| There is a new economic order. Marketing was a | | | | revenues in the new economic order. It's as simple as |
| business function relevant to the old economic order. | | | | that.This means that every business function that |
| Even though that economic order is gone forever, | | | | can contribute toward the generation of the right |
| most companies are still think and work according to | | | | "IMAGINED EXPECTATION", i.e., Brand, and toward |
| it. And this is costing them waste in their effort to | | | | its consolidation in customers' mental and emotional |
| grow their business. It is high time they adapted their | | | | fields, must be regarded as a revenue building |
| business to the new economic order.How can this | | | | opportunity, and must be integrated as such. Which |
| be? Marketing has been around all along. What can | | | | means it must be managed for integration. All your |
| have changed that makes the Marketing function so | | | | business' customer interfacing sub-functions must be |
| out of date? A sea change. No less. A transformation | | | | managed to work in synch toward generating and |
| of our marketplace. In recent decades, the old | | | | consolidating the strongest possible Brand - toward |
| economic order has given way to the new economic | | | | generating the most possible revenue for the |
| order. Four factors characterize this transition:1. | | | | investment.Of course, the traditional Marketing |
| Intensifying competition has transferred power from | | | | sub-functions of Brand Graphics, Advertising, |
| the producer to the customer. The more freedom | | | | Promotions, Market Research, Distribution, Pricing, |
| and choice customers have, the more power they | | | | Sales, Merchandising and Packaging continue to play |
| have, at the expense of you, the producer.2. | | | | an important role in the new economic order. But the |
| Intensifying accountability has transferred | | | | boundary drawn by the Marketing function between |
| management orientation from process-driven to | | | | these sub-functions and other business functions that |
| purpose-driven. As more has to be accomplished with | | | | contribute toward the generation and consolidation of |
| each dollar, activities are increasingly determined by | | | | the Brand with customers - is a deadly barrier. |
| their ability to deliver desired results.3. Accelerating | | | | Sub-functions like Product Development, Product |
| innovation has redefined business from its technology | | | | Research, Product Experience, Billing, Collections, |
| base to its relationship with its customers. As new | | | | Customer Care and Credit Control, all play critical |
| technologies keep emerging, companies have to keep | | | | roles, not only toward the generation of right Brand, |
| shifting to those technologies that can better serve | | | | but equally importantly, its sustainability over time. |
| existing customers, whose loyalty is based less on | | | | These too are legitimate Brand-building functions, and |
| technology provided by the company, than it is on | | | | as such, can contribute substantially to the purchase |
| the perceived benefit they are already getting from | | | | decision that brings in the revenue for your |
| the business.4. The perpetual proliferation of higher | | | | business.As long as your business doesn't demolish |
| value has promoted both the ascendance of service | | | | existing boundaries between the Marketing function |
| business at the expense of manufacturing | | | | and all the other Brand-building sub-functions, it is |
| businesses, and the increasing relative internal | | | | setting itself up for inconsistent, if not competing |
| importance of the service interface of manufactured | | | | customer experiences from these functions. This |
| goods.These four emergent factors, greater | | | | means that some revenue investments will be |
| customer power, greater purpose orientation by | | | | working against other revenue investments, which is |
| management, greater customer-relationship based | | | | the most wasteful thing a business can do!In short, |
| identification for the business, and the ascendance of | | | | Marketing is an outdated function based on that old |
| service business, have together rendered the | | | | producer-driven mentality. Rise to the new economic |
| discipline of Marketing limited and out of date, and | | | | order. Recognize that Brand is the crux of your |
| replaced it with the Brand.How can this be? Isn't | | | | business, and reorganize your company to take |
| Brand a mere sub function of Marketing? Isn't Brand | | | | advantage of the synergies othe new economic |
| run by the Marketing department? Not any longer. | | | | order. In order to ensure that there is no waste in |
| Keeping Brand within Marketing in the new economic | | | | your investment for growth, you must integrate all |
| order is the surest way to dilute your investments | | | | the Brand-building and brand-consolidation |
| for growth. And as we have seen, tightening | | | | sub-functions under a single management function, |
| accountability can no longer tolerate any such waste. | | | | one that is broader than the Marketing function, one |
| Not when there are sub-functions of business outside | | | | that includes several sub-functions that were hitherto |
| the Marketing function, that can influence customer | | | | not regarded as Marketing sub-functions. You can call |
| perception of your business, and can thus determine | | | | it what you want. You can call this new function |
| your revenues.In the old economic order, it was the | | | | Customer department, or Brand department, or |
| inherent quality of the product that was the crux of | | | | anything else for that matter. After all, Marketing is |
| the business. It was Marketing's function to position | | | | dead. Long live the Brand!Author Bio:Management, |
| it, promote it, sell it, and bring in the revenue. In the | | | | Marketing & Communications Expert. Originally from |
| new economic order, the crux is no longer the | | | | India. Based in Western Europe from 1968 to 1980. |
| inherent quality of the product. It is subtler quality, | | | | Based in the US since 1980.Career Highlights:Worked |
| and one that lies outside your company. It is the | | | | with leading global communications service providers: |
| quality of the customers' PERCEPTION of the value | | | | Ogilvy & Mather, J. Walter Thompson, Young & |
| they are buying. And there are many things that | | | | Rubicam, Saatchi & Saatchi, counseling leading global |
| influence this perception. As many things as the | | | | organizations: Procter & Gamble, IBM, AT&T, |
| customer can experience, and associate with your | | | | CitiCorp, Pepsico, Toyota, Shell, Johnson & Johnson, |
| brand name.Let's look at this a little closer. As we | | | | United Nations Population Fund, etc.Over twenty five |
| saw earlier, power has shifted from the producer to | | | | years of management experience: CEO - Middle East |
| the customer, and has moved from the factory to | | | | Region, Saatchi & Saatchi Plc. UK; Management |
| the emotional and mental fields of the customer. In | | | | Director, Young & Rubicam GmBH Germany; Account |
| this new economic order, it is no longer the product | | | | Director, Young & Rubicam USA; Brand Director - |
| or service per se, that determines the flow of | | | | Asia Pacific, AT&T Corp. USA. VP Marketing & Sales, |
| incoming revenue for the business. It is now the | | | | Afghan Wireless, Kabul, Afghanistan. Currently: EVP - |
| perception of greatest value in the mental and | | | | Senior Operations Strategist, Stealing Share, NY, NY, |
| emotional field of the customer. Customers buy their | | | | USA. Served the Princeton community locally as: |
| imagined expectation of what the product or service | | | | Director on the Task Force on Ethics; and as a |
| can provide to them. This "IMAGINED | | | | Commissioner for Civil Rights. |
| EXPECTATION" is the crux of your business' | | | | |