Transcript Marketing is… - College of Business and Public Policy

Current Marketing
Issues Seminar
BA635
Dr. Ed Forrest
Fall * 2009
E
Telephone:
(O)786-4161
(Cell)
874-8784
Email:
[email protected]
W3site: http://www.cbpp.uaa.alaska.edu/afef/
Everything
is Online
3
Tonight:
Examine logic &
paradigm of course…
 which will guide our
exploration of
 “Current Marketing
Issues”
What is
Marketing?
5
Everybody is a Marketer

Everybody promotes/
sells themselves–
– To get job/ promotion
– To get date/ mate

Everybody has their
price…………………
6
Everyday You Market Yourself
Your packaging–clothes,
piercing, tattoos, cars, etc.
 We all engage in “Positioning
& Differentiation”

7
& Always been Marketers
Innate
sense of
exchange
 1,000’s of
years…
bartered &
traded
“branded”
goods &
services

8
“The Dawn of Marketing”
Marketing Defined
a FUNCTION
a PROCESS
a PERFORMANCE
a FUNCTION & PROCESS
 > Function = ORIENTATION
Classic Functional Definition
All activities performed in
between:
The Point of Production
&
The Point of Consumption
st
1
Formal Definition ~1919
*Marketing and Merchandising by
Ralph Butler & John Swinney,
 Marketing
defined
as ‘the manner in
which the product
is disposed of,
the way in which
it is distributed…,
through various
channels of
trade.”
11
•Book distinguishes
marketing from
merchandising,
•w/ marketing being
something
manufacturers do
•& merchandising
being the domain of
jobbers; retailers.
Marketing Defined -1935 -
“The performance
of business
activities that direct
the flow of goods &
services from
producers to
consumers.”
Marketing Definedas a Process- 1985
"The process of planning
& executing the
conception, pricing,
promotion & distribution
of ideas goods & services
to create exchange &
satisfy individual &
organizational objectives"
The Latest Official AMA
Definition
In 2004- AMA Re-defined Marketing
"Marketing is an organizational
function & a set of processes
 for creating, communicating &
delivering value to customers
 & for managing customer
relationships in ways that benefit
the organization & its
stakeholders."

Why the changed
focus?
What happened
between 1985
& 2004 that
made the AMA
change the
definition of
marketing?
The AMA Rationale: “Technology &
marketing been changing quite rapidly over last five to 10
years…
Marketing should
be customercentric -- not
brand-centric"

17
The 1985 definition was not encompassing
enough. The new definition more clearly
infuses the customer into marketing."
Marketing > Function
=An Orientation ”
“Marketing
is so basic
that it cannot be
considered a
separate function on a
par w/others such as manufacturing or
personnel…
Marketing > Function
=An Orientation
“Marketing is…
…the whole business
seen from the point of
view of its final result,
-from the customers’
point of view.”
Management Reorientation:
The Marketing Concept
Focus on
Consumer
– Not
product
Long –Term
Relationships
Not Shortterm Sales
Management Reorientation:
Relationship Marketing
Long-term Wide -Angle view of the customer
build life-long relationship in the
hope of establishing long-term
repeat purchasing.
Losing a customer means losing the
entire stream of purchases over a
lifetime of patronage =
Customer Lifetime
Value
Estimate
Customer Lifetime Value (CLV)
1.
2.
3.
4.
5.
6.
Estimate the number of purchase occasions by the
customer over a given interval…
Estimate the average amount spent per visit.
Estimate likely additional purchases thru cross
selling & upselling
Subtract the costs of maintaining the account per
visit.
Add the value of the new referrals by the customer.
Take the present value of this net income stream
with an appropriate discount rate.
Can cost 5 times
as much to
acquire a new
customer …….
vs. keep an
existing one
Costs of new customer
acquisition have
increased dramatically:
A lot of Media + Not much Loyalty
Retaining an additional
5% of customers
each year…
…can increase
profits by 25-35%
Net Present Value
Marketing’s new definition
reflects a broadened focus -
Was focused on short term profitable transactions…


Was focused on capturing new customers….


Now use integrated strategy w/ all points of contact
Was segmented on geo/demographic variables


Now focus on keeping existing customers
Was focused on mass- media advertising......


Now look at customers' lifetime value
Now use all relevant variables, especially behavioral
variables -- usage rate & loyalty
Performance was measured by financial metrics…

Now also measured strategic & customer-satisfaction
metrics
Changed focus--resulted in
restructuring:

Company was organized by product units.....


The marketing department did the marketing…


Now everyone does some marketing
Company was the unit of analysis.........


Now organized by customer segment
Now whole value chain is unit of analysis
Had individual / hierarchical work structures…

Now cross functional teams
Marketing
Next StepID the issues…
1.2 billion
in .4 sec
GOOGLE- CAFFEINE
http://www2.sandbox.google.com/
57 million
MORE
RELEVANT
in .25sec
-On Any Given DayOne can find Issues of:
As it is
Product Quality
Service Quality
Consumer
Confidence/Satisfaction
Value/Pricing Practices
Free/Fair trade
Globalization
Advertising (volume,
veracity, political-correctness)
What the issues are-Depends on Your Perspective:
MarketerIssues = factors
that affect sales
• ConsumerIssue = factors
that affect one’s
sensibilities
Marketing Issues- as delineated
by an old UAA Syllabus…
Marketing performance
The Creation of Customer
Satisfaction & Value
Buyer Behavior
Relationship Marketing
Inter-firm Relationships in
Marketing
Services Marketing & Service
Quality
Competition & Strategy
Marketing and Information
Technology
Marketing Globally
Ethics and Legal Issues in Marketing
More Issues / Other Syllabi
Bad Marketing Ideas
Future Markets
Marketing High
Technology
Product By Design
The Next Big Market
Generational Divide
Asian-American
Consumers
Why Service Stinks
ReMarketing Old Brands
Kamikaze Pricing
The Old Pillars of New
Retailing
Global Marketing In The
New Millennium
Segmenting Global
Markets
The Nation as Brand
Michael Porter’s Big Ideas
Marketing Myopia
Could of used
the text--
“Clashing
Views on
Controversial
Issues in
Marketing”
Question Addressed
 Does Marketing Have Appropriate Boundaries– on what & how it
“sells”?
 Is the practice of Multilevel Marketing (ie Mary Kay/ pyramid schemes)
legitimate?





Has the “Keep It Simple” concept become “All Change, All the Time?”
Is Relationship Marketing a Tenable Concept?
Does Cause-Related Marketing Marketing Benefit All Stakeholders?
Is Mass Customization the Wave of the Future?
Are Outrageous Prices Inhibiting Consumer Access to Life-Sustaining
Drugs?
 Will E-Commerce Eliminate Traditional Intermediaries?
 Is Communications Technology “Death of the Salesman”?
 The New Marketing Paradigm Shift: Are Consumers Dominating the
Balance of Power in the Marketplace?
Fact is--these & most issues…
Are
RE-CURRENT
issuesthat Ebb & Flow
w/ socioeconomic
events
We could- examine
these issues 1 by 1…
Boring!
Too Simple
& Just too
Superficial
“Yes… you seem to
be suffering from a
marketing issue….”
Examining
only
symptoms
--not
diagnosing
the cause
Ergothe Real
Question is….
Ergothe Real
Question is….
Marketing’s “utility”/value derived
from its Facilitation of Exchange!
Willing
to sell
Temporal Utility
Spatial Utility
Transactional Utility
Marketing
Willing
to buy
Key Point:
Keep Marketing in Perspective
Anything/Everything
one does to facilitate
exchange
Whatever impacts
Why- What- Where- When- How
Exchange occurs…
is (or becomes) an Issue…
Marketing Issues
in
Perspective
Marketing - part of Business
& Business - part of Society
Marketing
Business
Society
“Societal
Change”
creates
“issues” for
Business…
which creates
“issues” for
Marketing
Thus- in order to
identify- anticipate- understand
Marketing Issues
in particular
One needs to
identify-anticipateunderstand
Societal Change
in general
Society Defined:
A group of humans broadly
distinguished by:
mutual interests,
participation in characteristic
relationships,
shared institutions, &
a common culture
In the final analysis marketing
strategy is formulated to address…
THUS-
Patterns
of/changes to:
human interests,
relationships,
institutions &
culture…
…become
marketing issues
Hence- our search for marketing
issues begins w/ examination of…
& what better
time to study
Societal Change
…We are living
thru one of the
great periods of
societal
change in the
history of
humankind…
We’re in
midst of
next great
Paradigm
Shift…
… in the way we
live,
communicate,
work, produce
& consume…
"In a time of change, it
is learners who inherit
the future.
--The learned find
themselves well equipped
to live in a world that no
longer exists." — Eric Hoffer
Re-imagine!:
Business
Excellence in a
Disruptive Age
www.tompeters.com
“ -- that shift will accelerate as
technological change
accelerates…”
“It's all so strange and different
that I don't even know what a
superlative for it would be…”
Our Place in Time
August 27, 2009
In Context of: Human Evolution &
Technological Development
YEARS AGO
Hominid Age
2,000,000
Homo Sapiens
100,000 yrs
Tribal Age
25,000 yrs
Agricultural Age
10,000 yrs
Scientific Age
380 yrs (1500-1770)
Industrial Age
180 yrs (1770-1950)
Information Age
70 yrs (1950-to date)
There is–
Something Curious Going On…
Billions of
Years Ago
Physical
Generations Ago
Technological
100,000
Speech
750
Agriculture
500
Writing
400
Libraries
12
Big Bang (MEST)
11.5
Milky Way (Atoms)
8
Sun (Energy)
4.5
Earth (Molecules)
40
Universities
3.5
Bacteria (Cell)
24
Printing
2.5
Sponge (Body)
16
Accurate Clocks
0.7
Clams (Nerves)
5
Telephone
0.5
Trilobites (Brains)
4
Radio
0.2
Bees (Swarms)
3
Television
0.100
Mammals
2
Computer
0.002
Humans, Tools & Clans Coevolution
1
Internet/e-Mail
0
AI & Nano-tech
The
Law of Accelerating Returns
explains why
technology & evolutionary
processes
progress in an exponential
fashion
- observed time
intervals between significant
techno-advances ….
3 million years ago
collective rock throwing; early stone use
1.5 million years ago lever, wedge, inclined plane
500,000 years ago
control of fire
50,000 years ago
bow and arrow; fine tools
5,000 years ago
wheel and axle; sail
500 years ago
printing press with movable type; rifle
60 years ago
commercial digital computers
15 years ago
commercial internet
Not only is “progress”
Exponential
it is
Predictable
Transistor Doublings (2 years)
DRAM Miniaturization =
5.4 years
Processor Performance
(MIP Speed doubles every 1.8 years)
price/performance doubles every 12-18 months
Brad DeLong (2003) noted that memory density… predictably
outgrows microprocessor density…..which predictably outgrows
wired bandwidth….. which predictably outgrows wireless.
Expect: 1st: New Storage Apps, 2nd: New Processing Apps, 3rd: New
Communications Apps, 4th: New Wireless Apps
Given Our Current State of Socio-Cultural
Evolution & Techno development –
What can we predict?
Hominid Age
Homo Sapiens
2,000,000
100,000 yrs
Tribal Age
25,000 yrs
Agricultural Age
10,000 yrs
Scientific Age
380 yrs (1500-1770)
Industrial Age
180 yrs (1770-1950)
Information Age
70 yrs (1950-2020)
Symbiotic Age
30 yrs (2020-2050)
Singularity
≈ 2050
Past-Present & Near Future
Subcycles:

A 30-year cycle, from 1990-2020
–

A 20-year cycle, from 2020-2040
–

LUI network, Biotech, Adaptive Robots, advanced AI
A 10-year cycle, from 2040-2050
–

Evolve from 1st gen "stupid net “ web1.0—to 2nd gen social
net Web 2.0--to-- Web 3.0- intelligent AI embedded net
LUI personality capture, Mature Self-Reconfig./Evolutionary
Computing.
2050: Singularity
–
Progressively shorter 5-, 2-, 1-year tech cycles, each more
autocatalytic, seamless…..
The Symbiotic Age
From GUI to LUI
A time when computers
“speak our language”
A time when our
technologies are very
responsive to our needs
& desires
A time when humans &
machines are intimately
connected & always
improving each other
The Knowledge Navigator
“The future’s
already here.
--It’s just not
evenly
distributed yet.”
― William Gibson
In the long run, we become seamless w/ our machines.
“Technology is becoming organic. Nature is becoming
technologic.”
& Transhumanity
Personality Capture
Robo Sapiens
AIST and Kawada’s HRP-2
“Huey and Louey”
The Symbiotic Age
A time when we will
begin to feel “naked”
without our computer
“clothes.”
UCT in Everything you wearwashable garments
w/ miniaturized inear speakers /solar
cells to provide
energy
technology woven
into fabric
components allowing
many functions to
be almost `built in' to
our bodies, creating a
`second skin‘
UCT Enhanced Jewelry
embed functional
technology into jewelry
& body accessories -rings, necklaces,
earrings, glasses and
watches. - for body adornment and
for more intimate and
discreet
communication,
information gathering
and entertainment.
RFID- everywhere & in everything
SmartCode making
0.25mm chips
target
cost 5-10 cents
..w/
15-20 feet
range
Manufacturing
capacity
10+ billion a year
Invisible, intelligent
wireless tickets
Can be read in
your
pocket at 25
metres
Ultra-wide band
frequency
“One-ticket fits
all”
Ski Lift RFID Swatch passes
RFID – Shopping Tech
Futureintegratedseamless
world of
sensing &
sharing
RFID Activated Interactive
billboards…
On your way to the
store (that is if you
still go to stores)
The i-board will
recognize you &
based on your past
purchase profile –
make you an offer
(based on datamined calculations)
that you can’t
refuse
Interactive B’boards: 1 & 2
Past-Present & Near Future
Subcycles:

A 30-year cycle, from 1990-2020
–

A 20-year cycle, from 2020-2040
–

LUI network, Biotech, Adaptive Robots, advanced AI
A 10-year cycle, from 2040-2050
–

Evolve from 1st gen "stupid net “ web1.0—to 2nd gen social
net Web 2.0--to-- Web 3.0- intelligent AI embedded net
LUI personality capture, Mature Self-Reconfig./Evolutionary
Computing.
2050: Singularity
–
Progressively shorter 5-, 2-, 1-year tech cycles, each more
autocatalytic, seamless, human-centric.
Within a quarter century, nonbiological intelligence will match
the range and subtlety of human
intelligence
The Singularity is Near
Course Organizing Paradigm
“… begin in a
more or less
inductive or
empirical
fashion by
identifying
what all
civilizations
have in
common”
Alvin Toffler, Previews & Premises
(William Morrow & Co. New York, 1983) Page197
All civilizations have:
an
energy
system…
producing goods & services…
a system for distributing those goods &
a method of
services…
Energy, production & distribution are all …
tied together… to form a
TECHNOSPHERE
Every civilization has a
Socio-sphere
consisting of interrelated social
institutions, associations,
reference & affinity groups
All societies have some sort of
communication infrastructure– an
“
All societies operate
within a ‘bio-sphere’
.. have a ‘power-sphere’
-- authority allocated
thru formal & informal
political institutions
& a ‘psycho-sphere’-intimate relationships,
subjectivity,
personality.” (ibid, pg.198)
“Put together these spheres encompass most
all that goes on in any civilization or society”
POWER
SOCIO
PSYCHO
TECHNO
BIO
INFO
Change in
one
sphere
Impacts
other
Spheres
When change concurrently impacts
& ripples thru & across all Spheres…
SOCIO
PSYCHO
BIO
INFO
TECHNO
You have a paradigm shift in the principles &
processes the define a civilization…
Social Wave Theory:
Spheres of society
come together in waves of associated &
intertwined changes.
Great Waves of
Civilization
1st Wave ~8000BC
Hunter Gatherer To Agricultural
Age
2nd Wave ~1750’s
Agricultural Age To Industrial Age
3rd Wave ~1950’s
Industrial Age To Information Age
Toffler's Waves
Agricultural
Industrial
Technological
Key Commodity
Land
Capital
Data
Man-imal
Fossil
Bio-Tech
Widgets
Electromechanical
Digital/Genetic
Production........
Crafted/Self Use
Mass/Exchange
Prosumptive
Distribution.....
Restricted
Mass
Specialized
Marketing
1:1/ Barter
Product-centric
Consumer-Centric
InfoSphere
Interpersonal
Mass-Mediated
Interactive
Spiritual
Contractual
Mutual/Networked
Indiv./Partnership
Corporation/Bureaucratic
Conglomerate/Ad Hoc
Extended
Nuclear
Expanded
Elitist
In Mass/Standardized
Specialized/Life-Long
Inherent
Elected
Semi-direct
Inherited
Divided
Self Defined/Discovered
TechnoSphere
Energy.......
Technology.....
Communication
SocioSphere
Relationships
Business
Family............
Education
PowerSphere
Authority.....
PsychoSphere
Identity.......
1st Wave
2nd Wave
3rd Wave
KEY COMMODITY
LAND
•Basis of
economy
•Life organized
‘round village
•Economy
Decentralized
•Every village
produce most of
its necessities
CAPITAL
•Like land- a zero
sum commodity*
•Necessary for
control of
Production-Labor
& Raw materials
Information
Uniquely
different from
previous key
commodities
What’s so different about
information?
• Expandable- infinity
expansive commodity
• Transportable-
geography no longer matters
• Compressible- can be
summarized, encoded
• *Sharable- Value
increases when shared
Toffler's Waves
Agricultural
Industrial
Technological
Key Commodity
Land
Capital
Data
Man-imal
Fossil
Bio-Tech
Widgets
Electromechanical
Digital/Genetic
Production........
Crafted/Self Use
Mass/Exchange
Prosumptive
Distribution.....
Restricted
Mass
Specialized
Marketing
1:1/ Barter
Product-centric
Consumer-Centric
InfoSphere
Interpersonal
Mass-Mediated
Interactive
Spiritual
Contractual
Mutual/Networked
Indiv./Partnership
Corporation/Bureaucratic
Conglomerate/Ad Hoc
Extended
Nuclear
Expanded
Elitist
In Mass/Standardized
Specialized/Life-Long
Inherent
Elected
Semi-direct
Inherited
Divided
Self Defined/Discovered
TechnoSphere
Energy.......
Technology.....
Communication
SocioSphere
Relationships
Business
Family............
Education
PowerSphere
Authority.....
PsychoSphere
Identity.......
TechnoSphere
-Energy
1st Wave: MANIMAL
winches, wedges, catapults,
winepresses, levers & hoists –
amplified by man & animals
2nd Wave Electromechanical –
“w/ moving parts, belts, bearings
& bolts– clacking & ratcheting
along”
Initial Electro = Hydro & Direct Current
necessitated Local Sourcing
Alternating allowed Central Utilities w/ Long-D Dist.
99
10
0
Production
New Technologies
powered by New
Energy sources
enabled mass
production…
Adam Smith -1776w/ the pin lesson &
concept of “manufacturing”
Applied in 1908 by
Ford in production of
Model T
Characterized by:
Hi energy input
Hi waste pollution
Low skill
Repetitive work
Standardized goods
Centralized control
Division of Labor
The Model T Requires
7,882 tasks requiring:
The Pin:
One craftsman produced
~20 pins/day
“949 strong men
3,338 ordinary men
670 legless
2,637 one legged
2 armless
715 one armed
10 blind men”*
Breaking production into
18 steps10 workers-w/ each
performing 1-2 specialized
tasks produce 4,800
pins/day
*autobiography
3rd Wave Technologies
Intelligent
Integrated
Ecological
Economic
Micro-Electronics
Information
Processing
Bio-Facturing
Nano-Technology
2010
10
4
2020
2030
10
5
10
6
10
7
Toffler's Waves
Agricultural
Industrial
Technological
Key Commodity
Land
Capital
Data
Man-imal
Fossil
Bio-Tech
Widgets
Electromechanical
Digital/Genetic
Production........
Crafted/Self Use
Mass/Exchange
Prosumptive
Distribution.....
Restricted
Mass
Specialized
Marketing
1:1/ Barter
Product-centric
Consumer-Centric
InfoSphere
Interpersonal
Mass-Mediated
Interactive
Spiritual
Contractual
Mutual/Networked
Indiv./Partnership
Corporation/Bureaucratic
Conglomerate/Ad Hoc
Extended
Nuclear
Expanded
Elitist
In Mass/Standardized
Specialized/Life-Long
Inherent
Elected
Semi-direct
Inherited
Divided
Self Defined/Discovered
TechnoSphere
Energy.......
Technology.....
Communication
SocioSphere
Relationships
Business
Family............
Education
PowerSphere
Authority.....
PsychoSphere
Identity.......
Prosumption
Dominant
Economic Sector
Production
1st Wave=
Sector A
Crafted/ for
Self Use
2nd Wave=
Sector B
Mass/ for
Exchange
3rd Wave
Mixed
Prosumption
2nd Wave - vast majority goods & services destined for
exchange (Sector B)
Virtually wiped out goods produced for selfconsumption (Sector A)
Created civilization where almost no one– not even
farmer was self-sufficient
3rd Wave Rise of PROSUMPTION:
“De-Marketization” of the Economy”
1970’s few self
service retail outlets nor
SelfServe
1970
1980
8%
70%
tools, building materials,
medical instruments sold to
consumers
Gas
1980’s DIY explosion
in full force
Tools
<30%
>70%
PG ID
0
~20
3rd
wave characterized
by massive growth of
sector A
million
3rd wave Emergence of
Twinsumption & Twinsumers
www.trendwatching.com/trends
/TWINSUMER.htm
Collaborative filtering =
the method of making
automatic predictions
about the interests of a
user by collecting taste
information from many
users….
Toffler's Waves
Agricultural
Industrial
Technological
Key Commodity
Land
Capital
Data
Man-imal
Fossil
Bio-Tech
Widgets
Electromechanical
Digital/Genetic
Production........
Crafted/Self Use
Mass/Exchange
Prosumptive
Distribution.....
Restricted
Mass
Specialized
Marketing
1:1/ Barter
Product-centric
Consumer-Centric
InfoSphere
Interpersonal
Mass-Mediated
Interactive
Spiritual
Contractual
Mutual/Networked
Indiv./Partnership
Corporation/Bureaucratic
Conglomerate/Ad Hoc
Extended
Nuclear
Expanded
Elitist
In Mass/Standardized
Specialized/Life-Long
Inherent
Elected
Semi-direct
Inherited
Divided
Self Defined/Discovered
TechnoSphere
Energy.......
Technology.....
Communication
SocioSphere
Relationships
Business
Family............
Education
PowerSphere
Authority.....
PsychoSphere
Identity.......
The INFOSPHERE
1st Wave
2nd Wave
3rd Wave
Interpersonal
Mass
Interactive
Virtual
Face to face
Mediated
1:1
1:Many
Networking: many-to-many
Augmented by:
•Listening post
•Distance Runner
•Town Crier
•Pigeon
•Pony Express
•Newspaper
•Magazine
•Film
•Radio
•TV
Internet
•WiFi
•Cellular
•Satellite
Any 1:Every 1
Media Evolution
From Mass Mind to Blip Culture
“Instead the masses receiving
the same messagesmaller fragmented
groups/individuals send &
receive their own thoughts &
images” …(ergo the BLOG)
“On a personal level .. besieged
by blips… Info-Blips that are
contradictory & unrelated”
Toffler- 1980
Toffler's Waves
Agricultural
Industrial
Technological
Key Commodity
Land
Capital
Data
Man-imal
Fossil
Bio-Tech
Widgets
Electromechanical
Digital/Genetic
Production........
Crafted/Self Use
Mass/Exchange
Prosumptive
Distribution.....
Restricted
Mass
Specialized
Marketing
1:1/ Barter
Product-centric
Consumer-Centric
InfoSphere
Interpersonal
Mass-Mediated
Interactive
Spiritual
Contractual
Mutual/Networked
Indiv./Partnership
Corporation/Bureaucratic
Conglomerate/Ad Hoc
Extended
Nuclear
Expanded
Elitist
In Mass/Standardized
Specialized/Life-Long
Inherent
Elected
Semi-direct
Inherited
Divided
Self Defined/Discovered
TechnoSphere
Energy.......
Technology.....
Communication
SocioSphere
Relationships
Business
Family............
Education
PowerSphere
Authority.....
PsychoSphere
Identity.......
The SocioSphere
Element
1st wave
2nd wave
3rd wave
Relationships Spiritual
Contractual Mutual
Family
Extended
Nuclear
Expanded
Education
Elitist
Mass/
LifeLong
Standardized
Business
Ind./Partn.
Corp.
Conglom
Relationships
W/ Divorce of Production &
Consumption—
Relationships became set
of transactions
Society not based on
kinship, friendship, tribal
allegiances- but on
contracts
2nd wave emergence of the
Company Man
The Family:
From Mother Hubbard
to Ozzie & Harriet to Big Brother
1st Wave: Extended Family--
Aunts & Uncles; Grand Pa & Ma: Inlaws & In-breds under one roof
2nd Wave: Nuclear Norm
(working Pa, housekeeping Ma + 2kids, a dog &
BBQ) everybody else own unit or
institutionalized
3rd Wave: Aggregate HH’s:
Mother-Other; Poly-Parents By 1980’s:
<7% US-HH’s nuclear; 20% Single, 1:7 single Mom
(1:4 Urban); in one Chicago neighborhood 86
different adult configurations…
Education:
From Athens, to Ohio State to Phoenix
1st Wave: For
Privileged
2nd Wave: For
Masses:
w/ Standardized
Curricula Texts & Tests w/
Bell Curve
3rd Wave: For
Individual
Life-Long/
Personalized in Time &
Mode of delivery
Business
From Dad & Sons to GM to AOL-Time-LifeWarner-Turner…
1st Wave: Shopkeepers &
Partnerships
2nd Wave: The Corporation &
Franchise
9-5, Strict Labor – Management hierarchy
3rd Wave: Resurgence of small
business & Emergence Global
Alliances
Horizontally, vertically & strategically integrated
Conglomerates— thru leveraged buyouts, hostile takeovers; out-sourcing, networking & symbiotic alliances
Ad-Hocracy replaces bureaucracy
Flex—Time, Task & Title
Many bottom-lines
Toffler's Waves
Agricultural
Industrial
Technological
Key Commodity
Land
Capital
Data
Man-imal
Fossil
Bio-Tech
Widgets
Electromechanical
Digital/Genetic
Production........
Crafted/Self Use
Mass/Exchange
Prosumptive
Distribution.....
Restricted
Mass
Specialized
Marketing
1:1/ Barter
Product-centric
Consumer-Centric
InfoSphere
Interpersonal
Mass-Mediated
Interactive
Spiritual
Contractual
Mutual/Networked
Indiv./Partnership
Corporation/Bureaucratic
Conglomerate/Ad Hoc
Extended
Nuclear
Expanded
Elitist
In Mass/Standardized
Specialized/Life-Long
Inherent
Elected
Semi-direct
Inherited
Divided
Self Defined/Discovered
TechnoSphere
Energy.......
Technology.....
Communication
SocioSphere
Relationships
Business
Family............
Education
PowerSphere
Authority.....
PsychoSphere
Identity.......
Meta-convergence:
“the tightening of connections among
spheres that have hitherto been more
independent”
"Culture, religion, politics,
environment, ethics, are all
going to interpenetrate one
another to an extent never
before seen, and they will,
in turn, penetrate business
in all sorts of strange new
ways…“
Riding the third wave: A conversation with Alvin
Toffler
The 21st Century- Spherical
Meta Convergence
-Religious
&
Secular Groups
-Industry
&
Business
Associations
-NGO’s-
IMF,
WTO, World Bank
Ecological impact
Labor conditions
Pollution
Health & safety concerns
Human rights abuses
Child labor
Working in-w/ anti-democratic regimes
Globalization
Corporate, &
activist –
Shareholder
organizations
-Special
-Local,
State &
National Gov’t
Agencies
Interest &
Affinity groups
ILO-list 450+ Activist
Org. W3-sites
“promulgating policy
initiatives”
~ie~
Stark Contrast w/ 2nd wave Mantra:
The only business of business
is business--Milton Friedman
A successful business satisfies enough
customers at a high enough price so as to
return a profit to those who have invested
in the entrepreneurial activity…
…to the extent that customers express
satisfaction in a product or a service, in
continued purchases, the producer
serves the "public interest."
Toffler's Waves
Agricultural
Industrial
Technological
Key Commodity
Land
Capital
Data
Man-imal
Fossil
Bio-Tech
Widgets
Electromechanical
Digital/Genetic
Production........
Crafted/Self Use
Mass/Exchange
Prosumptive
Distribution.....
Restricted
Mass
Specialized
Marketing
1:1/ Barter
Product-centric
Consumer-Centric
InfoSphere
Interpersonal
Mass-Mediated
Interactive
Spiritual
Contractual
Mutual/Networked
Indiv./Partnership
Corporation/Bureaucratic
Conglomerate/Ad Hoc
Extended
Nuclear
Expanded
Elitist
In Mass/Standardized
Specialized/Life-Long
Inherent
Elected
Semi-direct
Inherited
Divided
Self Defined/Discovered
TechnoSphere
Energy.......
Technology.....
Communication
SocioSphere
Relationships
Business
Family............
Education
PowerSphere
Authority.....
PsychoSphere
Identity.......
Origins of our identity
Our individuality = result of
Nature & Nurture
War; civil unrest; social
movements
Political persons & events;
economic swings
Scientific/Technological
discoveries & advances
Tragedies: Natural & Manmade
Our commonality =
results from our
shared culture &
experience
Entertainment: Movies, TV,
Music; artists, celebrities
Clothing styles; Lifestyle
trends, Fads
Generational
Imprint as we
Come of age
Each generation molded by world
events that occur during its
formative years.
… distinct historical experiences
create characteristics that stay w/
people thruout rest of their lives
Generational Marketing: Reaching the Hearts and Minds of Consumers
http://circman.com/ar/marketing_generational_marketing_reaching/
Values are shaped by:
Generational Life Experiences
Called “Markers”
 Events
 Culture
 Politics
 Economy
 Technology
 Personalities
February 08, 2005
Lax Natarajan & Sully Romero Ordonez
128
•Generational
mindsets … are major
factors in determining
what & how
consumers buy…
Common
Experiences
Common
AIO’s, values,
tastes, style...
The
notion a group of people
bound together by sharing
experience of common historical
events 1st introduced by Karl
Mannheim - early 1920s
Common
responses
to marketing
mix
variables
Generations Variously Named & Dated:
1.
2.
3.
4.
5.
6.
7.
Matures – < 1946
Baby Boomer – 1946-1953
Generation Jones – 1954-1964
Generation Rerun – 1965-1975
Generation Xceptional – 1976-1986
Generation M – 1987-1995
Millennials – 1996 and beyond
Depression cohort (1912 to 1921)
THE GI GENERATION: 1901-1924
THE SILENT GENERATION: 1925-1942
BABY BOOMERS: 1943-1960
GENERATION X: 1961-1981
GENERATION Y: 1982-PRESENT
WWII cohort (1922 to 1927)
Post-war cohort (1928 to 1945)
Baby Boomer cohort #1 (1946 to 1954)
Baby Boomer cohort #2 1955 to 1965)
Generation X cohort (1965 to 1976)
N Generation cohort (1977 to date)
Waves of change affect
different generations in
different ways
Rode the Last
Wave
GI
Silent
Caught
Between
Waves
Grow Up w/
New Wave
Gen
X
Depression
War Baby
1925
1935
1945
Boomer
1955
1960
1965
1975
Riding
the wave
Gen Y
1985
2000
For Senior Generations
Fully developed 2nd wave Psyche
rd
before 3 Wave
Depression cohort (born from 1912 to 1921)

Psyche: strive for financial security, risk
averse, waste not want not attitude,
strive for comfort
WWII cohort/ GI Gen. (born from 1922 to 1927)

Psyche : the nobility of sacrifice for the
common good, patriotism, team player
Post-war cohort/ Silent Gen. (born from 1928 to
1945)
 Psyche : conformity, conservatism,
traditional family values
February 08, 2005
Lax Natarajan & Sully Romero Ordonez
134
-- Boomers: caught in cross current of
waves- sensed “The times they were
a Changing”
Baby Boomer cohort #1 (born 1946
to 1954)

Psyche : experimental,
individualism, free spirited,
social cause oriented
Baby Boomer cohort #2 (born 1955
to 1965)

Psyche : less optimistic, distrust
of government, general cynicism
For the X &Y generations:
Increasingly weaned in & imprinted
on post-industrial “3rd wave” society
Gen X cohort
Psyche : quest for emotional
security, independent,
informality
(Y) Millennium Generation
Psyche : quest for physical
security & safety, extreme
patriotism, heightened fears,
acceptance of change
February 08, 2005
Lax Natarajan & Sully Romero Ordonez
138
February 08, 2005
Lax Natarajan & Sully Romero Ordonez
139
As Society Changes…
Business must
necessarily adjust
Marketing
issues…
consequently
arise
We are beginning to feel the force
of next great wave of change---
“We are in the midst of
redefining our basic
ideas about what
enterprise &
organization & even
being human are
about -- how value is
created -- how careers
are pursued”-2006
http://www.tompeters.com/reimagine/index.php
Likely jobs w/in next 10 years
•
•
•
•
•
Director of Emerging Thought
Chief Imagination Officer
Hacker Relations Manager
Human Interface Manager
Valuer of Intangible Assets
February 08, 2005
Lax Natarajan & Sully Romero Ordonez
Have
Existed
since
2003
142
Our Seminar:
… will explore each
sphere
ascertain what
changes are afoot
and– as a
consequence–
delineate what
“marketing” issues
have arisen/will
arise…
Identifying
Marketing
Issues by
Sphere
Sphere
Techno
Info
Socio
Psycho
Focus
Production & Distribution
CommunicationInformation Systems
Social Relationships &
Institutions
Identity/ Values
Marketing Issues:
Customization &
Customer-ization
Marketing Communication;
Internal & external- channels &
strategies
Changing consumer livingworking patterns; social,
professional & corporate
networking
Consumer values; sociopsychographic segments
Power
Governing Institutions &
Allocation of Authority
Business & Marketing
Regulation; Corporate
Citizenship & Social
responsibility
Bio
Human - Environment
Condition/ Relationship
Societal/Green Marketing