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Book Excerpts

Recently Regis contributed to Conversations With Masters by Laura Mazur and Louella Miles. In this book they assembled the collective knowledge of global marketing leaders and their insights into marketing today.




Partial interview:

Q : One of your seminal articles was “Marketing is Everything” in the Harvard Business Review in 1991. Is it just as relevant today?

McKenna : More so. All business activity today has become increasingly complex and at the same time is faced with the need for real-time information. The business environment is also more competitive and, of course global. The American auto industry never quite caught on to this idea. Toyota and Honda found that, by focusing on building quality into their cars and having everyone in the business be responsible for every step of the process, from sourcing components to service, they could capture Ford and GM’s home market. That is effective marketing. One can double the amount of advertising spent and provide interest-free loans but those types of marketing activity will not deliver a reliable, dependable driver experience.

Marketing is not only about advertising. My experience tells me that marketing is best accomplished when it is approached as multidisciplinary business activity. Quality was once thought of as a specific corporate function. That all changed in the 1980s, when total quality management programs in Japan taught American companies the benefits of having all employees engaged in the process of product quality, feedback from customers and continued incremental improvement. Marketing is rapidly becoming a technology and many marketing people still see it as an art. Customer relationship management (CRM) was designed and developed by software engineers, not marketing consultants or ad agencies. Distribution, once a department of most marketing organizations, is now logistics. Logistics is a network of services coordinated by software programs with the idea of efficient delivery of goods and services to the customer's doorstep. Most businesses could not efficiently run any part of their business today without computers, software and high speed networks. Coordinating resources, inventories and moving products from the click of a mouse to production and doorstep delivery, when done efficiently with all the proper notifications to the customer, is also good marketing.

I think marketing, as a function, has lost much of its position and power because the responsibility for many of the marketing functions is already dispersed throughout the enterprise. The chief information officer (CIO) and information professionals keep the communications networks and customer access channels up and running 24/7/365. In many organizations, the vice president of business development reports directly to the chief executive officer (CEO), as does the vice president of logistics.

While doing research on my book, Total Access, I spoke with quite a few executives running operations, logistics, IT and business development. None claimed a marketing title but all used terms such as "customer care", "brand building", "customer life cycle", and "service". I like this trend! It makes businesses more customer-friendly and more successful. And in the last analysis, the CEO is the chief marketing officer because he or she is the only one with the power and responsibility to coordinate all the resources within an enterprise to make big changes happen.

Q : You've also written that the CIO is taking over more of marketing as technology becomes so central to a company's performance.

McKenna : I think the CIO is doing much of the marketing already. The CIO is the one who has to manage the nerve centre of the marketing enterprise. More than half of all marketing today in industries such as retail, financial services, travel and on-demand entertainment is done by software and network systems. Think about it. Research, datamining, customer life-cycle management, segmentation, self-service, market simulation, sales lead management, key word and embedded ads and CRM are all new high tech tools for better marketing effectiveness. The CIO and information professionals are the people who make sure that all those information resources are current and available on demand.

And with increasing identity thefts, illegal computer access and fraud, the CIO's responsibility for assuring customer privacy is yet another way of providing customer care satisfaction.

Reproduced with permission of the publisher John Wiley & Sons, Ltd., from Conversations with Marketing Masters. Copyright C 2007 by Laura Mazur and Louella Miles.

 


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