Marketing 3.0

Thriving with Marketing 3.0

HSM
Sao Paulo
November 10, 2010

MARKETING’S LOSS OF EFFECTIVENESS
MARKETING will be less effective in the next few years DISTRIBUTORS

DISTRIBUTORS will demand more TRADE
PROMOTION. This will leave less money for marketing research, advertising and consumer promotion for brand building and ultimately reduce brand equity.
Investors will then downgrade the stock.
This will leave the company with fewer resources to prop up demand. This is a VICIOUS

CIRCLE

Marketing budgets will be lower TRADITIONAL
MEDIA

Traditional media such as TV 30‐second spots, newspapers, etc., are growing LESS
EFFECTIVE

Companies will want marketers to do more with less COMPETITION

PUBLIC

Categories are so crowded with competitors that heavy price cutting will be UNAVOIDABLE

The public, in its wish to spend less, will be less inclined to pay higher prices for top brands where the quality differences are minimal. There is a strong shift to store brands and sub‐ brands. This means that top brands are overvalued and there may be a brand bubble. SOCIAL MEDIA
NETWORKS

Social media networks will play an increasingly influential role in shaping brand evaluations STRATEGIC vs TACTICAL MARKETING
Most marketing departments are engaged in brand‐maintenance instead of brand‐ building. Company marketers spend only 15‐30% of their time doing true marketing activities.
The rest of the time is spent on forecasting volume, securing approvals on label artwork, checking manufacturing schedules, and doing routine analysis.
Strategic marketing is missing in many marketing departments. Strategic marketing requires taking a 3‐5 year view of the business.

Downstream
Marketing

Upstream
Marketing

Markets TODAY’s Product

Create TOMORROW’s Product

MUST MARKETING BE RE‐INVENTED?
MARKETERS are prisoners of an OLD