Sie sind auf Seite 1von 32

RETHINKING MARKETING

BY
ROLAND T. RUST, CHRISTINE MOORMAN &
GAURAV BHALLA
Introduction
Too many companies are still managed as if were stuck
in 1960s?
We live in an era where:
Customers are more Powerful!
Interconnected Global Economy
New Performance Imperative:
FIRST PEOPLE, PLANET & THEN PROFITS!
Hence it is important to RETHINK THE WAY:
To create value!
To shake hands with customers!
To measure your perfomance!
Common Perception of Marketing:
- Advertising or Selling!
- Customers and consumers are created for
brands.

Driving Profitability of the Customer, Drives


Value For Yourself!
Cultivating Customers
Tradional Customer Cultivated-Company
Push products and brands Serve customers and
Product manager customer segments.
Minimal direct contact Customer manager
between customers and Two-way communication
firm. and individualized.
Focus on building
relationships.
Cultivating Customers
IBM
Coordinates its marketing efforts across
products for individual customers.
IBMs insurance practice.
Tesco
Analysis customers buying patterns.
Data-collecting through loyalty card.
Promotions and discounts are customized
according to customers needs.
American express
Customer data analysis to predict next best
product
Offering special Membership Rewards.
Reinventing Marketing
Many empty promises being made to
customers.
Prime focus is to sell the product/service.
New strategy should focus more on
relationships rather than transactions.
AKA Customer Cultivation
Marketing Dept -> Customer Dept
CMO -> CCO
The CCO
Becoming increasingly common
Big multinationals focusing on having a CCO
Conventionally CCO tries to make
organisation customer centric
More autonomy should be given.
Design and execute firms customer
relationship strategy
The CCO (cont)
Top management should engage with the
customers.
Gives a better understanding of the issues
and needs of the customers.
Higher the customer focus, better the
decisions and its outcomes.
Some firms underutilize the customer data.
Customer Managers

Customer Dept

Customer and
Segment Brand Managers
Managers

- Identifies - Supplies that


customers product to fulfill
product needs. that need.
Customer Managers (cont)
What is needed?
Resource shift
People
Budgets
Authority

From product managers to


customer managers
Customer Managers (cont)
They should be able to:
Sophistically interpret data
Extract insights from data
Monitor customer behavior and attitude
Approach customers as behavioral scientists
(interact with and understand them)
Customer Facing Function
Its another name for CRM (customer relationship
management).

Equivalent to our sales process.

Management of our team members who touch the customer.

Management of our customer service team.

System we use to manage customer value.

Our onsite team to manage customer expectations.


CFF encompasses all activities, people,
technology, communications, knowledge, and
processes that connect your business strategy
to your customer outcomes.

Most of us look at our business strategy and


plan through our internal lens, whereas a
customer facing organization views their
business through the customer lens.
LITERAL DEFINITION OF 'CUSTOMER FACING'

A type of business role where the employee


interacts directly with the customer, in person.

Customer-facing functions are important and are


used to understand the client's needs or to solve
problems , a computer would have too much
difficulty doing.

Many companies will automate or outsource this


function if it can save expenses.
CRM
A system for managing a company's interactions with
current and future customers.

CRM allows companies to increase both their revenues


and profits while lowering the cost of marketing,
selling to and servicing their customers.

The payoff is clear - by better aligning business


processes and managing customer data across all
customer-facing functions, companies can build
successful, profitable and long-term customer
relationships.
The importance of managing customer relationships has been
recognized by virtually most of the companies, business with the
public, such as airlines, banks, retail outlets, and other companies.

CRM is one of the largest and fastest growing segments of the


information technology and services marketplace. Harte Hank
Survey of 300 companies in north America says that:
42% by IT.
31% by sales
9% by Marketing

The goal of a CRM strategy is to create long-term, profitable


relationships with an organizations best customers. Thus CRM to
include not only customer-facing functions such as sales and
service, but also marketing and information management.
MARKET RESEARCH
1. The internal use of marketing research extend
beyond the marketing department to all areas of
the organizations that touches customers

2. Scope of analysis shifts aggregate view to an


individual view of customers activities and value

3. Market research shifts its attention to acquiring


the customer input that will drive improvement
in customer focused metrics.
REIMAGINING THE MARKETING
DEPARTMENT
RESEARCH AND DEVELOPMENT
Investigative activities that a business chooses to
conduct with the intention of making a discovery
that can either lead to the development of new
products or procedures, or to improvement of
existing products or procedures.
Research and development is one of the means
by which business can experience future growth
by developing new products or processes to
improve and expand their operations.
While R&D is often thought of as synonymous with
high-tech firms that are on the cutting edge of new
technology, many established consumer goods
companies spend large sums of money on improving
old products.

For example, Gillette spends quite a bit on R&D each


year in ongoing attempts to design a more effective
shaver.
On average, most companies spend only a small
percentage of their revenue on R&D (usually under
5%). However, pharmaceuticals, software and
semiconductor companies tend to spend quite a bit
more.
CUSTOMER SERVICE
The process of ensuring customer satisfaction
with a product or service. Often, customer
service takes place while performing a
transaction for the customer, such as making a
sale or returning an item.

Customer service can take the form of an in-


person interaction, a phone call, self-service
systems, or by other means.
Customer service is an extremely important part of
maintaining ongoing client relationships that are key to
continuing revenue.

For this reason, many companies have worked hard to


increase their customer satisfaction levels.

Often there are many more people working behind the


scenes at a company than there are customer service
representatives, yet it is primarily the personnel that
interact directly with customers that form customers'
perceptions of the company as a whole.
New focus on customer
metrics
New metrics for a new model
Shift from marketing products to a cultivating customers demands a
shift in metrics as well

Product profitability Customer profitability

Current sales Customer life time value

Brand Equity Customer Equity


Market Share Customer Equity Share
Less focus on product profitability

More focus on customer profitability


Pay less attention to current sales

More attention to customer life time value

Customer life time value metrics evaluates future


profits generated from customer, focus company
on long term health
Brand Equity Customer Equity

Increasing brand equity is best seen as a


means to an end

Customer Equity has the added benefit of


being proxy for the value of the firm.
Pay less attention to current market share

Pay more attention to customer equity share


Why companies need metrics?

Evaluating progress in collecting customer


information

Evaluating progress in using customer


information
THANK YOU!