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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.

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Marketing evolution revolution the future marketing environment

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

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

The Need for Change be to change fast enough to keep pace with new technology, new markets and new values.

SATURATION The Changing Market

GLOBALISATION The Changing Competition

FRAGMENTATION

The Changing Consumer

DOWNSIZING

The Changing Organisation

PRESSURES FOR MARKETING CHANGE

Professor Luiz Moutinho


The Environment is changing . . . be to change fast enough to keep pace with new technology, new markets and new values.

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 Innovation - Trends than most managers can make decisions

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 trends1

Marketing Innovation - Trends than most managers can make decisions

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 trends2

Marketing Innovation - Trends than most managers can make decisions

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

Setting the Scene re-engineering business processes . . . . . but they have ignored customers’ processes !

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

New Marketing, New Thinking supply to demand, and connecting buyers and sellers as efficiently and effectively as possible. Both these functions are critically dependent on consumer understanding

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 old-fashioned marketers still assume they know everything there is to know about knowing their customers?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

Professor Luiz Moutinho


New socioquake new social values

Cocooning old-fashioned marketers still assume they know everything there is to know about knowing their customers?

Fantasy adventure

Small indulgencies

Egonomics

The Vigilante Consumer

99 Lives

Icon toppling

S O S

Possible deconsumption

Home is hot

Down-ageing

Anchoring

Mancipation

Clanning

Evelution

NEW SOCIOQUAKENEW SOCIAL VALUES

Professor Luiz Moutinho


The new consumer 1

  • Hard on Hard, Soft on Soft old-fashioned marketers still assume they know everything there is to know about knowing their customers?

  • 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

The New Consumer(1)

Professor Luiz Moutinho


Affluenza

AFFLUENZA old-fashioned marketers still assume they know everything there is to know about knowing their customers?

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 New Consumer old-fashioned marketers still assume they know everything there is to know about knowing their customers?(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

Prosumption old-fashioned marketers still assume they know everything there is to know about knowing their customers?(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

Consumer Behaviour Trends old-fashioned marketers still assume they know everything there is to know about knowing their customers?

Quality rather 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

Increasingly, products and services are consumed by the mind as experiences !

Professor Luiz Moutinho


Consumer behaviour a new look

Consumer Behaviour – A new Look . . . as experiences !

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

Markets consist of human beings not demographic sectors as experiences !

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 focused on consumers’ needs . . .

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

CS MK focused on consumers’ needs . . .

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 focused on consumers’ needs . . .“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

Hard-Edged Marketing and its techniques and forget about the customer . . .

What’s going 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 and its techniques and forget about the customer . . .

. . . 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
New Leading Indicators for CS and its techniques and forget about the customer . . .

  • Processability

  • Multidimensionality

  • Measurability

  • Detailability

    . . . and

  • Non-Artificiality !

Process-Based Management – derived Customer SATISFACTION

TRUE

LONG-TERM

SUSTAINABLE PREFERENCE

(L-TSP)


  • The death of corporate loyalty? and its techniques and forget about the customer . . .

  • Companies should no longer expect loyalty: they should accept the need to attract and addict people on a continuous basis !


Trends in mk dss

Trends in MK DSS and its techniques and forget about the customer . . .

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

New Consumer Marketing Research role of marketing research evolved to manipulate data to summarise the underlying patterns.

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 role of marketing research evolved to manipulate data to summarise the underlying patterns.(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

Trends in Segmentation, Targeting and Positioning role of marketing research evolved to manipulate data to summarise the underlying patterns.(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

“COMPANIES NEED FORESIGHT, NOT HINDSIGHT” ! to marketing. We are now in the “

Professor Luiz Moutinho


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