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The B - I - G Opportunity: Women & Boomers Tom Peters/02.11.2004. I. NEW MARKETS. “Baby-boomer Women: The Sweetest of Sweet Spots for Marketers” —David Wolfe and Robert Snyder, Ageless Marketing. 1. Trends Worth Trillion$$$ I : Women Roar .

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slide3
“Baby-boomer Women: The Sweetest of Sweet Spots for Marketers”—David Wolfe and Robert Snyder, Ageless Marketing
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?????????Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)Houses … 91%D.I.Y. (major “home projects”) … 80%Consumer Electronics … 51%Cars … 68% (90%)Allconsumerpurchases … 83%Bank Account … 89%Household investment decisions … 67%Small business loans … 70%Health Care … 80%

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2/3rds working women/50+% working wives > 50%80% checks61% bills53% stock (mutual fund boom)43% > $500K95% financial decisions/ 29% single handed

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1970-1998Men’s median income: +0.6%Women’s median income: + 63%Source: Martha Barletta, Marketing to Women
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Business Purchasing PowerPurchasing mgrs. & agents: 51%HR: >>50%Admin officers: >50%Source: Martha Barletta, Marketing to Women
women owned bus u s employees f500 employees worldwide source martha barletta marketing to women
Women-owned Bus.U.S. employees > F500 employees worldwideSource: Martha Barletta, Marketing to Women
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91% women: ADVERTISERS DON’T UNDERSTAND US. (58% “ANNOYED.”)Source: Greenfield Online for Arnold’s Women’s Insight Team (Martha Barletta, Marketing to Women)

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Carol Gilligan/ In a Different VoiceMen: Get away from authority, familyWomen:ConnectMen: Self-orientedWomen:Other-orientedMen: RightsWomen:Responsibilities

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Men: Individual perspective. “Core unit is ‘me.’ ”Pride in self-reliance.Women: Group perspective. “Core unit is ‘we.’ ” Pride in team accomplishment.Source: Martha Barletta, Marketing to Women

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FemaleThink/ Popcorn“Men and women don’t think the same way, don’t communicate the same way, don’t buy for the same reasons.”“He simply wants the transaction to take place. She’s interested in creating a relationship. Every place women go, they make connections.”

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“Men seem like loose cannons. Men always move faster through a store’s aisles. Men spend less time looking. They usually don’t like asking where things are. You’ll see a man move impatiently through a store to the section he wants, pick something up, and then, almost abruptly he’s ready to buy. For a man, ignoring the price tag is almost a sign of virility.”Paco Underhill, Why We Buy*(*Buy this book!)

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“Shopping: A Guy’s Nightmare or a Girl’s Dream Come True?”“Buy it and be gone”vs.“Hang out and enjoy the experience”Source: The Charleston [WV] Gazette/06.22.2002

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How Many Gigs You Got, Man?“Hard to believe … Different criteria” “Every research study we’ve done indicates that women really care about the relationship with their vendor.”Robin Sternbergh/ IBM

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Women's View of Male SalespeopleTechnically knowledgeable; assertive; get to the point; pushy; condescending; insensitive to women’s needs.Source: Judith Tingley, How to Sell to the Opposite Sex (Martha Barletta, Marketing to Women)

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Women as Healthcare Decision Makers— read vociferously— want choices— value convenience— look for small signs of sensitivity (gowns that close)Source: Cheryl Stone, Rynne Marketing Group

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Women and Healthcare— Women are more dissatisfied— Women are frustrated by the way they are treated and spoken to by physicians— Women seek more information— Women are more pressed for time— Women make most healthcare decisions and purchasesSource: Patricia Braus, Marketing Health Care to Women

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Women and Financial AdvisorsWomen want ...— a plan— to be listened to— to read about it and think about itWomen do not want ...— a high-pressure sales pitchSource: Kathleen Boyd, SVP, Wheat First Butcher Singer (now part of Wachovia Securities)

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“It is obvious to a woman when another woman is upset, while a man generally has to physically witness tears or a temper tantrum or be slapped in the face before he even has a clue that anything is going on. Like most female mammals, women are equipped with far more finely tuned sensory skills than men.” Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

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“Resting” State: 30%, 90%: “A woman knows her children’s friends, hopes, dreams, romances, secret fears, what they are thinking, how they are feeling. Men are vaguely aware of some short people also living in the house.”Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

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“As a hunter, a man needed vision that would allow him to zero in on targets in the distance … whereas a woman needed eyes to allow a wide arc of vision so that she could monitor any predators sneaking up on the nest. This is why modern men can find their way effortlessly to a distant pub, but can never find things in fridges, cupboards or drawers.”Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

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“Female hearing advantage contributes significantly to what is called ‘women’s intuition’ and is one of the reasons why a woman can read between the lines of what people say. Men, however, shouldn’t despair. They are excellent at imitating animal sounds.”Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

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SensesVision: Men, focused; Women, peripheral.Hearing: Women’s discomfort level I/2 men’s.Smell: Women >> Men.Touch: Most sensitive man < Least sensitive women.Source: Martha Barletta, Marketing to Women

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Sensitivity to differences: Twice as many card stacks.More “contextual,” “holistic.”“People powered”: Age 3 days, baby girls 2X eye contact. Source: Martha Barletta, Marketing to Women

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“When a woman is upset, she talks emotionally to her friends; but an upset man rebuilds a motor or fixes a leaking tap.”Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps

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Stress* **Men: Fight or fleeWomen: Seek the company of friends*Source: UCLA, “Female Response to Stress: Tend and Befriend, Not Fight or Flight”/Psychological Review**90% of stress research: men

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“Women speak and hear a language of connection and intimacy, and men speak and hear a language of status and independence. Men communicate to obtain information, establish their status, and show independence. Women communicate to create relationships, encourage interaction, and exchange feelings.”Judy Rosener, America’s Competitive Secret

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“The Hollywood scripts that men write tend to be direct and linear, while women’s compositions have many conflicts, many climaxes, and many endings.”Helen Fisher, The First Sex: The Natural Talents of Women and How They Are Changing the World

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“I only really understand myself, what I’m really thinking and feeling, when I’ve talked it over with my circle of female friends. When days go by without that connection, I feel like a radio playing in an empty room.”Anna Quindlen

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“Women are more comfortable talking or thinking about people and relationships, while men prefer to contemplate things.”—research reported in the New York Times (08.10.2003)

slide42
“Where the Girls Are: They’re Online, Solving Puzzles and Making Up Characters in Narrative-driven Games” —Headline/WSJ/10.28
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Initiate PurchaseMen: Study “facts & features.”Women: Ask lots of people for input.Source: Martha Barletta, Marketing to Women
eveolution truth no 1 connecting your female consumers to each other connects them to your brand
EVEolution: Truth No. 1Connecting Your Female Consumers to Each Other Connects Them to Your Brand
slide46

“The ‘Connection Proclivity’ in women starts early. When asked, ‘How was school today?’ a girl usually tells her mother every detail of what happened, while a boy might grunt, ‘Fine.’ ”EVEolution

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What If …“What if ExxonMobil or Shell dipped into their credit card database to help commuting women interview and make a choice of car pool partners?”“What if American Express made a concerted effort to connect up female empty-nesters through on-line and off-line programs, geared to help women re-enter the workforce with today’s skills?”EVEolution

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The New New Jiffy Lube“In the male mold, Jiffy Lube wasgoing all out to deliver quick, efficient service. But, in the female mold, women were being turned off by the ‘let’s get it fixed fast, no conversation required’ experience.”New JL: “Control over her environment. Comfortin the service setting. Trust that her car is being serviced properly. Respectfor her intelligence and ability.”EVEolution

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Purchasing PatternsWomen: Harder to convince; more loyal once convinced.Men: Snap decision; fickle.Source: Martha Barletta, Marketing to Women

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Cents & Sensibility “Our advisory sessions [with women] changed from a purely analytical, male approach to something that starts with the heart and ends with the figures.”

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“War has broken out over your home-improvement dollar, and Lowe’s has superpower Home Depot on the defensive. It’s not-so-secret ploy: Lure women.”—Forbes.com

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“Home Depot is still very much a guy’s chain. But women, according to Lowe’s research, initiate 80 percent of all home-improvement purchase decisions, especially the big ticket orders like kitchen cabinets, flooring and bathrooms. ‘We focused on a customer nobody in home improvement has focused on. Don’t get me wrong, but women are far more discriminating than men,’ says CEO Robert Tillman, 59, a Lowe’s lifer.” —Forbes.com

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“Women’s Work: Do-it-yourself has become do-it-herself, and toolmakers are taking notice”—Headline/San Francisco Chronicle/08.03
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“Darcy Winslow is a leading figure in Nike Goddess, a companywide grassroots team whose goal is a once-and-for-all shift in how a high-testosterone outfit sells to, designs for, and communicates with women.”—Fast Company/08.2002

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“Women weren’t comfortable in our stores. So I figured out where they would be comfortable—most likely their own homes. The [first Nike Goddess] store has more of a residential feel. I wanted it to have furniture, not fixtures. Above all, I didn’t want it to be girlie.” —John Hoke, designer, Nike

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Yes!: “Crest Spinoff Targets Women”—cover story,Ad Age/06.03.02Crest Rejuvenating Effects. “Chicks in charge” team. $50M launch. Packaging. Taste. Features.

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“Mattel Sees Untapped Market for Blocks: Little Girls”—Headline, WSJ/04.06.02“Last year more than 90% of Lego sets purchased were for boys. Mattel says Ello—with interconnecting plastic squares, balls, triangles, squiggles, flowers and sticks, in pastel colors and with rounded corners—will go beyond Lego’s linear play patterns.”

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“Volvo Teams Up to Build What Women Want: Concept Car Goes for Great Storage, Easy Maintenance”—headline/USA Today/12.16.2003/140-person team;80% women

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Enterprise Reinvention!RecruitingHiring/Rewarding/PromotingStructure ProcessesMeasurementStrategyCulture VisionLeadershipTHE BRAND ITSELF!

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STATEMENT OF PHILOSOPHY: I am a businessperson. An analyst. A pragmatist. The enormous social good of increased women’s power is clear to me; but it is not my bailiwick. My “game” is haranguing business leaders about my fact-based conviction thatwomen’s increasing power – leadership skills and purchasing power – is the strongest and most dynamic force at work in the American economy today. Dare I say it as a long-time Palo Alto resident … THIS IS EVEN BIGGER THAN THE INTERNET!Tom Peters

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Not a Morality Play“It is critical that we all understand that IBM is not marketing to women entrepreneurs because it is the thing to do, or even the right thing to do. We’re marketing to women entrepreneurs because it is a huge opportunity.”— Cherie Piebes

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27 March 2000: email to TP from Shelley Rae Norbeck “I make 1/3rd more money than my husband does. I have as much financial ‘pull’ in the relationship as he does. I’d say this is also true of most of my women friends. Someone should wake up, smell the coffee and kiss our asses long enough to sell us something! We have money to spend and nobody wants it!”

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“If we are single, they say we couldn’t catch a man. If we are married, they say we are neglecting him. If we are divorced, they say we couldn’t keep him. If we are widowed, they say we killed him.”Kathleen Brown, on the joys of female political candidacy

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Ass Of The Year2002: Maurice Greenberg, A.I.G., on the Company’s New (All Male) Leadership Team“In a lot of countries of the world, it would be very difficult for a woman to be a good CEO. … I have a responsibility to do the best we can for shareholders.” * ***Source: New York Times/05.05.02**Wouldn’t you love to watch him tell that … face-to-face … to Margaret Thatcher or Carly Fiorina? (I would.)

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Ad from Furniture /Today (04.01):“MEET WITH THE EXPERTS!: How Retailing’s Most Successful Stay that Way”PresentingExperts: M = 16;F = ?? (94% = 272)

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Stupid: “Amazing, now that I think about it. A bunch of guys --developers, architects, contractors, engineers, bankers--sitting around designing shopping centers. And the ‘end users’ will be overwhelmingly women!”

customer is king 4 440 customer is queen 29 source steve farber google search 04 2002
“Customer is King”: 4,440“Customer is Queen”: 29Source: Steve Farber/Google search/04.2002
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“Women Beat Men at Art of Investing”Source: Miami Herald, reporting on a study by Profs. Terrance Odean and Brad Barber, UC Davis(Cause: Guys are “in and out” of stocks more often; women choose carefully and hold on for the long term)

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Investment Club ReturnsWomen-only clubs 1997 … 17.9%Mixed … 17.3%Men-only … 15.6%Source: National Assoc. Investors
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Value Line: Top State* Investment Clubs 20008 … All male19 … Coed22 … All FEMALE* VT & Maine not included; D.C. included
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JBQ: Stop Treating Women Investors Like Idiots!“Why all this focus on women and our lack of investment guts? A far greater problem, it seems to me, is trigger-happy speculation, mostly by men. The kind of guys whose family savings went south with the dot-coms. Imagine a list of their money mistakes: Shoot from the hip. Overtrade their accounts. Believe they’re smarter than the market. Think with their mouse rather than their brain. Praise their own genius when stocks go up. Hide their mistakes from their wives.”Source: Newsweek 01.08.01

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Notes to the CEO--Women are not a “niche”; so get this out of the “Specialty Markets” group.--The competition is starting to catch on. (E.g.: Nike, Nokia, Wachovia, Ford, Harley-Davidson, Jiffy Lube, Charles Schwab, Citigroup, Aetna.)--If you “dip your toes in the water,” what makes you think you’ll get splashy results?--Bust through the walls of the corporate silos.--Once you get her, don’t let her slip away.--Women ARE the long run!Source: Martha Barletta, Marketing to Women

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1. Men and women are different.2. Very different.3. VERY, VERY DIFFERENT.4. Women & Men have a-b-s-o-l-u-t-e-l-y nothing in common.5. Women buy lotsa stuff.6. WOMEN BUY A-L-L THE STUFF.7. Women’s Market = Opportunity No. 1.8. Men are (STILL) in charge.9. MEN ARE … TOTALLY, HOPELESSLY CLUELESS ABOUT WOMEN.10. Women’s Market = Opportunity No. 1.

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44-65: “New Consumer Majority” **45% larger than 18-43; 60% larger by 2010Source: Ageless Marketing, David Wolfe & Robert Snyder
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“The New Consumer Majority is the only adult market with realistic prospects for significant sales growth in dozens of product lines for thousands of companies.”—David Wolfe & Robert Snyder, Ageless Marketing

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“Baby-boomer Women: The Sweetest of Sweet Spots for Marketers”—David Wolfe and Robert Snyder, Ageless Marketing
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“NOT ACTING THEIR AGE: As Baby Boomers Zoom into Retirement, Will America Ever Be the Same?”USN&WR Cover/06.01
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50+$7T wealth (70%)/$2T annual income50% all discretionary spending79% own homes/40M credit card users41% new cars/48% luxury cars$610B healthcare spending/74% prescription drugs5% of advertising targetsKen Dychtwald, Age Power: How the 21stCentury Will Be Ruled by the New Old

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“Advertisers pay more to reach the kid because they think that once someone hits middle age he’s too set in his ways to be susceptible to advertising. … In fact, this notion of impressionable kids and hidebound geezers is little more than a fairy tale, a Madison Avenue gloss on Hollywood’s cult of youth.”—James Surowiecki (The New Yorker/04.01.2002)

read this carol morgan doran levy marketing to the mindset of boomers and their elders
Read This!Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders
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“Marketers attempts at reaching those over 50 have been miserably unsuccessful. No market’s motivations and needs are so poorly understood.”—Peter Francese, founding publisher,American Demographics

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“Households headed by someone 40 or older enjoy 91% ($9.7T) of our population’s net worth. … The mature market is the dominant market in the U.S. economy, making the majority of expenditures in virtually every category.”—Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

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“The mature market cannot be dismissed as entrenched in its brand loyalties.”—Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

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“Focused on assessing the marketplace based on lifetime value (LTV), marketers may dismiss the mature market as headed to its grave. The reality is that at 60 a person in the U.S. may enjoy 20 or 30 years of life.” —Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

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“While the average American age 12 or older watched at least five movies per year in a theater, those 40 and older were the most frequent moviegoers, viewing 12 or more a year.”—Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

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“Women 65 and older spent $14.7 billion on apparel in 1999, almost as much as that spent by 25- to 34-year-olds. While spending by the older women increased by 12% from the previous year, that of the younger group increased by only 0.1%. But who in the fashion industry is currently pursuing this market?”—Carol Morgan & Doran Levy, Marketing to the Mindset of Boomers and Their Elders

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“Elderly”— Purchase “experiences” more than just “things” — Convenience / Comfort / Access / Need to be appreciated = Top PrioritiesSource: Ken Dychtwald, Age Wave

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Possession Experiences /“Desires for things”/Young adulthood/to 38Catered Experiences/ “Desires to be served by others”/Middle adulthoodBeing Experiences/“Desires for trancendany experiences”/Late adulthoodSource: David Wolfe and Robert Snyder/Ageless Marketing

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POSSESSION EXPERIENCE: New car, home entertainment system, new boat, first home …CATERED EXPERIENCE: Thrilling theater performance, experience of playing on an exclusive golf course, throwing a highly successful catered party …BEING EXPERIENCE: Heading up a charity ball, helping a young person master a problem, learning an exciting new thing …Source: David Wolfe and Robert Snyder, Ageless Marketing

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“Catered experiences more likely say ‘We have arrived!’ They mark the first stage of being someone versus becoming someone.”Source: David Wolfe and Robert Snyder, Ageless Marketing

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“ ‘Age Power’ will rule the 21st century, and we are woefully unprepared.”Ken Dychtwald, Age Power: How the 21st Century Will Be Ruled by the New Old

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“The baby-boom generation is the first wellness generation.”—Paul Zane Pilzer/The Wellness Revolution: The Next Trillion Dollar Industry
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Wellness = $$$$$$$$Currently $200B, $1T by 2013(Source: Paul Zane Pilzer, The Wellness Revolution: The Next Trillion Dollar Industry)
hispanics 38 5 growth 1990 2000 vs 9 3 overall source communispace 2003
Hispanics: 38.5% growth, 1990-2000, vs. 9.3% overall**Source: Communispace/2003
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“Relative to the demand, the success stories are pitifully few”—Andrew Nuttney, Research Director, The Research & Advisory Group; on marketing effectively to Hispanics

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“BofA Is Betting Its Future on the Hispanic Market” *“We expect to get no less than80 % of our future growth in retail banking from the Hispanic market.” —Ken Lewis, CEO, BofA*Fortune/04.2003

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Duh!“We want our associate population to mirror our customer population at every level, from the executive suite all the way to the retail floor. In the marketplace, basically what I want to do is draw a concentric circle around every one of our 2,300 stores, and I want the assortment in that store to match the ethnicity of the neighborhood it’s in. Some neighborhoods are all Hispanic, so we can put in a full Hispanic format. That’s what Super Saver is. All the signage is in both languages. There’s a 100 percent Spanish-speaking staff in the store.”—Larry Johnston, CEO, Albertsons

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“Experiencesare as distinct from services as services are from goods.”Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

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“Club Med is more than just a ‘resort’; it’s a means of rediscovering oneself, of inventing an entirely new ‘me.’ ”Source: Jean-Marie Dru, Disruption

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“The [Starbucks] Fix” Is on …“We have identified a ‘third place.’ And I really believe that sets us apart. The third place is that place that’s not work or home. It’s the place our customers come for refuge.”Nancy Orsolini, District Manager

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Experience: “Rebel Lifestyle!”“What we sell is the ability for a 43-year-old accountant to dress in black leather, ride through small towns and have people be afraid of him.”Harley exec, quoted in Results-Based Leadership

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1940: Cake from flour, sugar (raw materials economy): $1.001955: Cake from Cake mix (goods economy): $2.001970: Bakery-made cake (service economy): $10.001990: Party @ Chuck E. Cheese (experience economy) $100.00

message experience is the last 80 p s experience applies to all work
Message:“Experience” is the “Last 80%”P.S.: “Experience” applies to allwork!
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1940: Cake from flour, sugar (raw materials economy): $1.001955: Cake from Cake mix (goods economy): $2.001970: Bakery-made cake (service economy): $10.001990: Party @ Chuck E. Cheese (experienceeconomy) $100.00

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Bob Lutz:“I see us as being in the art business. Art, entertainment and mobile sculpture, which, coincidentally, also happens to provide transportation.”Source: NYT 10.19.01

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“Lexus sells its cars as containers for our sound systems. It’s marvelous.”—Sidney Harman/ Harman International
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It’s All About EXPERIENCES: “Trapper” to “Wildlife Damage-control Professional”Trapper: <$20 per beaver pelt.WDCP: $150/“problem beaver”; $750-$1,000 for flood-control piping … so that beavers can stay.Source: WSJ/05.21.2002

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Moving CompaniesWSJ/08.2003: “In Texas, They’ll fill your empty fridge with brie and wine. An outfit in New York promises quick high-speed Internet hookup. And when Allied Van Lines finishes unloading your couch, they’ll have a feng shui expert figure out the right spot. …”

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Duet … Whirlpool … “washing machine” to “fabric care system” … white goods: “a sea of undifferentiated boxes” … $400 to $1,300 … “the Ferrari of washing machines” … consumer: “They are our little mechanical buddies. They have personality. When they are running efficiently, our lives are running efficiently. They are part of my family.” … “machine as aesthetic showpiece” … “laundry room” to “family studio” / “designer laundry room” (complements Sub-Zero refrigerator and home-theater center)Source: New York Times Magazine/01.11.2004

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“Car designers need to create astory. Every car provides an opportunity to create anadventure. …“The Prowler makes yousmile. Why? Because it’s focused. It has aplot, a reason for being, apassion.”Freeman Thomas, co-designer VW Beetle; designer Audi TT

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“Most executives have no idea how to add value to a market in the metaphysical world. But that is what the market will cry out for in the future. There is no lack of ‘physical’ products to choose between.”Jesper Kunde, Unique Now ... or Never [on the excellence of Nokia, Nike, Lego, Virgin et al.]

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DREAM: “A dream is a complete moment in the life of a client. Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The opportunity to help clients become what they want to be.” —Gian Luigi Longinotti-Buitoni

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Common Products “Dream” ProductsMaxwell House StarbucksBVD Victoria’s SecretPayless FerragamoHyundai FerrariSuzuki Harley-DavidsonAtlantic City AcapulcoNew Jersey CaliforniaCarter KennedyConners PeleCNN MillionaireSource: Gian Luigi Longinotti-Buitoni

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The marketing of Dreams (Dreamketing)Dreamketing: Touching the clients’ dreams.Dreamketing: The art of telling stories and entertaining.Dreamketing: Promote the dream, not the product.Dreamketing: Build the brand around the main dream.Dreamketing: Build the “buzz,” the “hype,” the “cult.”Source: Gian Luigi Longinotti-Buitoni

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Building the Creative OrganizationChoose a creator: The cultural leader who gives the company an aesthetic point of view.Hire eclectically: Hire collaborators with different cultures and past histories in order to balance rigor with emotion.Prepare vertically: Develop a rigorous understanding of the product and the client.Develop horizontally: Promote curiosity in unrelated disciplines.Lead emotionally: Engender passionate dedication through vision and freedom.Build for the long haul: Creativity requires a lifetime commitment.Source: Gian Luigi Longinotti-Buitoni

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Constantly Magnify Perceived ValueMaximize your value-added by fulfilling the dreams of your clients.Only invest in what is valuable for your client.Don’t let the short-term results weaken the long-term value of your brand.Balance rigorous control of the financial endeavor with the emotional management of your brand.Build a financial structure that allows risk-taking: NO RISKS—NO DREAMS.Establish long-term “price power” in order to avoid the trap of the commodity product.Source: Gian Luigi Longinotti-Buitoni

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(Revised)Experience LadderDreams Come True Awesome ExperiencesSolutionsServicesGoodsRaw Materials
slide148
Safe, On-time and ...“We defined personality as a market niche. We seek to amaze, surprise, entertain.”— Herb Kelleher, SWA / LUV
slide149

Furniture vs. Dreams“We do not sell ‘furniture’ at Domain. We sell dreams. This is accomplished by addressing the half-formed needs in our customers’ heads. By uncovering these needs, we, in essence, fill in the blanks. We convert ‘needs’ into ‘dreams.’ Sales are the inevitable result.”— Judy George, Domain Home Fashions

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“The Ritz-Carlton experience enlivens the senses, instills well-being, and fulfills even the unexpressed wishes and needs of our guests.”— from the Ritz-Carlton Credo

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“The sun is setting on the Information Society—even before we have fully adjusted to its demands as individuals and as companies. We have lived as hunters and as farmers, we have worked in factories and now we live in an information-based society whose icon is the computer. We stand facing the fifth kind of society: the Dream Society. … The Dream Society is emerging this very instant—the shape of the future is visible today. Right now is the time for decisions—before the major portion of consumer purchases are made for emotional, nonmaterialistic reasons. Future products will have to appeal to our hearts, not to our heads. Now is the time to add emotional value to products and services.” —Rolf Jensen/The Dream Society:How the Coming Shift from Information to Imagination Will Transform Your Business

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“In Denmark, eggs from free-range hens have conquered over 50 percent of the market. Consumers do not want hens to live their lives in small, confining cages. They are willing to pay 15 percent to 20 percent more for the story about animal ethics. This is classic Dream Society logic. Both kind of eggs are similar in quality, but consumers prefer eggs with the better story. After we debated the issue and stockpiled 50 other examples, the conclusion became evident: Stories and tales speak directly to the heart rather than the brain. After a century where society was marked by science and rationalism, the stories and values are returning to the scene.”—Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business

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“Person 1 is the rational, planning being, and Person 2 is the emotional and story-buying entity. The last century disowned and repressed Person 2—a rejection that is not surprising in a technological era. Now Person 2 is back in town—in the shops, on the Internet, in the companies, in politics, in economics, even science.” —Rolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business

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Six Market Profiles1. Adventures for Sale2. The Market for Togetherness, Friendship and Love3. The Market for Care4. The Who-Am-I Market5. The Market for Peace of Mind6. The Market for CnvictionsRolf Jensen/The Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business

5 seek the mostly ignored soul of experiences design rules
5. Seek the [Mostly Ignored] “Soul” of “Experiences”: Design Rules!
unconventional design messages not about lumpy objects no t about 79 000 objects
Unconventional [Design] MessagesNot about ... “Lumpy Objects”!Not about ... $79,000 objects
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The I.D. [International Design] Forty*Airstream … Alfred A. Knopf … Apple Computer …Amazon.com… Bloomberg… Caterpillar …CNN… Disney…FedEx… Gillette … IBM …Martha Stewart… New Balance …Nickelodeon… Patagonia …The New York Yankees… 3M … Etc. * List No. 1, 1999

unconventional design messages not about lumpy objects no t about 79 000 objects160
Unconventional [Design] MessagesNot about ... “Lumpy Objects”!Not about ... $79,000 objects
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Design Transforms even the [Biggest] Corporations!TARGET… “the champion of America’s new design democracy” (Time) “Marketer of the Year 2000” (Advertising Age)

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Lady Sensor, Mach3, and …$70M on developing the OralB CrossAction toothbrush23 patents, including 6 for the packagingSource: www.ecompany.com [06.00]

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And Tomorrow …“Fifteen years ago companies competed on price. Now it’s quality.Tomorrow it’s design.”Robert Hayes
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All Equal Except …“At Sony we assume that all products of our competitors have basically the same technology, price, performance and features.Design is the only thing that differentiates one product from another in the marketplace.”Norio Ohga

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“The new Beetle fails at most categories. The only thing it doesn’t fail in is drop-dead charm.”Jerry Hirshberg, Nissan Design International

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Object of Desire!“Every now and then, a designcomes along that radically changes the way we think about a particular object. Case in point: the iMac. Suddenly, a computer is no longer an anonymous box. It is a sculpture, an object of desire, something that you look at.”Katherine McCoy & Michael McCoy, Illinois Institute of Technology

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“The good 10 percent of American product design comes out of big-idea companies that don’t believe in talking to the customer. They're run by passionate maniacs who make everybody’s life miserable until they get what they want.”Bran Ferren, Applied Minds/Wired 1-2001

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“We don’t have a good language to talk about this kind of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. Design is the fundamentalsoul of a man-made creation.”Steve Jobs

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Check Out the Language:“Tomorrow it’s design …”“Design is the only thing …”“Design is … religion ...”“Drop-dead charm …”“Object of desire …” “Passionate maniacs …” “Fundamental soul …”

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THE BASE CASE: I am a design fanatic. Though not “artistic,” I love “cool stuff.” But it goes [much] further, far beyond the personal. Design has become a professional obsession. I SIMPLY BELIEVE THAT DESIGN PER SE IS THE PRINCIPAL REASON FOR EMOTIONAL ATTACHMENT [or detachment] RELATIVE TO A PRODUCT OR SERVICE OR EXPERIENCE. Design, as I see it, is arguably the #1 DETERMINANT of whether a product-service-experience stands out … or doesn’t. Furthermore, it’s another “one of those things” that damn few companies put – consistently – on the front burner.

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“Perhaps the macho look can be interesting … if you want to fight dinosaurs. But now to survive you need intelligence, not power and aggression. Modern intelligence means intuition—it’s female.”Source: Philippe Starck, Harvard Design Magazine (Summer 1998)

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“We are in the twilight of a society based on data. As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion. Imagination, myth, ritual - the language of emotion - will affect everything from our purchasing decisions to how we work with others.Companies will thrive on the basis of their stories and myths.Companies will need to understand that their products are less important than their stories.”Rolf Jensen, Copenhagen Institute for Future Studies

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“Apple opposes, IBM solves, Nike exhorts, Virgin enlightens, Sony dreams, Benetton protests. … Brands are not nouns but verbs.”Source: Jean-Marie Dru, Disruption

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“You do not merely want to be the best of the best. You want to be considered the only ones who do what you do.”Jerry Garcia
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Brand = You Must Care!“Success means never letting the competition define you. Instead you have to define yourself based on a point of view you care deeply about.”Tom Chappell, Tom’s of Maine

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Rules of “Radical Marketing”Love + Respect Your Customers!Hire only Passionate Missionaries!Create a Community of Customers!Celebrate Craziness!Be insanely True to the Brand!Sam Hill & Glenn Rifkin, Radical Marketing(e.g., Harley, Virgin, The Dead, HBS, NBA)

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Branding: Is-Is Not “Table”TNT is not: TNT is: TNT is not:Juvenile Contemporary Old-fashionedMindless Meaningful ElitistPredictable Suspenseful DullFrivolous Exciting SlowSuperficial Powerful Self-important

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?????????Home Furnishings … 94%Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)Houses … 91%D.I.Y. (major “home projects”) … 80%Consumer Electronics … 51%Cars … 68% (90%)Allconsumerpurchases … 83%Bank Account … 89%Household investment decisions … 67%Small business loans … 70%Health Care … 80%

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50+$7T wealth (70%)/$2T annual income50% all discretionary spending79% own homes/40M credit card users41% new cars/48% luxury cars$610B healthcare spending/74% prescription drugs5% of advertising targetsKen Dychtwald, Age Power: How the 21stCentury Will Be Ruled by the New Old

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“Baby-boomer Women: The Sweetest of Sweet Spots for Marketers”—David Wolfe and Robert Snyder, Ageless Marketing
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“Experiencesare as distinct from services as services are from goods.”Joseph Pine & James Gilmore, The Experience Economy: Work Is Theatre & Every Business a Stage

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DREAM: “A dream is a complete moment in the life of a client. Important experiences that tempt the client to commit substantial resources. The essence of the desires of the consumer. The opportunity to help clients become what they want to be.” —Gian Luigi Longinotti-Buitoni

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“We don’t have a good language to talk about this kind of thing. In most people’s vocabularies, design means veneer. … But to me, nothing could be further from the meaning of design. Design is the fundamentalsoul of a man-made creation.”Steve Jobs

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Marketing to Women,Martha BarlettaEVEolution: The Eight Truths of Marketing to Women,Faith Popcorn & Lys MarigoldAgeless Marketing,David Wolfe & Robert SnyderMarketing to the Mindset of Boomers and Their Elders,Carol Morgan & Doran LevySelling Dreams: How to Make Any Product Irresistible, Gian Luigi Longinotti-BuitoniThe Dream Society: How the Coming Shift from Information to Imagination Will Transform Your Business, Rolf JensenTrading Up: The New American Luxury, Michael Silverstein & Neil Fiske