Tool Box
Issue No. 9 - February/March 2003
Future Marketing
How business and technology trends will change the marketing landscape in 2003
by Dr David Corkindale
In this, the first article of the New Year let’s look ahead to some possible developments in 2003:
- What new thinking in marketing will emerge?
- What new products might come onto the scene? and
- What will happen to the Australian Institute of Marketing in SA?
New Thinking
My colleagues in the Marketing Science Centre have done some very interesting analyses looking at what is happening when brands, or companies, grow or decline. One of the clear findings is that big brands have a smaller proportion of their customer base that churns, compared with smaller ones. What they also found is that defection rates are pretty constant whether a brand is growing or declining.
What is also clear is that a growing brand, or company, acquires more new customers than a declining one. It is as though clients who defect from suppliers go into a 'pool' and then are captured by a new supplier; growing brands, or companies, are better at winning new customers.
It will surprise some people that differing defection rates are not the root cause of comparative growth or decline. The implication of this research is that—however hard you try to avoid it—you will probably get defections; 'loyalty' programs may be necessary, but are not sufficient. Being good at winning customers is just as important, if not more. Bring back the selling skills courses!
I believe that in the coming year the pendulum will start swinging back and gurus will start to re-emphasise customer acquisition over 'retention' and loyalty.
Some Trends - and new jargon
The trends towards UCommerce = ubiquitous; facilitated by MCommerce = mobile, and IMing = instant messaging, are said to be growing significantly.
Proponents claim that these facilities allow us to do more things in less time and we don't have to be in an office to do them. A patent has recently been granted for ICQ, the long-standing and popular instant mess...
