B-I-G
The
Opportunity:
Women & Boomers
Tom Peters/02.11.2004
I. NEW
MARKETS.
“Baby-boomer
Women: The
Sweetest of Sweet
Spots for
Marketers”
—David Wolfe and Robert
Snyder, Ageless Marketing
1. Trends Worth Trillion$$$ I:
Women
Roar.
?????????
Home Furnishings … 94%
Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)
Houses … 91%
D.I.Y. (major “home projects”) … 80%
Consumer Electronics … 51%
Cars … 68% (90%)
All consumer purchases … 83%
Bank Account … 89%
Household investment decisions … 67%
Small business loans … 70%
Health Care … 80%
????
Riding Lawnmowers
2/3rds working women/
50+% working wives > 50%
80% checks
61% bills
53% stock (mutual fund boom)
43% > $500K
95% financial decisions/
29% single handed
1970-1998
Men’s median income: +0.6%
Women’s median income: + 63%
Source: Martha Barletta, Marketing to Women
$5+T > Japan
10M/28M/$3.6T
> Germany
Business Purchasing Power
Purchasing mgrs. & agents: 51%
HR: >>50%
Admin officers: >50%
Source: Martha Barletta, Marketing to Women
Women-owned Bus.
U.S. employees > F500
employees worldwide
Source: Martha Barletta, Marketing to Women
New golfers … 37%
Basketball … 13.5M
1 in 27 (’70) … 1 in 3 (’96)
1874 … Jock Strap
1977 … Jogbra
1977 ... 25K
1996 … 42
M
Yeow!
1970 … 1%
2002 …
50%
91% women:
ADVERTISERS DON’T
UNDERSTAND US.
(58% “ANNOYED.”)
Source: Greenfield Online for Arnold’s Women’s Insight Team
(Martha Barletta, Marketing to Women)
Carol Gilligan/ In a Different Voice
Men: Get away from authority, family
Women: Connect
Men: Self-oriented
Women: Other-oriented
Men: Rights
Women: Responsibilities
Men: Individual perspective. “Core
unit is ‘me.’ ”
Pride in self-reliance.
Women: Group perspective. “Core
unit is ‘we.’ ” Pride in team
accomplishment.
Source: Martha Barletta, Marketing to Women
FemaleThink/ Popcorn
“Men and women don’t think the same
way, don’t communicate the same way,
don’t buy for the same reasons.”
“He simply wants the transaction
to take place. She’s interested in
creating a relationship. Every place
women go, they make
connections.”
“Men seem like loose cannons. Men
always move faster through a store’s
aisles. Men spend less time looking. They
usually don’t like asking where things are.
You’ll see a man move impatiently
through a store to the section he wants,
pick something up, and then, almost
abruptly he’s ready to buy. For a
man, ignoring the price tag is almost
a sign of virility.”
Paco Underhill, Why
We Buy* (*Buy this book!)
“Shopping: A Guy’s Nightmare or a
Girl’s Dream Come True?”
“Buy it and be gone”
vs.
“Hang out and enjoy the
experience”
Source: The Charleston [WV] Gazette/06.22.2002
How Many Gigs You Got, Man?
“Hard to believe … Different criteria”
“Every research study we’ve done
indicates that women really care
about the relationship with their
vendor.”
Robin Sternbergh/ IBM
Women's View of Male
Salespeople
Technically knowledgeable;
assertive; get to the point; pushy;
condescending; insensitive to
women’s needs.
Source: Judith Tingley, How to Sell to the Opposite Sex
(Martha Barletta, Marketing to Women)
Women as Healthcare Decision Makers
— read vociferously
— want choices
— value convenience
— look for small signs of
sensitivity (gowns that close)
Source: Cheryl Stone, Rynne Marketing Group
Women and Healthcare
— Women are more dissatisfied
— Women are frustrated by the way they
are treated and spoken to
by physicians
— Women seek more information
— Women are more pressed for time
— Women make most healthcare decisions
and purchases
Source: Patricia Braus, Marketing Health Care to Women
Women and Financial Advisors
Women want ...
— a plan
— to be listened to
— to read about it and think about it
Women do not want ...
— a high-pressure sales pitch
Source: Kathleen Boyd, SVP, Wheat First Butcher Singer
(now part of Wachovia Securities)
Read This: Barbara & Allan Pease’s
Why Men Don’t
Listen & Women
Can’t Read Maps
“It is obvious to a woman when
another woman is upset, while a man
generally has to physically witness
tears or a temper tantrum or be
slapped in the face before he even has
a clue that anything is going on. Like
most female mammals, women are
equipped with far more finely tuned
sensory skills than men.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
“Resting” State: 30%, 90%: “A
woman knows her children’s
friends, hopes, dreams, romances,
secret fears, what they are
thinking, how they are feeling. Men
are vaguely aware of some short
people also living in the house.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
“As a hunter, a man needed vision that
would allow him to zero in on targets in the
distance … whereas a woman needed eyes
to allow a wide arc of vision so that she
could monitor any predators sneaking up
on the nest. This is why modern men can
find their way effortlessly to a distant pub,
but can never find things in fridges,
cupboards or drawers.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
“Female hearing advantage
contributes significantly to what is
called ‘women’s intuition’ and is one
of the reasons why a woman can read
between the lines of what people say.
Men, however, shouldn’t despair.
They are excellent at imitating
animal sounds.”
Barbara & Allan Pease, Why Men Don’t Listen & Women Can’t Read Maps
Senses
Vision: Men, focused; Women,
peripheral.
Hearing: Women’s discomfort
level I/2 men’s.
Smell: Women >> Men.
Touch: Most sensitive man <
Least sensitive women.
Source: Martha Barletta, Marketing to Women
Sensitivity to differences: Twice as
many card stacks.
More “contextual,” “holistic.”
“People powered”: Age 3 days, baby
girls 2X eye contact.
Source: Martha Barletta, Marketing to Women
“When a woman is upset,
she talks emotionally to
her friends; but an upset
man rebuilds a motor or
fixes a leaking tap.”
Barbara & Allan Pease, Why Men Don’t Listen &
Women Can’t Read Maps
Stress* **
Men: Fight or flee
Women: Seek the company of
friends
*Source: UCLA, “Female Response to Stress: Tend and
Befriend, Not Fight or Flight”/Psychological Review
**90% of stress research: men
“Women speak and hear a language of
connection and intimacy, and men
speak and hear a language of status
and independence. Men communicate
to obtain information, establish their
status, and show independence.
Women communicate to create
relationships, encourage interaction,
and exchange feelings.”
Judy Rosener, America’s Competitive Secret
“The Hollywood scripts that
men write tend to be direct and
linear, while women’s
compositions have many
conflicts, many climaxes, and
many endings.”
Helen Fisher, The First Sex: The Natural
Talents of Women and How They Are
Changing the World
“I only really understand myself,
what I’m really thinking and
feeling, when I’ve talked it over
with my circle of female friends.
When days go by without that
connection, I feel like a radio
playing in an empty room.”
Anna Quindlen
“Women are more
comfortable talking or
thinking about people and
relationships, while men
prefer to contemplate
things.” —research reported in the New York
Times (08.10.2003)
Editorial/Men: Tables, rankings.*
Editorial/Women: Narratives that
cohere.*
*Redwood (UK)
“Where the Girls Are:
They’re Online, Solving
Puzzles and Making Up
Characters in Narrativedriven Games” —Headline/WSJ/10.28
Initiate Purchase
Men: Study “facts & features.”
Women: Ask lots of people for
input.
Source: Martha Barletta, Marketing to Women
Read This Book …
EVEolution:
The Eight Truths of
Marketing to Women
Faith Popcorn & Lys Marigold
EVEolution: Truth No. 1
Connecting Your Female
Consumers to Each
Other Connects Them to
Your Brand
“The ‘Connection Proclivity’ in
women starts early. When asked,
‘How was school today?’ a girl
usually tells her mother every
detail of what happened, while a
boy might grunt, ‘Fine.’ ”
EVEolution
What If …
“What if ExxonMobil or Shell dipped into their
credit card database to help commuting women
interview and make a choice of car pool
partners?”
“What if American Express made a concerted
effort to connect up female empty-nesters
through on-line and off-line programs, geared to
help women re-enter the workforce with today’s
skills?”
EVEolution
The New New Jiffy Lube
“In the male mold, Jiffy Lube was going all out
to deliver quick, efficient service. But, in the
female mold, women were being turned off by
the ‘let’s get it fixed fast, no conversation
required’ experience.”
New JL: “Control over her environment.
Comfort in the service setting. Trust that her car
is being serviced properly. Respect for her
intelligence and ability.”
EVEolution
“Women don’t buy
They
join them.”
brands.
EVEolution
Purchasing Patterns
Women: Harder to convince; more
loyal once convinced.
Men: Snap decision; fickle.
Source: Martha Barletta, Marketing to Women
2.6
vs.
Cents & Sensibility
“Our advisory sessions [with
women] changed from a purely
analytical, male approach to
something that starts with the heart
and ends with the figures.”
Lowe’s …
Gets it.
1989:
13%/“lumber shop” … 2002: >50%
“War has broken out over
your home-improvement
dollar, and Lowe’s has
superpower Home Depot on
the defensive. It’s not-so-
secret ploy: Lure
women.” —Forbes.com
“Home Depot is still very much a guy’s
chain. But women, according to Lowe’s
research, initiate 80 percent of all homeimprovement purchase decisions,
especially the big ticket orders like kitchen
cabinets, flooring and bathrooms. ‘We
focused on a customer nobody in home
improvement has focused on. Don’t get me
wrong, but women are far more
discriminating than men,’ says CEO Robert
Tillman, 59, a Lowe’s lifer.” —Forbes.com
“Women’s Work: Do-ityourself has become do-itherself, and toolmakers are
taking notice” —Headline/San Francisco
Chronicle/08.03
Tomboy Tools. E.g.:
smaller, lighter in weight.
Tupperware “party” model.
“Darcy Winslow is a leading
figure in Nike Goddess, a
companywide grassroots team
whose goal is a once-and-for-all
shift in how a high-testosterone
outfit sells to, designs for, and
communicates with women.” —Fast
Company/08.2002
“Women weren’t comfortable in
our stores. So I figured out where
they would be comfortable—most
likely their own homes. The [first
Nike Goddess] store has more of a
residential feel. I wanted it to have
furniture, not fixtures. Above all, I
didn’t want it to be girlie.” —John Hoke,
designer, Nike
Yes!: “Crest Spinoff Targets
Women”—cover story,
Ad Age/06.03.02
Crest Rejuvenating Effects.
“Chicks in charge” team.
$50M launch. Packaging.
Taste. Features.
“Mattel Sees Untapped Market for
Blocks: Little Girls”—Headline,
WSJ/04.06.02
“Last year more than 90% of Lego sets
purchased were for boys. Mattel says
Ello—with interconnecting plastic
squares, balls, triangles, squiggles,
flowers and sticks, in pastel colors and
with rounded corners—will go beyond
Lego’s linear play patterns.”
“Volvo Teams Up to Build
What Women Want:
Concept Car Goes for
Great Storage, Easy
Maintenance” —headline/USA
Today/12.16.2003/140-person team;80%
women
Not
!
“Year of the
Woman”
Enterprise Reinvention!
Recruiting
Hiring/Rewarding/Promoting
Structure
Processes
Measurement
Strategy
Culture
Vision
Leadership
THE BRAND ITSELF!
“Honey, are you
sure you have the
kind of money it
takes to be
looking at a car
like this?”
STATEMENT OF PHILOSOPHY: I am a
businessperson. An analyst. A pragmatist. The
enormous social good of increased women’s
power is clear to me; but it is not my bailiwick.
My “game” is haranguing business leaders
about my fact-based conviction that women’s
increasing power – leadership skills
and purchasing power – is the strongest and
most dynamic force at work in the American
economy today. Dare I say it as a long-time Palo
Alto resident … THIS IS EVEN BIGGER THAN
THE INTERNET!
Tom Peters
Not a Morality Play
“It is critical that we all understand
that IBM is not marketing to
women entrepreneurs because it is
the thing to do, or even the right
thing to do. We’re marketing to
women entrepreneurs because it is
a huge opportunity.” — Cherie Piebes
27 March 2000: email to TP from
Shelley Rae Norbeck
“I make 1/3rd more money than my
husband does. I have as much financial
‘pull’ in the relationship as he does. I’d say
this is also true of most of my women
friends. Someone should wake up, smell
the coffee and kiss our asses long enough
to sell us something! We have money to
spend and nobody wants it!”
“If we are single, they say we
couldn’t catch a man. If we are
married, they say we are
neglecting him. If we are divorced,
they say we couldn’t keep him.
If we are widowed, they say we
killed him.”
Kathleen Brown, on the joys of female political candidacy
Psssst! Wanna
see my “porn”
collection?
Norwegian Law: Boards must have
at least
women.
Ass Of The Year2002: Maurice Greenberg, A.I.G.,
on the Company’s New (All Male) Leadership Team
“In a lot of countries of the world, it
would be very difficult for a woman to
be a good CEO. … I have a
responsibility to do the best we can for
shareholders.” * **
*Source: New York Times/05.05.02
**Wouldn’t you love to watch him tell that … face-toface … to Margaret Thatcher or Carly Fiorina? (I would.)
Ad from Furniture /Today (04.01):
“MEET WITH THE EXPERTS!: How
Retailing’s Most Successful Stay that Way”
Presenting Experts: M =
F=
??
16;
(94% = 272)
Stupid: “Amazing, now that I
think about it. A bunch of
guys --developers, architects,
contractors, engineers,
bankers--sitting around
designing shopping centers.
And the ‘end users’ will be
overwhelmingly women!”
“Customer is King”:
4,440
“Customer is Queen”:
29
Source: Steve Farber/Google search/04.2002
“Women Beat Men
at Art of Investing”
Source: Miami Herald, reporting on a study by
Profs. Terrance Odean and Brad Barber, UC
Davis (Cause: Guys are “in and out” of
stocks more often; women choose
carefully and hold on for the long term)
Investment Club Returns
Women-only clubs 1997 … 17.9%
Mixed … 17.3%
Men-only … 15.6%
Source: National Assoc. Investors
Value Line: Top State* Investment
Clubs 2000
8 … All male
19 … Coed
22 … All FEMALE
* VT & Maine not included; D.C. included
JBQ: Stop Treating Women Investors Like Idiots!
“Why all this focus on women and our lack of
investment guts? A far greater problem, it seems to
me, is trigger-happy speculation, mostly by men.
The kind of guys whose family savings went south
with the dot-coms. Imagine a list of their money
mistakes: Shoot from the hip. Overtrade their
accounts. Believe they’re smarter than the market.
Think with their mouse rather than their brain.
Praise their own genius when stocks go up. Hide
their mistakes from their wives.”
Source: Newsweek 01.08.01
Notes to the CEO
--Women are not a “niche”; so get this out of
the “Specialty Markets” group.
--The competition is starting to catch on.
(E.g.: Nike, Nokia, Wachovia, Ford, Harley-Davidson, Jiffy Lube,
Charles Schwab, Citigroup, Aetna.)
--If you “dip your toes in the water,” what makes
you think you’ll get splashy results?
--Bust through the walls of the corporate silos.
--Once you get her, don’t let her slip away.
--Women ARE the long run!
Source: Martha Barletta, Marketing to Women
1. Men and women are different.
2. Very different.
3. VERY, VERY DIFFERENT.
4. Women & Men have a-b-s-o-l-u-t-e-l-y
nothing in common.
5. Women buy lotsa stuff.
6. WOMEN BUY A-L-L THE STUFF.
7. Women’s Market = Opportunity No. 1.
8. Men are (STILL) in charge.
9. MEN ARE … TOTALLY, HOPELESSLY
CLUELESS ABOUT WOMEN.
10. Women’s Market = Opportunity No. 1.
2. Trends Worth Trillion$$$ II:
Boomer
Bonanza/
Godzilla Geezer.
Subject: Marketers & Stupidity
“It’s 18-44,
stupid!”
Subject: Marketers & Stupidity
“18-44 is
stupid,
stupid!”
Or is it:
2000-2010 Stats
18-44: -1%
55+: +21%
(55-64: +47%)
44-65: “New
Consumer
Majority” *
*45% larger than 18-43; 60% larger by 2010
Source: Ageless Marketing, David Wolfe & Robert Snyder
“The New Consumer
Majority is the only adult
market with realistic
prospects for significant
sales growth in dozens of
product lines for thousands
of companies.” —David Wolfe & Robert
Snyder, Ageless Marketing
“Baby-boomer
Women: The Sweetest
of Sweet Spots for
Marketers”
—David Wolfe and Robert
Snyder, Ageless Marketing
Aging/“Elderly”
$$$$$$$$$$$$
“I’m in charge!”
“NOT ACTING THEIR
AGE: As Baby Boomers
Zoom into Retirement,
Will America Ever Be the
Same?”
USN&WR Cover/06.01
“Sixty Is the
New Thirty”
—Cover/AARP/11.03
50+
$7T wealth (70%)/$2T annual income
50% all discretionary spending
79% own homes/40M credit card users
41% new cars/48% luxury cars
$610B healthcare spending/
74% prescription drugs
5% of advertising targets
Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
“Advertisers pay more to reach the kid
because they think that once someone hits
middle age he’s too set in his ways to be
susceptible to advertising. … In fact,
this notion of impressionable kids
and hidebound geezers is little
more than a fairy tale, a Madison
Avenue gloss on Hollywood’s cult
of youth.”—James Surowiecki (The New
Yorker/04.01.2002)
Read This!
Carol Morgan &
Doran Levy,
Marketing to the
Mindset of Boomers
and Their Elders
“Marketers attempts at
reaching those over 50 have
been miserably
unsuccessful. No market’s
motivations and needs are
so poorly understood.”—Peter
Francese, founding publisher, American Demographics
“Households headed by someone
40 or older enjoy 91% ($9.7T) of
our population’s net worth. … The
mature market is the dominant
market in the U.S. economy,
making the majority of
expenditures in virtually every
category.” —Carol Morgan & Doran Levy, Marketing to
the Mindset of Boomers and Their Elders
“The mature market
cannot be dismissed
as entrenched in its
brand loyalties.”
—Carol Morgan &
Doran Levy, Marketing to the Mindset of Boomers and Their
Elders
“Focused on assessing the
marketplace based on lifetime
value (LTV), marketers may
dismiss the mature market as
headed to its grave. The reality is
that at 60 a person in the U.S. may
enjoy 20 or 30 years of life.” —Carol
Morgan & Doran Levy, Marketing to the Mindset of Boomers and
Their Elders
“While the average American age
12 or older watched at least five
movies per year in a theater, those
40 and older were the most
frequent moviegoers, viewing 12
or more a year.”—Carol Morgan & Doran Levy,
Marketing to the Mindset of Boomers and Their Elders
“Women 65 and older spent $14.7
billion on apparel in 1999, almost as
much as that spent by 25- to 34-yearolds. While spending by the older
women increased by 12% from the
previous year, that of the younger
group increased by only 0.1%. But
who in the fashion industry is
currently pursuing this market?” —Carol
Morgan & Doran Levy, Marketing to the Mindset of Boomers and
Their Elders
“Elderly”
— Purchase “experiences” more than
just “things”
— Convenience / Comfort / Access /
Need to be
appreciated = Top Priorities
Source: Ken Dychtwald, Age Wave
Possession Experiences /“Desires for
things”/Young adulthood/to 38
Catered Experiences/ “Desires to be
served by others”/Middle adulthood
Being Experiences/“Desires for
trancendany experiences”/Late
adulthood
Source: David Wolfe and Robert Snyder/Ageless Marketing
POSSESSION EXPERIENCE: New car, home
entertainment system, new boat, first home …
CATERED EXPERIENCE: Thrilling theater
performance, experience of playing on an
exclusive golf course, throwing a highly
successful catered party …
BEING EXPERIENCE: Heading up a charity ball,
helping a young person master a problem,
learning an exciting new thing …
Source: David Wolfe and Robert Snyder, Ageless Marketing
“Catered experiences more
likely say ‘We have arrived!’
They mark the first stage of
being someone versus
becoming someone.”
Source: David Wolfe and Robert Snyder, Ageless Marketing
“ ‘Age Power’ will
st
21
rule the
century,
and we are woefully
unprepared.”
Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
No: “Target Marketing”
Yes:
“Target
Innovation” & “Target
Delivery Systems”
“The baby-boom
generation is the
first wellness
generation.”
—Paul Zane Pilzer/
The Wellness Revolution: The Next Trillion Dollar Industry
Wellness = $$$$$$$$
Currently $200B,
$1T by 2013
(Source: Paul Zane
Pilzer, The Wellness Revolution: The Next Trillion Dollar
Industry)
And ….
Hispanics:
38.5%
growth, 1990-2000, vs. 9.3%
overall*
*Source: Communispace/2003
“Relative to the
demand, the success
stories are pitifully
few” —Andrew Nuttney, Research Director, The
Research & Advisory Group; on marketing effectively
to Hispanics
“BofA Is Betting Its Future on the
Hispanic Market” *
“We expect to get no less than
80 % of our future growth in
retail banking from the Hispanic
market.” —Ken Lewis, CEO, BofA
*Fortune/04.2003
Duh!
“We want our associate population to mirror our
customer population at every level, from the executive
suite all the way to the retail floor. In the marketplace,
basically what I want to do is draw a concentric circle
around every one of our 2,300 stores, and I want the
assortment in that store to match the ethnicity of the
neighborhood it’s in. Some neighborhoods are all
Hispanic, so we can put in a full Hispanic format. That’s
what Super Saver is. All the signage is in both
languages. There’s a 100 percent Spanish-speaking
staff in the store.”—Larry Johnston, CEO, Albertsons
II. TAKING
ADVANTAGE.
3. Produce
Scintillating
“Experiences.”
“Experiences are as
distinct from services
as services are from
goods.”
Joseph Pine & James Gilmore, The Experience Economy:
Work Is Theatre & Every Business a Stage
“Club Med
is more
than just a ‘resort’; it’s a
means of rediscovering
oneself, of inventing an
entirely new ‘me.’ ”
Source: Jean-Marie Dru, Disruption
“The [Starbucks] Fix” Is on …
“We have identified a ‘third
place.’ And I really believe that
sets us apart. The third place is
that place that’s not work or
home. It’s the place our
customers come for refuge.”
Nancy Orsolini, District Manager
Experience: “Rebel Lifestyle!”
“What we sell is the ability for
a 43-year-old accountant to
dress in black leather, ride
through small towns and have
people be afraid of him.”
Harley exec, quoted in Results-Based Leadership
WHAT CAN BROWN DO FOR YOU?
The “Experience Ladder”
Experiences
Services
Goods
Raw Materials
1940: Cake from flour, sugar (raw
materials economy): $1.00
1955: Cake from Cake mix (goods
economy): $2.00
1970: Bakery-made cake (service
economy): $10.00
1990: Party @ Chuck E. Cheese
(experience economy) $100.00
Message:
“Experience” is the
“Last 80%”
P.S.: “Experience” applies to all work!
1940: Cake from flour, sugar (raw materials
economy): $1.00
1955: Cake from Cake mix (goods economy):
$2.00
1970: Bakery-made cake (service
economy):
$10.00
1990: Party @ Chuck E. Cheese
(experience economy)
$100.00
“I see us as being in
the art business. Art,
entertainment and mobile
sculpture, which,
coincidentally, also
happens to provide
transportation.”
Bob Lutz:
Source: NYT 10.19.01
“Lexus sells its cars as
containers for our
sound systems. It’s
marvelous.”—Sidney Harman/
Harman International
It’s All About EXPERIENCES: “Trapper” to
“Wildlife Damage-control Professional”
Trapper: <$20 per beaver pelt.
WDCP: $150/“problem beaver”;
$750-$1,000 for flood-control
piping … so that beavers
can stay.
Source: WSJ/05.21.2002
Moving Companies
WSJ/08.2003: “In Texas, They’ll fill
your empty fridge with brie and
wine. An outfit in New York
promises quick high-speed Internet
hookup. And when Allied Van Lines
finishes unloading your couch,
they’ll have a feng shui expert
figure out the right spot. …”
Duet … Whirlpool … “washing machine” to
“fabric care system” … white goods: “a sea of
undifferentiated boxes” … $400 to $1,300 …
“the Ferrari of washing machines” …
consumer: “They are our little mechanical
buddies. They have personality. When they are
running efficiently, our lives are running
efficiently. They are part of my family.” …
“machine as aesthetic showpiece” … “laundry
room” to “family studio” / “designer laundry
room” (complements Sub-Zero refrigerator and
home-theater center)
Source: New York Times Magazine/01.11.2004
LAN Installation Co.
to
Geek Squad (2% to 30%/Minn.)
“Car designers need to create a
story. Every car provides an
opportunity to create an adventure.
…
“The Prowler makes you smile.
Why? Because it’s focused. It has a
plot, a reason for being, a passion.”
Freeman Thomas, co-designer VW Beetle; designer
Audi TT
Hmmmm(?): “Only” Words …
Story
Adventure
Smile
Focus
Plot
Passion
Hire a
theater director, as
a consultant or
FTE!
First Step (?!):
Experience …
Cirque du Soleil
DO YOU MEASURE UP?*
*If not, why not?
“Most executives have no
idea how to add value to a
market in the metaphysical
world. But that is what the market
will cry out for in the future. There
is no lack of ‘physical’ products to
choose between.”
Jesper Kunde, Unique Now ... or Never [on the
excellence of Nokia, Nike, Lego, Virgin et al.]
Extraction & Goods:
Male dominance
Services &
Experiences: Female
dominance
“Women don’t buy
They
join them.”
brands.
EVEolution
4. Experiences+:
Embrace the
“Dream
Business.”
DREAM: “A dream is a complete
moment in the life of a client.
Important experiences that tempt
the client to commit substantial
resources. The essence of the
desires of the consumer. The
opportunity to help clients become
what they want to be.” —Gian Luigi
Longinotti-Buitoni
Common Products
“Dream” Products
Maxwell House
BVD
Payless
Hyundai
Suzuki
Atlantic City
New Jersey
Carter
Conners
CNN
Starbucks
Victoria’s Secret
Ferragamo
Ferrari
Harley-Davidson
Acapulco
California
Kennedy
Pele
Millionaire
Source: Gian Luigi Longinotti-Buitoni
The marketing of Dreams (Dreamketing)
Dreamketing: Touching the clients’
dreams.
Dreamketing: The art of telling stories and
entertaining.
Dreamketing: Promote the dream, not the
product.
Dreamketing: Build the brand around the
main dream.
Dreamketing: Build the “buzz,” the
“hype,” the “cult.”
Source: Gian Luigi Longinotti-Buitoni
Building the Creative Organization
Choose a creator: The cultural leader who gives the
company an aesthetic point of view.
Hire eclectically: Hire collaborators with different
cultures and past histories in order to balance rigor
with emotion.
Prepare vertically: Develop a rigorous understanding
of the product and the client.
Develop horizontally: Promote curiosity in unrelated
disciplines.
Lead emotionally: Engender passionate dedication
through vision and freedom.
Build for the long haul: Creativity requires a lifetime
commitment.
Source: Gian Luigi Longinotti-Buitoni
Constantly Magnify Perceived Value
Maximize your value-added by fulfilling the
dreams of your clients.
Only invest in what is valuable for your client.
Don’t let the short-term results weaken the
long-term value of your brand.
Balance rigorous control of the financial endeavor
with the emotional management of your brand.
Build a financial structure that allows risk-taking:
NO RISKS—NO DREAMS.
Establish long-term “price power” in order to avoid
the trap of the commodity product.
Source: Gian Luigi Longinotti-Buitoni
(Revised) Experience Ladder
Dreams Come True
Awesome Experiences
Solutions
Services
Goods
Raw Materials
Safe, On-time and ...
“We defined personality as a
market niche. We seek to
amaze, surprise, entertain.”
— Herb Kelleher, SWA / LUV
Furniture vs. Dreams
“We do not sell ‘furniture’ at Domain. We
sell dreams. This is accomplished by
addressing the half-formed needs in our
customers’ heads. By uncovering these
needs, we, in essence, fill in the blanks. We
convert ‘needs’ into ‘dreams.’ Sales are the
inevitable result.”
— Judy George, Domain Home Fashions
HORCHOW.COM
Furniture. Accessories. Dreams.
“The Ritz-Carlton
experience enlivens the
senses, instills wellbeing, and fulfills even
the unexpressed wishes
and needs of our guests.”
— from the Ritz-Carlton Credo
“The sun is setting on the Information Society—even before we
have fully adjusted to its demands as individuals and as
companies. We have lived as hunters and as farmers, we have
worked in factories and now we live in an information-based
society whose icon is the computer. We stand facing the fifth
kind of society: the Dream Society. … The Dream Society is
emerging this very instant—the shape of the future is visible
today. Right now is the time for decisions—before the major
portion of consumer purchases are made for emotional,
nonmaterialistic reasons. Future products will have to appeal to
our hearts, not to our heads. Now is the time to add emotional
value to products and services.” —Rolf Jensen/The Dream Society:How the
Coming Shift from Information to Imagination Will Transform Your Business
“In Denmark, eggs from free-range hens have
conquered over 50 percent of the market. Consumers
do not want hens to live their lives in small, confining
cages. They are willing to pay 15 percent to 20 percent
more for the story about animal ethics. This is classic
Dream Society logic. Both kind of eggs are similar in
quality, but consumers prefer eggs with the better
story. After we debated the issue and stockpiled 50
other examples, the conclusion became evident:
Stories and tales speak directly to the heart rather than
the brain. After a century where society was marked by
science and rationalism, the stories and values are
returning to the scene.” —Rolf Jensen/The Dream Society: How the
Coming Shift from Information to Imagination Will Transform Your Business
“Person 1 is the rational, planning being, and
Person 2 is the emotional and story-buying
entity. The last century disowned and repressed
Person 2—a rejection that is not surprising in a
technological era. Now Person 2 is back in
town—in the shops, on the Internet, in the
companies, in politics, in economics, even
science.” —Rolf Jensen/The Dream Society: How the Coming Shift from
Information to Imagination Will Transform Your Business
Six Market Profiles
1. Adventures for Sale
2. The Market for Togetherness, Friendship
and Love
3. The Market for Care
4. The Who-Am-I Market
5. The Market for Peace of Mind
6. The Market for Cnvictions
Rolf Jensen/The Dream Society: How the Coming Shift from
Information to Imagination Will Transform Your Business
5. Seek the
“Soul” of
“Experiences”:
[Mostly Ignored]
Design Rules!
Design Myths.
Unconventional
[Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
The I.D. [International Design] Forty*
Airstream … Alfred A. Knopf … Apple
Computer … Amazon.com …
Bloomberg … Caterpillar … CNN …
Disney … FedEx … Gillette … IBM …
Martha Stewart … New Balance …
Nickelodeon … Patagonia … The New
York Yankees … 3M … Etc.
* List No. 1, 1999
Unconventional
[Design] Messages
Not about ... “Lumpy Objects”!
Not about ... $79,000 objects
Design Transforms even the
[Biggest] Corporations!
TARGET … “the champion of
America’s new design democracy”
(Time) “Marketer of the Year 2000”
(Advertising Age)
Lady Sensor, Mach3, and …
$70M on developing the
OralB CrossAction toothbrush
23 patents, including 6 for the
packaging
Source: www.ecompany.com [06.00]
Design2002
LISTERINE’s …
PocketPaks
Westin’s …
Heavenly
Bed
Design’s place in
the universe.
And Tomorrow …
“Fifteen years ago companies
competed on price. Now it’s
Tomorrow
it’s design.”
quality.
Robert Hayes
All Equal Except …
“At Sony we assume that all products of
our competitors have basically the same
technology, price, performance and
Design is the only
thing that differentiates one
product from another in the
marketplace.”
features.
Norio Ohga
“Design is treated
like a religion at
BMW.”
Fortune
“The new Beetle fails at
most categories. The only
thing it doesn’t fail in is
drop-dead charm.”
Jerry Hirshberg, Nissan Design International
Object of Desire!
“Every now and then, a design comes
along that radically changes the way we
think about a particular object. Case in
point: the
iMac. Suddenly, a computer
is no longer an anonymous box. It is a
sculpture, an object of desire,
something that you look at.”
Katherine McCoy & Michael McCoy,
Illinois Institute of Technology
“The good 10 percent of
American product design comes
out of big-idea companies that
don’t believe in talking to the
customer. They're run by
passionate maniacs who make
everybody’s life miserable until
they get what they want.”
Bran Ferren, Applied Minds/Wired 1-2001
“We don’t have a good language to talk
about this kind of thing. In most people’s
vocabularies, design means veneer. … But
to me, nothing could be further from the
Design is
the fundamental soul
meaning of design.
of a man-made creation.”
Steve Jobs
Check Out the Language:
“Tomorrow it’s design …”
“Design is the only thing …”
“Design is … religion ...”
“Drop-dead charm …”
“Object of desire …”
“Passionate maniacs …”
“Fundamental soul …”
Bottom Line.
Design “is” … WHAT &
WHY I LOVE.
LOVE.
I
LOVE
my ZYLISS
Garlic Peeler!
All Time
No.1 (TP)
Ziplocs
Design “is” … WHY I
GET MAD.
MAD.
Wanted: THE
DESIGNER OF MY
RADIO SHACK
PHONE. Major
Reward!
Design is never
neutral.
DESIGN is the
principal difference
between love and
hate!
Hypothesis:
THE BASE CASE: I am a design fanatic. Though not
“artistic,” I love “cool stuff.” But it goes [much]
further, far beyond the personal. Design has become
a professional obsession. I SIMPLY BELIEVE THAT
DESIGN PER SE IS THE PRINCIPAL REASON
FOR EMOTIONAL ATTACHMENT [or detachment]
RELATIVE TO A PRODUCT OR SERVICE OR
EXPERIENCE. Design, as I see it, is arguably the
#1 DETERMINANT
of whether a productservice-experience stands out … or doesn’t.
Furthermore, it’s another “one of those things”
that damn few companies put – consistently – on the
front burner.
Message (?????): Men
cannot design for women’s
needs.
“Perhaps the macho look
can be interesting … if you
want to fight dinosaurs. But
now to survive you need
intelligence, not power and
aggression. Modern intelligence
means intuition—it’s female.”
Source: Philippe Starck, Harvard Design Magazine (Summer 1998)
6.
Brand it!
“WHO ARE
WE?”
“WHAT’S
OUR
STORY?”
“We are in the twilight of a society based on data. As
information and intelligence become the domain of
computers, society will place more value on the one
human ability that cannot be automated: emotion.
Imagination, myth, ritual - the language of emotion will affect everything from our purchasing decisions
Companies will
thrive on the basis of their stories
and myths. Companies will need to understand
to how we work with others.
that their products are less important than
their stories.”
Rolf Jensen, Copenhagen Institute for Future Studies
“Apple opposes, IBM solves,
Nike exhorts, Virgin enlightens,
Sony dreams, Benetton
protests.
… Brands are
not nouns but verbs.”
Source: Jean-Marie Dru, Disruption
“EXACTLY
HOW ARE WE
DRAMATICALLY
DIFFERENT?”
“You do not merely want to
be the best of the best. You
want to be considered
the only ones who do
what you do.”
Jerry Garcia
Brand = You Must Care!
“Success means never
letting the competition
define you. Instead you have
to define yourself based on a
point of view you care deeply
about.”
Tom Chappell, Tom’s of Maine
“WHY DOES IT
MATTER TO
THE CLIENT?”
“EXACTLY HOW DO I
PASSIONATELY
CONVEY THAT
DRAMATIC
DIFFERENCE TO THE
CLIENT ?”
Rules of “Radical Marketing”
Love + Respect Your Customers!
Hire only Passionate Missionaries!
Create a Community of Customers!
Celebrate Craziness!
Be insanely True to the Brand!
Sam Hill & Glenn Rifkin, Radical Marketing
(e.g., Harley, Virgin, The Dead, HBS, NBA)
Branding: Is-Is Not “Table”
TNT is not:
TNT is:
TNT is not:
Juvenile
Contemporary
Mindless
Meaningful
Elitist
Predictable
Suspenseful
Dull
Frivolous
Exciting
Superficial
Powerful
Old-fashioned
Slow
Self-important
Message …
Is Not >> Is
III. SUMMARY.
7. Summary:
O-P-P-O-R-T-U-N-I-T-Y.
?????????
Home Furnishings … 94%
Vacations … 92% (Adventure Travel … 70%/ $55B travel equipment)
Houses … 91%
D.I.Y. (major “home projects”) … 80%
Consumer Electronics … 51%
Cars … 68% (90%)
All consumer purchases … 83%
Bank Account … 89%
Household investment decisions … 67%
Small business loans … 70%
Health Care … 80%
50+
$7T wealth (70%)/$2T annual income
50% all discretionary spending
79% own homes/40M credit card users
41% new cars/48% luxury cars
$610B healthcare spending/
74% prescription drugs
5% of advertising targets
Ken Dychtwald, Age Power: How the 21st
Century Will Be Ruled by the New Old
“Baby-boomer
Women: The
Sweetest of Sweet
Spots for
Marketers”
—David Wolfe and Robert
Snyder, Ageless Marketing
“Experiences are as
distinct from services
as services are from
goods.”
Joseph Pine & James Gilmore, The Experience Economy:
Work Is Theatre & Every Business a Stage
DREAM: “A dream is a complete
moment in the life of a client.
Important experiences that tempt
the client to commit substantial
resources. The essence of the
desires of the consumer. The
opportunity to help clients become
what they want to be.” —Gian Luigi
Longinotti-Buitoni
“We don’t have a good language to talk
about this kind of thing. In most people’s
vocabularies, design means veneer. … But
to me, nothing could be further from the
Design is
the fundamental soul
meaning of design.
of a man-made creation.”
Steve Jobs
Read these
books!*
*Damn it.
Marketing to Women, Martha Barletta
EVEolution: The Eight Truths of Marketing to Women, Faith
Popcorn & Lys Marigold
Ageless Marketing, David Wolfe & Robert Snyder
Marketing to the Mindset of Boomers and Their Elders, Carol
Morgan & Doran Levy
Selling Dreams: How to Make Any Product Irresistible, Gian Luigi
Longinotti-Buitoni
The Dream Society: How the Coming Shift from Information to
Imagination Will Transform Your Business, Rolf Jensen
Trading Up: The New American Luxury, Michael Silverstein &
Neil Fiske
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Issue Y2K The Great War for Talent!