By Dr. Ronald A. Nykiel, CHA, CHE
Chairman and Chief Executive Officer,
World Institute Associates
Conrad N. Hilton Distinguished
Chair, University of Houston, Houston, TX
1997
A number of years ago I was asked to write an article on ten trends likely to impact the marketplace in the next decade. Nine of the ten turned out to be fairly accurate predictions. One turned out to be a non-event shortly after the article was published. I had praised the formation of Allegis, the name/concept selected of unifying United Airlines, Westin Hotels and Hertz into the seamless travel company of the future. The article appeared in May and Allegis disappeared in July. I learned two things--that the future is not as predictable as it can seem and to cast a cautious eye on those trends that are so widely applauded as the wave of the future. Given that caveat, marketing in the next millennium is likely to take on a whole new meaning as the macro forces of globalization, technology, and re-engineered behavior redefine the customer, their needs and the purchasing and delivery processes.
Diverse Needs and Diverse Solutions
Globilization will change your customer base forever. Customers needs, wants, and the languages in which they express themselves will be diverse and as varied as the flows of global traffic. To successfully servicing this new global customer, you will require an understanding of both their needs and their individual perspectives. Marketing in the 21st century will focus on providing product and service offerings that have universal appeal while respecting individual perspectives. There will be a need to establish real links with such a diverse customer base-- including an employee mix as diverse our customers, an ability to appreciate and accommodate different cultural perspectives and beliefs, and the need to train management and staff to understand and relate to these customers (Nykiel, 1997).
When it comes to communicating with your customer, no one is more important than your “point-of-encounter” employees (Nykiel, 1992). The more your employees and customers can relate to each other at a point-of-encounter, the more likely you are able to meet their needs. Relating requires much more than a common language—it also requires a respect for various cultures and outlooks. The more you are in tune with your customer, the more likely you will be able to meet their needs while providing a quality service experience. Remember, regardless of what we think, quality is what the customer perceives (Nykiel, 1992). So marketing in the new millennium still begins with understanding your customers needs and perspectives. The difference is that the customer base is now much more diverse and the pace of change much more rapid.
The Key Is Gone. . . The Card Is Going. . . And The Touch Is Coming
Just as globalization will change the customer base, technology will change the way in which we market and service the customer. Consumers in the new millennium will flock to those companies whose products will offer new conveniences while saving time and reducing stress (Nykiel, 1996). Convenience will be a key focal point in relation to the delivery of a product or a service, as well as the actual purchase and transaction process. Just as a simple hotel key evolved into a card, driven by cost, security and a variety of other factors, it too will evolve into a smart card. And perhaps this will give way to something even more futuristic—the “touch.” Many years ago the smart card was predicted–a card which gives access to your room. Technology, customer demand, and a retrofitting cost offset by swings in labor, along with access to more customer information will make the smart card a reality. Eventually, it will be enhanced to provide access to your rental car, airline flight, etc. However, wait a few more years and the smart card will give way to the “touch.” The “touch” will eventually eliminate all keys as well as all cards. It will be universally accepted as the most convenient and secure means of access while enabling the classification of individual customer data. Driven by the macro trend of “peacetime war” (Nykiel, 1996), crime, and terrorism, it will eliminate countless examples of personal and financial disaster due to fraudulent smart cards. The “touch”, inherently unique to each individual, will provide the utmost in convenience—the simple touch of a the thumb on a print reader located at doors, gates and even on your car’s dashboard! Imagine the possibility of “touch” miles--with every five thumb prints you receive a free weekend’s stay or even 5,000 bonus miles. Of course, cash will no longer be the standard medium of exchange--miles will have become the global currency (Nykiel, 2010).
“Touch and go” marketing concepts will extend beyond the distribution of products or services even further--to reach the consumer at home, at work or in-between. The television and computer screen will be replaced with a communications module where simply touching the screen provides you instant access to your product, service and travel options, all displayed in a vivid, multi-dimensional, and sensual manner. Imagine experiencing the feel of a tropical resort, or the actual smell (through smell simulators) of the aroma of Colombian coffee. Touch the communications module again and you are “printed”--that is, booked, confirmed, and reserved for the next millennium (Nykiel, 2020). Once registered with the “Registry of Prints” (Randell A. Smith, are you listening?) your customer profile and preferences are simultaneously up-dated and disseminated to all your preferred providers.
Another concept of the “touch and go” system is the automated services menu. Gone will be the days where bills are paid or expense reports submitted. Rather, a simple double touch takes care of all the necessary brainwork. Please note, should you desire to pad your expense report or delete certain questionable expenses you may do so by swiping your thumb at a 45 degree angle during the second touch!
Now that you think this is totally ridiculous, I would like to remind you that the reaction you are having is really quite normal. Marshall Ferdinand Foch, French World War I Commander, once declared that that “Airplanes are interesting toys but of no military value” . On February 25, 1967, Dr. Lee Deforest, a father of the radio predicted that “Man will never reach the moon regardless of all future scientific advances”. And, who can forget, Kenneth Olsen, founder of Digital Equipment Corp., 1977, in his proclaimed words of wisdom, “There is no reason for any individual to have a computer in their home”.
The “Ins” and “Outs” For Marketing
In The Millennium
Here are just a quick glimpse of what I’m predicting will be in and
out for the new millennium:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodbye McCarthy… So Long Lauterborne…And Hello Nykiel
For years marketing students have been memorizing the renowned 4 ”P’s”: product, price, place and promotion (Kotler, 1986). Then, within the past decade, and the growth in the services sector, came the 4 “C’s”: consumer needs, cost to satisfy the needs, convenience to buy and communications (Schultz, Tannenbaum & Lauterborne, 1993). As we approach the new millennium, I’d like to suggest there are now five new “P’s” of marketing. The first is preparation. It will be crucial to thoroughly research your ever changing customer base. Globalization and technology will be constantly influencing the diversity and expectations of the your customer. If your marketing message is based on outdated information, your customers will move on. The bottom line is research or regret in the next millennium.
Second is perception. Your marketing message will have to create the perception that your company’s products and services are in tune with the diverse needs of the marketplace. If your message isn’t conveying the belief that your product offering is “with it,” the marketplace will do without it.
Third is power thrusts. Simply defined, power thrusts means your marketing expenditures and messages will need to flow in waves. The highly competitive global market will become overcrowded with both big and small brands fighting for attention. Combine this reality with the ever changing consumer and it’s easy to see that your messages will need to arrive in waves--to generate response and to break over the other messages. Marketers will have to be cautious not to ride one wave for too long or end up being be wiped out by a competitor who catches the wave you just missed. Remember to keep the cycle going--generate, respond, and generate again.
Fourth is proclamations. Communicate to your customers that you are the superior choice. Proclaim your positioning as the product or service that best serves their needs. The need to be with the company that “best meets my needs” will carry more weight in the 21st century than the company with the historic claim of being number one.
Fifth is people. The ultimate marketing battle will still be won by people. To succeed in the next millennium, your employees will need to reflect the mix of your customer base. This means you must not only understand diversity, you must practice it at the “point-of-encounter” (Nykiel, 1992) in the 21st century. Ultimately, this is where the marketing war will be won. There are no second chances. Hire and train for the global environment—you’re already in it.
The Advertising World Will Redo It All
As difficult as it may be for marketers to give up the theories of the past, it may be even more difficult to realize those tried and true words, quality and value, may become obsolete in the vocabulary of the consumer in the next millennium. This is good news for advertising agencies—the world will need to redo everything! To the victims of the next round of re-engineering—look to the field of writing, copy and programming—you can’t miss!
The diverse needs of the global market will not be focused on one definition or one perception of quality and value. Rather, the focus will be on providing an experience which meets every individual consumers needs—those which will be as diverse as the globe. New advertising messages will need to relate to the new world of consumers. Delivery of these messages will increasingly become electronic and personal.
Survival Of The Fastest
Just as quality, value and customer loyalty will be redefined, so too will be the ground rules for marketing in the 21st century. Granted, some concepts, such as branding, will remain important. In fact, branding will become increasingly significant as consumers seek to sort through the plethora of new market entrants throughout the world. Brands that are clearly identified, with distinct positioning, and that are consistent in multiple markets will emerge as the winners. Developing a global brand image with universal appeal will be another key to successful marketing.
Under the new paradigm for marketing everything will take on new meaning. For example, urgent or critical will be replaced with immediacy and act now. Customers will demand immediate action, while loyalty will be replaced with “you’ve got one chance to keep me as a customer”. Brand loyalty will be achieved through performance—this time and every time. Throughout the 21st century, marketers will need to be proactive and react immediately just to survive. Fundamental change must occur on demand. Understanding multi-functional marketing tools and selecting the correct ones will be critical to winning. There will be little room for mistakes or defects, and few second chances. Individual marketing superstars will be replaced by all-star teams (and teamwork) whose focus will shift from being “just good enough to win” to “continually improving so as to never lose”. Most important of all, the ability to change, to adapt to the new, and to understand the diverse, will form the basis for success in the millennium (Nykiel, 1997).
The Crystal Ball For Marketing In Tomorrowland
Kotler, Philip (Ed.) (1986). Principles of Marketing. Englewood Cliffs, N.J.: Prentice Hall.
Nykiel, R.A. (1992). Keeping Customers in Good Times and Bad. Stanford, CT.: Longmeadow Press:
Nykiel, R.A. (1996). Ten trends to 2000. Leaders,
19 (1), 46.
Nykiel, R.A. (Ed.) (1997). Marketing
in the Hospitality Industry. East Lansing,
MI: Educational Institute of the AH&MA.
Schultz, D.E., Tannenbaum, S.I. and Lauterborn, Robert F. (1993). Integrated Marketing Communications. Lincolnwood, Ill.: NTL Business Books.
Stephenson, K. & Krebs, V. (1993). A more accurate way to measure diversity. In B. Abramms & G.F. Simons (Ed.), The Cultural Diversity Sourcebook (pp. 247-257). Amherst, MA: ODT.
Cloudy Days in Tomorrowland. (1997, January 27). Newsweek, CXXIX, (4), 86.