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Peter Drucker, the guru of all management gurus, once wrote that marketing was the distinguishing, unique function that set busi
The Guru Guide™to Marketing The Guru Guide™to MarketingA Concise Guide to the BestIdeas from Today’s Top MarketersJoseph H. BoyettandJimmie T. BoyettJohn Wiley & Sons, Inc. Copyright © 2003 by Joseph H. Boyett and Jimmie T. Boyett. All rights reserved.Published by John Wiley & Sons, Inc., Hoboken, New Jersey.Published simultaneously in Canada.Designations used by companies to distinguish their products are often claimed as trademarks. In allinstances where John Wiley & Sons, Inc., is aware of a claim, the product names appear in initial capi-tal or ALL CAPITAL LETTERS. 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ContentsIntroduction viiChapter 1 The Future of Marketing 1Chapter 2 All You Need Is a Brand 39Chapter 3 All You Need Is Brand Management 79Chapter 4 All You Need Is a Customer Relationship 99Chapter 5 All You Need Is Customer Equity 149Chapter 6 All You Need Is Buzz 187The Gurus 217Notes 231Bibliography 239Index 247 IntroductionPeter Drucker, the guru of all management gurus, once wrote that mar-keting was the distinguishing, unique function that set businesses apartfrom all other human organizations. As a businessperson, you know howimportant the marketing function is to the success of any business. You alsoknow that marketing is in the throes of change. The Internet has altered thedynamics of customer and business-to-business relations. Regardless ofmedium, advertising doesn’t seem to work quite as well as it once did.Once-strong brands seem to be less potent. Of course there is no shortage ofexplanations for what is happening to marketing and advice for remedyingits ills. Amazon.com lists over 13,000 books on marketing and a search onGoogle.com yields over 22 million Internet sites devoted to the topic.Therein lies the problem.If you are like most people, you simply have too much to do and too lit-tle time to sift through hundreds of books, thousands of articles, and mil-lions of web sites on marketing to uncover the latest trends and revelations.Which books should you read? What articles could provide you with in-sight into emerging marketing issues? Whose writings should you seek onthe Internet and in your library? Who are the leading authorities on brandmanagement, customer relationship management, and other hot marketingtopics? What advice do they give? How do the ideas of one authority com-plement or conflict with those of another? You need a guide to answer yourquestions. Congratulations: you have just found it.This Guru Guide™ to Marketing has been designed to provide you witha clear, concise, and informative digest of the best thinking about marketingin the new global, high-tech world of business. You are holding in yourhands a highly opinionated but informative guide to ideas of the world’s topmarketers and marketing consultants. Like the original Guru Guide™(Wiley, 1998), we have designed this guide to be more than just anoverview of current thinking. We go further to link and cross-link the ideasto show where the experts agree and disagree. We show how the gurus’ideas have evolved. Finally, we provide an evaluation of their strengths andweaknesses.vii OUR GURUSIn selecting our gurus, we began by making a list of established marketinggurus, such Philip Kotler, who have dominated marketing thinking fordecades. Then, we went looking for the newcomers. We browsed the on-lineand off-line bookstores. We consulted the marketing journals, both popularand academic. We cruised the Internet. We searched for those who were mak-ing a splash with new marketing ideas. What journal articles and books onmarketing were people reading and talking about? Who did the popularmedia—TV, radio, business periodicals—cite on emerging marketing issues?Who was widely recognized as THE marketing authority? Who was beingquoted? Whose ideas were being discussed? Whose were being cussed?Because the economy and marketing’s challenges have changed so dra-matically in the last few years, we focused our search primarily on the mostsignificant books and articles that had been published over the last threeyears. We checked the best-seller lists to see what people were reading, andwe asked our friends, clients, and associates to recommend people theythought had unique marketing insights. We ultimately narrowed our listdown to the 62 gurus listed here.THE GURU GUIDEviiiDavid AakerHarry BeckwithRobert BlattbergNeil H. BordenMarc BraunsteinDarren BridgerKevin J. ClancySteven CristolAdam CurryJay CurryDavid d’AlessandroFrank W. Davis Jr.Scott M. DavisGeorge S. DayLaura DayFrank DelanoGary GetzMalcolm GladwellMarc GobéSeth GodinIan GordonSam HillRobert HisrichArthur HughesErich A. JoachimsthalerGuy KawasakiDuane KnappPhilip KotlerPeter C. KriegChris LedererKatherine LemonEdward H. LevineJay Conrad LevinsonDavid LewisKarl ManrodtChuck MartinRegis McKennaMary ModahlAdam MorganFrederick NewellDon PeppersFaith PopcornStan RappFrederick ReichheldAl RiesLaura RiesMartha RogersEmanuel RosenRoland RustBernd SchmittDon E. SchultzEvan I. SchwartzPeter Sealey Patricia SeyboldAlex SimonsonJacquelyn ThomasDaryl TravisJack TroutLars TvedeFred WiersemaValarie ZeithamlSergio ZymanINTRODUCTIONixOur gurus are drawn from leading research and teaching centers such asthe Harvard Business School, the London Business School, the WhartonSchool of the University of Pennsylvania, and the Kellogg Graduate Schoolof Management at Northwestern University. Our gurus also represent someof the world’s largest and best-known management consulting firms, in-cluding Forrester Research, and they include marketing pioneers in thehigh-tech industry such as Seth Godin of Yahoo!Our gurus are the best and/or most popular marketing writers andthinkers. You won’t agree with everything they have to say—we don’t ei-ther—but we are confident that they will stimulate your thinking, point youin new directions, and challenge many of your best-loved assumptionsabout what is wrong with marketing and how it can be fixed.ORGANIZATION OF THE BOOKWe have designed this book to be your reference manual to the current chal-lenges marketing faces. It is organized around key marketing issues. Wecover each issue in a separate chapter and present a summary of the bestthinking of a panel of gurus about that issue. We show where the gurus agreeand disagree. When our gurus offer different approaches—such as a differentsequence of steps to follow in addressing an issue or solving a problem—weuse tables, charts, and exhibits to illustrate the similarities and differences.We have organized our gurus’ ideas into six chapters.Chapter 1, The Future of Marketing, provides an overview of some ofthe most critical challenges our gurus say marketers face today includingthe increasing difficulty in creating relevant and distinctive product differ-entiation, the impact of the Internet on consumer/business and business-to-business relations, the declining effectiveness of advertising, and attacks ontraditional pricing schemes.The five remaining chapters of The Guru Guide™ to Marketing coverfive different approaches our gurus offer to address marketing’s problemsand challenges. [...]... can go directly to a topic that interests you You can read the chapters in any order you wish, since each has been designed to stand on its own Therefore, we encourage you to start with whichever topic is of most interest to you at the moment If you are interested in specific gurus, check the index or the guru lists at the beginning of each chapter to find out where they appear in the book and proceed... or designing .The customer thus participates in the assembly of an unbundled series of components or modules that together comprise the product or service .The “product” resulting from the collaboration may be unique or highly tailored to the requirements of the THE FUTURE OF MARKETING customer, with much more of their knowledge content incorporated into the product than was previously the case.34 Gordon... control over the distribution of their goods: 19 20 THE GURU GUIDE In retail, the trend toward consolidation and large-scale superstores means that relatively few trade buyers, whose loyalties and interests are in deepening their own store brands, control the big wholesale purchasing decisions For manufacturers, who refuse (or are unable) to make the sacrifices these big stores require, the Internet... Promotion, however, we wonder to what extent our gurus’ additions to the schema actually improve it and to what extent they just make it more complex Still, we can’t help but empathize with these gurus’ efforts Things have changed since the 1960s, and the Four Ps don’t really work in the same way today There are problems with every P, as we shall see THE PROBLEM WITH THE PS Place Product Price Promotion... services, even differentiated ones; they want to blend the two into “prodices.” Second, consumers don’t want these “prodices” made for them; they want to participate in their cocreation 17 18 THE GURU GUIDE Prodices Frederick Newell, author of Loyalty.com, credits the term “prodices” to Lester Wunderman, then chairman of Wunderman, Cato, Johnson, the world’s largest direct marketing advertising agency.31... research them with customers, undertake various development activities, and then orchestrate product rollouts Products are bundles of tangible and intangible benefits created by companies for customers The marketer’s task is to put together a product bundle that target customers not only will favor but will be willing to pay a premium price to obtain To achieve this, the marketer’s challenge is to create... differentiating their products would eventually draw the attention of competitors who would simply copy the product, usually at a lower price The innovator would then be faced with three choices: Ⅲ Ⅲ Ⅲ Lower the price to protect market share and accept lower profits Maintain the price and lose some market share and profits Find a new basis to differentiate the product and maintain the current price.29 The latter... a Customer Relationship, covers one of the hottest marketing topics of the day—customer relationship management (CRM) We examine what our gurus say is the key concept underlying CRM and its principal advantages over other approaches to marketing, such as branding; four steps our gurus say companies should take to implement CRM; how they say companies must reorganize the marketing function and the company... say our gurus, is that marketers are losing control over the products they create Customers aren’t content to have companies create the prodices and shove them out the factory door Consumers today increasingly want to participate in designing, developing, testing, piloting, providing, installing, and refining the prodices they purchase Ian Gordon, author of Relationship Marketing, explains the new role... marketing The downside of talking about marketing mix was that there were literally hundreds, maybe even thousands, of activities that could be included in the mix It was easy for students and company executives to get so absorbed in the details that they missed the point of the marketing gurus’ beautiful theory, as was often the case What the gurus needed was a good old-fashioned classificatory schema—a . The Guru Guide to Marketing The Guru Guide to MarketingA Concise Guide to the BestIdeas from Today’s Top MarketersJoseph H. BoyettandJimmie. Internet sites devoted to the topic.Therein lies the problem.If you are like most people, you simply have too much to do and too lit-tle time to sift through