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Current Marketing Issues Seminar

Current Marketing Issues Seminar. BA635 Dr. Ed Forrest. TONIGHT:. Delineate the Organizing Paradigm of this Course. Waves of Change Spheres of Society Defining Dimensions & Operating Principles. The Essence of Marketing. Anything/Everything one does to facilitate exchange. Buyer.

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Current Marketing Issues Seminar

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  1. Current Marketing Issues Seminar BA635Dr. Ed Forrest

  2. TONIGHT: Delineate the Organizing Paradigm of this Course • Waves of Change • Spheres of Society • Defining Dimensions & Operating Principles

  3. The Essence of Marketing Anything/Everything one does to facilitate exchange Buyer Seller

  4. Whatever impacts Why-What-Where-When-HowExchange occurs… is (or becomes) an Issue… ERGO

  5. Society Marketing Issuesin Perspective Marketing - part ofBusiness &Business - part ofSociety “Societal Change” creates “issues” for Business… which creates “issues” for Marketing Marketing Business

  6. Thus- in order to identify- anticipate- understand Marketing Issues in particular One needs to identify-anticipate-understand • Societal Change • in general

  7. Society Defined: A group of humans broadly distinguished by: • mutual interests, • participation in characteristicrelationships, • shared institutions, & • a commonculture

  8. THUS- …become marketing issues In the final analysis marketing strategy is formulated to address… Patterns of/changes to: human interests, relationships, institutions & culture… Hence- our search for marketing issues begins w/ examination of…

  9. Course Organizing Paradigm “… begin in a more or less inductive or empirical fashion by identifying what all civilizations have in common” Alvin Toffler, Previews & Premises (William Morrow & Co. New York, 1983) Page197

  10. All civilizations have: • an energysystem… • a method of producinggoods & services… • a system for distributing those goods & services… Energy, production & distribution are all … tied together… to form a TechnoSphere

  11. “All societies have some sort of communication infrastructure– an InfoSphere

  12. Every civilization has a SocioSphere consisting of interrelated social institutions, associations, reference & affinity groups

  13. ‘PsychoSphere’= intimate relationships, subjectivity-personality • All societies operate within a BioSphere & have a PowerSphere-- authority allocated thru formal & informal political institutions (The Third Wave, pg.198)

  14. POWER SOCIO PSYCHO TECHNO BIO INFO “Put together these spheres encompass most all that goes on in any civilization or society”

  15. Our Seminar: • … will explore each sphere • ascertain what changes are afoot and– as a consequence– • delineate what “marketing” issues have arisen/will arise…

  16. SOCIO PSYCHO BIO INFO TECHNO When change concurrently impacts & ripples thru & across all Spheres… You have a paradigm shift in the principles & processes that define a civilization…

  17. Social Wave Theory: When all Spheres totally transformed a new Civilizational-Wave rolls over preceding waves

  18. "In a time of change, it is learners who inherit the future. --The learned find themselves well equipped to live in a world that no longer exists." — Eric Hoffer

  19. to knowledge based economy to primary focus on information gathering, analysis & marketing As early as 1969Peter Drucker foresaw an “age of Discontinuity” w/ upcoming shifts: From manufacturing based economy From primary focus on engineering & manufacturing Drucker, Peter F. The Age of Discontinuity. Harper & Row Publishers, Inc: New York, 1969.

  20. In 1988 Drucker wrote“The Coming of the New Organization” • “by 2008 successful organizations “will be knowledge-based • … composed largely of specialists who direct … their own performance through organized feedback… from colleagues, customers & headquarters.”

  21. In early ’70’sDaniel Bell foresaw coming post-industrial society-- that would: • Shift from a goods-producing to service economy • Be dominated by professional & technical class • Be knowledge driven • & Future oriented "Coming of Post-Industrial Society: A Venture in Social Forecasting; 1973

  22. 1980- Toffler’s 3rd Wave • First Wave ~8000BC • Hunter Gatherer To Agricultural Age • Second Wave ~1750’s • Agricultural Age To Industrial Age • Third Wave ~1950’s • Industrial Age To Information Age

  23. Addressed transition from heavy industry to new tech- economy

  24. Computers emptied factories • & gave us paper-work in offices • As Machines emptied countryside... • & gave us factory-work in cities

  25. 1st Wave 2nd Wave 3rd Wave KEY COMMODITY • CAPITAL • Like land- a zero sum commodity* • Necessary for control of Production-Labor & Raw materials • LAND • Basis of economy • Life organized • ‘round village • Economy • Decentralized • Every village produce most of its necessities • Information • Uniquely different from previous key commodities

  26. What’s so different about information? • Expandable- infinity expansive commodity • Transportable-geography no longer matters • Compressible-can be summarized, encoded • *Sharable-Value increases when shared

  27. TechnoSphere-Energy • 1st Wave: MANIMAL winches, wedges, catapults, winepresses, levers & hoists –amplified by man & animals • 2nd Wave -Electromechanical – “w/ moving parts, belts, bearings & bolts– clacking & ratcheting along”

  28. Initial Electro = Hydro & Direct Current necessitated Local Sourcing Alternating allowed Central Utilities w/ Long-D Dist.

  29. Info-Processing, Applications & Storage 2010 2020 2030

  30. New Technologies powered by New Energy sources enabled mass production… Adam Smith -1776-w/ the pin lesson & concept of“man-ufacturing” Applied in 1908 by Ford in production of Model T Production • The Pin: • One craftsman = ~20 pins/day • Break into 18 steps- • 10 workers-each 1-2 specialized tasks = 4,800 pins/day

  31. The Model TRequires 7,882 tasks requiring: “949 strong men 3,338 ordinary men 670 legless 2,637 one legged 2 armless 715 one armed 10 blind men”* Division of Labor • Characterized by: • Hi energy input • Hi waste pollution • Low skill • Repetitive work • Standardized goods • Centralized control *autobiography

  32. Production rate volatility Sales rate volatility 2ND WAVE DISTRIBUTION

  33. Supply chain management substitutes information for inventory

  34. % 100 Goods & Services Sold ; Distributed Online Brick & Mortar Economy 75 % U.S. GDP 50 25 0 ’72 ’78 ’84 ’90 ’96 ’02 ’08 Source: Marvin Zonis & Associates

  35. The INFOSPHERE 1st Wave 2nd Wave 3rd Wave • Interpersonal • Face to face • 1:1 • Augmented by: • Listening post • Distance Runner • Town Crier • Pigeon • Pony Express • Mass • Mediated • 1:Many • Newspaper • Magazine • Film • Radio • TV • Interactive • Virtual • Any 1:Every 1 • Networking: many-to-many • Internet • WiFi • Cellular • Satellite

  36. Media EvolutionFrom Mass Mind to Blip Culture “Instead the masses receiving the same message- smaller fragmented groups/individuals send & receive their own thoughts & images” …(the BLOG??) “On a personal level .. besieged by blips… Info-Blips that are contradictory & unrelated” Toffler- 1980

  37. Dramatic Shift in Marketing Reality

  38. The SocioSphere BusinessInd./Partn. Corp.Conglom

  39. Relationships W/ Divorce of Production & Consumption— • Relationships became set of transactions • Society not based on kinship, friendship, tribal allegiances- but on contracts • 2nd wave emergence of the Company Man

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