marketing in a flat world

04/13/2005 11:34:00 AM
Tom Friedman's new book, The World is Flat-A Brief History of the 21st Century, explores the concept of the leveled global playing field. Friedman argues that due to developments in technology combined with increasingly open global markets, countries, companies and individuals are now operating and competing on a playing field that's more even than ever before.

Friedman's book highlights the multiplicity of technological convergences that enable the smaller and flatter world.

So what does it mean for marketing, if the world is smaller and oriented in a more horizontal plane?

Some observations from Influx:

1. Brands can and will come from anywhere. The idea that the Western world has a monopoly on branding is a fallacy. Emerging market brands will come to our shores, with China probably leading the way, first with technology and then automobiles.

India will continue to draw its strength from providing customer service and support. It's possible that in the near future a new global financial brand could come from the Indian outsourcing providers.

McKinsey has recently published an interesting report on pathways for global companies from the emerging world. Note-It's available only to premium subscribers.

2. The talent needed to develop marketing campaigns is also not the sole domain of the Western world. Outsourcing is already happening in the highest ends of the product design process. It's not inconceivable that some agency functions could also be outsourced, but language and cultural nuances are formidable barriers preventing the outsourcing of creative work.

3. Western companies will increasingly look first to the emerging markets. Finding gold in the rapidly growing emerging economies is something global companies have been committed to for a number of years, this trend will only continue. The big change will be that the brightest and best marketers are likely to be deployed overseas first, where their skills are most needed, in markets that will increasingly be considered priority.

4. If you follow Freidman's argument to its logical conclusion, the developing world all wants to be like free-market capitalist America. This means lots of determined individuals, hungry for success and achievement, looking for a way out.

5. No single American or Western brand can afford to rest on its laurels; they cannot be seduced into believing that they are somehow superior, more sophisticated and immune from competition. We saw it first with Japan, then with Korea, now China, India and Eastern Europe all seemingly poised to follow in their wake. Competition can and will come from anywhere.

6. The only option for long-term survival is branding and innovation, since it's only by investing in both, that a brand can truly isolate and protect itself. These investments need to be considered investments, not expenses and to succeed, brands need to be managed for the long-tern, not just the 20 months that's the average tenure of a CMO today.

7. There's a huge opportunity for brands that use technology to connect and those that have single-minded universal truth, to capitalize on this flattening. Think for example, CNN, MTV, Yahoo, Google, EBay (already there), Disney(only if it continues to produce relevant content) and for the classic American brands; for example, Coca-Cola, Levi's, and Pepsi, only if they can transcend Americana and connect glocally.

The media brands will be able to use technology to enable consumer interactivity to play their part in flattening the world and those non-media brands will have the opportunity to develop their own brand media to make these connections possible and be relevant on a glocal level.
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