New marketing era

At the very best, the marketing functions of business can achieve outstanding results. While at the worst they are mired in jargon and without any ability to measure the results.

Therefore many directors would be keen to know that McKinsey has published an article in which they assert that marketers are “boosting their precision, broadening their scope, moving more quickly, and telling better stories”.

The article builds a case that could be summarised as marketing moving from the four P’s (product, price, place and promotion) to the five S’s – science, substance, story, speed and simplicity. 

Science is helping marketers better target and measure returns. The interaction with customers can help refine products and offerings. But marketers and hence, directors, need to understand the technology of this science in order not to be left behind.

With much increased data about customer interactions the substance of what the business does can actually be impacted. Businesses can meet customer expectations by developing products customers want at the price they will pay. Directors can now have customer data that supports strategic decisions.

The speed of business has increased many-fold and agility is paramount throughout an organisation. Directors need to ensure that this agility is enhanced by board processes rather than stifled by them.

According to the article, simplicity enhances speed. Layered, bureaucratic organisations are not fast. And rarely are they innovative or ultimately successful. Simplification of processes should be a director’s aim.

And lastly – story. A clear brand story of a business has always been important and it remains so. However, the channels to communicate the story have changed and will most certainly continue to change. Customers now contribute to a business’ story – whether good or bad.

The article adds that the five S’s bring the customer closer to the business. Directors should understand this democratisation of business by customers will continue to gather pace and bring them ever closer to the boardroom.

The full article can be read here.