News & thoughts 2017-07-15T17:47:15+00:00

Must win battles on the path to purchase

Jan Carlzon, president of Scandinavia Airline, wrote a book titled 'Moments of Truth' in 1986. The basic idea of the book is that decisions are like processes which are comprised of various critical moments in which the product must be better than the competition. The most important moments need to be identified and owned, or the product will not be considered by the customer. A.G. Lafley translated the model for marketing at Procter & Gamble and identified two 'Moments of Truth'. Lafley identified the '1st Moment of Truth' as the moment when the customer is in front of the shelf and decides which product to buy (Winning on Shelf). The '2nd Moment of Truth' is the product usage at home. Through the simplification of the highly complex purchasing decision process, Lafley focused the attention of [...]

Marketing Science and the Chinese Shopper

Marketing Science deals with the fundamental principles and laws of marketing, the side of buying and the side of selling. Its goal is to develop generalisable knowledge and scientific laws, which forms the basis for evidence-based marketing. Marketing Science begins to influence the marketing profession fundamentally by de-mystyfing many marketing myths and uncovering widespread but false theories. An understanding of marketing science and its main findings is essential for the effective and efficient management of marketing activities, and a reliable forecasting of marketing results. Marketing Science uncovers the underlying patterns of customer behaviour and is based on empirical generalizations. Empirical Generalizations Empirical generalizations are recurring pattern of events that occur via a range of different conditions. They are also called natural or empirical laws and form the building blocks of scientific theory. History shows that [...]

MBA thesis on Marketing Performance and Marketing Science

In March 2015, I completed my MBA thesis on "Marketing Performance - Improving marketing core activities through empirical consumer and shopper insights in the FMCG sector". The thesis analysis which marketing factors are important for brand growth and market penetration and what this means for the management of marketing, innovation and design. It covers the following topics: marketing performance systems, FMCG business trends, marketing science, omni-channel management and shopper marketing. If you are interested, request a copy (in German language only).

Spend advertisement budget wisely

In a complex and fragmented media world, it is increasingly difficult to maximize the return on investment of the media budget. Thoughtful mass marketing, the continued presence and consistent advertising (to refresh memory structures) is necessary to growth and defend the market share. A budget distribution across multiple media leads not necessarily to greater effectiveness. The media mix should be composed in a way that the greatest synergy between the media can arise. According to a CNBC-study, following ways are providing the best conditions for synergy in the media mix and delivering the best result: Cumulative reach of the target group: Only those who are reached by the campaign may be affected. The largest revenue effect by advertisement is caused by the first contact of an individual with the campaign (zero-to-one exposure). Timely repeated stimulation [...]

Amazon at the kitchen table

Digital technologies have already affected the purchasing behavior fundamentally. A highly complex ecosystem has changed how we interact with brands and buy products. The use of digital technologies affect every step of the traditional path-to-purchase: Explore, Search, Locate, Purchase and After Sales. The new path-to-purchase is much more dynamic and fragmented. At each stage, the consumer can decide anew how he behaves in his buying process. He can digitally interact within and outside the shop, switch between digital and physical channels and use a channel that is beyond the control of the retailer. He alternates between smartphone, tablet, computer and physical store to compare, annotate, and recommend to buy or do everything simultaneously. The digital transformation has transformed the path-to-purchase into a complex network of online and in-store interactions, which makes it more difficult to [...]

The future of marketing has arrived: insight-driven & real-time

Consistent, seamless Customer Experience Management involves a high degree of complexity, including large product portfolios, many touch points and multiple channels. The consumer expects a consistent customer experience, consistent products, consistent prices, consistent search and consistent advertising. New approaches in dealing with customer insights and digital marketing are necessary to manage this complexity. And marketing is changing radically. According to a study by Adobe, European Marketers see the rapid change and the need to re-position. However, organizational barriers slow down the change. In recent months there has been pioneering developments in the field of Customer Experience Management. Hybris, the leader in multi-channel management, markets one of the most comprehensive e-commerce platforms for online and offline channels. SAP, the leader in enterprise solutions, has acquired Hybris in August 2013 and linked it to existing services. By [...]

The basics of BASES: Designing for Simulated Test Marketing

In most companies product development concepts are tested on their market potential before going into market. Since many marketeers (and their bosses) heavily rely on the test-results for giving green light to continue with the next phase, it is important to understand how this testing actually works. In more than 50 percent of the cases BASES-testing is used. BASES is the Simulated Test Marketing (STM) tool suite of Nielsen and contains a number of STM tools. The concept screening tool BASES SnapShot is the most important tool for the evaluation of New Product Ideas, line extensions and relaunches. In SnapShot each concept is assessed on the basis of key parameters according to a secret black box algorithm. The Concept Potential Score (CPS) summarizes the results and indicates whether the concept goes into product development or [...]

Design and innovation for growth

Design for growth from Design Council on Vimeo. The video above is an introduction into the "Design for Growth"-initiative by the British Design Council. Design is a cross-cutting theme in the UK government’s Innovation and Research Strategy for Growth and the British Design Council supports this with parallell papers and practical plans. Their goal is to grow the knowledge base on the role and impact of design, in order to make design-led innovation happen on the ground. In the meantime, for most people it is clear that design plays a big role in our everyday lives. What's not so clear is the vital role design plays in economic growth and it's specific impact on businesses, public services and the built environment. To create a better understanding for this topic the Britsih design Council created a [...]

Measuring design effectiveness

With shrinking design budgets due to the financial situation in many companies, design managers, like most professions, are trying to explain themselves and justify their value. Occasionally, efforts made in this cause appear too obsessive. Terms like key performance indicators, critical success factors and performance management systems are becoming part of the lingo of design managers. However the more recent trend to try to measure design effectiveness sets a near-impossible task, at just the wrong moment. Many of the current attempts focus on short-term results by only defining CSF’s and KPI’s for the next quarterly meeting with the boss, others try to prove the effect of design in the limits of one design project (e.g. measure perceived quality in craftsmanship clinics or identify the design effect in brand equity). Ironically many neglect (conscious or unconscious) the importance [...]

Co-creation in Poland

With shrinking design budgets due to the financial situation in many companies, design managers, like most professions, are trying to explain themselves and justify their value. Occasionally, efforts made in this cause appear too obsessive. Terms like key performance indicators, critical success factors and performance management systems are becoming part of the lingo of design managers. However the more recent trend to try to measure design effectiveness sets a near-impossible task, at just the wrong moment. Many of the current attempts focus on short-term results by only defining CSF’s and KPI’s for the next quarterly meeting with the boss, others try to prove the effect of design in the limits of one design project (e.g. measure perceived quality in craftsmanship clinics or identify the design effect in brand equity). Ironically many neglect (conscious or unconscious) [...]