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The End of Traditional Marketing: Myths and Limits of Marketing !
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« The Quaternary Marketing » The end of traditional marketing !
Bruno TEBOUL
Paris, 29th may 2012
The author: Bruno Teboul
Corporate Digital Marketing Director
(The european leader in ICT)
Master of Epistemology
(1993 - University of Paris 12)
Post Graduate Diploma in Cognitive Neurosciences
(1994 - Ecole Polytechnique)
Executive MBA
(2003 - HEC/UCLA)
PhD student in Marketing & Management Science
(2012 University Paris-Dauphine)
Bruno Teboul
The end of traditional marketing
Bruno Teboul
Bruno Teboul
The end of traditional marketing
Marketing success in a turbulent environment
requires an approach that is different to that
recommended by traditional strategic marketing
theory, which is insufficient to guide marketers in
markets in varying states of change and turbulence.
This criticism of the traditional approach to
marketing strategy is based on the fact that
sequential strategic marketing planning does not
suit a changing environment because it is too slow
and unresponsive for a fast changing marketplace.
Furthermore, it cannot keep up with customers'
requirements nor with aggressive competitors.
In addition, traditional market research and
traditional marketing mix models are too simplistic
in order to understand complex marketing
situations, as such models assume linear
relationships between mix variables and the
resultant outcomes ! Bruno Teboul
The end of traditional marketing
Since the simplistic approaches recommended by
traditional theories can be dangerous, marketers
should consider the overall environmental position
when designing their strategies and adopt non-
traditional marketing methodologies.
In current complex and turbulent environments, speed
in recognizing opportunities and developing new
products, as well as reducing the time to market, is
essential !
Traditional marketing is an inadequate response to the
marketing opportunities emerging in a modern
economy and is inappropriate for dominate economical
scientific and technical revolutions: Digital & NBIC !
Bruno Teboul
The end of traditional marketing
This is similar to the economic theory that is at the
heart of Philip Kotler’s Cognitive Marketing. But
Kotler utilizes this concept of Cognitive Marketing in
the wrong sense: he believes that consumers are
cognitive, thus rational and Bayesian.
It's not a marketing inspired by the discoveries of
cognitive science, but one that considers the
consumer as a rational agent, capable of reasoning,
a cognitive consumer, an understanding and
knowing consumer.
The contribution of psychology has awarded more
and more attention to the assumptions of an agent
who is not perfectly capable of emitting sound
judgments.
Bruno Teboul
The end of traditional marketing
Marketers have to be able to anticipate, cope with, and
adapt to changes in the external environment.
I believe, like an ever-increasing number of authors,
that the new sciences, specifically the chaos and
complexity theories, can provide a better
understanding of marketing theory.
For example, Wollin and Perry (2004) maintain that:
“Complexity theory in the form of complex adaptive
systems has implications for marketing managers as a
holistic, self-consistent framework for understanding
profound forces within a market and provides some
guides for action when operating within such a
system.”
Bruno Teboul
Bruno Teboul
The end of the traditional marketing
The limits of marketing:
(1) Difficult to Measure
(2) Difficult to understand
customer behaviour
(3) Fragmented audience
(4) Difficult to predict campaign
results
(5)The right product, at the right
price, for the right target, at the
right time, via the right media…
(6) Expensive
(7) Churn
The myths of marketing:
(1) The rational consumer,
(2) Consumer is a bayesian
agent,
(3) Homo Oeconomicus
(4) The mix-marketing
paradigm (n P’s),
(5) The objectivity of the
customer responses,
(6) Behaviour customer
segmentation,
(7) CRM and BI.
Bruno Teboul
of the
Marketing
Idols…
The end of traditional marketing
Bruno Teboul
The model "problem/solution" invented in the
1960s in the USA, aimed to educate consumers
on the basis of a new product. In a consumer
society where technology evolves every single
day, consumers need to be prepared for such
advancements. However, they don’t seem to
understand how to use it or how to keep up.
The idea is, based on an analysis of consumers
(search for insight) to develop a logic of
persuasion starring a problem, a dissatisfaction
with their experience of consumers in the use
of the product category. Procter & Gamble
Model: procterian marketing was born...
The end of traditional marketing
Bruno Teboul
The end of traditional marketing
Bruno Teboul
It formulates the law of effect: so that the
connection between a situation and a behavior is
reinforced (that is to say to increase the probability
of such behavior in this situation), it is necessary
that such behavior in such situations will produce a
satisfaction for the organization.
The innovation of the brand advertised bringing
them a solution. Hence the name model "problem /
solution" inspired by experimental psychology and
Behaviourism.
Thorndike (1874 - 1949) first formulated the S > R
(stimulus> response) and the law to strengthen this
connection by studying the reward in rats.
Thorndike in 1898 published the results of his early
research in Animal Intelligence.
Indeed, the concept of behavioral type "stimulus>
response" has been scientifically refuted by the rise of
neuroscience and cognitive paradigm.
Cognitivism takes the foot against behaviorism by
looking at what exists between stimulus and behavior,
the mental functioning of the individual ("black box").
Stimulti >>>>>>>>>>>>>>> Response (Kotler, Procter).
Stimuli >>>> >>>>> Response (Neuroscience,
heuristics ...).
Behaviorists doubted the possibility of a scientific
investigation of what they called the "black box".
Cognitivists from the 50s will try to exceed the project
seeking to identify the structures and processes
responsible for the hypothetical behavior.
The end of traditional marketing
Bruno Teboul
Bruno Teboul
The end of traditional marketing
Why the Mix-Marketing Paradigm is obsolete ?
Philip Kotler still considers the Mix as one of the
elements of the Marketing strategy, yet this approach
has developed gradually over the years from the
“academic” perspective (Kotler 1976) to a more
“practical” one (Kotler 1984).
In his more recent books the author becomes more
critical by underlining one of the main limitations of the
Mix namely the internal orientation arguing that “the
four P’s represent the sellers’ view of the marketing
tools available for influencing buyers” (Kotler 2003). Bruno Teboul
The end of traditional marketing
Why the Mix-Marketing Paradigm is obsolete ?
Bruno Teboul
Since the 1960s, there has been an inflation in the number
of P constituting the model of the Marketing Mix classical:
indeed, since Kotler we went from 4P's to 10P's and it still
does not address the inherent problem of this obsolete
model. It is not the number of members or parts of the
model that make the relevance and validity.
It is the model definition and its underlying rules that make
it a paradigm or not. Outside, in the case of Paradigm
Marketing Mix, it is his logic that is lacking today: because
it is impossible to build a reliable marketing plan following
the simplistic approach of the Marketing Mix!
The end of traditional marketing
Why the Mix-Marketing Paradigm is obsolete ?
Bruno Teboul
What Marketing Director can claim to have found the
grail using this formula: “the right product at the
right price, right place, right time, right promotion,
via the right medium” !
The Marketing Mix is rather dangerous because it
blinds the Marketing Director, its hierarchy, and
ignores the deep emotions of customers and their
decision making!
The Marketing Mix inflicts a double penalty: if you
distill a poison that you would spend for a cure, that
poison can be prescribed by a charlatan who would
like to be a doctor!
The Marketing Mix that ignores all the non-rational
consumers likes to believe that it is the basic
structure of marketing: but it is the precipice, the
ultimate end, the medieval castle that collapses !
The end of the traditional marketing
Obsolete traditional CRM approach:
Bruno Teboul
Data
eCRM
Customer
Accounts
Store Data
Web sites Social Networks
Data Processing
Data Storage
Data Access
Reporting, Analytics,
Visualisation & Statisitics Data
Management
ZooKeeper*
New CRM Big Data approach…
The end of the traditional marketing
Bruno Teboul
The end of the traditional marketing
Data enables us to understand customers and to manage
contact and content strategy. Data is a core component of
integrated marketing and, via an integrated approach, we can
speak with a single voice across channels and lines of
business.
However, to succeed in a meaningful way at that level of
customer centricity, we have to manage all that data in a way
that holistically fuels customer engagement and experience.
That effort requires a whole ecosystem of people, processes,
and technology.
Even the most sophisticated and modern businesses today
are surprisingly ill equipped to manage even the most basic
digital marketing standards and activities, let alone jettison
forward into the new world of Big Data techniques.
To a SmartData CRM approach…
Bruno Teboul
From the Quaternary Economy to the
« Quaternary Marketing »…
Bruno Teboul
From the Quaternary Economy to the
« Quaternary Marketing »…
Michèle Debonneuil
Bruno Teboul
From the Quaternary Economy to the
« Quaternary Marketing »…
Quaternary Economy essentially incorporates an economic sector combining the secondary and the tertiary sectors whose products are neither goods nor services, but "new services incorporating property, the temporary provision of goods, persons, or combinations of goods and people.“ Besides these products, the quaternary sector includes information, technology, and communication (ICT) , the training associated with them, and the actions of the State to support its development.
Bruno Teboul
Quaternary Economy and NBIC…
Nanotechnology, Biology, Information and Cognition
(NBIC)
M.C. Roco and W.S. Bainbridge (2002)
“We stand at the threshold of a new renaissance in
science and technology, based on a comprehensive
understanding of the structure and behavior of matter
from the nanoscale up to the most complex system
yet discovered, the human brain.
Unification of science based on unity in nature and its
holistic investigation will lead to technological
convergence and a more efficient societal structure
for reaching human goals. In the early decades of the
twenty-first century, concentrated effort can bring
together nanotechnology, biotechnology, information
technology, and new technologies based in cognitive
science”.
Bruno Teboul