We’ve written a lot about the rapidly changing world of marketing — with the advances in social media, technology, big data, etc. So, sometimes, we need to pause and reflect on things that are the constants in marketing.
In 1966, McKinsey published an article by John D. Louth on “The Changing Face of Marketing”: “This article from the McKinsey Quarterly archive analyzes six major changes that promised to transform future marketing efforts. These forces have largely proved to be as influential as predicted and continue to shape today’s challenges.”
The six major changes — which are really marketing constants — are as relevant today as they were nearly 50 years ago:
- The dominance of the customer — “It is nearly a truism that the needs and wants of the consumer are the critical issues today in creating new products and services, and developing the accompanying plans to merchandise them at a profit.”
- The spread of marketing research — “The second trend is the increased use of marketing research — in terms of both quantity and scope. To an important degree, of course, this trend is a response to the first. If knowledge about future customers is essential, and if the quality of the marketing output is materially affected by the caliber of the informational input, then marketing research is bound to increase in use and contribution as the interest in more scientific marketing grows.”
- The rise of the computer — “The third major trend marketing must consider is the emergence of electronic data-processing equipment as a major tool of scientific marketing not only for reporting data but also, more importantly, for planning and control by management.”
- Expanded use of test marketing — “A fourth important trend, in my opinion, will be toward more controlled experimentation to narrow the odds of an error in making marketing changes. Two major influences emphasize the need for further expansion of test marketing. The first is the rising cost of marketing changes: the costs, for example, of introducing new products and packaging, of developing new advertising and promotional programs, and of retraining salespeople. The second influence is the mounting investment in product research and development. About half of all corporate research-and-development activity in the United States today is concerned with the creation of new commercial products.”
- Metamorphosis of field selling — “The fifth trend I foresee is a shift in the nature of the field-selling job toward a more integrated, profit-oriented marketing effort. Key-account selling is becoming an increasingly crucial feature of the field-sales job—a trend with important implications. In many companies, a key-account selling program may entail special analysis of present and potential customers, and the establishment of related control reports to measure profit results with particular accounts.”
- Global market planning — “An ever-broadening application of the marketing concept to worldwide markets is the last of the six broad trends that I believe will change the face of marketing in the next few years. Over the past decade, the marketing concept has become widely accepted in the United States—perhaps, in some situations, too enthusiastically accepted and too indiscriminately applied. Nevertheless, I believe the concept of a completely integrated marketing effort is valid and will be increasingly adopted. In many companies operating worldwide, it will stimulate the development of global market planning.”
Click the image to read the full classic article.
Many companies have had a major impact on business practices and our lives. And a lot of these companies have endured for a century or more.
Recently, Fortune published a list of 27 companies that have changed the world over the last century-plus.
Sorry, Apple fans — but Apple ranks only 16th on the list!
Click the image to see the full list. :-)
Happy Fourth of July. Looking for something to do this morning?
Think you know product management? Try out this 10-item quiz.
Let us know how you do. (No cheating: The answers are on slide two.)
Although Apple’s iconic logo has existed for only a few decades, did you know that some company logos have been around for hundreds of years?
As Thomas C. Frohlich and Alexander Kent report for 24/7 Wall St.:
“Even before global marketing campaigns, television commercials, and social media, a company’s logo has been important. Over time, as businesses and consumers have changed, most major companies have also changed their logos dramatically. Still, some logos have had incredible staying power and have lasted for decades or even hundreds of years.”
“The world’s oldest logos have all retained some core visual element, although several have been noticeably altered. Stella Artois, for example, is recognized by several details of its icon. The horn and the star resting above the label are the features continually represented in the brand’s history.”
Click the Stella Artois logo to see the list and description of the 10 oldest logos.
Yesterday, we looked at the growing U.S. TV audience for soccer and the opportunities this provides to sponsors and advertisers.
Today, let us look at the financial dimensions of sports sponsorships for the 2014 World Cup in Brazil. Although the investments are huge, it is not clear that they are always the best expenditures of marketing dollars.
According to McKinsey’s Jeff Jacobs, Pallav Jain, and Kushan Surana:
“The Fédération Internationale de Football Association (FIFA) stands to make $1.4 billion from sponsorship deals with 20 major companies during the World Cup in Brazil. That’s 10 percent more sponsorship revenue than from the last World Cup, in South Africa. Although significant, that’s still far below U.S. corporate spending on sports sponsorships, which grew to an estimated $20 billion in 2013 — equal to one-third of total U.S. television advertising and one-half of digital advertising.”
“Considering the huge amounts involved, you would imagine sponsors of athletes and events have clear answers when asked about their return on investment (ROI). You would be wrong. Industry research reveals that about one-third to one-half of U.S. companies don’t have a system in place to measure sponsorship ROI comprehensively. And that’s costly in another way: in our experience, executives who implement a comprehensive approach to gauge the impact of their sponsorships can increase returns by as much as 30 percent.”
Click the image to read more – including ways to assess the performance of sponsorship dollars.