The Hindu Business Line : Seismic change in macro-marketing

WHAT'S new in the field of marketing? The answer is `new,' as if the question begs the answer. Also new to traditional thinking would be the thought that `demand system' is not a mere curve that economists would draw on a graph paper, but a `living' one; and we live not in a production-driven economy but a consumption-led one. "This requires turning the supply chain on its head," says Susan Baker in New Consumer Marketing, from Wiley (www.wiley.com) . There is a "seismic change in the macro-marketing environment," and "as the tectonic plates move," companies wonder how best they can "connect with the new consumer."

The new consumer marketing (NCM) solution lies in adopting "a value-centric orientation," notes the blurb, drawing insights from the living sciences, and identifying three key processes — value definition, value creation and value delivery. For Susan, there are "seven elements that make an organisation's DNA work to optimise performance and ensure competitive survival": Intuition, culture and structure, leadership, employees, knowledge management, planning and measurement. Don't take the new consumer for granted, the author warns, because he is "informed, empowered and at large in a dynamic marketplace."

The intro has bad news for retailers: There is "a long-term pattern of declining spend," with the retail sector representing a falling share of GDP. Antidote is "to learn how to work in the consumer's space." If that is not sufficiently shocking, chapter 1 is titled `Earthquake!' with the message that "all businesses are being affected to some degree by the root-and-branch upheaval."

What are the distinguishing features of the NC? He is exercised by time, seeks experiences, is IT-enabled, leads a complex life, is marketing-literate and is highly demanding. There are `time tourists' who pursue agelessness and delight in the finer things of life; their opposites, the `time refugees', seek security and a sense of belonging. He is like a chameleon, "seeming to dip in and out of different stereotypic personality types"; for example, "a passenger might choose to fly business-class or first-class for business travel, economy class for family holidays, and with a special discount ticket for a long weekend." New consumers are not marketing-illiterate. "They can deconstruct marketing activities with almost as much insight as most marketers."

So, you apply the 4Ps or 7Ps to connect, but the NCs are roaming wild. "It is harder to reach consumers who live highly fragmented lives and display multiple personalities, and who change suppliers at the click of button. Such sophisticated and demanding consumers are not confined to a static marketplace but roam freely within an interactive one." Result: Firms end up as price-takers from the `rate tart.'

One of the discourses in the book is about `discourse analysis,' which is about looking for patterns in people's language. These patterns are what linguists refer to as `discourse markers' — "non-semantic, syntactically empty words, such as `like', `um', `er', `kind of', `sort of', `you know' and so on." These are often "carriers of cultural meaning." A successful proposition that uses pre-schooler's language empathetically is Teletubbies.

For branding, an airline uses its staff. "No other airline has such a strong brand image, one that has even been immortalised in wax at Madame Tussaud's Museum in London." Which one? The Singapore Airlines. "Ian Batey, the creator of the Singapore Girl, took a risk when he proposed that adverts should focus on service at a time when other airlines were selling their tickets on the theme of safety." Also, did you know that the airline operates with a ratio of one flight attendant for every 22 passengers, the highest in the world and well above the industry average?

Recommended ratio, therefore, of NCM for marketing personnel, is 1:1.

CatalystBooks@hotmail.com

Article E-Mail :: Comment :: Syndication

Stories in this Section
Can organisations have a better future?

Brand endorser promiscuity?

Seismic change in macro-marketing

Hardsell