Marketing Evolution + Revolution - the Future Marketing Environment - PowerPoint

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					Marketing Evolution + Revolution –
the Future Marketing Environment

     The New Consumer: From
  Prosumption and Downshifting to
Neuromarketing and Particle Marketing
                                  Professor Luiz Moutinho
                            Foundation Chair of Marketing
                      School of Business and Management
                         University of Glasgow, Scotland
How will marketing developments
   affect the New Society ?

   Neo-Marketing and Consumer
Behaviour in a Changing Marketplace:
       Seeing the Unseen . . .



                              Professor Luiz Moutinho
The greatest challenge to
management in the next decade
will be to change fast enough to
keep pace with new technology,
new markets and new values.

Either we take hold of the future
or the future will take hold of us.

                              Professor Luiz Moutinho
       The Need for Change
SATURATION The Changing Market


GLOBALISATION     The Changing Competition


FRAGMENTATION                                 PRESSURES FOR
                                              MARKETING
                  The Changing Consumer       CHANGE
DOWNSIZING
                  The Changing Organisation




                                              Professor Luiz Moutinho
The Environment is changing . . .
Technology is transforming what companies do, how
they do it, and how they communicate their offer
The power of information networks
Distributors are becoming new “virtual manufacturers”
Dramatic changes in consumers and media
We are rapidly becoming an information intense
society and entering the digital era and realm of virtual
marketspace
Instant communication – epidemic chip




                                               Professor Luiz Moutinho
The   world and the business environment can change
faster than most managers can make decisions
Requires the ability to operate with rapid decision
cycles
Agility and time-based competition
Companies will become increasingly dependent
upon the global market to achieve best-in-class
services and minimise costs. The backlash against
offshore outsourcing will increase as it becomes a
political focus area
The companies using poor quality outsource firms
get back marks for customer service as their business
declines


                                           Professor Luiz Moutinho
   Marketing Innovation - Trends
Marketing Environment
From virtual manufacturers to the feminisation of markets
Marketing Organisation
From process-based marketing management to synoptic
marketing
Consumer Behaviour
From voluntary simplicity to prosumption
Organisational Buying Behaviour
From agile and fractal factories to the new “manufacturing
plants” of the world (China and India)
Marketing Research
From virtual reality (VR) marketing research to digital
marketing research

                                                Professor Luiz Moutinho
          Marketing Innovation - Trends
Segmentation, Targeting and Positioning
From particle marketing and cybersegmentation to modal
segmentation
Product Policy
From product/service architectures to “smart” packaging
Branding
From brand ubiquity to no branding
New Product Development
From very short, non-sequential and concurrent NPD to
computerised planogramming
Pricing
From target costing to one-to-one pricing
Integrated Marketing Communication
From place-based advertising to brand velocity

                                               Professor Luiz Moutinho
         Marketing Innovation - Trends
Sales Management (IMC)
From value-balanced selling time-based competitive selling
and sales automation tools to sales without selling
Distribution Management
From efficient consumer response (ECR) to diagonal
integration
Strategic Thinking in Marketing
From a new competitive structure: networks of companies
to bidding farewell to strategy based on old 4 P’s
Marketing Planning and Programming
From the focus on marketing productivity to product fact
books (PFB)
International/Global Marketing
From Glocal to Global individualism

                                                 Professor Luiz Moutinho
Companies have spent
the best part of the past
decade re-engineering
business processes . . . . .
but they have ignored
customers’ processes !

                        Professor Luiz Moutinho
        Setting the Scene
Businesses     are increasingly
driven by consumer pressure !
Consumers have never been
totally powerless, but the balance
of power is tilting in their favour and
will continue to do so.


                                 Professor Luiz Moutinho
   Marketing lives and breathes two core functions:
    matching supply to demand, and connecting
    buyers and sellers as efficiently and effectively
    as possible. Both these functions are critically
    dependent on consumer understanding
   Customer centricity
   The creation of the unique customer value
    proposition – customer bonding as the
    foundation of economic value creation is
    paramount !
   CUSTOMER EQUITY

                                            Professor Luiz Moutinho
  New Marketing, New Thinking
Customer    focus has become a cliché among
marketing departments keen to win competitive
edge. But it deserves to be taken more
seriously, as it disguises a paradigm shift from
share of brand to share of customer.
Intelligent and integrated marketing and
management.
An “Intelligent Dialogue” with customers !
BRAIN to BRAIN – shared emotion



                                        Professor Luiz Moutinho
How    many opportunities are being missed because
old-fashioned marketers still assume they know
everything there is to know about knowing their
customers?
The “real-time” organisation strives to be available to
its customers “all the time” and its marketers must
expand their toolkit of sensors . . .
This is not just abstract theory. Success is down to a
new model: to operate on a sense and respond basis.
One of the main sources of ideas for new products and
services is sensing customers’ needs in “real time”.
Similarly, the whole idea of partnership sourcing or
virtual integration is an application of the
sense/response model.

                                               Professor Luiz Moutinho
The idea is that consumers’ desires
should not only influence our our
business decisions, they should direct our
business operations !

A  new type of operation is turning “the
supply chain” into a demand value chain,
by reversing the flow of marketing from
“Company to Customer” to “Customer to
Company”

                                   Professor Luiz Moutinho
                NEW SOCIOQUAKE
               NEW SOCIAL VALUES

   Cocooning                   SOS
   Fantasy adventure           Possible deconsumption
   Small indulgencies          Home is hot
   Egonomics                   Down-ageing
   The Vigilante Consumer      Anchoring
   99 Lives                    Mancipation
   Icon toppling               Clanning
                                Evelution

                                             Professor Luiz Moutinho
                  The New Consumer (1)
Hard   on Hard, Soft on Soft
Parity   markets and smaller zones of tolerance.
Organised, in control and an “intelligent agent”. Consumers
get more power.
Voluntary   simplicity. Downshifting.
Satisfaction?    Ecstasy? Limen “Relationship” ? …. No Fuss !
A spirit of sophistication and realism of the commercial
world.
Contingency   mentality.
Customer    Contempt.
Buzz   networks – Groups of Reference


                                                    Professor Luiz Moutinho
              AFFLUENZA

Increasing      signs that a shift away from
a work-obsessed lifestyle is becoming a
significant trend.
Voluntary simplicity: towards a way of
life that is outwardly simple, inwardly
rich.
      . . . . . Your money or your life !


                                       Professor Luiz Moutinho
       The New Consumer (2)

The  Why generation
Prosumption and prosumers
Consciousness paradigm
Aware of product parity.
Demanding on “value”. Knows
what is behind the brand . . .


                                 Professor Luiz Moutinho
            Prosumption
              (Co-creation)

Those consumers who “buy” the marketing
may well go a step forward, and become
“PROSUMERS” - people who actively and
deliberately take part in the process of
design, shaping or even producing a
product/service, knowing it is “for them”.
(e.g., customatix.com)


                                   Professor Luiz Moutinho
  Consumer Behaviour Trends


Qualityrather than quantity
Consumers do not want more of
the same, but different and better
From matter to mind




                             Professor Luiz Moutinho
Increasingly, products and
services are consumed by
the mind as experiences !



                        Professor Luiz Moutinho
Consumer Behaviour – A new Look . . .


Higher  “Psychological Deficits”
Disconnecting and exit customers
Here and now !
Consumers are increasingly “time
and effort starved”
Virtual and E-shopping behaviour




                               Professor Luiz Moutinho
Markets consist of human
beings not demographic sectors

Contingency   Marketing



                           Professor Luiz Moutinho
The challenge for marketers is to
understand consumers in a much
more complex environment rather
than a simple two or three-
dimensional customer model:
customers who will use different
devices for different transactions
at different times of the day ...


                             Professor Luiz Moutinho
On the surface, “consumer understanding”
seems like a Motherhood and Apple Pie
“good” that no one could sensibly object to.
In fact, our whole approach to consumer
understanding – how we go about achieving
it, for what purposes – masks a seller-
centric, command and control ideology of
marketing. Successful companies are
breaking free of this ideology, and
reinventing marketing in the process.


                                    Professor Luiz Moutinho
We  are only at the very beginning of a
new journey – from “brand building” and
“customer relationship management” to
“consumer agency” !

The  new type of understanding is driven
less by knowing about consumers and
more by understanding with them !



                                    Professor Luiz Moutinho
Many actions of contemporary consumer
marketing are not focused on
consumers’ needs . . .

They are focused on the needs of the
seller, how to change buyers’ attitudes
and behaviours to suit the seller’s brand !




                                     Professor Luiz Moutinho
Missing the notion of VALUE
VALUE GAPS
Need to get the balance right !
Enlightened marketers should collaborate with
consumers to build a dialogue and exchange process
that creates value for both parties . . .

 FAIRER EXCHANGES       -   FAIRER MARKETING
            CS        MK
   BOI (Best of Individual) values
     Integrity (e.g. do we sell other
    people’s products if they are
    better?)
     Empathy

     Transformation (doing it better)

     Passion
Companies   set up to deliver “value from our
operations” are not designed to deliver consumers’
“value in my life”.

Entails searching for and sourcing best value for
genuinely customised and personalised service for
solutions designed to improve personal productivity and
emotional authenticity

Helping  individuals manage aspects of their lives
better (“solution assembly”) and helping individuals
reaching important personal goals (“Passion
Partnership”)
Marketers  can get too
wrapped up in the science of
marketing and its techniques
and forget about the
customer . . .


                        Professor Luiz Moutinho
      Hard-Edged Marketing

What’sgoing on inside the
customer head?
A new mind set
NeuroMarketing
  –New connections?
  –How to create and maintain an
  emotional relationship with customers?


                                 Professor Luiz Moutinho
. . . From solicited information to
volunteered

. . . The challenge for an organisation
is to move to a situation where the
customer starts buying from you rather
than being sold to . . . !



                                      Professor Luiz Moutinho
    New Leading Indicators for CS

                                  Processability

                                  Multidimensionality
Process-Based
Management – derived              Measurability
Customer
                                  Detailability
SATISFACTION
                                  . . . and
                                  Non-Artificiality   !


         TRUE
         LONG-TERM
         SUSTAINABLE PREFERENCE
                       (L-TSP)
   The death of corporate loyalty?

   Companies should no longer
    expect loyalty: they should
    accept the need to attract and
    addict people on a continuous
    basis !
        Trends in MK DSS
Environmental Scanning and Forecasting
Increased Market Intelligence
Global MISs (I.e, JIGSAW Project)
Data Fusion, Data Mining, Neuro-
    biographic Clustering and Beyond …
Use of Live Data
External research Associates (ERAs)
Deontology Issues


                                 Professor Luiz Moutinho
The rise of data-led marketing,
and the analytical and
experimental mind
 Data warehousing / data marts
 Software




                          Professor Luiz Moutinho
Companies are pursuing a new
way of using marketing
information to improve the
return-on-investment in
information and to gain a
competitive edge in marketing
effectiveness.

                       Professor Luiz Moutinho
Rather than review of a
multitude of individual facts,
the role of marketing research
evolved to manipulate data to
summarise the underlying
patterns.


                         Professor Luiz Moutinho
New Consumer Marketing Research
 The aim is a consumer who thinks, “I
will invest my information (and time, and
attention as well as my money) with you
because you are good at using it for me,
on my behalf.” It makes marketing
research a service to the consumer. It
requires the company (and marketing) to
embrace a new role as consumer agent.

                                  Professor Luiz Moutinho
    Trends in Segmentation, Targeting and
                Positioning (1)

From Mass, Anonymous, Aggregated and Sample
Data to Names, Individual and Specific !

In addition to segmenting the customers in the
marketplace, and designing campaigns for each
segment, marketers will be asked to go further
and, for each segment, provide a way to
personalise the campaign for each person in the
segment … the beginning of PARTICLE MARKETING.


                                       Professor Luiz Moutinho
  Trends in Segmentation, Targeting and
              Positioning (2)
Syncographics
Motigraphics
Direct Marketing Technology. Persona Technologies
Cybersegmentation. CLIP (A Classification of
      Internet People) Segmography.
DBS (Direct Broadcasting Satellite Systems)
RFID (Radio Frequency Identification)
Particle marketing (Physics) and
      Neurolinguistics (Genetics)
“Solutions” positioning vs Fuzzy Value
      Propositions and/or confusion marketing

                                          Professor Luiz Moutinho
Forget   traditional positioning and
brand-centric approaches to marketing.
We are now in the “Age of the Narrative”
where the biggest challenge facing
companies is how to tell, communicate
their story in the most compelling,
consistent and credible way possible –
both internally and externally!


                                 Professor Luiz Moutinho
“COMPANIES NEED
FORESIGHT, NOT
  HINDSIGHT” !


                 Professor Luiz Moutinho

				
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