John.Wiley.And.Sons.Marketing.Insights.From.A.To.Z.eBook-LiB - phần 10

Sergio Zyman, The End of Advertising As We Know It New York: John Wiley & Sons, forthcoming—2003.. Regis McKenna, Total Access: Giving Customers What They Want in an Anytime, Anywhere Wo

rends in Marketing Thinking and Practice

Here are the main marketing trends that I see:

• From make-and-sell marketing to sense-and-respond marketing.

Your company will perform better if you view the marketing challenge as that of developing a superior understanding of your customer needs rather than as simply pushing out your products better.

• From focusing on customer attraction to focusing on customer

retention Companies need to pay more attention to serving

and satisfying their present customers before they venture in

an endless race to find new customers Companies must move from transaction marketing to relationship marketing.

• From pursuing market share to pursuing customer share The

best way to grow your market share is to grow your customer share, namely to find more products and services that can be sold to the same customers.

• From marketing monologue to customer dialogue You can

create stronger relationships with customers by listening to and conversing with them than by only sending out one- way messages.

• From mass marketing to customized marketing The mass

market is splintering into mini-markets and your company now has the capability of marketing to one customer at a time.

• From owning assets to owning brands Many companies are

be-ginning to prefer owning brands to owning factories By ing fewer physical assets and outsourcing production, these companies believe they can make a greater return.

own-• From operating in the marketplace to operating in cyberspace.

Smart companies are developing a presence online as well as off-line They are using the Internet for buying, selling, re- cruiting, training, exchanging, and communicating.

• From single-channel marketing to multichannel marketing.

Companies no longer rely on one channel to reach and serve all their customers Their customers have different preferred channels for accessing the company’s products and services.

• From product-centric marketing to customer-centric marketing.

The sign of marketing maturity is when a company stops cusing on its products and starts focusing on its customers.

fo-These trends will affect different industries and companies at different rates and times Your company must decide where it stands with respect to each marketing trend.

182 Marketing Insights from A to Z

The marketing job is to create, deliver, and capture customer value What is value? Value primarily is the putting together of the right combination of quality, service, and price (QSP) for the target market Louis J De Rose, head of De Rose and Associ-

ates, Inc., says: “Value is the satisfaction of customer ments at the lowest possible cost of acquisition, ownership, and use.”

require-Michael Lanning holds that winning companies are those that

develop a competitively superior value proposition and a superior

value-delivery system A value proposition goes beyond the company’s

positioning on a single attribute It is the sum total of the experience that the product promises to deliver backed up by the faithful deliv- ery of this experience.

Jack Welch put this challenge to GE: “The value decade is upon us If you can’t sell a top quality product at the world’s lowest price, you’re going to be out of the game.”

McDonald’s used to say that it is in the fast food business Later

it said that it is in the quick service business Today it says that it is in the value business.

A company’s ability to deliver value to its customers is closely

tied with its ability to create satisfaction for its employees and other stakeholders.

Value ultimately depends on the perceiver A child came upon three masons and asked, “What are you doing?” “I’m mixing mor- tar,” said the first “I’m helping fix this wall,” said the second The third one smiled: “We’re building a cathedral.”

Smart companies not only offer purchase value but also offer use

value as well You invest $30,000 in an automobile and you expect

the dealer to help with respect to maintenance, repair, and answering

a host of questions Ryder, the truck leasing company, not only rents

a truck but provides a free book on how to pack and move Nestlé not only sells baby food but has a 7/24 service to answer parents’ questions about baby food.

Companies worry about spending more money to satisfy their

customers They need to distinguish between value-adding costs and

non-value-adding costs A hotel may consider adding afternoon

bed-turning service that would raise the cost per room by $2 Before ing this, it should survey whether its customers would be willing to pay $2 for this service If the answer is no, then bed-turning service is

do-a non-vdo-alue-do-adding cost But if the hotel puts do-an ironing bodo-ard do-and iron in each room at a cost of $2 and guests think it is worth $3, then this would be a value-adding cost.

184 Marketing Insights from A to Z

ord of Mouth

No ad or salesperson can convince you about the virtues of a product

as persuasively as can a friend, acquaintance, past customer, or pendent expert Suppose you are planning to buy a PDA (personal digital assistant) and you have seen all the ads for Palm, HP, and Sony You even go to examine them at Circuit City and listen to the salesperson You’re still undecided and don’t buy Then a friend tells you how Palm has changed her life That does it Or you read a col- umn by an expert who tested and describes each one and recom- mends Palm.

inde-Companies would love to trigger word-of-mouth campaigns surrounding their new product launches High-tech firms send their new products to well-respected experts and opinion leaders praying for strong editorial endorsements Hollywood hopes for a good Roger Ebert review.

Marketers advertise their new product’s benefits hoping that they would be believed and carried by word of mouth But few know how to use experts and their customers to bring in new customers.

According to word-of-mouth expert Michael Cafferky: “Word of mouth marches proudly but quietly onward as its Madison Avenue cousins try in vain to replicate its dramatic results .

Word of mouth is the brain’s low-tech method of sorting through all the high-tech hype that comes to it from the market place.”

Companies have been turning increasingly to word-of-mouth marketing They seek to identify individuals who are early adopters, vocal and curious, and with a large network of acquain- tances When a company brings its new product to the attention of such influentials, the influentials carry on the rest of the work as

“unpaid salespeople.”

Some companies hire people to parade their new products in public areas Someone might park a new Ferrari at a busy intersec- tion A stranger might ask you to take her picture; she hands you a new phone with a built-in camera, leading to an immediate conversa- tion Someone in a bar answers his new videophone, and everyone

wants to know more about it In March 1999, the Blair Witch

film-makers hired 100 college students to distribute missing person flyers

in youth culture hubs to promote the film.

Today we see the rise of “aggregated buzz” in such forms as gat, which collects New York restaurant reviews from diners (not restaurant critics) or epinions, where people voice their opinions of products Soon consumers will be able to tell the good guys from the bad guys and no longer have to rely on advertising.

Za-186 Marketing Insights from A to Z

There are two reasons to include zest in this marketing lexicon The first, and more important, reason is that a Z word is necessary to jus- tify the book’s title.

The second is that a marketer cannot be effective without zest Zest is defined as hearty enjoyment, gusto, enthusiasm for life This attitude is epitomized by the way certain CEOs practiced their mar- keting One is Richard Branson of Virgin, to whom marketing is the fun of creating new, better, and more satisfying solutions for people

as they interact with everyday products and services Another is Herb Kelleher, the former CEO of Southwest Airlines, who thoroughly en- joyed working at his airline and hired only people who would simi- larly enjoy making customers happy Hire only marketers who have a zest for life Otherwise send them into accounting.

1 Lester Wunderman, Being Direct: Making Advertising Pay (New

York: Random House, 1996).

2 Peter F Drucker, Management: Tasks, Responsibilities, Practices

(New York: Harper & Row, 1973), pp 64–65.

3 See Rolf Jensen, The Dream Society: How the Coming Shift from

Information to Imagination Will Transform Your Business (New

York: McGraw-Hill, 1999).

4 See David Ogilvy, Confessions of an Advertising Man (New York:

Atheneum, 1988).

5 Ibid.

6 See Stan Rapp and Thomas L Collins, Beyond MaxiMarketing:

The New Power of Caring and Daring (New York: McGraw-Hill,

1994).

7 Sergio Zyman, The End of Advertising As We Know It (New

York: John Wiley & Sons, forthcoming—2003).

8 Regis McKenna, Total Access: Giving Customers What They Want

in an Anytime, Anywhere World (Boston: Harvard Business

School Press, 2002).

9 Heidi F Schultz and Don E Schultz, “Why the Sock Puppet Got

Sacked,” Marketing Management (July–August 2001), pp 35–39.

10 Richard D’Aveni with Robert Gunther, Hypercompetitive

Rival-ries: Competing in Highly Dynamic Environments (New York:

Free Press, 1995).

11 Thomas H Davenport and John C Beck, The Attention

Econ-omy: Understanding the New Currency of Business (Boston:

Har-vard Business School Press, 2001).

12 Thomas J Peters and Robert H Waterman Jr., In Search of

Ex-cellence: Lessons from America’s Best-Run Companies (New York:

Harper & Row, 1982).

13 James C Collins and Jerry I Porras, Built to Last: Successful Habits

of Visionary Companies (New York: HarperBusiness, 1994).

14 Michael Treacy and Fred Wiersema, The Discipline of Market

Leaders: Choose Your Customers, Narrow Your Focus, Dominate Your Market (Reading, Mass.: Addison-Wesley, 1995).

15 Arie De Geus, The Living Company (Boston: Harvard Business

School Press, 1997).

16 Jim Collins, Good to Great: Why Some Companies Make the Leap

and Others Don’t (New York: HarperBusiness, 2001).

17 See Michael E Porter, Competitive Strategy: Techniques for

Ana-lyzing Industries and Competitors (New York: Free Press, 1980);

and see his Competitive Advantage: Creating and Sustaining

Su-perior Performance (New York: Free Press, 1985).

18 Theodore Levitt, The Marketing Mode: Pathways to Corporate

Growth (New York: McGraw-Hill, 1969).

19 Anita Roddick, Body and Soul: Profits with Principles, the

Amaz-ing Success Story of Anita Roddick and the Body Shop (New York:

Crown, 1991).

20 Gregory S Carpenter and Kent Nakamoto, “Consumer

Prefer-ence Formation and Pioneering Advantage,” Journal of

Market-ing Research (August 1989), pp 285–298.

21 Jan Carlzon, Moments of Truth (Cambridge, Mass.: Ballinger

Pub Co., 1987).

22 Drucker, op cit.

190 Notes

23 Richard Forsyth, “Six Major Impediments to Change and How

to Overcome Them in CRM,” CRM-Forum (June 11, 2001).

24 Frederick Newell, Why CRM Doesn’t Work: The Coming

Empow-erment Revolution in Customer Relationship Management (New

York: Bloomberg Press, forthcoming—2003).

25 See Frederick Reichheld, The Loyalty Effect: The Hidden Force

Be-hind Growth, Profits, and Lasting Value (Boston: Harvard

Busi-ness School Press, 1996).

26 Appeared in www.1-to-1marketing.com online Also see Don

Pep-pers and Martha Rogers, The One to One Future: Building

Currency/Doubleday, 1993).

27 Seth Godin, Permission Marketing: Turning Strangers into

Friends, and Friends into Customers (New York: Simon &

Schus-ter, 1999).

28 Theodore Levitt, “Marketing Success through Differentiation of

Anything,” Harvard Business Review (January–February 1980),

pp 83–91.

29 Jack Trout with Steve Rivkin, Differentiate or Die: Survival in

Our Era (New York: John Wiley & Sons, 2000).

30 Gregory S Carpenter, Rashi Glazer, and Kent Nakamoto,

“Meaningful Brands from Meaningless Differentiation: The

De-pendence on Irrelevant Attributes,” Journal of Marketing

Re-search (August 1994), pp 339–350.

31 Hal Rosenbluth, The Customer Comes Second: and Other Secrets

of Exceptional Service (New York: Morrow, 1992).

32 John P Kotter and James L Heskett, Corporate Culture and

Per-formance (New York: Free Press, 1992).

33 B Joseph Pine II and James H Gilmore, The Experience

Econ-omy: Work Is Theatre and Every Business a Stage (Boston: Harvard

Business School Press, 1999).

34 Hermann Simon, Hidden Champions (Boston: Harvard Business

Notes 191

35 Adrian J Slywotzky and Richard Wise, “The Growth Crisis—and

How to Escape It,” Harvard Business Review (July 2002), pp.

73–83.

36 See Philip Kotler, Marketing Management, 11th edition (Upper

Saddle River, N.J.: Prentice Hall, 2003), pp 685ff.

37 See Jean-Philippe Deschamps and P Ranganath Nayak, Product

Juggernauts: How Companies Mobilize to Generate a Stream of Market Winners (Boston: Harvard Business School Press, 1995).

38 See Gary Hamel, Leading the Revolution (Boston: Harvard

Busi-ness School Press, 2000).

39 See Akio Morita, Made in Japan: Akio Morita and Sony (New

York: Dutton, 1986).

40 See James Champy, Good to Great: Why Some Companies Make

the Leap—and Others Don’t (New York: HarperBusiness, 2001).

41 Howard R Bowen, Social Responsibilities of the Businessman

(New York: Harper & Row, 1953), p 215.

42 Robert Lauterborn, “New Marketing Litany: 4P’s Passe;

C-Words Take Over,” Advertising Age (October 1, 1990), p 26.

43 Paco Underhill, Why We Buy: The Science of Shopping (New York:

Simon & Schuster, 1999).

44 Ernest Dichter, Handbook of Consumer Motivations: The

Psychol-ogy of the World of Objects (New York: McGraw-Hill, 1964).

45 See Kevin Lane Keller, Strategic Brand Management (Upper

Sad-dle River, N.J.: Prentice Hall, 1998), pp 317–318.

46 Rosabeth Moss Kanter, When Giants Learn to Dance (New York:

Simon & Schuster, 1989).

47 Al Ries and Jack Trout, Positioning: The Battle for Your Mind

(New York: Warner Books, 1982).

48 Michael Treacy and Fred Wiersema, The Discipline of Market

Leaders (Reading, Mass.: Addison-Wesley, 1994).

49 Fred Crawford and Ryan Mathews, The Myth of Excellence: Why

Great Companies Never Try to Be the Best at Everything (New

York: Crown Business, 2001).

192 Notes

50 Carl Sewell and Paul B Brown, Customers for Life: How to Turn

That One-Time Buyer into a Lifetime Customer (New York:

Dou-bleday, 1990).

51 Ram Charan and Noel M Tichy, Every Business Is a Growth

Busi-ness: How Your Company Can Prosper Year after Year (New York:

Times Business/Random House, 1998).

52 Al and Laura Ries, The Fall of Advertising and the Rise of PR

(New York: HarperBusiness, 2002).

53 See the 1998 PIMS study reported in CampaignLive, May 3,

1999, Haymarket Publishing, U.K.).

54 Quoted in “Trade Promotion: Much Ado about Nothing,”

Promo (October 1991), p 37.

55 See Hanish Pringle and Marjorie Thompson, Brand Soul: How

Cause-Related Marketing Builds Brands (New York: John Wiley

& Sons, 1999); Richard Earle, The Art of Cause Marketing

(Lin-colnwood, Ill.: NTC, 2000).

56 See the discussion of sponsorship in Sergio Zyman, The End of

Advertising As We Know It (New York: John Wiley & Sons,