marketing in 21st century

MARKETING IN 21ST CENTURY Prof.Dr.Aung TunThet

INTRODUCTION

CHANGE

Occurring at accelerating rate

Today not like yesterday

Tomorrow different from today

Continuing today’s strategy risky

TOMORROW’S SUCCESSFUL COMPANIES

Three certainties

1. Global forces continue to affect everyone’s business and personal life

2. Technology continue to advance

3. Continuing push toward deregulation

Endless opportunities

NEW BEHAVIOURS AND CHALLENGES

Customers expect higher quality and service and customization

Perceive fewer real product differences

Show less brand loyalty

NEW BEHAVIOURS AND CHALLENGES

Obtain extensive product information from Internet and other sources

Shop more intelligently

Showing greater price sensitivity in search for value

NEW BEHAVIOURS AND CHALLENGES

Brand manufacturers facing intense competition from domestic and foreign brands

Rising promotion costs and shrinking profit margins

Powerful retailers

NEW BEHAVIOURS AND CHALLENGES

Oversaturation of retailing

Growing competition from direct-mail firms; newspaper, magazine, and TV direct-to-customer ads; home shopping TV; and Internet

Shrinking margins

NEW BEHAVIOURS AND CHALLENGES

Building entertainment into stores with coffee bars, lectures, demonstrations, and performances

Marketing “experience”

COMPANIES RESPONSES AND ADJUSTMENTS

COMPANY RESPONSES AND ADJUSTMENTS

➤ Reengineering

From functional departments

To reorganizing by key processes - managed by multidiscipline teams

COMPANY RESPONSES AND ADJUSTMENTS

➤ Outsourcing

From making everything inside company

To buying more products from outside

Virtual companies outsource everything - own few assets and earn extraordinary rates of return

COMPANY RESPONSES AND ADJUSTMENTS

➤ E-commerce

From attracting customers to stores and having salespeople call on offices

To making products available on Internet

B2B purchasing growing fast on Internet

Personal selling increasingly conducted electronically

COMPANY RESPONSES AND ADJUSTMENTS

➤Benchmarking

From relying on self-improvement

To studying world-class performers and adopting best practices

COMPANY RESPONSES AND ADJUSTMENTS

➤Alliances

From trying to win alone

To forming networks of partner firms

COMPANY RESPONSES AND ADJUSTMENTS

➤ Partner–suppliers

From using many suppliers

To using fewer but more reliable suppliers who work closely in “partnership” relationship

COMPANY RESPONSES AND ADJUSTMENTS

➤ Market-centered

From organizing by products

To organizing by market segment

COMPANY RESPONSES AND ADJUSTMENTS

➤ Global and local

From being local

To being both global and local

COMPANY RESPONSES AND ADJUSTMENTS

➤ Decentralized

From being managed from top

To encouraging more initiative and “intrepreneurship” at local level

MARKETER RESPONSES AND ADJUSTMENTS

MARKETER RESPONSES AND ADJUSTMENTS

Rethinking philosophies, concepts, and tools

Major marketing themes

➤ Relationship marketing

From focusing on transactions

To building long-term, profitable customer relationships

Companies focus on most profitable customers, products, and channels

MARKETER RESPONSES AND ADJUSTMENTS

➤ Customer lifetime value

From making profit on each sale

To making profits by managing customer lifetime value

Deliver needed product on regular basis at lower price per unit to enjoy customer’s business for longer period

MARKETER RESPONSES AND ADJUSTMENTS

➤ Customer share

From focus on gaining market share

To focus on building customer share

Offering larger variety of goods to existing customers

Training employees in cross-selling and up-selling

MARKETER RESPONSES AND ADJUSTMENTS

➤Target marketing

From selling to everyone

To being best firm serving well-defined target markets

Facilitated by special-interest magazines, TV channels, and Internet newsgroups

MARKETER RESPONSES AND ADJUSTMENTS

➤ Individualization

From selling same offer in same way

To everyone in target market to individualizing and customizing messages and offerings

MARKETER RESPONSES AND ADJUSTMENTS

➤ Customer database

From collecting sales data

To building data warehouse of information about individual customers’ purchases, preferences, demographics, and profitability

“Data-mine” to detect different customer need clusters and make differentiated offerings to each cluster

MARKETER RESPONSES AND ADJUSTMENTS

➤Integrated marketing communications

From reliance on one communication tool such as advertising

To blending several tools

Deliver consistent brand image to customers at every brand contact

MARKETER RESPONSES AND ADJUSTMENTS

➤Channels as partners

From thinking of intermediaries as customers

To treating them as partners in delivering value to final customers

MARKETER RESPONSES AND ADJUSTMENTS

➤Channels as partners

From thinking of intermediaries as customers

To treating them as partners in delivering value to final customers

MARKETER RESPONSES AND ADJUSTMENTS

➤Every employee marketer

From thinking that marketing done only by marketing, sales, and customer support personnel

To recognizing that every employee customer-focused

MARKETER RESPONSES AND ADJUSTMENTS

➤ Model-based decision making

From making decisions on intuition or slim data

To basing decisions on models and facts on how marketplace works

SUCCESSFUL COMPANIES

➤ Sail safely through rough but promising, waters ahead

Change marketing as fast as marketplaces and marketspaces change

Build customer satisfaction, value, and retention

MARKETERS

Aware of effect of globalization, technology, and deregulation

Not satisfy everyone

Start with market segmentation

Develop market offering positioned in minds of target market

MARKETERS

Products successful if they deliver value (ratio of benefits and costs) to customers

Relationship marketing - build enduring, mutually satisfying bonds with customers and other key parties

MARKETERS

Reaching out to target market entails communication channels, distribution channels, and selling channels

Pay close attention to trends and developments

Make timely adjustments to marketing strategies

SMART COMPANIES

Add “higher order” image attributes

Supplement both rational and emotional benefits

Alter marketing activities, tools, and approaches

Keep pace with changes faced today and tomorrow

MARKETING

BREAKING ALL RULES

Instead of commissioning expensive marketing research, spending huge sums on advertising, and operating large marketing departments

Stretch limited resources, live close to customers, and create more satisfying solutions to customers’ needs

Buyers clubs, Creative public relations, and focus on delivering quality products

Win long-term customer loyalty

MARKETING MIX

PRODUCT PRICE PROMOTION PLACE

Product variety Quality Design Features Brand name Packaging Sizes Services Warranties Returns

List price Discounts Allowances Payment period Credit terms

Sales promotion Advertising Sales force Public relations Direct marketing

Channels Coverage Assortments Locations Inventory Transport

SELLERS’ FOUR PS CORRESPOND TO THE CUSTOMERS’ FOUR CS

4Ps 4Cs

Product Customer solution

Price Customer cost

Place Convenience

Promotion Communication

THREE STAGES OF MARKETING PRACTICE

1. Entrepreneurial marketing

2. Formulated marketing

3. Intrepreneurial marketing

Creativity and passion used by today’s and tomorrow’s marketing managers

FUTURE OF MARKETING COMMUNICATIONS

MARKETING COMMUNICATION

Changing rapidly

Past - Businesses create one message and distribute it to large group of recipients

Present - Personalized approach and expect marketing messages that meet expectations

BUSINESSES DELIVER RIGHT MESSAGE AT RIGHT TIME IN RIGHT

CHANNEL

MARKETING COMMUNICATIONS

Highly individualized

Two way conversations in multiple channels

BUSINESSES

Adapt to this approach

Prepare themselves to operate quickly and strategically

Gauge success

Start preparing!

1. GATHER RIGHT DATA

Determining what data needed to segment, personalize and communicate effectively

User’s profiles with social network and mobile information

Collecting additional data for personalization

Incorporating data in other areas (CRM systems, email tracking results, sales history, etc.)

1. GATHER RIGHT DATA

Data architecture setup critical

Centralized database absolutely necessary

Automated processes

2. PUT RECIPIENTS IN CONTROL

Allow recipients to establish choice of message topics, time and frequency at which they receive them and in channel they want

Deliver better communications

Provide wealth of data to better understand wants and needs of audience

2. PUT RECIPIENTS IN CONTROL

Giving recipients to manage preferences give marketers an advantage

Recipients control messaging received

3. CENTRALIZE CONTENT, USE IT EVERYWHERE

Businesses prepare content for particular communication

Don’t consider how content used in other channels

3. CENTRALIZE CONTENT, USE IT EVERYWHERE

Content centralized and used for multiple purposes

Content archive accessed after publication

4. OPERATE IN REAL-TIME

Real-time data management

Real-time decisions

React properly to changes in business environment

4. OPERATE IN REAL-TIME

Social media channels generating content in real time

News/press proliferated quickly

React, generate content/responses and distribute/publish content quickly and efficiently

4. OPERATE IN REAL-TIME

Employees understand culture of business

Communicate on its behalf o be successful

Businesses educate and support employees

Real time communication encouraged

THANK YOU!