- Posted by: Paul Christ
Throughout our Principles of Marketing tutorial, we make it clear that marketing is a critical component for running a successful organization. We also note that, given the Toolkit that marketers must employ and the skills needed to use the Toolkit, doing marketing well often requires a team approach involving many people responsible for different tasks. Consequently, career options in the marketing field are quite wide-ranging. Moreover, for anyone looking at a possible career in marketing, the future seems to be bright.
According to a ranking of top 25 business jobs provided by U.S. News and World Report, marketing positions are well represented. In fact, the rankings, which include position profile, salary range, required education/training, expected stress level and advice on obtaining a position, show two marketing jobs at the top of the list.
The first, Market Research Analyst, is a specialist position and is number one due to the expected demand for researchers over the next few years. In terms of training, a number of colleges and universities have begun to offer marketing research specific concentrations and certifications, including in the growing field of data analytics. However, it is important to note that strong quantitative skills are a must for this position.
The second job, Marketing Manager, is what the name suggests. It is the person in charge of all marketing activity. While these people may have initially started their career in a specialized area (e.g., sales, advertising), their skill set now requires they know about all marketing areas. In many organizations, Marketing Managers are the main decision maker when it comes to marketing issues and, as noted in the ranking information, while they face a higher stress level than most other marketing positions, they also are the most highly paid.
These were not the only marketing positions to make this list. Additional positions include Sales Manager (#13), Sales Representative (#15) and Customer Service Representative (#22). There are also several other jobs, such as Logistician (#6), Insurance Agent (#7)and Real Estate Agent (#19), which require people to possess important marketing skills.
- Posted by: Paul Christ
There are many business pundits who firmly believe the key to marketing success always comes down to product awareness. They believe companies cannot be successful unless customers know who they are, and that means focusing significant efforts (and money) on promotion. While it is true that, for most businesses, effective promotion is vitally important if products are to succeed, for the majority of businesses it may be a major mistake to believe promotional spending is the most important marketing decision. In reality, which marketing decision is the most important can vary. For instance, for low-cost airlines, that essentially offer the same services, pricing decisions may be the most critical. For quick-stop gasoline stations, the many concern may be outlet location, which is a distribution decision.
While promotion, price or distribution may be at the head of the task list for some marketers, for the vast majority of marketers, who produce their own goods and services, the biggest marketing concerns deal with product issues. For these marketers, everything starts with finding products that customers will want. If they do not want the product, no amount of spending on promotion or lowering price or providing effective distribution will help.
The issue of marketing desirable products is especially a challenge in industries who are apt to experience rapid change, such as computer, home entertainment, smartphone and other technology-heavy industries. But product design is also on the front burner of companies in low-tech industries, such as consumer foods, greeting cards and fashion. These industries, along with many more, realize that a poor effort in new product development is a recipe for disaster that may prove fatal.
Sometimes, though, struggling companies, which have either lacked a strong focus on product development or have done it poorly, can recover by altering how they carry out the design process. However, changing how things have been done may not be easy, particularly if company personnel are resistant to making the adjustments that are necessary for adopting new methods for innovative design.
A good example of a company that faced the tough times and made the necessary changes to improve product development can be found in this Fast Company story. It discusses how Denmark's The Lego Group, marketer of the popular Lego toy brand, was in trouble ten years ago and on the verge of going bankrupt. The leading cause of their problem was product development that was not focusing on what customers (i.e., kids) really wanted. Things changed when a new CEO was brought in and instituted creative methods for carrying out product development. The result is a company that is now not only a leader in toy development, but a model for how most companies should approach product innovation. This story, along with another Lego story we noted back in 2010, should serve as must-reads for anyone involved in product decisions.
- Posted by: Paul Christ
If product marketers are asked to rank the most difficult tasks they face, the most likely responses will be something like: "it is hard coming up with new product ideas" or "we struggle deciding on what is the best price to charge" or "it is challenging finding distributors that are willing to sell our product" or "we rack our brains trying to come up with a great slogan". It is almost guaranteed that way down on the "challenges" list is deciding on what name to give to a new product. This is because many marketers view product naming as a secondary decision that can always be addressed later. That is, the challenge of giving a name to a product is not considered as critical as other issues they face.
Yet, as we discuss in our Product Decisions tutorial, product naming is one of the most important elements in establishing a respectable brand. Along with creating specialized features, such as a unique design, the name gives products an identity that may help separate it from competitive offerings. The name is also the leading element in product promotion as it is repeated over and over.
Naming is so important it has led to the creation of specialized marketing companies whose key service is to come up with brand names. However, these marketing specialist mostly target big companies, who can afford the large consulting fees that are charged. Smaller companies searching for a brand name must do so in-house, and this is not always easy. They often lack the skills or research capacity to figure out what names may grab the attention of potential customers. They also may not be fully informed of the legal consequences for adopting a name that may infringe on the same name owned by someone else. Others find it hard to come up with a name because Internet trolls have swooped in and registered the domain name and potentially hold it hostage unless someone is willing to fork over large sums.
A good example of smaller companies facing naming challenges can be found in the craft beer industry. As discussed in this National Public Radio story, craft breweries are among the most innovative industries when it comes to new product. However, the proliferation of products has led to problems with name creation. In some cases brewers, who have named a product, are discovering that other companies have already trademarked the name, and this has led to legal battles. What is particularly interesting is that nearly all words that are associated with beer and brewing have already been trademarked to the extent that it is nearly impossible to name a beer with these words. The story also notes that the issue is not limited to words. Trademarked images appearing on craft beers is also resulting in legal battles.
- Posted by: Paul Christ
As we post for the final time in 2014, we prepare for next year by looking back on several topics we tagged as Marketing Trends that are bound to become news again in 2015. Here are a few of our favorite trends and some of the comments we made about these.
- Apps Get Even Bigger – In February, the future of retailing was discussed when we looked at how big restaurants were testing the use of mobile device apps to allow customers to place orders. Based on a USA Today story, the focus was on Taco Bell's use of a new app and we noted: "While this app offers many customer-friendly options, such as menus that update depending on the time of day and maps displaying the closest store, this technology also provides a number of appealing features for Taco Bell, including the ability to suggest (i.e., upsell) customers on additional items and the use of GPS tracking that will alert the restaurant when the customer is getting close to the store."
- The Robot Invasion – Since the dawn of the modern economy, sometime after the Industrial Revolution, it has been a never-ending goal of marketers to wring costs out of product distribution. Technology and process innovation are continual and, as we noted in a December post, Amazon's use of warehouse robots is a terrific example: "As explained in this National Public Radio story, Amazon is using specialized robots programmed to bring products to employees who fill the orders. According to the story, Amazon uses over 15,000 robots in its warehouses."
- The Need for Salespeople to Adapt – While robots are changing retail distribution, changes in who makes the final buying decision is affecting somes sales professions. As we discussed in a September post, a Wall Street Journal story examined this issue in the health care industry. They found that fewer doctors now make the drug choice decision and instead that role has, in some cases, shifted to non-doctors: "Because more and more doctors are joining health care systems, such as large group practices and hospitals, decisions on drug choice is beginning to shift away from doctors and, instead, is being handled by someone in management, who may not even be a doctor. In these situations, sales reps may find that speaking with a non-doctor about a drug may be more important than speaking with a prescribing physician."
- The Business of Marijuana – Another retail issue that caught our attention in May was the developing market for legalized marijuana that was discussed in a National Public Radio story. While many people in the U.S. are against legalization, there is no question that it is generating big money for the states that permit it to be sold. It is also creating marketing challenges for companies in this business: "As the market grows, it will also be fascinating to see the retail strategies marketers use to broaden distribution. Currently, these products are sold within small independent retail stores, but some day we may see marijuana sold in large corporate chain stores and retail franchises."
- Watch Out for Generation Z – In a post we made last week, we talked about the growing importance of the Millennial generation. However, back in July we mentioned the emergence of another generation that will also have a significant impact, Generation Z. Yet, marketers need to beware that this group may be quite different then those they currently target: "The Gen Z group represents consumers born after the mid-1990s. According to this story in Shopper Marketing, this group possesses certain traits that set them apart from previous generations with the most notable being that they are the first generation to have always been exposed to the Internet."
- Managing Social Media – Finally, there is no doubt about the power social media brings to marketing. By now nearly every company that cares about marketing is using some form of social media. And more are going a lot farther than just tweeting or posting to Facebook. For instance, in September we reported on another National Public Radio story that captured the importance sports marketers are realizing about controlling social media: "Copying the strategies undertaken by leading consumer products firms, these sports organizations have created social media command centers, which are supported by advanced data analytics software and are outfitted with multiple computer screens that display what is happening in real-time on social media."
These are just a few issues that caught our attention this year and that we suspect will be heard from again in 2015.
From everyone at KnowThis.com - Happy New Year!
- Posted by: Paul Christ
As we reach the end of 2014, many publications and informational websites are offering stories that look back at what has happened during the year and also provide a glimpse into what may occur in the future. At KnowThis.com we are not immune to using this journalistic approach, so with this post we also look back and look forward to a critical marketing trend: the Millennial generation. Back in 2010, we first discussed this group, which are generally defined as those being born between the mid-1980s and the early 2000s, and we noted that a distinct characteristic of of Millennials is the impact technology has had on their lives and how that may shape their purchasing habits. Nearly five years later, two stories offer even more evidence of the impact of this demographic segment.
As discussed in this Entrepreneur Magazine story, a large number of Millennials are college students. In fact, in the U.S. there are 12.6 million college students between the ages of 18 and 24. Moreover, their purchasing power right now is significant. Besides what they spend on direct college expenses (e.g., tuition, room & board, books), they spend a whopping $163 billion on so-called "discretionary items" such as food, smartphones and clothing.
Of course, leading marketers are well aware of the buying power of this generational group, and they direct considerable marketing dollars to gain Millennials' attention. For example, another story in Advertising Age lists the top 10 most popular advertisements among Millennials for 2014. It is likely not too surprising that six of the ten spots are taken up by food establishments, including Wendy's (#1), IHOP (#2) and Papa John's (#5).
While Millennials represent a healthy spending group that currently attracts the attention of select marketers, it will not be for another five or ten years before many other marketers consider them to be part of their target market. This is the time when Millennials will become an even more powerful force as they move into stable careers and begin to have families, thus leading to increased purchasing power. It will be interesting to see if the companies, who are presently doing well among Millennials, will continue to retain their support as Millennials grow older.