10. new strategic thinking in marketing from the new normal

New Strategic Thinking in MarketingNew Strategic Thinking in MarketingFrom the “new normal”, structural breaks, toxic From the “new normal”, structural breaks, toxic

effects and economic webs to choosing effects and economic webs to choosing experiences and transformational enginesexperiences and transformational engines

Professor Luiz MoutinhoProfessor Luiz MoutinhoFoundation Chair of MarketingFoundation Chair of MarketingUniversity of Glasgow, ScotlandUniversity of Glasgow, Scotland

Traits of the New Paradigm

New Paradigm in ManagementNew Paradigm in Management

Old Paradigm New Paradigm

Promote consumption at all costs

People to fit jobs

Imposed goals, top-down decision making

Fragmentation in work and roles

Identification with job

Clock model of company

Aggression, competition

Work and play separate

Struggle for stability

Quantitative

Strictly economic motives

Polarized

Emphasis on short-term solutions

Centralised operations

Allopathic treatment

Appropriate consumption

Jobs to fit people

Autonomy encouraged, worker participation

Cross fertilisation by specialists seeing wide relevance

Identity transcends job description

Recognition of uncertainty

Cooperation

Blurring of work and play

Sense of change

Qualitative as well as quantitative

Spiritual values transcend material gain

Transcends polarities

Ecologically sensitive

Rational and intuitive

Recognition that long-range efficiency must take into account harmonious work environment

Decentralised operations when possible

Attempt to understand the whole, locate deep underlying causes of disharmony

PARADIGM SHIFTSPARADIGM SHIFTS

Attention economy

Experience economy

Conversation economy

Application economy

Emotion economy

A shift from “telling and selling”

Marketing Evolves from Selling to Citizenship

Share- and- compare Share- and- compare economyeconomy

Secret Economy Secret Economy (underground world of P2P (underground world of P2P search – Metrics Vacuum)search – Metrics Vacuum)

AGE OF RECOMMENDATIONAGE OF RECOMMENDATION

Silver Economy Silver Economy

Participation EconomyParticipation Economy

Speed EconomySpeed Economy

We look for emotional connection and empowerment in all areas of life.

CONTRASTS CO-EXIST

We live in a multidimensional world where contrast and diversity rule.

1. GLOBALISATION / GLOCALISATION

2. ASIA AND NEW ECONOMICS

3. CONVENIENCE TECHNOLOGY

4. CONNECTED

5. SMART TECHNOLOGY

6. TRANSPARENCY

7. GLOBAL SUSTAINERS

8. RETHINKING ENERGY

9. THE CREATIVE CLASS

10. AGEING POPULATION

11. FEMALE EMPOWERMENT

12. HEALTH AND WELLBEING

Here are the key trends that are shaping tomorrow:

Convenience TechnologyConvenience Technology

Convenience technology provides today’s people with a tool that empower them and give them a degree of ease in a hectic world. We can now control and juggle our life in a way unheard of just 15 years ago.

TransparencyTransparency

Transparency implies openness, communication, and accountability. Businesses and governments must have an attractive ethical dimension and practice a ‘genuine caring attitude’. Tomorrow’s citizen wants fair trade and traceability – he/she wants more meaning.

TransparencyTransparencywill continue its ascendancy to being the over-arching guiding principle for corporate behaviour.

Every corporate boardroom should have a goldfish bowl sitting in the middle of the table, to remind the Directors of the increasing scrutiny under which they operate.

A return to long-term thinking. In the wake of corporate scandals and a general disgust with greed, the best CEO’s will increasingly focus on long-term, deeper issues…

Ageing PopulationAgeing Population

The ticking retirement time bomb is a growing concern - will it become an unsustainable burden for future taxpayers? Will we have to raise retirement age and work till we are 70? On the positive side we slowly see attitudes shift to a more positive social, cultural and corporate mindset of age and aging.

Interactive PlatformsInteractive Platforms

Exchange of ideas encouraging co-creation will set tomorrow’s agenda.

In the future people will demand a deeper insight into how various products can benefit and truly can empower their everyday lives.

Nokia: Connecting People and

Apple: the i-pod generation

Navigating the new normalNavigating the new normal

Are we experiencing a conventional economic cycle? Or did the financial crisis of 2008 and subsequent global economic downturn mark the beginning of a “new normal” characterised by fundamental changes in the use of leverage, trajectory of globalisation, nature of consumption patterns, and appetite for risk taking?

An environment in which setting strategy has become more complex: planning cycles are shrinking, future growth trajectories are harder to predict, and business assumptions that once seemed indisputable are now coming into question.

The new normalThe new normal

The business landscape has changed fundamentally; tomorrow’s environment will be different, but no less rich in possibilities for those who are prepared.

It is Increasingly clear that the current downturn is fundamentally different from recessions of recent decades. We are experiencing not merely another turn of the business cycle, but a restructuring of the economic order.

The new normalThe new normal

For some organisations, near-term survival is the only agenda item. Others are peering through the fog of uncertainty, thinking about how to position themselves once the crisis has passed and things return to normal. The question is, “What will normal look like?” While no one can say how long the crisis will last, what we find on the other side will not look like the normal of recent years. The new normal will be shaped by a confluence of powerful forces – some arising directly from the financial crisis and some that were at work long before it began.

Obviously, there will be significantly less financial leverage in the system.

Five interconnected themes that highlight the opportunities and challenges faced by global economic integration:-Growth in emerging markets-Labour productivity and talent management-The global flow of goods, information and capital-Natural-resources management-The increasing role of governments

Kim and Mauborgne’s (2005) blue ocean metaphor elegantly summarises their vision of the kind of expanding, competitor-free markets that innovative companies can navigate. Unlike “red oceans”, which are well explored and crowded with competitors, “blue oceans” represent “untapped market space” and the “opportunity for highly profitable growth”. The only reason more big companies do not set sail for them, is that the dominant focus of strategy work over the past twenty-five years has been on competition-based red ocean strategies, i.e., finding new ways to cut costs and grow revenue by taking away market share from the competition. They urge companies to “focus on the big picture, not the numbers”.

Strategy in an Era of global GiantsStrategy in an Era of global Giants

The world’s largest corporations are greatly increasing their scale and scope, and the resulting mega-institutions are fundamentally changing the landscape of business.

These mega-institutions have disproportionately high profits and market volumes because they understand the link between their profitability and the talents of their professionals and knowledge workers.

Mega-institutions are pioneering a new model of competitive advantage by using their huge size to develop and exploit intangible assets in novel ways.

But, are consumers racking up the benefits?

The “between company” trendThe “between company” trend1) start-ups

2) large groups’ acquisition but not good at radical innovation and

3) the adoptive brand industry, developing, re-launching and squeezing mature brands, has a strong future as well as providing wonderful employment challenge to the most highly skilled marketers.

The “within company” trendThe “within company” trend is the opposite:

Marketers, top managers, HR, operations and finance will be increasingly brought together by the “marketing dashboard”.

To drive the business we need a dashboard that incorporates key marketing metrics.

Beyond the Unbundling CorporationBeyond the Unbundling CorporationIn the past companies were built on the principle “Do more and do it cheaper” but today the match words are “fewer, faster and less” (F2+L) – fewer assets, faster growth and less activity managed under one roof.

So far, these goals have inspired three forms of corporate organisation: simple outsourcing, unbundled companies (focusing on specific economic functions, such as manufacturing , product innovation or customer care) and, most recently, networked corporations (collaborative networks of suppliers, distributors, subcontractors and customers).

Networked companies have created far more value than their industry peers over the past years and have held more robustly in the recent market downturn.

New thinking about strategy comes with a whole lexicon of new buzzwords. Forget about value chain, experience curves, stars and dogs.

Now, any enlightened discussion of strategy is likely to include talk of “co-evolution” and the “business ecosystem” – creating networks of relationships with customers, suppliers and rivals to gain greater competitive advantage.

In an ecosystem, companies sometimes compete and often cooperate to come up with innovations, create new products and serve customers.

It changes your vision of the business in the future. You start thinking about how you can get increased value from all the pieces of the company. You have to bring in new voices to the process.

A company should be viewed not as a member of a single industry but as a part of a business ecosystem that crosses a variety of industries

In a business ecosystem, companies co-evolve capabilities around a new innovation: they work co-operatively and competitively (coopetition) to support new products, satisfy customer needs and eventually incorporate the next round of innovations.

The Future of ManagementThe Future of Management

What fuels long-term business success? Not operational excellence, technology breakthroughs, or new business models, but management innovation – new ways of mobilising talent, allocating resources, and formulating strategies. Through history, management innovation has enables companies to cross new performance thresholds and build enduring advantages.

The Future of ManagementThe Future of Management

The management paradigm of the last century – centred on control and efficiency – no longer suffices in a world where adaptability and creativity drive business success. To thrive in the future, companies must reinvent management.•The toxic effects of traditional management beliefs.•Radical principles will need to become part of every company’s “management DNA”.

Strategy in crisisStrategy in crisis

The past is no longer a guide to the future. To meet the challenges of discontinuity and to perform like markets, a corporation must learn to change as rapidly as they do.

Recession aftershocks, huge new risks, persuasive uncertainty – the challenges defining today’s business environment place a greater premium than ever on good corporate strategy. Yet the strategic-planning approaches that many corporations devised for such times are ineffective.

Strategy in a ‘structural break’Strategy in a ‘structural break’

During hard times, a structural break in the economy is an opportunity in disguise. To survive – and, eventually, to flourish – companies must learn to exploit it.

There is nothing like a crisis to clarify the mind. In suddenly volatile and different times, you must have a strategy. I do not mean most of the things people call strategy – mission statements, audacious goals, three- to five-year budget plans. I mean a real strategy.


For many managers, the word has become a verbal tic. Business lingo has transformed marketing into marketing strategy, data processing into IT strategy, acquisitions into growth strategy. Cut prices and you have a low-price strategy. Equating strategy with success, audacity, or ambition creates still more confusion. A lot of people label anything that bears the CEO’s signature as strategic – a definition based on the decider’s pay grade, not the decision.


By strategy, I mean a cohesive response to a challenge. A real strategy is neither a document nor a forecast bur rather an overall approach based on a diagnosis of a challenge. The most important element of a strategy is a coherent viewpoint about the forces at work, not a plan.

Hidden flaws in strategyHidden flaws in strategy

After nearly 40 years, the theory of business strategy is well developed and widely disseminated. Most senior executives have been trained in its principles, and large corporations have their own skilled strategy departments.

Yet the business world remains littered with examples of bad strategies. Why? What makes chief executives back them when so much know-how is available? Flawed analysis, excessive ambition, greed, and other corporate vices are possible causes. One contributing factor that affects every strategist: the human brain.

Hidden flaws in strategyHidden flaws in strategy

As scientists uncover more of its inner workings through brain-mapping techniques, our understanding of its astonishing abilities increases. But the brain is not the rational calculating machine we sometimes imagine. Over the millennia of its evolution, it has developed shortcuts, simplifications, biases, and basic bad habits.

The Strategy ParadoxThe Strategy Paradox

Why committing to success leads to failure.

Unfortunately, the prerequisites of success are almost always the ingredients of failure, too. The sad truth is that most companies have left their futures almost entirely to chance, and do not even realise it. The reason? Managers feel they must make choices with far-reaching consequences today, but must base those choices on assumptions about a future they cannot predict. It is this collision between commitment and uncertainty that creates THE STRATEGY PARADOX.

The Strategy ParadoxThe Strategy Paradox

Realising this, even if only intuitively, most managers shy away from the bold commitments that success seems to demands, choosing instead timid, unremarkable strategies, sacrificing any chance at greatness for a better chance at mere survival.

Structured Chaos. The chaos imposed by today’s misguided mandate for “addition by subtraction” profitability.

Focusing on profits can destroy even well-run corporations. Companies should expand by being “disruptors” who are able to outpace their entrenched competition.

Like vinyl records and Volkswagen Beetles, sustainable competitive advantages are back in style – or will be as companies turn their attention to making their most talented, highly paid workers more productive. For the past 30 years, companies have boosted their labour productivity by re-engineering, automating, or outsourcing production and clerical jobs. But any advantage in costs or distinctiveness that companies gained in this way was usually short lived, for their rivals adopted similar technologies and process improvements and thus quickly matched the leaders.

The next revolution in interactions

Successful efforts to exploit the growing importance of complex interactions could well generate durable competitive advantages.

Spider versus spiderAre “webs” a new strategy for information age?

What are webs?An economic web is a set of companies that use a common architecture to deliver independent elements of an overall value proposition that grows stronger as more companies join.

Think of Netscape. If you consider how quickly it has mobilised other companies to support and implement its technology, you begin to see why the excitement may be justified.

Netscape’s strategy exemplifies a new form of industrial structure “webs”, or clusters of companies that collaborate on a particular technology. Webs are a natural response to environments fraught with risk and uncertainty – which is why they are prevalent in high-technology arenas. They create powerful new ways to think about strategy, risk, technological uncertainty, and innovation. Webs help us see why the “virtual company” may be more than just an abstract concept. They influence management focus, organisational structure, performance measurement, and information systems. Webs may even represent the opening salvo in the transition from industrial-age to information-age strategies.

Innovation TournamentsInnovation Tournaments

An innovation tournament, just like its counterpart in sports, starts with a large number of candidates, with opportunities as the players. These opportunities are pitted against each other until only the exceptional survive.

The Sense-and-Respond EnterpriseThe Sense-and-Respond Enterprise

What does it mean to be a “sense-and-respond” organisation?

Businesses and organisations should be designed and manages as systems linked by cross-enterprise processes – as opposed to hierarchical structures or authority.

The new sense-and-respond business mode is helping companies systematically cope with the unexpected.


Five new competencies that an adaptive enterprise is required to have in order for it to be considered truly a sense-and-respond business model. These five competencies include: 1) knowing earlier, 2) managing-by-wire, 3) designing a business as a system, 4) dispatching capabilities from the customer request back (e.g., coordination), and 5) context-giving leadership.


A sense-and-respond organisation is an “effects-based” structure that is designed as a “roles and accountability” system.

This customer-centric (or customer-back) philosophy provides the foundation for the S&R adaptive business design.

Customer SensingSensing potential for in customer/user behavior and new customer value propositions

Customer SensingSensing potential for in customer/user behavior and new customer value propositions

Business systems infrastructure SensingSensing the potential for value system(re)configuration, including new and challenging organisational structures

Business systems infrastructure SensingSensing the potential for value system(re)configuration, including new and challenging organisational structures

Economic/profitability SensingSensing the economy feasi-bility and profitability of theproposed business models

Economic/profitability SensingSensing the economy feasi-bility and profitability of theproposed business models

BBUSINESS USINESS

MMODELODEL

RREINVENTIONEINVENTION

Technology Sensing

Sensing the strength direction and impact oftechnology

Technology Sensing

Sensing the strength direction and impact oftechnology

Economic payback

Incentives to switch

Profitability

New customer valuesNew effectiveness

Delay rapid obsolescence

Improving customer benefits

Persuasion requirements

(Adapted from Voelpel, Leibold, Tekie and von Keogh, 2005)

New business network roles

Improved business network effectiveness

The Sense-and-Respond ModelThe Sense-and-Respond Model– Use testing key elements of business models – Use testing key elements of business models

for industry Reflection for industry Reflection

Tired of strategic planning?Tired of strategic planning?

Many companies get little value from their annual strategic-planning process. It should be redesigned to support real-time strategy making and to encourage ‘creative accidents’.

The extraordinary reality is that few executives think this time-consuming process pays off, and many CEOs complain that their strategic-planning process yields few new ideas and is often fraught with politics.

Tired of strategic planning?Tired of strategic planning?

Why the mismatch between effort and result? The annual strategy review frequently amounts to little more than a stage on which business unit leaders present warmed-over updates of last year’s presentations, take few risks in broaching new ideas, and strive above all to avoid embarrassment. They do not prepare executives to face the strategic uncertainties ahead or serve as the focal point for creative thinking.

Traditional planning processes focus on “how” to take your organisation from where it is today to where you want it to be in the future. The problem with traditional planning processes is that they fail when imperfect knowledge, unintended consequences, uncertainty, luck or internal resistance block the approach outlined in the strategy or plan.

In this evolving world of transparency, it makes much more sense to develop a “why” based strategy or strategic plan leaving flexibility in how. Why based plans include input from all the stakeholders greatly increasing the inputs (eliminating the need for P.E.S.T.L.E. and S.W.O.T.) and thereby creating more choices. The involvement of more people, means a more bottom-up approach and the greater the support for the resulting plan. Acceptance of why based plans results in empowerment with people finding new ways to reach the goal when obstacles appear.

Because managers have been trained in traditional how based strategic planning, it is rare to find widespread understanding and acceptance in most organisations.

By being too over-focused on analysis and extrapolation rather than creativity and invention, strategic planning tends to create the illusion of certainty in a world where certainty is anything but guaranteed.

Marketing is dead. We need to create movements instead. The role of marketers is to find ways to bring optimism and joy to people, to improve people’s lives. When we think about ROI for the consumer, we are not thinking of return on investment any longer, but return on involvement… all the time you are creating your strategy just think, “how can I put myself at the heart of the consumer?”.

Consumer Generated Marketing (CGM)

New Strategic Thinking in Marketing

•The twilight of Interruption, the Dawn of Engagement Marketing.

•Conventional interruptive marketing no longer has the benefit of authenticity and therefore retains very little credibility.

The frontier between the brand being in control of the conversation (classical marketing) gives way to behind-the-line power, enabling the customer to take charge.

Marketing as a Marketing as a Transformational EngineTransformational Engine

The Decline of MarketingOver the past two decades, marketing as the company’s growth engine has sputtered amid increased market fragmentation, strong global competitors, product commoditisation, increasingly shorter product life cycles, skyrocketing customer expectations, and powerful channel members. As a result, the ability of marketing to deliver significant growth has been severely constrained and marketing productivity has declined. Not surprisingly, in many companies, doubts have begun to surface about the value of contemporary marketing.


Many CEOs unable to count on their marketing departments for results, have had to turn instead to operations and finance, cutting costs and reengineering the supply chain to increase profitability and mergers and acquisitions to grow revenues. Research now demonstrates that, at large companies, only 10 percent of executive meeting time is devoted to marketing.Marketing as a function is in some danger of being marginalised…

It is about marketers doing better things rather than simply doing things better.


A true market orientation does not mean becoming marketing-driven; it means that the entire company obsesses over creating value for the customer and views itself as a bundle of processes that profitably define, create, communicate, and deliver value to its customers.


The Ubiquity of Marketing ActivitiesIf one believes that everyone in the organisation should serve the customer and create customer value, then obviously everyone must do marketing regardless of function or department. In fact, most of the traditional activities under the control of marketing, such as market research, advertising, and promotions, are perhaps the least important elements in creating customer value.


The Networked Organisation

The tightly specified, vertical functional, divisional, and close organisation is slowly becoming relatively loose, horizontal, flexible, dynamic, and networked.


Marketing in the Networked OrganisationConsequently, organisations are emphasising integration over specialisation. But traditionally, marketing has systematically prioritised specialisation over generalisation, rewarding its academics and practitioners, alike for knowing more and more about less and less.

Faith-based marketing is no longer an option

Adding Value: Adding Value: The Future of MarketingThe Future of Marketing

We stand at the beginning of the next evolution of marketing – one that has more in common with the past than it does the present.

People have learned to ignore the 3,000 ad messages that they are bombarded with daily. Event if they do see your carefully crafted advertisement, they are likely to doubt its claims – and defer instead to the wisdom of crowds online.

Talking holograms will not save the ‘old guard’, interruptive advertising model. We must create marketing that adds value to people’s lives.

Adding Value: Adding Value: The Future of MarketingThe Future of Marketing

Some businesses are taking the idea of marketing with meaning a step further, purposely preventing customers from incurring high fees and bills. By actively stopping poor buying decisions – especially at the risk of lost sales – these businesses build enormous trust, earn loyalty for life and generate positive word-of-mouth marketing both online and offline.

Will meaningful marketing take over?Will meaningful marketing take over?

There is a new evolution in marketing that is about improving customers’ lives. It is called meaningful marketing or marketing with meaning. Economic and social forces are colliding to fuel the staying power of meaningful marketing.

Marketing with meaning is about improving customers’ lives through the marketing itself.

Why does is make business sense?

Meaning Marketing no only improves customer’s lives, it also impacts the bottom line. According to research companies that practice meaningful marketing are twice as likely to deliver sustained success and four times less likely to require significant price discounting.

Will meaningful marketing take over?Will meaningful marketing take over?

Will meaningful Will meaningful marketing take over?marketing take over?

How do we market with meaning?We stop interrupting people to tell them how great our products are and we start doing something to prove our greatness. At its core meaningful marketing is about creating value. And when we ‘Do’ versus ‘Declare’, we create more of it.

Brands that are improving peoples’ lives in a meaningful way.

First half – essentially strategic; Second half – more tactical (with interaction effects)

If the two halves of Marketing become separated, then Marketing is reduced to its common role as a tactical corporate entity

The issue marketers need to address is not communication but value. Value goes right to the heart of what the organisation does and how it does it.

(Adapted from A. Mitchell, December 2005)

Marketing has 2 core functions:

internalising signals from the market and presenting the outputs of the resulting

activities to the outside world

Most of the fuss about marketing accountability and effectiveness is a “red herring” because focuses entirely on the second half – communication – in isolation from the first half.

99/100 times, value parity is either imagined or breakable. The fuss about “Marketing” (e.g., communication) effectiveness is mainly a displacement activity for the real problem which is “value effectiveness”

(Adapted from A. Mitchell, December 2005) A business is a value delivery system!

Lean consumption is not about reducing the amount customers buy or the business they bring. Rather, it is about providing the full value that consumers desire from their goods and services, with the greatest efficiency and least pain.

The key word here is “process”. Think about consumption not as an isolated moment of decision about purchasing a specific product, but as a continuing process linking many goods and services to solve consumer problems.

Some companies – along with their customers – have started the culture shift that will make lean consumption possible. And they are finding that everybody wins.

Lean consumptionLean consumption

Marketing in the Age of TurbulenceMarketing in the Age of Turbulence

To get management to move from marketing to “consumering”, will develop better ways to get customer insight, will develop better metrics for measuring the impact of different marketing efforts, will protect and enhance the company’s brands, and will bring in new marketing technologies and skills to the marketing department.

What is preventing the marketing department from taking on a stronger leadership role?Most marketers have been hired into a marketing department because they are right-brain trained – that is, creative. They are less well-trained in their left brain, the part that thinks about numbers, finance, and evidence. But they have to deal with managers who by and large are left-brain trained. The key need then is to put into the marketing department some sharp left-brain people or two-brain people who can work with the other managers. Once department managers begin to deal with some two-brain strategic marketing managers, marketing will play a stronger leadership role.


Most marketing departments are tactical, not strategic. They can do marketing research and marketing communications (ads, brochures), and have other skills for developing and launching a product. But they do not really drive the company’s growth strategy.


Opportunities lie within the economic downturn. You can take advantage of them if you start marketing strategically instead of blindly.

In these troubled times, companies are cutting their marketing budgets – in fact, marketing is one of the first departments to be cut. Do you think it is a wise move to cut the marketing budget?


Yes, if the marketers cannot provide performance metrics for their expenditures. Marketers have had it easy in the past, getting lots of money for 30-second commercials without having to produce any evidence of their sales or profit impact. Advertising was a matter of faith, not reason. The plot was to get a large share of voice so that the brand was locked in the customers’ memories. Hopefully the message promised something distinctive and the customer who wanted that point of difference would automatically choose that brand.


The guess is that only 1 out of 10, maybe only 1 out of 20, advertising campaigns really makes a financial contribution. That means that the average company has only 1 chance in 10 or 20 that its ad campaign will create a memorable and motivating message.If advertisers spent the same amount of money on improving their products as they do on advertising, the would not have to advertise them. Heavy advertising spending is often on products that have little distinction. The company would be smarter to save that money and use it to build a better product.A down period introduces as much opportunity as it does chaos. Some companies see cracks of sunshine in this otherwise gloomy picture.


Create “Choosing” (Not just “Shopping”) ExperiencesThe shopping experience at every store along this route is pretty much the same. The only difference is how much each merchant is willing to cut its prices: by 20%, 40% or even 75%. None of them has created a choosing process – in which customers’ actions are guided by known principles of behavioural economics that help them make a purchase, not just look around. Instead, the retailers simply stuff the shelves, windows, and hallways with option after option after option, driving more shopping and less choosing.

Since we know that increased choice tends to freeze decision making, the result will be consumers who shop more and more and choose less and less.

Is your sales process increasing choosing behaviour or simply fomenting increased shopping? If your answer is the latter, you need to start designing a customer-choosing process.

Marketing Planning ManagementMarketing Planning Management

Marketing planning documents will grow shorter in the future.

Much of the historical detail will be consigned to product fact books (PFB).

Marketers: Bid farewell to strategy

based on old 4 Ps…

Market-Driving StrategiesMarket-Driving Strategies

Today, we see a lot of companies that are being market-driven. In short, they are being led by the market. Now, that is not a good place to be.Businesses can now become market driving. But mind YOU, this is not a once a year activity.

Market-Driving Strategies are ‘everyday mindsets’.

Market-Driving Strategies shape the market. These strategies define how a firm embraces innovative changes in industry logic and business system.

Market-driving strategies – as opposed to market-driven strategies – involve the latest development in the marketing discipline.Unfortunately, most companies are still practicing their traditional ways, still trapped in their old paradigm of customer satisfaction.Market-driving strategies have one critical pillar. Value creation, whereby instead of following the traditional logic of industry, firms can learn from the logic of strategy by being different instead of merely being better, breaking industry rules by redefining both the value proposition and marketing activities.

Two new orientations to MarketplaceTwo new orientations to Marketplace (1)(1)

Marketstrategy

Segmentationstrategy

Marketing research focus

“Listen to”

PriceManagement

Relationship Marketing

Segments of one

Customers sensing

Voice of the customer

Bundling/unbundling

Revolutionary marketing (how to change the rules of the game)Re-draw the segmentation philosophyForward sensing (how can the marketplace evolve)Minding Data

Seeing differentlyCuriosity Driven research

New price points

Customer Driven Market Driving

Two new orientations to MarketplaceTwo new orientations to Marketplace (2)(2)

SalesManagement

ChannelManagement

Brand Management

CustomerService

ProductDevelopment

Sell solutions

Multiplex systems

Dialogue for corporate equity

Strategic weapon

Integrating product/ service platforms

Providing concepts and co-creation

Channel reconfiguration

Exploit “Buzz network”

Overwhelm expectations

Radical innovation

Customer Driven Market Driving

The future of digital will mainly be mobile, be it on computer tablets or smartphones. Therefore, two key technologies will change the digital world: location-based services (especially from a social networking point of view) and augmented reality. The digital experience will be transformed.

“Marketing that doesn’t seem like marketing” works as long as it does not try to disguise its commercial origins. Be transparent about commercial messages. Be open about which data is collected, what it is used for.

We do not need to know about people’s lifestyles, or their personal information, to be able to target them with the kind of offers they want to see.

There is quiet revolution going on, in which the word of a complete stranger can influence purchasing decisions more than any marketing. We still talk about targeting customers, when we should be talking about people. And we should not be targeting them – we should be talking with them.

Is This a Golden Era for Marketing Productivity?

Improving the ways in which a company listens to its customers and actually implements the customers’ ‘voice’ into action is the way to reach a ‘golden era’ in marketing productivity.

The future of marketing productivity may well be determined by the extent to which products can improve the quality of life in a holistic sense, rather than trying to create needs where none exist.

Optimising a different ratio is more relevant when creating a marketing strategy for the business environment today. The 5/95 ratio is the percentage of voices of unsatisfied customers actually reaching management’s ears.

While it is great to think that one day all marketing will be entirely analytical and based on some algorithm somewhere in the computing cloud, we have to remember that we live and work in the real world of human wants, needs, desires, psychology, sociology and physiology. If managers can learn to manipulate these variables, they may very well create the next golden rectangle.

International Marketing TrendsInternational Marketing Trends

Diversity versus Convergence

Global IndividualismGlobal Individualism

(Marketing) (Manufacturing)

Global1 – to – 1Marketing

Global1 – to – 1Marketing

Mass Customization

Mass Customization

Global individualismGlobal individualism

Bottom-up ApproachBottom-up Approach

Top-down approach Bottom-up approach

Mass

Segments of unknown customers with common

selection criteria(demographic, lifestyle…)

Fragments of unknown customer

STABLE

Global Individualism

Portfolios (tribes) of known clients with common

behaviour

Individualised known clients

FLEXIBLE

Globalised marketing operationsGlobalised marketing operations

GlobalconceptGlobal

concept

Global key accounts channels

Global key accounts channels

Global corecommunication

Global corecommunication

Cross borderBasic pricingCross borderBasic pricing

Flexible systemsFlexible systems

Hybrid distribution

channels

Hybrid distribution

channels

Direct interactive

communication

Direct interactive

communication

Hyperflexiblepricing

Hyperflexiblepricing

Individualisedspecific offer

Individualisedspecific offer

Globalcore offer

Globalcore offer

The death of insist.

- I insist you watch this ad.

- I insist you visit our store.

- I insist you try our new product…

The future of Marketing?The future of Marketing?

(Seth Godin)

Never stop thinking about tomorrow.

VISION WITHOUT ACTION IS A DREAMVISION WITHOUT ACTION IS A DREAM

ACTION WITHOUT VISION IS SIMPLY ACTION WITHOUT VISION IS SIMPLY PASSING THE TIMEPASSING THE TIME

ACTION WITH VISION IS MAKING A ACTION WITH VISION IS MAKING A POSITIVE DIFFERENCE!POSITIVE DIFFERENCE!

(Joel Baker)

10. new strategic thinking in marketing from the new normal

Business

new strategic thinking

normal look like

normal of recent years

future people

transparency transparency

competition work

economic motives

economic webs