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22 Insights from Transformational Marketing: Moving to the TopRight
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Transformational marketing

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These are the slides that Professor Baker used during his talk to Glamorgan Marketing Chapter Wednesday 19th October.

The talk focused on Transformational Marketing.

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Transformational marketing

  1. 1. Transformational Marketing Michael J Baker
  2. 2. At worst ‘marketing’ is seen as deceptive, misleadingand designed to encourage people to spend moneythey can ill afford on products and services withlittle or no benefit to them. Materialism and aglobal sustainability crisis are the direct result of ourmisguided efforts Michael J Baker 2
  3. 3. At best, ‘marketing’ is a harmless and fairly trivialpractice based on advertising and promotion thatkeeps us informed of the huge variety of goods andservices available for sale. Michael J Baker 3
  4. 4. As with most things, the truth lies somewhere betweenthese two extremes.Professional marketers know marketing is a force forgood and concerned with “the creation and maintenanceof mutually beneficial and satisfying exchangerelationships”. (Baker, 1976) Michael J Baker 4
  5. 5. Marketing is concerned with:• Researching customer needs and wants• Communicating the findings to producers• Involvement in the creation and design of goods and services• That add value and deliver the desired benefits• Segmentation, Targeting and Positioning• Informing customers of the variety and choice on offer• Making the offer available for purchase• Monitoring performance in use, ensuring satisfaction and continuing after-sales service Michael J Baker 5
  6. 6. So, why the misperception?Because attention is focused on the tip of the icebergrather than the 90 per cent that is hidden from view.That is, on mass produced, mass consumed, fast movingconsumer goods (fmcg) that are central to the MarketingManagement school of thought that dominates mostmarketing education and thinking. Michael J Baker 6
  7. 7. According to the American Marketing Association (AMA)products may be sub-divided into two main categories: Industrial goods (four sub-categories) Consumer goods (three sub-categories) The three sub-categories of consumer goods are: Convenience goods (fmcg) Shopping goods Specialty good Michael J Baker 7
  8. 8. The basis of this classification is the way in whichgoods and services are bought in terms of the thoughtand effort involved – in other words buyer behaviour. It follows that the key to successful marketing is a full understanding of how buyers make choice decisions. Michael J Baker 8
  9. 9. Some theoretical explanations: Reasoned action and planned behaviour Behavioural economics Baker’s composite model Michael J Baker 9
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  12. 12. A simple composite model of the buyingprocess may be expressed notationally as: P = fS [SP (FN, EC, IS, CBA, BR, PPE]) Source: Baker (2002) Michael J Baker 12
  13. 13. P = a PurchaseF = a function (unspecified)S = a Stimulus or StimuliSP = Selective PerceptionFN = Felt Need (Awareness)EC = Enabling ConditionsIS = Information Search (Interest)CBA = Cost Benefit Analysis (Desire)BR = Behavioural Response (Action)PPE = Post Purchase Evaluation Michael J Baker 13
  14. 14. Social marketing is "the systematic application of marketing,alongside other concepts and techniques, to achieve specificbehavioural goals for a social and environmental good“(Veronica Sharp, Chapter 12 Social Marketing in, The Marketing century,Ed. Jeremy Kourdi, 2011, Chichester: John Wiley & SonsLtd) Michael J Baker 14
  15. 15. Sharp suggests six important questions:1 What are the barriers to change?2 What is the motivation to change?3 What are the things that the person needs to move away from4 What are the things that they need to move towards?5 What does the person think, feel and believe?6 Who does the person listen to and whom do they trust? (249) Michael J Baker 15
  16. 16. Sharp identifies a great deal of common ground betweencommercial and social marketing:• We both seek success (Commercial = profit; Social = benefit );• we both focus on the customer;• we both focus on the competition (which may be each other!);• we both focus on behaviour (but SM is often trying to change ‘bad’ behaviour and habits, while CM is encouraging them);• we both work with stakeholders (SM often involved with more complex relationships). Michael J Baker 16
  17. 17. Sharp argues that commercial marketers may benefitin several valuable ways by understanding theprinciples of social marketing. These include:• developing a complete, insightful view of the customer• focusing on behaviour• adopting a patient, long-term perspective• working closely with stakeholders to co-design• clearly understanding the costs and benefits to the customer Michael J Baker 17
  18. 18. This is what is meant by ‘Transformational Marketing’. It is using marketing knowledge, insights, tools, and techniques to communicate how choice and behavioural change can increase individual satisfaction, in both the short and longterm, without having a negative effect on other people, or the environment which we all share and depend on for our wellbeing and survival. Michael J Baker 18
  • AnnFarmiga

    Jun. 4, 2016
  • GillesVanAcker

    Jul. 22, 2013

These are the slides that Professor Baker used during his talk to Glamorgan Marketing Chapter Wednesday 19th October. The talk focused on Transformational Marketing. Follow us on Facebook:


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