December 29, 2014

Features

What Will Influence Marketing in 2015?

25 pundits predict the Next Big Thing on the marketing horizon.

http://www.dmnews.com/what-will-influence-marketing-in-2015/article/389450/2/

V. Kumar, Executive Director of the Center for Excellence in Brand & Customer Management, Georgia State University and Head, Marketing Science to Marketing Practice Initiative, INFORMS Society for Marketing Science

I foresee the marketing function transforming into a more crucial role within the organization by becoming an integral part of the organizational decision-making framework. In other words, a tight-knit integration of marketing activities with the other business functions can be expected. This will create unique opportunities for marketers wherein marketing campaigns and strategies will now have to consider the interface of other business functions, and not just the marketing function. Further, interdependencies with other factors such as accountability, investment decisions, technology needs, and operational guidance will come to the fore as companies will begin to realize the power of marketing and its data-oriented analytical capabilities.

Additionally, requirements from the corporate board and shareholders regarding accounting for marketing actions and how they improve the bottom line will be felt more strongly by marketers. Specifically, the expectation to demonstrate the value added by the marketing function, and its efficiency and effectiveness will come to the fore. This will reinforce the importance of collecting and analyzing Big Data that will help in justifying marketing actions.

Externally, changes in media usage patterns will impact marketing. With consumers spending more time on social media and interactive media, companies will reassess their overall strategy and resource allocation across the channels. This will have a strong impact on their media budgets that are designed to rapidly promote their brand through viral content and consumer engagement efforts. More companies will be keen on collecting data on the impact, reach, and progress of a product/service to align their offerings with customer behavior.

I think the product-centric approach to marketing (i.e., selling products) will largely be replaced by the customer-centric approach to marketing (i.e., serving customers). While the product-centric approach focuses on making and selling superior products, the customer-centric approach focuses on the customer's needs and wants. Already many companies such as Apple, Wells Fargo, and Harrah's have changed their focus to the customer. This approach is characterized by considering customers as sources of value, building and enhancing customer equity, and realigning resources centered on customers. This is also supplemented with a change in the organizational-level philosophy of doing business, realignment of organizational roles, and the integration of different functions. Such an approach will enable companies to improve their bottom line by implementing customer-focused campaigns directed at increasing purchases, referrals, customer influence on the social media, and feedback to improve offerings.