Rethinking Marketing

Time to rethink marketing ?

Richard Meyer

The signs are everywhere
Americans Still Cutting Back on the Small Things to Save
Money

 (45%) say they are brown bagging lunch instead of
purchasing it, with 8% having considered doing so;

 Two in five (39%) are going to the hairdresser/barber/stylist less
often and 8% have considered doing so;

 One-third of Americans (34%) have switched to refillable water
bottles instead of purchasing bottles of water while 10% have
considered doing so;

 33% of U.S. adults have cancelled one of more magazine
subscriptions, one in five (19%) have cancelled a newspaper
subscription and 22% have cancelled or cut back on cable
television

 One in five Americans say they have cut down on dry
cleaning (22%) and stopped purchasing coffee in the morning
(21%)

Retailers are eliminating brands
  The world's biggest retailers are wrestling with having too many
types of brand-name products. At the same time, shoppers are
buying less and looking for bargains.
  Unless a particular brand is a top seller in its category, it's getting knocked off the
shelf -- and sometimes getting replaced by a cheaper store brand.
  Market research firm ConsumerEdge Research, expects Wal-Mart and other
sellers will trim several name-brands across categories in coming months, or
negotiate deals to get better pricing.

Demand for simplicity is increasing

Consumers are seeking uncomplicated, user-friendly products and services
that simplify their lives.

It’s a consumers world now
  Easy access to information and friction- free purchasing is
making consumers ever more agile—and less loyal.

  Outraged by corporate malfeasance, people are punishing
companies for unethical governance.

  Even those who don’t need to economize are pursuing a more
wholesome and less wasteful life.

Brand extension = consumer confusion
  The feeling is that as these companies keep extending their [product] lines, it's
only causing confusion for shoppers and not really driving them to buy more
products.

And way too many brand choices
  As a consumer, "Do I really need to decide between 15 different types of
detergent when I go to a store?"

Yet some brands are doing well

Because they focus on the customer

But price leads to a spiral

If you keep lowering your price or offer more promotional
allowances you’re losing brand equity and making it harder to
compete against store brands.

So what’s more important ?

Market
Share Profitability

New Metrics of new marketing

OLD METRIC NEW METRIC
Product Profitability Customer Profitability
Current Sales Customer lifetime value
Brand Equity Customer equity
Market Share Customer equity
Mass Market Ultra target market
Segmentation Microsegmentation
Mass Message Personally relevant
messages
Talking Listening
Gross Rating Points Brand Ambassadors via
social media

Instead of product manager driven

Customer Service

 Empower customer service people to solve customer
Customer problems on the spot.
Service
 Customer service is not an integral part of your brand &
company.

 Have your marketing people call customer service as a customer to
ensure that the experience is representative of your brand.

 Ensure that customer service people have a way to alert key decision
makers as problems become prominent.

 Quantify customer service complaints and solve bottlenecks quickly
or else your marketing dollars could be wasted.

Market Research

 Don’t use market research to validate what you should already
Market know.
Research
 Market research should provide insights not validation.

  Social media can provide a wealth of valuable insights in real time.

 Web analytics can actually show you how consumers are going
through the decision making process when it comes to your product.

 Ensure that when you do market research that the panel is
representative of your best customers.

 Market research online can save you lot’s of time and money.

Customer Relationship Management

  Focus all your efforts on managing the customer
relationship.
CRM
 This means listening to what your customer wants and
ensuring that the relationship is of value to your customers

 Segment your audience by demographics and psychographics to
ensure that CRM communication is personally relevant.

 Measure and optimize CRM programs and evolve into more
segments if necessary. This is essential in an era of microsegmention.

Research & Development
 Is your R&D customer focused or do they do what’s best for
your business and production costs?
R&D
 If you have a hard time explaining what your product does to
customers in prototype than you’re way off the mark.

 Focus on making life easier for consumers.

 If you improve the product but not the customer brand experience
you’re farting in the wind.

And all this is bought together by

Chief customer officer
“An executive that provides the
comprehensive and authoritative view of
the customer and creates corporate and
customer strategy at the highest levels of
the company to maximize customer
acquisition, retention, and profitability.”
Responsibilities include;

  Drive profitable customer behavior

  Create a customer-centric culture:

  Delivering and demonstrating value
to the CEO, the Board, peers, and
employees

Your decisions reveal
who and what you
really value

Drive profitable customer behavior

 To help customers spend more,
and more often, the CCO must
focus on initiatives such as;
  profitability segmentation
  customer retention
 customer loyalty, satisfaction
 improving the customer
experience.

 CCOs should use in-depth
customer insight to inform the sales
and marketing efforts to acquire
more of the “right.

Delivering and demonstrating value

 CCO must strive to deliver
demonstrable value to all
stakeholders, such as the CEO,
the Board, and peers.

 CCOs must be very clear
about their performance
metrics to allay concerns about
performance.

Create a customer-centric culture
 Strong, customer-centric
culture complete with
accountability and ownership at
all levels in the company.

 CCOs must prioritize customer
initiatives to drive the most
profitable initiatives with the
greatest customer impact.

 They must put a face on
customers and help employees
(especially the non-customer-
facing employees) remain
focused on driving customer
value.

Today your company is your brand
Outraged by corporate malfeasance, people are punishing
companies for unethical governance.

In the end….
Your decisions on how you treat your customers reveal who and
what you really value.
The best marketing in the world is not going to save your company or
brand if you can’t execute and put the customer at the center of
everything you do.

Peter Drucker was right “The aim of marketing is to know and
understand the customer so well the product or service fits him
and sells itself”

About me
  Richard Meyer

  My CV http://www.richardameyer.com

  My marketing BLOG http://www.richsblog.com

  MY DTC BLOG http://www.worldofdtcmarketing.com

Marketing linchpin who is an original thinker, provocateur, and
passionate about branding and marketing. Leader who
understands the challenge of of making human connections
inside and outside the organization. Change maker who strives to
bring new creative thinking to current business problems to provide
solutions. The only way to stand out is to exert emotional labor and
be seen as indispensable and to produce interactions that
organizations and people care deeply about. Marketer who has a
depth of knowledge combined with excellent judgment

Rethinking Marketing

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