Thinking About Marketing

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17th January 2012 Marketing Strategy and Crisis

During turbulent economic periods marketers need to adapt their strategy and operations to
the change of the dynamic environment surrounding them, being that market changes or
consumer behaviour changes.
On this times consumers give more importance to the price/value perceptions of goods, the
priorities among product categories and purchasing pattern often change and most
importantly there is a greater demand for ditribuitor brand products. And in what concerns the
buying decision process we can note the extension in time and increased importance of the
information search phase and evaluation of alternatives. The same way there is also a shift in
the buying decision types, purchases that were once part of our routine become more
extensive in nature where high envolvement and deliberation period is mandatory.
Having as a reference the development strategies of Igor Ansoff we can suggest (using
Koksal and Ozgul's research 2007) that the market penetration strategy and product
development strategy have the most correlation with positive performance during crisis
periods.
This strategies are translated to the marketing strategy using growth drivers like: R&D
investment, product development, sales promotion and advertising.
It is also suggested that cutting the marketing budget or the communication budget during
crisis is not an efficient solution, and can bring lack of competitiviness in ther future.
Companies that mantained or increased their marketing expenses in this periods obtained as
good or better results than before the crisis, these results are reflected in increased market
share and net profit and most importantly in an increase of capacity and market position
during recovery.
In terms of operational strategy it is suggested that price is not the most important variable,
and agressive price reductions can bring consequences in terms of brand image and
competitive ability. The marketing-mix variables that have the more influence in this periods
are the product and communication. In the product variable the racionalization of product
categories in terms of depth must be weighted with the costs to mantain it and the alterations
in consumer behaviour, and in line with this the increase in distribuitor brand products
assumes the central role in this variable. It is also important a continous investment in R&D,
that might bring new products to respond to new needs or an improvement in processes or
materials that can reduce costs.
In what communication is concerned it is suggested that companies that were able to
increase their share of voice and by that were able to get closer to the consumer in a moment
that they value it the most, were also able to generate growth and increase market share. Of
the various communication tools the ones that were most relevant were : sales promotion,
advertising and public relations.
Diogo R Seborro
Publicado 17th January
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16th November 2011 Consciousness

In life nothing determines more success than consciousness, or the rational ability of self-
perception, where an individual is, what brought him there and what will take in the present
to reach where he wants to go.
Consciousness is likewise an indespensible condition in business and an extremely important

factor you have to dominate before making your marketing plan. This startegic decision must
"sail from the consciousness port", in order to be able to apply an effective SWOT analysis,
define objectives, strategies and tactics to operacionalize them, you must possess
organizational consciousness a destinctive knowledge of the company's movement in time.
Diogo R. Seborro
Publicado 16th November 2011 por Diogo Seborro
12th November 2011 Godin's Starfish and the Long Tail effect
This blog post by Seth Godin examplifies what I said in a previous post
[http://innermarketing.blogspot.com/2011/08/new-market-changes-part-i-long-tail.html] * about
the Long tail effect and the importance of the short-head. (see it here
[http://sethgodin.typepad.com/seths_blog/2011/11/the-starfish-and-the-long-tail-have-trouble-
getting-along.html] )
"The starfish and the long tail have trouble getting along
[http://sethgodin.typepad.com/seths_blog/2011/11/the-starfish-and-the-long-tail-have-trouble-getting-
along.html]
We've all heard the parable of the kid throwing back the starfish, even though there are a
million on the beach. "It makes a difference to that one!"
The Long Tail argues that if you can aggregate enough choices, people will make a choice
and you'll do fine. Netflix, superstores, eBay--these are all long tail businesses. They might
not sell that thing, but you can bet they're going to sell something.
Long tail businesses excel at selling anything, but they're not so good at selling one thing.
Which is fine, unless you're a starfish.
In a world of endless choice, it's mathematically obvious that something's going to get picked,
but you, you the creator, the marketer, the one with something at stake--you're not at all
concerned about something. You're concerned about you and your product.
If you're a starfish, then, don't sign up with the long tail guys. Build your own universe, your
own permission asset. Find a tribe, lead it, connect with it, become the short head, the one
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and only, the one that we'd miss if you were gone.
The long tail is for organizations that own warehouses. "
Search for uniqueness, if you hold a distinct positioning don't go with the flow and
market yourself with everyone, find and build your own space, grow it.
Diogo R. Seborro
Publicado 12th November 2011 por Diogo Seborro
8th September 2011 Marketing History : The Father of

Marketing
Who is the father of marketing, the man that started it all?
If you say Kotler, I am afraid you are wrong. The father of Marketing was an english potter by
the name of Josiah Wedgwood born in 1730, he would later become the grandfather of
Charles Darwin but that is another story.
He was the founder of the Wedgwood company bringing pottery to the industrialization era,
realizing his business could grow and improve significantly was the first step for marketing
strategy.
Wedgwood was a pionner in product and brand strategy, he understood the importance of
differentiation, innovative design and quality so he signed every piece of work he did, and
would even submit them to a rigorous quality examination, only perfect pieces went to the
store the others were destroyed.
He also mastered the premium effect of pricing and in 1763 after receiving an order from
Queen Charlotte wich he named "Queen's ware" his pieces were famous and desired by
almost every wealthy individual at the time including the russian empress Catherine that order
many services from the Wedgwood factory. Making them also quite expensive pieces.
Conscious of the communication effect this had, before sending the pieces to Russia he
would expose them in London in showrooms, another innovation. It is important to mentioned
that his salesforce were among the first to work based on commission.
The increase in orders and demand led Josiah to create one of the first assembly lines where
each worker was responsible for only a part of the process, he was also constantly seeking
ways to increase productivity by improving it.
Understanding his strenghts and weaknesses and more importantly the opportunities while
always keeping a competitive advantage, balancing the market forces, made the Wedgwood
pots the most famous and sought in Europe.
Another interesting breakthrough comes from the fact that his factory was built directly on the
Trent and Mersey Canal, with that he controlled the variable distribution and consequently the
whole chain of value. Wedgwood had total control from the product creation to the time it was
displayed in the stores.
We can now see that this Tema

manVisualizações
defined sixdinâmicas.
important Marketing
Com tecnologiavariables:
do Blogger.
- Product diffrentiation, and branding

- Quality Control
- Market Segmentation
- Premium Price
- Control over Distribution Channel
- Innovative Communication and sales techniques
Most importantly was Josiah Wedgwood's capability to understand and respond to a

changing environment, realising that his organization had to change accordingly.
Diogo R. Seborro
[http://upload.wikimedia.org/wikipedia/commons/thumb/3/3d/1780_Wedgewood_dish_%28UBC%29.jpg/
596px-1780_Wedgewood_dish_%28UBC%29.jpg]
Publicado 8th September 2011 por Diogo Seborro
3rd September 2011 Generalisation - A common error in

Neuromarketing
For everyone that has read Martin Lindstrom's buyology book, it is clear that the
amazing facts about neuromarketing there present are not scientifically based,
I'm not suggesting they are not true, but they lack proven scientific research and
publication - you are either are a beleiver or its just a waste of time.
This is exactly what it is exposed in an excellent blog, that I recommend to

everyone interested in neuromarketing - BrandEthics [http://brainethics.org/] .
There Thomas Zoega, a neuromarketing professor argues that there are a

number of books and neuromarketing propaganda that has not a solid base in
science and it is not backed up by publication. We should strap our minds to solid
ground and avoid the lures of popular neuromarketing.(Zoega, 2011)
There are number of books about neuromarketing that do not offer any type of
information about methods used in the study, results or analysis, or just simply
refer the use of brain sacanning through fMRI. Without a strong based study
supported by neuroscience and explicit methods and results subjected to
propper academic publication the information provided in this documents tends to
fall on the trap of generalisation - attributing results and consumer behaviour to
brain functions and images that might not necessarily reflect them.
For example in buyology Lindstrom suggests that gore images on cigarretes

packages actually act positively in the smoker's mind having the opposite effect
for what they have been created. Using a study where smokers submitted to an
fMRI while presented with gore images currently adopted to reppel them and new
users from smoking, these pictures actually increased their willingness to smoke
and acted like some sort of heuristic to the act of smoking, and that because
according to Lindstrom a part of the brain called nucleus accumbens was
activated when those images were shown, and that area of the brain relates to
reward, despite the patients stating they did not like what they were seeing.
In the other hand a study by Levita et al (2008) has shown that the same part of
the brain is activated during the tests is also activated for other reasons, namely
punishment feeling. We can see here that Lindstrom made a huge generalisation
and it does not necessarily correspond to the truth.
Actually it is true that the gore images in cigarretes do not work, because
naturally humans are programmed to ignore harmfull and gore images, we prefer
to look to something more positive and encouraging. It is usual for smokers to
hide their packages or just throw them away. These images actually reduce the
ability of capturing the information about the dangers to smoker's health and
ultimatly they are not able to relate to cigarretes in the mind of the consumer.
We have seen here how often generalisation is used when scientific background is
lacking, one must always question about what publications and what facts
support the theory, especially when studying Neuromarketing.
Diogo R. Seborro
Publicado 3rd September 2011 por Diogo Seborro
28th August 2011 Probably the best ad of 2011
Chrysler Eminem Super Bowl Com…
Why is it good ? :
Brilliantly directed commercial about the rise and fall of the motor city, this ad is
a direct appeal to emotions , deep emotions, like the sense of community, social
pride and common history, reaching an awerness level. The community feeling,
the generational aspect and national pride makes this ad so powerfull that we will
remind it for sure, especially if you're an american. The constant drama tone and
the use of a well known performer that shares that deep community bond just
makes it stronger to the mind of the prospect.
This ad is full of feelings, capable of breaking the emotional barrier and connect
instantly with a brand making it solid and socially protected. And that's a
powerfull effect.
Facts :
According to a well known traffic manager after this ad aired, brand

consideration for Chrysler has gone up 87%.
Consumer interest in the vehicle rose 463%.
Diogo R. Seborro
Feel Free to Comment!
Publicado 28th August

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Diogo Seborro
do Blogger.
18th August 2011 Collaborative Marketing : Participative,

Cultural and Creative
There is a well known influence of technology that enables connectivity and
interactivity of individuals and groups and promotes the exchange of messages
and opinions about products or brands in Marketing practice today.
This tecnhology represents an interesting realm for marketing managers and can
amplify their strategies in a way never before seen. This enables consumers and
individuals to participate directly in the company's marketing effort and
collaborate with it and others.
Declared as the age of Participation were people create news, ideas, and
entertainment as well as consume them. New Wave technology enables people to
turn from being consumers into prosumers.(Kotler, et al, 2010)
Notice the expressive value social media has nowadays where millions of blogs
are updated every day, log in to facebook to check their friends status or put up a
video on youtube showing a recent purchase. As this expressive value increases
so does the consumer hability to influence others and share their experiences.
Forget about spending millions on Tv ads, social media killed television, it's low-
cost and it is modeling the new market communications systems today. Many big
company's are already using it to research about their brand or product as well as
to improve their communication with the target audience.
It is Collaborative marketing because the empowerment of consumers makes

them capable of changing strategies and have a profound insight about your
brand performance, suggesting ideas and actively building your brand perception
and reputation. Marketers now have to learn how to work with the consumer side
by side, listen to them, and weighting their insights against marketing managent,
this can then in a more advanced phase transition to a co-creation of products or
services.

[http://2.bp.blogspot.com/-
Z4Hdy7k9cxU/Tb-tk9ZjnsI/AAAAAAAAAQs/yUdjMyzb3WU/s1600/Social-Media-News-04.jpg]
A new face of marketing today is its cultural feature it is according Kotler in

Marketing 3.0 the second building block (after participation) of marketing 3.0 it
adresses concerns and desires of global citizens. Companies trying to get an edge
with new marketing must work to and for their community and adress its issues.
This can be taken at a Global level, National or local level wherever your
costumers are and where your community is located. The hability to work side-
by-side with the consumer for a commun porpouse can make a difference in
success, perception and acceptance. New marketing adresses the spirit, there is
so much choice, you have to touch the consumer and appeal to it like never
before. Improving his environment and working with and for it can do just that.
The two trends above lead us to a more creative human being, and capable of
sharing that creativity like never before. This creative consumer now seeks new
experiences and ones that fit their different personality and reach their emotions.
In this over-crowded world of communication it is not an easy task to get notice
or find some meaning, everyone is expressing themselves and sometimes no one
feels like they are being heard, there is no meaning behind it. Supplying
meaning is the future value proposition in marketing. (Kotler, et al, 2010)
Companies must build an identity similar to the target reflecting its creative
values and spirit. Their proposition must offer some meaning and the experience
must go hand in hand with what the consumer needs. It's more about the
experience and meaning than the product itself, there are enough similar
products but the experience is unique.
So like creative people, companies should think about their self-actualization
beyond material objectives. (Kotler, et al, 2010). They must get in tune with why
their are in business and for who they are doing it for and reflect it in their
mission, vision and corporate values.
This new era of Marketing is very much influenced by changes in Consumer

Behaviour and attitude as well as technology. It is the prime of the consumer-
centric era where they became an active part and even equals with the marketing
manager capable of changing the course of marketing efforts.
Diogo R. Seborro
reference:
Kotler, Kartajaya,Setiawan, Marketing 3.0, Wiley. 2010
Feel free to comment below or follow us on Facebook

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Publicado 18th August 2011 por Diogo Seborro
16th August 2011 Consumer Behaviour : Heuristics Shortcuts

to the Mind
As humans we tend to simplify decisions and to shorten our decision making process. To do
this consumers often employ some decision rules that allows them to reduce the information
search about a product or brand, this takes the form of beliefs, experience or perception.
Take for example consumer X that makes the decision of buying product Y because he thinks
it has the best features and its brand gives him confidence, and thus ignoring any information
search about competitors or substitute products. This assumption served has a shortcut to
more extended information processing. (Solomon, 2002).
Especially in limited problem solving decisions, where the consumer is not as motivated to
search for information or to the evaluation of alternatives, they often use heuristics or this
cognitive mental shortcuts to support their decision and make it more efficient.
Word-of Mouth as the most proeminent and powerfull communication tool has a very
important role in heuristic formation, if a friend or any other group of influence has a bad
experience with a given product and communicates it to you, you tend in your mind to form an
heuristic accordingly.
Product Signals
One frequently used shortcut is the tendency to infer hidden dimensions of products from
observable attributes.(Solomon, 2002).
The visual attributes and aspect of the product act as a signal of quality or psychographic
dimension. Or when information is incomplete, judgements are often derived from events like

the time certain product takes to make or the process by wich it is manufactured, wich can be
a signal of quality and performance. Other signals include price, country of origin or brand.
Although consumer devalue covariation , and tend to persue their beliefs. People tend to see
what they are looking for.(Solomon, 2002).
Price-Quality Relationship
This is one of the most used market signals and market beleif, while novice consumers base
their decisions around this attribute only, expert consumers use it with informational value
especially for products that are known to have relative high price variations in the market like
clothes or electronics. When quality is established, widely accepted and regulated price
doesn't often come in the equation. In general the price-quality relationship is true, you tend
to get what you paid for, but that does not work in every situation.
Diogo R. Seborro
Reference:
Solomon, Consumer Behaviour, Prentice Hall. 2002
Feel free to Comment or visit our Facebook [https://www.facebook.com/pages/Inner-

Marketing/185627701457205] page.
14th August 2011 Consumer Behaviour : Accounting for

Human Irrationalities
Whether you call it Consumer Behaviour or Behavioural Economics, the advances in this two
scientific fields aligned with neurobiology and neuropsychology recent findings have been
contributing to improvements in decision making for the last 20 years, defying the rational
economic standarts and inducing psychology and the study of human nature in real situations
in them.
The Nobel prize winner Dr. Daniel Kahneman defines two systems of decision making in his
article - Maps of Bounded Rationality - and highlights the fact that human beings are not
rational decision makers, forces like altruism, greed and revenge are likely to influence an
economic decision.(Dan Hill, 2003)
As defined by Kahneman System 1 or intuition is by process fast,emotional, automatic,
effortless and associative and by content can be conceptual representations of past, present
and future and can be evoked by language, making it similar to the System 2 ( Reasoning )
process, they also set by habit and extremely difficult to modify.
System 2 or Reasoning is slow, controlled, effortfull, flexible and neutral in process and has
stated above is identical to Intuition in content. Perception is called the third system of
rationality sharing the same process as intuition but with different content.
[http://psycnet.apa.org/journals/amp/58/9/images/amp_58_9_697_fig1a.gif]
The difference in effort provides the most usefull indicationsof whether a mental process
should be assigned to system 1 or 2. This map shows us the important role the perceptual
process and intuition has in our decision making and consumer behaviour, and as stated in
my previous post ( The role of emotions in marketing - PartI) even in complex decision
making like the purchase of a house or a car where in theory system 2 would be apllied and
our rational tought supported by a longer period of alternative contemplation can be affected
by the emotional system 1 and 3 (perception) resulting in an irrational decision making.
There two basic groups of human irrationalities we have to account when studying consumer
behaviour - either Categorization or Loss Aversion (Kahneman 2005, Wahrman, Fusso and
Serrins, 2003)
Categorization
This relates to heuristics or mental shortcuts for purpouses of identifying products or objects
and fit them into a preconceived categories. This concept leads us to :
Framing : making a choice more attractive by deliberately comparing it with inferior
options.
Mental accounting : placing artificial limits on the amounts we're willing to spend in
certain categories.
Prospect theory: judging pleasure based on a change in condition rather than on how
happy we are.
Anchoring: evaluating new information strictly in terms of what our baseline of

knowledge happens to be.
Recency: giving undue weight to recent experiences.
Loss Aversion
"Negative emotions are linked to survival - and are much stronger" ( Le Doux, 2003)
Human beings are naturally programmed to react to loss or fear in a greater scale than
pleasure due to our survival instinct, that's why we feel more pain from a loss than pleasure
from profit. This concept leads us to :
Familiarity: having a bias towards the status quo.
New-Risk premium: inflating the cost of accepting new risks while casually discounting
familiar risks.
Fear of Regret: not making a decision out of fear, so as to avoid making a mistake.
Decision paralysis: failing to make a decision involving lots of choices for fear of making
the wrong one.
Marketers should analyse wich type of irrationalities apply to his product or product category
when studying consumer behaviour. Playing with categorization's framing or clearlly
understanding mental accounting can make a difference in product and competition strategy.
While trying to reduce the effects of loss aversion might be a challenging test, but also one
that can put your product on top.
There has to be an analysis of purchase pattern and behaviour and emotions or irrational
behaviour should not be left out because there are now credible companies that measure
them for you and can make an actual difference in your startegic business unit study and
plan. Remember the real reason its always the inner reason.
Diogo R. Seborro
References:
Dan Hill, Emotionomics, KoganPage, 2010

Daniel Kahneman, Maps of Bounded Rationality: Psychology for Behavioural Economics, The
American Economic Review, 2003
The Role of Emotions in Marketing - part I

11th August 2011

Advances in neuroscience and brain response in recent years have revealed that human
beings are primarely emotional decision makers.
But the rational side of consuming is still very much alive in business and marketing
today, most marketing campaings and new products fail because they rely too much on
rational marketing research, rational thought and promisses. That is the heavy heritage
of the french philosopher and mathematician René Decartes that with his famous
conclusion - I think, therefore I am - put an emphasis on rational behaviour and
decision making, dividing the mind from the actionable body.
Emotions are still looked at in many companies like something dubious, dangerous and
impossible to quantify. And if they are dubious and not quantifiable we cannot control
them and do effective management. Note that emotional response that we are talking
here is not the question about how you feel about a certain product or commercial in
some survey. In fact so you can answear that question the rational part of your brain,
your Neo Cortex and counscious has already been involved to provide verbalization and
that is no longer a pure emotion. The superior and impulsive emotions come from an
older part of your brain in the subscouncious domain, called the lymbic system that is
our emotional center and evolved with the first mammals.(Dan Hill,2010)
In fact the brilliant neuroscientist António Damásio in his book (Decartes' Error) and
research has highlighted the importance of the lymbic system and in particular of one
small part in the brain called the amygdala that functions like a box full of emotional
reactions we have aquired through time and experience. António Dámasio discovered
that in pacients whose link between the amygdala and neocortex had been damaged,
exhibited extremely poor decision-making skills, this little organ acts like a compass in
our decison making and emotional signals can reach faster the amygdala and the
emotional brain than the neocortex, so you can sometimes feel and act before you can
actually racionalize about it. Those emotions become embeded in your decision making
process even if your racional brain denies it.
[http://larvalsubjects.files.wordpress.com/2009/11/amygdala.jpg]
Moreover, the emotional brain is larger than the rational part of the brain and the entire
brain processes more emotion than cognitive activity(Baker,Greenberg and Hemingway,
2006). According to Dan Hill in his book Emotionomics - The essential difference
between emotion and reason is that emotion leads to action while reason leads to
conclusions.
When we make impulse purchases it is our emotions that are getting involved, as inputs
get filtered straight to the amygdala, while in our rational brain this path takes longer
and it is not superior because many times it is influenced by the quick response of our
emotional center.
Even memory is emotion based with the hippocampus being our memory card and also
the amygdala that plays an important role in visual learning and memory are located in
the emotional part of the brain. Note that there is only two ways for memory
formation:
A new memory can be established when a stimulus hits the amygdala and makes
an emotional connection , ( Le Doux, 1994)
A stimulus can be easily assimilated, since it resembles a previously established
connection.
And lets not forget the effect of internal variables as experience and memory have in
our perceptual process and attitude formation. Perception itself is subjective and
selective, these two characteristics derive directly from the emotional brain.
All that was stated above reinforces my belief that the emotional component of the
attitudes is more important that the cognitive and behavioural because its influence
spreads to both while it is also the first component to be accessed. What you know and
what you will do concerning a product or service will depend on how you feel about it.
And if you think about automatic purchase decision making, you know know that it is all
about emotions.
The use and study of the consumer emotional state is very important to marketers
enabling them to make better, effective and correct decions. This study can be crucial in
the lauch of new products and advertising campaigns, where sometimes what is said
does not exactly match what is felt in a subconcious state, and then originate a
negative attitude
The way marketers can measure attitudes will be the matter of the second part of The
Role of Emotions in Marketing series of posts.
Diogo R. Seborro
Damásio A, Decartes' Error, Emotion, Reason and the Human Brain, Europa-América,
2009
Dan Hill, Emotionomics,Kogan page,2010



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10/11/2017 Thinking About Marketing

Thinking About Marketing pesquisar

Clássica Flipcard Revista Mosaico Barra Lateral Instantâneo Timeslide

17th January 2012 Marketing Strategy and Crisis

16th November 2011 Consciousness

Consciousness is likewise an indespensible condition in business and an extremely important

8th September 2011 Marketing History : The Father of

We can now see that this Tema

- Product diffrentiation, and branding

Most importantly was Josiah Wedgwood's capability to understand and respond to a

Publicado 8th September 2011 por Diogo Seborro

3rd September 2011 Generalisation - A common error in

This is exactly what it is exposed in an excellent blog, that I recommend to

There Thomas Zoega, a neuromarketing professor argues that there are a

For example in buyology Lindstrom suggests that gore images on cigarretes

28th August 2011 Probably the best ad of 2011

Chrysler Eminem Super Bowl Com…

According to a well known traffic manager after this ad aired, brand

Feel Free to Comment!

Publicado 28th August

18th August 2011 Collaborative Marketing : Participative,

It is Collaborative marketing because the empowerment of consumers makes

Tema Visualizações dinâmicas. Com tecnologia do Blogger.

A new face of marketing today is its cultural feature it is according Kotler in

This new era of Marketing is very much influenced by changes in Consumer

Kotler, Kartajaya,Setiawan, Marketing 3.0, Wiley. 2010

Feel free to comment below or follow us on Facebook

Publicado 18th August 2011 por Diogo Seborro

16th August 2011 Consumer Behaviour : Heuristics Shortcuts

Tema Visualizações dinâmicas. Com tecnologia do Blogger.

Feel free to Comment or visit our Facebook [https://www.facebook.com/pages/Inner-

Publicado 16th August 2011 por Diogo Seborro

14th August 2011 Consumer Behaviour : Accounting for

Anchoring: evaluating new information strictly in terms of what our baseline of

Dan Hill, Emotionomics, KoganPage, 2010

Publicado 14th August 2011 por Diogo Seborro

The Role of Emotions in Marketing - part I

11th August 2011

Publicado 11th August 2011 por Diogo Seborro

Tema Visualizações dinâmicas. Com tecnologia do Blogger.

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