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Marketing Evolution + Revolution – the Future Marketing Environment PowerPoint Presentation
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Marketing Evolution + Revolution – the Future Marketing Environment

Marketing Evolution + Revolution – the Future Marketing Environment

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Marketing Evolution + Revolution – the Future Marketing Environment

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  1. 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

  2. How will marketing developments affect the New Society ? Neo-Marketing and Consumer Behaviour in a Changing Marketplace: Seeing the Unseen . . . Professor Luiz Moutinho

  3. 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

  4. The Need for Change SATURATION The Changing Market GLOBALISATION The Changing Competition FRAGMENTATION The Changing Consumer DOWNSIZING The Changing Organisation PRESSURES FOR MARKETING CHANGE Professor Luiz Moutinho

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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

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

  11. 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

  12. 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

  13. 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

  14. 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

  15. 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 Professor Luiz Moutinho

  16. Cocooning 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

  17. 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 The New Consumer(1) Professor Luiz Moutinho

  18. 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

  19. 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

  20. 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., Professor Luiz Moutinho

  21. Consumer Behaviour Trends Quality rather than quantity Consumers do not want more of the same, but different and better From matter to mind Professor Luiz Moutinho

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

  23. 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

  24. Markets consist of human beings not demographic sectors Contingency Marketing Professor Luiz Moutinho

  25. 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

  26. 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

  27. 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

  28. 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

  29. 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

  30. 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

  31. 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”)

  32. Marketers can get too wrapped up in the science of marketing and its techniques and forget about the customer . . . Professor Luiz Moutinho

  33. Hard-Edged Marketing 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

  34. . . . 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

  35. New Leading Indicators for CS • Processability • Multidimensionality • Measurability • Detailability . . . and • Non-Artificiality ! Process-Based Management – derived Customer SATISFACTION TRUE LONG-TERM SUSTAINABLE PREFERENCE (L-TSP)

  36. 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 !

  37. 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

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

  39. 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

  40. 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

  41. 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

  42. 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

  43. 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

  44. 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