CHANGING DYNAMICS OF MARKETING IN THE NEW “NOW ECONOMY”

We all agree that there is a “new economy” in place. In fact, this “new economy” has a name as some refer to this as “The Now Economy”. In such an economy, “good enough” is certainly not enough at all. Gone are the days where marketers could…control the message, own the brand, segment the markets quickly using several variables, “hear” the voice of the customer. Marketing tools need to provide reach across multiple channels, often at a single point in time so that customers can but the products with a thumb swipe and have these products on their doorstep within days, hours or even minutes. So, mastering the 5-S formula— speed (digital technologies and immediacy), service, selection, sociability, and solutions (powered by Internet of Things Technology to manage all kinds of daily activities)—becomes paramount. Moreover, now, consumers make their voice heard, push the marketers to become the caretakers of the brands. Consumers are more unpredictable and consume all kinds of media on their own terms. In the “Now Economy”, companies must create shared value. As the recent American Marketing Association puts it: “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and the society at large.”. So, value must be created for all parties involved in the stakeholder ecosystem. Companies like Walmart are now thinking of creating value for their suppliers as well instead of their old-fashioned ways of squeezing out value from them. This way of thinking has transformative effects on branding practices as well. Every brand needs to build more trust to do better its competitors. Stakeholder marketing provides a conduit to establishes that trust and keep it for the long term. Typical brand referents such as colors, logos, or strategic brand elements such as a company’s mission and vision statements do not matter as much as tying company values to the brand. In fact, recent studies show that authentically connecting with all stakeholders in your company ecosystems has a high likelihood to increase brand loyalty in the long run. Moreover, instead of just connecting so that a company can keep up with the adage: “your network is your net worth,” the company must first figure out, then embrace that it has one (or more) specific roles to play in its business networks. Finally, they must play this role well. With respect to developing new products, companies must accept that their products are probably a source of annoyance the consumers put up with to gain the benefit they seek. In this new economy, companies that ought to be successful in product innovation will be those that sharply focus on solving problems for people.

While theories and applications of relationship marketing were extremely helpful in understanding and serving the new economy of the early Internet era of the late 1990s, new theories and best practices must emerge for the Now Economy. As the former CEO of AMA clearly states “The majority of consumers abandon brands not because of the product, but because of the experience. Brands that implement intentional experience design enjoy nearly double the revenue growth of those that don’t. The strongest brands in today’s markets are experience-driven brands, not of storytelling- driven brands.” So, storytelling gives way to customer enjoyable and memorable experiences, which, in turn, puts tremendous pressure on the marketing teams of companies. In the Now Economy the roles of company employees change as well. Data companies, knowledge workers and the creative class are the driving force now. Nowadays, the creative (people who earn a living by using their minds in academia, business, healthcare, media, science and so forth) account more than a third of the American workforce. Companies must now be comfortable hiring people that would be working anytime, anywhere. Customer value may have many meanings for different individuals. This becomes more prominent as a major segment “The Millenials” are not a homogenous group which can be easily described based on demographics, psychographics, and usage behavior. Value, as business term, lacking clear structure, might mean quality, service and relationship in different points in time seems to have now gravitated towards “experiences” that are to last a life time. The marketers have no choice, but to adapt to this change.