Marketing Evolution + Revolution –
the Future Marketing Environment
The New Consumer: From
Prosumption and Downshifting to
Neuromarketing and Particle Marketing
Professor Luiz Moutinho
Foundation Chair of Marketing
School of Business and Management
University of Glasgow, Scotland
How will marketing developments
affect the New Society ?
Neo-Marketing and Consumer
Behaviour in a Changing Marketplace:
Seeing the Unseen . . .
Professor Luiz Moutinho
The greatest challenge to
management in the next decade
will be to change fast enough to
keep pace with new technology,
new markets and new values.
Either we take hold of the future
or the future will take hold of us.
Professor Luiz Moutinho
The Need for Change
SATURATION The Changing Market
GLOBALISATION
The Changing Competition
FRAGMENTATION
The Changing Consumer
PRESSURES FOR
MARKETING
CHANGE
DOWNSIZING
The Changing Organisation
Professor Luiz Moutinho
The Environment is changing . . .
Technology is transforming what companies do, how
they do it, and how they communicate their offer
The power of information networks
Distributors are becoming new “virtual manufacturers”
Dramatic changes in consumers and media
We are rapidly becoming an information intense
society and entering the digital era and realm of virtual
marketspace
Instant communication – epidemic chip
Professor Luiz Moutinho
The
world and the business environment can change
faster than most managers can make decisions
Requires the ability to operate with rapid decision
cycles
Agility and time-based competition
Companies will become increasingly dependent
upon the global market to achieve best-in-class
services and minimise costs. The backlash against
offshore outsourcing will increase as it becomes a
political focus area
The companies using poor quality outsource firms
get back marks for customer service as their business
declines
Professor Luiz Moutinho
Marketing Innovation - Trends
Marketing Environment
From virtual manufacturers to the feminisation of markets
Marketing Organisation
From process-based marketing management to synoptic
marketing
Consumer Behaviour
From voluntary simplicity to prosumption
Organisational Buying Behaviour
From agile and fractal factories to the new “manufacturing
plants” of the world (China and India)
Marketing Research
From virtual reality (VR) marketing research to digital
marketing research
Professor Luiz Moutinho
Marketing Innovation - Trends
Segmentation, Targeting and Positioning
From particle marketing and cybersegmentation to modal
segmentation
Product Policy
From product/service architectures to “smart” packaging
Branding
From brand ubiquity to no branding
New Product Development
From very short, non-sequential and concurrent NPD to
computerised planogramming
Pricing
From target costing to one-to-one pricing
Integrated Marketing Communication
From place-based advertising to brand velocity
Professor Luiz Moutinho
Marketing Innovation - Trends
Sales Management (IMC)
From value-balanced selling time-based competitive selling
and sales automation tools to sales without selling
Distribution Management
From efficient consumer response (ECR) to diagonal
integration
Strategic Thinking in Marketing
From a new competitive structure: networks of companies
to bidding farewell to strategy based on old 4 P’s
Marketing Planning and Programming
From the focus on marketing productivity to product fact
books (PFB)
International/Global Marketing
From Glocal to Global individualism
Professor Luiz Moutinho
Companies have spent
the best part of the past
decade re-engineering
business processes . . . . .
but they have ignored
customers’ processes !
Professor Luiz Moutinho
Setting the Scene
Businesses
are increasingly
driven by consumer pressure !
Consumers have never been
totally powerless, but the balance
of power is tilting in their favour and
will continue to do so.
Professor Luiz Moutinho

Marketing lives and breathes two core functions:
matching supply to demand, and connecting
buyers and sellers as efficiently and effectively
as possible. Both these functions are critically
dependent on consumer understanding

Customer centricity

The creation of the unique customer value
proposition – customer bonding as the
foundation of economic value creation is
paramount !

CUSTOMER EQUITY
Professor Luiz Moutinho
New Marketing, New Thinking
Customer
focus has become a cliché among
marketing departments keen to win competitive
edge. But it deserves to be taken more
seriously, as it disguises a paradigm shift from
share of brand to share of customer.
Intelligent and integrated marketing and
management.
An “Intelligent Dialogue” with customers !
BRAIN to BRAIN – shared emotion
Professor Luiz Moutinho
How
many opportunities are being missed because
old-fashioned marketers still assume they know
everything there is to know about knowing their
customers?
The “real-time” organisation strives to be available to
its customers “all the time” and its marketers must
expand their toolkit of sensors . . .
This is not just abstract theory. Success is down to a
new model: to operate on a sense and respond basis.
One of the main sources of ideas for new products and
services is sensing customers’ needs in “real time”.
Similarly, the whole idea of partnership sourcing or
virtual integration is an application of the
sense/response model.
Professor Luiz Moutinho
The
idea is that consumers’ desires
should not only influence our our
business decisions, they should direct our
business operations !
A new
type of operation is turning “the
supply chain” into a demand value chain,
by reversing the flow of marketing from
“Company to Customer” to “Customer to
Company”
Professor Luiz Moutinho
NEW SOCIOQUAKE
NEW SOCIAL VALUES
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Cocooning
Fantasy adventure
Small indulgencies
Egonomics
The Vigilante Consumer
99 Lives
Icon toppling
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SOS
Possible deconsumption
Home is hot
Down-ageing
Anchoring
Mancipation
Clanning
Evelution
Professor Luiz Moutinho
The New Consumer (1)
Hard
on Hard, Soft on Soft
Parity
markets and smaller zones of tolerance.
Organised,
in control and an “intelligent agent”. Consumers
get more power.
Voluntary
simplicity. Downshifting.
Satisfaction?
Ecstasy? Limen “Relationship” ? …. No Fuss !
A
spirit of sophistication and realism of the commercial
world.
Contingency
Customer
Buzz
mentality.
Contempt.
networks – Groups of Reference
Professor Luiz Moutinho
AFFLUENZA
Increasing
signs that a shift away from
a work-obsessed lifestyle is becoming a
significant trend.
Voluntary simplicity: towards a way of
life that is outwardly simple, inwardly
rich.
. . . . . Your money or your life !
Professor Luiz Moutinho
The New Consumer (2)
The
Why generation
Prosumption and prosumers
Consciousness paradigm
Aware of product parity.
Demanding on “value”. Knows
what is behind the brand . . .
Professor Luiz Moutinho
Prosumption
(Co-creation)
Those consumers who “buy” the marketing
may well go a step forward, and become
“PROSUMERS” - people who actively and
deliberately take part in the process of
design, shaping or even producing a
product/service, knowing it is “for them”.
(e.g., customatix.com)
Professor Luiz Moutinho
Consumer Behaviour Trends
Quality
rather than quantity
Consumers do not want more of
the same, but different and better
From matter to mind
Professor Luiz Moutinho
Increasingly,
products and
services are consumed by
the mind as experiences !
Professor Luiz Moutinho
Consumer Behaviour – A new Look . . .
Higher
“Psychological Deficits”
Disconnecting and exit customers
Here and now !
Consumers are increasingly “time
and effort starved”
Virtual and E-shopping behaviour
Professor Luiz Moutinho
Markets
consist of human
beings not demographic sectors
Contingency
Marketing
Professor Luiz Moutinho
The challenge for marketers is to
understand consumers in a much
more complex environment rather
than a simple two or threedimensional customer model:
customers who will use different
devices for different transactions
at different times of the day ...
Professor Luiz Moutinho
On the surface, “consumer understanding”
seems like a Motherhood and Apple Pie
“good” that no one could sensibly object to.
In fact, our whole approach to consumer
understanding – how we go about achieving
it, for what purposes – masks a sellercentric, command and control ideology of
marketing. Successful companies are
breaking free of this ideology, and
reinventing marketing in the process.
Professor Luiz Moutinho
We
are only at the very beginning of a
new journey – from “brand building” and
“customer relationship management” to
“consumer agency” !
The
new type of understanding is driven
less by knowing about consumers and
more by understanding with them !
Professor Luiz Moutinho
Many actions of contemporary consumer
marketing are not focused on consumers’
needs . . .
They are focused on the needs of the
seller, how to change buyers’ attitudes
and behaviours to suit the seller’s brand !
Professor Luiz Moutinho
Missing
the notion of VALUE
VALUE GAPS
Need to get the balance right !
Enlightened marketers should collaborate with
consumers to build a dialogue and exchange process
that creates value for both parties . . .
FAIRER EXCHANGES
-
FAIRER MARKETING
CS

MK
BOI (Best of Individual) values
Integrity (e.g. do we sell other
people’s products if they are
better?)
 Empathy
 Transformation (doing it better)
 Passion

Companies
set up to deliver “value from our
operations” are not designed to deliver consumers’
“value in my life”.
Entails
searching for and sourcing best value for
genuinely customised and personalised service for
solutions designed to improve personal productivity and
emotional authenticity
Helping
individuals manage aspects of their lives
better (“solution assembly”) and helping individuals
reaching important personal goals (“Passion
Partnership”)
Marketers
can get too
wrapped up in the science of
marketing and its techniques
and forget about the
customer . . .
Professor Luiz Moutinho
Hard-Edged Marketing
What’s
going on inside the
customer head?
A new mind set
NeuroMarketing
–New connections?
–How to create and maintain an
emotional relationship with customers?
Professor Luiz Moutinho
. . . From solicited information to
volunteered
. . . The challenge for an organisation
is to move to a situation where the
customer starts buying from you rather
than being sold to . . . !
Professor Luiz Moutinho
New Leading Indicators for CS
Processability
Multidimensionality
Process-Based
Management – derived
Customer
SATISFACTION
Measurability
Detailability
. . . and
Non-Artificiality
TRUE
LONG-TERM
SUSTAINABLE PREFERENCE
(L-TSP)
!

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The death of corporate loyalty?
Companies should no longer
expect loyalty: they should
accept the need to attract and
addict people on a continuous
basis !
Trends in MK DSS
Environmental
Scanning and Forecasting
Increased Market Intelligence
Global MISs (I.e, JIGSAW Project)
Data Fusion, Data Mining, Neurobiographic Clustering and Beyond …
Use of Live Data
External research Associates (ERAs)
Deontology Issues
Professor Luiz Moutinho
The rise of data-led marketing,
and the analytical and
experimental mind
 Data warehousing / data marts
 Software
Professor Luiz Moutinho
Companies are pursuing a new
way of using marketing
information to improve the
return-on-investment in
information and to gain a
competitive edge in marketing
effectiveness.
Professor Luiz Moutinho
Rather than review of a
multitude of individual facts,
the role of marketing research
evolved to manipulate data to
summarise the underlying
patterns.
Professor Luiz Moutinho
New Consumer Marketing Research
The aim is a consumer who thinks, “I
will invest my information (and time, and
attention as well as my money) with you
because you are good at using it for me,
on my behalf.” It makes marketing
research a service to the consumer. It
requires the company (and marketing) to
embrace a new role as consumer agent.

Professor Luiz Moutinho
Trends in Segmentation, Targeting and
Positioning (1)
From Mass, Anonymous, Aggregated and Sample
Data to Names, Individual and Specific !
In addition to segmenting the customers in the
marketplace, and designing campaigns for each
segment, marketers will be asked to go further
and, for each segment, provide a way to
personalise the campaign for each person in the
segment … the beginning of PARTICLE MARKETING.
Professor Luiz Moutinho
Trends in Segmentation, Targeting and
Positioning (2)
Syncographics
Motigraphics
Direct
Marketing Technology. Persona Technologies
Cybersegmentation. CLIP (A Classification of
Internet People) Segmography.
DBS (Direct Broadcasting Satellite Systems)
RFID (Radio Frequency Identification)
Particle marketing (Physics) and
Neurolinguistics (Genetics)
“Solutions” positioning vs Fuzzy Value
Propositions and/or confusion marketing
Professor Luiz Moutinho
Forget
traditional positioning and
brand-centric approaches to marketing.
We are now in the “Age of the Narrative”
where the biggest challenge facing
companies is how to tell, communicate
their story in the most compelling,
consistent and credible way possible –
both internally and externally!
Professor Luiz Moutinho
“COMPANIES NEED
FORESIGHT, NOT
HINDSIGHT” !
Professor Luiz Moutinho