After years of paying lip service to the importance of marketing while engineering
and design ruled the roost, technology companies are learning that maybe they need
to be more like other businesses after all.
The "build it and they will buy" mentality that once prevailed is rapidly falling by
the wayside as tech products become less differentiated and increasingly commod-
itized, with price often serving as a key driver of customer behavior. Customers
are better informed than ever and can afford to be choosy.
As a result, the tech sector is finding a need for marketing to take a more central
role that goes well beyond marketing communications. Instead, marketing's charge is
to forge a better understanding of customers, what makes them tick, what ticks them
off, and how it all combines to shape offers that solidify their relationship with
the brand—and, not so coincidentally, to contribute to financial performance.
Microsoft is one tech leader that's grabbing a lot of attention for its shift in this
direction. Since 2002, it has increased its dependence on marketing's understanding
of customers' wants, needs, capabilities, pricing sensibilities, and expectations to
help steer development of relevant products.
But this thrust toward greater customer-centricity doesn't necessarily come naturally.
There's a tendency toward, well, arrogance that can cause even the brightest lights
in this new environment to flicker.
Consider Apple. It's a fruit you can't avoid polishing these days, considering its
phenomenal success at establishing itself as not just a tech mover and shaker but
also an all-round innovative lifestyle brand.
Using its long-standing reputation for its user-friendly computers and operating
system, with its culture-changing iPod/iTunes offerings as key planks to its platform,
Apple has worked to extend its consumer franchise through vehicles such as the
consistently packed Apple stores.
The buzz has helped it achieve consistent gains in brand equity value—up 16% to nearly
$8 billion in 2005, making it one of last year's big winners in Business Week's annual
survey of best global brands. More recently, Apple was identified as the most
influential global brand in a survey by online magazine BrandChannel.
But, even the strongest brands—in any space—can come undone if they don't follow the
fundamentals. And for all that Apple has done right, it's also taken some missteps:
The furor over Apple's perceived non-responsiveness to iPod's limited shelf-life
thanks to a battery that died after 18 months, replaceable only by one carrying a
price tag almost equal to that of an entirely new device (a problem since rectified
after a class-action lawsuit); the furor over the iPod's easily damaged casing (also
rectified); the ongoing grumbling over long waits and uneven customer service at the
Apple stores, with many complaints of a shortage of true geniuses manning the
Genius Bars.
Apple, for all it's done right and wrong, provides a lesson for others in a tech world
that's learning to embrace a customer focus: A brand is built from the inside out as
a function of deeds, not words. All the cool advertising, sleek designs, and engineering
miracles will not count for much if each customer touchpoint—before, during, and after
the sale—isn't consistently upholding everything that goes into what the brand is
intended to represent.
Customer service must be the mantra in this brave new world. Problem-resolution is a
"make it or break it" brand-building moment, particularly in an era when individuals
who may have a negative experience find it easy share the word with the world in a
nanosecond via blogs, message boards, and other consumer-generated media.
Apple, and others in this space, must ensure that its customer-centric approach
permeates all of its customer interactions, lest it face a different type of revolution
altogether—this one led by its customers.
Source: http://www.marketingprofs.com/6/davis1.asp; Scott Davis is a senior partner
of Prophet (www.prophet.com), a consulting firm specializing in the integration of brand,
business, and marketing strategies.1
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