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Lecture	
  1	
  




       Lecturer:	
  Vasiliy	
  Staros1n,	
  PhD	
  
OLD	
  system	
                                        NEW	
  system	
  
•  Mass	
  produc/on	
                                 •  Product	
  personaliza/on	
  
•  Standardized	
  products	
                          •  Personalized	
  products	
  
•  Long	
  PLC	
                                       •  Short	
  PLC	
  
•  Average	
  customer	
                               •  Individual	
  customer	
  
•  one-­‐2-­‐many	
                                    •  one-­‐2-­‐one	
  
   communica/ons	
                                        communica/ons	
  
•  Long	
  NPD	
  cycle	
                              •  Long-­‐term	
  rela/onships	
  




                                  Vasiliy	
  Staros/n	
                                     2	
  
•  Crowded	
  market	
  

•  Increase	
  in	
  buying	
  power	
  

•  Emerging	
  industries	
  

•  Wide	
  range	
  of	
  brands	
  to	
  choose	
  from	
  	
  

•  A	
  great	
  amount	
  of	
  info	
  about	
  products	
  	
  

                                 Vasiliy	
  Staros/n	
               3	
  
Mass	
  offerings	
  	
  
                               =	
  	
  
                     Averaged	
  product	
  	
  
                              for	
  	
  
                    Averaged	
  customer	
  
                                           	
  
“In	
  terms	
  of	
  rela1ons	
  between	
  company	
  and	
  customer,	
  
 the	
  absolute	
  majority	
  of	
  consumers	
  expect	
  companies	
  
       treat	
  them	
  as	
  an	
  individual	
  not	
  as	
  a	
  segment	
  or	
  
                         target”	
  (Brǿndmo,	
  2004)	
  
                                                  	
  
                                  Vasiliy	
  Staros/n	
                            4	
  
•  Oversegmenta/on	
  (Kotler,	
  2005)	
  
•  Customer	
  variability*	
  
•  Syndrome	
  of	
  sophis/cated	
  customer	
  




*	
  See	
  Maslow	
  
                           Vasiliy	
  Staros/n	
     5	
  
The	
  challenge	
  for	
  the	
  companies	
  is	
  the	
  reten/on	
  
     of	
  customers	
  instead	
  of	
  geQng	
  new	
  clients.	
  
	
  
CLV	
  concept	
  (customer	
  life/me	
  value)	
  




                               Vasiliy	
  Staros/n	
                  6	
  
One-­‐way	
  interrup5on	
  marke5ng	
  is	
  
yesterday’s	
  message	
  
                                                                          (Seth	
  Godin)	
  
• You	
  are	
  watching	
  your	
  favorite	
  TV	
  show	
  
• You	
  are	
  reading	
  an	
  interes1ng	
  ar1cle	
  
• You	
  are	
  listening	
  to	
  the	
  radio	
  




                                         Vasiliy	
  Staros/n	
  (c)	
                           7	
  
1.  Marke5ng	
  simply	
  meant	
  adver5sing	
  
2.  Adver5sing	
  needed	
  to	
  appeal	
  to	
  the	
  masses	
  
3.  Adver5sing	
  relied	
  on	
  interrup5ng	
  people	
  to	
  get	
  
    them	
  to	
  pay	
  aDen5on	
  to	
  message	
  
4.  Adver5sing	
  was	
  one-­‐way:	
  company-­‐to-­‐
    consumer	
  
5.  Adver5sing	
  was	
  exclusively	
  about	
  selling	
  
    products	
  
6.  Adver5sing	
  and	
  PR	
  were	
  separate	
  disciplines	
  
    run	
  by	
  different	
  people	
  with	
  separate	
  goals,	
  
    strategies	
  and	
  measurement	
  criteria	
  
                               Vasiliy	
  Staros/n	
  (c)	
                8	
  
1.    Marke5ng	
  is	
  more	
  than	
  just	
  adver5sing	
  
2.    You	
  are	
  what	
  you	
  publish	
  
3.    People	
  want	
  authen5city,	
  not	
  spin	
  
4.    People	
  want	
  par5cipa5on,	
  not	
  propaganda	
  
5.    PR	
  is	
  not	
  about	
  your	
  boss	
  seeing	
  your	
  
      company	
  on	
  TV!	
  


                               Vasiliy	
  Staros/n	
  (c)	
            9	
  
“The	
  marketer	
  with	
  the	
  greatest	
  scope	
  of	
  
  informa/on	
  about	
  each	
  par/cular	
  customer	
  
  with	
  the	
  most	
  extensive	
  and	
  in/mate	
  
  rela/onship	
  will	
  be	
  the	
  more	
  efficient	
  
  compe/tor”	
  
                   (Peppers,	
  Rogers;	
  One2one	
  future)	
  



                            Vasiliy	
  Staros/n	
              11	
  
Why	
  will	
  you	
  purchase?	
                                 2008	
              2007	
  

Value	
                                                                   80%	
               81%	
  

Required	
                                                                51%	
               56%	
  

Replacement	
                                                             30%	
               30%	
  

Child	
  wanted	
  it	
                                                   21%	
               26%	
  

Trendy/Fashionable	
                                                      18%	
               22%	
  

Influenced	
  by	
  friends	
                                              4%	
                4%	
  

Source:	
  NPD	
  


                                                Vasiliy	
  Staros/n	
                                             12	
  
(adopted	
  from	
  Ke-nger,	
  Hachbarth,	
  1997)	
  
              Defining	
  the	
  audience	
                                  GeQng	
  the	
  info	
  
               and	
  geQng	
  the	
  info	
  

                                                                                Compare	
  
             Assessing	
  opportuni/es	
                                       alterna/ves	
  
                and	
  competences	
  

                                                                              Assess	
  and	
  
                                                                            making	
  a	
  choice	
  
              	
  NPD	
  and	
  posi/oning	
  
SELLER	
  




                                                                                                        BUYER	
  
                                                                                Order	
  and	
  
                                                                                purchase	
  
                 Deal	
  and	
  delivery	
  
                                                                             Acquiring	
  the	
  
                                                                               product	
  
              Support	
  and	
  post-­‐sale	
  
                    service	
                                                Authoriza/on	
  
                                                                             and	
  payment	
  

             Evalua/on	
  and	
  further	
  
                 improvement	
                                              Evalua/on	
  and	
  
                                                                              feedback	
                      13	
  
1.  Shifing	
  from	
  mass	
  communica/on	
  
    towards	
  personalized	
  contacts	
  
2.  Customers	
  become	
  ini/ators	
  
3.  Integrated	
  approach	
  
4.  Ac/ve	
  customer	
  involvement	
  
5.  Massive	
  usage	
  of	
  IT	
  

                                                  14	
  
15	
  
Decoding	
  problems	
  
    Feel	
  the	
  difference	
  
It’s	
  all	
  about	
  percep/ons	
  
19	
  
Shifting to a new marketing approach

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Shifting to a new marketing approach

  • 1. Lecture  1   Lecturer:  Vasiliy  Staros1n,  PhD  
  • 2. OLD  system   NEW  system   •  Mass  produc/on   •  Product  personaliza/on   •  Standardized  products   •  Personalized  products   •  Long  PLC   •  Short  PLC   •  Average  customer   •  Individual  customer   •  one-­‐2-­‐many   •  one-­‐2-­‐one   communica/ons   communica/ons   •  Long  NPD  cycle   •  Long-­‐term  rela/onships   Vasiliy  Staros/n   2  
  • 3. •  Crowded  market   •  Increase  in  buying  power   •  Emerging  industries   •  Wide  range  of  brands  to  choose  from     •  A  great  amount  of  info  about  products     Vasiliy  Staros/n   3  
  • 4. Mass  offerings     =     Averaged  product     for     Averaged  customer     “In  terms  of  rela1ons  between  company  and  customer,   the  absolute  majority  of  consumers  expect  companies   treat  them  as  an  individual  not  as  a  segment  or   target”  (Brǿndmo,  2004)     Vasiliy  Staros/n   4  
  • 5. •  Oversegmenta/on  (Kotler,  2005)   •  Customer  variability*   •  Syndrome  of  sophis/cated  customer   *  See  Maslow   Vasiliy  Staros/n   5  
  • 6. The  challenge  for  the  companies  is  the  reten/on   of  customers  instead  of  geQng  new  clients.     CLV  concept  (customer  life/me  value)   Vasiliy  Staros/n   6  
  • 7. One-­‐way  interrup5on  marke5ng  is   yesterday’s  message   (Seth  Godin)   • You  are  watching  your  favorite  TV  show   • You  are  reading  an  interes1ng  ar1cle   • You  are  listening  to  the  radio   Vasiliy  Staros/n  (c)   7  
  • 8. 1.  Marke5ng  simply  meant  adver5sing   2.  Adver5sing  needed  to  appeal  to  the  masses   3.  Adver5sing  relied  on  interrup5ng  people  to  get   them  to  pay  aDen5on  to  message   4.  Adver5sing  was  one-­‐way:  company-­‐to-­‐ consumer   5.  Adver5sing  was  exclusively  about  selling   products   6.  Adver5sing  and  PR  were  separate  disciplines   run  by  different  people  with  separate  goals,   strategies  and  measurement  criteria   Vasiliy  Staros/n  (c)   8  
  • 9. 1.  Marke5ng  is  more  than  just  adver5sing   2.  You  are  what  you  publish   3.  People  want  authen5city,  not  spin   4.  People  want  par5cipa5on,  not  propaganda   5.  PR  is  not  about  your  boss  seeing  your   company  on  TV!   Vasiliy  Staros/n  (c)   9  
  • 10.
  • 11. “The  marketer  with  the  greatest  scope  of   informa/on  about  each  par/cular  customer   with  the  most  extensive  and  in/mate   rela/onship  will  be  the  more  efficient   compe/tor”   (Peppers,  Rogers;  One2one  future)   Vasiliy  Staros/n   11  
  • 12. Why  will  you  purchase?   2008   2007   Value   80%   81%   Required   51%   56%   Replacement   30%   30%   Child  wanted  it   21%   26%   Trendy/Fashionable   18%   22%   Influenced  by  friends   4%   4%   Source:  NPD   Vasiliy  Staros/n   12  
  • 13. (adopted  from  Ke-nger,  Hachbarth,  1997)   Defining  the  audience   GeQng  the  info   and  geQng  the  info   Compare   Assessing  opportuni/es   alterna/ves   and  competences   Assess  and   making  a  choice    NPD  and  posi/oning   SELLER   BUYER   Order  and   purchase   Deal  and  delivery   Acquiring  the   product   Support  and  post-­‐sale   service   Authoriza/on   and  payment   Evalua/on  and  further   improvement   Evalua/on  and   feedback   13  
  • 14. 1.  Shifing  from  mass  communica/on   towards  personalized  contacts   2.  Customers  become  ini/ators   3.  Integrated  approach   4.  Ac/ve  customer  involvement   5.  Massive  usage  of  IT   14  
  • 15. 15  
  • 16. Decoding  problems   Feel  the  difference   It’s  all  about  percep/ons  
  • 17.
  • 18.
  • 19. 19