Why is Marketing Even More Important Now

8/8/2019 Why is Marketing Even More Important Now

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C.M.G. Shallow MSc (Marketing) BA DipExM DipITB [email protected]

Why is Marketing

Even MoreImportant Now?

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C.M.G. Shallow MSc (Marketing) BA DipExM DipITB [email protected] 1-2

Why is Marketing Even

More Important Now?THE 1990s was the age of

abundance, argued Brink Lindsey in a

book of that title. Round the world, incomes were rising;

capital markets were processing endlessflows of money and investment;

technological gains meant that ever moreinformation was available ever morecheaply.

The Economist, 30thJanuary, 2010, p67.

Why is Marketing Even More Important Now?


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More Important Now?The 2010s, it is sometimes said, will be an

age of scarcity.

The warning signs of change are said to bethe food-price spike of 2007-08, the bid byChina and others to grab access to oil, ironore and farmland and the global recession.

The main problems of scarcity are water and

food shortages, demographic change* andstate failure.


*Demography is destiny, Auguste Comte, 19th-centuryFrench sociologist.



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More Important Now? As the cost of communicating with the other side of

the globe falls essentially to zero, as India becomes(by 2010) the country with the most English speakers

in the world, and as developing nations continue tomint millions of extremely capable knowledgeworkers, the professional lives of people in the Westwill change dramatically. If number crunching, chartreading and code writing can be done for a lot lessoverseas and delivered to clients instantly via fibre-optic cable, thats where the work will go.

A Whole New Mind: Moving from the Information Ageto the Conceptual Age, 2006, Daniel Pink.



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More Important Now?Daniel Pink brings up three crucial

questions for the success of any

business, any person:1. Can a computer do it faster?

2. Is what I'm offering in demand in an ageof abundance?

3. Can someone overseas do it cheaper?




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More Important Now? Lawyers. Accountants. Computer

programmers. Thats what our parentsencouraged us to become when we grew up.

But Mom and Dad were wrong. The futurebelongs to a very different kind of personwith a very different kind of mind. The era ofleft brain dominance, and the InformationAge that it engendered, are giving way to a

new world in which right brain qualities inventiveness, empathy, meaning predominate.

A Whole New Mind: Moving from the Information Age to theConceptual Age, 2006, Daniel Pink.



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More Important Now?There is just a job, and in more

cases than ever before it will go

to the best, smartest, mostproductive, or cheapest worker whereverhe or she resides.

Chapter 6 The Untouchables, The World Is Flat, 2007edition, Thomas L. Friedman.





More Important Now? BUT only certain kinds of white-collar jobs

those that can be reduced to a set of rules,routines, and instructions. Thats why narrow left-

brain work such as basic computer coding, accounting,legal research, and financial analysis is migratingacross the oceans. But thats also why plenty ofopportunities remain for people doing less routineworkprogrammers who can design entire systems,accountants who serve as life planners, and bankersexpert less in the intricacies of Excel than in the art ofthe deal.






More Important Now?In a world upended by outsourcing, deluged

with data, and choked with choices, theabilities that matter most are now closer in

spirit to the specialities of the right [brain]hemisphere artistry, empathy, seeing thebig picture, and pursuing the transcendent.

A Whole New Mind: Moving from the

Information Age to the Conceptual Age, 2006,Daniel Pink.

Why is Marketing Even More Important?




More Important Now?Untouchables, in my lexicon,

are people whose jobs cannot be

outsourced, digitalised, orautomated.

Chapter 6 The Untouchables, The World Is Flat, 2007edition, Thomas L. Friedman.





More Important Now? For Pink creativity becomes the

competitive difference that can

differentiate commodities (and YOUare a commodity, too); that can makepeople untouchables.






More Important Now? Pink outlines six essential senses [for untouchables]:

1. Design Moving beyond function to engage the sense.

2. Story Narrative added to products and services - notjust argument. Best of the six senses.

3. Symphony Adding invention and big picture thinking(not just detail focus).

4. Empathy Going beyond logic and engaging emotionand intuition.

5. Play Bringing humor and light-heartedness tobusiness and products.

6. Meaning Immaterial feelings and values of products.






More Important Now? Untouchables:

Great Collaborators and Orchestrators

Great Synthesisers

Great Explainers Great Leveragers

Great Adapters

Green People

Passionate Personalisers

Math Lovers Great Localisers

Chapter 6 The Untouchables, The World Is Flat, 2007 edition,Thomas L. Friedman.





More Important Now? If you want to be untouchables people

with jobs that a computer or robot cannotdo faster or some talented foreigner cannot

do cheaper and just as well, you need tofocus on constantly developing your right-brain skills such as forging relationshipsrather than executing transactions, tacklingnovel challenges instead of solving routine

problems, and synthesising the big picturerather than analysing a single component.

A Whole New Mind: Moving from the Information Age to theConceptual Age, 2006, Daniel Pink.





More Important Now? Marketing is both an art and a science and combines

both narrow left-brain work and high concept, hightouchcreative right-brain work.

High concept: involves the ability to create artistic

and emotional beauty, to detect patterns andopportunities, to craft a satisfying narrative, and tocome up with inventions the world didnt know it wasmissing.

High touch: involves the capacity to emphasise, tounderstand the subtleties of human interaction, to

find joy in ones self and to elicit it in others, and tostretch in pursuit of purpose and meaning.

DEFINITIONS based onA Whole New Mind: Movingfrom the Information Age to the Conceptual Age, 2006,Daniel Pink.





More Important Now? But how exactly do you go about nurturing

your right-brain skills?

One way to nurture your right-brain is by doing

something you love to do or at least like to do because you will bring something intangible to it,something out of your right brain, which cannot beeasily repeated, automated, or outsourced.

As Pink puts it: The sort of abilities that matter

most now it turns out are also the sorts of thingsthat people do out of intrinsic motivation.

The World Is Flat, 2007 edition, Thomas L. Friedman.





More Important Now? We and especially you (because you are likely to live

longer than me) are living in a time ofrapidlyincreasing competition for resources. (We discuss this

later.) For now, consider the following:

People in the Third World aspire to First World livingstandards. If the people of China alone achieved aFirst World living standard while everyone elsesliving standard remained constant, that would double

our human impact on the world (Chapter 12). Collapse: How Societies Choose To Fail Or Succeed, 2005,

Jared Diamond. (p495).





More Important Now? Even if the human populations of the Third

World did not exist, it would be impossiblefor the First World alone to maintain its

present course, because it is not in a steadystate but is depleting its own resources aswell as those imported from the Third World.At present, it is untenable politically for FirstWorld political leaders to propose to their

own citizens that they lower their livingstandards . . .

Collapse: How Societies Choose To Fail Or Succeed,2005, Jared Diamond. (p496).





More Important Now? By 2010 2bn people and close to 80mn cos

will be trading on the Internet all the time,in real time!

In India and China, which doubtless willbe the biggest economies by 2030, therewill be over two billion people connectedto the Internet. Today worldwide there area little under 400m [1,733m, 2009]. India

and China will have five times the Interneteconomic output in their countries that wehave today worldwide from those 400million. Thomas Power, Chief Knowledge Officer, The

Ecademy.com, www. Ecademy.com, August 2000.Why is Marketing Even More Important Now?


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More Important Now? . . . increasing ease of global market entry

means new suppliers hunting yourcustomers. And new suppliers are going to

keep coming and coming . . . your customersare going to be under siege.

In tomorrows world only extremeperformers by todays standards willsurvive. For these extreme performers

immersing their whole operation in thebrand will be their differentiator.Will Murray, Brand Storm, A Tale of Passion,

Betrayal, and Revenge, 2000. (px)



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More Important Now? What industries should you avoid?

The long-term sick (US airlines, US carcompanies)

Industries immediately affected by credit andeconomic crises (home builders, mortgage lenders,monoline insurers)

Industries soon affected by credit and economiccrises (retailing, restaurants, manufacturing and

food processing). Industries that produce high-priced consumer

durable goods and luxury goods such as cars andjewellery.



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More Important Now? A non-definitive list of recession-proof industries:

Medical Services / Healthcare / Pharmaceuticals

Necessities: food / grocery stores / cosmetics

Education

Entertainment

Home & vehicle repair & maintenance / improvement

Debt collection

Tax preparation / simplification

Career / Job search / Life coaching

Energy Security / Alarm services companies

Weapons industry

Vices



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More Important Now? Unhealthy Investments Are Best!

By Andrew M. Gordon

What trumps a stalled economy? Demographics. Andwhat are the two biggest demographic trends today?

Globally, it's the rapid growth of a middle class in countrieslike India, China, and Brazil [and Russia; the so-calledBRIC countries, CS]. They want what we already have: anice car and house, modern appliances, and good educationand health care for their children.

Domestically, it's back to the future. Boomers [like me,CS] still rule. And they're getting old. Hospitals, long-term-

care facilities, vaccines, and medicines of all kinds will seegreater demand.

What these two trends have in common is health care.Globally and domestically, it's set to grow even if theeconomy isn't."



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More Important Now? A few last points: In a study of single and married

women from countries across the world, femalesconsistently rated ambition and industriousness asimportant or indispensable. This was not true formen.

The pattern was clear. Men sought attractiveness andoffered resources. Women sought resources and offeredattractiveness.

Buss cites several studies that independently demonstrate

that high-earning women in the U.S.A. are even moredemanding in their demand for status in men. Femalemillionaires want male billionaires.



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More Important Now? So . . . you MUST learn how to market (brand)

yourself and your company much betterthan thecompetition if you are not going to suffer lower livingstandards, in the near future.

Competition is increasing fast, resources are not!

Former Fed chairman Alan Greenspan predicts thatthe Fed will have to raise interest rates to double-digit levels in coming years to thwart inflation. [Toomuch demand vs. too little supply.]

The flow of people into the workforce in developingcountries such as China, which has seen a movement ofworkers from farms into factories, will slow, leading tostronger wage pressures and prices, he says. Theimpact will be global.



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More Important Now? UPDATE: The next phase of the worlds

economic downturn is taking shape: aglobal jobs crisis.

. . . the severity, breadth and likely length of therecession, together with changes in the structure oflabour markets in both rich and emergingeconomies, suggest the world is about to undergoits biggest increase in unemployment for

decades.

The Economist, 390, 8622, March 14th, 2009, p64.



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More Important Now? UPDATE 2: developed world [governments have]

to reduce national deficits without choking off afragile recovery; trim the welfare state and raisetaxes while still funding the things that lead tolong-term growth; [and] enact brutally painfulmeasures.

Sometime over the next decade or so, the worldwill probably suffer from another series ofcrushing fiscal crises with significanteconomic pain and maximum politicalturmoil.

DAVID BROOKS, The New York Times, 13th May 2010.http://www.nytimes.com/2010/05/14/opinion/14brooks.html



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More Important Now? UPDATE 3:With the exception of wartime, the

public finances in the majority of advancedindustrial countries are in a worse state todaythan at any time since the industrial revolution,Willem Buiter, Citigroups top economist, wrote ina recent report.

Restoring fiscal balance will be a drag on growth

for years to come. NELSON D. SCHWARTZ and ERIC DASH, Fears Intensify That Euro

Crisis Could Snowball, The New York Times, 16th May 2010.http://www.nytimes.com/2010/05/17/business/global/17fear.html



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More Important Now? Demographic Change

Populations are declining.

Czech couples have, on average, 1.33 children,

nowhere near the 2.1 required to naturally sustainthe population.

e.g., population (000s), Eurostat:

2008, 2035, 2060

Czech Republic:

10,346, 10,288 (-0.6%), 9,514 (-8.0%)

Slovak Republic:

5,399, 5,231 (-3.1%), 4,547 (-15.8%)



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Why is Marketing EvenMore Important Now?

Demographic Change

The population will continue to age.

By 2050, every 3rdCzech will, according to theBerlin Institute for Population andDevelopment, be over 65years of age.

Ageing populations worry all Europeangovernments concerned about how to pay for

pensions.



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Demographic Change

The old age dependency ratio the population65 years and older divided by the working age

population is projected to be more than 60%in Bulgaria, the Czech Republic (3x; now20%), Latvia, Lithuania, Poland, Romania,Slovenia and Slovakia (also 3x).

In other words . . . there will be less than 2persons of working age (i.e. taxpayers) forevery person aged 65 or more in 2060, instead of5 (CR, SK).



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Change is coming . . . Pressure fromdemography, climate change and shifts ineconomic power builds up quietly for a

long timeand then triggers abruptshifts.


Are you ready for these abrupt

shifts?Are your skills?

Your brand?



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Any Questions,Please?

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