Summary of Knowledge Clips

Topic 1-Video Clips

Network Paradigm

- What is a paradigm?
- What are the developments that invoke this paradigm change?
o Sub-phenomena
o Phenomena
o Super-phenomena

What is a paradigm?

- Intellectual perception or view, accepted by an individual or a society as a clear example, model or pattern of
how things work in the world
- Paradigm-shift – a fundamental change in an individual’s or a society’s view of how things work in the world

Marketing in the third millennium:

- From exchange paradigm  network paradigm
- Because changes in:
o Sub-phenomena – consumption experiences
 From satisfaction to consumer experiences
 From cognitive processes to stimulating the senses
 Technology: influencing senses measurement physiology&technology influencing experience
o Phenomena – marketing networks
 Production & innovation networks  outsourcing & alliances
 Micro-production system  disintermediation
 (nano)Technology  local/personal production
 Co-production and co-creation
 Consumption networks  vertical & horizontal
 Blogs, chats, social networks
o Super-phenomena – sustainability/society
 Societal consequences: sustainability
 Market & resource capacity: overconsumption in saturated markets
 From firm & consumer to firm & social effects
 From reactive to proactive: superior products & demarketing
 Poverty
 Growth from: emerging markets  bottom of pyramid market

Customer experience

Customer experience management:

- ‘Consumer experience is the new marketing’
- Development of network-oriented value propositions
- What is it and how different from other marketing concepts
- Grounded theory:
o Integration of existing ideas
o Adding new insights and principles
- How to excel in consumer experience management

Customer experience:

- The evolvement of a person’s sensorial, affective, cognitive, relational, and behavioral responses to a firm or
brand by living through a journey of touchpoints along pre-purchase, purchase, and post-purchase situations

, and continually judging this journey against response thresholds of co-occurring experiences in a person’s
related environment.
- Focus on:
o Full sensorial response  (need) satisfaction
o Customer journey  ‘product offering’
o Other experiences beyond own company  alliances




Comparison of Market orientation and new concept of Customer Experience Management:

Market Orientation Customer Experience Management
Cultural mindset: Cultural mindset:
- Customer orientation - Experiential response orientation
- Competitor orientation - Alliance orientation (collaboration)
- Cross-functional coordination - Touchpoint journey orientation (also external)
Strategic direction (not included) Strategic direction (added)
Firm capabilities: Firm capabilities:
- Exploitative mindset (but reactive vs. proactive) - Ambidexterity (i.e., also explorative)
Market orientation:

- Set of beliefs that put the customers’ interest first
o While not excluding that of all other stakeholders, such as owners, managers and employees, in
order to develop a long-term profitable enterprise.
- The ability to generate, disseminate and use superior information about customers and competitors

Overall:

- Marketing thought is context driven
- But there is consistency as to the basic assumptions since the las ‘marketing concept’
o Customers (&environment) are starting points for company success
o Differentiation by superior (network) value delivery

Different views on MO: Responsive MO Proactive MO
Customer-led Market-oriented
Orientation: Expressed wants Latent needs
Style: Responsive Proactive
Focus: Customer satisfaction Customer value
Objective: Short-term Long-term
Learning type: Adaptive Generative
Learning process: Customer surveys, Observation,
Key account/focus groups Lead-users/experiment
Focus: satisfaction & relationships, Focus: innovation & unserved
stable environment markets, turbulent environment

,Topic 2 – Video Clips

Consumer insights & value

Are children consumers?

- What is a consumer?
o Consumer s a broad label that refers to any individuals or households that use goods and services
generated within the economy
- Consumers vs. customers
o Consumer: someone who buys or uses goods or services
o Customer: the buyer or user of the products of an individual/organization
- Strictly speaking
o Consumer: consumes/uses
o Customer: purchases

Consumer Behavior lessons:

- CB as such is descriptive
o Is it ‘bad’ to treat children as consumers? Morally questionable
- CB is broad
o Consumer Behavior > Product Purchase
 Information search, shop visits, complaints, returning goods, etc
o Consumer Behavior > Behavior
 ‘Consumer Decision Making Processes’
o Consumer Behavior has a broad theoretical basis
 Economics, psychology, sociology, business

CB components:

- Consumer Behavior is the dynamic interaction of affect and cognition, behavior and the environment by
which human beings conduct the exchange aspects of their lives.
- CB involves:
o Affect and cognition
o Behavior
o Environment
- CB is:
o Dynamic
o About interaction
o About exchanges

Consumer insights:

, Consumer insights: what?

Definition:

- A non-obvious understanding of our customer which, if acted upon, has the potential to change their
behavior for mutual benefit
- ‘A deep truth’ about the customer based on their behavior, experiences, beliefs, needs or desires, that is
relevant to the task or issue and ‘rings bells’ with target people.
- A revelatory breakthrough in the understanding of people’s lives that directs you to new ways in which to
serve your customers better.
- “A fresh and non-obvious/not yet obvious way of understanding customer needs & behaviors or more
importantly: customer frustrations that can become the basis for a business opportunity

4 W’s:

1. What do they (not) do/want?
a. Understand non-customers of brand/category  explore barriers to consumption
2. Why do they (not) do/want it?
a. Always ask why
3. WOW, I did not know/realize that!
a. The ‘not yet obvious’ part, e.g., learn from different contexts
4. Where is the commercial potential?
a. How can we make a strategic use of this?
i. Dimension 3: change consumers’ behavior
ii. Dimension 4: mutual benefit (consumer & organization)
b. How can we link it to a brand insight?

Why?

- Insights2020 research: impact on revenue growth
o Consistent, personalized, meaningful experience across all touchpoints
o Commitment from every department to meeting customer needs
o Presence of an independent Consumer Insights & analytics function
- Consumer Insights as tool for connecting consumers
o Which (again) creates value
o Linked to MEC theory later

Why not developed/used?

- Can’t:
o Own industry bias
o Insights are difficult to leverage
o Lack of insights metrics
o Weak insights capabilities