Tag Archives: marketing science art strategy

Marketing 3.0 by Philip Kotler, Hermawan Kartajaha and Iwan Setiawan


Looking for big ideas to take your marketing to the next level?  Marketing 3.0 proposes a fundamental evolution to our marketing strategies.  It seeks to move our focus from product and customer models to a human-centric model.  It challenges us to evolve from pushing products to solving real world socio-cultural issues, while concurrently creating relevant value propositions that ultimately lead to higher profits.

To better understand the theory behind Marketing 3.0 it helps to place it in some context.  Marketing 1.0 was developed in the Industrial Age, a “product-centric” era focused on mass selling products through functional value propositions.  Marketing 2.0 was developed during the Information Age and adopted emotional value propositions.  The authors of Marketing 3.0 propose that we are now at the dawn of the “values-driven” era, characterized by consumers who want to satisfy functional, emotional and spiritual needs.  Marketing 3.0 seeks to satisfy the whole person – mind, body and soul.

Human CentricWhy this evolution to human-centric value propositions?  The authors point to three trends that are shaping the future of marketing.

The first trend is mass participation/ collaborative marketing.  Social media has tapped into natural human desires for connectivity and interactivity.  People not only consume media, news and entertainment, but also seek to produce its content (via blogs, FB, twitter, YouTube, etc.).  This move from consumer to “prosumer” is not simply reserved for the individual, but also enables mass to mass collaboration (think Wikipedia, Craigslist, InnoCentive).  As influencers have gained power and status, companies should seek collaborative marketing strategies; co-creation of products and services, with consumers, employees, channel partners and other firms with similar goals and values.

The second trend is global paradox. Ease of travel and technology advances have created truly “global citizens” who still want to be considered individuals.  Marketing that addresses both local and global communities will succeed. For example, marketers should seek to create micro-communities that serve the interest of its members.

The third trend is the rise of a creative society and human spirit marketing. The authors suggest that the influence and status of creative people – who generally tend to innovate, collaborate and express themselves more than others – is on the rise because the creative class pursue self-actualization and place the same demands on the products and services they consume. Marketers wishing to capitalize on this trend should focus on communicating credibility and supplying meaning to its consumers.

So how does a marketer function in Marketing 3.0?  Borrowing from Ries and Trout, the authors suggest that marketing 3.0 should be redefined as a triangle of brand, positioning and differentiation, but then build on this formula by introducing their own “3i” model, which they feel completes the connections in the Ries/Trout model.

In the Marketing 3.0 model, the 3is stand for Identity, Image and Integrity.:

  1. Identity is the relationship between positioning and brand and seeks to address the rational portion of the value proposition. In Marketing 3.0, the key here is how you address the mind, the consumer’s rational thoughts about the brand.
  2. Image lies at the juncture of differentiation and brand, and strives to capture the emotions of the target audience. Here the key here is how you address the consumer’s heart – what they feel about the brand, themselves, the category, etc.
  3. Integrity is the intersection of positioning and differentiation and aims to authentically fulfill the brand promise and foster trust. This is the “newest” of the three “I”s, and speaks to such issues as authenticity and soul – of the consumer and the product.

At first glance Marketing 3.0 appears overly ambitious. The idea of addressing the whole person – and doing so on a global scale –  is difficult to grasp from a segmentation perspective.  However, the book provides strong evidence and references to human-centric marketing currently underway.  And I can personally vouch for the practicality of their thesis as I find myself attempting to solve both human and global concerns via our strategic alignment and collaboration with key constituents.

My only criticism of the book is the 3i model.  The section is underdeveloped and its theory is ambiguous.  Had they made this more of a “how to” chapter, explaining step-by-step how marketers could implement it, their thinking would have been much more useful.

Marketing is evolving and the stakes are higher.  If you want to differentiate, you cannot do so through tactics, you must choose a different strategy.  Marketing 3.0 can raise your thinking to the next level.

Good marketing!

This book review was published in PM360.

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5 marketing questions to ask yourself right now!


This week I had the privilege of joining MarketingProfs for the Seth Godin webinar titled 57 Ways to Connect with Your Customers & Get Them to Spread Your Ideas with You.  As I sit back reflecting on the week, I go back to a statement that Seth made – “Marketing is about making promises and keep ‘em.”

Is it that simple? YES! It is both simple & difficult.

This statement has kept ringing in my head and it’s very timely. We just kicked-off Q1 and while our first quarter is fully underway, I find myself cementing the tactical plan for the rest of the year (Q2-Q4). So as I consider future direction, I’m asking myself these questions, based on Seth’s statement:

5 Questions

•  Is the promise clear, relevant & differentiated to the target audience?

•  What vehicles am I executing to make those promises a reality in the client’s view?

•  Will my organization stand behind the brand promise?

•  How much marketing focus do I spend on post-sale client satisfaction?

•  Am I fully leveraging happy clients in case studies, testimonials or referrals?

In all transparency, at this point, I give myself a slightly above average score… but it’s not good enough. The value of Seth’s statement is its simplicity & clarity. However, as marketing practitioners, while doing business planning, negotiating with internal/external stakeholders & just the daily pressures, our clarity can, and often does, become obscured.

So I wanted to post these questions to you with the hope that you benefit from them as well. It’s early on the year. If you’re unsatisfied with your answers, the time to act is now.

Good marketing!

 

Built to Love by Peter Boatwright and Jonathan Cagan


Can emotions be engineered? “Absolutely! You can engineer products to elicit specific emotions,” said the co-authors of Built to Love: Creating Products that Captivate Customers in my interview with them. As a matter of fact, their book promises a road map to delivering the strategically intended emotions to your target audience. Yet when we think about influencing emotions, we usually rely on advertising or other communication vehicles, often neglecting critical product development considerations. 

 

Supported Versus Associated

Supported emotions are evoked by the product itself. They are deliberately designed into the product. Think of a Lamborghini—the way it’s manufactured, the body of the car, the standards of the engine, the interior of the vehicle, and, ultimately, the way it seeks to make its driver feel. The authors make the case that the benefits of supported emotions are provoked in each use or experience and can be less expensive and provide longer-term advantage than those of associated emotions.

Associated emotions are manufactured through repeated links with the product. Think of Coca-Cola’s sponsorship of the 2010 Olympic Torch Relay. Right-on strategy with their current Open Happiness campaign. The authors see these as superficial, manipulative, expensive, and difficult to sustain in comparison with supported emotions.

Statistical Proof for Emotional Strategy

Emotions are not just warm and fuzzy feelings; they can create differentiation, provide price protection, and deliver higher margins. In Built to Love, the authors unveil a 10-year prospective model that measures the ROI of emotion-based companies versus similarly profiled companies. Even after removing outlying companies like Apple, their study proves that emotion-based companies provide an ROI eight times greater than the relevant benchmark. Their conclusion is that an emotion-based strategy is a profitable long-term investment for growth.

A Practical Model 

Built to Love provides a three-step model to engineer emotion-based products:

1.  Determine the appropriate emotions for the product. The book provides 16 emotion categories that serve as a quantitative scorecard for strategic intent and competitive analysis. 

2.  Craft an emotion-based strategy. Synthesize deliberate emotions into your product development strategy.

3.  Translate strategy into emotion-based features. Design critical touch points to stimulate intended emotions and continually meet customers’ needs. 

The book is peppered with case studies on how products from consumer and B2B companies have successfully and profitably executed an emotion-based strategy.

Commentary

I found the book innovative in its approach linking emotions with product development and profits. I asked the authors what a highly regulated healthcare marketer, who is often relegated to controlling downstream vehicles, can do to impact supported emotions. Their answer was to challenge ourselves to broaden our definition of product, to include services, packaging, adjacent products, and technologies that can support our product emotions. It’s a worthy challenge, since, after all, people buy a product not only because of its function but also because of the way it makes them feel.

Good marketing!

Ramiro Roman

Published in PM360.

Sometimes the sun and moon align : Marketing Innovation


 VG @ GEThis week two events coincided to complement each other.  The first (sun), we had a major market research deliverable that yielded the client insights we needed to finalize our preparation for an upcoming offering launch.  The second (moon), I had the privilege to attend a session by Vijay Govindarajan “VG”, thought leader, author of several publications on innovation, and Professor in The Tuck School of Business at Dartmouth.  Both coincided nicely to help our team deliver new value to our clients and GE. 

“Client INSIGHT not HINDSIGHT” – VG

As it relates to the market research project, this quote reaffirmed the approach we executed.  The basic premise here is that you must truly understand client needs, versus attempting to understand how you can sell more of your product.  There is a clear distinction between both and it will produce a significant strategic direction in your market research.

Achieving this decision, as easy as it appears, is more complicated than it sounds.  In this case, three months ago, while in our planning phase, this decision yielded a large discussion with people on both sides of the fence.  Why?:

  1. We live with the pressure to sell what we already have.

  2. We didn’t know if we could execute on the new findings.

  3. There is a general skepticism on whether market research will provide us an answer or it will be limited to that sample group (everyone has exceptions or outliers as examples). 

  4. We thought we knew the answer.

We debated this internally but in the end we made the right decision; we wanted to truly understand client needs, even if we did not have an answer for those needs with our current portfolio.  The end result is that the research, focused on client needs, yielded the information we needed as an organization to attack a $1 billion market.  Yes, sometimes the sun and moon do align. 

Resources

If you’re interested in VG’s work, here’s a good blog that explains his 3 Box Model.  Also, here’s a video that encourages us – especially marketers – to execute on innovation, beyond theory. 

  

Good marketing!

A 5-step Messaging Ladder for a B2B Solution Launch


 

This week I find myself preparing for a new consulting offering launch.  Over the next couple months, we will be launching into an innovative space.  I have significant product launch experiences, going back to my first launch at J&J in 1997 (Nicotrol Inhaler®). 

A key learning over the years is that while many things are critical in a launch, one challenge that continues to surface is the messaging.

Your go-to-market messaging is critical because it will be the first thing your customers hear about your product.  Like personal introductions, your first :30 seconds will determine how your product is remembered.  Of course, your messaging should always be based on your positioning. 

So, having said that, I find solution launches an even greater challenge than a product launch.  Unlike a product launch, there are no detailed package inserts or mechanical specifications.  A solution, by nature, is custom.  Another challenge is that there is no other solution in the market today that fits into the competitive framework.  These challenges are both threats and opportunities for our messaging.

So I created a messaging ladder specifically for solutions to capitalize on this opportunity.  This is a worthwhile tool in crafting a message for any product, but has a greater application in the services/consulting industry. 

 5-step Messaging Ladder

[in chronological order]

  1. Client Need – the apex of all marketing, what is the true (stated or unstated) need?
  2. Utilize a reference point – if you’re first to market, use well known products/solutions in related categories as references… but quickly focus on your outcomes
  3. Differentiate (unique) – easier said than done, but why will you deliver on the outcomes you’re promising while no one else can
  4. Substantiate your claims – move beyond theory, difficult in a launch, but use pilot, projections, or past experience (team, solution set, tools, etc…)
  5. Why is this urgent now? – The number one barrier in solutions is NO DECISION… your marketing needs to overcome this barrier at launch

I’m finding this a very useful and practical model.  And while I’m sure it’s not perfect, it will get you 80% to success…. The rest is up to you…  thoughts?  Challenges??

 Good marketing!

 Ramiro Roman

Maximizing marketing effectiveness through Change Acceleration Process (CAP)


Last week I found myself at the GE Healthcare Institute listening to a lecture on CAP.  We were privileged to have an adjunct professor from the John F. Welch Leadership Development Center.  General Electric (GE) is the creator of CAP, which is defined by the Harvard Business Review as “a process the equips leaders with a proven method of managing change and prepares them to succeed as change agents.”

If you’re in commercial marketing and are responsible for planning and executing strategic programs, then I’d argue that you should be an excellent change agent.  It’s not enough to be the “smartest” or “most strategic.”  Leave that for the academics.  We marketeers, who make a living out of our profession, need to increase the probability of success of all our programs.  CAP provides a model to achieve this end.

Why do marketing programs succeed or fail?

As I look back over the 18-years of commercial experience, the marketing programs that have worked out were well executed, by design.  The others that have been sub-optimal were because they did not have the appropriate organizational – people – support.  Top of mind on my list of “wish I could take that back” are:

  • New segmentation models that failed to materialize past the binder that was handed out.
  • Customer Relationship Management (CRM) implementation with very little adherence to reporting.
  • Pricing strategies contingent on customer type, which had no governance. 
  • A joint venture with a dual sales distribution plans that were not aligned on incentives. 
  • The list can unfortunately go on, and on…

 

As I reflect on these, I realize that people issues are the biggest challenge through the execution phasePeople naturally resist change.  When we attempt to roll out new programs to our teams (direct reports, sales, operations, compensation, etc.) we are faced with the same human resistance.  As marketers, we must plan for success with this background in mind.  Only then will our programs have an opportunity to be executed or even stand a chance of delivering on our objectives.

The CAP model can help

CAP is a handy tool that can be applied to any change we seek to implement.  As a marketer, I should see all my initiatives as change, particularly large programs, because at the core of it I am seeking a group of people to embrace, support and respond to the marketing programs.

Keep these 7 CAP phases in mind as you’re planning your next marketing program:

  1. Find leaders for the change.  Have a program sponsor/champion and the right team members who demonstrate visible, active, public commitment and support of the change.  People who walk the talk.
  2. Create a stakeholder-shared need.  A compelling reason to change, whether motivated by threat or opportunity, is instilled within the organization and widely shared through data, demonstration or demand.  Stakeholders need to be part of the need creation, no one likes to be told what to do, they want to be part of the solution – capitalize on this.    
  3. Create and communicate a vision, with input from stakeholders, early on the process.  The desired outcome of change is clear, legitimate, widely understood.  Outline your behavioral expectations for all stakeholders – define success in behavioral terms. 
  4. Mobilize commitment, down to the lowest levels.  Demand a strong commitment from constituents to invest in change, make it work, and provide the appropriate senior management attention.  Constituents commit to change and new standards.
  5. Help to make the change last.  Provide communication vehicles for change and learnings to be transferred throughout the organization.  Early wins are publicized to build momentum for the change.
  6. Monitor the progress.  Progress is benchmarked and realized.  Create relevant metrics by stakeholders to ensure accountability.
  7. Changing the systems and structures.  Making sure that the management practices (staffing, development, rewards, measures, communication, organizational design, IT, etc…) are used to complement and reinforce change.  

 

Utilize these steps as guides.  CAP is a way of leading, not just a simple list.  Your success will largely depend on your planning of the change and how you move your projects through these phases.  Try it!  I guarantee you more success!!!

Ramiro Roman

LinkedIn: www.Linkedin.com/in/RamiroRoman

Twitter: http://twitter.com/ramiroroman

Blog:  https://marketing4marketeers.wordpress.com/

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Expand your marketing skills through C.A.S.E. leadership


Paris France, July 2010

Last week I found myself in in Paris listening to Professor Gareth Jones when he made a statement that struck me as lightning… “over time, your technical competencies WILL DECLINE.  You must get things done through people.”

The thought, realization and digestion of the fact that at some point in my career, I will decline technically is frightening to me.  I realize that I don’t do everything well.  But one thing that I obsessively work on is my marketing technical knowledge.  Why?  Because I’m a practitioner – that is I make a living out of my marketing skills.

To be the best marketer I can possibly be, I proactively seek to relentlessly improve my skills.  I devour new books, participate in industry forums and follow thought leaders with the intent to raise my performance level.  Yet, deep in my heart, I know that Professor Jones’ statement is true.  It’s probably happening already whether, I’m willing to face it or not. 

Expand Your Marketing Leadership

 

After walking off the ledge, I can face the statement with a renewed confidence.  Yes, my technical skills may decline – though I will tirelessly work to remain relevant.  And yes, others will come along who surely will outperform me.  But the key is to achieve excellence through people.

I happen to directly manage a very talented team so by position I’m a leader.  But you don’t need direct reports to lead.  Professor Jones defines a follower as anyone you need to excite to exceptional performance.  It may be your agency, your peers or your management.  We all have followers who, when leveraged, can raise our performance to higher standards.  I use the word leverage in the context of collaboration, synergies, and interdependent relationships.

The objective is to unleash incredible value through others, regardless of your technical competencies.  This type of ‘know-how’ unlike technical ability, gets better with time and experience.  Therefore, for a bread-winning marketer like me, it’s the way to stay on top of the performance game, in spite of future skill deterioration.

The C.A.S.E. Leadership Framework

 

To excite others to exceptional performance you have to meet your follower’s needs.  Professor Jones has combined his body of professional knowledge, both in the private sector and academia to provide a workable framework.

C.A.S.E.:

  1. Community – build a purpose to belong and provide the social context for meaningful connections.
  2. Authenticity – be who you are, genuinely.  Capitalize on your strengths and be open about your areas of development.
  3. Significance – feedback, recognition and celebrations are key to your followers.
  4. Excitement –  be a model for energy, enthusiasm and passion, but all within your authentic capability.

 

The theory is that working through this framework you can excite others to exceptional performance.  The acid test to for leaders is the question: why should others be led by you?  You can download a free copy of the original article from Harvard Business Review.

I believe Professor Jones is right on, whether you’re new on the job or experienced.  Getting work done by inspiring others is much more powerful than relying on your technical skills – combining both is optimal.  C.A.S.E. provides a framework for me, even as an eighteen year veteran, to  remain on top of my performance, even if my skills deteriorate.

Good marketing!