Articles by Albert Einstein Marketing - General A New Model For Marketing
7%-38%-55% Communications MythBy Robert P.
Top 10 Big Mistakes Of Big BusinessBy Francis T.
Climate Change Is Real! Act Now!By Kathrin G.
Improving The Quality Of Decision MakingBy Niladri R.
What Is A Healthy Company?By Raymond H.
Top 10 Big Mistakes Of Big BusinessBy Francis T.
Best Practice Benchmarking - The Path To ExcellenceBy Robert C C.
What Is A Healthy Company?By Raymond H.
Challenges And Opportunities In The New EconomyBy Alkistis A.
Managing Bad Debt - Importance Of Good Collection SkillsBy GERARD A.
Also Interesting ...
Learn To Coach: How Could We Classify Motivation?By Matt S.
You Too Can Be A Giant KillerBy Roger H.
Who Do You Talk To?By Graham Y.
Creating A World Of New PossibilitiesBy Oshana H.
Coaching In Management - Essential Business Skill Or Temporary Fad?By Allan M.
A New Model For Marketing
The proliferation of brands and channels is forcing companies to restructure their marketing efforts significantly.
Mae West once said, "Too much of a good thing is wonderful." Today's chief marketing officers would hardly agree. McKinsey's marketing and sales practice recently spoke with more than 40 CMOs from a range of companies around the globe. Their biggest concern, they told us, is that an explosion of customer segments, products, media vehicles, and distribution channels has made marketing more complex, more costly, and less effective.
Evidence of the new proliferation lies all around us. Consider the growing fragmentation of customer segments. Modern society is at once more multicultural, because of immigration, and more divided, because income groups have polarized into rich and poor. Both trends create additional and more distinct customer segments. At the same time, intense competition and hunger for growth have pushed, and supply chain innovations have allowed, today's companies to target ever more demanding customers within ever smaller segments. The product and service options available to customers of consumer industries from packaged goods to financial services have therefore doubled or even tripled.
As sub-brands and line extensions multiply, so do the messages and the media required to sell them. Twenty years ago, big companies used one advertising spot on three television networks to reach 80 percent of the US population; now they need up to 20 messaging and media programs to get the same reach. Marketers do benefit from some of the new communications vehicles, but since few of them are scalable as yet, marketing programs have become complex and difficult to measure.
Finally, distribution channels such as the Internet, product resellers, big-box retailers, and third-party telesales providers have become important for companies that sell to consumers and businesses alike. Many telecom providers, for instance, require up to four channels to reach their diverse customer base. The increasing number of channel choices further fragments their sales efforts while escalating the potential for channel conflict.
All of these factors, taken together, have dramatically pushed up the complexity and cost of managing a marketing program just when boards and CEOs have been pushing their chief marketing officers to improve the return on marketing expenditures. No wonder more than half of the CMOs we talked with said that a major restructuring of marketing models will be needed to solve this Rubik's Cube of segments, products, channels, and media in a profitable way.
The new model will force companies to change many of their marketing paradigms. Although customers will still come first, for example, no marketer can meet their every need. It will be necessary to focus on a few of the available customer segments and to serve them with fewer brands, lest an ever growing number raise complexity costs all the way from product development to promotion. In "Making brand portfolios work," Stephen J. Carlotti Jr., Mary Ellen Coe, and Jesko Perrey discuss ways marketers can develop a segment-driven approach to building stronger, more distinctively positioned brands?and increase the return on marketing outlays.
Marketers must also address the overall cost of serving consumers and businesses. "Steering customers to the right channels," by Joseph B. Myers, Andrew D. Pickersgill, and Evan S. Van Metre, argues that proliferating distribution options have given many companies less control over the way they do business with the people who buy their products and services. In the future, these companies will need to reshape when and where they interact with customers.
Rethinking brand portfolios and tackling channel migration are of course just two of the challenges that the proliferation of segments, brands, messages, media, and channels poses for marketers. As our discussions with CMOs around the world continue, we look forward to exploring further aspects of those challenges and to sharing our findings with you here.
This Article is authored / contributed by ▸ Albert Einstein who travels from Ulm, Germany. Albert is available for Professional Training Work both Virtually and In-Person. ▸ Enquire Now.
What's your opinion?
I WOULD LIKE TO JOIN YOU IN OTHER TO BENEFIT THE NEW STRATEGIES INVOLVE IN TODAYS MARKETING AS GAMBIAN
BUBA from Gambia, The
I would like to be the best marketer in the Gambia in the near future.So being with you i beleive would make such a nature as marketing is concern based on new marketing principles or strategies.
BUBA from Gambia, The
54 more Articles by Albert
Beyond Oil: Reappraising The Gulf States15 min. Further reform will be essential if one of the world?s fastest-growing regions is to seize a broader role in the global economy
7 Ways To Stop Selling - And To Start Building Relationships!7 min. Sometimes we can all use a friendly reminder to keep us from backsliding into old ways of thinking about selling that lead us down the wrong path with potential clients.
Enterprise Risk Management - Risk's Rewards21 min. Are you on board with enterprise risk management? You had better be. It's the future of how businesses will be run.
What Procurement Areas Should Be Outsourced4 min. Few companies have the skills to effectively manage procurement across all spending categories. Smart enterprises should examine their procure-ment strategies ...
Better Operational-Risk Management For Banks15 min. Operational risks are costly, but they can be conquered when high-ranking executives join the battle.
Slipping Up6 min. Trying to perfect a flawless presentation can result in disaster...
Living With The Limitations Of Success6 min. Once companies reach a certain size, setting realistic performance aspirations gets a bit trickier.
New Tools For Negotiators15 min. Five easy-to-use tools help negotiators in complex deals arrive at a negotiating position that is not only acceptable to them but also palatable to other ...
The 'Unprofitability' Of Modern Technology13 min. Of all the findings on business strategy yielded by the study of the businesses in the PIMS? database, the following is one of the most controversial: ...
Succession Planning: Often Requested, Rarely Delivered28 min. Surprisingly, many organizations lack a proper succession plan. One reason is that they do not have an effective succession planning process. This author ...
Must Work Be Fun?5 min. Should work be fun? Must it be fun? Today, the answer to these questions is mostly yes. What else should it be? Yet however plausible this answer might ...
Measuring Performance In Services16 min. Services are more difficult to measure and monitor than manufacturing processes are but executives can rein in variance and boost productivity - if they implement rigorous metrics.
A Good Look At Corporate Social Responsibility31 min. There appears to be plenty of room for much greater effort and involvement by companies and organizations around the world. Here a few thoughts and pointers.
We Need Teamwork - But Is It The Only Useful Form Of Work?6 min. Two of today's buzzwords are Team and Teamwork. Those with a particular desire to conform to the spirit of the age portray them as the polar opposite of ...
The CEO's Role In Leading Transformation15 min. The CEO helps a transformation succeed by communicating its significance, modeling the desired changes, building a strong top team, and getting personally involved.
The Parkland Way - Never Thought You Could Learn From A Hospital?18 min. Looking for inspired leadership, passionate employees, unsurpassed productivity, and grateful customers? Forget the dispirited corridors of corporate ...
Growth And Size4 min. "Size is no guarantee of future success." What is strategically important is strength not size. Speed is more important than physical mass and flexibility ...
Corporate Transformation Without A Crisis19 min. The art of leading deep corporate change can be learned. The trick is to help each member of the company discover a new reality...
Foresee The Future8 min. Foresee the future, that's what your customers expect, that's what you need to deliver.
Organic SEO Or Pay-Per-Click Advertising - Which Should You Choose?8 min. Organic search engine optimization has some distinct advantages over pay-per-click advertising. However, there are undoubtedly certain situations and scenarios ...
Strategy Session: What To Look For When Hiring A Professional Speaker4 min. How do you know if the speaker fits? How do you avoid embarrassing mismatches?
Tracking The Growth Of India's Middle Class17 min. Over the next two decades, the country's middle class will grow from about 5 percent of the population to more than 40 percent and create the world's fifth-largest consumer market.
TRIZ As A Lean Thinking Tool11 min. Lean Thinking is a highly evolved method of managing an organization to improve the productivity, efficiency and quality of its products or services. The ...
So This Is What Communication Can Do?13 min. Everything that we do for our clients is based on the idea that improved communications will improve an organisation's performance and contribute to the ...
Strength Inspite Of Size11 min. Growth is necessary, but size is no guarantee of a successful future! Nevertheless, growth is needed. Without growth there is no life. In a certain sense, ...
Intrapreneurship: Leveraging Organisational Talent9 min. The global talent war has seen organisational leaders scratching their heads to understand how they can attract and retain the very best talent that is ...
Finding Facilitators That Fit!3 min. The aim of this guide is to prepare you for discussions with a bureau, and to get you thinking about all the factors that affect your Facilitator choice.
How Executives Grow13 min. Talent can be bought, but the best companies develop their own.
The Top Ten Things Customers Want3 min. Over the last two years of working with hundreds of clients from all walks of life, I have noticed trends of what my clients want and need. This top ten ...
The Hacker's Code Of Ethics!4 min. Recently, I came across a code of ethics for hackers (yes, it really does exist) that I'd like to share with you, because I think it really hits home with ...
Sales Person Or Customer Advocate - Who Do You Need To Be?10 min. To get beyond survival and to grow both profits and margins, the successful companies of the future will be forced to become true customer experts.
Pros & Cons Of Pay For Performance11 min. Somewhere in Corporate America, a human resources manager is tweaking her company's employee-incentive program. Maybe she's dumping last year's customized ...
The Next Generation Of In-House Software Development17 min. How leading-edge companies are streamlining applications development.
Eight Business Technology Trends To Watch19 min. Eight emerging trends are transforming many markets and businesses. Executives should learn to shape the outcome rather than just react to it.
Value Talk: Getting The Most Out Of Your Speaker6 min. Valuable insights on using your speaker to maximise the success of your event
Managing Your Organization By The Evidence17 min. An organization is much more likely to improve its current performance and underlying health by using a combination of complementary practices rather than ...
What Is The Business Of Business?15 min. By building social issues into strategy, big companies can recast the debate about their role in society.
Move Over, Baby Boomers8 min. Gen X-ers want far more collaboration with companies - both as customers and as employees. CIOs are uniquely positioned to help their enterprises meet ...
Management -The Handling Of Complexity9 min. Complexity has been one of the most frequently used words for some years now. People talk about complex systems, complex interrelationships, complex problems ...
Speakers Don't Always Have To Be Famous6 min. Plenty are the professionals who are on the "front lines" of the industry, knowledgeable of the countless changes, and who are willing and able to speak ...
Project Success And Failure20 min. What is success, what is failure, and how can you improve your odds for success?
15 Seconds On The Web: Ten Writing Tips To Improve Sales7 min. In 15 seconds, a visitor to your site determines whether or not they are interested in your product or service. Web usability experts can provide all sorts ...
The War For Talent4 min. US Recruiting, Retaining & Developing Talent Statistics & Best Practises
How Gulf Companies Can Build Global Businesses8 min. Companies based in the GCC states are using their petrodollars to expand into global markets. But in the long run, these companies will have to develop distinctive capabilities and skills.
Defining Customer Touchpoints5 min. Improving the customer-centricity of your organization isn't just good business, it's also good marketing.
Who Knows Whom, And Who Knows What?13 min. Employees' personal connections can be as valuable as their individual knowledge base. Social network analysis, or SNA, helps maximize a company's collective smarts.
Best Practice And Beyond: Knowledge Strategies12 min. Value created by knowledge is often not captured. Five accounts of knowledge strategies.
What IT Leaders Do12 min. Companies that rely on IT governance systems alone will come up short.
Getting Labor Policy To Work In The Gulf16 min. For GCC states, liberalizing the labor market and developing the local workforce are the keys to moving beyond a reliance on foreign workers.
Dwindling Readership: Are Tabloids The Answer?14 min. Newspapers have tried a host of measures to halt the long-term decline in their readership, but they haven't stopped consumers from turning to TV and the ...
Branding, Recruiting And Learning Through Public Speaking And Conference Attendance11 min. Reasons Why You Should Speak at and Attend Professional Seminars
A Guide For The Ceo-Elect13 min. The days, weeks, or months between taking the job and assuming power are precious. Put them to good use.
Back to top