When it comes to domains
where pure innovation is key, offering-centric marketing is
indeed inevitable. In these domains, preliminary research is
mostly unavailable and futuristic predictions from market analysts
tend to become the focus area of market intelligence and God
knows upon what such predictions are based most of the time.
Investing in new products and service launches may in some cases
prove less costly than going for expensive, long-winded market
research when market knowledge is low, target customer understanding
is feeble and product awareness almost doesn’t exist. Offering-centric
marketing therefore acts as an enabler when the requirements
are virtually impossible to measure beforehand. Very often,
the very requirement for that newfangled product or service
will be revealed when buyers can actually see or use it; the
more conceptual the service, the more you need to confront it
to the public in order to understand their reactions. This method
is also perfectly suitable to the generation of top-of-the-mind
awareness around a product or a brand which is little known,
and also when you have little money left to spend on advertising.
The downside of offering-centric marketing is manifold though.
Poor monitoring of that type of marketing could indeed prove
very costly. Offering-centric marketing may actually result
in some sort of chain production of useless products, with no
clients, no sales force and no future in sight. As a conclusion,
however interesting offering-centric marketing may be, it really
is a few cents short of a penny, and other approaches will be
necessary for us to better grasp customer incentives and desires.
The second type of marketing approach I have isolated here
is also well-known. I shall name it demand-centric marketing.
The principles guiding demand-centric marketing are straightforward,
or so it seems at first sight. The starting point is the target
population. One takes a sample out of that population, interview
that sample, deduce what the market is after and build new (or
adapt existing) products to match the needs and desires of the
target population. This method is really valuable in so far
as it forces product/service managers to think about their clients
first. It prevents the design of far-fetched unrealistic products
and it brings realism into R&D whereas R&D has sometimes
that tendency to go haywire with haphazard new product development.
This approach is also about alleviating risk by adapting products
or services to demand. Having said that, there are too many
people asserting that demand-centric marketing should supersede
offering-centric marketing altogether. Such over-simplification
would not do here, mainly when it comes to ICT products or services.
As with offering-centric marketing, there are also a number
of danger areas revealed by this offer approach.
First of all, assessing the needs or desires of a given target
population which you do not know is mostly useless and it can
also prove very costly. Similarly, carrying out quantitative
in-depth measurements of customer feedback to stimuli that apply
to products barely understood by a population is not a good
idea. To prove my point, I just want to quote
a real-life example, which originates from my work on the launch
of a webconferencing service at France Télécom (branded as viaconferencing.com). One of the main
questions we had was related to the pricing of that new service.
As always with communications services, we had to choose the
right ‘business model’ for the new service. Choosing the right
business model is always a mind-boggling problem for communications
services (pay-per-use, by the minute, by the hour, packaged
use-as-much-as-you-like prices, combined packaged and usage-based
prices etc. the list is almost infinite). In that particular
case, it became even more complex and we almost came to a deadlock.
As a matter of fact, way back in 2001, our target population
could only grasp the concept that we wanted to promote with
utmost difficulty. Notwithstanding our sustained efforts at
educating our sample users, their understanding of our offering
remained limited; not that it mattered that much or even prevented
them from using the system and becoming more familiar with it.
On the contrary, we realised that hands-on experience could
help them form their own opinion on webconferencing. This is
why most of our task during this pilot phase consisted in recruiting
new users so that they would gain hands-on experience and then
form opinions and express them. When it came to ‘pricing’ structure
and pricing level, even hands-on users found it difficult to
give us their opinion on the subject. As a consequence, measuring
pricing acceptance at that stage meant actually running the
risk of spending vast amounts on surveys with few hopes of ever
being able to make anything of the results. At the end of the
day, when asking users –who may not even be the decision makers-
about price levels, one often runs the risk of gathering answers
such as “it shouldn’t
be too expensive, you know”, which are not going to be very
helpful at all. As a conclusion, demand-centric marketing cannot
supersede offering-centric marketing so easily. The situation
is slightly more complex than that, and it is certainly not
a case of offering-centric = bad or demand-centric = good. Both
have to be taken into account.=The third approach that needs
to be described here is what we have decided to name ‘desire-centric’
Marketing. Desire-centric marketing is different from demand-centric
marketing in so far as it doesn’t assume that consumers (or
even enterprise customers) are rational. That type of marketing
appeals to hidden-desires and client’s deep motivations. It
is a kind of marketing that fosters innovation, and it enables
marketeers to unveil new opportunities and new markets. It relies
more heavily on sociology. In that sense,
desire-centric marketing is more sophisticated and more innovative
than other forms of marketing.
Yet, at the same time, it is also less predictable and more
creative. Desire-centric marketing is more a question of analysing
trends and predicting fashion and fads than carefully and thoroughly
gathering and measuring customer feedback. That type of marketing
is therefore time-bound because fads tend to evolve very quickly.
They do disappear quickly and are replaced by other fads as
part of a cyclical process. That kind of marketing approach
is more qualitative than others. It mostly focuses on the emergence
of new trends, whether they be long-term or short-lived, whether
they be mainstream or just weak signals. Those interested in
delving deeper into such subjects should refer to Bernard Cova
and Olivier Badot’s research papers and the reference
books they quote.
In essence, desire-centric marketing is geared towards
consumer marketing. Yet, it would be wrong to think that it
doesn’t apply to B2B or Project marketing at all. Most people
think that B2B is purely rational and I can assure you it’s
far from being true. In fact, it’s just the other way round
most of the time. As a matter of fact, there are myriad ways
of writing RFP’s and of justifying one’s choices once tenders
have been submitted. Besides, sales persons know how to work
their ways around such processes by approaching CXO’s in order to influence future RFP’s, overtake
their competitors or even just ensure that there won’t be any
at all (this is of course not applicable to procurement processes
related to local and central government bodies, which are regulate
by stricter rules). At the end of the day, B2B marketing is
not at all rational.