ENGLISH: The end of mass marketing

The end of mass marketing – 5 key rules to investí in the “Shopsumer” as the new end customer

One of the main errors we continuously find in companies that are dedicated to the production or distribution of consumer products, is the fatal predominance of an obsolete Marketing paradigm: according to that paradigm, Marketing is used to attract large quantities of people, communicate the benefits of our products and services to an abundant audience to generate product trial by multitudes, hoping that a relevant quantity of people is sufficiently satisfied to continue buying it. It’s the shotgun principle, which the hunter employs with the relative certainty that at least some of the hundreds of little bullets he fires reach the targeted objective. But the current economic revolution will show that it is essential to concentrate on having truly satisfied clients. And I ask myself: Where are the photos of satisfied clients (= people) that we proudly stick to the wall of the Marketing Director’s office? How can we characterise our most loyal clients, enchanted with our products? Those photos don’t exist, because in reality, we do not seek 100 % satisfied clients, but essentially many clients that are not unsatisfied, who, because of comfort (= time) continue to be “faithful” to us. That is the way large volume is generated which then allows efficient production in our factories. And in the wake of the crisis? To diminish the risk of losing a lot of money with very expensive bullets (= advertising), we load up more bullets that contain a lot more tiny little balls (= promotion) to reduce the price level to whatever is necessary to maintain our not unsatisfied client. But if that policy already provoked a continuous increase of marketing spend without generating more sales, do we really believe that intensifying it will help us survive to eventually put the price “back to normal” (if something like that will still exist)? No, this new economic reform (= crisis) will turn those companies into winners that focus on their good clients, those that work hard down to the most little detail to satisfy these clients completely, because only if this client is a 100 % content can we count on his help to conquer new clients y convince them of the advantages we can offer.

5 key rules for Marketing in the future
In the following, we will expose 5 key rules that mark the strategy of companies who concentrate all their efforts solely and entirely on those clients they are capable of satisfying at a 100 % rate:
1 – The Shopsumer:
The satisfaction of our new end customer in the future is influenced mainly by those suppliers that offer them a good solution for their time AND money budget. With the example of the free newspapers that are distributed in the street, we have learnt once again that a 0 price is by no means the decisive variable to achieve exceptional volumes. Time, as it is not recoverable, will be the key to differentiate the offer towards the new client, the Shopsumer.
2 – The I-Marketing:
Marketing is no longer a form of commercialising which is reserved to professionals in companies, but rather the way of living of everyone. The Shopsumer does not look for products and services “at the best price” any more, but for those who have the best fit with his own positioning as a participant of Marketing, those that accomplish his attitudes, convictions and feelings. The iPod did not sell that well because it is a magnificent MP3 reader with a sexy design, but because a lot of people needed it in order not to create a mismatch with their environment and their philosophy of I-Marketing. They are willing to spend much more money on a product with its corresponding service, if its producer represents their values with authenticity. Facebook, Twitter, LinkedIn, Xing and many more “Communities” are the evident reflection of I-Marketing. Instead of presenting our CV only a few times throughout our lives, we deliberately show it every day, 24 hours, improving it with every person that contacts us in the same way. The Shopsumer does not want to be unperceived and that is why he “invests” in his own advertising.
3 - The Touchpoint Management
The satisfaction of the end customer fundamentally depends on the impression c company causes on him in 3 key touchpoints: the communication (advertising, website, customer service, packaging etc.), the transaction (the POS, payment terms, delivery service, help by personnel etc.) and the consumption (in different occasions and at different times). Although some of the aspects of Touchpoint Management refer more to the responsibility of the manufacturer and others to the retailer, any one of the two has to define a clear attitude towards the ideal positioning of his company in the 3 touchpoints. If a manufacturer wants to reach a “Premium” positioning, but allows that the delivery service of his product carried out by the retailer is identical to the one of the cheapest product, this undoubtedly compromises his ideal positioning. In the apparel and accessory sector, more and more manufacturers start to open their own stores for the simple reason that they need to transmit their exclusivity in a more direct way to their customers.
4 – Invest strategically, but measure each investment:
To concentrate all commercial efforts of the company on the utmost satisfaction of the Shopsumer, it is inevitable to take a strategic decision on the distribution of resources over the 3 different touchpoints before investing in singular activities like promotions, expositions, samplings etc. This decision substantially depends on the attitudes and habits of the target group concerning these touchpoints and how these influence in their satisfaction. Only after this general decision on the budget split can we define detailed tactical activities, but it is then essential to monitor each and every one of them in their impact on sales, their efficiency and their capacity to attract new customers or increase the spend of existing customers. If incremental sales do not overcompensate for additional costs (or the underlying reduction in contribution margin), the activities generate a negative return, converting themselves rapidly in the main reason for a continuous decline in EBIT. Too much obsession for volume has put many companies in severe difficulties these days, take Arcandor in Germany in the Retail sector and General Motors in the automotive sector, for example.
5 – The true supply chain ends in the Shopsumer’s home:
Reiterated manifestations of companies to be committed with sustainability and the environment as well as the continuous search for improved costs in transport through reductions of carbon footprint between factories, warehouses and stores are necessary for the “normal” progress of an economy, but the logistical movements between companies in this industry probably represent less than 10 % of those our final customers effect every day. If we really want to reduce CO2 emissions, curtail time products travel from their origin until their final destination of consumption and decongest roads, it is critical to analyse the only one supply chain that’s valid: the one from the source of raw materials to the final destination, the Shopsumer’s household. Great logistical concepts that have been put in practice for the past 10-15 years between companies have to be extended immediately until the end customer, taking advantage of new technologies to facilitate the information flow and at the same to improve the Shopsumer’s education in this field. If for each 100 neighbours of a village or a street we used one single means of transport to deliver all their standard purchases, we would generate an enormous saving for all users apart from huge advantages for the environment.

The new paradigm:
Marketing to manage satisfaction, not sales
Marketing has to transform swiftly into a tool that improves the constant dialogue between the Shopsumer (= end customer) and companies in the industry with the objective to freely circulate necessary data and information among all agents (manufacturers, retailers and Shopsumer). The growing concern of the Shopsumer on optimising his time AND money budget and the need of manufacturers and retailers to eliminate inefficient activities with huge volumes lead to a system in which a permanent relationship with the best clients is established to
a) take advantage of their willingness to share data on their behaviour and thus continue to innovate
b) concentrate all activities of the company on the satisfaction of those clients without compromises, based on the profitability they offer.
The company that still seeks many not unsatisfied customers has lost its right to exist!