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Marketing Evolution Revolution


Title: Marketing Evolution + Revolution - the Future Marketing Environment Author: sk1mgt Last modified by: Srinivas Created Date: 4/12/2005 1:01:33 PM – PowerPoint PPT presentation

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Title: Marketing Evolution Revolution

Marketing Evolution Revolution the Future
Marketing Environment
  • The New Consumer From Prosumption and
    Downshifting to Neuromarketing and Particle

Professor Luiz Moutinho Foundation Chair of
Marketing School of Business and
Management University of Glasgow, Scotland
How will marketing developments affect the New
Society ?
  • Neo-Marketing and Consumer Behaviour in a
    Changing Marketplace
  • Seeing the Unseen . . .

Professor Luiz Moutinho
  • The greatest challenge to management in the next
    decade will be to change fast enough to keep pace
    with new technology, new markets and new values.
  • Either we take hold of the future or the future
    will take hold of us.

Professor Luiz Moutinho
The Need for Change
  • SATURATION The Changing Market
  • GLOBALISATION The Changing Competition
  • The Changing Consumer
  • The Changing Organisation

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

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

Professor Luiz Moutinho
Marketing Innovation - Trends
  • Marketing Environment
  • From virtual manufacturers to the feminisation of
  • 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
  • Marketing Research
  • From virtual reality (VR) marketing research to
    digital marketing research

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

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

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

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

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

Professor Luiz Moutinho
New Marketing, New Thinking
  • Customer focus has become a cliché among
    marketing departments keen to win competitive
    edge. But it deserves to be taken more
    seriously, as it disguises a paradigm shift from
    share of brand to share of customer.
  • Intelligent and integrated marketing and
  • 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
  • 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
  • Similarly, the whole idea of partnership sourcing
    or virtual integration is an application of the
    sense/response model.

Professor Luiz Moutinho
  • The idea is that consumers desires should not
    only influence our our business decisions, they
    should direct our business operations !
  • A new type of operation is turning the supply
    chain into a demand value chain, by reversing
    the flow of marketing from Company to Customer
    to Customer to Company

Professor Luiz Moutinho
Professor Luiz Moutinho
  • 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

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

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

Professor Luiz Moutinho
The New Consumer (2)
  • The Why generation
  • Prosumption and prosumers
  • Consciousness paradigm
  • Aware of product parity. Demanding on value.
    Knows what is behind the brand . . .

Professor Luiz Moutinho
Prosumption (Co-creation)
Those consumers who buy the marketing may well
go a step forward, and become PROSUMERS -
people who actively and deliberately take part in
the process of design, shaping or even producing
a product/service, knowing it is for them.
Professor Luiz Moutinho
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
  • Increasingly, products and services are consumed
    by the mind as experiences !

Professor Luiz Moutinho
Consumer Behaviour A new Look . . .
  • Higher Psychological Deficits
  • Disconnecting and exit customers
  • Here and now !
  • Consumers are increasingly time and effort
  • Virtual and E-shopping behaviour

Professor Luiz Moutinho
  • Markets consist of human beings not demographic
  • 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 sellers brand !

Professor Luiz Moutinho
  • Missing the notion of VALUE
  • 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 . . .

  • BOI (Best of Individual) values
  • Integrity (e.g. do we sell other peoples
    products if they are better?)
  • Empathy
  • Transformation (doing it better)
  • Passion

  • Companies set up to deliver value from our
    operations are not designed to deliver
    consumers value in my life.
  • Entails searching for and sourcing best value for
    genuinely customised and personalised service for
    solutions designed to improve personal
    productivity and emotional authenticity
  • Helping individuals manage aspects of their lives
    better (solution assembly) and helping
    individuals reaching important personal goals
    (Passion Partnership)

  • Marketers can get too wrapped up in the science
    of marketing and its techniques and forget about
    the customer . . .

Professor Luiz Moutinho
Hard-Edged Marketing
  • Whats 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
  • . . . The challenge for an organisation is to
    move to a situation where the customer starts
    buying from you rather than being sold to . . . !

Professor Luiz Moutinho
New Leading Indicators for CS
  • Processability
  • Multidimensionality
  • Measurability
  • Detailability
  • . . . and
  • Non-Artificiality !

Process-Based Management derived Customer
  • The death of corporate loyalty?
  • Companies should no longer expect loyalty they
    should accept the need to attract and addict
    people on a continuous basis !

Trends in MK DSS
  • Environmental Scanning and Forecasting
  • Increased Market Intelligence
  • Global MISs (I.e, JIGSAW Project)
  • Data Fusion, Data Mining, Neuro- biographic
    Clustering and Beyond
  • Use of Live Data
  • External research Associates (ERAs)
  • Deontology Issues

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

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

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

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

Professor Luiz Moutinho
Trends in Segmentation, Targeting and Positioning
  • 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
  • Syncographics
  • Motigraphics
  • Direct Marketing Technology. Persona
  • 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

Professor Luiz Moutinho

Professor Luiz Moutinho