Transcript the future of marketing

THE FUTURE OF
MARKETING
Sunarto Prayitno
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Contents
1.
2.
The Future of Marketing
Marketing Strategic Transition
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1. The Future of Marketing
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The Future of Marketing
Cor Molenaar, 2002
Customers now want you to remember
who they are, understand their needs and
provide them with a specific product to
meet these needs.
The internet has changed the way
customers think forever.
‘This lecture’ will help you to build your
marketing strategy to attract, retain and
grow profitable customers into the future.
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Leo Burnett Company, Inc.
Richard Fizdale, Chairman and CEO
‘The New Marketing Paradigm: IMC’ could
be the most important book on marketing
you will ever read. The authors recognize
(Don E. Schultz, et al., 1993) that the
mass market is dead.
The old assumptions, strategies, and
tactics for reaching abroad base of people
with a single selling message delivered by
mass media are no longer valid.
Television, once of the greatest mass
communications vehicle, is impotent. The
database will prove to be a more powerful
marketing tool than television ever was.
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Global Building Blocks
Communicating Globally, Don E. Schultz et al., 2000
The four major interrelated elements or building
blocks are driving changes in the market place
and thus marketing and marketing
communications:
Digitalization
Information Technology
Intellectual Property
Communication Systems
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Digitalization
The ability to convert almost all types of
knowledge, information, and materials
into 1s and 0s manipulate those digits
through computers and electronic systems
has literally changed the world.
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Information Technology
By information technology we mean all
those devices, techniques, and capabilities
that allow human knowledge, data, or
experience to be transferred quickly and
easily between organizations or individuals
around the world.
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Intellectual Property
Historically, nations, business
organizations, and individuals have been
valued on the basis of their tangible assets
– raw materials, land, factories and
buildings, and even cash and precious
metals.
Today the new wealth is knowledge,
experience, understanding, and
capabilities.
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Communication Systems
Historically, communication systems have been
linear, developed, organized, and delivered from
a single source, whether that was a newspaper, a
radio or television station, or a magazine, to
masses of listeners or readers or viewers.
Communication systems, however, have changed
dramatically in the last few years. In addition,
many form of media have become interactive;
that is audience can be both receivers and
senders of messages and information.
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Knicks 101
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Traditional Value System
Strong leadership.
Tendency to be thrifty and moderate.
Zeal for education.
Interpersonal relation emulation family
relationship.
Cooperation.
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New Value System
Rule by the law.
Social diversification.
Democracy.
Individualism.
Materialism.
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Consumer Behaviour
Transition
Traditional
New Value
Value System
System
Change of
Life-Style
Economic Status
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The MTV
Generation
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The MTV
Generation
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The MTV
Generation
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The Life-style Trend
Convenient Trend
Quality Trend
Personality Trend
Health/natural Trend
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2. Marketing Strategic
Transition
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Market Structure
The Manufacturer-driven marketplace.
The Distribution-driven marketplace.
The interactive marketplace.
The global marketplace.
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The Manufacturer-driven
Marketplace
Sellers brought their goods and services to the
marketplace, where buyers come in search of the
thinks they needed.
Pricing, distribution, and marketing
communication occurred on the spot and
instantaneously.
Because the manufacturer or seller controlled the
supply of product and services, it also exerted
control over the marketplace.
Indeed, in these simple buyer-seller
relationships, sellers always control the four
major power elements in the marketplace.
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The Distribution-driven
Marketplace
This has come primarily as the result of retailers,
distributors, wholesalers, or others form of
channel organizations gaining control of the four
marketplace building blocks.
It is now in the center of the system. From that
central location channels control marketplace
power.
That is, channels now dominate sellers and
buyers.
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The Interactive Marketplace
The basic structure of this marketplace began to
develop in the early 1990s with the growth and
expansion of various forms of electronic
communication such as the Internet, the
commercialization of the World Wide Web, and
the develop of E-commerce.
This new marketplace will be radically different
from those that have gone before.
Most important, it will, for the first time, put
marketplace power in the hands of consumers
rather than with the traditional producers or
channels.
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The Global Marketplace
Many organizations may have created crossborder production, distribution, and marketing
systems that they are currently using to serve
some clients.
In marketing communication, typically, they have
centralized communication development with one
headquarters group and pared the agency list to
one or two global suppliers.
Through those efforts they have created what
they call “global advertising campaigns”,
generally based on some type of “one sight, one
sound” marketing communication approach.
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The Global Marketplace
In the true sense of global marketing
communication, these companies have not yet
moved into many of the realms of marketing and
communication that we believe will be critical.
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The Global Marketplace
Those include:
1. Using an outside-in approach, that is,
identifying and valuing customers and
prospects that the organization is able to
serve.
2. Allocating finite corporate resources
against the most important customers and
determining how much and where to invest
those resources.
3. Finding new ways to balance the
improvement of shareholder returns with
services to customers on an ongoing basis.
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The Global Marketplace
4. Building ongoing relationships with
current and prospective customers that
provide benefits to both parties.
5. Totally integrating the marketing and
marketing communication activities of
the organization, both internally and
externally, to create ongoing, useful,
interactive communication systems that
bring the organization and its customers
closer together.
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Historical
Marketplace
Marketer
Marketing Diagonal
Current Marketplace
Mktr
Mktr
Mktr
Twenty-First-Century Marketplace
Mktr
Mktr
Mktr
Information
Channel
Channel
Channel
Channel
Information
Media
Media
Media
Media
Media
Information
Customer
Customer
Customer
Source: Don E. Schultz & Beth E. Barnes, Strategic Brand Communication Campaigns, NTC Business Book, 1999.
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Marketing Strategic
Basic Design
Segmentation
Targeting
Positioning
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Moving from the 4Ps to
the 4Cs
Inside-Out Focus:
Outside-In Focus:
Product
Price
Place
Promotion
Customer
Cost
Convenience
Communication
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Marketing Strategic Transition
From:
To:
One-way telling
Two-way selling
Advertiser’s choice
Consumer’s choice
Consumer as target Consumer as guest
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What is Internet Marketing?
Internet marketing is the process of building and
maintaining customer relationships through
online activities to facilitate the exchange of
ideas, products, and services that satisfy the
goals of both parties.
(Dictionary of Marketing Terms, 2000)
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