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Current Marketing Issues Seminar. BA635 Dr. Ed Forrest Fall * 2009. E. Telephone: (O)786-4161 ( Cell) 874-8784 Email: [email protected] W3site : http://www.cbpp.uaa.alaska.edu/afef /. Everything is Online. Tonight:. Examine logic & paradigm of course… - PowerPoint PPT Presentation
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Current Current Marketing Marketing
Issues SeminarIssues SeminarBA635
Dr. Ed ForrestFall * 2009
Telephone: (O)786-4161
(Cell) 874-8784
Email: [email protected]
W3site: http://www.cbpp.uaa.alaska.edu/afef/
E
3
Everything is OnlineEverything is Online
Tonight:
Examine logic & paradigm of course…
which will guide our exploration of
“Current Marketing Issues”
Examine logic & paradigm of course…
which will guide our exploration of
“Current Marketing Issues”
5
What is Marketing
?
6
Everybody is a Marketer
Everybody promotes/ sells themselves– – To get job/ promotion– To get date/ mate
Everybody has their price…………………
7
Everyday You Market Yourself
Your packaging–clothes, piercing, tattoos, cars, etc.
We all engage in “Positioning & Differentiation”
8
& Always been Marketers
I’m I’m
calling it calling it
HOTHOT
I’m I’m
calling it calling it
HOTHOT
““The Dawn of Marketing”The Dawn of Marketing”““The Dawn of Marketing”The Dawn of Marketing”
Innate sense of exchange
1,000’s of years…
bartered & traded “branded” goods & services
I thinkI think
might be might be
betterbetter
I thinkI think
might be might be
betterbetter
Marketing DefinedMarketing Defined
a FUNCTIONa PROCESSa PERFORMANCEa FUNCTION & PROCESS > Function = ORIENTATION
Classic Functional Definition
All activities performed in between:
The Point of ProductionThe Point of Production
&
The Point of ConsumptionThe Point of Consumption
11
11stst Formal Definition Formal Definition ~1919~1919
Marketing defined as ‘‘the manner in the manner in which the product which the product is disposed of, the is disposed of, the way in which it is way in which it is distributed…, distributed…, through various through various channels of channels of trade.” trade.”
*Marketing and Merchandising by Ralph Butler & John Swinney,
•Book distinguishes marketing from merchandising,
•w/ marketing being something manufacturers do •& merchandising being the domain of jobbers; retailers.
Marketing DefinedMarketing Defined -
1935 -
“The performance of business
activities that direct the flow of goods &
services from producers to consumers.”
Marketing Defined-Marketing Defined-as a Process- 1985as a Process- 1985
"The process of planning & executing the
conception, pricing, promotion & distribution
of ideas goods & services to create exchange & satisfy individual &
organizational objectives"
The Latest Official AMA The Latest Official AMA DefinitionDefinition
"Marketing is an organizational function & a set of processes
for creating, communicating & delivering value to customers
& for managing customer relationships in ways that benefit the organization & its stakeholders."
In 2004- AMA Re-defined MarketingIn 2004- AMA Re-defined Marketing
Why the changed focus?
What happened between 1985 & 2004 that made the AMA change the definition of marketing?
17
Marketing should be customer-
centric -- not brand-centric"
Marketing should be customer-
centric -- not brand-centric"
The 1985 definition was not encompassing enough. The new definition more clearly infuses the customer into marketing."
The 1985 definition was not encompassing enough. The new definition more clearly infuses the customer into marketing."
The AMA Rationale: “Technology & marketing been changing quite rapidly over last five to 10 years…
Marketing > Function =An Orientation ”
“Marketing is so basic that it cannot be considered a separate function on a par w/others such as manufacturing or personnel…
Marketing > Function =An Orientation
“Marketing is…
…the whole business seen from the point of view of its final result, -from the customers’ point of view.”
Management Reorientation: The Marketing ConceptThe Marketing Concept
Focus on Focus on ConsumerConsumer–Not Not productproduct
Long –Term Long –Term RelationshipsRelationships Not Short-term Sales
Management Reorientation: Relationship Marketing
Long-term Wide -Angle view of the customer
build life-long relationship in the hope of establishing long-term repeat
purchasing.
Losing a customer means losing the entire stream of purchases over a
lifetime of patronage =
Customer Lifetime Value
Estimate Customer Lifetime Value
(CLV)
1. Estimate the number of purchase occasions by the customer over a given interval…
2. Estimate the average amount spent per visit.
3. Estimate likely additional purchases thru cross selling & upselling
4. Subtract the costs of maintaining the account per visit.
5. Add the value of the new referrals by the customer.
6. Take the present value of this net income stream with an appropriate discount rate.
Can cost 5 times as much to
acquire a new customer …….
vs. keep an existing one
Costs of new customer acquisition have increased dramatically:
Can cost 5 times as much to
acquire a new customer …….
vs. keep an existing one
Costs of new customer acquisition have increased dramatically:A lot of Media + Not much Loyalty
Retaining an additional
5%5% of customers each year… …
……can increase profits by 25-35%25-35%
Retaining an additional
5%5% of customers each year… …
……can increase profits by 25-35%25-35%
Net Present Value
Marketing’s new definitionreflects a broadened focus --
Was focused on short term profitable transactions… Now look at customers' lifetime value
Was focused on capturing new customers…. Now focus on keeping existing customers
Was focused on mass- media advertising...... Now use integrated strategy w/ all points of
contact Was segmented on geo/demographic variables
Now use all relevant variables, especially behavioral variables -- usage rate & loyalty
Performance was measured by financial metrics… Now also measured strategic & customer-
satisfaction metrics
Changed focus--resulted in restructuring:
Company was organized by product units..... Now organized by customer segment
The marketing department did the marketing… Now everyone does some marketing
Company was the unit of analysis......... Now whole value chain is unit of
analysis
Had individual / hierarchical work structures… Now cross functional teams
Marketing
Next Step- ID the issues…
2008=27.
1 million
in .12 sec
1.2 billion
in .4 sec
GOOGLE- CAFFEINEhttp://www2.sandbox.google.com/
57 million
MORE RELEVANT
in .25sec
As it is -On Any Given Day- On Any Given Day- One can find Issues ofOne can find Issues of:
Product Quality
Service Quality
Consumer Confidence/Satisfaction
Value/Pricing Practices
Free/Fair trade
Globalization
Advertising (volume, veracity, political-correctness)
What the issues are--
Marketer- Issues = factors
that affect sales
• Consumer-Issue = factors
that affect one’s sensibilities
Depends on Your Perspective:
Marketing performance The Creation of Customer Satisfaction & ValueBuyer Behavior Relationship Marketing Inter-firm Relationships in Marketing Services Marketing & Service Quality Competition & Strategy Marketing and Information Technology Marketing Globally Ethics and Legal Issues in Marketing
Marketing Issues- as delineated Marketing Issues- as delineated by anby an old UAA Syllabus old UAA Syllabus……
More Issues / Other Syllabi
Bad Marketing Ideas Future Markets Marketing High TechnologyProduct By Design The Next Big Market Generational Divide Asian-American ConsumersWhy Service Stinks
Bad Marketing Ideas Future Markets Marketing High TechnologyProduct By Design The Next Big Market Generational Divide Asian-American ConsumersWhy Service Stinks
ReMarketing Old Brands Kamikaze Pricing The Old Pillars of New Retailing Global Marketing In The New Millennium Segmenting Global MarketsThe Nation as Brand Michael Porter’s Big Ideas Marketing Myopia
ReMarketing Old Brands Kamikaze Pricing The Old Pillars of New Retailing Global Marketing In The New Millennium Segmenting Global MarketsThe Nation as Brand Michael Porter’s Big Ideas Marketing Myopia
“Clashing Views on
Controversial Issues in Marketing”
Could of used the text--
Does Marketing Have Appropriate Boundaries– on what & how it “sells”?
Is the practice of Multilevel Marketing (ie Mary Kay/ pyramid schemes) legitimate?
Has the “Keep It Simple” concept become “All Change, All the Time?”
Is Relationship Marketing a Tenable Concept?
Does Cause-Related Marketing Marketing Benefit All Stakeholders?
Is Mass Customization the Wave of the Future?
Are Outrageous Prices Inhibiting Consumer Access to Life-Sustaining Drugs?
Will E-Commerce Eliminate Traditional Intermediaries?
Is Communications Technology “Death of the Salesman”?
The New Marketing Paradigm Shift: Are Consumers Dominating the Balance of Power in the Marketplace?
Question Addressed
Fact is--these & most issues…
Are RE-CURRENT
issues- that Ebb & Flow
w/ socio-economic
events
We could- examine these issues 1 by 1…
Boring!
Too Simple
& Just too
Superficial
Examining only symptoms --not diagnosing the
cause
“Yes… you seem to be suffering
from a marketing issue….”
Ergo- the Real Question
is….
Ergo- the Real Question
is….Where do marketing issues come from?
Marketing’s “utility”/value derived from its Facilitation of Exchange!
Willing
to sell
Willing
to buy
Temporal Utility
Spatial Utility
Transactional Utility
Marketing
Key Point: Keep Marketing in Perspective
Anything/Everything one does to facilitate
exchange
Whatever impactsWhy- What- Where- When- How Exchange occurs…
is (or becomes) an Issue…
Marketing Issues in Perspective
Marketing - part of Business & Business - part of Society
Marketing
Business Society
“Societal Change” creates
“issues” for Business…
which creates
“issues” for Marketing
One needs to identify-anticipate-
understand
Thus- in order to identify- anticipate- understand
Marketing Issues in particular
Societal Change in general
Society Defined:Society Defined:
A group of humans broadly distinguished by:
mutual interests, participation in
characteristic relationships,shared institutions, &a common culture
Hence- our search for marketing issues begins w/ examination of…
Patterns of/changes to:
human interests, relationships, institutions &
culture…
…become marketing issues
THUS-
In the final analysis marketing strategy is formulated to
address…
& what better time to study
Societal Change
…We are living thru one of the great periods
of societal change in the
history of humankind…
… in the way we live, live,
communicate,communicate,work, produce work, produce & consume…& consume…
… in the way we live, live,
communicate,communicate,work, produce work, produce & consume…& consume…
We’re in midst of
next great Paradigm Paradigm
ShiftShift……
We’re in midst of
next great Paradigm Paradigm
ShiftShift……
"In a time of change, it is learners who inherit the future. --The learned find themselves well equipped to live in a world that no longer exists." — Eric Hoffer
Re-imagine!: Business Excellence in a Disruptive Age
“ -- that shift will accelerate as technological change
accelerates…” “It's all so strange and different
that I don't even know what a superlative for it would be…”
www.tompeters.com
Our Place in TimeAugust 27, 2009
In Context of: Human Evolution & Technological Development
YEARS AGO
Hominid Age 2,000,000
Homo Sapiens 100,000 yrs
Tribal Age 25,000 yrs
Agricultural Age 10,000 yrs
Scientific Age 380 yrs (1500-1770)
Industrial Age 180 yrs (1770-1950)
Information Age 70 yrs (1950-to date)
There is– Something Curious Going On…
Billions of Years Ago
12 Big Bang (MEST)
11.5 Milky Way (Atoms)
8 Sun (Energy)
4.5 Earth (Molecules)
3.5 Bacteria (Cell)
2.5 Sponge (Body)
0.7 Clams (Nerves)
0.5 Trilobites (Brains)
0.2 Bees (Swarms)
0.100 Mammals
0.002 Humans, Tools & Clans Co-evolution
Generations Ago
100,000 Speech
750 Agriculture
500 Writing
400 Libraries
40 Universities
24 Printing
16 Accurate Clocks
5 Telephone
4 Radio
3 Television
2 Computer
1 Internet/e-Mail
0 AI & Nano-tech
PhysicalTechnological
The
Law of Accelerating Returns
explains why
technology & evolutionary processes
progress in an exponential fashion
- observed timeintervals between significant techno-advances ….
3 million years ago collective rock throwing; early stone use
1.5 million years ago lever, wedge, inclined plane
500,000 years ago control of fire
50,000 years ago bow and arrow; fine tools
5,000 years ago wheel and axle; sail
500 years ago printing press with movable type; rifle
60 years ago commercial digital computers
15 years ago commercial internet
Not only is “progress”
Exponential
it is
Predictable
Transistor Doublings (2 years)
DRAM Miniaturization =5.4 years
Processor Performance (MIP Speed doubles every 1.8
years)
price/performance doubles every 12-18 months
Brad DeLong (2003) noted that memory density… predictably outgrows microprocessor density…..which predictably outgrows wired bandwidth….. which predictably outgrows wireless.
Brad DeLong (2003) noted that memory density… predictably outgrows microprocessor density…..which predictably outgrows wired bandwidth….. which predictably outgrows wireless.
Expect: 1st: New Storage Apps, 2nd: New Processing Apps, 3rd: New Communications Apps, 4th: New Wireless AppsExpect: 1st: New Storage Apps, 2nd: New Processing Apps, 3rd: New Communications Apps, 4th: New Wireless Apps
Given Our Current State of Socio-Cultural Evolution & Techno development –
What can we predict?
Hominid Age 2,000,000
Homo Sapiens 100,000 yrs
Tribal Age 25,000 yrs
Agricultural Age 10,000 yrs
Scientific Age 380 yrs (1500-1770)
Industrial Age 180 yrs (1770-1950)
Information Age 70 yrs (1950-2020)
Symbiotic Age 30 yrs (2020-2050)
Singularity ≈ 2050
Past-Present & Near Future Subcycles:
A 30-year cycle, from 1990-2020 – E volve from 1st gen "stupid net “ web1.0—to 2nd gen
social net Web 2.0--to-- Web 3.0- intelligent AI embedded net A 20-year cycle, from 2020-2040
– LUI network, Biotech, Adaptive Robots, advanced AI A 10-year cycle, from 2040-2050
– LUI personality capture, Mature Self-Reconfig./Evolutionary Computing.
2050: Singularity – Progressively shorter 5-, 2-, 1-year tech cycles, each more
autocatalytic, seamless…..
The Symbiotic
Age
The Symbiotic Age From GUI to LUI A time when computers “speak our language”
A time when our technologies are very responsive to our needs & desires
A time when humans & machines are intimately connected & always improving each other
The Knowledge Navigator
“The future’s already here. --It’s just not evenly distributed yet.” ― William Gibson
Personality Capture &
Transhumanity
In the long run, we become seamless w/ our machines.“Technology is becoming organic. Nature is becoming
technologic.”
In the long run, we become seamless w/ our machines.“Technology is becoming organic. Nature is becoming
technologic.”
Robo Sapiens
AIST and Kawada’s HRP-2 “Huey and Louey”
The Symbiotic AgeA time when we will begin to feel “naked” without our computer “clothes.”
UCT in Everything you wear-
washable garments w/ miniaturized in-ear speakers /solar cells to provide energy
technology woven into fabric
components allowing many functions to be almost `built in' to our bodies, creating a `second skin‘
UCT Enhanced Jewelry
embed functional technology into jewelry & body accessories -- rings, necklaces, earrings, glasses and watches. - -
for body adornment and for more intimate and discreet communication, information gathering and entertainment.
RFID- everywhere & in everything
SmartCode making0.25mm chips
targetcost 5-10 cents ..w/15-20 feetrange
Manufacturing capacity10+ billion a year
Invisible, intelligent wireless tickets
Can be read in yourpocket at 25 metres
Ultra-wide bandfrequency
“One-ticket fits all”
Ski Lift RFID Swatch passes
RFID – Shopping Tech
Future-integrated-seamless world of sensing & sharing
RFID Activated Interactive billboards…On your way to the
store (that is if you still go to stores)
The i-board will recognize you & based on your past purchase profile – make you an offer (based on data-mined calculations) that you can’t refuse Interactive B’boards: 1 & 2
Past-Present & Near Future Subcycles:
A 30-year cycle, from 1990-2020 – E volve from 1st gen "stupid net “ web1.0—to 2nd gen
social net Web 2.0--to-- Web 3.0- intelligent AI embedded net A 20-year cycle, from 2020-2040
– LUI network, Biotech, Adaptive Robots, advanced AI A 10-year cycle, from 2040-2050
– LUI personality capture, Mature Self-Reconfig./Evolutionary Computing.
2050: Singularity – Progressively shorter 5-, 2-, 1-year tech cycles, each more
autocatalytic, seamless, human-centric.
Within a quarter century, non-biological intelligence will match the range and subtlety of human intelligence
The Singularity is Near
Course Organizing ParadigmCourse Organizing Paradigm“… begin in a more or less inductive or
empirical fashion by identifying
what all civilizations
have in common”
Alvin Toffler, Previews & Premises (William Morrow & Co. New York, 1983) Page197
All civilizations have:
an energy system…
a method of producing goods & services…
a system for distributing those goods & services…
Energy, production & distribution are all … tied together… to form a
TECHNOSPHERE
Every civilization has a
Socio-sphere consisting of interrelated social
institutions, associations, reference & affinity groups
“All societies have some sort of communication infrastructure– an
All societies operate within a ‘bio-sphere’
.. have a ‘power-sphere’ -- authority allocated thru formal & informal political institutions
& a ‘psycho-sphere’-- intimate relationships, subjectivity, personality.” (ibid, pg.198)
Change in Change in one one
sphere sphere Impacts Impacts
other other SpheresSpheres
“Put together these spheres encompass most all that goes on in any civilization or society”
BIOBIO
SOCIOSOCIO
TECHNOTECHNO
PSYCHOPSYCHO
INFOINFO
POWERPOWER
When change concurrently impacts
BIOBIOPSYCHO
TECHNO
SOCIOSOCIO
INFO
& ripples thru & across all Spheres…
You have a paradigm shift in the principles & processes the define a civilization…
Social Wave Theory: Spheres of society come together in waves of associated & intertwined changes.
Great Waves of Civilization
1st Wave ~8000BC Hunter Gatherer To Agricultural Age
2nd Wave ~1750’sAgricultural Age To Industrial Age
3rd Wave ~1950’sIndustrial Age To Information Age
Toffler's Waves Agricultural Industrial Technological
Key Commodity Land Capital Data
TechnoSphereEnergy.......
Man-imal Fossil Bio-Tech
Technology..... Widgets Electromechanical Digital/Genetic
Production........ Crafted/Self Use Mass/Exchange Prosumptive
Distribution..... Restricted Mass Specialized
Marketing 1:1/ Barter Product-centric Consumer-Centric
InfoSphere Communication Interpersonal Mass-Mediated Interactive
SocioSphere Relationships
Spiritual Contractual Mutual/Networked
Business Indiv./Partnership Corporation/Bureaucratic Conglomerate/Ad Hoc
Family............ Extended Nuclear Expanded
Education Elitist In Mass/Standardized Specialized/Life-Long
PowerSphere Authority..... Inherent Elected Semi-direct
PsychoSphere Identity....... Inherited Divided Self Defined/Discovered
1st Wave1st Wave 3rd Wave3rd Wave
LANDLAND
•Basis of economy•Life organized ‘round village•Economy Decentralized•Every village produce most of its necessities
CAPITALCAPITAL
•Like land- a zero sum commodity*
•Necessary for control of Production-Labor & Raw materials
InformationInformation
Uniquely different from previous key commodities
KEY COMMODITY2nd Wave2nd Wave
What’s so different about information?
•Expandable- infinity expansive commodity
•Transportable- geography no longer matters
•Compressible- can be summarized, encoded
•*Sharable- Value increases when shared
Toffler's Waves Agricultural Industrial Technological
Key Commodity Land Capital Data
TechnoSphereEnergy....... Man-imal Fossil Bio-Tech
Technology..... Widgets Electromechanical Digital/Genetic
Production........ Crafted/Self Use Mass/Exchange Prosumptive
Distribution..... Restricted Mass Specialized
Marketing 1:1/ Barter Product-centric Consumer-Centric
InfoSphere Communication Interpersonal Mass-Mediated Interactive
SocioSphere Relationships Spiritual Contractual Mutual/Networked
Business Indiv./Partnership Corporation/Bureaucratic Conglomerate/Ad Hoc
Family............ Extended Nuclear Expanded
Education Elitist In Mass/Standardized Specialized/Life-Long
PowerSphere Authority..... Inherent Elected Semi-direct
PsychoSphere Identity....... Inherited Divided Self Defined/Discovered
TechnoSphere
-Energy
TechnoSphere
-Energy1st Wave: MANIMAL winches, wedges, catapults, winepresses, levers & hoists –amplified by man & animals
2nd Wave -
Electromechanical –
“w/ moving parts, belts, bearings & bolts– clacking & ratcheting along”
99
Initial Electro = Hydro & Direct Current necessitated Local Sourcing
Alternating allowed Central Utilities w/ Long-D Dist.
100
ProductionNew Technologies powered by New Energy sources enabled mass production…
Adam Smith -1776-w/ the pin lesson & concept of “man-“man-ufacturing”ufacturing”
Applied in 1908 by Ford in production of Model T
New Technologies powered by New Energy sources enabled mass production…
Adam Smith -1776-w/ the pin lesson & concept of “man-“man-ufacturing”ufacturing”
Applied in 1908 by Ford in production of Model T
Characterized by:Hi energy inputHi waste pollution Low skillRepetitive workStandardized goodsCentralized control
Division of Labor
The Pin:The Pin:
One craftsman produced ~20 pins/day
Breaking production into 18 steps-
10 workers-w/ each performing 1-2 specialized tasks produce 4,800 pins/day
The Pin:The Pin:
One craftsman produced ~20 pins/day
Breaking production into 18 steps-
10 workers-w/ each performing 1-2 specialized tasks produce 4,800 pins/day
The Model TThe Model T Requires 7,882 tasks requiring:
“949 strong men3,338 ordinary men670 legless 2,637 one legged2 armless715 one armed10 blind men”*
The Model TThe Model T Requires 7,882 tasks requiring:
“949 strong men3,338 ordinary men670 legless 2,637 one legged2 armless715 one armed10 blind men”*
*autobiography
3rd Wave Technologies
Micro-Electronics
Information Processing
Bio-Facturing
Nano-Technology
Micro-Electronics
Information Processing
Bio-Facturing
Nano-Technology
Intelligent
Integrated
Ecological
Economic
Intelligent
Integrated
Ecological
Economic
104
Info-Processing, Applications &
Storage
2010 20302020
105
106
107
Toffler's Waves Agricultural Industrial Technological
Key Commodity Land Capital Data
TechnoSphereEnergy.......
Man-imal Fossil Bio-Tech
Technology..... Widgets Electromechanical Digital/Genetic
Production........ Crafted/Self Use Mass/Exchange Prosumptive
Distribution..... Restricted Mass Specialized
Marketing 1:1/ Barter Product-centric Consumer-Centric
InfoSphere Communication Interpersonal Mass-Mediated Interactive
SocioSphere Relationships
Spiritual Contractual Mutual/Networked
Business Indiv./Partnership Corporation/Bureaucratic Conglomerate/Ad Hoc
Family............ Extended Nuclear Expanded
Education Elitist In Mass/Standardized Specialized/Life-Long
PowerSphere Authority..... Inherent Elected Semi-direct
PsychoSphere Identity....... Inherited Divided Self Defined/Discovered
2nd Wave - vast majority goods & services destined for exchange (Sector B)Virtually wiped out goods produced for self-consumption (Sector A)
Created civilization where almost no one– not even farmer was self-sufficient
2nd Wave - vast majority goods & services destined for exchange (Sector B)Virtually wiped out goods produced for self-consumption (Sector A)
Created civilization where almost no one– not even farmer was self-sufficient
Dominant Economic Sector 1st Wave=
Sector A 2nd Wave= Sector B
3rd Wave
Mixed
ProductionProduction Crafted/ for
Self Use
Mass/ for Exchange
Prosumption
Prosumption
3rd Wave Rise of PROSUMPTION:“De-Marketization” of the Economy”
1970’s few self service retail outlets nor tools, building materials, medical instruments sold to consumers
1980’s DIY explosion in full force
3rd wave characterized by massive growth
of sector A
1970 1980
Gas 8% 70%
Tools <30% >70%
PG ID 0 ~20
million
Self-
Serve
3rd wave Emergence of Twinsumption & Twinsumers
www.trendwatching.com/trends/TWINSUMER.htm
Collaborative filtering = the method of making automatic predictions about the interests of a user by collecting taste information from many users….
Toffler's Waves Agricultural Industrial Technological
Key Commodity Land Capital Data
TechnoSphereEnergy.......
Man-imal Fossil Bio-Tech
Technology..... Widgets Electromechanical Digital/Genetic
Production........ Crafted/Self Use Mass/Exchange Prosumptive
Distribution..... Restricted Mass Specialized
Marketing 1:1/ Barter Product-centric Consumer-Centric
InfoSphere Communication Interpersonal Mass-Mediated Interactive
SocioSphere Relationships
Spiritual Contractual Mutual/Networked
Business Indiv./Partnership Corporation/Bureaucratic Conglomerate/Ad Hoc
Family............ Extended Nuclear Expanded
Education Elitist In Mass/Standardized Specialized/Life-Long
PowerSphere Authority..... Inherent Elected Semi-direct
PsychoSphere Identity....... Inherited Divided Self Defined/Discovered
11stst Wave Wave 3rd Wave3rd WaveInterpersonalInterpersonal
Face to faceFace to face
1:1Augmented by:•Listening post
•Distance Runner•Town Crier
•Pigeon•Pony Express
Mass
Mediated
1:Many•Newspaper•Magazine
•Film•Radio
•TV
InteractiveInteractive
VirtualVirtualAny 1:Every 1
Networking: many-to-many
Internet•WiFi
•Cellular•Satellite
The INFOSPHERE
22ndnd Wave Wave
Media EvolutionFrom Mass Mind to Blip Culture
“Instead the masses receiving the same message-
smaller fragmented groups/individuals send &
receive their own thoughts & images” …(ergo the BLOG)
“On a personal level .. besieged by blips… Info-
Blips that are contradictory & unrelated”
Toffler- 1980
Toffler's Waves Agricultural Industrial Technological
Key Commodity Land Capital Data
TechnoSphereEnergy....... Man-imal Fossil Bio-Tech
Technology..... Widgets Electromechanical Digital/Genetic
Production........ Crafted/Self Use Mass/Exchange Prosumptive
Distribution..... Restricted Mass Specialized
Marketing 1:1/ Barter Product-centric Consumer-Centric
InfoSphere Communication Interpersonal Mass-Mediated Interactive
SocioSphere Relationships Spiritual Contractual Mutual/Networked
Business Indiv./Partnership Corporation/Bureaucratic Conglomerate/Ad Hoc
Family............ Extended Nuclear Expanded
Education Elitist In Mass/Standardized Specialized/Life-Long
PowerSphere Authority..... Inherent Elected Semi-direct
PsychoSphere Identity....... Inherited Divided Self Defined/Discovered
The SocioSphereThe SocioSphere
Element 1st wave 2nd wave 3rd wave
Relationships
Spiritual Contractual
Mutual
Family Extended Nuclear Expanded
Education Elitist Mass/ Standardized
LifeLongBusiness Ind./Partn. Corp.
Conglom
W/ Divorce of Production & Consumption— Relationships became set of transactions
Society not based on kinship, friendship, tribal allegiances- but on contracts
2nd wave emergence of the Company Man
RelationshipsRelationships
The Family:From Mother Hubbard to Ozzie & Harriet to Big Brother
1st Wave: Extended Family--Aunts & Uncles; Grand Pa & Ma: In-laws & In-breds under one roof
2nd Wave: Nuclear Norm (working Pa, housekeeping Ma + 2kids, a dog & BBQ) everybody else own unit or institutionalized
3rd Wave: Aggregate HH’s: Mother-Other; Poly-Parents By 1980’s: <7% US-HH’s nuclear; 20% Single, 1:7 single Mom (1:4 Urban); in one Chicago neighborhood 86 different adult configurations…
Education:From Athens, to Ohio State to Phoenix
1st Wave: For Privileged
2nd Wave: For Masses: w/ Standardized Curricula Texts & Tests w/ Bell Curve
3rd Wave: For Individual Life-Long/ Personalized in Time & Mode of delivery
BusinessFrom Dad & Sons to GM to AOL-Time-Life-Warner-Turner…
1st Wave: Shopkeepers & Partnerships
2nd Wave: The Corporation & Franchise 9-5, Strict Labor – Management hierarchy
3rd Wave: Resurgence of small business & Emergence Global AlliancesHorizontally, vertically & strategically
integrated Conglomerates— thru leveraged buyouts, hostile
take-overs; out-sourcing, networking & symbiotic alliances
Ad-Hocracy replaces bureaucracyFlex—Time, Task & TitleMany bottom-lines
Toffler's Waves Agricultural Industrial Technological
Key Commodity Land Capital Data
TechnoSphereEnergy.......
Man-imal Fossil Bio-Tech
Technology..... Widgets Electromechanical Digital/Genetic
Production........ Crafted/Self Use Mass/Exchange Prosumptive
Distribution..... Restricted Mass Specialized
Marketing 1:1/ Barter Product-centric Consumer-Centric
InfoSphere Communication Interpersonal Mass-Mediated Interactive
SocioSphere Relationships
Spiritual Contractual Mutual/Networked
Business Indiv./Partnership Corporation/Bureaucratic Conglomerate/Ad Hoc
Family............ Extended Nuclear Expanded
Education Elitist In Mass/Standardized Specialized/Life-Long
PowerSphere Authority..... Inherent Elected Semi-direct
PsychoSphere Identity....... Inherited Divided Self Defined/Discovered
Meta-convergence: “the tightening of connections among spheres that have hitherto been more
independent”
"Culture, religion, politics, environment, ethics, are all going to interpenetrate one another to an extent never before seen, and they will, in turn, penetrate business in all sorts of strange new
ways…“ Riding the third wave: A conversation with Alvin
Toffler
The 21st Century- Spherical The 21st Century- Spherical Meta ConvergenceMeta Convergence
Ecological impactEcological impactLabor conditionsLabor conditions
PollutionPollutionHealth & safety concernsHealth & safety concerns
Human rights abusesHuman rights abusesChild laborChild labor
Working in-w/ anti-democratic regimesWorking in-w/ anti-democratic regimesGlobalizationGlobalization
-Industry & Business
Associations
Corporate, & activist –
Shareholder organizations
-NGO’s- IMF, WTO, World Bank
-Religious & Secular Groups
-Local, State & National Gov’t
Agencies
-Special Interest & Affinity groups
ILO-list 450+ Activist Org. W3-sites
“promulgating policy initiatives”
~ie~
The only business of business is business--Milton FriedmanThe only business of business is business--Milton Friedman
…to the extent that customers express satisfaction in a product or a service, in continued purchases, the producer serves the "public interest."
A successful business satisfies enough customers at a high enough price so as to return a profit to those who have invested in the entrepreneurial activity…
Stark Contrast w/ 2nd wave Mantra:
Toffler's Waves Agricultural Industrial Technological
Key Commodity Land Capital Data
TechnoSphereEnergy.......
Man-imal Fossil Bio-Tech
Technology..... Widgets Electromechanical Digital/Genetic
Production........ Crafted/Self Use Mass/Exchange Prosumptive
Distribution..... Restricted Mass Specialized
Marketing 1:1/ Barter Product-centric Consumer-Centric
InfoSphere Communication Interpersonal Mass-Mediated Interactive
SocioSphere Relationships
Spiritual Contractual Mutual/Networked
Business Indiv./Partnership Corporation/Bureaucratic Conglomerate/Ad Hoc
Family............ Extended Nuclear Expanded
Education Elitist In Mass/Standardized Specialized/Life-Long
PowerSphere Authority..... Inherent Elected Semi-direct
PsychoSphere Identity....... Inherited Divided Self Defined/Discovered
Origins of our identity
Our individualityindividuality = result of Nature & Nurture
Our commonalitycommonality = results from our shared culture & experience
War; civil unrest; social movements
Political persons & events; economic swings
Scientific/Technological discoveries & advances
Tragedies: Natural & Man-made
Entertainment: Movies, TV, Music; artists, celebrities
Clothing styles; Lifestyle trends, Fads
Generational Imprint as we Come of age
Each generation molded by world events that occur during its formative years.
… distinct historical experiences create characteristics that stay w/ people thruout rest of their lives
Each generation molded by world events that occur during its formative years.
… distinct historical experiences create characteristics that stay w/ people thruout rest of their lives
Generational Marketing: Reaching the Hearts and Minds of Consumershttp://circman.com/ar/marketing_generational_marketing_reaching/
Generational Marketing: Reaching the Hearts and Minds of Consumershttp://circman.com/ar/marketing_generational_marketing_reaching/
February 08, 2005 Lax Natarajan & Sully Romero Ordonez 128
Generational Life ExperiencesCalled “Markers”
Values are shaped by:
EventsCulturePoliticsEconomyTechnologyPersonalities
EventsCulturePoliticsEconomyTechnologyPersonalities
Common ExperiencesCommon
Experiences
Common AIO’s, values, tastes, style...
Common AIO’s, values, tastes, style...
Common responses
to marketing mix
variables
Common responses
to marketing mix
variables
•Generational mindsets … are major factors in determining
what & how consumers buy…
The notion a group of people bound together by sharing experience of common historical events 1st introduced by Karl Mannheim - early 1920s
Generations Variously Named & Dated:
1. Matures – < 1946 2. Baby Boomer – 1946-1953 3. Generation Jones – 1954-1964 4. Generation Rerun – 1965-1975 5. Generation Xceptional – 1976-1986 6. Generation M – 1987-1995 7. Millennials – 1996 and beyond
1. Matures – < 1946 2. Baby Boomer – 1946-1953 3. Generation Jones – 1954-1964 4. Generation Rerun – 1965-1975 5. Generation Xceptional – 1976-1986 6. Generation M – 1987-1995 7. Millennials – 1996 and beyond
Depression cohort (1912 to 1921)
WWII cohort (1922 to 1927)
Post-war cohort (1928 to 1945)
Baby Boomer cohort #1 (1946 to 1954)
Baby Boomer cohort #2 1955 to 1965)
Generation X cohort (1965 to 1976)
N Generation cohort (1977 to date)
Depression cohort (1912 to 1921)
WWII cohort (1922 to 1927)
Post-war cohort (1928 to 1945)
Baby Boomer cohort #1 (1946 to 1954)
Baby Boomer cohort #2 1955 to 1965)
Generation X cohort (1965 to 1976)
N Generation cohort (1977 to date)
THE GI GENERATION: 1901-1924THE SILENT GENERATION: 1925-1942BABY BOOMERS: 1943-1960 GENERATION X: 1961-1981GENERATION Y: 1982-PRESENT
THE GI GENERATION: 1901-1924THE SILENT GENERATION: 1925-1942BABY BOOMERS: 1943-1960 GENERATION X: 1961-1981GENERATION Y: 1982-PRESENT
Waves of change affect Waves of change affect different generations in different generations in
different waysdifferent ways
1925 1955 20001965 19751935 198519601945
GI
Depression
Boomer
SilentGen
XWar Baby
Rode the Last Wave
Caught Between Waves
Gen Y
Grow Up w/ New Wave
Riding the wave
For Senior Generations Fully developed 2nd wave Psyche
before 3rd Wave
Depression cohort (born from 1912 to 1921) Psyche: strive for financial security, risk
averse, waste not want not attitude, strive for comfort
WWII cohort/ GI Gen. (born from 1922 to 1927) Psyche : the nobility of sacrifice for the
common good, patriotism, team player
Post-war cohort/ Silent Gen. (born from 1928 to 1945) Psyche : conformity, conservatism,
traditional family values
February 08, 2005 Lax Natarajan & Sully Romero Ordonez 134
-- Boomers: caught in cross current of waves- sensed “The times they were a Changing”
-- Boomers: caught in cross current of waves- sensed “The times they were a Changing”
Baby Boomer cohort #1 (born 1946 to 1954) Psyche : experimental,
individualism, free spirited, social cause oriented
Baby Boomer cohort #2 (born 1955 to 1965) Psyche : less optimistic, distrust
of government, general cynicism
For the X &Y generations: Increasingly weaned in & imprinted on post-industrial “3rd wave” society
For the X &Y generations: Increasingly weaned in & imprinted on post-industrial “3rd wave” society
Gen X cohort
Psyche : quest for emotional security, independent, informality
(Y) Millennium Generation
Psyche : quest for physical security & safety, extreme patriotism, heightened fears, acceptance of change
February 08, 2005 Lax Natarajan & Sully Romero Ordonez 138
February 08, 2005 Lax Natarajan & Sully Romero Ordonez 139
Marketing issues…
consequently arise
As Society Changes…
Business must necessarily adjust
http://www.tompeters.com/reimagine/index.php
“We are in the midst of redefining our basic
ideas about what enterprise &
organization & even being human are
about -- how value is created -- how careers
are pursued”-2006
A prediction:
“At least 80% of white-collar jobs, as we
know them today, will either disappear or
be reconfigured beyond recognition--in just
the next 15 years.
White-collar employment as we've known it
is dead. Job security as we've known it is
over. Over and gone”
A prediction:
“At least 80% of white-collar jobs, as we
know them today, will either disappear or
be reconfigured beyond recognition--in just
the next 15 years.
White-collar employment as we've known it
is dead. Job security as we've known it is
over. Over and gone”
We are beginning to feel the We are beginning to feel the force of next great wave of force of next great wave of change---change---
February 08, 2005 Lax Natarajan & Sully Romero Ordonez 142
• Director of Emerging Thought • Chief Imagination Officer• Hacker Relations Manager • Human Interface Manager• Valuer of Intangible Assets
• Director of Emerging Thought • Chief Imagination Officer• Hacker Relations Manager • Human Interface Manager• Valuer of Intangible Assets
Likely jobs w/in next 10 yearsLikely jobs w/in next 10 years
Have Existed since 2003
… will explore each sphere
ascertain what changes are afoot and– as a consequence–
delineate what “marketing” issues have arisen/will arise…
Our Seminar:
IdentifyinIdentifying g
Marketing Marketing Issues Issues byby SphereSphere
IdentifyinIdentifying g
Marketing Marketing Issues Issues byby SphereSphere
Techno Production & Distribution Customization & Customer-ization
InfoCommunication- Information Systems
Marketing Communication; Internal & external-
channels & strategies
Socio Social Relationships & Institutions
Changing consumer living-working patterns; social, professional & corporate
networking
Psycho Identity/ ValuesConsumer values; socio-psychographic segments
PowerGoverning Institutions & Allocation of Authority
Business & Marketing Regulation; Corporate Citizenship & Social
responsibility
BioHuman - EnvironmentCondition/ Relationship
Societal/Green Marketing
SphereSphere FocusFocus Marketing Issues:Marketing Issues:
