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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 3 Tonight: Examine logic & paradigm of course… which will guide our exploration of “Current Marketing Issues” What is Marketing? 5 Everybody is a Marketer Everybody promotes/ sells themselves– – To get job/ promotion – To get date/ mate Everybody has their price………………… 6 Everyday You Market Yourself Your packaging–clothes, piercing, tattoos, cars, etc. We all engage in “Positioning & Differentiation” 7 & Always been Marketers Innate sense of exchange 1,000’s of years… bartered & traded “branded” goods & services 8 “The Dawn of Marketing” Marketing Defined a FUNCTION a PROCESS a PERFORMANCE a FUNCTION & PROCESS > Function = ORIENTATION Classic Functional Definition All activities performed in between: The Point of Production & The Point of Consumption st 1 Formal Definition ~1919 *Marketing and Merchandising by Ralph Butler & John Swinney, Marketing defined as ‘the manner in which the product is disposed of, the way in which it is distributed…, through various channels of trade.” 11 •Book distinguishes marketing from merchandising, •w/ marketing being something manufacturers do •& merchandising being the domain of jobbers; retailers. Marketing Defined -1935 - “The performance of business activities that direct the flow of goods & services from producers to consumers.” Marketing Definedas 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 Definition In 2004- AMA Re-defined Marketing "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." Why the changed focus? What happened between 1985 & 2004 that made the AMA change the definition of marketing? The AMA Rationale: “Technology & marketing been changing quite rapidly over last five to 10 years… Marketing should be customercentric -- not brand-centric" 17 The 1985 definition was not encompassing enough. The new definition more clearly infuses the customer into marketing." 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 Concept Focus on Consumer – Not product Long –Term Relationships Not Shortterm 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. 2. 3. 4. 5. 6. Estimate the number of purchase occasions by the customer over a given interval… Estimate the average amount spent per visit. Estimate likely additional purchases thru cross selling & upselling Subtract the costs of maintaining the account per visit. Add the value of the new referrals by the customer. 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: A lot of Media + Not much Loyalty Retaining an additional 5% of customers each year… …can increase profits by 25-35% Net Present Value Marketing’s new definition reflects a broadened focus - Was focused on short term profitable transactions… Was focused on capturing new customers…. Now use integrated strategy w/ all points of contact Was segmented on geo/demographic variables Now focus on keeping existing customers Was focused on mass- media advertising...... Now look at customers' lifetime value 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..... The marketing department did the marketing… Now everyone does some marketing Company was the unit of analysis......... Now organized by customer segment Now whole value chain is unit of analysis Had individual / hierarchical work structures… Now cross functional teams Marketing Next StepID the issues… 1.2 billion in .4 sec GOOGLE- CAFFEINE http://www2.sandbox.google.com/ 57 million MORE RELEVANT in .25sec -On Any Given DayOne can find Issues of: As it is Product Quality Service Quality Consumer Confidence/Satisfaction Value/Pricing Practices Free/Fair trade Globalization Advertising (volume, veracity, political-correctness) What the issues are-Depends on Your Perspective: MarketerIssues = factors that affect sales • ConsumerIssue = factors that affect one’s sensibilities Marketing Issues- as delineated by an old UAA Syllabus… Marketing performance The Creation of Customer Satisfaction & Value Buyer 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 More Issues / Other Syllabi Bad Marketing Ideas Future Markets Marketing High Technology Product By Design The Next Big Market Generational Divide Asian-American Consumers Why Service Stinks ReMarketing Old Brands Kamikaze Pricing The Old Pillars of New Retailing Global Marketing In The New Millennium Segmenting Global Markets The Nation as Brand Michael Porter’s Big Ideas Marketing Myopia Could of used the text-- “Clashing Views on Controversial Issues in Marketing” Question Addressed 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? Fact is--these & most issues… Are RE-CURRENT issuesthat Ebb & Flow w/ socioeconomic events We could- examine these issues 1 by 1… Boring! Too Simple & Just too Superficial “Yes… you seem to be suffering from a marketing issue….” Examining only symptoms --not diagnosing the cause Ergothe Real Question is…. Ergothe Real Question is…. Marketing’s “utility”/value derived from its Facilitation of Exchange! Willing to sell Temporal Utility Spatial Utility Transactional Utility Marketing Willing to buy Key Point: Keep Marketing in Perspective Anything/Everything one does to facilitate exchange Whatever impacts Why- 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 Thus- in order to identify- anticipate- understand Marketing Issues in particular One needs to identify-anticipateunderstand Societal Change in general Society Defined: A group of humans broadly distinguished by: mutual interests, participation in characteristic relationships, shared institutions, & a common culture In the final analysis marketing strategy is formulated to address… THUS- Patterns of/changes to: human interests, relationships, institutions & culture… …become marketing issues Hence- our search for marketing issues begins w/ examination of… & what better time to study Societal Change …We are living thru one of the great periods of societal change in the history of humankind… We’re in midst of next great Paradigm Shift… … in the way we live, communicate, work, produce & consume… "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 www.tompeters.com “ -- 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…” Our Place in Time August 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 Physical Generations Ago Technological 100,000 Speech 750 Agriculture 500 Writing 400 Libraries 12 Big Bang (MEST) 11.5 Milky Way (Atoms) 8 Sun (Energy) 4.5 Earth (Molecules) 40 Universities 3.5 Bacteria (Cell) 24 Printing 2.5 Sponge (Body) 16 Accurate Clocks 0.7 Clams (Nerves) 5 Telephone 0.5 Trilobites (Brains) 4 Radio 0.2 Bees (Swarms) 3 Television 0.100 Mammals 2 Computer 0.002 Humans, Tools & Clans Coevolution 1 Internet/e-Mail 0 AI & Nano-tech The Law of Accelerating Returns explains why technology & evolutionary processes progress in an exponential fashion - observed time intervals 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. Expect: 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 Homo Sapiens 2,000,000 100,000 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 – A 20-year cycle, from 2020-2040 – LUI network, Biotech, Adaptive Robots, advanced AI A 10-year cycle, from 2040-2050 – Evolve from 1st gen "stupid net “ web1.0—to 2nd gen social net Web 2.0--to-- Web 3.0- intelligent AI embedded net 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 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 In the long run, we become seamless w/ our machines. “Technology is becoming organic. Nature is becoming technologic.” & Transhumanity Personality Capture Robo Sapiens AIST and Kawada’s HRP-2 “Huey and Louey” The Symbiotic Age A time when we will begin to feel “naked” without our computer “clothes.” UCT in Everything you wearwashable garments w/ miniaturized inear 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 making 0.25mm chips target cost 5-10 cents ..w/ 15-20 feet range Manufacturing capacity 10+ billion a year Invisible, intelligent wireless tickets Can be read in your pocket at 25 metres Ultra-wide band frequency “One-ticket fits all” Ski Lift RFID Swatch passes RFID – Shopping Tech Futureintegratedseamless 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 datamined calculations) that you can’t refuse Interactive B’boards: 1 & 2 Past-Present & Near Future Subcycles: A 30-year cycle, from 1990-2020 – A 20-year cycle, from 2020-2040 – LUI network, Biotech, Adaptive Robots, advanced AI A 10-year cycle, from 2040-2050 – Evolve from 1st gen "stupid net “ web1.0—to 2nd gen social net Web 2.0--to-- Web 3.0- intelligent AI embedded net 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, nonbiological intelligence will match the range and subtlety of human intelligence The Singularity is Near Course 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… producing goods & services… a system for distributing those goods & a method of 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) “Put together these spheres encompass most all that goes on in any civilization or society” POWER SOCIO PSYCHO TECHNO BIO INFO Change in one sphere Impacts other Spheres When change concurrently impacts & ripples thru & across all Spheres… SOCIO PSYCHO BIO INFO TECHNO 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’s Agricultural Age To Industrial Age 3rd Wave ~1950’s Industrial Age To Information Age Toffler's Waves Agricultural Industrial Technological Key Commodity Land Capital Data Man-imal Fossil Bio-Tech Widgets Electromechanical Digital/Genetic Production........ Crafted/Self Use Mass/Exchange Prosumptive Distribution..... Restricted Mass Specialized Marketing 1:1/ Barter Product-centric Consumer-Centric InfoSphere Interpersonal Mass-Mediated Interactive Spiritual Contractual Mutual/Networked Indiv./Partnership Corporation/Bureaucratic Conglomerate/Ad Hoc Extended Nuclear Expanded Elitist In Mass/Standardized Specialized/Life-Long Inherent Elected Semi-direct Inherited Divided Self Defined/Discovered TechnoSphere Energy....... Technology..... Communication SocioSphere Relationships Business Family............ Education PowerSphere Authority..... PsychoSphere Identity....... 1st Wave 2nd Wave 3rd Wave KEY COMMODITY LAND •Basis of economy •Life organized ‘round village •Economy Decentralized •Every village produce most of its necessities CAPITAL •Like land- a zero sum commodity* •Necessary for control of Production-Labor & Raw materials Information Uniquely different from previous key commodities 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 Man-imal Fossil Bio-Tech Widgets Electromechanical Digital/Genetic Production........ Crafted/Self Use Mass/Exchange Prosumptive Distribution..... Restricted Mass Specialized Marketing 1:1/ Barter Product-centric Consumer-Centric InfoSphere Interpersonal Mass-Mediated Interactive Spiritual Contractual Mutual/Networked Indiv./Partnership Corporation/Bureaucratic Conglomerate/Ad Hoc Extended Nuclear Expanded Elitist In Mass/Standardized Specialized/Life-Long Inherent Elected Semi-direct Inherited Divided Self Defined/Discovered TechnoSphere Energy....... Technology..... Communication SocioSphere Relationships Business Family............ Education PowerSphere Authority..... PsychoSphere Identity....... TechnoSphere -Energy 1st Wave: MANIMAL winches, wedges, catapults, winepresses, levers & hoists – amplified by man & animals 2nd Wave Electromechanical – “w/ moving parts, belts, bearings & bolts– clacking & ratcheting along” Initial Electro = Hydro & Direct Current necessitated Local Sourcing Alternating allowed Central Utilities w/ Long-D Dist. 99 10 0 Production New Technologies powered by New Energy sources enabled mass production… Adam Smith -1776w/ the pin lesson & concept of “manufacturing” Applied in 1908 by Ford in production of Model T Characterized by: Hi energy input Hi waste pollution Low skill Repetitive work Standardized goods Centralized control Division of Labor The Model T Requires 7,882 tasks requiring: The Pin: One craftsman produced ~20 pins/day “949 strong men 3,338 ordinary men 670 legless 2,637 one legged 2 armless 715 one armed 10 blind men”* Breaking production into 18 steps10 workers-w/ each performing 1-2 specialized tasks produce 4,800 pins/day *autobiography 3rd Wave Technologies Intelligent Integrated Ecological Economic Micro-Electronics Information Processing Bio-Facturing Nano-Technology 2010 10 4 2020 2030 10 5 10 6 10 7 Toffler's Waves Agricultural Industrial Technological Key Commodity Land Capital Data Man-imal Fossil Bio-Tech Widgets Electromechanical Digital/Genetic Production........ Crafted/Self Use Mass/Exchange Prosumptive Distribution..... Restricted Mass Specialized Marketing 1:1/ Barter Product-centric Consumer-Centric InfoSphere Interpersonal Mass-Mediated Interactive Spiritual Contractual Mutual/Networked Indiv./Partnership Corporation/Bureaucratic Conglomerate/Ad Hoc Extended Nuclear Expanded Elitist In Mass/Standardized Specialized/Life-Long Inherent Elected Semi-direct Inherited Divided Self Defined/Discovered TechnoSphere Energy....... Technology..... Communication SocioSphere Relationships Business Family............ Education PowerSphere Authority..... PsychoSphere Identity....... Prosumption Dominant Economic Sector Production 1st Wave= Sector A Crafted/ for Self Use 2nd Wave= Sector B Mass/ for Exchange 3rd Wave Mixed Prosumption 2nd Wave - vast majority goods & services destined for exchange (Sector B) Virtually wiped out goods produced for selfconsumption (Sector A) Created civilization where almost no one– not even farmer was self-sufficient 3rd Wave Rise of PROSUMPTION: “De-Marketization” of the Economy” 1970’s few self service retail outlets nor SelfServe 1970 1980 8% 70% tools, building materials, medical instruments sold to consumers Gas 1980’s DIY explosion in full force Tools <30% >70% PG ID 0 ~20 3rd wave characterized by massive growth of sector A million 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 Man-imal Fossil Bio-Tech Widgets Electromechanical Digital/Genetic Production........ Crafted/Self Use Mass/Exchange Prosumptive Distribution..... Restricted Mass Specialized Marketing 1:1/ Barter Product-centric Consumer-Centric InfoSphere Interpersonal Mass-Mediated Interactive Spiritual Contractual Mutual/Networked Indiv./Partnership Corporation/Bureaucratic Conglomerate/Ad Hoc Extended Nuclear Expanded Elitist In Mass/Standardized Specialized/Life-Long Inherent Elected Semi-direct Inherited Divided Self Defined/Discovered TechnoSphere Energy....... Technology..... Communication SocioSphere Relationships Business Family............ Education PowerSphere Authority..... PsychoSphere Identity....... The INFOSPHERE 1st Wave 2nd Wave 3rd Wave Interpersonal Mass Interactive Virtual Face to face Mediated 1:1 1:Many Networking: many-to-many Augmented by: •Listening post •Distance Runner •Town Crier •Pigeon •Pony Express •Newspaper •Magazine •Film •Radio •TV Internet •WiFi •Cellular •Satellite Any 1:Every 1 Media Evolution From Mass Mind to Blip Culture “Instead the masses receiving the same messagesmaller 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 Man-imal Fossil Bio-Tech Widgets Electromechanical Digital/Genetic Production........ Crafted/Self Use Mass/Exchange Prosumptive Distribution..... Restricted Mass Specialized Marketing 1:1/ Barter Product-centric Consumer-Centric InfoSphere Interpersonal Mass-Mediated Interactive Spiritual Contractual Mutual/Networked Indiv./Partnership Corporation/Bureaucratic Conglomerate/Ad Hoc Extended Nuclear Expanded Elitist In Mass/Standardized Specialized/Life-Long Inherent Elected Semi-direct Inherited Divided Self Defined/Discovered TechnoSphere Energy....... Technology..... Communication SocioSphere Relationships Business Family............ Education PowerSphere Authority..... PsychoSphere Identity....... The SocioSphere Element 1st wave 2nd wave 3rd wave Relationships Spiritual Contractual Mutual Family Extended Nuclear Expanded Education Elitist Mass/ LifeLong Standardized Business Ind./Partn. Corp. Conglom Relationships 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 The Family: From Mother Hubbard to Ozzie & Harriet to Big Brother 1st Wave: Extended Family-- Aunts & Uncles; Grand Pa & Ma: Inlaws & 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 Business From Dad & Sons to GM to AOL-Time-LifeWarner-Turner… 1st Wave: Shopkeepers & Partnerships 2nd Wave: The Corporation & Franchise 9-5, Strict Labor – Management hierarchy 3rd Wave: Resurgence of small business & Emergence Global Alliances Horizontally, vertically & strategically integrated Conglomerates— thru leveraged buyouts, hostile takeovers; out-sourcing, networking & symbiotic alliances Ad-Hocracy replaces bureaucracy Flex—Time, Task & Title Many bottom-lines Toffler's Waves Agricultural Industrial Technological Key Commodity Land Capital Data Man-imal Fossil Bio-Tech Widgets Electromechanical Digital/Genetic Production........ Crafted/Self Use Mass/Exchange Prosumptive Distribution..... Restricted Mass Specialized Marketing 1:1/ Barter Product-centric Consumer-Centric InfoSphere Interpersonal Mass-Mediated Interactive Spiritual Contractual Mutual/Networked Indiv./Partnership Corporation/Bureaucratic Conglomerate/Ad Hoc Extended Nuclear Expanded Elitist In Mass/Standardized Specialized/Life-Long Inherent Elected Semi-direct Inherited Divided Self Defined/Discovered TechnoSphere Energy....... Technology..... Communication SocioSphere Relationships Business Family............ Education PowerSphere Authority..... PsychoSphere Identity....... 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 Meta Convergence -Religious & Secular Groups -Industry & Business Associations -NGO’s- IMF, WTO, World Bank Ecological impact Labor conditions Pollution Health & safety concerns Human rights abuses Child labor Working in-w/ anti-democratic regimes Globalization Corporate, & activist – Shareholder organizations -Special -Local, State & National Gov’t Agencies Interest & Affinity groups ILO-list 450+ Activist Org. W3-sites “promulgating policy initiatives” ~ie~ Stark Contrast w/ 2nd wave Mantra: The only business of business is business--Milton Friedman 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… …to the extent that customers express satisfaction in a product or a service, in continued purchases, the producer serves the "public interest." Toffler's Waves Agricultural Industrial Technological Key Commodity Land Capital Data Man-imal Fossil Bio-Tech Widgets Electromechanical Digital/Genetic Production........ Crafted/Self Use Mass/Exchange Prosumptive Distribution..... Restricted Mass Specialized Marketing 1:1/ Barter Product-centric Consumer-Centric InfoSphere Interpersonal Mass-Mediated Interactive Spiritual Contractual Mutual/Networked Indiv./Partnership Corporation/Bureaucratic Conglomerate/Ad Hoc Extended Nuclear Expanded Elitist In Mass/Standardized Specialized/Life-Long Inherent Elected Semi-direct Inherited Divided Self Defined/Discovered TechnoSphere Energy....... Technology..... Communication SocioSphere Relationships Business Family............ Education PowerSphere Authority..... PsychoSphere Identity....... Origins of our identity Our individuality = result of Nature & Nurture War; civil unrest; social movements Political persons & events; economic swings Scientific/Technological discoveries & advances Tragedies: Natural & Manmade Our commonality = results from our shared culture & experience 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 Generational Marketing: Reaching the Hearts and Minds of Consumers http://circman.com/ar/marketing_generational_marketing_reaching/ Values are shaped by: Generational Life Experiences Called “Markers” Events Culture Politics Economy Technology Personalities February 08, 2005 Lax Natarajan & Sully Romero Ordonez 128 •Generational mindsets … are major factors in determining what & how consumers buy… Common Experiences Common AIO’s, values, tastes, style... The notion a group of people bound together by sharing experience of common historical events 1st introduced by Karl Mannheim - early 1920s Common responses to marketing mix variables Generations Variously Named & Dated: 1. 2. 3. 4. 5. 6. 7. Matures – < 1946 Baby Boomer – 1946-1953 Generation Jones – 1954-1964 Generation Rerun – 1965-1975 Generation Xceptional – 1976-1986 Generation M – 1987-1995 Millennials – 1996 and beyond Depression cohort (1912 to 1921) THE GI GENERATION: 1901-1924 THE SILENT GENERATION: 1925-1942 BABY BOOMERS: 1943-1960 GENERATION X: 1961-1981 GENERATION Y: 1982-PRESENT 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) Waves of change affect different generations in different ways Rode the Last Wave GI Silent Caught Between Waves Grow Up w/ New Wave Gen X Depression War Baby 1925 1935 1945 Boomer 1955 1960 1965 1975 Riding the wave Gen Y 1985 2000 For Senior Generations Fully developed 2nd wave Psyche rd before 3 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” 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 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 As Society Changes… Business must necessarily adjust Marketing issues… consequently arise We are beginning to feel the force of next great wave of change--- “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 http://www.tompeters.com/reimagine/index.php Likely jobs w/in next 10 years • • • • • Director of Emerging Thought Chief Imagination Officer Hacker Relations Manager Human Interface Manager Valuer of Intangible Assets February 08, 2005 Lax Natarajan & Sully Romero Ordonez Have Existed since 2003 142 Our Seminar: … will explore each sphere ascertain what changes are afoot and– as a consequence– delineate what “marketing” issues have arisen/will arise… Identifying Marketing Issues by Sphere Sphere Techno Info Socio Psycho Focus Production & Distribution CommunicationInformation Systems Social Relationships & Institutions Identity/ Values Marketing Issues: Customization & Customer-ization Marketing Communication; Internal & external- channels & strategies Changing consumer livingworking patterns; social, professional & corporate networking Consumer values; sociopsychographic segments Power Governing Institutions & Allocation of Authority Business & Marketing Regulation; Corporate Citizenship & Social responsibility Bio Human - Environment Condition/ Relationship Societal/Green Marketing