New Consumer Marketing

Following ten years as a marketing practitioner, Susan Baker earned her PhD in management sciences from Cranfield School of Management where she now specialises in consumer marketing. She founded and directs the New Marketing Research Group, which works together with a consortium of client organizations to understand the impact on marketing of the New Consumer (www.new-marketing.org). She is a frequent keynote speaker at marketing and management conferences and can be contacted at s.l.baker@cranfield.ac.uk.

• Foreword ixAcknowledgements xiAbout the Author xiiiIntroduction 1Meeting the Challenges 3Overview of the Book 61 Earthquake! 9Marketing in Crisis 10The Evolution of Marketing 12The Rise of Relationship Marketing 14The Test of CRM 15Changes in the Macro-Marketing Environment 18Implications for Consumer Marketing 21Summary Points 222 The New Consumer 23Consumption in Transformation 23Expansion of the Consumer Concept 24Defence of Consumer Rights 25Consumption Management in Question 27A New Kind of Consumer 27New Consumers Are Exercised By Time 28New Consumers Lead Complex Lives 30New Consumers Seek Experiences 31New Consumers Are Marketing Literate and Highly Demanding 31New Consumers Are IT Enabled 32Implications for Consumer Marketing 33Summary Points 343 Concerns of Brand Owners and Retailers 37Key Issues for Brand Owners 37The Force of Globalization 38The Debate about the Future of Manufacturing 39The Growth in Retailer Power 40The Need to Balance Cost Reduction and Sales Growth 41The Search for Innovation 42The Retailers’ Response 42Trading across Multiple Locations 43Trading across Multiple Formats 44Use of Multiple Channels 44Editing Choice in Store 44Enhancing Retail Branding 45Developing Multinational Operations 45Pursuing Customer Loyalty 45Implications for Consumer Marketing 48Summary Points 484 New Consumer Marketing 51New Consumer Marketing – What Is it? 51A Response to the New Consumer 52A Response to the Interactive Marketplace 53A Response to Ineffective Consumption Management 54New Consumer Marketing – What Does it Mean? 55Adopting Value-Centricity 55Applying Science 57Breaking out of Binary Thinking 58New Consumer Marketing – Who Is Involved? 60Implications for Consumer Marketing 61Summary Points 615 A Model of New Consumer Marketing 63To Recap 63Key Challenges Facing New Consumer Marketing 65Addressing the Concerns of Brand Owners and Retailers 65Embracing the New Consumer 66Developing Real Consumer Responsiveness 66Lifting Marketing Out of its Crisis 67The New Consumer Marketing Model 676 Value Definition 73The Role of Insight in Value Definition 74Identifying the Factors that Enhance, Maintain and Destroy Value 74Understanding the Meaning of the Value Factors 78The Role of Traditional Market Research in Value Definition 79Using Quantitative Research 80Using Qualitative Research 82Need-States Analysis 86The Role of Non-Traditional Market Sensing in Value Definition 88Using Database Systems 88Using CRM Systems 89Using Front-line Staff 91The Role of Segmentation in Value Definition 91Creating a Segmentation Analysis 93The Role of Insight Generators in Value Definition 97Summary Points 997 Value Creation 101The Role of Innovation in Value Creation 102Consumers as Innovators 104Innovation through Process or People? 106Innovation as a Dynamic Capability 107A Radical Approach to Innovation 109The Role of New Product Development in Value Creation 111The Role of Branding in Value Creation 113Building Successful Brands 116Emerging Brand Issues 119The Role of Positioning in Value Creation 120Drawing out the Emotional Message 121The Positioning Process 123The Role of Price in Value Creation 125The Evaluation of Value 127Summary Points 1298 Value Delivery 131The Role of Agility in Value Delivery 131The Role of Media and Channels in Value Delivery 133Making the Most of Media Choices 136Making the Most of Channel Choices 139The Role of Service in Value Delivery 141Creating a Service Strategy 142Recruiting and Motivating Staff 143Empowering Employees to Live the Brand 146The Role of Technology Integration in Value Delivery 148The Role of the Supply Chain in Value Delivery 152Competing through the Supply Chain 153Consumer Responsiveness through Time Compression 154Summary Points 1599 Demand System Management 161The Role of Intuition in Demand System Management 163The Role of Culture and Structure in Demand System Management 165Culture 165Structure 168The Role of Leadership, Vision and Values in Demand System Management 170Leadership 170Vision 171Values 172The Role of Employees in Demand System Management 175The Role of Knowledge Management in Demand System Management 179The Role of Planning in Demand System Management 181The Role of Measurement in Demand System Management 185Summary Points 187Concluding Remarks 188Notes 189References 191Index 197

“…(a) compact text” (International Journal of Market Research, Vol.47, No.2, 2005)