Prof. R.

Venkataraman

Waiting for Phd in Management

MSc Logistics 2005

PGDBA 1971

BSc 1966

All-round experience of 37 years in Logistics industry, comprising of 20 years in the aviation industry and 17 years in the shipping industry, of which almost 18 years was in Singapore

Manager Madras airport 1984 Reservations manager 1979 Country Manager Singapore 1987

Management trainee 1971

STRAITS SHIP SERVICES PTE LTD Singapore

Director and Strategy adviser

Was admitted as Chartered Fellow FCILT BY

Bangalore

Programmes In Asia

I was blowing my own trumpet. Please Bear With me If It was too loud

Course Objectives
This course helps students specializing in Marketing to focus on specific areas in marketing and work towards formulating a Marketing Strategy for success.
To create an understanding as to: What is Marketing strategy and its scope? How is Marketing changing?

How to make Marketing Plans successful?

Performance objective
1. At the end of this course you should be in better position to understand marketing problems and will learn to leverage marketing analysis for enhancing your marketing mix decisions. 2. You will have a better awareness of the strategic and tactical decisions of todays top performing marketing organizations.

Main reference book

1. Marketing Strategy: A Decision Focused Approach by Orville C. Walker John Mullins Harper W. Boyd, Jr. Tata Mcgraw hill
2. Marketing Management by Philip Kotler 13 edition

Course delivery
1. lectures, class discussions and cases
2. Mostly case discussions. 3. Students will be forming groupts and make presentations 4. There will be an assignment on new product/service launch and a marketing plan presentation.

Evaluation criteria

Assignments/Quiz 30 Marks Midterm examination 30 Marks Final examination 40 Marks --------------------------------------------------Total 100 Marks

I believe that

let us make it more interactive so that, learning and sharing happens together

Questions if any ?

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New information ecosystem: Then and Now

Industrial Age
Info was: Scarce Expensive Institutionally oriented

Information Age
Info is: Abundant Cheap Personally oriented

Designed for consumption

Designed for participation

The internet is the asteroid: Then and now

2000 2011

46% of adults use internet 5% with broadband at home 50% own a cell phone 0% connect to internet wirelessly <10% use cloud = slow, stationary connections built around my computer

74% of adults use internet 58% with broadband at home 85% own a cell phone 72% connect to internet wirelessly >73% use cloud = fast, mobile connections built around outside servers and storage
(US statistics)

The Old Purchase Funnel

The New Purchase Funnel

Decision Process is Non-linear Dynamic Influenced by multiple sources

What Does It Mean to Marketers?

The decision-making process has become more complex, dynamic and its phases interdependent More importantly, marketers need for the information delivered to be relevant. Marketers need to know what kind of touch points are relevant to influence people in which phase of the process and how these efforts play together in an optimal way.

The greatest challenge

Management should change fast enough to keep pace with new technology, new markets and new values.

Take hold of the future or the future will take hold of us.

Consumer Behaviour A new Look . . .

Higher Psychological Deficits Disconnecting and exiting customers Consumers are increasingly time and effort starved Virtual and E-shopping behaviour

MOBILITY
On-the-go consumers want information, entertainment, services at the tip of their fingers, wherever they are. Mobile apps & mobile browsing services that bring information and are easily will take the cake!

TOUCH & FEEL

Touch and motion now guides status and aspiration amongst consumers. Its a key symbol of coolness and social arrival that cant be ignored. Touch & motion do not have to end with smartphones and tablets but screen culture can permeate restaurant experiences, teleconferencing, office presentation, in-store and point-of sale display.

CASHLESS
consumers move to their ATMs, mobile banking, and debit cards, making these items even more prominent in daily lifestyle. 2012 will bring about increasing familiarity with mobile payments. This opens up new avenues for rewards, deals, & data collection, more enphasis on e-commerce and e-payments.

BETTER ON MY OWN
Increasing access to social and new media means theres more direct access to consumers and to providing the product/service they want. App developers and bloggers can create value and generate a sustainable income from the comfort of their homes! quitting their jobs.

RECESSION FATIGUE
For middle-class earners, this may mean foregoing vacation and opting for budget holidays and frugal spending.

Low income consumers know where the shoe pinches but will save all year for that special birthday meal at a budget restaurant.

Consumer Spending changing

Consumers still willing to buy latest techno equipment (iPads, and iPods and several wow!s) But theyve learned during the recession how to negotiate their own price for many commodities Are aware that greater price transparency through search engines mean greater bargaining power!

New age marketing

Better understanding of whats going on inside the customer head? A new mind set More of Neuro Marketing

New connections? How to create and maintain an emotional relationship with customers?

The new marketing world consists of mobile sites, social marketing and much more to reach out to a customer in every possible manner

FOCUS

Customer Retention and Loyalty

>

Customer Aquisition

<

Personalised Technology that can engage customer with a brand

Technology which aims at personalizing the customers engagement with a brand will take the forefront

Intelligent Data integration for effective business decisions

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Market segmentation has become schizophrenic to understand what your customer wants?
http://www.biohealthpartners.com/wp-content/uploads/2011/02/Business+Plans1-199x300.jpg

http://keenandijon.com/wp-content/uploads/2011/03/mobile-marketing-trends-2011.jpg

Mobile marketing explodes with escalating smartphone adoption; making it a viable channel for marketers to effectively communicate with a customer

Marketing analytics are red hot to identify, analyze and describe constantly changing marketing patterns
http://www.boundscheck.com/wp-content/uploads/2011/01/2138514363_business_meeting_with_laptop_smaller.jpg

Multichannel marketers have to do more than allocating sales to efficient customer interaction and their satisfaction
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Geo-targeting and localized marketing will become a top priority

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 The need for trust, value and brand transparency is as vital today as it was last year. However, the current shift to geo-targeting, mobile marketing and online reputation management are rapidly gaining grounds. This has made the marketers to modify their strategies to outshine their competitors.

The Development of Technology: From Knowledge Generation to Diffusion

IMITATION

Supply side
Basic Knowledge Invention

Innovation

Diffusion

Demand side
ADOPTION

The Development of Technology: Lags Between Knowledge Generation and Commercialization is narrowing consistently
BASIC FIRST KNOWLEDGE PATENTS
Xerography
late 19th and early 20th centuries 17th-- early 20th centuries 1960s 1940

PRODUCT LAUNCH
1958

IMITATION
1974

Jet Engines Fuzzy logic controllers

1930 1981

1957 1987

1959 1988

Technology love-affair drives applications & consumer activity

The mobile market is exploding (100,000 new apps for iPhone alone, at beginning of 2010). Addiction to Facebook,Twitter, digital messaging, photo/video sharing fuels our perceived need for new devices.

Mobile is everything for the customer

A mobile phone or its wiser cousin the smart phone is the customers wallet, computer, camera, social hangout, a gaming device, mobile bank and finally a phone too. Use of location based services, m-coupons and m-loyalty will increase manifold.

World ICT Market Trend

Virtual Era Internet Era 2010

PC& Client
Mini Computing Mainframe 1980

1990

1960

1950

Source: Dell Summit 2011

The world is preparing for post PC Era PC desktops will be getting fossilized soon as museum pieces

2011

New Entrepreneur Explosion

On a micro-scale, individuals are exploiting unlimited reach of the web:
Using Give-aways, Contests, Video, Webinars, Whitepapers, & Slide presentations, Trial Memberships
Which serve for list-building for emails To build reputations & followers, usually with the end-goal of selling

Revolutionary media shifts

Continued collapse of print medium
Case in point: Reed Business Information shuttered 23 magazine titles in single day in April!
*source: BtoB online, May 2010

Media shifts
Acquisitions, Consolidation & merger of media sources continues, making megalithic influencer entities

Microsoft allignment with Yahoo Google purchased YouTube Twitter purchased Cloudhopper Google rumored to purchase Twitter ?

These difficult times for newspapers continues

News Corp announces 97% drop in newspaper profits

May 7, 2009

Seattle PostIntelligencer to Stop Printing Newspapers

March 16, 2009

The beginning of 2009 saw the greatest decline in newspaper profitability in U.S. history
August, 2009

Newspapers run the risk of unending losses Warren Buffett

May 6, 2009

U.S. newspaper industry lost $7.5B in advertising revenues in 2008

March 29, 2009

Boston Globe Not Viable With Current Losses, Publisher Says

June 3, 2009

Companies are Monetizing Subscriber Base By Creating An Interactive Community

Subscribers participating in an on-line community drive higher number of page views than traditional on-line newspapers.

This leads to increased profits via:

Sale of banner ads Video advertising Rich media Sponsoring Polls combined with the SMS voting to generate new revenue streams

Biz-use of the web & mobile for greater efficiencies:

Discovering Cloud-computing and Using more virtual tradeshows Rolling out webinars on new products & services Customer interactivity reinforces consumer engagement & loyalty Smaller businesses deploy robust, sophisticated websites to compete against larger ones

E-commerce companies looking at coalition partnerships

Specialized Coalition Loyalty Programs addressing specific customer groups based on socials levels, activities and interests will emerge.

B2B Marketing Trends

Content Marketing Create content that your prospects perceive as valuable across each stage of their buying cycle. Syndicate that content to support thought leadership, brand awareness, and inquiry generation; and always update the content.

At the end of the day its about content.

Social Media Engagement is MUST

The proliferation of information, inventive methods of reach and ease of connect would make Social Media impossible to ignore.

 Traditional media has contracted Everything becomes digital media Companies must be their own media Website Blogs White papers Flikr Facebook Twitter

Growing success of interactive marketing

Modern marketing is a two-way conversation that utilizes traditional, digital and social mediums to connect with existing and potential members. Currency Marketing There is a trend from traditional media toward online marketing activities that allow for customer behavior tracking and concrete metrics. Aberdeen Research

but stimulates a more balanced approach, where traditional supports interactive

Traditional Marketing
Supports

Interactive Marketing

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This is a new dimension of marketing and it cannot be ignored anymore.

BRAND DIRECT MARKETING RESPONSE

Practicing SIM produced measurable business results . Revenue increased during the course of the effort
@shivsingh http://goingsocialnow.com

Do you need more of a justification for SIM? Pepsi using social instead of the Super Bowl ads for marketing purposes
@shivsingh http://goingsocialnow.com

Once a upon a time Best Buy only advertised like this. The way many other companies continue to advertise
@shivsingh http://goingsocialnow.com

But then it started developing SIM Voices starting with the CMO, Barry Judge and other members of his team
@shivsingh http://goingsocialnow.com

Now theyve taken their whole brand social social influence marketing voices are the face of their brand across every channel and platform
@shivsingh http://goingsocialnow.com

3
Brand Voice Social Voice Social Brand

Where are you on this continuum? Where do you need to be?

@shivsingh http://goingsocialnow.com

Your Brand

Your Community

Your Community

Your Brand

Community now becomes the core

@shivsingh http://goingsocialnow.com

Twitter grows
Twitter saw well over 1 BILLION Tweets in Jan. 2010! Twitter now wants to monetize or cash-in with new ad platform- Promoted Tweets
(Being tested by Best Buy, Red Bull, Sony Pictures, Starbucks & Virgin America)
The incredible growing Twitterbird (graphic from Aravind Ajith , aka The Design Superhero)

3,000,000
Thats the number of tweets a day. But what are they about?
@shivsingh http://goingsocialnow.com

Tweet statistics
50 million. The average number of Tweets people sent per day, one year ago. 456. Tweets per second (TPS) when Michael Jackson died on June 25, 2009 (a record at that time).

177 million. Tweets sent on March 11, 2011. (earthquake and tsunami in Japan)

Marketing today is about influence. Heres research from the auto space

@shivsingh http://goingsocialnow.com

Social influencing matters in the car industry

More than 20% of car recommendations by influencers are followed ..even for such a personal purchase.

CATEGORY

AUTOS

CONSUMER ELECTRONICS

HOTELS

Recommended their purchase to a friend

67%

83%

59%

At least one friend purchased the recommended brand

14%

21%

15%

Source: Yahoo! Advocacy Research.

@shivsingh http://goingsocialnow.com

As a new car is a key conversation topic

Connected consumers will tell 20 PEOPLE on average. How many people did you tell about your purchase?
AUTOS CONSUMER ELECTRONICS HOTELS

20.3

14.7

11.1

@shivsingh http://goingsocialnow.com

Source: Yahoo! Advocacy Research.

With brand conversations increasing online

1 IN 10

ADULTS

IS USING SOCIAL NETWORKS OR ONLINE FORUMS TO SHARE INFORMATION ABOUT PRODUCTS THEY LIKE.

21%
@shivsingh http://goingsocialnow.com

OF CONSUMERS ARE LIKELY OR VERY LIKELY TO HAVE ONLINE SOCIAL INTERACTIONS WITH A CAR MANUFACTURER.

Source: Forrester Research

The point is youre never going to buy a car again alone.

Youre influencing and are being influenced everyday

This applies to all other buys
@shivsingh http://goingsocialnow.com

Experience Rewards
The new age customer selection

More Customers would want their points and rewards to be redeemed for experiences (movies, events, spa, luxury holidays etc) rather than products

Privileges will win over discounts

The importance of Freebies and offers will continue to dictate but its popularity might take a rude check. The same would have to be used cleverly and with guile. Barrage of discounts and offers for customer acquisition will not please the loyal customers; Privileges will win them over instead.

Firms Do a Re-Org
Re-organization of companies, continuing integration of Sales & Marketing. Reshuffling & renaming departments internally continues. Flattened levels of large companies & their functions are outsourced abroad or subcontracted to specialist providers, like CRM solutions, Social Media specialists, etc. Services like PR and advertising becoming obsolete, replaced by multipurpose web & creative agencies.

Companies are re-thinking C-suite responsibilities:

Microsoft recently named a CCO (Chief Creative Officer) & CSO (Chief Strategy Officer). Kodak created a CLO (Chief Listening Officer) post. Chief Networking Officer (CNO) & Chief Branding Officers are other new C-level roles, sitting at the table with the CMO & CTO, representing marketing & technology.

Firms Do a Re-Org
More money spent on segmented email campaigns. Marketing function now required to deliver solid tracking results, such as length of customer engagement over time. Emergence of new analytics to help, e.g., IBMs new Social Media Analytics Tool, which can analyze everything from product names and industry jargon to slang and emoticons.

Firms Do a Re-Org
Twitter, Face book etc fuel a social insatiability complex

Consumers are getting increasingly influenced on the net.

Companies keep an ear to the ground & expected to respond in real time

Marketing is changing
Paid placement will be more targeted and entertaining. Remarketing allows advertisers to target users already engaged with brands through prior website visits.

Website content changing, too

Websites content changes will need to be more frequent, as visitors seek the novel, yet designers will need to keep positioning of key features constant. Another bonus for frequent updates: Google started incorporating real-time listings in its SERPs (Search Engine Results Pages).

The media mix has clear winners and losers

Direct marketing Email marketing Traditional TV POS Print (Press/ Mag.) Event marketing Sponsoring

Overall media budget # of companies planning to use the selected medium more Evolution of share in total media budget of the selected medium Conclusion More buyers, less spend per buyer Large increase TV market not heavily down Probable status quo Serious cut Serious cut Serious cut

Source: UBA/Profacts February 2009 Survey, combined with Stichting Marketing/THoM 2009 YMS Survey

Marketers must balance and manage various pressures

Draft

Consumer engagement and experience

Understand change and evaluate performance and impact

Deliver customer value

Marketers role redefined

Leverage all information and analysis

Constantly Differentiate

Develop innovative and sustainable offerings

1. Consumers keep evolving and engaging 2. Online integration, marketing analytics and customer value 3. Marketers need to be measurable, innovative and sustainable
The House of Marketing www.thom.eu June 2009 Not for publication without prior written consent

Some futuristic thinking - 2020

The future of privacy: Privacy is a thing of the past. Technologically it is obsolete. However, there will be social norms and legal barriers that will dampen out the worst excesses.
Hal Varian, University of California-Berkeley and Google

Some futuristic thinking - 2020

Before 2020, every newborn child in industrialized countries will be implanted with an RFID or similar chip. Ostensibly providing important personal and medical data, these may also be used for tracking and surveillance.
Michael Dahan, a professor at Sapir Academic College in Israel

Some futuristic thinking - 2020

The evolution of smart machines: Fear of enslavement by our creations is an old fear, sometime after 2020 our machines will become intelligent, evolve rapidly, and end up treating us as pets.
Paul Saffo, forecaster and director of The Institute for the Future

As marketing becomes more social and mobile, privacy issues wont be going away anytime soon
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Google is working on face-image recognition + search record data + location data

Is privacy a ?

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Convert your phone into a magic wand

Google believes near field communication (NFC) is the future of mobile,. At present only Android 2.3 supports it.

NFC

Contactless mobile payment services will be a key lifestyle driver for our highly mobile, international and increasingly urban customer
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