Marketing is Dead,

Long Live Marketing

 Content
• Introduction
• Phillip Kotler & Holistic Marketing
• Jagdish Sheth & 4 As Framework
• Kevin Keller & Strategic Brand Management
• Bernd Schmitt & Experiential Marketing
• Venkat Ramaswamy & Future of Competition
• Don Schultz & Marketing Communications
• James Lenskold & Marketing ROI
• Summary
 Introduction
• The presentation is based on marketing concepts
delivered by prominent marketing gurus through
seminars or journals/ books written by them
• Markets have changed, consumers have evolved and so
has Marketing
• Majority of the concepts we have learnt in the past
were effective from the 70s to late 80s. However the
following slides are the latest marketing fundas
• Old icons don’t resonate as well as they once did.
Brands like Starbucks, Google and iPod resonate much
more than old icons like Pepsi, Coke and Levis
 Marketing has to re-examine all of its
central concepts – Philip Kotler
(notes from a recent seminar)
Key concern areas of Marketing
• Fewer new tools for effective message distribution
• Integrated marketing communications under a clear
brand concept than consumer focus
• Need to better spot new needs and new trends & to
work them into new products and services
• Complex measurement tools to account for the
impact of marketing concepts
• No integration of marketing and sales and other key
functions such as R&D, manufacturing & finance
 Empower the Customer – Philip Kotler

• 30- second TV commercial is weakening in reaching the

desired target audience
• sales promotion is taking 70% of the advertising and
promotion budget
• WoM and PR stories are replacing conventional
advertising and promotional tools
• Engage your customer for his first experience
• Ultimately experiential marketing is the only success
for brands/ products
 Marketer must be responsible for driving
business strategy – Philip Kotler
Solutions- Marketing back on track
• Lateral marketing- marketer must also develop
competence in financial and technological matters
• Marketers need to improve their trend spotting
abilities and creativity in bringing new products
• 4 Ps to be turned into 4 Cs which are
• Customer Value
• Customer Cost
• Customer Convenience
• Customer Communication
 Holistic Marketing – Philip Kotler
(Extract from Marketing Management- Kotler & Keller)

Internal Integrated
Marketing Marketing
Marketing & Sales Products & Services

Sr. Management
Holistic Communications
Marketing Channels
Other Departments

Social Relationship
Marketing Marketing
Ethics Customers
Environment & Community Channels
Legal Partners
 Holistic Marketing – Philip Kotler
(Extract from Marketing Management)

Relationship Marketing-
Aim of building mutually satisfying long term relationships
with key parties (customers, suppliers, distributors and other marketing
partners across the value chain)

• Integrate CRM with PRM (Partner relationship marketing)

• Four key constituents for marketing are customers,
employees, marketing partners (channels, suppliers, distributors,
dealers, agencies) and members of financial community
(shareholders, stakeholders, investors)
 Holistic Marketing – Philip Kotler
(Extract from Marketing Management)
Integrated Marketing-
Winning companies will be those that can meet customers
needs economically and conveniently and with effective
communication. Two key themes of integrated marketing
are
• many different marketing activities are employed to
communicate and deliver value
• all marketing activities are coordinated to maximize
their joint effects
• business must integrate their system for demand
management, resource management and network
management
 Holistic Marketing – Philip Kotler
(Extract from Marketing Management)
Internal Marketing-
Marketing is not a department so much as a company
orientation. Marketing thinking must be pervasive through
out the company
Internal marketing must take place at 2 levels
• sales, advertising, customer service, product
management, research must work together from the
customer point of view
• marketing must be embraced by all other departments
of the organization – they must also “think customer”
 Holistic Marketing – Philip Kotler
(Extract from Marketing Management)
Social Marketing-
The cause and effects of marketing clearly extend beyond
the company and the consumer to society as a whole.
Organization's task is to determine the needs, wants, and
the interests of the target markets and to deliver the
desired satisfactions more effectively and efficiently than
competitors in a way that preserves or enhances the
consumers and the society’s well- being
 A brand has to be made affordable and
accessible to the target group – Jagdish Sheth
(Extracts from a published interview)
• Marketers today are too much media centric at a time
when they have to be media agonistic
• There is no longer any single market segment in any major
markets. The market today is fragmented into micro
segments demanding special customized treatment from
products and services
• Marketing has to move away from being product/ brand
centric to customer centric
• Every function and every employee in the organisation has
to ensure that the product is not just acceptable but also
accessible, affordable and distributable
 4 As frame work – Jagdish Sheth

• Awareness- design a product in such a way that it can be

described easily because its so distinctive and the product
itself drives awareness
• Accessible- design a product in such a way that its easily
distributable and meets the supply chain demands with all
the nuances
• Affordable: - The customer’s willingness to pay and the
ability to pay for that product
• Availability: - Is the product available in the desired
format and the desired price for the desired customer
 A great product is the starting point of a
strong brand – Kevin Keller
(Extracts from a published journal)
• Dissatisfaction (consumer) can be the bedrock for certain
products
• Positioning is not just about creating differentiation and
relevance for your brand, but its aggressive, its much about
negating and neutralising the intended differentiation of
your competition
• The 4 Ps of new marketing environment are
• People, Processes, Performance and Programmes
• Role of Promotion- the impetus to get consumers to react
to a strong brand
 A strong brand appeals to both the head and
the heart – Kevin Keller
(Extracts from Strategic Brand Management)
Customer based brand equity model
The model is an application in terms of brand tracking and
providing quantitative measures of the success of brand
building efforts
The model reinforces a number of important branding
tenets five of which are particularly noteworthy and are
discussed in the following slides
 Customer Based Brand Equity Model –
Kevin Keller
(Extracts from Strategic Brand Management)
• Customer Own Brands: - Although marketers must take
responsibility for designing and implementing the most
effective and efficient brand building marketing programs,
the success of those marketing efforts ultimately depend on
how consumers respond. This response, in turn, depends on
the knowledge that has been created in the mind for those
brands (perception is the key word)
• Don’t take shortcuts with brands: - The length of time to
build a strong brand will be directly proportional to the
amount of time it takes to create sufficient awareness and
understanding so that firmly held and felt beliefs and
attitude about the brand are formed that serve the
foundation
 Customer Based Brand Equity Model –
Kevin Keller
(Extracts from Strategic Brand Management)
• Brand must have duality: - Strong long lasting brands
blend product performance and imagery to create a rich,
varied, but complimentary set of consumer responses to the
brand. Rational concerns can satisfy utilitarian needs whereas emotional
concerns can satisfy psychological or emotional needs.

• Brands should have richness: - behavioral loyalty is the

starting point but attitudinal attachment or a sense of
community is almost needed for active recurring
engagement to occur
• Brand Resonance: - to what extent is the marketing
activity affecting the key dimensions of brand resonance-
consumer loyalty, attachment, community and brand
 Brands/ Branding Concepts –
Kevin Keller
(Extracts from Strategic Brand Management)
• Brand Awareness: - it is specifically important to first
establish category identification in some way before
considering strategies to expand brand breadth via needs
satisfied or benefits offered
• Brand Performance: - it is necessary to first link primary
characteristics and related features before attempting to
link additional, more peripheral associations
• Brand Imagery: - it often begins with a fairly concrete
initial articulation of user and usage imagery that, over
time, leads to a broader more abstract brand association of
personality, value, history, heritage and experience
 Brands/ Branding Concepts –
Kevin Keller
(Extracts from Strategic Brand Management)
• Brand Judgments: - it usually begins with positive quality
and credibility perceptions that can lead to brand
consideration and then perhaps ultimately to assessments
of brand superiority
• Brand Feelings: - it usually starts with experiential ones
(i.e. warmth, fun and excitement) or inward ones ( i.e. security, social
approval and self respect)
 Experiential Marketing gives you a cutting
edge – Bernd Schmitt

• As cluttering increasingly blurs product differentiation,

letting consumers experience the product is the key to
remain in consumer minds
• The 4 Ps model is an engineering approach to marketing,
not a customer focused one
• Experiential marketing starts with consumer analysis and
makes sure customer appeal is guaranteed at all levels
• Singapore Airlines, Apple, Starbucks, Virgin Atlantic-
examples of successful brands using experiential marketing
 Customer Experience Management
- Bernd Schmitt

Five Stage Process

• Original customer insight into the experiential world of
the customer
• Building an experiential positioning platform
• Implementation in 3 steps
• in the brand
• in the service
• through innovation
 Customers see higher value when they can co-
create- Venkat Ramaswamy
(notes from a on air interview)
• Deliver unique experience to customers by engaging them
in a personal way thereby making the product purchase a
memorable event
• Co-creation is not about test marketing or getting
customer feedback and acting upon them
• It is all about putting customer experience at the fore-
front of the value co- creation process, and not just about
making customer king or queen
• Customer needs are very dynamic. Shift its focus from a
product to an experience
 Customers see higher value when they can co-
create- Venkat Ramaswamy
(notes from a on air interview)
• Dialogue with the customer: - The key is bettering the
interaction skills, internal sharing of customers and product
feedback
• Continuous Innovation: - Key differentiator
• Indian examples of customer co-creation or experiential
marketing- E-Choupal, Sony TV’s Indian Idol, Landmark
bookstore in Chennai
• Customisation can be applied (has to be) to any industry
 The Future of Competition-
C K Prahlad & Venkat Ramaswamy
(extract from the bestseller of 2005-2006)
DART Theory
• Dialogue: - interactivity, deep engagement and propensity
to act on both sides. Dialogue creates and maintains a loyal
community (example AOL)
• Access: - the traditional focus of the firm and its value
chain was to create and transfer the ownership of a
product. Today the goal of a consumer is access to an
experience not ownership (example Cyber cafes, leasing
automobiles)
 The Future of Competition-
C K Prahlad & Venkat Ramaswamy
(extract from the bestseller of 2005-2006)
DART Theory
• Risk Assessment: - Risk disclosure is emerging as a major
bone of contention between consumers and businesses.
Business leaders must ensure that the focus on risk
assessment and harm reduction does not lead to a defensive
mentality within the firm. Risk management and sharing
risk with the customer creates a new level of trust.
• Transparency: - By building transparency companies can
have a greater control over their fabless customers.
(Combining the building blocks of transparency, risk assessment,
access and dialogue will engage your customers as collaborators)
 Marketing should move from a narrow
definition to a strategic planning function-
(Don Schultz- recent published interview)
• Brands must tie together all its communication and
promotional activities like mass media advertising, PR, Events
and other sales promotional tools
• Brand experience has emerged as a strong philosophy to
deliver a sustainable advantage
• Organise marketing vertically- it should not be restricted to
the marketing department but throughout the organisation
• Marcom managers must first understand that customers are
primary income generators
• At the heart of any marketing and communication
programme, there must be convergence
 Strategic IMC to focus on the customer’s
experience with the product and the firm-
(Extracts from IMC- The Next Generation by Don Schultz)
8 Guiding Principles of IMC
• Become a customer centric organisation- invert the pyramid
• Use outside- in planning- View customers/ prospects not as
units of expense but as income flows to the firm. The goal is
to manage the demand and income flows rather than product
and costs
• Focus on the total customer experience
• Align consumer goals with corporate objectives- only when
marketing is fully aligned with corporate decisions can
relevant IMC programs be developed
 Strategic IMC to focus on the customer’s
experience with the product and the firm-
(Extracts from IMC- The Next Generation by Don Schultz)
8 Guiding Principles of IMC
• Treat Customers as Assets
• Set Customer behaviour objectives- The key ingredient in
the IMC process is influencing behaviour, because it is
behaviours that provide the income flows to the firm
• Streamline functional activities
• Converge Marcom Activities- blending of traditional Marcom
with electronic Marcom and communication activities. With
convergence must come integration
 Markets undergo changes faster than
marketer- Nirmalya Kumar

• Media fragmentation is one of the most crucial reasons for

the demise of manufacturer brands
• Distribution channels have consolidated
• Brands must follow and distribute their products where
consumers want to shop
• Electronic retailing will be important in categories like
books, music and travel
 Measuring marketing performance,
specifically its financial impacts is valuable-
James Lenskold
• Marketing in vestments are made for the ultimate purpose
of acquiring, growing and retaining profitable customers
• Map out the customer funnel which details the different
stages that a buyer progresses through starting as an unaware
prospect and continuing through purchasing activity and long
term retention
• Design and measure marketing that is tightly integrated and
addresses the entire customer funnel
• Marketing strategies must be comprehensive and include
tactics that convert brand equity into incremental sales
 Measuring marketing performance,
specifically its financial impacts is valuable-
James Lenskold
• Marketing in vestments are made for the ultimate purpose
of acquiring, growing and retaining profitable customers
• Map out the customer funnel which details the different
stages that a buyer progresses through starting as an unaware
prospect and continuing through purchasing activity and long
term retention
• Design and measure marketing that is tightly integrated and
addresses the entire customer funnel
• Marketing strategies must be comprehensive and include
tactics that convert brand equity into incremental sales
 ROI must emerge as the primary marketing
measurement- James Lenskold

• The sole purpose of marketing is to get more people to but

more of your products more often, for more money
• The marketing ROI process can be used to provide a
subjective view of retention vs. acquisition marketing
• ROI measurements allow company executives, auditors and
marketing managers to speak the same language in terms of
performance expectations
• Transitioning to ROI as a primary marketing measure offers
the opportunity for improvements in campaign, customer and
corporate profitability
 Summary

• Great products get the buzz

• Experience is the value
• Customer first
• Marketing is philosophy not department
• Make it count
Thank you