Emotional Economy

1
Emotional Economy
2
Emotional Economy

• Emotional Economy is on a basis of
• General observation of human behaviour.
• Societal and technological developments.
• Future challenges for man and mankind.

3
The market in the Emotional Economy

• Still more people want to live several lives
  within the frame-work of the one, they have got.
  
• The number of different types of lifestyles will
  grow drastically. It will cause a change in the
  market and its composition

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The dream of several lives

• Most of us have already dreamt of living several
  lives wearing a distinct mask in each.
• This is whats good and bad - easy and hard, when
  you want to change track. From one existence to
  another

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Capitalization Life wage

• Is the sum of your capitalizable value, measured
  by
• Personal characteristics
• Education
• Business potential
• Prognosticated behaviour

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A life wage is not for all

• World population will grow with 3 billion people
  to nine billion people in 2050.
• Only the few will be prosperous from our
  standards.
• Obvious global segmentation - including in
  developing countries.
• More regional and global unrest.
• The hegemony of the USA is diminishing.
• A new political order is emerging.

7
Lifestyle beats products

• Every customer wants to be the main character in
  her or his own reality show.
• Providing the means of staging every customers
  individuality will be the largest business in the
  world.
• 75 of consumption in the West is not of vital
  necessity.
• The individual desire the emotional attention,
  that disappeared along with consecutive family
  life.
• Companies that are able to be family and create
  realtions, will acquire the bulk of the
  customers.

8
Mass marketing will survive - with a new mission

• Forget everything you learned about mass
  marketing - the customers want 11.
• The target is constantly moving, and its no
  longer feasible to use bow and arrow - only the
  auto-guided missile, that automatically adjusts
  the course.
• The customers couldnt care less about your or
  your product or service, unless
• Maybe the lesson is, that a successful corporate
  strategy in the future is a reflection of the
  market - not an attempt to influence it for own
  gain.

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Women will take charge

• The female part of the Danish population is
  50,5.
• In the business community 3 of executive and
  board directors are women and 97 are men.
• According to an American survey of Fortune 500
  companies, businesses with female executives have
  a 20-70 higher yield on net capital compared to
  other businesses in the same industry (see
  http//www.fremtidensledelse.dk).
• The Norwegian government has decided that by 2005
  all companies on the stock exchange are required
  to have at least a 40 representation of both
  sexes.
• Danish companies could make an estimated 20
  billion DKK higher profit, and tax revenue would
  increase with 13,5 billion DKK p.a. with more
  equality in boards and managements.
• Women will take charge Men will pursue new
  barrier-breaking goals - and women will acquire
  more competence in general management.
• Market relevance Marketing will be on the
  conditions of each individual customer - no
  matter the sex of the client. Marketing is not a
  gender-related issue - its about competence.

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The new challenge to companies

• How do you make family with 4 million customers?
• How do you build up enough trust to be able to
  get direct access to customers pockets ?
• How do you gather the mental fingerprints of your
  customers - and with it their history and future?
• How du you surmount practical obstacles?

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Customer capital value

• Is defined as the customer capital value of a
  given company, measued from
• Customers emotional bond through lifetime value
  multiplied with lifestyle time.

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A new estimation of value

• Can emotions be converted into an economic
  measurement? Once the debate was, whether the
  Earth was flat or round
• In a few years corporate value will be measured
  from the ability to acquire, retain and extend
  emotional relations with customers.
• Customers will invest in relations-based
  companies that are best at dealing with ethical,
  moral and financial demands and expectations on a
  11 basis.
• Remember - that customers will buy solutions or
  solution models in the future - not finished
  products. And - emotions may be at stake, but
  the brain is still working.

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Be the target The customer is the hunter

• New marketing is about making the customer use
  her instinct for hunting - instead of feeling
  like a moving target.
• The blind shall walk and the lame shall see.
• The shift in roles is significant, and more
  marketing will focus on Marcus Antonius Ive
  come to bury Ceasar, not to avenge him
• For that reason Wholl have a say over the
  future developments in the market? The market
  itself or marketers? And whos what when?

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Winners and losers in an emotional economy

• Strong brands with extended 11 customer
  relations will gain, because....
• Traditional brands are necessary in order to gain
  access to the marketplace.
• New forms of marketing based on surprising and
  abstract thinking rather than graphic design will
  set the agenda.
• Its always the past that catches up with you,
  never the future!