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1、Don E. SchultzPh. D.1Dallas, TX Dallas, TX 2A View of the Interactive Marketplace at the Beginning Of the Third Millenium - A Story in Five Parts3Part 1Traditional Marketing and Marketing Communication Are in Trouble - What Are You Doing to Help?4Challenges:uuMarketing being pushed further and furth
2、er down in management levels of the firmuuToo much marketing considered “soft, squishy, not relevant” 5uuMarketing expense increasing - few measures of returns uuToo much attention to mass market/mass media in world of one-to-oneuuAwards, “creativity”, self-adulation 6Most of All, the Impact and Inf
3、luence of Electronic Communication and Commerce - Interactivity7Changing the Marketing and Communication Focus uuFrom tactical activities to strategic managerial decisionsuuDriving shareholder valueuuMeasurability and “outcomes”, not just “outputs” 8Management Alternatives to Increase Shareholder Va
4、lueuuInnovation in products or services uuEnhancements in supply chain managementuuCustomer relationship management - expand marketing capability 9How Can Marketing and Communication Impact Corporate Results?uuIncrease or accelerate cash flowsuuStabilize or reduce volatility of cash flows uuIncrease
5、 shareholder value by building brand equity 10Most Powerful Tools, Brands and Communication!11Both Are Woefully Underdeveloped in Many Organizations12Primary 21st Century Mission:Marketing and Communication to Direct, Drive and Fulfill Corporate Strategy13Questions or Comments?14Part 2Understanding
6、the 21st Century Marketplace 15The Challenge Is Transition Where Where We AreWe AreTransitionWhere Where We Need We Need To BeTo Be161980198019701970196019601990199020002000MarketplaceMarketplaceDevelopment Development Re-emergence ofcompetitionGlobalizationRise of QualityPrice CompetitionCost-Cutti
7、ngRe-engineeringLogistics/DigitalizationTransition of Information TechnologyInteractiveMarketplace17ProductProductConsumerConsumerDistributionDistributionThree Types of Organizations Have Developed HistoricalCurrentInteractive18Product-Driven Organizations Product-Driven Organizations Focus on 4PsFo
8、cus on 4PsuuuProductProductuuuPricePriceuuuPlace (Distribution)Place (Distribution)uuuPromotion Promotion 19Product-Driven Firms Product-Driven Firms RawRawRaw Materials Materials MaterialsTechnologyTechnologyTechnologyFacilitiesFacilitiesMoneyMoneyDistributionDistributionDistributionLocationLocatio
9、nDistributionDistributionDistributionAggregationAggregationNeeds/Needs/WantsWantsPurchasingPurchasingPowerPowerConsumerConsumerMediaMediaChannelChannelMarketerMarketerInformation20Distribution-Driven Firms Distribution-Driven Firms Focus on: Focus on: uuuLocationLocationuuuLogisticsLogisticsuuuChann
10、els Channels uuuUbiquity Ubiquity 21Distribution-Driven Distribution-Driven Firms Firms DistributionDistributionConcentrationConcentrationLocationsLocationsTechnologyTechnologyConsumerConsumerMediaMediaMktr.Mktr.Mktr.Mktr.Mktr.Mktr.ChannelChannel(Logistics)(Logistics)Information22Consumer-Driven Fir
11、ms Consumer-Driven Firms Focus on Focus on uuuConsumersConsumersuuuBrandsBrandsuuuRelationshipsRelationshipsuuuShareholder value Shareholder value 23Consumer-Driven Firms Consumer-Driven Firms Needs/WantsNeeds/WantsNeeds/WantsChoiceChoiceChoicePurchasing Purchasing Purchasing PowerPowerPowerTechnolo
12、gyTechnologyTechnologyConsumerConsumerChannelChannelMktr.Mktr.Mktr.Mktr.Mktr.Mktr.ChannelChannelInformationMediaMediaMediaMediaMediaMedia24Until the Early 1990s, Until the Early 1990s, Every Organization Had to be Every Organization Had to be Either Product or Distribution Either Product or Distribu
13、tion Driven Driven 251980198019701970196019601990199020002000MarketplaceMarketplaceDevelopment Development Re-emergence ofcompetitionGlobalizationRise of QualityPrice CompetitionCost-CuttingRe-engineeringLogistics/DigitalizationTransition of Information TechnologyInteractiveMarketplace26Lack of Reso
14、urces Prevented Us from Knowing Much About Consumers, Customers or Prospects27Information Technology Changed That!28ConsumerConsumerMediaMediaChannelChannelMarketerMarketerInformationProductProductMarketersMarketersConsumerConsumerInformationChannelChannelMktr.Mktr.Mktr.Mktr.Mktr.Mktr.DistributionDi
15、stributionMarketersMarketersMediaMediaConsumerConsumerChannelChannelMktr.Mktr.InformationMktr.Mktr.Mktr.Mktr.ChannelChannelMediaMediaMediaMediaConsumerConsumerMarketersMarketersMediaMedia29ConsumerConsumerMediaMediaChannelChannelMarketerMarketerInformationProductProductMarketersMarketersConsumerCons
16、umerInformationChannelChannelMktr.Mktr.Mktr.Mktr.Mktr.Mktr.DistributionDistribution Marketers MarketersMediaMediaConsumerConsumerChannelChannelMktr.Mktr.InformationMktr.Mktr.Mktr.Mktr.ChannelChannelMediaMediaMediaMediaConsumerConsumerMarketersMarketersMediaMedia30But, Interactivity Has Created a Shi
17、ft of Marketplace Power 31Most Organizations Today Are Struggling with How to:uuBecome consumer focuseduuMarket globallyuuStructure the organization to fit marketplaceuuIntegrate all the activities and resources 32What to Do?33Questions or Comments?34Part 3:Part 3:The Transition of Information The T
18、ransition of Information Technology Drives the Need Technology Drives the Need For Brands, Communication For Brands, Communication And Consumer Relationships And Consumer Relationships 35In the 21st Century, the Brand In the 21st Century, the Brand And Communication Will Be And Communication Will Be
19、 The Firms Only Sustainable The Firms Only Sustainable Competitive Advantages Competitive Advantages uuuNo product advantageNo product advantageuuuNo price advantageNo price advantageuuuNo place/distribution advantageNo place/distribution advantageuuuNo promotion advantageNo promotion advantage 36Th
20、e Shift of Information The Shift of Information Technology Forces the Technology Forces the Organization to Move from Organization to Move from The 4Ps to the 4Rs The 4Ps to the 4Rs 37ConsumerConsumerMediaMediaChannelChannelMarketerMarketerInformationProduct Product MarketersMarketersConsumerConsume
21、rInformationChannelChannelMktr.Mktr.Mktr.Mktr.Mktr.Mktr.DistributionDistribution Marketers MarketersMediaMediaConsumerConsumerChannelChannelMktr.Mktr.InformationMktr.Mktr.Mktr.Mktr.ChannelChannelMediaMediaMediaMediaConsumer Consumer Marketers MarketersMediaMedia38The New 4Rs of MarketingThe New 4Rs
22、of MarketinguuuResponsiveness Responsiveness uuuRelevanceRelevanceuuuReceptivityReceptivityuuuRelationships Relationships 39All of Which Are Bound Up in Brands and Branding 40MarketerConsumerBRANDBrands Are Relationships Brands Are Relationships 41The Reason the Brand Becomes More Important: Interac
23、tivity Is a Different Marketing ModeluuFrom “mass” to “interpersonal”uuFrom “marketer advantage” to “brand compatibility” 42uuFrom “short-term” to “long-term”uuFrom “transactions” to “relationshipsuuFrom “persuasiveness” to “shared values”43Brands Create Reciprocity With Consumers, Not Marketer Adva
24、ntage! 44A New Brand-Consumer Model Is RequireduuNot just the traditional value of the consumer to the brand, I.e., financial value to be extracteduuInstead, value of the brand to the customer or consumer - fills needs, wants, desires, etc. in addition to traditional value 45A New Way to Think About
25、 RelationshipsStarting Point:Starting Point: uuTwo entities in the relationship; two points of view to Two entities in the relationship; two points of view to consider - in this case consumers and brandsconsider - in this case consumers and brandsuuStrong Consumer-Brand relationships require some mu
26、tual Strong Consumer-Brand relationships require some mutual level of interestlevel of interestuuThis “mutual interest” is value - begin thinking about This “mutual interest” is value - begin thinking about relationships as a mutual value exchange relationships as a mutual value exchange 46New Consu
27、mer Brand Relationship ModelValue of the Brand to the Consumer(Consumer POV)Value of Consumer to the Brand(Brand POV)HIGHLOWHIGHLOWCurrent &Potential Value ($)C-BCompatibilityRelationship Strength = Relationship Strength = f f ( (Consumer Value, C-B CompatibilityConsumer Value, C-B Compatibility) )S
28、TRONGRelationshipsMODERATEWEAKMODERATE47Define & Assess C-B RelationshipsValue of the Brand to the Consumer(Consumer POV)Value of Consumer to the Brand(Brand POV)HIGHLOWHIGHLOWCurrent &Potential Value ($)C-BCompatibilityRelationship Strength = Relationship Strength = f f ( (Consumer Value, C-B Compa
29、tibilityConsumer Value, C-B Compatibility) )STRONGRetention StrategiesMODERATEBusiness-Building StrategiesWEAKLow PriorityMODERATEBrand-Building Strategies48Define & Assess C-B RelationshipsValue of the Brand to the Consumer(Consumer POV)Value of Consumer to the Brand(Brand POV)HIGHLOWHIGHLOWBehavio
30、ralDataAttitudinal DataRelationship Strength = Relationship Strength = f f ( (behaviors, attitudesbehaviors, attitudes) )STRONGRetention StrategiesMODERATEBusiness-Building StrategiesWEAKLow PriorityMODERATEBrand-Building Strategies49Define & Assess C-B Relationships C-B CompatibilityBrandBrandProdu
31、ct offers Product offers CommunicationCommunication(image)(image) Marketing MarketingcapabilitiescapabilitiesConsumerConsumerNeeds Needs MindsetsMindsetsEnvironmentsEnvironments Attitudinal Commitment to the Brand Customer Satisfaction Brand Share of PreferenceConsumers View Consumers View of the Br
32、andof the BrandBehavioralCommitment(SOR)ConsumerValue(CBR)Brands View of Brands View of the Consumerthe Consumer50All Done in “Real Time”51ConsumerConsumerMediaMediaChannelChannelMarketerMarketerInformationProduct Product MarketersMarketersConsumerConsumerInformationChannelChannelMktr.Mktr.Mktr.Mktr
33、.Mktr.Mktr.DistributionDistribution Marketers MarketersMediaMediaConsumerConsumerChannelChannelMktr.Mktr.InformationMktr.Mktr.Mktr.Mktr.ChannelChannelMediaMediaMediaMediaConsumer Consumer Marketers MarketersMediaMedia52The Primary Way to Build True Brand Value, i.e., Relationships, Will be Through I
34、ntegrating All Forms of Marketing Communication 53Product DesignProduct DesignPricingPricingDistributionDistributionAdvertisingAdvertisingSales PromotionSales PromotionIn-StoreIn-StoreDisplaysDisplaysDirectDirectMailMailCustomer ServiceCustomer ServiceConsumer View of BrandCommunication54Traditional
35、TraditionalMarketing andMarketing andCommunicationCommunicationConsumersConsumersand and ProspectsProspectsNewNewInteractiveInteractiveMarketingMarketingandandCommuni-Communi-cationcationMarketplace ResultsMarketplace Results55Building and Maintaining Brand Reciprocity May Become the Most Important
36、Activity for the Firm56And, That Will Require a Whole New Way of Thinking About, Investing in and Measuring The Results of Brand Programs57The Conundrum:uuHow to build long-term, consumer-brand value using a short-term, interactive systemuuHow to invest for long-term brand returns, using short-term,
37、 “real time” marketing activities58Questions or Comments?59Part 4Measuring the Financial Returns from Brand Communication Programs 60In 1961, the Communications Industry Abandoned Any Attempt to be Financially Responsible Adults uuHierarchy of Effects theoryuuDAGMAR 61Traditional “Advertising-Based”
38、 Traditional “Advertising-Based” View of CommunicationsView of CommunicationsConvictionPreferenceKnowledge Attitudes/AwarenessPurchaseBehaviorMediaAdver-tisingOne-WayOne-WayLinearLinear“Acting on Consumers”62Those Attitudinal Measures Are Still Prevalent uuAttitude and awarenessuuRecall and recognit
39、ionuuIntent-to-buyuuTracking studiesuuShare of voice 63Despite the Fact that We Still Have Great TroubleConnecting Attitudes to Behaviors and Even More to Sales and Financial Returns64A Solution: Measuring Consumer Behaviors Over Time uuClosed loop systemsuuIncremental incomeuuUse of income flowsuuF
40、inancial time frames65Basic Premise: Brands and Consumers Are Firms AssetsuuProduce incomeuuRenewableuuManaged for growth and valueuuDepreciate over time 66Closed Loop SystemsMeasurableConsumerBehaviorPresentConsumerDatabaseMeasurable, Measurable, Marketer-Controlled Marketer-Controlled Brand Messag
41、esBrand MessagesNewMeasuresUncontrollableBrand MessagesFrom EnvironmentBase Measure$ Income Flows67Marketing Communication Marketing Communication Planning MatrixPlanning MatrixBrandBrandMessagesMessagesBrandBrandIncentivesIncentives Short- Term(Fiscal Year) Long- Term(Future Years)68We Need a Diffe
42、rent We Need a Different Investment Approach:Investment Approach:Separate Separate Business-Building Business-Building From Brand-Building From Brand-Building uuuLong-term vs. short-termLong-term vs. short-term69Definitions:Definitions:uuuBusiness-Building: returns Business-Building: returns within
43、organizations fiscal yearwithin organizations fiscal yearuuuBrand-Building: returns over Brand-Building: returns over multiple yearsmultiple years70 Business Business BuildingBuildinguuuShort-term Short-term returnsreturnsuuuTransactionsTransactionsuuuImmediate Immediate expenseexpenseuuuOn the marg
44、inOn the marginuuuVariable costVariable cost Brand Brand BuildingBuildinguuuLong-term Long-term returnsreturnsuuuBrand as assetBrand as assetuuuAmortized/ Amortized/ accrualaccrualuuuReplenishmentReplenishmentuuuFixed CostFixed Cost71Measuring Returns on Marketing and Communication ProgramsuuIncreas
45、e in cash flowsuuAcceleration of cash flowsuuStabilization of cash flows uuIncrease in brand equity or shareholder value72In an Interactive Marketplace Keys to Success Will BeuuConsumer focusuuAchieving corporate objectivesuuBrands and brandinguuMeasurability73A New Planning ModelPlanDevelopImplementTraditionalTraditional74AdaptINTERACTIVEINTERACTIVESenseRespond75Part 5What Do You Need to Do to Meet the Challenges?76Questions or Comments?77Thank You for Your Time, Your Attention and Your Interest 78
