THE FUTURE OF MARKETING

Direction of Marketing: From Monologue to Dialogue to Trialogue

Brand TRIALOGUE

Customer Customer

Company

Education

Master of Law: University of Utrecht

ISW: Marketing Assistant + Marketing Manager

NIMA: A + B

Chartered Institute of Marketing (UK) : Diploma in Marketing + Chartered Marketer

Master of Business Administration - Edinburgh Business School, Heriot-Watt University (UK)

Occupational Experience

Fruit Growing Assistant

Sales Representative - Roussel + 3M

Product Manager - 3M + Wyeth

European Marketing Manager - Elsevier Science Publishers

Lecturer / Author/ Interim Manager Entrepreneur /

Mission : To be a services provider, of enjoyable practical academic marketing experiences

NICO JANSEN

Program

• C-Themes

• A Russian Problem?

• Two examples of “new” marketing

• Change and the enterprise of the future

• Relevant Developments

• Experience marketing

• Integration in Corporate and Marketing Planning

• Conclusions

C-THEMESC (HANGE) WORLD = ENVIRONMENT

SEA WORLD = EXPERIENCE MARKETING

SEE WORLD = STRATEGIC PLANNING

To be the best

Competitive Advantage

I am a bit worried about you

NRC Handelsblad 4 juni 2008

CHOCOLATE

SEGMENTATION?

http://www.tonychocolonely.nl/

• Tony's Factory wants to make the tastiest chocolate in the world, chocolate that the whole world can enjoy.

• Most of the people involved in cocoa production do not get much enjoyment out of their work. Their working conditions are terrible and they are not paid an honest wage for a good day's work.

• • In some cases, their working conditions are so bad that the cocoa workers

can be considered slaves according to the definition of slavery issued by the UN. Many of these cocoa workers are children.

• • Tony's Factory wants to change this situation. We feel that the people in

the cocoa fields deserve honest wages for their work and our delicious Tony's Chocolonely chocolate is made from cocoa harvested by people who receive just that, so that they can also enjoy chocolate.

Llink Online aflevering over Ivoorkust. Llink Warzone wist als eerste tv-ploeg unieke beelden van en interviews met kinderslaven op cacaoplantages te maken.

• BBC News Kuna mensen uit Panama drinken veel cacaodrank en dat houdt ze gezond. • Wikipedia Cacao Achtergrond informatie over cacao • Max Havelaar Max Havelaar • pastisseria Chocolademuseum in Barcelona • choco-story Chocolademuseum in België. • De Chocoladefabriek Deze chocoladefabriek zal in de tweede helft van 2009 in Amsterdam haar deuren openen. • gezondheidsnet Artikel over het positieve effect dat chocolade op de hersenen heeft. • www.food-info.net Wetenswaar achtergronddossier over chocolade op site van Universiteit Wageningen.• ncsu.edu Teacher Menu for Chocolate Activities. • Handleiding voor leraren Handleiding voor leraren die het onderwerp 'slavernij in de cacao-industrie' in hun

lespakket willen opnemen. • Not for sale campaign Amerikaanse campagne tegen slavernij. • Unicef Unicef, de Kinderrechtenorganisatie van de Verenigde Naties. • vision.ucsd.edu Stop Chocolate Slavery. • globalexchange Zeer uitgebreide site over kindslaven in de cacao-industrie met allerlei links naar rapporten

artikelen en akties.

Links= Information Benefits

Another Example.Pink Profit

Banking.Credit Suisse.

• Nearly one in nine employees in London's banking, finance and insurance sector is gay, according to an article in the Telegraph, and such consumers typically enjoy significantly higher salaries than their heterosexual counterparts. Little wonder, then, that one of London's major banks has implemented a new banking service targeted specifically at the city's homosexuals.

• Just launched this summer, Credit Suisse's new service is provided by advisors at the bank who are themselves openly gay, the Telegraph reported, and includes not just traditional banking offerings but also components tailored to such events as adoption and civil partnership. Stephen Connolly, head of the Credit Suisse service, explains: “Clients with us have no need to explain their lifestyles or—as we know happens in some cases—almost feel the need to justify the way they choose to live their lives.”

• We've already covered banks for women, and now gay banking—part of what our sister site trendwatching.com would call the Pink Profits trend—is further proof that catering to frequently sidelined segments of the population can be undeniably lucrative. Of course, fine lines separate the notions of "catering to," "segregating" and "discriminating," but given the size of the demographic segment at issue here, navigating those distinctions could be well worth the effort!

• Website: www.credit-suisse.co.uk

THE FUTURE OF MARKETING

Change : Evolution and/or Revolution?

• We have seen more change in the last 10 years than in the previous 90.” – Ad J. Scheepbouwer, CEO, KPN Telecom

• http://www.ibm.com/ibm/ideasfromibm/us/ceo/20080505/index.shtml

CHANGE

FIN

DIN

GS

FIN

DIN

GS

Consumers > Producers!!

PROSUMERS

Marketing within this Enterprise ?

The greatest challenge to management in the next decade will be to change fast enough

to keep pace with

• new technology • new markets • new values.

• Plans: flexible and contingency• Planning and implementation process: real time

MARKETING?

• "Marketing is an organizational function and a set of processes for creating, communicating and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders."

MARKETING?

MARKETING STRATEGY?

Now and in Future:

-undifferentiated, differentiated, concentrated

-low cost, differentiation, focus (Porter)

-market penetration and market development (Ansoff)

-Push and Pull

- Existing customers (relationship m. 80/20 rule, customer life time value CLTV) and prospects (warm leads)

- Compatibility management in services based on CLTV

Building customer love Bell (2002)

• Enlistment

• Engagement

• Enlightment

• Entrustmnet

• Empowerment

• ENCHANTMENT

• Endearmenet (generosity)

• Basis of all is information. Build and manage databases

Customer Information Database

We know what to do!

BUT HOW???????????

The Traditional Approach

Analyzing the Environment.A Rational, Scientific Approach

Marco• Conflits, Crises, Chaos. Increasing Importance of Company Reputation• Currency Fluctuations

Industry• Continuous Competition, and Innovation• Can not be predicted• Copy(rights) and Technology. CSR and Sustainability

Consumers 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

Marketing (communications)• Connectivity, Trialogue Content contribution (web 2.0)• controlless communications• Critical Consumers, Customer advocacy

EXTERNAL ENVIRONMENT

TRIALOGUE

PEOPLE, PROFIT, PLANETA concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.

Commission Green Paper 2001 “Promoting a European Framework for Corporate Social Responsibility”, COM(2001)366 Final) http://europa.eu.int/comm/enterprise/csr/index_en.htm

There is only one Mother Earth, and we need to take steps in order to preserve her for future generations.

SUSTAINABILITY

Sustainability is often defined as a balance of the three E's: the environment, the economy, and social equity.

SUSTAINABILITY

• Respecting the environment can contribute to economic growth and should be seen as an opportunity rather than a threat. That is the message of the European Commission’s new communication on a sustainable industrial policy. Using natural resources more efficiently, and placing eco-friendly production at the heart of the European economy can do nothing but boost its competitiveness.

• http://ec.europa.eu/enterprise/e_i/news/article_7065_en.htm 16.09/2008

Examples of actions• European Commission’s sustainable industrial policy communication• The EU’s Ecodesign Directive, adopted in 2005• the existing Ecolabel scheme • the Competitiveness and Innovation Framework Programme (CIP) to support the introduction

of new environmentally friendly technologies and processes,

Sustainability in Wodka

http://www.environmentalleader.com/2007/07/23/green-vodka-hits-market/

REPUTATION

• Reputation is the result of actions and communications on 6 dimensions.

• It forms the trust, admiration, good feeling and overall esteem people have for an organization.

• Organisations need to understand expectations and manage interactions to influence the perception of stakeholders .

• Creates the “Company behind the brand”

Source: Kasper Nielsen and Nicolas Trad, Managing Partners of the Reputation Institute, The Summer 2008 Reputation Institute Newsletter. Visit reputationinstitute.com/about/news to read the latest on RI News.

REPUTATION….

REPUTATION

• is centred on co-creation of trust, respect and admiration through online and offline interactions based on expectations with the stakeholders

• Companies need to change form closed to open and engage with all stakeholders in a dialogue.

• Companies need to listen (receive) instead of talking (send) • Companies should trust instead of being skeptical, • Companies should empower employees to represent the

organization (off line and online) because they are the ambassadors that stakeholders tend to believe best

Source: Kasper Nielsen and Nicolas Trad, Managing Partners of the Reputation Institute, The Summer 2008 Reputation Institute Newsletter. Visit reputationinstitute.com/about/news to read the latest on RI News.

REPUTATION STRATEGY….

• On June 5th 2008 the Reputation Institute (RI) of New York announced the results of its Global Pulse 2008. These results are based on a survey measuring consumer perception of the worlds’ largest corporations. Toyota Motors led the pack and was followed by Google, Ikea, Ferrero and Johnson & Johnson. “

* The Global Pulse 2008 study measures the overall respect, trust, esteem, admiration and good feelings consumers hold towards the largest 600 companies in the world. http://www.reputationinstitute.com/advisory-services/global-pulse

GLOBAL PULSE 2008

StrategicExperiental Advantage

S.E.A. WORLD

Offline and online Experiences

Experiences in Marketingto create (more) value*

Increasingly, products and services are consumed by the mind as experiences

Value = Benefits/Price

Consumers are increasingly “time and effort starved”

New Virtual and E-shopping behaviour

• Non monetary benefits are time and effort savings• Emotional benefits are in the (offline and online) experience and

extras such as information, links etc

Experiences in Marketingto create (more) value*

TASTE EXPERIENCE

CREATING EXPERIENCE VALUE

INFLUENCE ALL SENSES

EXPERIENCE MARKETINGEXPERIENTIAL MARKETING

EXAMPLE Sensory cinema

The first scented cinema adverts could be sniffed in the UK after Nivea trialled them in Germany.

The scent of the skincare product was piped via air-conditioning vents in cinemas, increasing brand awareness by 500 per cent among the audience.

IDEAS?

Identifying ways to enhance user experience, meeting the customer's

information needs and helping customers become successful — an approach known

as

customer advocacy —

will be the future keys to creating value

STRATEGIC PLANNING

INTEGRATION

From Autocracy to Democracy

From Thinking to Seeing and Sensing

SEE & SENSE& RESPOND

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 . . .

Success is down to a new model: to operate more on a see, sense and respond basis.

Strategy Development

Sensing First

Doing FirstThinking First

Seeing First

Approaching Strategy Development

Planning Autoccracy

CSR Sustainability Web 2.0 Globalisation Innovation

Mission Web transparency means reputation and dialogue driven. Shared intense emotions; sincerity . Bow for customers and society.

Vision Social responssibility and sustainability driven

Reputation Decisive for marketing success, link to brands. Reputation Management!!!

Objectives People, Profit by share of customer, Planet, Reputation , Compliance and Sincerity

Strategies Customer-marketing-corporate. Totally bottom up . From “company to customer “ to “from customer to company “ Supply chain becomes demand value chain

Tactics To operate on a see, sense and respond basis. One of the main sources of ideas for new products and services is sensing customers’ needs in “real time”.

Organisation The “real-time” organisation strives to be available to its customers “all the time” and its marketers must expand their toolkit of sensors Open, responsive, flexible, customer management not product.

Summary Stop seller centric, command and control ideology . From finance and control to creating the foundation for effective marketing . From boss to servant. Companies must break free and reinvent marketing.

Corporate Planning Future

Source: P. Drucker, Managing in Turbulent Times, 1980

“… In turbulent times, an enterprise has to be managed both to withstand sudden blows and

to avail itself of sudden unexpected opportunities.

This means that in turbulent times the fundamentals have to be managed, and

managed well.”

CSR Sustainability Web 2.0 Globalisation Innovation

Objectives Listen, Cooperate, Dialogue, Creating Value together. Resposnible exchange means responsible marketing. Integrity and emotional authenticity. Integrating online and offline

Target Groups Prosumers with new social values

Comp. Advantage Basis for market presence Consumer contributes

No escape Shorter. More expensive

Positioning Includes or refers to social role and reputation

Sincerity control Culture free asociations

To have the best value

Mix Helping individuals manage aspects of their lives better (“solution assembly”) and helping individuals reaching important personal goals (“Passion Partnership”)

Product Ingredients Design

Unique customer proposition including experience, information,and interaction to realize customer bounding

Place Seller CSR Place desiign

Promotion Less offline , more online and integrated

Price Higher Higher

Margins Lower Lower

Marketing Strategy

CSR Sustainability Web 2.0 Globalisation Innovation

Objectives Mix results from a network structure e.g. outsourcing to China. Strategies based on network management objectives instead of mix management. Less controllable mix

Mix New product development and adjustments by network and by consumers

product Experience offered by a socially repsonsible company . Heart and Mind.Brand becomes a trialogue facilitator and on l,ine brnading an interactive exeperience

place Socially responsible supply chaIn

price From cost based to customer , one-to-one priricing

promotion Digital Trialogue. Blogs, Social Networks, Communities, Forums, Content Aggregators

-message Authentic and interactive. Linked to reputation and csr/sustainability

-media More digital. Of line and on line experiences.

-monitoring Net jury controls by social networks

Direct digital input c onsumers

TRAILOGUE see http://www.wnim.com/archive/issue67/index.htm

Marketing Mix

Either we take hold of the future revolution or the future will take

hold of us.

Маркетинг делает меня счастливой