Philip Kotler, the legend, in an interview with Anthony Gell

I'd like to welcome Philip Kotler the world's authority on marketing very happy to be here Philip in this economic climate a lot of CEOs are saying this is the time to really cut costs in the marketing department whereas media sellers obviously saying this is a big opportunity to grab market share and spend more so in your mind which one is it you know let me dramatize first of all the way you put the question in terms of some people want to see it as an era of cost-cutting and some want to see it as an error of opportunity it turns out that two airlines see it differently Ryanair and the statement made by the airline said boy I love receptions this is a golden opportunity there's gonna be weak competitors and we can really take over market share gains and all that it looks like the other airline easyJet its spokesman said well we're gonna be conservative we're going to go easy on that and be careful so who's right well we don't know so take some time to tell and in fact everything is circumstantial look I put it this way when a period like the financial meltdown occurs when turbulence occurs in the economy and there were and that will occur more frequently by the way I'm not talking about the business cycle I'm talking about turbulence and chaos when that occurs you got to see it in two lights you have to see it this opportunity for some and you got to see it as as a danger and and vulnerability for others now I like the firm that seized it both ways I don't think the president of a company should stay well we got to just cut costs across the board that's the worst thing by the way across the board they'll be killing some of their future that way but if they say let's now look at the vulnerabilities and protect ourselves then let's look at the opportunities then there they're beginning to see how to handle it the battle to identify which are the opportunities that are making money versus losing money well you know we're not Anthony we're not gonna have the CEO just sit down and and Intuit these things we're gonna he's going to draw together some people in the company from the different functions for example marketing is is that function that should really supply the opportunity side and also the arguments for not cutting the budget I mean cutting cutting your budget that creates your sales it's a funny thing to do unless the budget was being wasted in some ways certainly it cut a budget when there's fat but when when it's working for you if you know how to account for your marketing resources and by the way that's the biggest issue today how do we show accountability for the money we're spending on campaigns but if you can show accountability maybe your budget won't be cut every marketing head is facing that issue how to tell the CEO and the CFO that the budget is helping us rather than hurting it's a bit silly to cut the cost that's generating your fear that for an upset oh I that's just killing a profit isn't it the link has to be proven between expenditure and sales and profit results it's easy to prove by the way in direct mail because you know the cost of sending out your mail and in offers and then you know how much response you got and it's our life straight forward it's very hard to know with 30-second commercials unless you setup experimental design and some companies are playing with that companies like P&G and Unilever but otherwise it's more an article of art and faith let's talk about accountability and how to measure the marketing spend I mean as easy as you said and direct marketing direct response you can measure it but in non direct response direct marketing arenas how do you identify our while your marketing spend whether it's intermediaries involved for example well the the key idea is this suppose we can put commercials into neighborhoods and that we have some comparable neighborhoods I mean even both buying as much as each other and then we put a more budget into one neighborhood and less in another and then we do recall scores and recognition scores to see if they remember seeing it but we also see what they spent you have to also have links to these stores we're like Tesco or whatever to to find out what happened and then you might say look we spent twice as much in this neighborhood and that neighborhood but they were the same one at the beginning and look at the sales difference we have to attribute it largely unless there's other causes to expenditure differences that's hard to do but that's the theory of trying to get some measure of advertising expenditures a lot of people are talking about how you should operate in a recession like this but this isn't just a normal recession is that this is something slightly different this whole financial meltdown has been a shock to all of us I hope the US isn't being blamed entirely for it though it was the result of very loose credit standards and practice by the UK as well and in some other places and that's why it's spread so fast I'm trying to get at the bottom of what companies should do during such a dire situation and I'm preparing a book which is now finished actually called chaotix that's the single word but the subtitle is the business of managing and marketing in an age of in the age of turbulence and we think we have a lot of things to say it's just too bad we can't get the book out tomorrow you know how books are and publishers it's got to go through the whole routine and it will probably appear in May and by the way if the financial meltdown is over and we don't sell the book that's fine with us that's good for the world however when it does come out it's going to talk about the need for companies to do a couple of things one is to have early warning systems that will catch things happening that they see but didn't pay attention to you know how things are the future is already here in some places if you could only scope it out the second thing is we advocate the preparation of scenarios good scenario normal scenario what if the worst happens and preparing the strategy for each scenario now you have to still make a choice and that depends on what how much risk you want to take if you want to take just a little risk you probably will go after the promising opportunity the loaded scenario and the strategy that goes with it if you are risk averse you probably will play safe so we can't make this we can't give the advice on what scenario makes sense because it's uncertainty the whole point is it's uncertain what's going to happen but at least you've got contingency responses depending on how the world and the economy moves so we think there's we're not talking about how you normally operate in in an in a recession which comes about every so many years we're talking about even worse things than that look at what happens in a Mumbai situation and things you can't predict and how do you handle your budgets and your people and keep going forward and what changes the after making your strategies so what's all quite disaster planning ready only disaster planning is a good term absolutely famine did a pretty good job illnesses that marketing there's overall marketing for his campaign so as marketers anything that we can learn from his overwhelming success well you know it's it's so interesting our former President Bush came out of the Harvard Business School and was the MBA first type of MBA president and he and if that's what Harvard teaches there are some questions we can raise here Barack Obama comes along and he is the perfect MBA does it beautifully I mean the preparation and the discipline and the choice of bright people bright he's not afraid of bright people he's terribly bright and everyone around him is too we were actually going to see whether bright people make a difference in government but it turns out that his victory was based on so many things among which is that he mastered two things high-touch and high-tech high-touch means there's an emotional component there he's he's selling hope he's got a beautiful wife very accomplished two beautiful girls and we just love to see them in the White House high tech is he absolutely is using the Internet so successfully you know they're building a database and this is what we ask every company to do with its customers to learn a lot about each customer so that you can send messages to the right people that relevant messages at the right time and he's done that in fact every time one of his people called someone about how they're gonna vote if the person said they we're gonna vote Republican they were thanked and they didn't do much more if they said they're gonna vote for Obama they thanked the person he said how intense are is your interest in Obama and some people would say I love the man and they said could you be a volunteer and remember what they did is they had a different statuses for different members of the public and and they build such a volunteer group and kept them close by email and in fact when the campaign was over he won the election emails went out from his office to everyone who played such a vital role in electing him interesting can you just elaborate on the I hope aspects of that for us well it is a learning from that campaign and for businesses that basically people are going to keep going on and it's going to make a difference whether they go on with passion and purpose or they go on with dread and fear fear and dread so basically the CEO of a company and his people is top management team have to be positive not unrealistic but positive believable I mean if it's unbelievable in the state of the word it is really better and so on that's not the way to put it so I think that the climate you establish makes a big difference those are the four p's is them is that any other letters do we need to add with the advent of new me you and everything else would they pretty safe the four peas product price place and promotion seems to cover everything for example the internet we talk about well are you gonna blog are you gonna do a podcast are you going to are you going to do a webinar and many other things all those are promotional channels the media channels and and the PIA promotion handles both messaging and media so now even packaging people will say Oh where's packaging because in the perfume we wrote the packages the whole thing I mean the what's in the bottle is not as much cost as the bottle itself and I say well packaging is part of the product in fact services they say we're services that begins with an S well services the product that's sort of the offering the offering is a mix of product and services and the way they're presented so we think that they all collapse into the four piece now there are some people who have talked about the four A's the four C's and it doesn't have to be for it could be twelve in fact originally the marketing mix was a word first used by Neal Borden at Harvard and he had 12 elements to the marketing mix well you can see that it's not an easy theory when you have 12 it's easier to remind companies when they are looking at a marketing plan or a brand plan so what's the product what's the price what's the place is gonna be available and what's the promotion we're gonna use it works I have noticed no interest in protecting it if something better comes along I'm very happy to YouTube it's actually quite good that we can still rely on something in this day and age those are the four p's that could so with the economy as it is and with price comparative shopping day on is price going to become the king of the peas yeah I think during hard times price is is one that you have to handle especially well and I would say this to companies many of them don't want to initiate a price cut right because they know that if they initiated the competitors they're gonna match them with a price cut so maybe for a little period no one's cutting the price for example Starbucks it's still three or four dollars a cup of coffee on the other hand it may be smarter to create a lower price version for people who want to save a little money and yet patronize that organization for example McDonald's even before this is this down draft I started to put into its menu a smaller priced items I know in the United States they're sort of like a taco something it's about half the price of a hamburger it's quite filling and that's smart that's smart because now the criticism of things like that as well what you've done is you cannibalize the higher margin products I mean you've offered something lower and now now how do you get back to when times get better to getting people to buy the more expensive things but in general I think there are two ways to manage the price retaliation or pressure one is to as I said at a lower item in your offering and then the other is to not change your price but add value mr. customer we know that it's hard nowadays to pay for everything at the rates the they were selling for but we're gonna absorb the shipping expense on the refrigerator usually that would be added to your bill we're going to have someone come in service the machine at our expense so instead of lowering your price you raise your cost a little bit but it's better margin wise to do it that way we call that adding value instead of lowering price that's a great strategy isn't it because we interviewed Andy cost let the CEO of InterContinental Hotels not long ago and he was saying that he's got sort of seven brands in all segments of the market so if during the economic downturn people decide to go for a less prestigious brand they can do but he's got that covered and like that strategy I've always advocated it namely I say you should have three versions of your product good better and best those would be called price points and some people who are cynical say well it's really poor fair and good but that's a matter of words but the point is that you don't know at what stage you'll be and then the business cycle and to have multiple levels of offerings makes a lot of sense now the firm's that may not get into that are what we call the highly niched firms who dominate a very specialized part of the marketplace we sometimes call them hidden champions they are very profitable they're usually a business to business company selling a component that goes into a braking system it's like the the guys who sell to sell the shoelaces for the truths you know there aren't too many competing for that maybe and so hidden champions they're more secure during down address because they are very close to their customers and they do the best they can for their customers and and they remain leaders and profitable leaders at that you say that a lot of companies are often guilty of 1'p marketing oh yes what do you mean by that yeah you know it turns out that there are four types of CEOs when they are asked what do you think of marketing and how are you using it and remember most CEOs are not marketer trained people they are either engineers lawyers accountants or finance people none of them have gone to a marketing course so when you say marketing to them they say yeah I need that I don't like it but I need someone to do those brochures and ads okay that's a one P marketer promotion promotion is is what marketing is about and it's characterized by having the people in your marketing department doing mostly what we call marcom which is shorthand for marketing communications that they're not driving the growth of the firm they're not come with creative new products they are selling the products through a lot of markup the second type of seal is what I call a 4p CEO who understands that he wants brand plans marketing plans that should cover the product the price of place and promotion so it's not just some people doing he wants a plan okay there's a third type of CEO which is even more advanced who says you know you don't can't do a plan until you do STP segmentation targeting and positioning in other words I can't make a I'm not coca-cola making a plan to sell coke to everyone in the world I'm a company that makes something more specialized there are I have to figure out what is the market in fact what are the parts of the market which groups would respond best to what I can offer those will be my targets and then what is my message for those buyers as to why they should buy for me rather than from a competitor so that's called segmentation targeting positioning and that precedes really building a marketing plan for some segments now the fourth type of CEO of which are very few they're scarce but it's the any type and I'm using Emmy for this expression marketing is everything AG Lafley the CEO of Procter & Gamble says marketing is everything now he does not mean that the marketing department is running the company no way it's a very well-balanced company for manufacturing and purchasing and marketing and finance and so on what he means is that the customer is everything we are a customer driven company how to win by making the best quality being the most innovative and giving the most value for the money so that is an any type of CEO in the understanding of marketing and so for the CEOs that haven't come out through the marketing department and the marketing function what hope do they have and what should they do hire the best strategic minded marketer you can as a CEO hire Steve Jobs if you can and he's not available a higher Richard Branson if you can but he's not available but the point is that you'll get educated as a CEO by having a superb marketing a force under you and learning from that person also please visit customers visit your big customers especially if you're a b2b firm and you have some very big accounts that are crucial to your continuation as a company do you know that Jack Welch who we admire greatly as the past president of General Electric when asked the question how many customers the how much time of your precious time do you spend with customers he says fifty percent of the time now look he's got a lot of other things to do he's got a look at financial reports and do public relations with the press and so on no 50% spending time with the head of maybe coca-cola the head of American Airlines the head of and so on and so forth so a CEO will learn marketing that way - even if never learned it in any other way so again it comes back to CEOs - spending more time with customers if CEOs are only taking up with the financial side of the business they're not going to see customers are going to see numbers they're not going to see changes in the marketplace and be ready to re-strategize so the evolution of marketing marketing should have gone from product or service and it's now much more focused on on the customer and customer engagement you know let me put it this way it all started with product and product driven organizations I love the product and then we moved to service we realized that it's not enough to sell something we have to back it up with good service and a lot of new literature came out on services marketing not only services marketing for Howard physical products but also services marketing for intangible for a firm selling intangible services like the hotel in the airline and so on which disappear after they're over but we went from services marketing more recently to what we call experience shield marketing or experience marketing where we said it's not enough for a bank to have a set of services namely aligned and maybe maybe coffee and trade with some apples what's the experience of being in the bank do you feel it's like you're in a Greek temple and you must behave and and and stand like a good citizen in line is this a like a living room what what is the context in the atmospherics of the place that you you bring your customers how they feel good is there any trust and liking and other emotions coming in that relationship you're trying to for them with the customer so we call that really a design problem you design the feeling of the airplane inside you design the hotel too so we might even call that marketing aesthetics broadly in fact there's a lot of talk about we overuse two senses of the five senses we overuse a visual and an audio how about the sense of touch the sense of of kinetic kinetic second estes and so on and so forth that is let's touch a customer and more than one way or two ways Phillip I understand that one point a CEO came up to you with a book and you refused to turn it was it wasn't up to date is that because you were gonna upsell and sell more books yes let me put it this way I was seminar in the CEO of a company came up to me and said could you sign your book for me I said of course I always sign the book I looked at the book and I said wait that's the first one I wrote that's in 1967 it's called marketing management and I don't think I can sign it and he said but I use it you use it and did you find the chapter on the internet very useful there was no chapter on the internet then and I said what about the concepts of a customer lifetime value and equity customer equity are you making a lot of use of those and measuring those things I mean like it's your brand equity growing or flat or declining he says well I don't think those terms were in the book I then he said are you trying to get me to buy a new copy and I said yes but not because I need your money it's because the 13th edition and I put a new edition out every three years has so much more that you need and in this whole changed marketing market space and place that you you've really got to do now after saying that to him I signed a book I use it as a kind of a tease in a lesson a lot of people think of it just focusing on the brand it's like you know focusing on something that's sort of fluffy and intangible but that's just based on ignorance isn't it I mean there's a real financial valuable asset there in your brand equity well you know we do know that the brand counts for something because when you look at the book value of a company you find that the price paid for this stock is much more than the book value you've got to imagine that the difference is made up by the fact you have a strong brand that you have some whether we call intellectual property that you have great channel relationships that are worth something and so on and so forth so therefore we do know that brand is one of those components has a value if you sell your business your pricing of the of the business you want to sell has to take into account of how much you're turning over as a strong brand it's there are even firms that are in the business of brand valuation and they will tell you like the company Interbrand will tell you that if you want to buy Coca Cola's company basically it's going to be 60 billion dollars whatever okay now brand equity is not brand valuation Brand X brand valuation is putting a pound or a dollar figure on it brand equity is an aggregate of a couple of measures that go along with growing stronger in a market place for example if what we're nough sin creases about your product if preference increases of interest increases if there's more momentum that your product has like the iPhone now has momentum you you track those things in your average in a weighted fashion whether you're basically the number you had last time is now larger so you brand equity has gone up flat or or that there's been a decline in your brand equity it's it's it's something that I is if I was a CEO would one my brand people to report on if what happened to our brand equity it was the too much valuable things and businesses are looking at talent and your brand but then the brand is the one thing with your reputation that brings in the talents in the first place every company should be concerned about its reputation and and thats related to brand in fact we even talked about branding a company or managing the corporate brand but if you take as reputation and reputation counts you you you want to know what the factors are that build your reputation as a company the most important thing is the quality and innovativeness of your products and services you can't compensate for poor products by saying well we're giving a lot of money to charity or you could even you sometimes say but we're making money yeah but you're making money now but if it's not satisfying the customers they're going to start going on the internet and telling how bad you are and you won't make money later so basically the first thing in reputation is is really your products and services the second thing is your your vision as a company and and the quality of your management and how they may stand out and articulate the purpose of the company the third thing would be your financial performance over time over long term profitability suggests a company that has been really serving the market well and the fourth thing might be other things like the workplace environment I mean are your employees satisfied are you recruiting the best ones are they motivated the fifth might be the whole emotional way the company the customers and the stakeholders feel about the company and the six might be its corporate social responsibility initiatives and so on no those are factors that have to be managed whether you're talking about managing our reputation or our brand but those are the handles some people have said that the brand manager doesn't actually own this sort of the you know the creation of the brand values anymore is they because of user-generated content and customer engagement that the empowerment has really moved away and there's been a massive shift to the consumer in terms of the creation of brand values what's your thoughts there oh it's such a different world today I'll tell you customer empowerment is one of the biggest forces to reckon with now and and to value in the old days if I wanted to buy a Volvo there would only be two sources of information Volvo advertising and then my friends who might have a Volvo or I might even stop a guy who owns a Vova on the street and say how do you like it look at how limited that is today I go through Volvo's website I learned a lot about the car then I go to JD powers which interviews people for every car that was purchased how did you like it after you bought it and six months after you bought it how do you still like it so I will know how satisfying the car is that way then I go to edwards.com which gives me even the price I ought to pay for the car not the list price but what people are paying for it in comments about the car so I as a consumer are so empowered that I'm almost dictating the terms of purchase I mean I would just go to someone else and I'm doing this and I may end up not buying the Volvo I might have learned during that process that there are other cars that are more interesting to me so how do companies handle this now let's take the other side how do you handle a an angry customer a company today can be destroyed by one angry customer there's a guy who's mad at one of the airlines without my mentioning it and he put out a site with the name of that airline sort of turned around a little bit but everyone knows the airline and he invites all the people who have had bad experiences to put their message on that site and I'll tell you it's kind of you can't stop that so look at the power customers have for the good or for putting pressure on you but some people still talk about a customer satisfaction but that's got to be really old-school now just not living in the times right it's moved on from merely satisfaction it's not the gold standard the gold standard is delighting the customer and by the way there's a study about those relatively few companies that had hired so dear to their customer that when asked what if that company disappeared they would say that that would be terrible in fact the question is put this way are there any companies you love and would dearly missed if they went out of existence and in the study and the book in which this was reported was called firms of endearment twenty five companies came up companies like Apple Google and southwestern airlines and eBay and so on which people would miss in fact they're they're woven into our lives our daily lives and and I mentioned this because that's that's the gold standard for performance that you really are very meaningful to the group you want to serve and they would miss you dearly as soon as you say that because I I just can't imagine my life without Google so how do you actually get sort of customers to engage with you to such an extent that it literally love your brand that's that's the magic question I mean some people have called that cult brands you know like Harley Davidson oh god those people who have her Davidson motorcycles there that's that's called creating a brand community a brand community is look if I find out that you have a Harley and I have a Harley and I don't know you from Adam we're gonna talk for the next few hours if I find out that you use Crest toothpaste and I used to the crest is base that's the end of that I have no interest in you for that reason you see so it happens with Harley's it happens with Nikes it happens with Apple computer what's behind it it's it's a number of practices as well as the brand itself and in the book the firms of endearment they list eight common characteristics shared by the most loved companies including the fact that they have a better set of employees they they are much more open to employees suggestions you could reach the president with an idea and by the way one of the most interesting things is these are companies that spend less on marketing you might have said oh the reason they are called brand as they spend so much on marketing no no the fact is that it's the customers who do the marketing and you don't have to spend so much the customers are talking about you all the time and and and so why should you spend much money on marketing well because I've never received a direct mail piece from Google big believer that marketing is constantly evolving so what do you think those were two or three of the macro trends that are emerging now within the marketing community well one of them is accountability and all the work being done to figure out what you're getting for your campaign expenditures we now have about three or four books written called marketing metrics in one way or another telling us we need measurements the CEO and the CFO demand those measures and that's that's a big trend the second is the search for customer insights it's a different word than doing marketing research marketing research gives you a lot of them graphics and things like that and a hundred page report but sometimes you end up saying well what did we learn well marketing a customer insight is is almost a a a new very new way to look at them the market maybe it's a new segmentation in the dog food market the old segmentation was demographic food for big dogs small dogs or the food for young dogs old dogs now it's what's the attitude toward the dog that the owner has and if the owner sees the dog is an infant you feed you claim that your food product is the way you want to treat your infant and be careful with your infant and so on and so forth so customer insights now they happen occasionally but there are processes of creativity that will provoke a good marketing staff into coming up with a new idea for it for the product we need big ideas in marketing and any firm that is not investing in innovative work and creative work is going to miss the boat because what most of these firms they are doing what we call incremental innovation if they're doing that at all so they're putting out another soup another brand of cereal yeah it's it's even more interesting when instead of just putting out another box of cereal you make a new thing with cereal like the cereal health bar or you make the yogurt which has the plastic top and there's cereal in it so you could then put the cereal in the yogurt make it more tasty so this idea we call I call it a lateral marketing rather than a vertical marketing vertical marketing is another box of cereal the lateral marketing is thinking out of the box thinking across thinking what else can we do with the capacities that we have for making cereal or for putting out toys or something like that for the marketing industry is inundated with sort of near buzz terms if I think even buzz marketing is a new term in the marketing the marketing sector but can you tell me any new hot thing that's coming up you think well actually have some stickability guerilla marketing has a little movement to it and it turns out that and by the way it's guerrilla not it's the street fighter not the ape when we use it when we spell the word it's especially interesting for small businesses small businesses they've you know most of the world's businesses are small and we marketers are criticized for always saying this is marketing and talking about coca-cola and they don't have the resources the budgets for expensive marketing research so what about the small players and our argument normally is two things one is there is such thing as low cost research and low cost advertising on the internet for example and we do more teaching of how to do these things with less lower budgets than normal and then secondly we say you got to be smarter you you should be you're gonna be more agile you're gonna be closer to the market I mean the company's decisions are being made on the 30th floor by you by president CFO and maybe a marketing guy around there but really you're a small businessman and you can be close to the customer and move faster okay so guerilla marketing I think is a good movement buzz marketing is very interesting because if you can get good word of mouth it replaces the need to spend a lot of money and some there's two ways to do buzz marketing sometimes you hire someone who's a very that's sexy and everyone wants to see them in action Tiger Woods you know and you get him to endorse your shoes or something like that you're so basically that that works Richard Branson is supreme at that by the way even when he started the wedding business wedding gown business I think he put on a wedding gown and marched down as if he was going to be married so that works you know the other kind of buzz marketing is is becoming professionalized and that is there there there's the company for example called grapevine which actually has teams of people of different ages like maybe fifty thousand college students maybe seventy thousand senior citizens and you bring to that fella your product and said like this buzzed about and he'll stay if he likes the product sometimes he says I you'd be wasting your money there's nothing to buzz about it but if he likes the product you'll say I'd give me fifty thousand units because I'm gonna give them away to fifty thousand college students and to tell them to just report on how they buzzed about it they don't have to if it's not natural for them if it did come up report that did they come up what do people say and you'll get a report from me and and hopefully there will be a lot of word-of-mouth going around so customer insights now they happen occasionally but there are processes of creativity that will provoke a good marketing staff into coming up with a new idea for for the product we need big ideas and marketing and any firm that is not investing in innovative work and creative work is gonna miss the boat because most of these firms they're doing what we call incremental innovation if they're doing that at all so they're putting out another soup another brand of cereal yeah it's it's even more interesting when instead of just putting out another box of cereal you make a new thing with cereal like the cereal health bar or you make the yogurt which has a plastic top and there's cereal in it so you could then put the cereal in the yogurt make it more tasty so this idea we call I call it a lateral marketing rather than vertical market and vertical marketing is another box of cereal lateral marketing is thinking out of the box thinking across thinking what else can we do with these capacities that we have for making cereal or for putting out toys or something like that but the world's best companies don't just have innovation in the innovation department or even just a new marketing department they got all employees some creative ideas and innovation the smartest companies get everyone to be thinking innovatively they have like a 3m culture and so on but here's what some companies have done the company that does washing machines and dryers the Whirlpool Company which is number one in the world for large appliances ended up choosing 400 people and training them in ideation and they're coming out with so many new idea it's not just a refrigerator whose store has a computer on it or whose door has an espresso machine on it and so on but they even got into the garage business where they are selling a service to fix up garages so they're pleasant places to park your car you have a little workbench and you can make do some woodworking so that's one way by giving that creativity responsibility to some people in the organization not full-time they're doing other things but they're ideational II trained the second company is the Shell Oil which I like very much because they have every so often a big meeting with the middle and upper management listening to people working for shell saying I would like my ten minutes to give you my idea mister management and they take their powerpoints and they show look at we can save money or make money by doing this and so the management listens to about 2200 ideas that day sits down afterwards and chooses a few of those ideas and gives $100,000 to one guy because that's an exciting idea in fact a great idea sounded he got 600,000 so they have a pool of money and and they end up and Cl says that of the five best initiatives in that year four came from ideas from employees then a third company is Samsung Samsung their intends to have an actual lab where many people are working on many projects they call it the value innovation and there so there's one group working on the cell phone and they're working full-time not on the existing cell phone but to replace it to do better and another groups working on television so companies have to find a way to allow creativity to emerge I always say you have a choice you innovate or you stagnate now innovations have failed but stagflation is a sure I mean it's stagnating is a future failure too so you've got to really put some money into creativity today I'm hearing more and more the job title new job title course TM oh well in your mind what is a CMO what does a really good steer mode do was they add value well you know there are studies now about CMOS chief marketing officers one book came out just recently from David Hocker David being the guy who started our strong interest in branding but he's been working now on trying to find out from CMOS what they think that we have about 2,000 CMOS by the way it's not a fancy name for a VP of Marketing usually if you're a multi business firm you have a bunch of V piece of marketing in different businesses it's sort of putting at headquarters at the same level as a CFO the CIO chief information officer the CTO chief technology officer a guy who represents the voice of the customer and gets the company to be customer driven so they have a lot of responsibilities even in in their job description you know help us get more customer insights help us become more customer driven look at our product line and make sure we don't have some Deadwood that we should clean out help us build brands strong brands help us account for the amount of money we've been spending on marketing and finally give us some of those new technical tools and mathematics that will make marketing much more scientific it's a big plate but it turns out that most of the the smart see and Oh probably should tackle two of those things when first tired and make a dent something which will show up early enough that what he's paid or she's paid is yielding a return because you can't do a little bit a little of six different things and it adds up no to things that are big for the multinational companies that are getting into new emerging markets like India and China etc do the same rules apply in terms of getting into those markets and they do in the West or they're all different rules and different paradigms well we're talking about sort of international marketing in part and how you go into another country you don't go with peers with the identical products the identical packaging the identical prices you have to be actually being glocal now gluco is a kind of coin word for being a global and local for example I was in recently in the country and McDonald's one of the big things there is soup I never went to McDonald's for soup they've got about three soups because the country loves soups and so they added that to the menu so going local is very important now if you're going to go into China or India there's two or three things in mind either you're going because there's a market there they might buy your modified product or you're going there to make your product and to bring it back here because it's cheaper to make there so we got a distinguish between why you're in China or India by the way China is everyone calls it the factory of the world and they're calling India the office of the world and now when I was in Brazil recently they're calling Brazil the farm of the world Brazil being one of the BRIC countries B Ric has great agricultural resources and minerals and so on and so forth so in any case if you're going to go to China for example to sell basically there's a huge market of 1 billion people and if you have something good it would be wonderful if you could actually get distribution and and penetrate that country and and know something about I would say some some segmentation because most products you have aren't gonna be for everyone and and and to get the data and I always said that if you're gonna do marketing research in a developing country you can't just ask anyone to do it for you you've got to ask who is being used by McDonald's McDonald's to do the research who its coca-cola using because obviously they've they're not going to tolerate poor marketing research and you have to do it when you enter a country and find out who the best firms are using

Channel: Anthony Gell

Views: 19,471

Rating: 4.8817735 out of 5

Keywords: leadership speaker, anthony gell, the book of leadership, Marketing, leadership, management, Leadership Skills, How To Lead, philip kotler, how to market, mba, marketing guru, talent management, leadership development, success

Id: Nxe-HRnaCpw

Length: 49min 31sec (2971 seconds)

Published: Mon Jun 09 2014