Conventional and new approaches to marketing

Question 1

Evolution of marketing thinking:

Answer 1

The classical years (1910 -1950)

• Descriptive work, checklists, emphasis on aggregate market behaviour
• Development of new concepts and issues (e.g., product differentiation, and issues in advertising, pricing and distribution)
• The strategic objective: budgeting and control

The managerial years (1951-69)

• Introduce “marketing-mix-management” as a co- ordinated, integrated function
• Environment was considered as uncontrollable
• Emphasis on long-range planning

The adaptive years (1971-1982)

(**the Strategic Planning School of thought)

• Emphasis on: achieving and sustaining competitive advantage, repositioning, entering and divesting product markets and optimal resource allocation among product markets
• focus on an in-depth understanding of the environment including competition
• focus on competition and ways to gain competitive advantage by “adapting” to changing environment
• misplaced overemphasis on market share as the main strategic objective

The proactive years (1983-today)

The Strategic Thinking

• Critical thinking
• Focus on entrepreneurship inside and outside the organisation
• Focus on the creation of opportunities by being proactive and innovative at every decision-making level
• The main premise is that firms can manage and shape their environments

Question 2

Forces Shaping Marking role:

Answer 2

• CMOs report pressure from CEO to prove the value of marketing
  *

Question 3

The Dispersion of Corporate Marketing’s Traditional Competencies:

Answer 3

Question 4

Challenges faced by marketing:

Answer 4

• Loyalty Decline
• Taste changes
• Individuality
• Health Consciousness
• Transparency
• Globalisation/Deglobalisation
• Tunnel Vision
• Shorter Attention Span
• Digitalisation/E-commerce

Question 5

L’Oreal and Amazon CEOs’ views:

Answer 5

Brand values, not product attributes

“The world has changed: when I started in marketingproduct features were the draw; now it’s the brand’s values”

• Focus. Disruption and breakthrough only come from critical mass. Focusing on fewer, bigger innovations allows you to disrupt the market better than doing good enough jobs on several things.
• Respond to consumer needs. Create something that is real, out there and rooted in true consumer insights.
• Have a compelling, beautiful story. L’Oréal believes that making products with a great degree of care and detail is important.

Michel Brousset CEO of L’Oreal

• Obsess over customers. “If you’re truly obsessed about your customers” Bezos says, “it will cover a lot of your other mistakes.”
• Invent. “You need to listen to customers, they won’t tell you everything. You need to invent on their behalf. Kindle, EC2 would not have been developed if we didnot have an inventive culture.”
• Think Long Term. “Most initiatives we undertake take 5 to 7 years before they pay any dividends for the company.”

Jeff Bezos

Question 6

How to Respond?

Answer 6

• More narrow targeting
• Focus on brand awareness
• Consumer tracking