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| makes the Marketing function so out of date?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