a revolution in marketing

Chicago Booth Magazine Spring 2OO922

Cover A Revolution in Marketing

A Revolution in MARketing

23Spring 2OO9 Chicago Booth Magazine

The days of the big, splashy television commercial are not over. But the ads have become

part of an expanding and more exacting set of marketing tacticsviral videos, Twitter

feeds, and customized messagesthat companies use to connect with consumers.

Explosions in technology have given marketers unparalleled freedom in how they promote

a brand, and as a result, marketing is undergoing a revolution. Firms now start by devel-

oping a finely honed marketing strategy for a brand and end by capturing measurable

results with hard dataan approach that has long been in fashion at Chicago Booth. In

fact, an unprecedented amount of data will be available this year with ACNielsens new

agreement to share household panel data with Chicago Booths Marketing Data Center,

putting the school at the forefront of marketing for the 21st century. By Patricia Houlihan

How Chicago Is Going Beyond the Buzz



Everybody loves a great ad. Done well, it not only moves more product, it also generates conversation around the water cooler at the office and even media buzz. This was the case with the Doritos 30-second television com-

mercial during the 2007 Super Bowl, a humorous episode that

showed a cute couple meeting after a fender-bender induced

by their mutual love for the snack chip. What drew the media

spotlight was the fact that it had been made by a Doritos fan

and was the winner of a competition sponsored by Frito-Lay,

a gutsy move that deepened the brands relationship with its

16- to 24-year-old consumers. The innovative shift has shaped

the firms approach to Super Bowl advertising, and the con-

test is now an annual event. This year, the consumers ad for

Doritos actually beat out all other ads to place number-one

in the two most-watched Superbowl polls in USA Today and

YouTube, proving that taking risks and doing marketing dif-

ferently can pay huge dividends, said Ann Mukherjee, 94,

group vice president for marketing at Frito-Lay North Amer-

ica, who led the effort.

Frito-Lay has large, mature brands. To drive ongoing

growth of something this big, we had to move beyond tradi-

tional marketing, she said. For the Super Bowl, she said, we

bought a TV spot and said to consumers, You create an ad. We

wont edit it. And well let other consumers pick the winner,

which well put on the largest advertising stage possible. Thats

the kind of fundamental shift weve created at Frito-Lay.

Being able to lead a team of executives to consider the strat-

egy is where her training at Chicago Booth came into play,

Mukherjee said. Thats where I learned to look at a business

holistically and under-

stand the economic

value that marketing

drove within that model.

Marketing is not a sup-

port function; marketing

becomes a key enabler

for understanding how

to generate sustainable

growth for a business.

In the changing environment that we live in today, you have

to be nimble enough to drive different frameworks and keep

ahead of the pace.

Mukherjees experience illustrates how Chicago Booths

approach to marketing is not only changing the field, its

also shaping the world of business. Peter Rossi, Joseph T. and

Bernice S. Lewis Professor of Marketing and Statistics, said,

What distinguishes Chicago Booth marketing is a melding

of models and data. We are not content to simply describe

or measure the effects of marketing actions; we also opti-

mize the use of marketing funds. We bring the results of that

research to the classroom. Thats where Chicago Booth stu-

dents learn how to apply innovative marketing theory in a way

that marketing becomes a key driver of business growth.

Taking an innovative route is something David Appel,

AB 81, MBA 82, understands in a way few marketers do.

Currently CEO of Vision LLC, he left Accenture to join the

family business, Orange

Glo, the cleaning prod-

ucts firm that beat such

industry giants as Clorox

with its innovative mar-

keting of OxiClean. Pro-

moted through infomer-

cials, the stain remover

captured a majority of

the U.S. retail market,

making it the first mass-distribution consumer product to

succeed using that channel. Annual revenue exceeded $300

million before Orange Glo was sold in 2006.

Appel thinks of himself as a marketer, although he led that

company and now heads two other firms. His concentration

at Chicago Booth included finance and accounting as well as

marketing. The best marketers have a complete view of the

business and understand everything about bringing a prod-

uct to market, because if youre not the leader of the business,

who is? he said. Quantitative tools help you make good

marketing decisions. How do you decide what makes a com-

pany valuable? You try to create a brand thats worth some-

thing and repeatable and sustainable and has fairly limited

competitive threats.

Managing a Brandor a Company

Among those who have a master grasp of brand potential is

James Kilts, 74, who built a reputation and a career on his

ability to rejuvenate stagnant brands and revitalize trou-

bled corporations. He has restored the flagging sales of Kool-

Aid, Oscar Mayer, Oreo, Life Savers, Kraft cheese, and Plant-

ers peanuts. When Nabisco named him president and CEO

in 1998, its market share for brands representing 90 percent

of the companys U.S. sales was declining. In just 18 months,

Kilts engineered a turnaround that resulted in market share

growing for 90 percent of its brands. His success attracted the



attention of the Gillette Company,

which appointed Kilts chairman

and CEO in 2001, the first outsider

to run the firm in 70 years. The

razor and battery maker had missed

its quarterly earnings estimates for

four years; its stock had plummeted

62 percent in two years. Kilts led a turnaround and sold Gil-

lette to Procter & Gamble for $57 billion in 2005.

Whats important is understanding how to turn data into

information and knowing how to make decisions about the

results, he said. At Chicago, I learned to be very analytical,

to absorb as many facts

as possible, and then [to]

extract direction and, ulti-

mately, conclusions from

those facts. Kilts, who

gave the naming gift for

the James M. Kilts Center

for Marketing at Chicago

Booth, describes his expe-

riences in the book, Doing

What Matters: How to Get Results That Make a DifferenceThe

Revolutionary Old-School Approach. There are a lot of general-

izations about consumers that everyone is fond of making, but

what you really have to do is understand how the consumer

thinks in the context of your category, Kilts explained. You

need to know the consumers wants, needs, and tradeoffs, and

that requires good analytical workboth qualitative research

and, importantly, quantitative research.

Now a partner at Centerview Partners, an investment bank-

ing and private equity firm, Kilts said marketing remains his

passion. Its all about finding the fundamental connection

with consumers, making sure all the programs and communi-

cation around the brand are focused on linking with those con-

sumers and their fundamental needs, and making those needs

relevant to todays marketplace.

Todays marketers say analytics have become even more rel-

evant, said David Knoepfle, 03, marketing manager at Wm.

Wrigley Jr. Company. One of the common challenges we face

is a constant pressure to justify the expenditures we make and

to ensure our programs are giving our shareholders an ade-

quate rate of return, he said. It goes back to ROI. With the

economy this tough, having a strong understanding of the P&L

for the program youre putting into place and the return it will

give you is key. Having people who are well versed in analyzing

the business and analyzing the decisions we make is a definite

asset at any time, but particularly in a down economy.

Broad Audience for the Chicago Approach

In teaching strategic marketing, faculty drive home the fun-

damentals of how to run a business. The fundamentals dont

change because of trends like the internet or because were

in a recession. Theres no new set of principles, said Jean-

Pierre Dub, Sigmund E. Edelstone Professor of Marketing.

Marketing faculty at Chicago Booth focus their research on

typical problemsadvertising, pricing, customer segmenta-

tion, customer preferences. But with economics as the basis

for forming theories and constructing models, the papers are

published in top marketing, economics, statistics, and psy-

chology journals, giving Chicago Booth research a broader

audienceand a broader impact.

In fact, Dub; Sanjay Dhar, James H. Lorie Professor of

Marketing; and Bart Bronnenberg shared the 2008 Paul E.

Green Award for their study Consumer Packaged Goods in

the United States: National Brands, Local Branding, which

documented striking geographic patterns in the performance

of national brands. Two coffee brands, Folgers and Maxwell

House, dominate the U.S. market with roughly equal shares of

volume sold. However, in some regions, Folgers garners consid-

erably more share than Maxwell House; in other regions, the

situation is reversed. We went through company archives and

traced when these brands rolled out in different cities, Dub

said. We did this for several product categories and found

that being the first to roll out in these marketssometimes

over a century agois

a very good predictor of

whether a brand has the

highest market share in

that market today. This

incredible degree of per-

sistence is surprising

both for academics and

for brand managers in

these categories.

Whats important is understanding how to turn

data into information and knowing how to make

decisions about the results.James Kilts, 74




In a follow-up study, Dub and Matthew Gentzkow, asso-

ciate professor of economics and Neubauer Family Faculty

Fellow, are working with co-author Bronnenberg on why his-

tory would persist in the current performance of a brand.

Weve obtained shopping data on 75,000 households across

the country from ACNielsen, then surveyed these house-

holds about the city where the primary shopper was born,

was educated, and currently resides. Were studying whether

people buy the brands that are popular where they currently

live versus where they grew up; were testing whether shoppers

take their brand preferences with them when they move to a

region that has different brand-buying habits.

Enriching the Marketing Data Center

Faculty have gained an important step toward having even

greater access to data this year. Nielsen agreed to share

its household panel data with Chicago Booth and to

update it annually. Housed at the Kilts Center, the Marketing

Data Centercreated by Rossi with the help of Kiltswill

enable Chicago to develop the first longitudinal marketing

data sets available for academic study and classroom use.

Over time, well be able to accumulate a data set that is

unique and will allow us to answer questions people have

posed that were unanswerable in the past, Rossi said. Tradi-

tional marketing research has been viewed as one-off studies,

but this data set will help managers understand how things

might evolve rather than just focusing on the next quarter.

Well have a confluence of data and models, and to bring sci-

ence to marketing, you need both.

The Marketing Data Center puts Chicago Booth on the

map as the premier source for mar-

keting data in the world. If you

really understand marketing, its

clear that a revolution is taking

place, said dean Edward Snyder.

Its moving from people with some

judgment, anecdotes, and stories

to professionals with deep insights

into markets and organizations who can use more sophisti-

cated tools and data to draw even more insights from broad-

based experiments that let them evaluate data, test results, and

improve performance.

That revolution, Snyder said, is going to happen at Chi-

cago Booth. We have the faculty, and now well have the data

from Nielsen. Were deep into experiments with such faculty

as Steven Levitt [William B. Ogden Distinguished Service

Professor in Economics and the College] and such experien-

tial learning as Management Lab, Marketing Research, and

Consumer Behavior, courses designed to prepare students

for roles where marketing integrates with other business func-

tions to drive growth. Hopefully, well have partnerships with

other schools that will generate even more data, ensuring flow

from different product sets and geographies, Snyder said.

Nielsen data will allow more and better quantitative market

research, an area where

Chicago Booth faculty

have taken top prizes.

Associate professor of

marketing Gnter Hitsch

won the Frank M. Bass

Award from the Institute

for Operations Research

and the Management

Sciences (INFORMS) in

2007 for his research on dynamic decision models, a frontier

area for marketing. Ive been able to make progress by advanc-

ing statistical methods, especially computational techniques

that allow me to tackle previously unsolvable, complex deci-

sion problems, he explained. Much of his research focuses on

dynamic marketing strategies, i.e., situations where marketing

decisions that firms make today have effects on future sales,

profits, and competitive reactions.

In the paper Tipping And Concentration in Markets With

Indirect Network Effects that Hitsch coauthored with Dub

and Pradeep Chintagunta, Robert Law Professor of Market-ing, they noted that sudden shifts in market share are likely

in industries that have competing yet incompatible stan-

dards. In the market for video game consoles, for instance, the

industry is characterized by indirect network effectsthe

positive feedback loop in which increased hardware sales

result in more software titles, which, in turn, increase hard-

ware sales. As a result, indirect network effects can cause a

market to tip quickly in favor of one standard.

They developed a model calibrated with data from the

Well have a confluence of data and

models, and to bring science to marketing,

you need both.Professor Peter Rossi


OLD APPROACH

Reliance on survey data

Focus on outcomes of consumer decisions

Measuring marketing effects

Use descriptive models

Focus on short-run profitability

REvOLuTiOnARy APPROACH

Insights from marketplace data

Examine the process consumers use to make decisions

Optimizing marketing activities

Use models based on behavioral processes

Emphasize drivers of long-term value

video game console market that generates predictions that

can be used to measure the extent of tipping. In that market,

he said, this tipping depends on consumers valuations of soft-

ware and on consumer expectations. The work was one of sev-

eral papers presented at the Quantitative Marketing and Eco-

nomics (QME) conference in 2007, hosted by the Kilts Center,

Chicago Booth, INFORMS Society for Marketing Science,

and Springer, publisher

of the QME journal.

The latest faculty

accomplishments build

on a tradition of innova-

tive marketing research

at Chicago. For instance,

Rossi proved the value

of targeted couponing

based on household pur-

chase histories, which he outlined in the paper The Value of

Purchase History Data in Target Marketing, published in Mar-

keting Science in 1996. Rossi and other faculty in the statistics

group pioneered advanced modeling methods that facilitate the

estimation of large-scale modelsmodeling used by Demand-

Tec, which makes software that helps manufacturers and such

retailers as Wal-Mart and PETCO predict consumer demand

and develop strategies for pricing and promotions.

Among alumni who employ the analytical approach are

Dhiraj Rajaram, 03, founder and CEO of Mu Sigma, a pioneer in analytics outsourcing and data-driven decision

making, and Dick Buell, 78, chairman and CEO of Catalina Marketing, which triggers promotions and advertisements

based on the consumers purchase behavior (either UPC scans

or ID cards) that are delivered at the point of sale.

Preparing the next Generation of Marketers

Faculty take their research into the classroom, and also gain

insight from students, said Dub, who teaches pricing. Every

year, I try to add something new related to my research.

While the class content is getting richer each year, its also

getting slightly harder, but the students always rise to the

challenge. Students also inform faculty research by sharing

what goes on in the field. Weve nailed consumer behavior,

but firms dont always behave the way we would predict with

our theories, he said.

Coursework laid the foundation quickly for Jessica Lindor,

a career-changing first-year student who landed a market-

ing internship at Kraft. The Marketing Strategy course

gave me the entire framework for analyzing problems. In my

Data-Driven Marketing course, we used Nielsen data, so I

understood what all the terms meant before I got to Kraft.

Assigned to the California Pizza Kitchen (CPK) brand, she

had three assignments, including bringing the consumer to

life. I came up with the idea of creating a website, which was

so well-received that I spent my last week on the road, show-

ing it to people outside the brand team. That was great because

I saw it wasnt just an internship project, it was a tool that

could be used by everybody at Kraft who needed a really good

understanding of the consumer in the years to come. n

Some indications that the Revolution is under WayHere are highlights of the revolutionary approach to marketing that is under wayapproaches led by Chicago Booth.




David Booth, 71, provisionally agreed in the summer of 2008 to give a gift that could change the name of his alma mater. Although the change hinged on approval from the University of Chicago Board of Trustees that fall,

dean Edward Snyder and executive director of marketing Chris

iannuccilli immediately embarked upon a massive, secret

effort over 20 weeks to rename the schoolprovided the vote

was favorable.

Their first step was to quickly convene a steering committee

comprised of deputy deans Richard Leftwich, Mark Zmijewski,

and Stacey Kole to guide the renaming and plan its announce-

ment. They also sought out Gary i. Singer, 78, founder of Red-

line Results, for his renaming

expertise and corporate branding

experience, and Bart Crosby of

Crosby Associates, who had

designed the schools wordmark

and brand identity a decade ago. Singer conducted stake-

holder interviews with the steering committee, Booth,

former deans Robert Hamada and Jack Gould, and key alumnus

James Kilts, 74, to see where everyone aligned and diverged.

Selecting the schools name was a major step, one that

involved much discussion among committee members who

heard several recommendations, debated them, and resolved

them. The steering group recognized that Davids generous

gift offered the school the opportunity to help close its repu-

tational gap, Singer said. Moving from the combination of

a place name (Chicago) and the generic description of what

the school does (graduate school of business) to the right

name that offered the potential to create a more ownable

brand was an important decision treated with Chicago-style

seriousness and rigor.

After lengthy consideration, the committee also decided to

replace the word graduate with Booths last name. By decid-

ing to drop graduate, we join the brands that have left the name

of what they do behindApple Computers is now Apple, which

has allowed it to be so much more, Iannuccilli said.

Ultimately, we chose the University of Chicago Booth

School of Business as the formal name and Chicago Booth as

a common version that could eventually be shortened further

to Booth. The committee members agreed that this was the

best direction for the school.

As a marketer, Iannuccilli was charged with the next steps:

develop a messaging strategy for the name change (and, effec-

tively, for the school), create a new visual identity, craft a media

strategy that maximized the window of interest created by the

gift and naming, develop advertising to splash the new name,

launch a new website, and change the building signage on four

campuses. Additional wrinkles included announcing the

gift publicly three days after a presidential election and a day

after Chicago Booth would be defending its number-one rank-

ing as the countrys best business school when BusinessWeek

released its biannual report. And the announcement had to be

kept secret until members of the University of Chicago Board

of Trustees voted on it.

What Works

The steering committee also agreed upon key points, which

provided focus and momentum, Iannuccilli said. For

instance, closing both the brand and endowment gaps was

the most strategic imperative for the school, and continuing

to embrace and celebrate its rich heritage, values, and accom-

plishments was essential. Our key competitive advantage

is our outstanding faculty, who are the drivers of past and

future success. We realized the renaming gift gave us a unique

opportunity to clarify what makes the school meaningfully

distinctive, and to tell our story more crisply and concisely,

he said. Finally, committee members knew that implementa-

tion would have to be bold and aggressive.

The Branding of the Gift The strategy behind the naming of Chicago Booth

We knew we had to maximize the moment when the spotlight was on us.Chris iannuccilli


Successfully creating or strengthening a brand begins with

identifying core characteristics, and Singer had led numerous

firms through this exercise, including McDonalds, as one of

the leading branding experts at Leo Burnett, DArcy, McKin-

sey, and Interbrand. Chicago is one of the places where you

can come up with a long list of attributes, too, Singer said.

Ultimately, we identified three core values: intellectual rigor

and debate, continuous ideas that shape business, and people

who create lasting value. Well-identified, the values strike a

resounding chord with everyone who has a stake in the brand,

both internal and external constituencies.

Crosby, who had been involved early in the process, was

given free rein to

develop the new visual

identity, a blank slate

in terms of colors,

fonts, looks, and treat-

ment. We explored

hundreds of them,

Iannuccilli said. It

was an opportunity

to address all sorts of

brand evolutions and

needs. The new iden-

tity was selected both

for its link to the now-

familiar Chicago GSB

logo, but also for its

bold, streamlined, graphic presence thats easily adaptable to a

range of uses, from signage to gear, he said.

Communications strategy for the November 7 launch was

planned and executed by select high-level staff who worked

with trusted, longtime partners. University-wide public rela-

tions professionals including Allan Friedman of Chicago Booth

gave the Wall Street Journal, Chicago Tribune, and New York

Times access to key sources in exchange for an embargoed story,

then handled the media-wide announcement. Alumni affairs

staff arranged for a champagne toast with full-time students,

faculty, and staff in the Rothman Winter Gardena surprise

announced 30 minutes earlier. Marketing staff prepared a

special issue of the magazine and developed a web microsite,

homepage rotation, and email notifications. Building signage

was created and was installed overnight. We were able to rely

on vendors and partners we had worked with for years, Ian-

nuccilli said. We said, The gift could be jeopardized if this gets

out. We have to give the trustees the ability to vote on it.

The culmination came at 5:23 pm, when Snyder made the

official announcement and the Wall Street Journal sent an email

blast to millions of subscribers with the news, Iannuccilli said.

I got it on my iPhone when I was in the winter garden.

Spreading the Word

Full-page ads ran immediately. Media around the world

picked up the story. And BusinessWeek postponed its rank-

ing announcement by one week, enabling Chicago Booth to

gain extra time in the spotlight when the school maintained

its number-one status. We got a bit lucky on the media

front, but we were ready, he said. We knew we had to max-

imize the moment

when the spotlight

was on us.

Executing from

that point forward

was key. We werent

able to bring alumni,

students, or faculty

into the decision-

making process

ahead of time, so it

had to be done well,

Iannuccilli said. By

7 a.m. the follow-

ing day, much of the

signage at Chicago

Booths four campuses had been changed. We wanted stu-

dents to be proud of their school and to see this was the

way we were going to move forward. And we gave away

gear immediately so they could start participating in it and

become part of it. We couldnt do that with 43,000 alumni

but we sent out the special issue, and Ted had an online chat.

We wanted them to get to know David, to learn how he based

his investment management approach on the efficient mar-

kets theory of Gene Fama, which led to the incredible suc-

cess of Dimensional Fund Advisors. It was perfect for us to

rename ourselves after David.P.H.

Learn more about the renaming effort at ChicagoBooth.

edu/booth/, or recapture the excitement of the November

7 announcement by going to ChicagoBooth.edu/ontheweb and

entering the keyword excitement. See whats new in Chicago Booth

gear at ChicagoBooth.edu/store.




in the constant battle for brand recognition, renaming a brand presents a rare opportunity: a time of heightened visibility and a chance to re-tell a brands timeless story in a way thats fresh and forward-looking. Those who do it well

find a balance between celebrating the brands heritage and

jump-starting it with an aspirational pushand avoid the

pitfalls along the way.

Successful marketers know that every discussion about managing a brand starts at the same place: defining in simple

terms what truly makes it meaningfully distinctive. First, you

have to understand what makes the brand timeless to begin

with, said Ann Mukherjee, 94, group vice president for mar-

keting at Frito-Lay North America.

What are some of the things that

are non-negotiable in terms of what

the brand represents?

The answer drives value in every-

thing you do, said Gary i. Singer, 78,

founder of Redline Results, a brand-

ing consulting firm. You can use it

as a decision-making tool to decide

what your priorities are, as an align-

ment to get your employees to figure

out whats important to do when they

get to work, as a tool to sharpen your go-to-market offerings

the products or services you sell and what makes you different.

And it goes beyond the functional. It also includes the tenor of

the place, the DNA.

In changing a brands name, organizations that manage the

transition successfully are able to link the new name with the

long-standing core attributes. When a donation from an indi-

vidual renames an organization, the new name is a particu-

larly good fit if the donors personal story illustrates the orga-

nizations core values. Such is the case with Booth, said noted

turnaround expert James Kilts, 74, now a partner at Cen-

terview Partners. David epitomizes the values of the school.

Hes a financial expert, an entrepreneur, and a great marketer.

And as he says, he owes all those characteristics to his success

at the university, Kilts said. Ann McGill, Sears Roebuck Pro-

fessor of General Management, Marketing, and Behavioral

Science, echoed the sentiment. David is the Chicago Booth

School of Business.

Managing Mistakes

Singer admits its easy to get caught up in the search for the

perfect name. He recalled a point working on a project for

McDonalds when it was decided to take a pass on an answer

that was really elegant and cooland if you wrote it up in

a marketing textbook, people would say, Thats really excit-

ingfor another answer that was probably 70 to 80 percent

as good as the first one but was more likely to be embraced

by several critical internal constituents. Mary Dillon, McDon-

alds chief marketing officer, made the smart call that getting

successful adoption and implementation was a lot more pow-

erful than coming up with a really cool answer.

Singer says that in most cases, there are probably three or

four names that are good enough. The real trick is to come up

with a brand name and a process that engage the right people

in the right way so that theyre enthusiastic about it and sup-

port it and give it momentum.

Firms that use renaming to try to solve a business prob-

lem, such as a poor public image, do not succeed. I dont

know how many years its been since Philip Morris changed

its name to Altria, Singer said. To this day, I hear people

Building a 21st-Century Brand Using a renaming opportunity to boost brand equity

The real trick is to come up with a brand

name and a process that engage the right

people in the right way so that theyre

enthusiastic about it and support it and

give it momentum.Gary i. Singer, 78

31Spring 2OO9 Chicago Booth Magazine 31

say, Altria, formerly Philip Morris. What did they accom-

plish? Theyve actually heightened the fact theyre a cigarette

company, as opposed to diminishing it. Mukherjee called

it being apologetic. She said, Theyll become apologetic

for who they are and try to stand

for something theyre not. Great

marketing isnt giving people a dif-

ferent answer, its helping them

reframe the way theyre thinking

about the question.

Companies also invariably fail

when they try to attach the new

name to something that lacks the core characteristics. Long-

time marketer Rishad Tobaccowala, 82, now CEO of Denuo,

recalled Coca-Colas disastrous introduction of New Coke.

What they tried to do was keep the same name with a new

moniker, which was New Coke, but make a drink that was

more like Pepsi. In that particular case, what Coke stood for

was consistency and a link through time, so it was not just a

formula of water and cola.

In effect, by saying theres Coca-Cola and theres New

Coke, it was basically the equivalent of saying, There are two

business schools: theres the GSB and now there is Booth,

and you can choose between the two flavors. It was a very

bad case of Coke trying to rename and rebrand at the same

time, not knowing what the hell they were doing. In the case

of Booth, we do not have the same problem that Coke had. In

our case, what the school stands for remains the same and, in

fact, is reinforced by the new name since David is a success-

ful product of the schools philosophy and belief in analytics,

markets, and new knowledge.

Meeting Challenges Head-On

Even done well, renaming brings challenges for the best of

marketers. Consumers become attached to names, Mukher-

jee said. We think its just a name, but for some people, it rep-

resents something, and

its important we under-

stand what it represents.

Kilts pointed out that the

younger the audience, the

more quickly they adapt.

In some cases, it takes

a while because theres

a connection to history

and what you grew up

with. At Gillette when we introduced our new Mach3 razor,

our target audience was 18- to 25-year-olds because they were

the quickest to adopt. We didnt convert a lot of people over

50, although we converted some, Kilts said. Youre always

going to have that with a major name change. That shouldnt

bother you. Its just the nature of business and the nature of

consumer behavior.

In addressing the issue, Singer said its important to con-

sider it from the perspective of all key constituents, includ-

ing the internal constituency, which is often overlooked but is

very important. How is this going to make people feel? How

is it going to help them do their job better? In the case of

Chicago Booth, Singer said, we looked at current and pro-

spective students, faculty, alumni, current and prospective

recruiters, and current and prospective contributors to the

school. Its important to think about it quite broadly in terms

of the constituents involved.

Faculty were among the early adopters at Chicago Booth,

said Sanjay Dhar, James H. Lorie Professor of Marketing. The

reason David Booth gave this money is that he established this

partnership, as he calls it, with the school many years ago.

And he is a person who reinforces what the school stands for.

My first reaction when I heard why he had given the money

was that my teaching job becomes a lot easier now. I can tell

students, The impact of what I teach you may be pushing you

to think in the fundamental core values of Chicago, which is

that discussion and debate leads to the creation of new knowl-

edge. In David Booth, you see someone whos successful and

who acknowledges that, and this is the reason he supports us.

I think its a real reinforcement of what the school stands for,

and why we teach here and not at another school.P.H.


First, you have to understand what makes the brand timeless to begin with. Ann Mukherjee, 94

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