OLD MARKETING, NEW MARKETING, REAL MARKETING: FRAMING THE OPEN SOURCE MARKETING DEBATE

My "new marketing" sparring partner James Cherkoff gave a presentation to a University of Delaware marketing class recently. James uses an old/new framing device to set-up the evolution of marketing practices in terms of "old" and "new" with "old" theoretically being all the bad stuff and "new" being all the good stuff. I want to offer up a different frame from which to discuss these issues both for the students he presented to, and for practitioners interested in this debate. Here are three notions to consider:

OLD MARKETING - Its mostly about advertising. Creative awards trump marketing effectiveness. "Old marketing" is characterized by things like enterprise control over brand and image, media commissions and production mark-ups, reach and frequency media models which rationalize large scale media spends, branding initiatives measured in soft metrics like impressions and awareness, creative competencies valued over strategy and execution skills. Absent strong strategy and execution skills "old marketing" resorts to price discounting as it's primary competitive strategy.

NEW MARKETING - Its mostly about customers. Customer wisdom is valued over enterprise leadership. Putting the customer in total control of enterprise resources is paramount. Customer participation drives new marketing. Reputation management is discouraged. Total enterprise transparency a must. Customer generated media whether good or bad is encouraged. Attempts to "control" customers via the marketing mix is "bad". Attempts to measure ROI or apply short term revenue and margin expectations are resisted. Absent control over the marketing mix, "new marketing" enterprises are not allowed to defend themselves or influence the marketplace.

REAL MARKETING - Its mostly about effectiveness. Market share, revenue growth, margin enhancement and return on investment are key metrics. Command and control of enterprise resources is paramount. Strategy, execution, and competitiveness trump creativity (if creativity makes me more competitive then rock and roll - if not its wasted sword motion). The distinguishing factor for real marketers is they apply a filter of effectiveness to all efforts. Real marketers will use any tactic, tool, process, theory or methodology from the "old" or "new" camp as long as it is effective or appears to have a reasonable chance of being effective.

The phrase "real marketing" is inspired by another phrase coined back in 2000 which was the "real economy". Rod Watkins, a vSente alumnus, coined the phrase "real economy" in reaction to all of the hype resulting from failed internet business models and approaches collectively referred to as the "new economy". Yes there was an "old economy" demonized by the "new economy" folks for it's emphasis on profit and accountability. And we know now how most of the "new economy" theories turned out. So out of respect for the realities of having to compete, and generate cash flow, and meet payrolls, and pay taxes, and all those other reality driven enterprise necessities... we offer a new frame for the "old/new marketing" debate - "real marketing".

It is interesting that as this is written there are examples of the reality of "new marketing" playing out. Steve Rubel, one of the original "A" list bloggers went to work for PR mainstay Edelman and quickly got nicked by the realities of "new marketing" when it came to Edelman's client WalMart. Robert Scoble another "A" list blogger at Microsoft decides to violate one of the main tenets of "new marketing" by editing negative comments out of his blog. And then GM gets slaughtered by an onslaught of negative commercials created by a customer generated media campaign.

Comments from students, instructors and practitioners welcomed...

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Comments

[Jay Lipe]

This is great stuff, but I do take issue with an element of the "New" Marketing description.

There it says:
"Putting the customer in total control of enterprise resources is paramount". I'm not sure I agree.

Customers sometimes need to be guided in their efforts. In my opinion, that's the new role of a marketer. A company still has fidicuary responsibilities to outsiders that consumers won't necessarily see as a high priority. Ceding total control of "enterprise resources" is dangerous.

However, I agree that a portion of those resources rightfully belong in the hands of consumers so that they can drive them in the direction the market wants them to go...