Presentation in Haaga-Helia 08042013 about the new marketing paradigm
-
Upload
jussi-hirvela -
Category
Business
-
view
201 -
download
3
description
Transcript of Presentation in Haaga-Helia 08042013 about the new marketing paradigm
Challenging Kotler’s 4 P’s with 4 (+3) E’s
The New Marketing Paradigm
Jussi Hirvelä, Luja GroupDirector of Marketing and Communications
8.4.2013
Haaga-Helia
Third Generation Family Enterprise- 60 Years of Experience
• Founder of Luja, Feliks Isotalo, came fromAlahärmä. With his Ostrobothnian ‘sisu’ –guts and perseverance – this formerfarmer, policeman and agricultural dealermade Lujabetoni he established in 1953grow into a successful business.
• Feliks Isotalo tried out courageous newideas and developed himself new productsand machinery. With his hard work andexample he created the Luja values,abiding by which the next generation hasexpanded Luja, making it one of thebiggest Finnish construction groups, ahighly competent Finnish familyenterprise.
1909-1988
3
Turnover MEUR 457Staff 1512
43 places of business
31 locations
Turnover 313 M€- New building- Reconstruction- Housing- Business premises
Turnover MEUR 18- Dry construction materials
Turnover 126 M€- Frames- Slabs- Façades- Agricultural elements- Precast concrete- Poles- Railway sleepers- Luja stone houses- Other concrete products
Affiliate- Precast concrete in Sweden
- Precast concrete in Russia
One of the BiggestConstruction Groups in Finland
Dother comp.
- Building company in Lahti
4
Luja Brand Hierarchy
It is nowadays verydifficult and expensiveto build brands. So, weuse one common Luja
umbrella brandwhenever it ispossible.
Brand
The Construction ofLuja Brand
How we look
What wesay
ServiceExperience
ProductExperience
”Promise” ”Delivery”
Luja Promises
So
cie
ty
Employees Customers
En
viro
nm
en
t
Brand is Luja’s Management Tool:Company interacts with stakeholders
through brand
StakeHolders
Staff
Communications
Quality
Strategy
Service
Production
Delivering thepromise
““To do BRANDING is not the goal To do BRANDING is not the goal —— to use BRANDING to create to use BRANDING to create
breakthroughs for the organization and the people it serves is the goal.breakthroughs for the organization and the people it serves is the goal.””
Leading Business Through Brand= Brand Directing
BrandDirecting
Staff Customers
StrategyTh
e em
plo
yees
hav
e to
und
erst
and
and
acce
pt the
str
ateg
yThe custom
er value capsu
led to the
strategy has to be com
municated to
customers
If the brand is the promise, employeesare the promise keepers.
Summa summarum:Brand in B2B -Business
A brand embodies the organizationA brand embodies the organization’’s promises promise
to consistently deliver a specific set ofto consistently deliver a specific set of
features, benefits and services to the buyer. Iffeatures, benefits and services to the buyer. If
the brand cannot influence choice and bringthe brand cannot influence choice and bring
differentiated experience, it is not a brand; it isdifferentiated experience, it is not a brand; it is
just a corporate identity.just a corporate identity.
BRAND = PROMISE + DELIVERY =TRUST & EXPERIENCE
BRAND = PROMISE + DELIVERY =TRUST & EXPERIENCE
“The Customer Experience isthe next competitivebattleground”
Jerry Gregoire, Dell Computers
Product Experience
The Marketing Mix Paradigm Shift4P -> 4E
“Customer experience is the sum of allinteractions between a customer and an
organization .
It is a blend of the organization’s physicalperformance, the senses stimulated and emotions
evoked, each measured against customerexpectations across all customer touchpoints.
All this is lead by brand promises”
The Definition of CustomerExperience
barely
acceptable
service
experience
No effect Normal level
Source: Experiential Marketing, Bernd H. Schmitt
How a better than average serviceexperience is affecting to customer
satisfaction and brand value
Increases customer
satisfaction
& brand value
Intolerable
service
experience
Good service
experience
Destroys customer
satisfaction
& brand value
Particularly
good service
experience
Priceless
service
experience
Not
acceptable
service
experience
5 steps to a ‘Branded Customer Experience’
l Achieve a superior understanding of what yourtargeted customers value
l Apply that understanding to shape a trulydifferentiated customer experience that will eclipsethe competition
l Make everyone a brand manager
l Make promises that you are sure your processescan exceed
l Measure and monitor. Anticipate what customerswill value to sustain consistency of delivery in thefuture
Source::[email protected]
Factors influencing on customer satisfaction..And where the focus is in construction industry
Customer
Constructor
Core Productsand Services
Emotional factors
Interaction
Support
Technical performance Functionalquality
Technicalquality
The quality ofrelationship
Customer Facings areCritical Experience Factors
Education for Customer
FacingSituations
Conversation
Smile Greeting
Asking
Adding Experience Factor Means MoreProfit
Paulig Frezza
Brand
Hesburger
Service
Porvoon
paahtimo
Experience
Pirkka Coffee
Commodity
25 snt 4.90 €
Experience Economy
Kahvipaketin ja kahvilassa ostetun kahvikupin reaalihintakehitys, 1994=100
Earnings model Price
The Marketing Mix Paradigm Shift4P -> 4E
ProductExperience
Making Money
You can’t make good profit withcommodities anymore in this transparent
economy. But by adding some differentiatedservice or experience to the product.
Sometimes you have to give your productsor services for free. But then you have to
figure out some other way to earn themoney. Think: Is there some hidden value in
your business that you can liquidate
Some examples of the new earnings model
”Turn key” Luja
Brick House - profit-% : ++
Luja concretebricks -
profit-% : --
Some examples of the new earnings model
Luja ready mix
concrete -profit-% : -
Luja ready mix
concrete in some exact time frame -
profit-% : +
Some examples of the new earnings model
Not selling Luja-bricks,
but speed and easiness
Some examples of the new earnings modelSome examples of the new earnings model
Not selling concrete
piles, but piling (with a
patented method)
Some examples of the new earnings model
Google searchengine and otherGoogle-software
are free for the users
Google gets the profit
by selling contactsand customer profiles
to companies
Digital media vs.. ”traditional” media
�A Typical Finnish consumerreceives more than 3000 separatecommercial messages every day
�People are nowadays more orless immune to advertising
�A Typical Finnish consumerreceives more than 3000 separatecommercial messages every day
�People are nowadays more orless immune to advertising
Place Easy to find
The Marketing Mix Paradigm Shift4P -> 4E
ProductExperience
Earnings model Price
Easy to Find - Good Findability
• How easily a particular product, brand or person hasbeen found by chance or through the application
process (in web mainly)
• Product and the information should be found in thecorrect places at the right time - right press, stores and
other media, and more and more real shopping placesonline.
• We have to know what kind of information ourcustomers are seeking to support their buying process?
Customer Experience
retail internetvoice
Browsing 54%additional information CC
56%
purchase 79%
AwarenessAd / wom /www 66%
Not only easy to find - but easyto buy as well
Developing the Visibility andFoundability of Luja in Web
SEARCHENGINEOPTIMATEDOWN PAGES
PAID WITHMONEY
PAID WITHDOROSAL SKIN
EARNED BYACTION
Google AdWordsBanners
BlogsVideos, PicturesSocial Media Activity
World is transparent
www.luja.fi
www.lujatalo.fi
www.lujakoti.fi
www.lujabetoni.fi
www.lujakivitalo.fi
www.lujabetong.se
www.lujabeton.ru
www.fescon.fi
Luja WWW-pages
Developing the searchengine optimisation is a
continuous process!!
In a hyper transparent world, you arewhat you contributed… and Google
filters it for everyone
The most effective media today
67%
1977
95%
2007
The number of consumers (%) who think that the
recommendation of friends, relatives and opinion
leaders as a key factor in selecting a product
The importance of recommendations hasincreased as a set for purchase decision
Source:: Roper Trend Research 2008
Slide-share
Youtube
Google+
Wordpress
Flickr
Own
pages
The Architecture of Social Media @ Luja
AdWords
Social media
The optimazionof own pages
Searching readymixes bygoogling
Liikenteen lähteenä Google / valmisbetoni
Companies are medias of own their own
Red Bull is turning from a energy drink
brand into a media brand
Content marketing is one of the hottesttrends in marketing at the moment
• Content marketing means the generation andtargeted distribution of unique content that isrelevant and valuable to the audience
• Quite often the value to the audience isentertainment
• By leveraging social media, marketers candistribute this content where they know theircustomers spend time online, driving resultsfor SEO, brand awareness, and the bottom line
The architecture of Lujakoti campaign
Radio advertising promoting campaign site
Banners at housing portals
Film was embedded to www.lujakoti.fi
Viralfunctionality
Visits at Lujakoti-web site in thebeginning of the campaign
Recommending the campaign site
Came to site because of recommendations
The ”return-%” of recommendations
The viral effectin Lujakoti-campaign
During the first 11 days
Effectiveness
Action Impact factor
Reading text 1 x
Watching video 3 x
Clicking forward 4 x
Thumping up 4 x
Sharing a video 10 x
Embedding a video 20 x
Making a video 100 x
Source:: Randall Rothenberg, Now Media
Engaging customers is effective marketing
Engagement
The Marketing Mix Paradigm Shift4P -> 4E
ProductExperience
Earnings model Price
Place Easy to find
Promotion
The (or one of the..) new definition ofmarketing
Marketing is the adaptiveprocess by which firms
engage their customers andpartners to jointly create,
deliver, and sustain value forall stakeholders.
Marketing Rules are ChangingMarketing Rules are Changing
Giving for freeCharging for entry – block entry
EngagementInterruption
Return on involvementReturn on marketing investment
Engaging to build relationshipsPromotion for immediate action
One-to-manyMany-to-one
Interactive conversationOne way message
Pulling client to the messagePushing message to client
It’s nowIt was
Customer
Relationship
development
Ensuring
satisfaction
Clearing
needsNeeds
satisfaction
Co-innovating
Opinions
influencing
Engaging by CustomerRelationship Management
Customer co-innovation: Engaging Customersby Using them to Generate New Ideas
• As customers are more likely than ever to be“engineers” within a service process, it is essential toinvolve them in the innovation process.
• One example is a recent study by Per Kristenssonand Jonas Matthing from Telia. The purpose was toexamine whether ordinary customers, lead users, or“experts” are better at identifying and expressingneeds and developing new service ideas.
• Result: Ordinary customers are the best servicedevelopers.
Benefiting the Digital Environment in Designing,Launching and Marketing New Residential Area
www.espoonvetovoimaisinasuinalue.fi
www.facebook.comwww.youtube.com
www.blogger.comwww.myspace.com
Input Digital Communities and Channels Output
• Direct mail
• Ads
• Busses
• Articles
• Jokakoti-map
• Oikotie,
Etuovi
• Articles
• Discussions
• Community
• Engagement
• Opinions
• Idea testing
• Viral
• Marketing
New neighbourhood in Espoo. Engaging futureresidents by involving them into the planning .
83
107
The Marketing Mix Paradigm Shift4P -> 7E
Engagement
ProductExperience
Earnings model Price
Place Easy to find
Promotion
Employees,
Ethics & Environment
“To win in the marketplace
you must first win in the
workplace.”
Former Campbell’s Soup CEO, Doug Conant
Employee Engagement
– Employee engagement does not mean employee
happiness or satisfaction.
– Employee engagement is the emotional
commitment the employee has to the organizationand it’s goals.
– This emotional commitment means engagedemployees actually care about their work and their
company
– They work on behalf of the organization’s goals
– They do marketing on the behalf of the company
When employees care—when they areengaged—they use discretionary effort
• The can be even 50-100 times more productive
• Give 110%
• Go the extra mile
• Take personal responsibility/accountability
• Hold themselves to a higher standard
• Take pride in the quality of their work
• Feel that what they contribute matters to the
success of the organization
Engaging Luja-employees by going to funny
and extraordinary happenings with our ownspectacular team
Luja Dreamteam Tour 2013
• Snow Sculpturing FinnishChampionship, Kemi, 11. - 13.1.
• Extreme Run, Tahko, 13.4.
• Helsinki City Run, 4.5.
• Wife Carrying WorldChampionship (sonkajärvi, July)
• Swamp Football WorldChampionship, Hyrynsalmi, 19.-20.7
• Church Boat Championship, July
• Red Bull -hill carting, Helsinki,July
LUJATOUR 2013
The mission of every familybusiness is continuity. In orderto ensure the continuity, Luja
implements sustainablebusiness principles.
Ethics
• In this modern transparent world, it is increasingly
important for companies to deal with ethics as a
corporate strategy that, if uniquely implemented,
could achieve competitive advantage for the
company rather than waiting to react to possible
ethical issues of importance to the targeted
stakeholders.
• It is the necessity of being ethically proactivecompany rather than being ethically reactivecompany.
• Ethics is part of Luja’s business model
Ethics
• High business ethics generates brand value
and reputation by high standards of business
integrity and company social responsibility(CSR)
• Ethics in business is no longer an option. It is a
MUST.
• 92% of consumers surveyed said ethical issues
would influence on buying decisions
Luja Corporate Responsibility
• Luja ensures with continuous renewal and
development the sustainable competitiveness and
profitability
• Yearly investment of around 14 man-years on
development, focusing on sustainable
construction:
• Reduction of energy consumption, emissions
and waste volumes
• New products, projects and systems for
energy-efficient construction
• Luja has an active role in fighting against black
economy in the construction industry
• The safest working site in Finland 2012
• Luja supports ”The Children of the Station”-charity
association with quite a big sum every year
Environmental responsibility
• The need to succeed in "green race" forces
companies to invent new products, services,
earnings and business models in an
unprecedented way (Ecomagination)
• Greenery is also profitable in a business sense
(more efficient, with fewer raw materials and
energy - with more demand)
• Standards and green certificates shape the
competitive environment - without them one can
not succeed.
Taking care of environment is part of Luja’sethical business model
ENERGYEFFICIENCY
ECO EFFICIENCY
• Use of materials• Waste and emissions
• Other environmentaleffects
SUSTAINABLE CONSTRUCTION• Safety• Accessibility
• Functionality• Adaptability
• Consumption of natural resources?
• The value produced to
•companies
•consumers•society
The Levels of SustainableBusiness
Avoiding risks
The fulfilment of the
requirements of laws
and regulations?
Competitive
advantage
The first zero-energy high risein Finland
� In Kuopio
� Piloting site with VTT and Tekes
� For student accommodation
� Lots of new kind of technology
Sustainable brand is strenghteningwhen the words and deeds match
Competitive
advantage
Green
washing
Being a follower
weakens the brandSilent working doesn’t
increase the brand value
Sustainable
brand buildingThe volume ofresponsibility
communi-cations
The volume of
responsibility actions
Much
Much
Little
Little
SustainableCapitalism
means GoodBusiness
The Luja-framework for leadingsustainability with brand
STRATEGY
HISTORY &CULTURE
VALUES& ETHICS
PEOPLE &
ORGANISATION P
RODUCTS &
OFFERINGS
Corporateidentity
ResponsibleBrand Directing
The Effect onintellectual capital
RESPONSIBLE
BRAND DIRECTING
ACTION &BEHAVIOUR
VERBAL &VISUALIDENTITY
STAKEHOLDERDIALOG
BRAND &REPUTATION
HUMANCAPITAL
STRUCTURAL CAPITAL R
ELATIONSHIP CAPITAL
Responsibility as a starting point
SOCIALRESPONSIBILITY
ENVIRONMENTALRESPONSIBILITY
ECONOMICALRESPONSIBILITY
Questions andAnswers