The end of traditional marketing bt.20120606 slide_share1

« The Quaternary Marketing » The end of traditional marketing !

Bruno TEBOUL

Paris, 29th may 2012

The author: Bruno Teboul

Corporate Digital Marketing Director

(The european leader in ICT)

Master of Epistemology

(1993 - University of Paris 12)

Post Graduate Diploma in Cognitive Neurosciences

(1994 - Ecole Polytechnique)

Executive MBA

(2003 - HEC/UCLA)

PhD student in Marketing & Management Science

(2012 University Paris-Dauphine)

Bruno Teboul

The end of traditional marketing

Bruno Teboul

Bruno Teboul


Marketing success in a turbulent environment

requires an approach that is different to that

recommended by traditional strategic marketing

theory, which is insufficient to guide marketers in

markets in varying states of change and turbulence.

This criticism of the traditional approach to

marketing strategy is based on the fact that

sequential strategic marketing planning does not

suit a changing environment because it is too slow

and unresponsive for a fast changing marketplace.

Furthermore, it cannot keep up with customers'

requirements nor with aggressive competitors.

In addition, traditional market research and

traditional marketing mix models are too simplistic

in order to understand complex marketing

situations, as such models assume linear

relationships between mix variables and the

resultant outcomes ! Bruno Teboul


Since the simplistic approaches recommended by

traditional theories can be dangerous, marketers

should consider the overall environmental position

when designing their strategies and adopt non-

traditional marketing methodologies.

In current complex and turbulent environments, speed

in recognizing opportunities and developing new

products, as well as reducing the time to market, is

essential !

Traditional marketing is an inadequate response to the

marketing opportunities emerging in a modern

economy and is inappropriate for dominate economical

scientific and technical revolutions: Digital & NBIC !

Bruno Teboul


This is similar to the economic theory that is at the

heart of Philip Kotler’s Cognitive Marketing. But

Kotler utilizes this concept of Cognitive Marketing in

the wrong sense: he believes that consumers are

cognitive, thus rational and Bayesian.

It's not a marketing inspired by the discoveries of

cognitive science, but one that considers the

consumer as a rational agent, capable of reasoning,

a cognitive consumer, an understanding and

knowing consumer.

The contribution of psychology has awarded more

and more attention to the assumptions of an agent

who is not perfectly capable of emitting sound

judgments.

Bruno Teboul


Marketers have to be able to anticipate, cope with, and

adapt to changes in the external environment.

I believe, like an ever-increasing number of authors,

that the new sciences, specifically the chaos and

complexity theories, can provide a better

understanding of marketing theory.

For example, Wollin and Perry (2004) maintain that:

“Complexity theory in the form of complex adaptive

systems has implications for marketing managers as a

holistic, self-consistent framework for understanding

profound forces within a market and provides some

guides for action when operating within such a

system.”

Bruno Teboul

Bruno Teboul

The end of the traditional marketing

The limits of marketing:

(1) Difficult to Measure

(2) Difficult to understand

customer behaviour

(3) Fragmented audience

(4) Difficult to predict campaign

results

(5)The right product, at the right

price, for the right target, at the

right time, via the right media…

(6) Expensive

(7) Churn

The myths of marketing:

(1) The rational consumer,

(2) Consumer is a bayesian

agent,

(3) Homo Oeconomicus

(4) The mix-marketing

paradigm (n P’s),

(5) The objectivity of the

customer responses,

(6) Behaviour customer

segmentation,

(7) CRM and BI.

Bruno Teboul

of the

Marketing

Idols…


Bruno Teboul

The model "problem/solution" invented in the

1960s in the USA, aimed to educate consumers

on the basis of a new product. In a consumer

society where technology evolves every single

day, consumers need to be prepared for such

advancements. However, they don’t seem to

understand how to use it or how to keep up.

The idea is, based on an analysis of consumers

(search for insight) to develop a logic of

persuasion starring a problem, a dissatisfaction

with their experience of consumers in the use

of the product category. Procter & Gamble

Model: procterian marketing was born...


Bruno Teboul


Bruno Teboul

It formulates the law of effect: so that the

connection between a situation and a behavior is

reinforced (that is to say to increase the probability

of such behavior in this situation), it is necessary

that such behavior in such situations will produce a

satisfaction for the organization.

The innovation of the brand advertised bringing

them a solution. Hence the name model "problem /

solution" inspired by experimental psychology and

Behaviourism.

Thorndike (1874 - 1949) first formulated the S > R

(stimulus> response) and the law to strengthen this

connection by studying the reward in rats.

Thorndike in 1898 published the results of his early

research in Animal Intelligence.

Indeed, the concept of behavioral type "stimulus>

response" has been scientifically refuted by the rise of

neuroscience and cognitive paradigm.

Cognitivism takes the foot against behaviorism by

looking at what exists between stimulus and behavior,

the mental functioning of the individual ("black box").

Stimulti >>>>>>>>>>>>>>> Response (Kotler, Procter).

Stimuli >>>> >>>>> Response (Neuroscience,

heuristics ...).

Behaviorists doubted the possibility of a scientific

investigation of what they called the "black box".

Cognitivists from the 50s will try to exceed the project

seeking to identify the structures and processes

responsible for the hypothetical behavior.


Bruno Teboul

Bruno Teboul


Why the Mix-Marketing Paradigm is obsolete ?

Philip Kotler still considers the Mix as one of the

elements of the Marketing strategy, yet this approach

has developed gradually over the years from the

“academic” perspective (Kotler 1976) to a more

“practical” one (Kotler 1984).

In his more recent books the author becomes more

critical by underlining one of the main limitations of the

Mix namely the internal orientation arguing that “the

four P’s represent the sellers’ view of the marketing

tools available for influencing buyers” (Kotler 2003). Bruno Teboul



Bruno Teboul

Since the 1960s, there has been an inflation in the number

of P constituting the model of the Marketing Mix classical:

indeed, since Kotler we went from 4P's to 10P's and it still

does not address the inherent problem of this obsolete

model. It is not the number of members or parts of the

model that make the relevance and validity.

It is the model definition and its underlying rules that make

it a paradigm or not. Outside, in the case of Paradigm

Marketing Mix, it is his logic that is lacking today: because

it is impossible to build a reliable marketing plan following

the simplistic approach of the Marketing Mix!



Bruno Teboul

What Marketing Director can claim to have found the

grail using this formula: “the right product at the

right price, right place, right time, right promotion,

via the right medium” !

The Marketing Mix is rather dangerous because it

blinds the Marketing Director, its hierarchy, and

ignores the deep emotions of customers and their

decision making!

The Marketing Mix inflicts a double penalty: if you

distill a poison that you would spend for a cure, that

poison can be prescribed by a charlatan who would

like to be a doctor!

The Marketing Mix that ignores all the non-rational

consumers likes to believe that it is the basic

structure of marketing: but it is the precipice, the

ultimate end, the medieval castle that collapses !


Obsolete traditional CRM approach:

Bruno Teboul

Data

eCRM

Customer

Accounts

Store Data

Web sites Social Networks

Data Processing

Data Storage

Data Access

Reporting, Analytics,

Visualisation & Statisitics Data

Management

ZooKeeper*

New CRM Big Data approach…


Bruno Teboul


Data enables us to understand customers and to manage

contact and content strategy. Data is a core component of

integrated marketing and, via an integrated approach, we can

speak with a single voice across channels and lines of

business.

However, to succeed in a meaningful way at that level of

customer centricity, we have to manage all that data in a way

that holistically fuels customer engagement and experience.

That effort requires a whole ecosystem of people, processes,

and technology.

Even the most sophisticated and modern businesses today

are surprisingly ill equipped to manage even the most basic

digital marketing standards and activities, let alone jettison

forward into the new world of Big Data techniques.

To a SmartData CRM approach…

Bruno Teboul

From the Quaternary Economy to the

« Quaternary Marketing »…

Bruno Teboul



Michèle Debonneuil

Bruno Teboul



Quaternary Economy essentially incorporates an economic sector combining the secondary and the tertiary sectors whose products are neither goods nor services, but "new services incorporating property, the temporary provision of goods, persons, or combinations of goods and people.“ Besides these products, the quaternary sector includes information, technology, and communication (ICT) , the training associated with them, and the actions of the State to support its development.

Bruno Teboul

Quaternary Economy and NBIC…

Nanotechnology, Biology, Information and Cognition

(NBIC)

M.C. Roco and W.S. Bainbridge (2002)

“We stand at the threshold of a new renaissance in

science and technology, based on a comprehensive

understanding of the structure and behavior of matter

from the nanoscale up to the most complex system

yet discovered, the human brain.

Unification of science based on unity in nature and its

holistic investigation will lead to technological

convergence and a more efficient societal structure

for reaching human goals. In the early decades of the

twenty-first century, concentrated effort can bring

together nanotechnology, biotechnology, information

technology, and new technologies based in cognitive

science”.

Bruno Teboul

The end of traditional marketing bt.20120606 slide_share1

Education

traditional

marketing

marketing

marketing

bruno teboul

quaternary

black box

marketing