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Nowtheriseoftwospeedworld
Welcome to "the new normal" a two-speed world in which two types of economies are emerging: 1.On the one hand, rapidly developing countries such as China, India and Brazil are characterized by high growth but low average household income. With GDP ranging from 8% to 12% and some 2.6 billion people, these markets are hard to ignore. 2.By contrast, the low growth countries -- most of the U.S. and Western Europe, for instance -- have a slower rate of economic growth but higher household incomes. With GDP growth of only 1% to 4%, these economies are expanding more slowly but their populations have higher salaries -and more to spend.
ource: Knowledge@Wharton
The Strategic TrajectoryGrowth for a The Strategic Trajectory for a Economy Growth Country
Low cost, average quality domestic products. Low cost, average quality domestic products exported. Low cost, good quality products exported. High-end products made for other companies. Branded products (regional). Branded products (global). Dominant brands (global).
The Marketing Mix Product Life Cycle Brand Image Market Segmentation The Marketing Concept The Marketing Audit
The Four Ps Marketing Myopia Lifestyle Marketing The Broadened Concept of Marketing
Targeting Positioning Strategic Marketing Service Marketing Social Marketing Societal Marketing Macro-marketing
Marketing Warfare Global Marketing Local Marketing Mega-marketing Direct Marketing Customer Relationship Marketing Internal Marketing
Five shifts
Driving business Impact Galvanizing your network Pervasive innovation Inspiring marketing excellence Relentless customer focus
Types of Innovation
Product and service incremental innovation Marketing innovation
Types of Innovation
Source: http://2.bp.blogspot.com/_qD9Y8Ncd3I4/Sb6hKKOJkJI/AAAAAAAACDo/fHZHCQbvRe4/s400/BornToInnovate2009.jpg
Thinking
1950s 1960s
1970s 1980s
1990s 2000s
2010s 2020s
Y N A P M O C
Mind
Deliver SATISFACTION
Heart
Realize ASPIRATION
Spirit
Practise COMPASSION
N O S I M
) y h W (
ProfitAbility
N O S I V ) t a h W (
ReturnAbility
SustainAbility
BeBETTER
S E U L A V ) w o H (
DIFFERENTIATE
Makea DIFFERENCE
Where is your company now? Where do you want it to be? Why? What would steps would you take?
Brand
IKEA Virgin Walt Disney Southwest Airlines The Body Shop Microsoft Apple Amazon.com
Companies Americans Love Amazon, Apple, Best Buy, BMW, CarMax, Caterpillar, Commerce Bank, Container Store, Costco, eBay, Google, Harley-Davidson, Honda, IDEO, IKEA, JetBlue Johnson & Johnson, Jordan's Furniture, L L Bean, New Balance, Patagonia, Progressive Insurance, REI, Southwest, Starbucks, Timberland, Toyota, Trader Joe's, UPS, Wegmans, Whole Foods. These firms of endearment were highly profitable. They outperformed the market by a 9-to-1 ratio over a ten-year period. More fulfilled employees, happy and loyal customers, innovative and profitable suppliers, environmentally healthy communities.
See Philip Kotler and Nancy Lee, Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause, Wiley 2005.
What is the Relationship What is the Relationship between Business and and Society? between Business Society?
Old philosophy: What is good for business is good for society! The simple act of profit maximization is good enough. New philosophy: What is good for society is good for business. (GE) Every company should figure out not only how to improve its output but also its outcomes. A food company should improve nutrition; an energy company should improve energy; a bank should improve sound savings.
Michael Porter and Michael Kramer, The Big Idea: Creating Shared Value, Harvard Business Review, January/February 2011.
Recession
Sustainability
Global poverty
To Win at Marketing,
1. See crisis as opportunity. 2. Go to where the growth is. 3. Engage marketing to drive your future. 4. Intensify your online and social media activity. 5. Develop the social responsibility side of your business.
Your thoughts and actions will flow into the rest of the world.