Deloitte, one of the big four account firms, has hired their first CMO – Diana O’Brien. Deloitte has done what many companies have done and more companies are planning to do – building their formal marketing teams. Traditionally, marketing and brand strategy have been a tool reserved for multinational consumer brands, but today all brands must manage marketing.
The need for marketing has been triggered by:
– Globalization which allows brands of any size to source and sell internationally, lowering the relevance of relationship based sales;
– The first 1.8 billion people marketing database – Facebook – which set a new standard for global reach;
– Smartphones which allow their users to make spontaneous actions such as likes, shares, and purchases.
These changes allowed businesses to access more customers than before and have created a need for marketing. Sales is an activity focused on individual’s decision, while marketing is focused on motivating group decisions. Therefore marketing is a tool for managing growth from local sales to global and digital sales.
While marketing is theoretically prepared for the sudden growth in markets, it is not practically prepared. To solve this problem in last years there was a big growth in marketing software solutions. There are thousands of marketing solutions available, and the offering will continue to grow both in complexity and variety. From the technology perspective, marketing problems are very interesting because they deal with enormous amount of complex data. This data is complex because it deals with understanding and predicting human behaviour.
Two trends will continue to grow in both near and distant future:
– Increase of marketing dominance in all businesses;
– Marketing automation through technology.
Brand Equity Management is positioned as a necessary higher level element of marketing. It offers a higher level of abstraction than marketing offers compared to sales. With the inclusion of marketing, companies are becoming brand equity oriented, just as multinational consumer brands were. This will result in increased need for Brand Equity Management as well.