Posts Tagged ‘don schultz’
What Integrated Marketing Is Not (Hint: It’s Not Integrated Tactics)
I just received an interesting comment on my “For Hire” post that asked:
“Are there really any leading authorities – aside from published authors – on integrated marketing and communications? There are a lot of self-promoters who claim expertise in what is usually “the obvious”.
This comment, while obviously an attempt to discredit my experience, made me realized that there are probably many marketing professionals out there that have the same misunderstanding and misperception when it comes to understanding the theory and benefits of true integration.
I want to help fix that.
From the dawn of its time, which would be about 1993, when the “Fathers of Integration” Schultz, Tannenbaum and Lauterborn wrote The New Marketing Paradigm: Integrated Marketing Communications, integration has always been based in customer-centric (putting the customer at the center of the organization) and data-driven marketing. Unfortunately, marketers conveniently ignored the customer-centric, data-driven part of integration. We’ll get to that in a bit…
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Designing An Organization from the Outside-In
“No company will tell you, ‘I don’t want to be customer centric,’ but do you know the difference between taking an inside-out versus an outside-in approach?”
-Ranjay Gulati
Most companies (small to Fortune 500 and everything in between) are not customer-centric—even if they think they might be (market-oriented or customer-focused isn’t the same, but they are a great start!). Driven by revenue generation, product and service development (i.e. profit centers) usually takes the lead and determines the hierarchy, culture and power within the organization. While products and services may be innovative, creative, and useful often the complete inward focus creates a fundamental disconnect between function and actually solving a customer’s challenges—from the customer’s perspective—and therefore companies only gain a temporary brand loyalty foothold. It’s why products and services (whether B2B or B2C) continue to face the challenge of commoditization. Even if customers force fit a product or service that alleviates short-term pain, there is still the hurdle of solving long-term challenges. If they are not focused on or solved, the next company that comes along with a solution and complete focus on achieving loyalty will win. Because companies focus on short-term gains, they lose 50% of their customers every five years or so. Ironically, it is more costly to acquire new customers than it is to make existing customers satisfied.
Breaking the Cycle
There is a reason why companies are not customer-centric. It is an operational practice, which can be difficult, challenging and downright painful especially considering it requires a hard look at what—and who—is wrong when it comes to focusing on the customer. That doesn’t mean it’s not possible, however. There are examples of B2C and B2B companies that get it like Zappos, Southwest, Target, Best Buy, Carnival Cruise Lines, Cisco, Jones Lang LaSalle, and Lafarge.
So then, how does one break the cycle of being solely hierarchical and product-driven?
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Customer-Centric: An Operational Practice, Not a Marketing Buzzword
This past weekend I had the pleasure of being introduced to Ron Shevlin, his blog Marketing Tea Party, and his recent post “The Problem With Customer-Centricity.” (Hat tip: Valeria Maltoni.)
Given that I am a proponent for customer-centricity, I could not help but add my thoughts to Ron’s post since it is at the heart of what I practice and believe as a marketer. As well, I am seeing the trend for customer-centric becoming destined for buzzword bingo and I would hate for it to become meaningless well before its benefits are recognized and experienced.
Ron offers a well thought-out case for what customer-centric is and why it may not in the best interest of an organization (be sure to read all of the comments, too). After thoughtful analysis, Ron arrives at this bottom-line:
“… All this talk of customer-centricity is an utter and complete waste of time. The term means nothing. There’s no common definition, no definitive way to measure it, and therefore, no real proof that a company that claims to be customer-centric is any better (for any of the stakeholders) than any other firm.”
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Failed Icon
Failed icon. Sounds like dismal hook to hang one’s hat on doesn’t it? Especially given that most of us have such an aversion to failure in life and business—or even being associated to failure in any way.
When you think of failure, would you consider someone who:
- has spent a large amount of their career on educating and helping corporations and marketers to become customer-centric;
- is a Professor Emeritus at a well-known university that has a graduate program to educate students in being data-driven to ensure that customers’ needs and wants are met;
- has written over 10 books on subjects like driving and determining brand value and measuring ROI; and
- was named one of the 80 Most Influential People in sales and marketing a failure?
No, I wouldn’t either.
Keep Reading, There’s More Goodness!
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Integrated Marketing & Communications, Redux
The hiatus is over! For those who have been loyal readers of this blog, Happy New Year! And I thank you for hanging in there with me while I took the time to consider where to head next.
For a long time I focused on marketing, PR and social media, but rarely the integration of them all. The focus of The Harte of Marketing for 2010 (and perhaps beyond) will be integrated marketing & communications. While integrated marketing communications (IMC) is nothing new, the embracing of social media surely puts IMC back in the spotlight as its principles are similar to long-standing IMC principles.
I have often said that social media isn’t shaking the foundations of marketing or public relations; it’s just driving us home to our roots, which seem to be long forgotten. The same is true of the integration of communications (advertising, branding, PR, direct marketing, etc.) or marketing functions (the 4 Ps)…many people have been integrating since the 90s and for them this will be nothing new, but I hope to add a few twists and turns even they weren’t expecting.
The Eight Guiding Principles of IMC
I am a long-time student of Don Schultz (interview with Don), professor emeritus-in-service of integrated marketing communications, Northwestern University, as well as Larry Percy, Clarke Caywood, Robert Lauterborn, Philip Kotler and all the other folks who worked diligently to put customers at the forefront of our marketing and communications. While times have changed since they first wrote and educated on IMC, the need to prove value to management has not. These are the eight guiding principles from Don Schultz’s book “IMC: The Next Generation. Five Steps for Delivering Value and Measuring Returns Using Marketing Communications.(2003)”
- Principle 1: Become a Customer-Centric Organization
- Principle 2: Use Outside-in Planning
- Principle 3: Focus on the Total Customer Experience
- Principle 4: Align Consumer Goals with Corporate Objectives
- Principle 5: Set Customer Behavior Objectives
- Principle 6: Treat Customers as Assets
- Principle 7: Streamline Functional Activities
- Principle 8: Converge Marcom Activites
These principles don’t seem earth-shattering, do they? Then why is it many organizations today still struggle? Helping organizations make these principles a normal course of their business operations (and more!) will be the focus here and I hope you’ll come along for the ride!






