DonE.SchultzPh.D.Dallas,TXAViewoftheInteractiveMarketplaceattheBeginningOftheThirdMillenium-AStoryinFivePartsPart1TraditionalMarketingandMarketingCommunicationAreinTrouble-WhatAreYouDoingtoHelp?Challenges:MarketingbeingpushedfurtherandfurtherdowninmanagementlevelsofthefirmToomuchmarketingconsidered“soft,squishy,notrelevant”Marketingexpenseincreasing-fewmeasuresofreturnsToomuchattentiontomassmarket/massmediainworldofone-to-oneAwards,“creativity”,self-adulationMostofAll,theImpactandInfluenceofElectronicCommunicationandCommerce-InteractivityChangingtheMarketingandCommunicationFocusFromtacticalactivitiestostrategicmanagerialdecisionsDrivingshareholdervalueMeasurabilityand“outcomes”,notjust“outputs”ManagementAlternativestoIncreaseShareholderValueInnovationinproductsorservicesEnhancementsinsupplychainmanagementCustomerrelationshipmanagement-expandmarketingcapabilityHowCanMarketingandCommunicationImpactCorporateResults?IncreaseoracceleratecashflowsStabilizeorreducevolatilityofcashflowsIncreaseshareholdervaluebybuildingbrandequityMostPowerfulTools,BrandsandCommunication!BothAreWoefullyUnderdevelopedinManyOrganizationsPrimary21stCenturyMission:MarketingandCommunicationtoDirect,DriveandFulfillCorporateStrategyQuestionsorComments?Part2Understandingthe21stCenturyMarketplaceTheChallengeIsTransitionWhereWeAreTransitionWhereWeNeedToBe19801970196019902000MarketplaceDevelopmentRe-emergenceofcompetitionGlobalizationRiseofQualityPriceCompetitionCost-CuttingRe-engineeringLogistics/DigitalizationTransitionofInformationTechnologyInteractiveMarketplaceProductConsumerDistributionThreeTypesofOrganizationsHaveDevelopedHistoricalCurrentInteractiveProduct-DrivenOrganizationsFocuson4PsProductPricePlace(Distribution)PromotionProduct-DrivenFirmsRawMaterialsTechnologyFacilitiesMoneyDistributionLocationDistributionAggregationNeeds/WantsPurchasingPowerConsumerMediaChannelMarketerInformationDistribution-DrivenFirmsFocuson:LocationLogisticsChannelsUbiquityDistribution-DrivenFirmsDistributionConcentrationLocationsTechnologyConsumerMediaMktr.Mktr.Mktr.Channel(Logistics)InformationConsumer-DrivenFirmsFocusonConsumersBrandsRelationshipsShareholdervalueConsumer-DrivenFirmsNeeds/WantsChoicePurchasingPowerTechnologyConsumerChannelMktr.Mktr.Mktr.ChannelInformationMediaMediaMediaUntiltheEarly1990s,EveryOrganizationHadtobeEitherProductorDistributionDriven19801970196019902000MarketplaceDevelopmentRe-emergenceofcompetitionGlobalizationRiseofQualityPriceCompetitionCost-CuttingRe-engineeringLogistics/DigitalizationTransitionofInformationTechnologyInteractiveMarketplaceLackofResourcesPreventedUsfromKnowingMuchAboutConsumers,CustomersorProspectsInformationTechnologyChangedThat!ConsumerMediaChannelMarketerInformationProductMarketersConsumerInformationChannelMktr.Mktr.Mktr.DistributionMarketersMediaConsumerChannelMktr.InformationMktr.Mktr.ChannelMediaMediaConsumerMarketersMediaConsumerMediaChannelMarketerInformationProductMarketersConsumerInformationChannelMktr.Mktr.Mktr.DistributionMarketersMediaConsumerChannelMktr.InformationMktr.Mktr.ChannelMediaMediaConsumerMarketersMediaBut,InteractivityHasCreatedaShiftofMarketplacePowerMostOrganizationsTodayAreStrugglingwithHowto:BecomeconsumerfocusedMarketgloballyStructuretheorganizationtofitmarketplaceIntegratealltheactivitiesandresourcesWhattoDo?QuestionsorComments?Part3:TheTransitionofInformationTechnologyDrivestheNeedForBrands,CommunicationAndConsumerRelationshipsInthe21stCentury,theBrandAndCommunicationWillBeTheFirm’sOnlySustainableCompetitiveAdvantagesNoproductadvantageNopriceadvantageNoplace/distributionadvantageNopromotionadvantageTheShiftofInformationTechnologyForcestheOrganizationtoMovefromThe4Pstothe4RsConsumerMediaChannelMarketerInformationProductMarketersConsumerInformationChannelMktr.Mktr.Mktr.DistributionMarketersMediaConsumerChannelMktr.InformationMktr.Mktr.ChannelMediaMediaConsumerMarketersMediaTheNew4RsofMarketingResponsivenessRelevanceReceptivityRelationshipsAllofWhichAreBoundUpinBrandsandBrandingMarketerConsumerBRANDBrandsAreRelationshipsTheReasontheBrandBecomesMoreImportant:InteractivityIsaDifferentMarketingModelFrom“mass”to“interpersonal”From“marketeradvantage”to“brandcompatibility”From“short-term”to“long-term”From“transactions”to“relationshipsFrom“persuasiveness”to“sharedvalues”BrandsCreateReciprocityWithConsumers,NotMarketerAdvantage!ANewBrand-ConsumerModelIsRequiredNotjustthetraditionalvalueoftheconsumertothebrand,I.e.,financialvaluetobeextractedInstead,valueofthebrandtothecustomerorconsumer-fillsneeds,wants,desires,etc.inadditiontotraditionalvalueANewWaytoThinkAboutRelationshipsStartingPoint:Twoentitiesintherelationship;twopointsofviewtoconsider--inthiscaseconsumersandbrandsStrongConsumer-BrandrelationshipsrequiresomemutuallevelofinterestThis“mutualinterest”isvalue--beginthinkingaboutrelationshipsasamutualvalueexchangeNewConsumerBrandRelationshipModelValueoftheBrandtotheConsumer(ConsumerPOV)ValueofConsumertotheBrand(BrandPOV)HIGHLOWHIGHLOWCurrent&