Most important, it draws on the base of knowledge and experience that exists in the organization. It is marketing that is oriented toward creating rather than controlling a market it is based on developmental education, incremental improvement, and ongoing process rather than on simple market-share tactics, raw sales, and one-time events. These companies will practice “let’s figure out together whether and how color matters to your larger goal” marketing. In the 1990s, successful companies are becoming market driven, adapting their products to fit their customers’ strategies. These companies expressed a new willingness to change their product to fit customers’ requests-practicing the “tell us what color you want” school of marketing. These organizations focused their energies on changing customers’ minds to fit the product-practicing the “any color as long as it’s black” school of marketing.Īs technology developed and competition increased, some companies shifted their approach and became customer driven. Several decades ago, there were sales-driven companies. This represents the evolution of marketing to the market-driven company.
What they do care about is a company that is willing to adapt its products or services to fit their strategies. These new customers don’t know about the old rules, the old understandings, or the old ways of doing business-and they don’t care. And not only are the competitors new, bringing with them new products and new strategies, but the customers also are new: 90 % of the people who used a computer in 1990 were not using one in 1980.
Twenty years ago, there were fewer than 90 semiconductor companies today there are almost 300 in the United States alone. Twenty years ago, IBM had only 20 competitors today it faces more than 5,000, when you count any company that is in the “computer” business. To some marketers, the creation of almost unlimited customer choice represents a threat-particularly when choice is accompanied by new competitors. Then, in the mid-1980s, Procter & Gamble began to bring out a succession of new Tides: Unscented Tide and Liquid Tide in 1984, Tide with Bleach in 1988, and the concentrated Ultra Tide in 1990. For 38 years, one version of Tide served the entire market. In 1946, Procter & Gamble introduced the laundry detergent, the first ever. As venerable a brand as Tide illustrates this multiplication of brand variety. According to Gorman’s New Product News, which tracks new product introductions in these two consumer-products arenas, between 19 the number of new products grew by an astonishing 60 % to an all-time annual high of 12,055. Take the world of drugstores and supermarkets. The technological promise of programmability has exploded into the reality of almost unlimited choice. More broadly, programmability is the new corporate capability to produce more and more varieties and choices for customers-even to offer each individual customer the chance to design and implement the “program” that will yield the precise product, service, or variety that is right for him or her. On the factory floor, programmability transforms the production operation, enabling one machine to produce a wide variety of models and products. In a computer chip, programmability means the capability to alter a command, so that one chip can perform a variety of prescribed functions and produce a variety of prescribed outcomes. The defining characteristic of this new technological push is programmability. Twenty years ago, there were fewer than 50,000 computers in use today more than 50,000 computers are purchased every day. In less than 20 years, the microprocessor has achieved a similar penetration. Seventy years after they were invented, fractional horsepower motors are in some 15 to 20 household products in the average American home today. Technology has moved into products, the workplace, and the marketplace with astonishing speed and thoroughness. So pervasive is technology today that it is virtually meaningless to make distinctions between technology and nontechnology businesses and industries: there are only technology companies. Marketing’s transformation is driven by the enormous power and ubiquitous spread of technology. As a result, we are witnessing the emergence of a new marketing paradigm-not a “do more” marketing that simply turns up the volume on the sales spiels of the past but a knowledge- and experience-based marketing that represents the once-and-for-all death of the salesman. Technology is transforming choice, and choice is transforming the marketplace.