisation,whichthereforeplacesawiderresponsibility on the organisation. The definition then describestheproductionandconsumptionprocessasbeingcomplete,withminimalwaste.
GreenMarketingnowhasacompletedefinition.Itisimperativethen,forthesakeofusall,thatmarketersadoptthisapproachfully.
Nigel Bradley is a Senior Lecturer in Marketing at the University of Westminster, with a Masters degree in Product Management and
Marketing, At RSL (now IPSoS) he headed the International Division, then was responsible for the National Readership Survey
and the British Business Survey.
Nigel is a Fellow of the Market Research Society, a Chartered Marketer, and a Fellow of the Chartered Institute of Marketing. Since 2000 he has
developed qualifications and examined for the MRS and CIM. In 2010 oUP published the second edition of Nigel’s University Textbook:
Marketing Research – Tools and Techniques.
THE PRINCIPLES OF GREEN MARKETING• Consumer needs are satisfied with products that are
environmentallyfriendly• Productionanddeliveryareefficientfromtheviewpoint
ofenergyused• Productionanddeliverycreateminimalwaste• Consumptionisnearcomplete,thereisminimalwaste• Theconsumerbuystherightamount• Theconsumerdoesnotneedtorejectanything• Productswill notbe forced intoamarketplacewhere
demandisalreadysatisfied• Producersareresponsibleforthedisposalofproductsand
theirwaste,afterconsumption• Unnecessarytransportationwillbeavoided• Themarketingactivitiesdonoharmtohumansorother
lifeforms• Greenmarketersavoidconcentrationofactivities(whether
productionorconsumption)inoneplace,asbiodiversityisaffectedbysuchconcentrations
GreenMarketinginvolvesmorethanthemarketingdepartment.Otherdepartmentsmustbegreeninorderforpromotionalclaimstobeaccuratelygreen.Naturally,GreenMarketingmanagersrespectlegislation,buttheygofurther:theyanticipatefuturelegislationandgobeyondwhatislikelytobeexpectedfromthem.Theyarenotforced to change their practice because they have already takenseveralstepsahead.Beyondtherealityofhavinggreenproducts,Green Marketing activities also concern perception: this meanssatisfying consumers’ needs for products they consider to beenvironmentallyfriendly.
A CIM agenda paper in 2008 called ‘Tomorrow’s World,’suggested a new definition for marketing in general. It is “all-embracing”anditisnoteworthythattheword“sustainable”creptinto the somewhat lengthy description. The CIM proposed toredefinemarketingas:‘The strategic function that creates value by stimulating, facilitating and fulfilling customer demand.’
Furthermore ‘It does this by building brands, nurturing innovation, developing relationships, creating good customer service and communicating benefits.’
Additionally, ‘By opening customer-centrically, marketing brings positive return on investment, satisfies shareholders and stakeholders from business and the community, and contributes to positive behavioural change and a sustainable business future.’
This new definition goes beyond the customer and toucheson all stakeholders, which include employees, shareholders,distributors,membersofsocietyandsoon.
ThesimplewaytorememberGreenMarketing is to thinkofitas totalconsumption.Consumption iscomplete: theproduct isproducedefficiently,itisdeliveredefficiently,allofitissoldandallofitisused.Thereisnowasteatanypointandtheconsumerbuysjusttherightamountanddoesnotneedtorejectanything.
If a product does not satisfy each of these criteria then it isa lessershadeofgreen.Themarketerwhodoesnot followgreenprinciples will produce too much and will sell too much, andthebuyerdoesnotconsume fully.There isanexcess inproduct,packaging and everything that goes into the marketing effort.Marketingcommunicationsarepoorlytargetedandwasteservicesareneeded tocopewithunusedproduceandexcesspackaging.TheseprinciplesareoutlinedinFigure1.
THIS NEW DEFINITION GOES BEyOND THE CUSTOMER AND TOUCHES ON ALL STAKEHOLDERS
[Figure 1]
look to the blog: PUMA REPLACES SHOEBOxES WITH BAGS (2010)
http://tutors.marketingcollege.com/puma_ditches_shoe_boxes
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REFERENCES:
Belz, F-M. & Peattie, K. (2009) Sustainability marketing: a global perspective. Chichester, West Sussex: Wiley,
Brundtland Report (1987). The World Commission on Environment and Development, Available from http://www.are.admin.ch/are/en/nachhaltig/international_uno/unterseite02330/
Carson, R. (1962). Silent spring. Boston: Houghton Mifflin
Carson, R. (1969). Silent Spring. London: Hamish Hamilton Ltd.,
Colborn, T., Dumanoski, D., Meyers, J. P. (1997). Our stolen future: how we are threatening our fertility, intelligence and survival. New York: Plume/Penguin
Elkington, J. (1994). Towards the sustainable corporation: win-win-win business strategies for sustainable development. California Management Review, (36)2, pp.90-100.
Fisk, G (1973). Criteria for a theory of responsible consumption, Journal of Marketing, 37, April, pp.24-31
Fisk, G (1974). Marketing and the ecological crisis. New York: Harper & Row
Fuller, D. A (1999). Sustainable marketing: managerial-ecological issues. Thousand oaks: CA Sage
GFK Roper Consulting (1991-2010). Green gauge report. Available at: http://www.gfkamerica.com/practice_areas/roper_consulting/gfk_roper_green_gauge_us/index.en.html [Accessed 8 February 2011].
Graham, F. (1970). Since silent spring. London: Hamish Hamilton Ltd.
Henion, K. E. & Kinnear T. C. eds (1976). Ecological marketing. Austin, Tx: American Marketing Association.
Kotler, P. and Levy S. J. (1971). ‘Demarketing, yes demarketing’, Harvard Business Review, Nov-Dec 74-80.
Langeland, L. (1999). on communicating the complexity of a
green message. Part 2: the vigilant market. Greener Management International, 25, Spring, pp.81-91.
Makower, J. (2005). America’s Green Zeitgeist. Available at: http://makower.typepad.com/joel_makower/2005/11/gauging_america.html [Accessed 8 February 2011].
Molina, M. A. V. & Serrano, L. M. (2002). Propuestas para una segmentación estratégica del mercado ecológico. Cuadernos de Gestion, 2(1), pp.11-30.
ottman, J.A. (1992). Green marketing: challenges & opportunities for the new marketing age. Lincolnwood, Chicago: NTC
Business Books.
Peattie, K (1992). Green marketing. London: M&E Handbooks, Pitman Publishing.
Peattie, K. & Crane, A. (2005). Green marketing: legend, myth, farce or prophesy? Qualitative Market Research: An International Journal. Dec 8(4), pp.357 – 370.
Polonsky, M. Jay. (1995). A stakeholder theory approach to designing environmental marketing strategy. Journal of Business & Industrial Marketing. Aug 10(3), pp.29-46.
Schlegelmilch, B.B., Bohlen, G. M., & Diamantopoulos, A. (1996). The link between green purchasing decisions and measures of environmental consciousness. European Marketing Journal, 30(5) 35-55.
Straughan, R. D., & Roberts, J. A. (1999). Environmental segmentation alternatives: a look at green consumer behavior in the new millennium. Journal of Consumer Marketing., Dec 16 (6), pp.558-575.
Vernadsky V. (1998). The Biosphere. Translated from Russian by D.B. Langmuir. New York: Copernicus.
Walley, K., Custance, P. & Parsons, S. (2000). UK consumer attitudes concerning environmental issues impacting the agrifood industry. Business Strategy and the Environment, 9(6), pp.355-366.
iDEASSpace for your thoughts
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Peoplegotowarformanyreasons.Protectingfreedom,family,orcountryisgenerallyconsideredanobleone.Undercutting
acompetitorisnot.Thetoplineisapotentweapon-butonethatmustbewieldedwithfinesse,notmachismo.
Asastrategy,pricecuttingcanbedifficulttosustain;againstmore efficient competitors, it’s impossible. In his first-rate bookCompetitive Solutions: The Strategist’s Toolkit, R. PrestonMcAfeepointsoutthatpricewarsbetweenequalsproduceinjuriesonbothsidesandvictoryonneither.Solaunchhostilitiesonlywhenyou’resureyouhaveanoverwhelmingadvantageandcandrivetheotherguyfromthemarket.
Ofcourse,ifacompetitorattacks,you’llhavetoputupyourdukes.Butinpeacetime,itiswisertoinvestinareassuchasR&D,customer service,andmarketing,which justify raisingprices,notloweringthem.Afterall,cheap-unlikerichandthin-issomethingyoucanbetoexcess.
Dra
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2011
Don
Moy
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with
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Orig
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Har
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Bus
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Don Moyer has collected his series of cartoons as a book, entitled 64 Drawings. It is available from Blurb at
www.blurb.com/bookstore/detail/949041
DEATH By A THOUSAND CUTSBY DoN MoYER
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Thearrivaloftheinternetattheendof the 20th century fundamentally
transformed the way that organisationsoperated; pure online companies werecreated whilst the bricks and mortargraduallysawthe incrementalbenefitofhavingawebsite.Nowtheinternetisonceagaingoingtochangehoworganisationsdobusiness.Thiswillimpactthestrategyof online retailers.The growthof onlineshopping has reached a crucial point;inthelast36monthstherewere10,005(37%)newentrants to theUKmarket (Experian,Hitwise, 2010).However the growth in the number of customers is slowing, at11%during2008-2010.Theimplicationisthatmoree-tailersarecompetingforthesametraffic.
ONLINE SHOPPING MATURINGOnlineshoppingisstartingtomature;wearepasttheearlyadopterphase.12%growthispredicted2009-2014intheUKcomparedto27%seenin2004–2009(Perrett,2010).Itisfarfromsaturationpointbut thereare fewernewcustomerscoming into themarketduetoitsmaturity.By2014therewillbe32.5mUKshoppers,whichisonly4millionmorethantoday(Rigby,2010).AsMcEleny(2010)comments,“thewebhasbecomepartofourlivesandby2015wewillseeaparitybetweenonlineandofflinesales”.
The UK is the most mature e-commerce market in Europe(Stables,2010).In201060%ofadultsintheUKaccessedtheinterneteveryday(OfficeofNationalStatistics).Whilstthecurrenteconomicconditionscanbeseentohavecontributedtotheslowdowninonlineshoppingincertaindemographicgroups,overhalftheUKpopulation(31millionadults)shoponlineandthe35-44yearoldsarethehighestspending group according toVerdict Research (Shannon, 2010).Anditisthisgroupthatislikelytocutbackonspendingasaresultofforthcominggovernmentcuts(Rigby,2010).
INCREASED COMPETITIVE RIVALRyThe slowing of growth in the numbers shopping combinedwiththe rise of new entrants is increasing the competitive rivalrybetween e-tailers. Consumers now have a wider choice ofe-tailer. This increases their power, as established e-tailers needcustomer volume to offer the keenest prices, and new entrantsfightformarketshare(Porter).
Existing e-tailers have responded to increased competitionbyofferingdiscountsand loweringprices.Customershave learnttosearchfor thebestprice. Itcanbesaid thate-tailersareusinglow price tactics to ‘buy’ site traffic and market share. This iseconomicallydevastatingtomanysectors,especiallythoselikethe
HAS THE INTERNET REACHED TIPPING POINT?
LAURA BARToN-TAYLoR
How marketers must react to the crowded online market.
PRICE HAS BEEN THE WEAPON OF CHOICE BUT
HAS LED TO A PRECIPITOUS DECLINE IN PROFITS
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consumerelectronicsorhomeentertainmentsector.Forexample,2010sawadecreaseintheaveragesellingprice(ASP)ofDVDsto£8.88,downfrom£9.35in2008(OCCData,Nov2010).
Pricehasbeentheweaponofchoicetoincreaseappealandattractmorecustom.Thishasledtoaprecipitousdeclineinprofits.To maintain sales revenue, e-tailers have to sell higher productvolumesyearonyeartocounteractdecliningASP.Inordertodothistheyhavetoattractmorecustomers,maintainprices,improvecustomerretentionandincreasethelifetimevalueofcustomers.
CHANGING CONSUMER BEHAVIOUR TRENDSPromiscuous customersTheaboveishardtoachievewhenthepatternofpricecuttinghastaught customers to anticipate lower prices. The pricing tacticshaveeducatedcustomers toshoparoundfor thebestprice; theyhaveapredispositiontolowerpricesandnowexpectthem.Pricecomparisonsitesmakeiteasier forcustomerstocompareprices.The internet reduces the time it takes to undertake comparisonshoppingandallowsimmediateaccesstoawiderangeofsellers.Asonlineshoppinghasmatured,onlineshoppershavebecomemoreintelligent and sophisticated inhow they shop. Informationnowplaysacentralroleinonlineshopping.Search versus PurchaseThegapbetweenonlinesearchesandshoppingisclosing(IMRG,2010).Shoppersaresearchingmorebeforepurchasing,indicatingthatformanyshoppersonline,brandloyaltyisadecliningfactorwhenmakingapurchase.
TheUK searchmarketwasworth £436million in 2010; up16%from2009(IAB).This indicates theimportanceofsearchasa method for delivering return on investment, as it successfullydrives traffic and increases sales. It also indicates that morecustomersareusingsearchtofindexactlywhattheyarelookingforinsteadofremainingbrandloyal.
Thebiggestgrowthhascomefromsocialnetworks,fromwhich8%ofall traffic toe-tailersnowcomes.Nearlyone infivesocialnetwork visitors say they search their social networking sites forinformation beforemaking a purchase, up from 17% a year ago(Experian,2010).ThisisonlysettoincreasewithnewinitiativessuchastheonlinestoreonFacebookbye-tailerASOS.Userswillbeabletobuyproductsdirectlyfromthesocialnetworkasopposedtotheonline store.The InternetAdvertisingBureau reported that 1 in5onlineshopperswouldfollowabrandonasocialmediasiteiftheywererewardedwithanincentive.
STRATEGIC RESPONSEThegrowthofpeopleshoppingonlinehasslowed,buttheamountbeingspenthasnot.Withforecastedgrowthof56%to£35billionover the next four years (Rigby, 2010), e-tailersmust choose thecorrectstrategytobenefitfromtheforecastedvaluegrowth.
DIFFERENTIATION FOCUSConsidering Porter’s (1980) original Generic Strategies, e-tailersneedtofocusanddifferentiateinordertorespondtocompetitioninthecrowdedonlinemarket.
Buyerbehaviourischanging;e-tailerscannotjustrelyonpriceandtheirbrandascustomersarenolongerbrandloyal.Theymustdomoretoensurethetotalshoppingexperienceisthebestinclassto help counteract changing consumer behaviour. In short, doingnothingbuthavinglowerpricesisnotanoption.
Withlowbarrierstoentry,newe-tailerswillcontinuetoarriveandoffermorechoice forcustomers. E-tailer growthand survivalthereforedependsonloyalcustomers.Shared-value creationProfitmaximisationshouldnotbethemaingoalofadifferentiationstrategy. Porter advocates that what is good for society is goodforbusiness; creating societalbenefit is apowerfulway tocreate
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http://tutors.marketingcollege.com/a_place_for_everything
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economic value (Porter & Kramer 2011).The concept of sharedvalueistocreateprofitthroughcontributingtosocialbenefit,andisaninnovativewayofdifferentiatingfromcompetitors.Thechallengefor e-tailers is to figure outwhere their products naturally touchsocialpoints,andhowtoimproveeachsituation.
HOW CAN E-TAILERS RESPOND?Better customer serviceE-tailers need to differentiate byoffering customers a choice andproviding market-leading customer service. They must supplyvaluable product information, ensure good stock availability andhavestrongcustomerservicepolicies.Bettercustomerservicecanbe delivered through the website with personalisation and user-friendlynavigation,andbyimitatingelementsofsocialnetworkingsites.This takes advantage of the increasing trend towards socialmedia combined with e-commerce. The website design qualityis very important. This includes the appearance, informationprovided, and effective navigation. A high quality websitedemonstrates“thevendor’scapabilityanditssincereinterestinitscustomers” (Tao et al, 2009) and can influence a customer’s firstimpressiontowardsaretailer.ChoiceGivingconsumersachoiceinhowtheycommunicatewithbrandshelpsbuildacloseretailer-consumerrelationship.Marketersneedtoofferthischoicethroughintegrateddigitalmarketingtactics.Nearly2/3rdsofUKconsumerssaytheyareunlikelytobuyfromacompanyif they cannot interact with it through their preferredmethod ofcommunication,accordingtoBlueviewGroup(Anon.,2009).Personalised online contentE-tailersneedtotailorsitecontentandservicetomeettheneedsandwantsofthehighestspendingagegroupstomaximiserevenueopportunities.VerdictResearchpredictthatthe15-24and55+agegroups have themost growth potential. Recognising the differentneedsofgroupsandservicingthemaccordinglywillhelpgrowaloyalfollowinganddifferentiatefromcompetition.Peer reviewsReviewsincreasethetimespentonthesite,addtothe“stickiness”and create a sense of community among shoppers (Mudambi,2010).Providinganeasywayforcustomerstogetinformationaboutproductsfromreliablereviewscouldbeasourceofdifferentiation.
Technological advantagesNewtechnologiesneedtobeexploredandopportunitiesseizedonnewplatformsat theearly-adoptionphase.Forexample,mobile-commerceandgeo-locationservicessuchasFoursquareshowthattherelationshipbetweenconsumerandbrandiseverywhere,notjustonlineorinthestore.
EVOLUTION OF MARKETING PROFESSIONALSMarketers in the online retail sector will need to develop newskills inorder to successfully implementadifferentiated, focusedstrategy. The focus should be on the consumer, making theshopping experience and journey better and differentiated fromthecompetition.Thisisessentialforthestrategytoworkasitwillencouragecustomer loyalty.Thishelps to competeagainst rivals,anddissuadenewentrantstomarket.Technological skillsMarketersneedtobeawareofadvancementsincurrenttechnologyto ensure web user interfaces are delivering the best navigationexperiencepossible.Aswesawearlier, search isat thecentreofonlineshoppingbehaviour.Marketersmustunderstandhowsearchenginesworkinordertooptimisewebpages,makingtheirbrandstandoutinrelevantsearchresults.
Itisvital,todifferentiatefromcompetition,thatnewfeaturesandinnovativetacticsareusedsothebrandisseenascutting-edgeandcredible.Beingearlyadoptersofnewwaysofdoingthingsisnecessaryifabrandwantstokeepupwithconsumers.Listening to customersDeveloping the skills required to listen to what customers wantwillbecrucialtoastrategythatfocusesonthecustomer.Withoutunderstandingwhatcustomerswantfromane-tailer,thecustomers’expectationswillnotbemet.Thisincludesservicelevelexpectations,websiteusabilityandchannelsofcommunication.
Retailers need insight into online discussions to knowwhatthey are getting right and what needs improving. Listening tocustomerswillhelpretailbrandsengagedirectlywiththecustomerandhelpbuildloyalty.Digital marketingAdeep understanding of the opportunities that digitalmarketingoffersinthefutureisanecessityforanymarketer.Marketersneedto keep up with the fast pace at which new market channelsarebeingintroduced.
Forexample,shoppingthroughTVswithaninternetconnectionisat theearlyadopterphase.Retailersshouldmaximise thisnewchannelearly toperfect thecustomerexperience ready forwhencustomershaveacloseaffiliationwiththechannel.Representative marketing departmentsThere are different groups of online shoppers: the youngerdemographic and the 55+ group. Marketing departments mustincludepeopleofasimilaragerangetohelprepresentthemindsetandviewsofeachdemographic.
EARLy ADOPTERS NOW SHOP ON WEB-CONNECTED TVS. MARKETERS SHOULD LOOK TO PERFECT THEIR CUSTOMER ExPERIENCE
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Shared-value creation developmentLeadersandManagerswillneedtodevelopnewskillsandknowledgetofullyexploretheideaofsharedvaluecreation.PorterandKramer(2011)suggestthatadeeperappreciationofsocietalneeds,andanunderstandingofthebasisoforganisations’productivity,isrequired.
CONCLUSION Theonlineretailspaceischanging.Thekeytogrowthandsurvivalforretailersistointegratechannels.Consumerswantachoiceinhowtointeractwithbrands.Theydesirebrandsthatareaccessiblewhentheywant,wheretheywantandhowtheywant.Inanincreasinglycompetitiveindustrywithdecliningbrandloyalties,onlybrandsthatofferconsumerswhattheywantwillwinloyaltyandrepeatbusiness.
Graduating in Marketing Management and Law, Laura has worked in the public sector, scientific publishing and most recently FMCG. She is
now Digital Marketing Manager for the Royal Society of Chemistry, and completed the postgraduate diploma in marketing this year.
REFERENCES:
Experian. www.hitwise.com
IMRG. www.imrg.org.
McEleny, C (2010) Is the UK ready for social commerce? New Media Age [e-journal], pp.01-02, Available through: Business Source Corporate, EBSCohost, [Accessed 22 January 2011].
Mudambi, S, & Schuff, D (2010) What makes a helpful online review? A study of customer reviews on Amazon.com. MIS Quarterly [e-journal], 34, 1, pp.185-200, Available through: Business Source Corporate, EBSCohost [Accessed 22 January 2011].
Murray-West, R. (2011) Voucher codes the answer to VAT increase. The Telegraph [online]. Available at: http://www.telegraph.co.uk/finance/personalfinance/consumertips/8245200/Voucher-codes-the-answer-to-VAT-increase.html [Accessed 23 January 2011].
oCC. www.optionsclearing.com.
Perrett, M. (2010) ‘Growth in online shopping set to level off ’. The Grocer.
Porter, M. E. (1980). Competitive strategy. New York: The Free Press.
Porter, M.E & Kramer, M.R. (2011) The Big Idea: Creating Shared Value Harvard Business Review [online]. Available at: http://hbr.org/2011/01/the-big-idea-creating-shared-value/ar/1 [Accessed 22 January 2011].
Rigby, C. (2010) Ecommerce set for slowdown, says Verdict. Internet Retailing [online]. Available at: http://www.internetretailing.net/2010/09/ecommerce-set-for-slowdown-says-verdict/ [Accessed 22 January 2011].
Rigby, C. (2010) Social commerce set to be key in 2011. Internet Retailing [online]. Available at: http://www.internetretailing.net/2010/11/social-commerce-set-to-be-key-in-2011/ [Accessed 22 January 2011].
Shannon, S. (2010) U.K online shopping will slow significantly, Verdict says. Bloomberg [online]. Available at: http://www.bloomberg.com/news/2010-09-23/online-shopping-will-slow-significantly-on-spending-cuts-verdict-says.html [Accessed 23 January 2011].
Stables, R. (2010) International expansion in an online world. European CEO [online]. Available at http://www.europeanceo.com/business-and-management/international-expansion-in-an-online-world [Accessed 23 January 2011].
Tao, Z, Yaobin, L, & Bin, W. (2009) The relative importance of website design quality and service quality in determining consumers’ online repurchase behavior, Information Systems Management, 26, 4, pp.327-337, Available through: Business Source Corporate, EBSCohost [Accessed 22 January 2011].
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HARRY MACDIVITT
Theword‘value’isusedsooftenthatit is in danger of losing whatever
meaning it had. In short, the concept ofvalue has itself become devalued! Valueis the core driving force underlying everybusinessdecision.Thereforeitisimportantthatweknowwhatit is,howit isdefinedandusedinordertoyieldrealinsightsintoourdailywork.Hereare just someof theanswerswehearwhenweaskmanagerstodefinetheterm:• ValueisgettingmorethanIpaidfor(or
expected)• ValueistheperceptionthatIneedyour
solutionmorethansomeoneelse’s• ValueisperceivingI’vehadagooddeal• Valueisgettingafeel-goodfactorfrom
atransaction• Valueismakingmylifeabiteasier• Valueisamystery!AlanWatson,aLondontaxicabdriverandgreengrocer,hadthistosayaboutvalue:“My family has owned and operated a fresh fruit and vegetable stall in London for more than 90 years. We have come through two wars, a great depression and a deep recession. We are about to go into another recession. We survived all of these, and we will survive the next one too. How? By listening carefully to what people want, doing our best to give them it - and even a little bit more. People are more interested in value than price, and that’s just what I give them. I have customers who have been coming back to me for more than 40 years!”
Alan’s message is simple, durable and actionable.“Understand exactlywhat peoplewant - and give them it!”Themessageissimplebutweneedtointerpretitinthecontextofthecomplex, technology-driven and intensely competitive corporateworldofthe21stcentury.
COMMODITy OR NOT A COMMODITy?Mostofuswouldprobablyagreethatwhenitcomestocommodities,waterisafairlybasicone.Whenweturnonthetapweexpectwatertocomeout.HereintheUKthatwaterispotableand,accordingtoThamesWater,veryinexpensive,ataround0.002pperlitreatthetimeofwriting.Onthatbasiswhywouldanyonewanttopayanymoreforwhatis,afterall,justH2O?
Clearlyalotofpeopledo.TheUKbottledwatermarketisworthcloseto£1.5billionperannum–ahighpriceforsomethingthatis
WHAT IS VALUE?
In an exclusive edited extract from their forthcoming book, Harry Macdivitt and Mike Wilkinson get to the heart of value.
MIKE WILKINSoN
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soinexpensivefromthetap.Somehowthebottledwatercompanieshavesucceededindifferentiatingtheirofferingagainsttapwater-andtheirothercompetitors-veryeffectively.Indoingsotheyhavecreatedbenefits in themindsofconsumers,perceivedor real, towhichconsumersclearlyattachsomevalue.Thisperceivedvalueisbothtangibleandintangible.Consumers justify theirpurchasesgenerallyonthebasisoflogicalarguments–it’sconvenient,ithasfewerchemicalsinit,it’spurer,it’shealthier.
Howmuchofthisisactuallyfactualandhowmuchistheresultofmarketingefforts isopen todebate.However,value isderivedfromconvenience(youcan’ttakeatapwithyou!),perceivedhealthandtastebenefits(despiteThamesWater’stapwatercomingfirstinablindtastetestsomeyearsago),andimage(ifthepeopleonthenexttableintherestaurantaredrinkingvolcanicwaterfromNewZealand,yourjugoftapwaterisgoingtolookabitsad!)Claridge’sHotel inLondonnowhasawatermenutositalongside itswinemenu.Andthepriceofabottle?Anythingfromafewpencealitreto£50andmore,forwater!SimpleH2Owithalittleextra–brandimage,cachet,abottledesignedbyJeanPaulGautier.Sowhatiswater reallyworth? Is it 0.002p a litre, or is it £50ormore?Oreven…Howmuchwouldyoupayforalitreofwaterinthedesert?
If abasiccommodity suchaswatercanbedifferentiated sobroadlyandeffectively,imaginewhatyoucoulddowithyourownproductsandservices.
SOME INTERPRETATIONS OF VALUELet’sdrilldownalittleintothisthingcalled‘value,’andtrytopulloutafewimportanttruthsthatwillhelpusonthewaytocreatingarobustdefinition. Value as a perception and an expectationWhen we compare one offer with another, we select that offerwhich captures most completely whatever we are looking for.Ourbeliefinitsabilitytoactuallydeliverwhatweexpectisbasedonperceptionsalone, ifnootherobjectivesourceof informationisavailableat the timeofpurchase. In thisscenario, thebuyer isconditionedbythemessagesreceivedpriorto,oratthesametimeas,thepurchase.Objectiverealitydoesnot‘kickin’untilratherlaterwhenthepurchaserhashadtimetoreflectonthetransactionandtoobserveperformanceinuse.Value as a quid pro quoWeexpectafairtransactioninwhichtheworthtousoftheitempurchasedisatleastequalto(andcertainlynotlessthan)thesumofthesacrificeswemakeinprocuringit–timetosearchforand
choosefromamongoptions,costofmoneytopurchase,thepriceitself, andany associatedpsychological risk factors.The sacrificeis not of a monetary nature alone; it also reflects our time andeffort in seeking out the goods in question and is logically thebestuseofthelimitedresourcesatourdisposal.Inshort,thisisarationalbuyer’sexpectation.Value as an enhancement of our situationAconsumerorabusinessmanagerwillinvesthismoneyinwayswhichwillimprovehislifeinsomemeaningfulmanner.Whilehemightbewillingtoacceptaquidproquooffer,heisdelightedifheactuallyreceivesmorethanheexpected,especiallyifwhathedoesreceivegenuinelyenhanceshissituation.
WHy DOES VALUE MATTER TODAy?Clear advantages accrue to businesses that apply a value-basedapproach to their thinking. A focus on value is really a focuson understanding the actual needs of customers and finding aunique anddifferentiatedwayofmeeting thoseneeds effectivelyand efficiently. A value-based approach demands single-mindedcommitmenttoinnovationandcreativity–andasustainedsearchforuniqueness.Managersofvalue-orientatedbusinessesareconstantlyonthelookoutfornewwaysofmeeting,perhapsevenanticipating,their customers’ needs anddoing so in amannerwhich permitsthemtoexploittheiruniqueness.
Afrequentchallengesalespeoplehearisthattheirproductsare“justcommodities.”Whilethismaybetrueinsomecases,itisusuallyputforwardbyashrewdbuyerasaploytoextractsomeundertakingfrom the salesperson, usually in the form of a discount or someotherdeal‘sweetener.’Ifwehavegenuinelyincorporatedintoourproductdevelopmentprocessesandourservicedeliveryactivitiesareal focusoncustomervalue, thisshouldenableus torespondin amannerwhich repudiates any assertion of commoditisation.Inshort,avalue-basedapproachtobusinessprovidesanexcellentcountertothechallengeofcommoditisation.Differentiationisnotjustaboutdoingsomethingdifferent. It isaboutdoingsomethingdifferentinamannerthatreallymatterstoyourcustomer.Byclearlyfocusing on customers’ needs and pain points, we can uncovernovelwaysofserving.
A value-based approach generates lasting customerrelationships which are more difficult to dislodge thanrelationships based solely on price. In that sense, product andservice lifecyclescan reasonablybeexpected tobesignificantlylonger than those which are not based on understanding anddeliveringrealcustomervalue.
“WHAT IS A CyNIC? A MAN WHO KNOWS THE PRICE OF EVERyTHING AND THE VALUE OF NOTHING.”
- OSCAR WILDE
THE PRICE OF A BOTTLE OF WATER? ANyTHING FROM A FEW PENCE TO £50.
A FOCUS ON VALUE IS A FOCUS ON CUSTOMER NEEDS
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THE “VALUE TRIAD©”Valuemeansdifferentthingstodifferentpeople.Evenforthesameperson,differentcontextsmaycreatedifferentvalueperspectives.For instance, the executive travelling on businessmay opt to flyBritishAirwaysbecauseofherperceptionofsuperiorservice,accessto business lounges, and perhaps even prestige.However if shetravelsatherownexpense,costsbecomeamorecompellingfactorcausing her to choose a budget carrier instead.The purchasingcontext,andwhoispaying,hasaprofoundimpactonthedecision.
Valuecanmeanperception,anexchangeorevenaneconomicenhancement. A simple definition is inadequate to capture thiscompletely.WedevelopedtheValueTriad©conceptasapracticaltool tocaptureasmuchaswecanof therichnessandvarietyofmeaningencounteredinvalue.WedefinethethreeelementsoftheValueTriad©as:• RevenueGains(RG)• CostReductions(CR)• EmotionalContribution(EC)
RevenueGainandCostReductionboth focuson the functional,tangible,objectiveelementsofvaluewhilstEmotionalContributionfocusesonthemoresubjectiveelements.Revenue Gains (RG)Thesearetheimprovementsinrevenuethataccruetothecustomerastheresultofthepurchaseanduseofyourproductsandservices.Outcomes such as superior yield from manufacturing processesor service delivery initiatives, greater revenue streams throughtheir ability to create and sell a better and more competitiveservice, or through their ability to charge a premium price forproductsandservicesinturn,ortoincreasemarketshare.Theyallgeneraterevenuegains.
Cost Reduction (CR) This isourability tohelpacustomer toreducehiscosts throughthe use of our products and services. This is not merely aboutreducingthepriceofpurchasedgoodsandservices.Costreductionsforyourcustomercanalsobeachievedbyreducingdirectlabourhours, having longer periods between servicing, employing lessexpensivepersonnel,trainingstaffinnewskills,reducingshortandlong term capital expenditure, and so on. Cost reductions mustbe achievedwithout compromising subsequent value delivery toyourcustomer’scustomer.
Emotional Contribution (EC) Thisarises frommanysourcesand is ingeneral linkedclosely tothe“feelgoodfactor”–e.g.reductionof“hassle”,peaceofmind,increasedconfidence,greatersafety,pleasingtotheeye,personalgain,trust,self-esteem,absenceofrisk,etc.Therearelotsofthese,but to appreciate them fully we need to put ourselves in ourcustomers’shoesandseetheworldfromtheirperspectives.
While there may be alignment around the more tangibleeconomic factors, executives often have quite different opinionsaboutwhataffectsthem,personally,fromanemotionalperspective.This makes it very difficult to create a universally acceptable,objectively verifiable quantitative estimate of emotionalimpact. Emotional considerations have a profound but hiddenimpact on the overall attractiveness, or even acceptability, of aproposal.What may be an overwhelmingly attractive economicoffer can be overturned by an adverse emotional viewpointofakeydecision-maker.
REVENUE GAINS
COST REDUCTION
EMOTIONALCONTRIBUTION
VALUE TO THE CUSTOMER
The Value Triad©
A RICHNESS OF MEANING
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VALUE DRIVERSAValueDriverisanyfactor,which,ifabusinessactsonit, leadsto an enhancement of competitive advantage. B2B drivers aremostlyeconomicinnature. InB2C, theseare likely tobe largelyintangible.ThatisnottosaythatitisimpossibletofindintangibleorevenemotionaldriversinaB2Btransaction.Afterall,businessisaninterpersonalaffair.Likewise,whilemanyconsumerpurchasedecisions may be emotional, perhaps even impulsive in nature,manyaredrivenbyeconomicconsiderations,andincreasinglysoduringtimesofrecessionorfinancialstringency.
Economicvaluedriversare factorswhichultimatelyresult inincreasedrevenueordecreasedcosts.Thesefactorstendtoincreaseprofitabilityorreduce/eliminateeconomiclosses.Thesefactorscanbemeasuredorcalculatedwithrelativeease.
Emotional value drivers are factorswhich ultimately lead tosome improvement in the customer’s emotional satisfaction, orthe avoidanceof a reductionof his emotional satisfaction.These“intangible”factorsaremuchmoredifficulttomeasureorcalculate.
Nevertheless we must try to assess the “worth” of anEC element to a customer in a given context, and its relativeimportance in the buying decision. If there is little differencebetween competitors on RG and CR elements, the EC factorsbecomevery importantdriversof thefinaldecision,andperhapsevenatie-breaker!
Some factors contribute to both. For instance, a companymanagerwhosepurchasedecisionleadstohiscompanyachievingor increasing profitability will also experience some feelings ofsatisfactionandimprovedself-esteem.
BelowweidentifytheextenttowhichdifferentValueTriad©elements have an impact on a “typical” B2B transaction and“typical”B2Ctransaction:
Usually B2B decisions are based largely on economic factors.ManagerstendtoemphasiseCRmorethantheRGconsequencesof a decision. It is relatively rare in B2Bwork that EC elementsareexplicitlyconsidered.TherearepowerfulECimpactsfromwhatappearsatfirstsighttobeaneconomicallydrivenchoice.Theofferisunlikelytobeacceptedunlessitcanbedemonstratedobjectivelytohaveeconomicworth.ButwemustalsosearchdiligentlyforanyECimpactswhileconstructingavalueproposition.
ECisdominantinmanyB2Ctransactions.CRisalsocommonin B2C e.g. in relatively mundane transactions such as weeklysupermarketshopping.Economicfactorsplayasignificantrole,andcomplementtheECcreatedbypackaging,brandingandadvertising.When money is scarce, cost awareness increases dramaticallyamongsomesegmentsofthecommunityandmaydwarfECfactors.RGfactorsarerelativelyuncommonbutdoexiste.g.ininvestmentsindividuals make in their education, self-improvement coursesand services to facilitate job-finding.During recessionwemightexpectCRelements tobecomemoredominant in theconsumerpurchase decision.The ideaswe discuss here have a significantimpactonour thinkingaboutmanagingchannels tomarket,andhow we might craft differential value propositions to different“players”inthechannels.
CR
EC
RG
100%
0%
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% o
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Extent of the impact of Value Triad© Elements on “typical” B2B and B2C Transactions
‘INTANGIBLE’ EMOTIONAL FACTORS ARE MORE DIFFICULT TO MEASURE BUT CAN BE POWERFUL
A KEy COMPONENT OF VALUE-BASED PRICING, THE VALUE TRIAD© WAS FIRST INTRODUCED IN
the Challenge oF Value By MACDIVITT AND WILKINSON, 2010.
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DIFFERENTIATION“Differentiation”describesanyaspectofour total customerofferwhich is different from the competition and, crucially, which isvaluedbythecustomer.Itisalotmorethanameredifferenceinspecification.Ourproductor servicemaywell bedifferent fromthatofthecompetition;however,unlessthisdifferencedeliversrealvaluethatthecustomercanidentifywith,understand,acknowledgeandbewillingtoinvestin,thenitismerelyapointofdifference-nothingmore.
If we canmanipulate some aspect of price or performanceinawaythatmobilisesouruniquecapabilities, inawaythatnocompetitorcanpossiblyemulate,andasaresultcreateanelegant–perhapsevenunique-solutiontoacustomer’sproblem,thenwehaveawinningproposition!Thisisinfinitelyeasiertosaythantodo.Neverunderestimateyourcompetitors’abilitiestosurpriseyou.Andnever,ever,maketheassumptionthatyourdifferentiationwillmakethecompetitionirrelevant.Thisisbothfoolishanddangerous.Thequestionyouneed toask is“whatcanwedo, in relation toourtotalcustomeroffer,toencouragethecustomertochooseus,andremainwithus?”
Thisdistilsdownto“whatarethecriticaldifferencesbetweenusandthecompetitionandhowdotheyinfluencetherelativevaluethecustomerperceives?”Notethatthisabsolutelymustbefromthecustomer’sperspective–notours.Ourviewsareirrelevant–wearenotthebuyer!Oursuccessinmeetingcustomers’requirementsisbased,atleastinpart,onlisteningto(andfullyunderstanding)thecustomer’scontext,valueaddingprocessesand‘painandpleasurepoints’andhowwecanmobilisethisinformationinthecreationof a product or service which offers real differential advantagefromhisperspective.
Ifdeliveringvalueisaboutenhancingourcustomer’scompetitiveadvantage and if competitive advantage is about our customer’sability to leveragehisdifferentialvalue in turn, thendeliveringadifferentiatedvalueisaboutourabilitytoenhanceourcustomer’sdifferentiatedvaluebetterthananyoneelse.Aminorspecificationchangeisnotadifferentiationunlesswecandemonstratecrediblyhowitaddsrealvalue.Achangethat,forinstance,makesaproducteasier for us to produce or a service easier to deliver, is not adifferentiation from the customer’s perspective. However, if thischangecanmake thecustomer’s lifeeasier,orhisbusinessmoreprofitable,itmaybeadifferentiation.Itonlybecomesoneoncewecandemonstrateconvincinglythatitwillenhanceourcustomer’sbusinessineconomicoremotionaldimensions,orboth.
Wemustresistthetemptationtomakechangesinspecificationmerelybecausewehave the technologyor know-how todo so.Technologycanbeincrediblyseductive,particularlyifwehavealarge technologyportfolio.Philips, for example,hasawonderfultrackrecordoftechnologydevelopmentandanimpressivestreamofnewproductintroductionsovermanyyears.Marketplacesuccessofteneludedthecompanybecausetheirproductshadnotbeenbuilt
aroundrealcustomerinsight.Manywerevisionaryandbeforetheirtimebutwithdrawnbeforethemarketcaughtup.ConsumerinsightwaswhatwasneededandittookachangeofChiefExecutiveforaconsumerfocustobeintroducedthroughoutthewholeorganisation–adramaticshiftinemphasisawayfromtechnologypush.
Bewareoffallingintothetrapofbelievingthatyourproductsarecommodities.Thisisafasthighwaytoaself-fulfillingprophecy.Ifwestarttobelievethatourproductisacommodity,ourthinkingwillchangesubtlyandsowillthewayweapproachthebusiness.Wewillignore,ordiscount,thevalueofanydifferentiationwedopossess.Wewillnotpromoteitandwewillthusleavethecustomerwithaclearimpressionthatwearejustoneofthecrowd.Thewaytocounterthisistochallengeanyassertionthattheproductis“justlikeeveryoneelse’s”.Demandjustificationofthisassertionandbereadytopresentstronglyrebuttingarguments.
Ofcourse,yourproductmaybeheadingtowardscommodityland.Ifso,thisistimeforathoroughrootandbranchassessmentoftheproductanditsrelevanceinthemarket,asearchforpotentialdifferentiators (existing or new!) and a strategy to re-position theproductinthemindofyourmarket.Inonewelldocumentedcase,Rhone Poulenc was able to find a new use for silicon dioxide(sand)asacomponentofcartyrestoreducerollingresistanceandimprovefuelconsumption(Hill,McGrathandDayal1998).Neverstoplookingforcustomerandproductinsightsthatcanleadtonewroutestodifferentiation(MacMillanandMcGrath,1997).
Inanyworkyouaredoing indifferentiation,youmust thinkinValueTriad©terms–andask the famous ‘SoWhat?’question.“So…What advantageswill this changemake in the customer’soverallproductorserviceexperience?”Iftheansweris“none,”or“negligible”–DON’TDOIT!Allyouaredoingisincreasingyourcostandreducingyourmargin.
WHAT ADVANTAGES WILL THIS CHANGE MAKE IN THE CUSTOMER’S OVERALL PRODUCT OR SERVICE ExPERIENCE?
IF THE ANSWER IS ‘NONE,’ DON’T DO IT!
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ROUTES TO DIFFERENTIATIONThe complex, technology-packed products in today’s marketscomewithahostofpotentialdifferentiators.Hereareafewideastothinkabout:ConsistencyHaveyoueverhadtheexperienceoftakingyourcarforaserviceatyourlocalgarage?Thefirsttimeyougo,thejobisdoneperfectly.The car is clean, performs well and the bill is reasonable.Youare delighted and resolve to use this garage in the future. Nexttime,however, the car is returned in adisgusting state.Half thework is not done, themechanic couldn’t care less, and the billis outrageous.The service delivery here is inconsistent.There isclearlylittleornoqualitycontrolinoperationandsothestandardofservicewereceiveisalottery,dependingontheprofessionalismoftheindividualmechanic.
We can differentiate our service by ensuring that our customers receive consistently great service - not just once but every time. Dependable, reliable service breeds dependable, reliable customers.ConvenienceA European chemical company carved out a large slice of themarketforitsspecialisedmaterialsusedinmanyB2Bapplications.This market is dominated by huge companies such as Hexion,Bayer and DuPont and is in large measure commoditised. Thestandardapproachwasforsupplierstoshiptheirproductmonthly,inhundredsoftons,andforthematerialtobestoredinhugetanksonsiteuntilrequired.Thisprocesslocksupmillionsofeurosandthousandsofsquaremetresofprimespace.Thesupplier’slogisticsguaranteedjust-in-timedelivery–afeaturethatatthattimecouldnotbeemulatedbyitscompetitors.Theeffectwasthatcustomerswereabletoreducethesizeofthestoragefacilitiesrequiredandunlockbothworkingcapitalandspaceforexpansion.
By enhancing the convenience to our customer of using our product or service, we may be able to lock them in – especially if our competitors cannot copy our methods.CustomisationDeliveryofacustomizedservicedemandsdeepunderstandingofourcustomers’valueaddingprocessesorproductionoperations.Deep understanding can only come from a proper discoveryprocess,anddemandsin-depthexaminationoftheclient’sbusiness.
McKinnon & Clarke, a company operating in the energyefficiency consultancymarket, routinely undertakes detailed siteassessments of their clients’ energy consumption.As a result ofthedeepunderstanding that results, theyofferhighlycustomisedrecommendationsforenergycostreduction.Theserviceproviderand the client share in the cost reductions achieved throughimplementationoftherecommendations.Theclientpaysnothingupfrontfortheservicewhichisundertakenattheserviceprovider’srisk.Customerloyalty isassuredthroughmajorcostreductions–oftenhundredsof thousandsofpounds–which theclientcouldneverhaveachievedindependently.Theserviceisdifficulttocopy
becausetheconsultanthasyearsofexperience,anencyclopaedicknowledgeofenergycostsfromallsuppliers,andarobustanalyticalprocessundertakenbyhighlyqualifiedandskilledconsultants.
By clearly and thoroughly understanding our customer’s value adding processes, and pinpointing where our company’s unique skills can be applied, we can create a mutual dependency which yields benefits to both client and service provider.CombinationsVirginMobile,aMobileVirtualNetworkOperator,wasexploringopportunities in the fiercely competitiveUSmobilemarket.Thismarketwasat the timedominatedby thebigplayers likeSprint,
FOUR STEPS TO BUILDING VALUEUnderstand your customerJustlikewhenestablishingpointsofdifferentiation,youcanneverknowtoomuchaboutyourcustomer.Everyscrapofinformation you collect may have a profound impact onyour understanding of their business, context, strategy oraspirations. Respect diversity! Everyone is different. Evenin the same segment, each company is different.Value isdifferentforeverycustomer,andevenforthesamecustomerunderdifferentcircumstances.So,toidentifyvalueproperly,we first have to know and understand – really know andunderstand–ourcustomers.Wemust learneverythingwecanabouttheirRG,CRandECvaluedrivers.Know your differentiationMakeityourbusinesstoknow-atadeeplevel–howandwhy you are different from your competitors in order toidentifyyourcompetitiveadvantagesanddisadvantages. Invirtually every buying decision, customers have choices.Theywillmaketheirdecisionaboutwhatproductorserviceto buy based on the perceived value to them of thesecompetitivedifferentiators.quantify the differentiatorsYou need to be able to quantify the RG, CR and ECdifferentiatorsinthecustomer’sownfinancialtermsorothermetrics.This is probably one of themost difficult aspectsof selling and marketing on value. It can present a realobstacletoitseffectiveimplementation.It is importantthatthis is donecorrectly, and from thecustomer’sperspective-notfromyourown!Communicate your differentiated valueThis task is crucial andenormouslydemanding,especiallyon sales people who may need to re-learn their trade!The differentiated message needs to be presented bothcompellinglyandsensitively topersuadethecustomer thattheyneed thevalueyouoffer–and thatyouare the rightpeopletodeliverit.
DIFFERENT PRODUCTS AND INDUSTRIES CALL FOR A DIFFERENT COMBINATION
OF ROUTES TO DIFFERENTIATION.
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Verizon and AT&T.There seemed no way in.The company setabout searching for a poorly served sector and discovered it intheyouthmarket.At the time, the typicaloffer foryoungmobilephoneuserswasexactlythesameasforadults.Noothersupplierhaddifferentiatedtheoffertotheiryoungcustomers,thestandardofferbeingmonthlycontracts,tiedhandsets,peakandoff-peakcallrates(which,confusingly,changedfrequently)andpremiumpricedserviceslikeinternetconnection.
Virgin, long experienced in serving the youth market inits music businesses, understood the needs of young peoplemuchbetter than thecompetitors,noneofwhomhadmadeanymeaningful inroads into thismarket. Furthermore, their excellentcontacts in the entertainment sector afforded an opportunity toprovide unique, specialist content which could not be copiedby competitors.The operator constructed a specifically targetedyouthoffer.Theyeliminatedthemonthlycontract (arealboneofcontention),providedaneasytouseandeasytounderstandbillingstructure inwhich customersonlypaid forwhat theyused, thuseliminatingmonthlybillingandstatementswhichparentsmightsee,andincorporatedahostof“cool”featureslikemusic,wallpapers,ringtonesandevenconciergeservices.Theoperatorwasthefirsttosucceedinthismarket.
We can differentiate our offer by truly understanding the real needs and motivations of our customers – and responding to them. CharacteristicsThecharacteristicsofyourproductorservicemaybesufficienttodifferentiate it. Factors such as size, speed, colour, components,bundlesor“add-ons”allmayconferdistinctiveness–andmakeithardforcompetitorstoemulate.Sony,forinstancehasalonghistoryof creating clever consumer products throughminiaturization ofelectronic circuits and introduced suchdisruptive innovations asportabletelevisionsandtheWalkman.
Bundling of discrete product elements into a solution istoday a popular method of creating differentiation. It can onlywork if the bundled elements genuinely add real “TriadValue”and are difficult or impossible for competitors to emulate e.g.Microsoft’sOfficepackagesandFreseniusMedicalCare’sOnlinePurificationCascade.
Thekeyissueforsuccessistobeabletocreateasolutionthatgenuinelymeetscustomers’needsinawaythatcannotreadilybecopiedbyothers.Thismeanslisteningcarefullytowhatthemarketissaying,anddesigningyourproductsothatitcanbeassembleddifferently for different requirements, tested to demonstrate thatthe assemblies work in any given customer’s context, and thecomponents carefully sourced, selected or developed uniquelyforyoursolution.
Merelythrowingtogether“bitsandpieces”fromofftheshelfandcallingthisa“solution”isnotonlyunlikelytoworkbutwillincur real wrath and deep cynicism from buyers!When a realsolutionemergestheywillmigrateenmassetothenewsupplier.
We have reviewed only a handful of possible ways todifferentiateourproductorservice.Therearemany,manymore.However we decide to differentiate, we will need to followthesesteps:1. Learnasmuchaspossibleaboutthecustomer,hiscompany,
and his market. There is lots of information in the publicdomainanditneednottakealotoftimeorefforttocollectit.Itissimplynotpossibletoknowtoomuch!
2. Considerwhatourresearchsaysaboutourcustomer’scontext.Wherearethesourcesofpainanddifficultyheissufferingthatnon-oneelseseemstobeaddressing?
3. Find ways of using our own unique capabilities, contacts,technologies or other resources, and weave them into asolutionthatisdifficultforcompetitorstocopy–andeasyforthecustomertobuy!
4. Buildapowerfulvaluepropositionandlearnhowtodeliveritpersuasivelyandcompellingly.
COMMUNICATING AND DEMONSTRATING VALUEHowever cleverly we believe we have created a differentiatedproduct, service or solution, the final arbiter is, of course, thecustomer. Communicating our differentiated solution in a clear,compellingandpersuasivemannerisvital.Whatbuyersanduserswanttoknowarethefollowing:1. Doesitworkthewaythesalesmantellsus?2. Canitbeused/implementedinourorganisation?3. Doesitdelivertheresultswewantandneed?4. Whatevidencecanwebegiven?5. How canmy risk (psychological and financial) be reduced
oreliminated?
The first two questions are part of the salesperson’s “discoveryprocess” – i.e. before comingupwitha recommended solution,thesupplierneedstosatisfyhimselfthatthesolutionisappropriateforthespecificcustomer.Ifyoucannotmeettheirneed,behonestand say so!Questions3,4 and5,bycontrast, are crucial if thecustomeristobepersuaded.Acentralpartofthesalesprocessistheabilitytoidentifyand,wherepossiblequantify,therealbenefitstotheorganisationasawholeandindividuallytomembersofthe“buying centre”. Thinking about measurable performance andeconomic factors isgood,but it isnotenough.Weneedalso tothinkthroughhowthepurchasewillimpactindividuals.Thispartisoftenoverlooked,yetitissoimportant.Itisaboutunderstandingandmanagingpsychologicalriskontheonehand,andpresentinganattractiveaspirationalvisionontheother.
TheValue Triad© can help us here. It may be possible toestimate,oreven topinpoint, theexactoperationaloreconomicimpact (RG or CR) of a purchased product or service on thecustomer’s processes. In complex B2B situations this requirestechnicalanalysis.Muchof thisworkshouldbedonebystaff in
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Harry Macdivitt is a specialist in Value-Based Pricing. Initially trained as a chemist, Harry spent a number of years in research before embarking on
a career in business, and now delivers consultancy events for global companies.
Mike Wilkinson works with organisations to maximise the effectiveness of their sales efforts. He has developed Play2Win© to aid the management
of major sales opportunities, and Home Run!© to structure the approach to the consultative sale.
Harry and Mike are co-directors of Axia Value Solutions, and co-authors of The Challenge of Value.
Value Based Pricing will be published in october 2011 by McGraw Hill.
REFERENCES:
Hill, S. McGrath, J. and Dayal, S., 1998. How to Brand Sand. Strategy-Business Editors, 11, Second Quarter.
MacMillan, I. and McGrath, R., 1997. Discovering New Points of Differentiation. Harvard Business Review, July – Aug.
Moore, G, 1999. Crossing the Chasm, Marketing and Selling High-Tech Products to Mainstream Customers. Revised ed. New York: HarperCollins Publishers.
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the supplier’s ‘backoffice’byappropriate specialists.Often thesedetails cannot readily be estimated sufficiently accurately by thesupplier’s people. In this case the salesperson’s role is to collectas much operational information as possible. This is part ofthe“discovery”process.
Somecompaniese.g.Xerox,AlstomPower,AkzoNobel,RicohandMichelintoofferafewexamples,havedevelopedvalueanalysistoolswhichhave,builtintotheirarchitecture,allofthevariantsincustomerneedsthatarelikelytoappearinroutinedaytodaysellingactivity.Thesemodelsaredesignedtobeeasyandstraightforwardforsalespeopletoapplyduringcustomermeetingsandcanbeverypowerful in enabling sales staff to engage the customer, collectcriticalcustomerdataandinstantlydemonstrateeconomicimpactsofdifferentproductandserviceconfigurations.Thebestinformationofallcomesfromthecustomer.
Inmorecomplexcases(orinthecaseofverynewtechnology),externalexpertsmaybeneededtomakethenecessaryassessmentsto encourage adopters to “Cross the Chasm” (Moore, 1999).Professionally sourced data or reports carry much more weightthan thosecreatedbyourownpeople.As faras thecustomer isconcerned,“wewouldsaythatanyway,wouldn’twe!”
Howeverthisassessmentiscarriedout,itneedstobedonewithcare,rigourandadeepunderstandingofboththecustomer’svalueaddingprocessesandhowourproductorservicefitsintothis.Itisnotataskthatcancasuallybelefttothesalesperson.Failuretojustifyfullythevalueaddingelementsoftheproductorservicepropositionmayleadtorejectionofthetotalproposition.QuantifyingtheValueTriad© elements as they apply in a given customer situation iscrucialifyouaretobuildavalue-basedbusiness.
iDEAS Space for your thoughts
IN Crossing the Chasm, GEOFFREy A. MOORE ExPLORES THE ‘CHASM’ BETWEEN THE EARLy
ADOPTERS OF PRODUCTS AND THE EARLy MAjORITy.
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Anuncomfortable(andoftenarathersurprising) truth for developers of
technologyproductsisthattheworldwillnot beat a pathway to your door. In factnobody in their right mind is ever going to spend money voluntarily on your product or service.Thisisthedefaultposition.
BUSINESS BENEFITS Peoplewon’tspendmoneywithyou,thatis, except under one condition: that theyexpect their business to be better off asa result of having yourproductor service. Prettyobvious,whenyoustoptothinkaboutit,butthisraisesanothersetofquestions.Foracustomer’sbusiness, ‘beingbetteroff’ isnotnecessarily thesameas‘havingyourgreattechnology,’intheirmindsatleast.Wehavetoaskbywhatcriteriathecustomerjudgesif theirbusinessisbetterorworseoff.
In principle, your customerswill only care about one thingin this regard: how can they serve their own customers better?Anything thatenables them todo thiswillbeattractive to them.So the question for you is “how will your offering enable your customers to serve their customers better?”Ofcourse,notallyourcustomers will be so enlightened as to see things this way, butneverthelessyouneed tobeable toanswer thequestioneven ifyourcustomerscannot.
In practice, there’s another thing that your customers oughtto care about: how they can outperform their own competition.Anythingthatenablesthemtodothiswillalsobeattractivetothem.Sothe(second)questionforyouis“how will your offering enable your customers to be more competitive?”
Ifyoucan’tanswerthesetwoquestionsforyourself,howcanyoubegintounderstandhowtomakeyourofferingmoreattractive(i.e.beneficial)tothecustomer?You’dbesurprisedhowoftenthesolutionisnot“writemorecode”!
LOOK TO THE CUSTOMERYour challenge is to learn about the business problems andopportunities that your customers face, in practice.A colleagueonceshowedmeagoodtestforhowmuchyouhaveunderstood:could you talk about these two areas for 20minutes (no, not 2minutes),withaparticularcustomer?
Ifyoucan’tdo this,howcanyou tellwhat toput intoyourproductorservicetomakeit irresistibletoyourcustomers?Howwillyouknowwhattheyneed?
BUILDING THE BETTER TECH MOUSETRAP
Do your B2B customers buy your product or service because you have
the best technology, the better mousetrap?
ToNY WILSoN
Illustration by amandabarrett.co.uk
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There areplentyof examplesof companies thathave failedto gain this understanding (or failed to act upon it). Conversely,therearemanythathavehadmajorsuccess,againsttheodds,byunderstandinghowtheircustomers’businesseswork.
Myfavourite“failure”inthiscategorywasin1998,whenawell-knownbreakfastcerealcompanyexperimentedwithadifferentsizeofboxforitsproducts.Thenewboxwasafewcentimetrestallerthan its predecessor, andwas simply too tall to fit into standardkitchencupboards.Itwasrapidlywithdrawn.
Myfavouritesuccessescomefrommyownexperience:Ionceworked fora semiconductorequipmentcompany,designinganddeliveringphotolithographysystems.Thiswasabsolutely leading-edge stuff, and we were a young company competing againsttwomajorestablishedplayers.Onedaywenoticedthatwewereroutinelyabletoinstallandcommissionournewestproductatthecustomer’ssiteseveralweeksfasterthanourcompetitorstypicallytook to get theirs working. This time-saving, for a leading-edgesemiconductor manufacturer, was worth a great deal of money,eveninrelationtothe($5m!)priceofthemachine.Forthenextfewyears,wewonsalesnotbecausewehadthebesttechnology,butbecausewegotcustomersuptospeedfaster.
We also had a business in second-hand equipment, wherewe found that our boxes priced at $750k were regularly out-selling those our competition priced at $350k per unit (whicharguablyperformedbetter).The reason,wediscovered,was thatourequipmentcouldphysicallyfitstraightintothespacevacatedbypreviousgenerationequipment.Asourcompetitors’machineswereasizelarger,customerswouldhaveneededtorebuildtheirexpensiveclean-room;the$400kpricedifferencewasovercome.
In both cases, we won business by understanding the realworldinwhichourcustomersoperated.Admittedly,inboththesecases,ourproductfittedbygoodfortunewithwhatthecustomerwanted,butwewereabletocapitaliseonthisbypursuingthebitsofthemarketwherethesefactorswereimportant.
WHAT CAN WE ADD?Themessage,then,istounderstandhowyourcustomersreallywork(we shall leaveadiscussiononmarket segmentation foranothertime).Thenyoucanaskwhatyoucandotoincreasethebenefittothecustomer.Howcanyoumaketheproductmore“complete”?
Thenexttrickisnottolimityourselftoasking“whatcanwedotoincreasethebenefit?”,buttoask“whatmorewouldthecustomerneed?”Inotherwords,askthequestionfromthecustomer’spointofview.Veryoften,these“extras”taketheformofintangibles.
INTANGIBLESExample1:Acompanywasinthebusinessoflabequipmentforthebiotechindustry,andwasabouttolaunchanewproduct.Itrealisedthatithadtwosortsofcustomers–theresearchlab,wherecostswerecritical,andtheproductionline,whereitwasvitaltokeepthe
equipmentrunning.Soitintroduceddifferentwarrantypackagesforthetwosortsofuser.Theproductionlineuserwasofferedapackagewherebyengineerswouldarrivewithin24hours,sparepartswouldbeheldlocally,andeverythingwouldbedonetomaximiseuptime.Theresearchlabsweregiventheoptionofabasicwarrantyrolledintothepriceoftheequipment(soasnottocallontheirminimalsupportbudgets),withnopremiumsforfastsupport.Thecompanywasthereforeabletolaunchtwonewproducts,eventhoughthehardwarewasidenticalforeach.
PARTNERSExample 2: when you buy a used car from a garage, there’s aquestionofhowtohandletheinsurance.Ididthisawhileago,andmynew(used)carwasduefordeliveryatmiddayonaMonday.Itwaseasyenoughtoswitchinsurancetothenewcaratthattime,youmaythink.However,thedealerwasdeliveringfrom100milesawayandtherewassomeuncertaintyaboutthedeliveryday.Thedealersolvedtheproblembyaddinginoneweek’sinsurancewiththevehicle.ThatwayIdidn’thavetothinkabouttiming,anditwasfineifIwantedtokeepmyoldcarforafewdaysinordertosellitprivately.Suchamodelisnowmoreorlessstandard,Ibelieve.
This is an interesting example, because car dealers are notinsurance companies. In this case, the dealer partneredwith aninsurancecompanytoofferapackagewhichmadeadifferencetothecustomerthatneitherofthemcouldhaveofferedalone.
Themessageisthesameforyourbusiness:identifywhatwouldmakeyourcustomers’liveseasier,andifyoucan’tprovidethisbyyourself,thenfindapartnertodoitwith.Thatway,you’reofferingabetterdeal,andkeepingyourcompetitionatbay.Thispolicycanworkparticularlywellforsmallercompanies,whocantherebybeseentopunchabovetheirweight.
Theworldwillnotbeatapathtoyourdoortoseeyourbettermousetrap,if“better”justmeans“newtechnology”.Butifyoutakethe trouble tounderstand indetail howyour customersoperate,youwillbeabletoidentifythingstoaddtoyourmousetraptomakeitworkbetter.Sometimesyoumayneedtopartnerwithotherstodothis.Butifyoucandoit,yourmousetrapreallywillbebetterbecauseitwillbecomplete,fromthecustomer’spointofview.Andyoumayevengetpaidforit!
Tony Wilson has a Physics PhD (Cantab), and over 25 years’ experience working in Strategic Marketing, Product Management and High-value Selling for high technology companies. He now runs his own coaching
and consultancy business, helping technology-based companies to make proper Marketing and Selling Strategies.
Tony is Lead Tutor for Marketing Planning, Director of the B2B Professional Diploma and Professional Certificate programmes, and
Director of the Marketing for High Technology programme at CMC.
ASK THE qUESTION FROM THE CUSTOMER’S P.O.V.
Photolithography Box Clean Room
Entrance
!Competing photolithograpy systems lost out because they were too large to fit into the available space.
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some organisations have a complexityof stakeholders that we can only
imagine, let alone understand. TheQuantockHillsAONBService, oneof 50teams across Great Britain tasked withprotecting areas of outstanding naturalbeauty,isonesuchorganisation.
AONBshavearemittoinspirepeopletoprotect thenaturalenvironmentaroundthem, to encourage people to enjoy it,and to maximise its benefits to the localeconomy. This fine balance is echoedby diverse and complex interrelationships between the variousstakeholders. Such stakeholders include tourists, landowners,local residents, local businesses,walkers, horse riders,mountainbikers,day-trippersandtheall-importantsourcesoffundingliketheCountyCouncilandNaturalEngland.
Thetraditionalapproachtomarketingtothesevariedgroups,eachwithitsownperceptionoftheroleandvaluethattheAONBteamprovides, is toassumea ‘onesizefitsall’ stance.Thenonemusthopethat thecompromiseofmessagesandcommunicationmethodsgoesat leastpartway to satisfying theirneeds.SuchanapproachisreflectedintheManagementPlan,asevenyearstrategicstatementofintentandtoplinetacticalactivitywhichhelpstotickthe boxes for grant funding but has little if no relevance to themajorityofstakeholdergroups.
Inattempting to support thedevelopmentof ruraleconomicgrowth, the AONB team satisfy constant enquiries from localpeopleatthesametimeasprovidingaRangerServiceforareasthatwouldotherwisebe left to theirowndevices (and indeednatureitself). Indoingso, theyhave identified that theremustbeawayofstreamliningtheircommunicationsactivitytohelpprioritiseandfocustoensureoptimumreturnoninvestment.
Thefirststepinasimplebutoftenignoredprocesswastosegmenttheiraudiencestogainadeepunderstandingoftheintricaciesofeach-andofcoursetheirneedsandperceptionofthevalueoftheAONBService.Theprocessidentifiedsevenkeystakeholdergroups,definednotby the traditionalmethodofdrysociology-economicdatabutratherbyrealnameslikeMargaret,BenandJames.Thesenames, whilst simple to the extreme, have become a commonlanguage within the team, filtering the communication methodsandmessages,andthetone,styleandtimingoftheirdelivery.WhatappliestolocalresidentMargaretisverydifferenttowhatisrelevantforvisitingmountainbikerBen,andhereinliesthekeytounlockingthe 7Ps of marketing: an appropriatemix of marketing for eachindividualtypeofcustomer.
The team identified very quickly that some segments werehard to reach, less influenced by communication and ultimately
A destination team’s journey into customer-focused marketing.
EMBRACING THE 7Ps, NATURALLy
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less important toachieving theobjectivesset in theManagementPlan.This natural prioritisation has allowed the team to quicklyfocus on the most important marketing messages, to develop acommunication timeplan that is relevant for the end customers,and importantly to filter out irrelevantmarketing tools.They seethatmountainbikerBenmayrespondwelltosocialmediawhereasMargaretmaypreferamoretraditionalprintednewslettertokeepintouchwithdevelopmentsrelevanttoher.
Atthehubofthecommunicationplan,animportantevolutioncameintheformofareignitedwebsite.Farfromthedry‘internal-projectfocus’oftheoldwebsite,avibrantnewdualfocussitehasclear signposting to ‘Care’ (designed for landowner James) and‘Enjoy’(toinspireandengagewithtouristsandvisitorslikeBen).Ofcourse,deepinsidethesiteandaccessiblethroughspecificlandingpages,thefinedetailsofprojectstargetedtowardstheCouncilandFundingBodiesarestillheld.Thereissomethingforeveryonebutcontentisprioritised,targetedandfocused.
Witheveryoneintheteamunderstandingthestrategyandthecustomerprioritiesitwasn’talargesteptoallocatesuitablerolesandownershipforcommunication.NolongeristheroleofmarketinglefttotheMarketingOfficer;everyoneplaystheirpart.Importantly,theRangers,whospendalmostalloftheirtimeoutoftheofficeandinthefield,haveembracedblogging.
Exciting and informative real life stories, written for Jamesand Margaret, have made the Rangers celebrities in the localcommunity, raising the stature, credibility and relevance of theAONBTeam.Inthe7Psabalanceisnecessarybetweenproduct,price,place,promotionandmore,andfortheteam,theRangersarenowentrenchedasacorebenefitoftheproduct.
Tomaintainmomentuminwhatmightotherwisehavebeenmerely a ‘nice to do’ exercise, careful plotting of the CustomerJourneys (one for each segment) has ensured the continuedrelevanceofeachandeverypublishedcommunication.
CustomerJourneysintheruralworldneedtoinherentlylinkbackfromdigitalandprintedmaterialstotherealworld,sotouchpoints have been developed providing clear links for interestedsegments.AgoodexampleistheadditionofQuickResponse(QR)Codes to signson theQuantockHills, thefirstAONB to featurethem.Visitorsand touristscaneasily scan thesecodeswith theirsmartphones to link through to an informative interpretation ofwheretheyareandwhatactivitytheyaredoing,therebyenhancingtheexperienceandreinforcingthevaluesofCareandEnjoy.
The timing, location and relevance of all marketing andcommunicationisnowintegratedacrosstheteamand,importantly,throughallchannelsappropriatetoeachoftheprioritisedcustomersegments.ProvingReturnonInvestmentcannowbedonewitheaseateverystepineachoftheplottedCustomerJourneys,ultimatelytickingthemostimportantboxesintheManagementPlantargets.
Together as a team, theQuantockHillsAONB Service cannowcontinuetomarketandcommunicatetheirspecialdestinationintheknowledgethattheyaresustainablyprotectingitforfuturegenerations, aswell as facilitating thebenefits tobehad from ittoday.Byembracingthefundamentalsofthe7Psandmovingawayfrom an ‘internal focus’ the team have created one of themostcustomer-centricservicesofitskindinthecountry.
Neil learnt his marketing with the likes of orange, NatWest and ordnance Survey and now helps
individuals and businesses to communicate more effectively. He mentors marketers on professional CIM qualifications
and tutors on the CIM’s Digital Marketing Diploma. Neil is Cambridge Marketing College’s Digital Media Director.
A panorama of the view from Cothelstone Hill in the Quantocks.
The Quantock Hills: an area of outstanding natural beauty
A VIBRANT NEW DUAL FOCUS: ‘CARE’ AND ‘ENjOy’
Visitors can use their smartphones to scan QR codes on signs in the Quantock Hills to accesss information
about their location (www.quantockhills.com).
RURAL CUSTOMER jOURNEyS NEED TO LINK FROM THE DIGITAL TO THE REAL WORLD
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The high cost of cash is a price thatRetail Banks canno longer allow to
burden their profit and loss statement. IntheUK2.9billioncashwithdrawalsweremade fromATMs in 2008 to the value of£195 billion (Datamonitor 2009, p18).Sourcingthisvastamountofcashpresentsahugecosttothesectorwhich,givenpressuresto maximise returns for shareholders, hastoberemoved.
Withthisinminditisnosurprisethatcontactless payment technology is slowlypickingupspeed.Byjustholdingtheirplasticagainsta terminal,customersarenowabletopayforlowvaluegoodsatanymerchantthatisequippedwiththetechnology.Todate,around11,000UKretailoutletsofferthisservice(Keyfacts2009,p9).
Acrosstheglobe,pilotprojectsarecontinuingtorolloutthesepaymentmechanismsatafuriouspace.In2007,BarclaysbecamethefirstUKprovidertoissuecontactlesspaymenttechnologyonitscreditcardsviaitsBarclaycardsubsidiary(Brignall,2009)andsinceearly2009ithasissuedcontactlessdebitcards.OthermajorretailbankssuchasLloydshavefollowedsuitbyissuingHalifaxandBankofScotlandbrandedcontactlesscards(Keyfacts2009,p9).
ROLL OUT OF CASHLESS PAyMENT TECHNOLOGySowhat isgoing tohappen?Letus fast forward justa fewyears:cashlesspaymentsarecontinuingtogrow,slowlyatfirst,withjusta fewmajorplayerswithin the sector followingBarclays’ lead inprovidingtheserviceforlowvaluetransactions.Inevitably,resistancetothenewmechanismremainsstrongandcashisstillking,butourtechnologicallyliterategenerationbegintotakenotice.Fromtheserootsgrowanevenmoreconvenientcontactlesspaymentmethodusingnearfieldcommunicationtechnologytoallowthecustomertomakepaymentsusingtheirmobilephone.
Ten years on and collaboration between retail bankingcompetitors, intermediaries and legislative bodies has seencashlesspaymentsrolledoutacrossmillionsofmerchantsaroundthe western and emerging world; cash is dying a slow deathas this more convenient payment method has emerged andrapidlybecomestandardised.
Vastopportunities for retailbankshavenow reallybegun todevelop.Sectorbarriershavebrokenacrosstheglobe;hugenationalbankingorganisationspreviouslyunknowntotheUKhaveenteredthe market. As a result strategic alliances and takeovers havegatheredpaceastheystrivetogainmarketshare.
CASH IS KING, BUT NOT FOR MUCH LONGER
There is a change on the horizon that promises to affect all of our lives. Once key barriers are overcome, we will see the removal of cash from society. It is a change that will happen much
quicker than you would ever imagine, and marketers need to be ready.
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BIOMETRIC PAyMENT TECHNOLOGIESAswegetnearerto2030,cashlesspaymenttechnologywill takeanewdirection:biometrics.Nolongerwilltheconsumerneedtocarryanythingwith themtopay for theirgoods, theywill simplyuseascanoftheiririsand/orthumbprinttoconfirmtheirpayment.Likeitspredecessors,takeupwillbeslow,butoncecustomersareassuredofthesecurityoftheirfinancialdetailsitwillsoonbecometheprimarypaymentmechanism.
Doesthissoundalittlefar-fetched?Thistechnologycurrentlyexists.In1998NationwideBuildingSocietyconductedasuccessfultrial using biometric technology. It was only the expense of therequired capital investment that stopped it frombeing rolledoutacrossthenation(Sangani,2005).
VISIBILITy LIKE NEVER BEFOREWithknowledgecomespoweranditiscustomerknowledgethatwillcauseafundamentalchangetothesector.TheBankingsectorwillrelishthewealthofnewopportunitiesthatthisadvancementhasgenerated.Competitiverivalry,whichhasbeenintenseeversincetherolloutofcontactlesspaymenttechnology,willcontinuetoberuthlessaseachplayerinthesectorcompetestobecometheproviderofthe‘gateway’currentaccountforallcustomersthatitdeemsprofitable.Withoutcashtransactions,whichareinvisibletothesector,thecurrentaccountwillnowbethetoolthatmakesallpurchasesvisiblelikeneverbefore.
Banks will begin to truly understand their customers byanalysingeverysingleoneoftheirpurchases.Theywillbeabletoclearlyidentifyeachcustomer’sstageinlifeandtheirrolewithinthefamilystructure,andusethistopredicttheirvalues,needs,wantsandaspirationsonanunprecedentedscale.Thisinformationwillbeusedtoidentifykeysegmentspreciselywithintheircustomerbasewherecustomerssharethesamebehaviour.
If this information is used correctly, it will help to deliversuccessfulcross-saleandretentionstrategiesasaresultofdetailedcustomer propensity insights. This will allow banks to provideofferingsthatarebothrelevantand,moreimportantly,indispensabletoeachcustomerwithintheiridentifiedsegment.Itwillalsoprovidekey learnings for successful acquisition strategies, using theircustomerbaseasacomplexpredictiontoolfortargetingprospects.
Thiswillhaveamassiveimpactoncompetitivestrategywithinthe sector. Each player will invest huge amounts of resourcesin time,personnelandcapital towin thefight for theconsumer.Theywillspendvastamountstosignificantlydevelopthecustomermanagementsystemsandanalyticaltoolsthatareinusetodaytoensuretheyareabletostoreandmanipulatetheextensiveamountsofnewdatathatwillbeavailabletothem.Theywilltrainpersonnelthathaveexpertiseandknowledgeofthesesystemstobeabletoprovideinsightstothekeydecisionmakerswithintheorganisation.
CHANGING THE SHAPE OF THE MARKETInevitably, one organisationwill diversify to try and gain a first-to-market advantage. However, it will soon be pegged back byimitatorsas thecashcowthat is thecurrentaccount relationshipwillsuddenlymakewayforanewstar(Palmeretal.2007,p45).
Thisorganisation(beitLloyds,HSBC,oranorganisationthathasrecentlyenteredtheUKmarketsuchasWalmart,MitsubishiUFJFinancialorICBC)willusetheirleveragetoforgenewallianceswithkeyorganisationsacrossothermarkets, fromutilityprovidersandlocalcouncilstoestateagents,communicationprovidersandfurtherafield.Inshortthecurrentaccountrelationshipwillbecomeamuchmorecompleteoffering.Throughtheircurrentaccount,bankswillactasanintermediaryfortheircustomers’needs.Theywilldevelopa new relationship service (tailored to newly-identified detailedsegments) thatwill provide solutions for all the key problems intheircustomers’lives.Theywillnegotiatehugelydiscountedratesasaresultoftheirstatureandpowerinthesupplychainandtheywillchargethecustomeranominalamountfortheirservices,allinthehopeofdeveloping loyalty to thebrandand increasingotherproductholdings.Inshortthecustomerwillbeablesortouttheirenergy,communicationandlocalauthoritypayments,andevenselltheirhome,allthroughtheircurrentaccount.
Ifbankshavedonetheirresearchproperly(sothattheytargetthe right tailored product to the right market segment) and thisnewinnovativeproductbeginstogrow,thensmallerplayersinthemarketthathavebeenstrugglingtocompetewillfallbythewayside.Thisisbecausetheywillhaveinsufficientpowertonegotiatethirdparty relationshipswith the sameprice andquality of service astheircompetitors.Consequentlylargerbankswillswallowuptheseproviderstogainaccesstotheircustomerbase.
A LITTLE FAR-FETCHED?
Iris recognition technology has been successfully trialed by Nationwide Building Society. only the expense of the required capital investment stopped it from being rolled out across the nation.
look to the blog: MARKETING FUTUROLOGy AND EMERGING THEMES (2010)
http://tutors.marketingcollege.com/marketing_futorology_-_emerging_themes
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Withinashortspaceoftimethisnewrelationshipservicewillbeprovidedbyallthekeyplayersinthemarket.Ratherthancompetingon price, they will compete on service to aid differentiation bystrivingtobebest-in-class(Hooleyetal.2008,p72).Eachcompetitorwillbenchmarktheiroffersagainstthoseprovidedbycompetitorsinanattempt toprovideastrongerproposition.Successfulbankswillbethoseorganisationsthatclearlyunderstandwhichelementsoftheservicearemostimportanttotheircustomersandareabletodevelopstrategiesandsystemstoensurethattheirstaffcandeliverasuperiorservice(Hooleyetal.2008,p563).
This new relationship-based productwillmean that there isstrategic wear-out (Drummond et al. 2001, p167) of traditionalsales channels. Competitors in the market will invest significantresourcestoreacttothechangingenvironment.Withoutcash,largebranchnetworkswillberemovedtobereplacedbynewflagshipstorescateringforthisnewrelationshipservice.ATMswillsimplydisappear.Traditionalcallcentrestructureswillbevastlyupdatedtoincorporatenewlinesofcommunicationthathaveopenedupasaresultofnewandemergingtechnology,whilst internetbankingcapabilitieswillfaceamajoroverhaulascustomersareprimarilydriventothesechannels.
MARKETING IN 2030Inevitably thisnewmarketwill posehugequestions surroundingmarketingstructureandresourceswithincompetingorganisations.
The influence ofmarketing teams on strategic planningwillcontinuetogrow,astheyareincreasinglyrecognisedasbeingkeytocreatingcompetitiveadvantage.Marketerswillbeexpected tohavetheskillsandknowledgetobeabletoworkwiththewealthofknowledgeattheirfingertips,tointerpretitcorrectlyandtoanalyseitsimplicationstofeedintostrategicplanning.
Theywillbeexpectedtousethesekeyfindingstoensurethatsegmentscanbe identified thatarebothattractiveandprofitabletotheorganisation.Theyshouldalsodeveloptailoredrelationshipcurrentaccountproductsthatarerelevanttotheaudience,withapropositionthatwillmakethemdesirable.
Once key opportunities are identified, successful marketerswillneedsoundfinancialrhetorictopresenttheirproposalstokeydecision-makers.Theywillworkevercloserwithfinancialteamstopresentthepotentialofacquisitionandretentionstrategies,andtohighlightimplicationsoftheseonshareholderreturns.
Withthisnewproductitwillbeessentialformarketerstodevelopstrongworkingrelationshipswiththirdpartyorganisations.Theywillassist inthenegotiationprocessduringproductdevelopmentandoncetheproductislaunched.Theywillworkcloselytocontinueto develop key product offerings, to identify future opportunitiesandtoensureclarityandconsistencyofallmarketingacquisitionand retention strategies. The complexity of this new currentaccountrelationshipwill,by itsnature,meanthatcustomerswillbevery reluctant to change theirprovider, so therewill behuge
implications of getting the right product proposition to the rightsegmentsusingtherightmediumattherighttime.Toaidthisitwillbe necessary formarketers to constantly provide detailed insightintocompetitoractivityandtopredictfutureactions,challengesandtrendswithinthemarketplace.
Theoverhaulofthesaleschannelswillchangethemarketingmediathatareused.Marketerswillcompetefortimeandattentioninachangingenvironment,soitwillbeessentialthattheydeveloprelevantstrategiesandpromotionsusingamixtureofnewmediachannels. It is inevitable that buyer behaviour will be directlyinfluencedbynewtechnology,somarketerswillneedtobemoreadaptive than ever. Like never before, the use of biometricswillallowcustomerstobetargetedastheygoabouttheirdailyroutines.Campaignswill beput in place so thatwhen a customerpassesbyacertaintriggerpoint inashoporotherlocationtheycanbetargeted with a specific promotion via a digital screen or othermobile communicationmedium.Thesemarketers will also haveto be very flexible, as they will operate in ‘live’ environments(such as social media), to ensure that they can adapt to newopportunitiesasandwhentheyarise.Inanymarket,butespeciallyinagrowingmarketsuchasthis,skillsininnovationandcreativitywillbecentraltotherole.
WHAT DOES THIS MEAN FOR MARKETERS?Itisclearthatmassivechangeisonthehorizon,somarketersneedtoacttodaytoidentifytheskillsandknowledgethatwillberequiredfor the role in the future. They need to commit to continuousdevelopmentbydevisingstrategiesthatwillensuretheseneedsaresatisfied.Thiswill then allow them tobebest positioned to takeadvantageoftheopportunitiesthataresettodevelop.
James works for The Co-operative Financial Services. He spent the last 12 months working as a loans product manager, looking after the
customer’s end to end journey and ensuring that Co-op loan products were fit for purpose. He has more recently taken up a Business Delivery
role which is focused on developing long term sustainable relationships with Co-op Current Account customers.
REFERENCES:
Brignall, M. (2009). Fraud concerns over new Barclays debit cards. Guardian, [online] (Last updated 2 March 2009) Available at: http://www.guardian.co.uk/money/2009/mar/02/identityfraud-creditcards [accessed 16 November 2009].
Datamonitor (May 2009). The future of UK retail banking.
Drummond, G. et al. (2001). Strategic marketing; planning and control. 2nd ed. oxford: Butterworth-Heinemann.
Hooley, G. et al (2008). Marketing strategy and competitive positioning. 4th ed. Essex: Prentice Hall.
Keyfacts (october 2009). Branch and financial insights.
Palmer, R. et al. (2007). Managing marketing: marketing success through management practice. oxford: Butterworth-Heinemann.
Sangani, K. (2005). Fingering the identity thieves. Financial World, August pp45-47.
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Therearetwoschoolsofthoughtaboutthetopicofshareholdervalue(SV).One
schoolarguesthatitleadstoshort-termism.Theotherschool,towhichIbelong,arguesthat short-termism has been endemic inWesterneconomiesfordecadesandthatthishaslittletodowithSV.Forexample,duringa20yearperiod,uptotheyear2000,everyhigh performing company in the FTSE toptenintermsofROIsubsequentlyeitherwentbankruptorwasacquired.Theperformance
oftopcompaniesinthebankingandfinancialservicessectorsinthefirstdecadeofthe21stcenturyindicatesthat,afterover70yearsofmarketing,organisationsstillhaven’tlearnedthelessonthatshort-termismwilleventuallydoomthemtofailure.
The reason isn’thard to fathom.AsCollis said inaHarvard Business Reviewarticle in2008,mostdirectorsdon’tevenknowwhatthecomponentsofastrategyare,whilstChristensensaid,alsoinHBR,of30,000newproductfailuresin2006,mostwerecausedbypoormarketing.
ButtosingleoutSVasamajorcauseofthisisingenuousintheextreme,foritismanagerswhoareshort-termintheirbehaviour,notthefinancialinvestmentcommunity.ItalsorevealsacommonmisunderstandingaboutwhatSVreallyisandhowstockmarketsaroundtheworldwork.
THE CENTRAL ROLE OF RISK ASSESSMENT IN VALUE CREATIONLet’sfirstlookattheconceptofrisk.Formostcompanies,thecurrentsharepricealreadyreflectssomeexpectedfuturegrowthinprofits.Thus,thesecurrentinvestorsand,evenmoreparticularly,potentialfuture shareholders, are trying to assess whether the proposedbusinessstrategiesofthecompanywillproducesufficientgrowthinsalesrevenuesandprofits,bothtosupportthecurrentshareprice
andexistingdividendpaymentsandtodrivethecapitalgrowththattheywant to see in the future.At the same time they alsoneeda method of assessing the risks associated with these proposedstrategiesas,obviously,thoseriskshaveadirectlinktotheirrequiredrateofreturn.Thisiswheremarketingshouldplayarole.AsFigure1shows,theperceivedriskprofileoftheinvestmentdrivesthelevelofreturnrequiredbyinvestorsineachparticularinvestment.
Logically, therefore, a normal, rational, risk-averse investorrequiresanincreaseinexpectedfuturereturnfromanymoreriskyinvestment in order to compensate for any potential volatility.Noamountofdiscussionswillalter this inarguable factof life. ItwaseverthusandcertainlylongbeforeRappaportproposedEVA(theantecedentofSV).
While investors know exactly what their return will be inadvance ofmaking their investment inmost government-backeddebt investments (i.e. the interest rate payable is stated on thedebt offering), this is clearly not the case with most equity riskperceptions and hence required rates of return. Further, if thehistorical track record of a company’s shares shows significantvolatility in share prices and even dividend payments, investorswill requiremuchhigher returns from thecompany,as theywillextrapolate from thispastperformanceas theirbestguide to thefutureperformanceofthecompany’sshares.Thus,lifeismuchmorechallengingforahighlyvolatilecompany,causedbyshareholders’naturaldislikeforrisk.
THE NEW OPPORTUNITy OF MARKETING FROM SVIn thebestcompanies,marketerscarryoutproperduediligenceon declared future marketing strategies, taking into account theassociatedrisks,thetimevalueofmoneyandthecostofcapital.New strategieshave significantlydifferent impactson riskwhichmaychangetheirpotentialforcreatingshareholdervalue.
Optimalmarketing strategies seek to increase returnswhilstreducing associated risk levels, and it is thesewhich create SV.Remember, investorsare interested insustainableSV,as it is thiswhichimpactsthecapitalvalueofshares,notresultsinasingleyearmanipulatedbyshorttermismonthepartofmanagers.
Whether we like it or not, SV will persist as the mostlogical method of measuring corporate performance, forwithout creating it, all stakeholders will suffer.This provides anunprecedentedopportunityformarketerstoshowtheirtrueworth,especially as today intangible assets account for about 70% ofallcorporatevalueintheUK.
SHAREHOLDER VALUE VERSUS SHORT-TERMISM
The role of marketing
PRoFESSoR MALCoLM
MCDoNALD
Figure 1: Risk-adjusted required rate of return
Zero risk rate of return Specific risk of
investment Y
Level of return required by investors in investment Y
PERCEIVED RISK PROFILE OF INVESTMENT
RE
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Risk-adjusted required rate of return lin
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Emeritus Professor Malcolm H.B. McDonald MA(oxon), MSc, PhD, D.Litt., FCIM, FRSA was, until recently, Professor of Marketing and
Deputy Director of Cranfield School of Management. His extensive industrial experience includes a number of years as Marketing Director
of Canada Dry. He spends much of his time working globally with the operating boards of the world’s biggest multinational companies.
52
hibernationisnotastrategy.Ihatetobethebearerofbadnews,butthose
patientorganisationsareprobablyreducingtheirchancesof survivalwitheveryweektheywait.Ifyoubelieve(asIdo)thatthisisnotarecessionbutachangeintheEconomiccycle identified by Nikolai Kondratiev(1892-1938), then the ‘good times’ areunlikelytomakeareturnmuchbefore2030.Now,whatdoesthatmeanformarketing?
The last 50 years have been typifiedbywhatKondratiev termed the economicsummer and autumn seasons;we are now in thewinter period.During summer and autumn periods (roughly 1960-2008 in ourcase)everythinggrowsand it is reallyquitedifficultnot tomakemoney.Insuchbountifultimes,marketingonlyhastoworryaboutcommunications to have an impact and can happily abdicateresponsibility for product, price and distribution. Now thatthings have changed, we are obviously left wondering whethermarketing departments will be able to rise to the challenge.In fact, research from the London Business School showedthat a majority of CEOs recognised that the changing businessenvironment required significant changes in their organisations.They recognised that these changes should be driven by theirmarketing people; unfortunately they also considered theirmarketingpeopleunequaltothechallenge.
Weallknowwhatmarketingwasmeanttocover:itwaslaidoutinLevitt’siconicarticleof1960,“MarketingMyopia”andlaterstylisedintothemarketingmixofPs(first4,then7,andnow11!).Originally,marketingwas intended tobean integrative function,helpingeveryoneelseintheorganisationtobetteraligntheireffortswiththeneedsoftheexternalmarket–asubjectwheremarketerswereexpectedtobeexpert.
AllthosePstomixandmanage,andwhathappened?ThesinglePofpromotionseemedtodominateallthethinkinginmarketingdepartments,businessschoolsandinstitutesalike.Product,pricingand distribution decisions are now controlled by other functionsin theorganisation, functionswith an internal viewof theworldrather than a market view. We all know the consequences:reasonablelong-termreturns(orspectacularshort-termreturns)foraslongasthemarketseemedeasilypredictableandeasilypleased.Thingshavechanged.
MARKETING STRATEGy IN TIMES OF UNCERTAINTy
There were times in the last 50 years when we thought we knew the name of the game, how to play it and which way was up. Now we have all been dumped
into what we are comforted to know is a ‘recession,’ so we wait patiently for the uncertainty to pass and for the old levers to start working again.
PAUL FIFIELD
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yTIME FOR MARKETING TO STEP UP TO THE MARK?The easy times are gone and it is now time for REALmarketingto take the lead, if it can.Einstein said “Theworld thatwehavemadeasaresultofthelevelofthinkingthatwehavedonesofarcreatesproblemsthatwecannotsolveatthesamelevelastheywerecreated.”Mostofourproblemshavebeencausedbymanagement’sobsessionwithinternalissues,buttoday’schallengeswillonlybemetbysolutionsfoundoutsidetheorganisation.If(anditisnoteasy)youareabletotakethefirststepandabandonyesterday,thenyouwillstarttoseethenatureofthebusinessenvironmentthatweface.Thekeycharacteristicsoftoday’senvironmentare:• Change:Thisisaconstant,notatemporaryorunusualsituation.
Likeitornot,customersandtheirlivescontinuetoevolve,asdotheirneedsandwants.Recentresearchhasshownthatthecurrentchangeincustomerdemandstartedintheearly2000s,andwasnotadirectresultofthefinancialcollapse.
• Unpredictability: This is another constant. Control,predictability and planning are mere illusions that inwardlooking business functions believe ‘ought’ to be possible.According to Henry Mintzberg, “Setting oneself on apredeterminedcourseinunknownwatersistheperfectwaytosailstraightintoaniceberg.”
• Tools:Sincethevastmajorityofthemanagementandmarketingtoolswehavelearnedtousewerecreatedinthetimesofplentyandgrowth,theyaresimplyirrelevanttotoday’scircumstances–nomatterhowwellyouimplementthem.
• Organisation:ThepresentdominantorganisationformremainsonlyslightlymodifiedsincetheRomanLegionsandisprobablypast its sell-by date – if it cannot deliver the value that themarketdemands(andmostcannot)thenitwillceasetoexist.Muchof theossificationoforganisationsand theirstructuresisduetomanagementwhichseemsintentonclingingtotheoutdated ‘hierarchical commandandcontrol’ reminiscentofitsmilitaryorigins.
• Metrics:In(normal)timesofchangeandunpredictability,thequestion‘Howarewedoing?’tendstobeaskedmorefrequently.Unsurprisingly,theanswer“Thiswasourprofit18monthsago”failstodelight.Thetrailingindicatorsofthepast50yearsneedtogivewaytonewformsofleadingindicatorsthatcaninformmanagersaboutwhatinvestmentdecisionstotakenow.
SHOW ME THE MONEy! Lastly,ifmarketingreallyisresponsibleforcreatingthecashflowoftheorganisation,thenit is timetostartbehavinglikeaseriousforce in the business. It is time to look outside our self-madecommunicationsbunker,seetheimplicationsofexternalchangeontherestoftheorganisationandtakesomeresponsibilityforhelpingotherstoadapttothenewbusinessreality.
Darwin said that “It is not the strongest of the species thatprospers,nor themost intelligent,but theonemostadaptable to
change.” Recent research is suggesting strongly that, by the endofthisdecade,someofourbiggest,strongestandmostintelligentorganisationsareunlikelytoexist,atleastintheirpresentforms.
Why is that? Because adaptability is not taught in businessschools;becauseadaptabilityisnota‘model’offeredbyconsultants;becauseadaptabilityisnotasingle-siloidea,itmustbedrivenacrossthe entire business; because the ‘Business Pioneers’whodare topromoteadaptabilityareseenasdangeroushereticsbythestatusquowhohavetoomuchtolosefromsuchcounter-culturalideas.
ArecentsurveyofCEOsbyIBMshowedthatthevastmajorityofthoseinterviewed:1. Sawtherapidlychangingenvironmentastheirbiggestissue.2. Knew that they had to change the organisation tomeet the
environmentalrequirements.3. Didnotknowhowtoachievethis–therewerenosuccessful
examplestofollow.Luckily not everybody has been cutting costs, blaming the salesforce, restructuringblindly, rushingoutasmanynewproductsaspossibleandreducingpricestotryandcompetewiththeChinese.Soonthebusinesspioneerswillbegettingthesupportthattheyneedtohelpfocustherestoftheirorganisationsonwhereallthemoneycomesfrom:thecustomer!
FIDDLING WHILE ROME BURNS?Forthoseofyouthatcan’trelatetothemessageofthisarticle,orareevenwonderingwhatanyofthishastodowithmarketing,keepfocusing on digital marketing & social networking – the answermightbeintheresomewhere…
Paul Fifield is the Director of the Paul Fifield organisation and a Partner at The GreenField organisation LLP. He is a Visiting Professor at the
University of Southampton and the Collège des Ingénieurs, Paris, and a Visiting Lecturer at the University of Bath.
Contact Paul at [email protected].
you Think sociAl neTworkinG is The Answer?
codexvisio.com
Lives in: ROMEFrom: ANTIUMBorn: 15 December 37
Likes: Fiddling, watching things burnDislikes: Overbearing mothers
Nero Claudius Caesar Augustus Germanicus
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IEWMarketMeSuite
marketmesuite.com
A social media dashboard for small businesses which links Facebook and Twitter activity with email reporting and outcomes. It focuses on the output of information rather than the reporting and integration with other activity.
Price: $5.99/mth to $99 one off purchase Pros: Twitter and Facebook publishing, ease of use, joined up interface Cons: Lack of strategic focus, one-size fits all Rating: 6/10
Google Analyticsgoogle.com/analytics
The leading analytics service, providing broad ranging insights into website performance and customer journey tracking. Customised reporting and ease of integration makes Google highly accessible for all sizes and types of organisation.
Price: Free Pros: Ease of integration into existing websites, automated reporting Cons: Focus only on website objective data Rating: 8/10
iDashboardsidashboards.com
Visually inspiring dashboards for a range of industries and functions including marketing and sales. iPhone and iPad integration for real time reports on internal data with full export facility
Price: Free 30 day trial, bespoke pricing Pros: Interactive interface, link to traditional sales and marketing methods, strategic integration Cons: Potential cost of website and social media integration Rating: 6/10
LoopFuseloopfuse.com
Marketing automation through a step-by-step process, from tracking website visits to conversion. Integration with salesforce.com and LinkedIn with varied levels of reporting
Price: Scalable from Free to $3,000/mth Pros: Link with existing CRM, integrated email publishing, website analytics Cons: Set-up, visual reports Rating: 7/10
MetricPulsemetricpulse.com
Data-focused rather than intelligent but allows for some monitoring of competitors in a real time interface.
Price: 14 day Free trial then $22/mth to $198/mth Pros: Simple web-based interface, Google Analytics, Facebook, Twitter integration Cons: Lack of strategic focus, cost Rating: 6/10
Haveyoueverwonderedwheretolookforinspirationtoimproveyourwebsite?Youmightstartbylookingatthe2011FTBowenCraggsIndexofcorporatewebsiteswhichwaspublishedinApril.
TheIndexranks75largecorporatewebsitesandtheirassociatedsocialmediachannelsbyarangeofcriteriaandisthemost
detailedmassstudyoflargewebsitesproduced.Ithasthreeaims:toshoworganisationswheretolookforideas,toidentifytrendsinonlinecommunications,andtoallowthecompaniesintheIndextoseehowtheyareperformingagainsttheirpeers.
Itisnotintendedtobearankingofthebestwebsitesintheworld;instead,itselectsfromtheFTGlobal500the25biggestcompaniesfromtheUS,EuropeandtheRest
oftheWorld(includingRussia).These75websitesarethensubjectedtoadetailedassessmentusingamixofspecificandsubjectivemetrics.Eachreviewtakes16hoursandiscarefullydocumented.BowenCraggsareclearthattheirassessmentisnotintendedtobeatickbox,mechanicalexercise–itinvolvesjudgementateverystage.
BowenCraggsprovideaninteractivetableofthefull
resultsoftheIndex,whichyoucansortbyyourpreferredcriteria,suchasthescoreformessageorservingcustomers.Thereisfurtherinformationontheirmethodologywhichincludesacommentaryofthestrengthsandweaknessesofthetopwebsitesandasummaryofkeythemesandtrends.
YoucanfindthefullresultsaswellasfreeaccesstoBowenCraggs’BestPracticeLibraryathttp://www.bowencraggs.com
DIGITAL DASHBOARDSAdigitaldashboardcentralisesarangeofinformation,helpingturndataintointelligencetoinformyourdecision-making.Gooddecisionshelptogrowabusiness,reduceriskinanorganisationandultimatelyprovideabettercustomerjourneyandmarketingservice.
Aneffectivedashboardturnsusefuldataintodecision-makingtools.Dashboardsshouldblendandintegratethehardnumbersandthesofter,subjectivemeasuresthatgiveabroadercontexttotheircauses.
Thebestdashboardsautomatethedatacollectionandreportingprocess,providingreal-timefeedsofinformation.Thisspeedsuptacticaldecisionmakingandfuelslongertermstrategicthinking.Astrendsareimportant,adashboardthatreportsoversetperiodsisfarmorelikelytodemonstratefluctuationsfromwhichimprovementscanbemade.
Soon,dashboardswillmeasureeverystepalongtheentirecustomerjourney,trulyprovingreturnoninvestment.
WEBSITE INSPIRATION
BESTSELLING MARKETING BOOKS ON AMAzON.CO.UK Herearethetop5bestsellingsalesandmarketingbooksfromAmazon.co.uk:
1. Hegarty on Advertising: Turning Intelligence into MagicByJohnHegarty
2. It’s Not How Good You Are, It’s How Good You Want To Be ByPaulArden
3. Cold Calling for Chickens ByBobEtherington
4. The New Rules of Marketing and PR: How to Use Social Media, Blogs, News Releases, Online Video, and Viral Marketing to Reach Buyers Directly ByDavidMeermanScott
5. Advanced Selling Strategies: The Proven System of Sales Ideas, Methods and Techniques Used by Top Salespeople Everywhere ByBrianTracy
• ListcorrectasofJune2011
ENDNOTESIm
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Tel: +44(0) 1954 234944 - Fax: +44(0) 1954 234950
