The Death of Marketing as We Know it... by Dr. Hesham Dinana

Dr. Hesham Dinana

The Death ofMarketing

Our VUCA World

1. WoM… Social Social All the Way2. Marketing to the BoP3. The Forgotten “P”4. The Pyramids Shift - Demographics5. Getting Grey6. It is all about the Life Style7. Going Green

WoMSocial Socialall the way

User Generated Content (UGC) took on momentum in 2011 – and will continue moving forward

Content that comes direct from the potential or existing customer is likely to grow in Perceived Value (PV)

Key Test:How successfully will companies be ininspiring and facilitating user-generated

content?

from Word of Mouth

to World of Mouth

Customer

OutboundMarketing

PRTV & Radio

EmailBanners

Company

Inbound MarketingSocial MediaPaid Search

LinksOrganic Search

Outbound MarketingInbound Marketing

• Organic / Findability-bases• Listening• People $$• Pull• User-Generated• Blog posts, podcasts, LinkedIn• & Facebook groups, YouTube• Social Connections• Building Communities• Buying Cycle

• Interrupt-driven• Talking• Programm $$• Push• Business-Generated• Press releases, seminars,• Videos, collateral• Business Connections• Building Websites• Sales Cycle

BoP

80 % of the global populationlive on less than $10 a day.

Marketers focus on the top 20% of richest customers and ignore the rest.

Over 5 Billion people yet to bereached!

OUR SLUM WORLD!!

Continent UrbanPopu. %

SlumPopu. %

Latin America 76 32

North Africa 52 28Sub-SaharaAfrica

35 72

West Asia 66 26South Asia 30 59East Asia 39 36

1. Well informed2. Anxious to urbanize3. Seeing is believing4. Role of opinion

leaders5. Color, music,

demos.

RURALCONSUMERS

The Forgotten“P”

in the mixPLACE (Distribution)

6 Cs

Cost

Capital

Coverage

Control

Character

Continuity

The Pyramids Shift

CHINA

KOREA

EGYPT 1990 to 2020

37% of the U.S. adult population areSeniors … rising to 45% by 2015.

28% of all seniors are Internet enabled.They spend more time online than teenagers.

$7 billion spent online

70% of all disposable income controlled bySeniors … $1.6 trillion in spending power

$19 trillion cumulative householdvalue owned by Seniors

40% of all new cars and over

80% of the luxury new cars.

25% of all toys.

80% of leisure travel.

74% of all prescriptions

• The seniors market is a goldmine.• Marketing to seniors produces the

best return per marketing dollar.

save/invest more; spend more on luxury products and services; shop during morning hours; prefer “one-stop” shopping; consider shopping to be a social event; are very convenience-oriented; patronize reputable/traditional outlets; seek personal attention and special services

such as valet parking and gift wrapping; choose based on quality and brand name; are less price conscious and deal prone; use credit as often; are as likely to show non-significant responses

to sweepstakes and telemarketing; and complain less when they are not satisfied with

something they have bought.

In comparison to younger people, peoplein the mature market do this:

It is all about….

Cocooning Impulse to get inside when the outside gets scary

Down-aging Tendency to feel younger than one’s age

Egonomics Treated differently from others

Fantasy Adventure Meets people needs to offset their daily routine

99 Lives Juggle many roles and responsibilities

S.O.S. Make society more socially responsible for the 3Es: Environment, Education, Ethics

Small Indulgences Stressed out consumers need occasional emotional fixes

Staying Alive People’s drive to live longer and better lives.

Faith Popcorn – Life Style Trends

Going Green

“Green business is not a new idea.It is an enduring concept that hasbeen evolving for years, a naturaloffshoot of an expandingenvironmental consciousness”

Phill

ipsE

covi

sion

prog

ram

€479 Millioninvested in GreenProducts R&D

4000 new GreenProducts introduced

39% of Sales comefrom Green Products

50% of Sales in 2011from Green Products

€2 Billioninvested in GreenInnovations R&D

2011

2015 500 MillionLives touched by Philipsin Green Innovations

GEEc

omag

inat

ion

Thank You