Jay is currently studying branding
in the net economy.
Mass advertising is wasteful when you can provide an experience
for the same cost.
Advertising
Age - The Advertising Century
Products
are dead. Services are dead.
Sell
offers.
from Ted Levitt's
The
purpose of a business is to create and keep a customer.
To do that, you have to do those things that will make
people want to do business with you.
To do that you have
to produce and deliver goods and services that people
want and value at prices and under conditions that are
reasonably attractive relative to those offer by others
to a proportion of customers large enough to make those
prices and conditions possible.
Customers
buy hopeful expectations, not actual things. The ability
to satisfy those expectations is more effectively communicated
by the packaging than by simple generic description of
what's in the package.
The
total product concept: generic product, surrounded by
expected product, by augmented product, by potential product....
The
form of a product is a variable, not a given. Products
are planned and developed to serve markets.
There
is no such thing as a commodity. All goods and services
are differentiable.
from
Marketing is Everything by Regis McKenna
(HBR 1-2/91)
Knowledge- and experience-based
marketing spells once-and-for-all the death of the salesman.
Twenty years ago
there were fewer than 50,000 computers in use; today more
than 50,000 computers are sold every day.
Today's marketing
is geared toward creating rather than controlling a market.
Several decades ago, sales-driven companies practiced
"any-color-as-long-as-its-black" marketing.
Now it's "let's figure out together whether color
matters to your long-term goal."
Marketing must find
a way to integrate the customer into the company--to create
and sustain a relationship. It's not a function--it's
a way of doing business.
The real goal of
marketing is to own the market.
When you own the
market, you develop your products to serve that market
specifically; you define the standards in that market;
you bring into your camp third parties who want to devleop
their own compatible products or offer you new features
or add-ons to augment your product; you get the first
look at new ideas that others are testing in that market;
you attract the most talented people because of your acknowledged
leadership position.
The
technology embodies adaptability, programmability, and
customizability; now comes marketing that delivers on
those qualities. Today technolgy has created the promise
of "any thing, any way, any time." ...advertising's
dirty little secret: it serves no useful purpose. In today's
market, advertising simply misses the fundamental point
of marketing--adaptability, flexibility, and responsiveness.
The new marketing requires a feedback loop; it is this
element that is missing from the monologue of advertising
but that is built into the dialogue of marketing.
...the new marketing
model, a shift from monologue to dialouge.
The line between
products and services is fast eroding. What once appreared
to be a ridid polarity now has become a hybrid: the servicization
of products and the productivization of services. Marketers
who appreciate the importance of the product-service hybrid
focus on building loyal customer relationships.
Today diversity
costs no more than uniformity.
Marketing a product
is a continuous experiment.
Innovators (2.5%),
early adopters (13.5%), majority, laggards (16%)
"The
only quantitative data I use are what people have done,
not what they are going to do. No great marketing decisions
have ever been made on quantitative data." -- John
Sculley
Customers
are always enthusiastic about future products once they
are introduced. In many cases, there seems to be an infinite
demand for the unavailable.
the process....
analyze primary demand (trends, "the
trade," competition, technology, gov't, consumer
behavior
market segmentation --> product positioning
hope vs. help
Yankelovich:
"Once you discover the most useful ways of segmenting
a market, you have produced the beginnings of a sound
marketing strategy."
devise a marketing mix
product
price
pkg
brand
channels of distribution
physical dist (delivery)
price and margin
promotion
advertising
personal selling
way of doing business
(made to order?)
People buy intangibles
(the sizzle, not the steak).
Y&R
identified typical Merrill Lynch customers as independent-minded
private investors rather than as those who follow the
herd. Merrill Lynch consequently changed its advertising
campaign from a herd of bulls to a solitary bull, and
its slogan from "Bullish on America" to "A
Breed Apart."
Good marketing is:
o association/positioning
(i.d., rep for quality, competition)
o dialog (meets needs)
o building relationships (trust, know you)
o removing barriers
to sale
--Kristen Zhivago
from Gordon Bell's
High Tech Ventures:
Internet
Time Group