Marketing Evolution Revolution

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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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How will marketing developments affect the New
Society ?

• Neo-Marketing and Consumer Behaviour in a
  Changing Marketplace
• Seeing the Unseen . . .

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

Professor Luiz Moutinho
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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
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• 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
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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
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• 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
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• 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
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NEW SOCIOQUAKENEW SOCIAL VALUES

• 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
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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
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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
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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
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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., customatix.com)
Professor Luiz Moutinho
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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
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• Increasingly, products and services are consumed
  by the mind as experiences !

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

Professor Luiz Moutinho
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• 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
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• 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
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• 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
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• 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
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• 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

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CS MK

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

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• 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)

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

Professor Luiz Moutinho
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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
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• . . . 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
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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)
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• 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 !

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

Professor Luiz Moutinho
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• 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
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• 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
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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
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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
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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
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• 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
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• COMPANIES NEED FORESIGHT, NOT HINDSIGHT !

Professor Luiz Moutinho