Session with Dr. Philip Kotler. 10th March, 2013

well I am delighted to be back at Great Lakes I remember when it was founded by my great colleague Bala balachandran and what an imagination he had to put into India a unique kind of educational experience and let me say that I prepared a talk I chose to use a talk that I gave in Chicago to people who wanted to know more about the appropriate talk for all of our interest in this subject I could provoke you easily by saying that I am ready to talk about the end of marketing now that's disturbing because you're spending a lot of time studying it and why he should attend so quickly we do know there have been books written one had the title the end of history what he meant by that was it was the end of the Cold War and it's like now we can all be in harmony live in harmony so if I say the end of marketing what I mean is the end of the old marketing it's the old marketing was distribution mass marketing lots of 30-second commercials which would put us to sleep some of the time because if the commercial was about cat food and we didn't have a cat why should we be interested thank you so the new marketing is clearly more about the social media and the transformation of our ability to reach individuals you know the new term is called big data and it's happening everywhere where we get to know more about you hopefully not invading your privacy so much as trying to not bother you unless you're a prospect for something that we think would improve your life so the big hope of Big Data is we we make offers that are relevant to you where there's maybe 50 percent or more probability that you would find it of an interesting offer and of course social media is making the difference but more than that the fact that buyers and customers can talk to each other about products and about brands and about companies means that the companies are in a fishing bowl and things are becoming very transparent and it may reach a good point in the future where no company could be a bad company so you could have companies that are bad in the sense of promising more than they deliver but there was no way to tell anyone but your friend today you can tell the world that they are not performing so companies will have to rise to a higher standard that brings together their Foreman's not just their promise there shouldn't be a gap between your promise and your performance so I want to use this opportunity to go back and raise this question what is the purpose of marketing why do we need it what is its role well the what's the common answer to come an answer it is marketing is there to help us sell more goods and services not that the marketers do that it's done by the salespeople and the commercials online and things like that but there should be a higher purpose to marketing and the higher purpose is to build the middle class now isn't that interesting we believe that the middle class is the foundation of a civilization of a society people with aspiration latest appliances want to be in a good car would like to have a nice apartment or home and much of modern marketing is about selling a dream a dream of the good life it's a dream by the way we have to figure out how to sell to the poor we have neglected the poor five billion people of the seven billion today on the earth are poor and marketing has offered nothing little very little to the lives of the five billion of the seven billion people we hope we can change that and of course when CK Prahalad the late and great CK wrote his book the fortune at the bottom of the pyramid he gave us hope that even for-profit companies can do well by creating products that are more affordable by poor people so that I think should be the mission to spread the mobility and the growth and that the taste of civilization to more people in the world now there's another hidden function of marketing which isn't mentioned enough and it is that the purpose of marketing is to create jobs no spending no jobs so if we cannot convince people that we have things that will make their lives better they then won't buy those things then there will be no one to make those things and we have a real problem so when you hear someone say I don't like marketing I think it's intrusive its interruption interrupting me say look think of a different way every society needs work to do and what comes from people who have wants and needs and it's marketing that is the bridge between the wants and needs and the delivery of satisfaction so that's a little philosophy let me start with some slides and we'll thank you this is a talk that I gave at the Chicago Humanities Society and I'll start and that was largely about the Mart effect that marketing has gone through some stages 1.0 marketing 2.0 marketing 3.0 marketing and someone recently told me there's even a book on capitalism unrelated to this but I had missed it called capitalism 1.0 2.0 3.0 so we'll look at that too if we can I'll share some of what we mean by saying marketing is moving from products to customers to the human spirit sorry why marketing let me start with the beginning of if not marketing at least the beginning of sales what we have here is a dramatization of the Christian Bible with the beginning of the world as represented by Adam and Eve and the snake so who was the marketer yes it seems that the persuasive one was the snake who talks to even convinces Eve to convince Adam to have an apple which was from the tree of knowledge which meant that they had to leave their garden and now they're spoiled in the sense they're no longer innocent and knowledge has that effect of making us into other types of people now actually the idea of persuasion which is very much an intrinsic notion in marketing was worked on by a lot of philosophers of course the best treatment was by Aristotle the famous Greek philosopher who really in all of his writings but particular about economics he also wrote about rhetoric the art of persuading someone to do something and he talked about what characteristics of the speaker will have an impact and the listener the speaker's power of stirring the motions of gaining credibility and so on I'll leave that for you to research further but let's take some other early signs of marketing's beginning so I could ask you normally in the test what was the first department store ever in existence and I'll give you the answer because we don't have time for test taking the Mitsui family in Japan in 1650 opened the first thing that we could call a department store and by the way the Mitsui family is still around so it's one of those very rare long-lasting long-living companies of over 500 years the first newspaper weird in England in and was for coffee first advertising agency began in 1869 and still around NW heirs of though it's been assimilated first brand name was there's soap instead of there being just plain soap para so first laundry first packaging because soap was not packaged soap was originally soap without any paper on it that appeared later and the first marketing research department appeared in 1911 when people asked how old is marketing it's 100 years old basically it wasn't around markets were around right you can go in the Middle Ages and see people gathering once a week with some goods to sell they would sit on the street on a carpet markets is as an old idea but market team would suggest action in connection with markets marketing is to act with in with markets the first books with that spelling marketing were around in 1905 and they were written by economists and the economists who wrote those books were unhappy economists they felt that economics was always talking about demand and supply but never knowing the real marketplace because you know a price is not only set by the manufacturer it's set by the distributor and then the retailer and and then there are jobbers there's advertising salespeople economics which is the science in which I was trained never talked about the market world the world of institutions and and dynamics so and that began our books on marketing when I wrote my first book 1967 I wrote it in a different way than most of the marketing books had been written most of the marketing books said in descriptive and prescriptive they described what a jobber does what a salesman does and what they should be doing but it wasn't empirical it wasn't based on a lot of scientific thinking like if you ask them you would like to put this question to a company what is the optimal number of salespeople you you need well that question wasn't in the textbooks it was more like we need some salespeople but we were beginning to join quantitative methods with answering advertising and so on and so forth so my books purpose was to bring economic science quantitative science social science and so on blend them in such a way that students would see the drama of the marketplace and that summarized by this slide but I want to say that as we explain marketing to people we have some early heroes of which you see their pictures and you probably can't tell who anyone is and yet they were so important to the development of the field so I can give you this earnest dictor was a motivational psychologist who got us interested in consumer behavior how do how do people make choices when they see many brands and so on how do they choose and he was influenced by Freud so much of his work was he would interview about ten people deeply lots of questions trying to get to their unconscious and he would then propose a brilliant insight esta why people don't like prunes all kinds of questions and and so he was considered a headshrinker type he was into the head of buyers Along Came Alfred poets who didn't do that he wanted to understand customers from the point of views of statistics their ages their income their segments so he was basically a survey researcher so he didn't go deep into the head but he could count a lot of he could give us the size and characteristics of the market then along comes Julius Rosenwald who built this wonderful new idea of a of Sears Sears was a store in the United States set would sell everything through catalogues and it also ran department stores but if you were a farmer you would see their big catalog and you can order things for your business or for your personal attire and then we had Lester Wunderman who built the field of Direct Marketing so if you get some catalogs mailed to you or you get Direct Mail things or you get phone calls what we call telemarketing the whole field of directly going to a specific person with an offer David Ogilvy one of our very best advertising people and he wrote a wonderful book you should read called confessions of an advertising man it's not that he's done anything wrong to do confessions but he wants to use that title to get you interested in reading about what was it like to be an advertising person and then Stanley Marcus who was the Guru of department stores the whole idea of that kind of institution Marcus Neiman Marcus is the famous store we have in the United States and by the way I had the feeling that department stores are on their way out they're a declining retail form but that was based on my us experience because with our big Walmart's and and our big what we call stores that represent one thing like sports equipment or pets or something the department store is having problems but when you go to a lot of countries I was just in Bangkok and Bangkok's that department store is buzzing with people you go to Japan the Takashi Amaya and Mitsukoshi department stores very much alive so you can't say that any retail form universally is either on the up or on the down then we have the father of public relations because you know marketers should also be good at at public relations and Bearnaise was the one who started that and finally some of you may know this person who is Dale Carnegie and wrote the famous book on how to win friends and influence people it's still a classic although it's about 30 years old then it's you have to read if you're going to be a sales person and so those were some of our early contributors now what really created the field of marketing was that the salesmen were too busy to there were always salespeople but they were too busy to do certain things they wanted someone else to do these things the first thing was they the salesmen were not going to do consumer research in a formal way so they wanted a hire a marketing research person to do some understanding of the customer and then they wanted someone to give them the leads a lead as someone to call on because they may have an interest but they don't want to just knock on doors they would like what we call hot leads oh that person's ready to buy so we needed another person who knew how to generate leads find out customer prospects and then the salespeople didn't want to make the brochures or the ads they don't have the skills of doing that so there was interest so in these cases the sales department of companies actually hired some extra people to sit in the sales department there was no marketing department to help the sales people well that soon became the marketing department in other words instead of just three things three activities that were outside of Direct Selling you put together some more things and now a modern marketing the organization certainly for Unilever Dunlop and any of the big companies we don't even call the leader of that marketing the vice president of marketing we've changed it to the chief marketing officer and the reason is that the the word chief means people involved in running the company so there's a chief financial officer a chief information officer and so basically finally we now have a chief marketing officer good thank you a chief marketing officer which is our new name for the marketing vice president but it means that he sits with the other chief officers to develop strategy we have brand managers category managers market segments managers distribution channel managers database mark managers internet managers so in a big company we may find a pretty big department never as big as the sales force sales is much bigger but these people exist to facilitate selling to help this more selling take place both through the sales force and also through the 30-second commercials and things like that now what's the quality of a marketing department I mean which one would you like to work for if you if you can work for a Unilever or coca-cola what's what what makes a good marketing group a lot depends on the head of the company the CEO there are many CEOs who don't know much about marketing because they really came through engineering or law or finance or accounting so they have a limit and what when it's very limited I call them a1 P marketer remember there's four PS price and a product price place and promotion but this is the kind of person who says get me someone to do some advertising now that's a really reduced view of the power of marketing I'd rather work for the four P marketing CEO because he will or she will say get me a person who can prepare a marketing plan that describes our products and what is special about them sets the prices on the products and and tells how they're going to move through place the channels of distribution and how we're going to promote so I'd rather work for that CEO even better than that CEO is the one who says yes not only for peace but STP I don't think I want to go after the mass market I want to know the segments I want to be only in certain segments by doing the best job for those segments maybe I'm going to sell to women only or I want actually women between 35 who are married and have children I I have a product for women who are married and have children so segmentation targeting positioning is even a more evolved sense of marketing and then the most evolved sense I call em II marketing which Procter & Gamble claims any stands for marketing is everything marketing is everything it's a company that is thoroughly driven by the marketing and customer idea I mean everything they do what is the impact on the customer who is the customer how do you please him how do you win the customer so that shapes a lot and then if we go a little further and ask what does the CM do that's the chief marketing officer or the old vice president of marketing certainly should represent the voice of the customer to the to his colleagues he should say here's what customers think he should he or she should say here's what's happening to the market it's changing the customers want something different or something more that person should be watching the brand and building the brand that person should be bringing in new technology for marketing and I mean marketing is becoming very technical you could be on either the creative side of marketing or the technical side in fact we have from Great Lakes you have a annual program called analytics where you are one of the leaders in inviting those marketing experts who know how to get measurement tools how to use factor analysis and cluster analysis and discriminate go statistical things to get customer insight and you want the CMO to also look at the portfolio and say you know we got some dead products we'd better get rid of them and we got other products that need more money because they're our future so that's another task another task and a big one is to answer the question of the CEO what did I get back for my marketing investment and the answer is called our OMI marketing return marketing what's the return on marketing investment basically and that's not easy to measure especially with the new media how do you measure Facebook's contribution and Twitter's contribution and so on but there's a lot of work being done there now I want to say that another aspect of marketing for those of you who may not want to get into marketing soup or marketing soap which we call consumer marketing there's a lot of things we call it the broadening movement I've been a major part of the wish to make marketing be known to everyone and for everyone to realize they're doing marketing all the time they're marketing themselves if they meet a woman they want to marry they have to market themselves to be interesting enough to hear and vice versa and when you want to get a better job you are one of 20 people appoint applying for it obviously you're going to come dressed well you're going to be prepared so we are always marketing is universal look economics is universal but not believe is a different mindset than just economics or finance it's a different mindset so we distinguish between commercial marketing place marketing maybe some of you want to help a city or a nation be better known to get a more tourist to attract more investment wonderful field of work and then person marketing maybe want to be in Bollywood and you would like to create some stars or seniors you want to help people who have the talent become more visible better known I wrote a book called high visibility on that subject social marketing we want to help people not smoke because it's not good for them not take our drugs to eat better to exercise more all of those causes we call social marketing would you know do you know that there's about 2,000 professional social marketers in the world now well-trained to help with selling a cause changing a behavior that it's better for people and then there's political marketing which is getting very sophisticated and but I won't mention more about that and then fundraising all of that now fundraising what if you want to be in a museum and you want to help them using be successful you need to be able to attract visitors you need to be able to attract donors who will contribute money to attract government support there's a lot of marketing jobs in just a museum or a theatrical group or whatever so that's broadening and I'm going to say that that's the good news about marketing now there's some bad news there are opinions about marketing practice that we have to answer and and reduce these practices that marketing is intrusive it interrupts us it the pop up ads the ads on on shows that we're watching on TV sometimes we say it exaggerated s' so the famous story about the cosmetics companies saying that in the factory we make medics in the store we sell hope yes that's true and that's a insight that's a brilliant insight that people are there to believe that that skin cream is going to make us more attractive and draw more people to be interested in this there's going to be some of that and there should be but it shouldn't be rise complete lies or things like that we don't like hard selling or pressure selling we often talk about soft selling and no selling as a selling approach no selling is where you don't do anything and and and yet they may of you're getting so many customers and you say I'm not sure we can serve you and they get more interested in being served because they want to get into the club that is there we have a practice called buy now pay later and I'm upset with that practice because it caused the financial collapse that we went through people wanting a home buying it for only 5 or 10% down and then they lose their job and then they have to the home recipe foreclosed and taken away from them and so on why we want everyone to have their dream but they should have enough capital maybe such a person should be in an apartment not only home and an apartment could be quite a nice thing without when you don't where you can afford the monthly without having the capital to buy a home planned obsolescence is a complaint that although we love it we love it I you know if you have the iPhone one night because there's the iPhone 5 and that's a better camera and it works faster so what do you want to call that progress or do you want to call it planned obsolescence it depends on your political point of view and then the problem of over choice we get so confused by so many deodorants so many shampoos and how do we even make a choice sometimes people walk away from buying a product because they can't even decide which of the brands they should be buying those are some of the issues and that those issues led to a number of critics of marketing Ralph Nader is probably the best one and he criticized some of the automobile manufacturers particularly Ford Motor by saying that they were making some cogs that were really unsafe and they and General Motors - and then General Motors sort of followed him and then we learned about that and we embarrassed General Motors for spying on him to actually cut him down to size and so he became famous because it was spied on by General Motors but he's quite articulate racial coughs and was this wonderful woman naturalist who told us about pollution she weight awakened us to what's being thrown in the water dumped in the water and her book was called silent spring Vance Packard made a career of charging us with the ability to manipulate people so it's like he had the image yet when you go into a movie theater and you don't want to buy any popcorn or anything suddenly the ad there is on the screen you can see it but subliminal ads that actually make you thirsty and hungry and you leave you go before you finished and us were popcorn well that's never been proven that there are such subliminal ads but he called that in his book the hidden persuaders and then he says marketing tries to make you not surpass your neighbors there's kind they make you want to be admired for your consumption that you can afford a better car than they can and so on so a lot of attributions were made about materialism and it's driving us rather than we are we're not really leading the good life but we're being driven by accumulation then John Kenneth Galbraith brought out a very interesting thing here we've got a good private sector and we have much choice we can buy one of about 50 different kinds of automobiles but when we drive the automobile we can't get anywhere because the roads are congested the public sector isn't supporting the private sector in other words the infrastructure which should be supplied by the public is not up to the level of our wealth as a the effluent society was his book then Naomi today wrote a book called no logo she doesn't like brands she thinks branding is making us pay more money for the same thing a brand is all about voting the preference for that name and institutional supplier which may not end up being a product that's any different than any other commodity and then there's Michael sander Sandell who is a very popular Harvard ethics ethics teacher in fact his class has always had 1,000 students he has that big auditorium and he raises questions about morality and his recent book on what money can't buy he is trying to put limits on marketing he thinks he says look at the old days when we used to watch a baseball game in the United States and I might have a seat and next to me is a very wealthy man I don't even know it but we all were equal we all went to swatch the baseball game today all the wealthy people are up there in a spy in a skybox it's called and they're being served steak while they work the ball game and they had nothing to do with us and he says the skybox off' occation because it's skybox off' occation of america the kind of class of classes are growing more distance by the way one of the real problems in many societies is the distribution of income and wealth getting more and more concentrated which is going to be suicidal for an economy because if there isn't available purchasing power then the rich can't really make much more anymore there won't be markets to sell to so if you watch what's happening in Europe Europe is beginning to put ceilings on things like they say that bonuses paid in their firm in their van should not be more than one to one the salary is whatever it is in the bonus that's equal to salary now they're even saying maybe they'll say to the one twice the bonus of your salary but and they want to put caps on on certain things so there's a movement to sort of contain the wild payments being made to some people with money that really be better distributed and so let me move on will I remember Will Rogers remark he's one of our famous comics he's I just spent the same amount of money on improving their products as they do on advertising they wouldn't have to advertise them so now who are the best marketers today you'll probably recognize some of these people is that correct some of those faces you can recognize let me fill you in I want to give a lot of credit to someone you wouldn't have recognized but he's the swedish person who started the IKEA company the furniture company I don't think you have IKEA here do you we do what City Oh wonderful IKEA is as a day-long experience buying furniture and then you go in and you go to their restaurant and you have their Swedish meatballs and then you take your children and you put them in a daycare center because it but the main thing is the price of it's the price of good furniture coming down because everything's collapsible furniture it's designed so it could be rebuilt when it's bought back in the home which means you're not shipping air so you're not shipping a table already set up in a big box you're just shipping the components of the table but in any case it was brilliant Richard Branson always a genius hundred and twenty companies need any of his books you'll learn how a real creative marketer things Walt Disney having created family fun entertainment really hurt Kelleher who was the first to really create an airline that's a low-cost airline now we have a number of them Jet Blue and all kinds of others but to this it's the most profitable airline Anita Roddick the late Anita Roddick who started the body shop the first time we began to see a company or retailer products very authentic products that met the claims but also one in the store to get you to be helping with the homeless saving the whales so she made it a kind of a social activist approach she actually felt retailers should also represent purposes and values and we call that values marketing and it's on the increase that it's not just value marketing value marketing is that you're offering a superior offer it has more value values Marketing is your the kind of company that cares you have a set of values it's sort of corporate social responsibility and so on and then you've got the Bill Gates all of you know about him and Steve Jobs and Jeff Bezos is the person who started Amazon first books and now everything can be bought at Amazon so I would say these are my choices of the most creative marketers I use a diagram in my marketing 3.0 book which briefly does this every company has to spell out their mission their vision and their values and every company has to appeal to something they can appeal to your mind or your heart or your spirit now if you take the first column mind a 1.0 company is going to deliver satisfaction hoping to be profitable and saying that it is better than its competitors maybe not different but at least they're better so that is called marketing 1.0 and you can make money as a company on that first column it's enough I mean as long as they prove to you that their product performs better and that's a mental proof but more and more companies are saying we got to engage the customer more we want royal custom so we have to emotionalize more our relationship so we might show a baby in the commercial because people love babies and make that it's it's really a detergent commercial but you have some babies and we want to keep your babies clean and all that so you somehow turn to more emotional marketing and now that's a 2.0 but 3.0 is still scarce 3.0 means the company says we want to give back something because we have benefited a lot from the fact that the society has built roads built education educated people we couldn't be the kind of company we are if the society hadn't been good to us so we want to give something back so that third column practiced some compassion practice sustainability where you want to keep the society going forever in terms of healthy resources and healthy products and so on and then making a difference notice that you're going to do differentiation but making a difference is a big and you can illustrate a company that is in all nine columns this happens to be a favorite company of mine SC Johnson they make the products you see in the upper left a lot of packaged products they're very good at insect repellents wax products perfume kind of products but in any case if you look at the nine cells you'll see there's evidence that they are a family-owned and a company that wants to express about the society and I can show you other illustrations if we had the time now so there's a movement toward marketing 3.0 let me give you a few words about a book that impressed me very much called firms of endearment any of you see that book yet or read it firms of endearment I actually should get a commission for mentioning it and that's not my purpose because this is written by friends of mine and I wish I had written at first in fact two of them are from India Raj Sisodia and he's now at he changed his university in the United States and Jack Sheth is a very very famous he's one of our most honored and brilliant marketers but notice the subtitle how will class companies profit from what well you will say profit from making good god no from passion and purpose passion and purpose so what did they do they did a survey Nazca people on the street and in the United States casual surveys they'd stop a person say is there any company that you really love that you buy things from and if the person says I don't really love any company but I like some they me say is there any appeared because you've been buying from them and if they disappeared you'd be really sad with those questions guess who came up if we had time I would ask you to tell me what companies you care about that much but look at the list Amazon Apple Best Buy BMW now some of these may not be here I don't know if Timberland and Patagonia but those were three plus companies mentioned by people that they would truly miss so they took this these companies and then they asked do these companies perform better than their competitors now what's your guess do you think companies that people love are likely to be more profitable okay let's see what the actual results these firms of endearment were highly profitable they outperformed the market by a nine to one ratio over a 10 year period the employees were happier they were the customers are more loyal the companies weren't more innovative more environmental you know it's a dream that these companies now you might say if they could stop there it's already a book to read but they said do you think these companies have certain things in common that would define what is good companies could practice unless doing what they call factor analysis and sophisticated analysis they found eight things that make these companies great so let me just read them briefly all of these companies don't focus on the owners or the investors they focus on the stakeholders so more is you're trying to form a team that's a winning team and I'm the team will be your customers your employees your distributors your suppliers those who have a stake in the business so it's really what we call relationship marketing not just making a sale building up loyal strong team feeling in your stakeholders all of those 25 companies have a stakeholder concept instead of a shareholder concept second they all pay good salaries to their top people but nothing like the out courageous ones in fact one of these CEOs said technically I would work for $1 a year they want to pay me five million dollars but I would have worked I'm having so much fun with this company I love the company I would work for nothing you understand these are passionate CEOs who really care about building a great company third it's easy to give ideas to your boss the boss may have an email number especially for the employees the distributors the suppliers customers so good ideas can come to the boss and his people and actually some of these companies are asking their employees to rate their superiors you know how your supervisor rates your rates you as an employee well why can't us why can't we rate the supervisor or maybe a bad supervisor so we're into information systems now that will give us good feedback on how we're doing the employee compensation is higher for the paper working for these companies than their competitors and the training is longer and the whyyy turnover is lower they hire people who are passionate about customers they view suppliers as true partners who you don't want every year to change your suppliers just to save a penny you know how sort of suppliers get nervous at the end of the contract will they use us again but then the suppliers won't do a lot of long-term building to be the preferred supplier most of the supply companies say I want a supplier and a five-year contract I want that supplier to let's say it's an automobile company and the supplier makes seats for new cars the seating and you say I'm not going to change my designer every year I'm going to give a five year contract that's the best seats designer and I don't want to loosen either and then they believe that corporate culture is their greatest asset and it isn't the same culture every company has a different culture one culture may be like the Apple culture really innovative another may be a very friendly culture whatever it is it's everyone's living the culture of their company affect people are being hired because they fit into the culture and then finally and this is the real payoff for us in marketing their marketing costs are lower than their competitors in other words they are not winning market share by spending more on advertising so the question is who's doing the advertising the customers if you can get your customers to be excited about your products and your company and now you're in it where you can tell your friends how what you think of your companies then you don't have to spend much on 30-second commercials and okay so you I think someone told me a book recently came out called good companies from a different point of view but maybe with a lot of overlap on this now we have problems in the future I'm going to end with these two that we have to think about what is the relationship between marketing and jobs and I told you jobs depend on people buying things and spending money but there are things happening the slow growth of population the automation of production computers robotics 3d printing there's a lot of technologies and we got to figure out what the good life is going to be like when there aren't enough jobs so how do we get to earn money in live a good life I'm thinking of the factory that's operated by just two beings a person and a dog and the dog is there to wake up the person who is operating the factory and that's the nature of robotic factories so where the jobs going to come from that's one thing and the book came out recently called the death of demand and what is relationship between marketing and demand and is the u.s. in the u.s. s case experiencing demand saturation there's some talk now about famous brands losing some of the following like why should I paste that much now if I just came back from Bangkok and if you go through their airport you see all the famous French brand Chanel Dior and you see the Italian brands and the stores are empty now maybe because people don't have the money or they are saturated but how it's interesting this responsibility of marketing the society going the create to create the Lance the needs and the demand at levels that will supply jobs to enough people so I'm going to stop here and say that I wanted to share with you just an overview of us of the the greatness of the field and and how critically important it is I would almost say that marketing is much says then finance or just operations and when a nation becomes market driven and customer driven and innovative then Scott the real answer thank you very much you did we miss anything we started from other money when we ended with death of jobs ending jobs in death of demand and stuff like everything you missed anything at all so now that we are serving up life has been vetted of the open house proportions you spoke about you spoke today about old marketing and the new age marketing coming up which is the marketing 3.0 this was also an article where you had mentioned about the paradigm shift of marketing to the network marketing lately my question to you is one how do you quantify this kind of marketing the new-age marketing and - how do you predict the future of this in the rural market which is the untapped market in India yes you know most of us in marketing have neglected the rural market because in the United States we only have 3 percent of the people are farmers because of the productivity that's been taking place in agriculture and by the way the world and it's going to even get more concentrated in other words urbanization is the biggest phenomenon now so in India I know that the early textbooks on marketing always had a chapter on agricultural marketing that's not me because I'm not moving yes I do I didn't have a mobile who would I be yeah let's see maybe it's off of course let's see so the old books on marketing always had a chapter on agricultural marketing actually in some ways we should go back to some of that because now two things are happening in farming and rule one is called vertical farming vertical farming they're actually growing fruit and vegetables and the high raised rights building and there's a thing called and then we're asking cities new cities to be designed in such a way that there's local product grown in the cities rather than in other words the apples are being grown right in the city you don't have to take them from the other part of the country and in fact China apparently is building a whole bunch of new cities and the job is to figure out how to design them in such a way that people live close to where they work because that way you're not going to have all this congestion and loss of time going from to work and so on so I we have some wonderful opportunities to create the cities of the future or we renovate the cities in such a way that they make more sense for everyone they pollute less and then they and they and there's less congestion and so on and so forth but I don't think I've answered the the real point of your question but there's a lot of work to be done in real marketing as well and especially since room areas are more of a poverty issue we need social services we need more education and health clinics in those areas and I appreciate your question we'll get the next question there's more some sunken country there's a lot of buzz about additive manufacturing you also mentioned 3d printing in one of your slides here so do you think additive manufacturing is going to create some ripple effect in the marketing world and is the marketing world ready relative and I call the robotic marketing is that the same thing we're talking about us it's more like 3d printing the stuff do you program anything and it prints into a three-dimensional object are you talking about 3d printing yeah yeah but 3d printing is some real good things happening you know we've every nation should try to cultivate entrepreneurs and entrepreneurs are often creating something in their garage and but there's no way to get into a production without a factory and so on and now 3d printing makes them because we use a word called prosumers a prosumer is someone who's a productive consumer and actually makes some of the of the things he or she wants for himself or herself and for others so the the technology world is technology this is our technology and globalization those are changing our lives and they are causing lifestyles to change at a very rapid rate but regarding and the future I almost would like to see more local production by by cities and so on then then the kind of mass production where everything is made in a factory somewhere in the world and then is let me give you a new thing happening instead of there being a factory in Detroit that makes a car all that that factory does is it sends out the data to Los Angeles to Chicago where there are little factories that make the car so that means shipping is not necessary all your ship is the data on how to make the product and therefore we don't have as many trucks on the road we don't have as many boats on the water so there are some products that are amenable to being made as long as the data is shipped to you and that's a form of localization of production so we think we should move to a more localized production thank you sunitha yes I see you corruption my name is Glen Souza and my question to you is in today's rapidly changing business environment where competition is getting so fierce and strategies to target customers are becoming more and more common across enterprises which one of the seven pieces of marketing according to you would gain maximum momentum in the near future and would ensure would enable businesses to ensure a strong foothold in the market and right okay let me answer you with this good interesting question first of all a interesting statement was recently made by Kevin Roberts that gets to your question Kevin Roberts is the president of Saatchi and Saatchi one of the world's largest advertising agencies he's also the author of a book you should all recall love marks love marks a love markers when when you love a company it's a different version of how you get people to fall in love with a company but Kevin Rogers recently gave us a Kevin Roberts is his name he recently gave a talk that was very provocative he said because of all the changes in the world it is the end of strategy the end of management and the end of marketing he meant to mention mented in a different sense than I why the end of strategy he says the world is changing so fast that no strategy can be continued if you're going to say this is my five-year strategy you better change it every year at least update it for five years but you cannot in a world of suffer of such rapid change stick to something that you thought would work in fact don't stick too long to the strategy that worked before because it's a new world and the one work in the new world then the end of management he was suggesting that we're moving to an age where a smart company makes every worker a self manager you don't need layers of management in other words you saw carefully define what everyone's going to be doing that you don't even give titles I was in the company in in Sarasota Florida where I spend my winters and it makes hydraulic components own is so

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Length: 61min 27sec (3687 seconds)

Published: Wed Mar 27 2013