9:59:59.000,9:59:59.000 On behalf of our President [br]and CEO, Greg Case, 9:59:59.000,9:59:59.000 and chief marketing officer,[br]Phil Clement, 9:59:59.000,9:59:59.000 it's a real honor for Aon to be [br]the sponsor of this event today. 9:59:59.000,9:59:59.000 And for many of you, [br]you might know that Aon 9:59:59.000,9:59:59.000 is now a UK-based company,[br]but it's also important for you to know 9:59:59.000,9:59:59.000 that the Aon Foundation, [br]for the past 25 years, 9:59:59.000,9:59:59.000 has made it a priority to support[br]educational activities and 9:59:59.000,9:59:59.000 cultural institutions like [br]the Chicago Humanities Festival 9:59:59.000,9:59:59.000 and the Charter Humanist Circle,[br]that does so much to enrich 9:59:59.000,9:59:59.000 the lives of all of us in this room[br]and everybody in Chicago. 9:59:59.000,9:59:59.000 And even though we're now in the UK,[br]I want everybody in this room to know 9:59:59.000,9:59:59.000 that we intend to continue [br]this commitment, 9:59:59.000,9:59:59.000 and it will remain high on our[br]priority list for the things we do 9:59:59.000,9:59:59.000 to support the community of [br]Chicago for many years to come. 9:59:59.000,9:59:59.000 [applause] 9:59:59.000,9:59:59.000 On behalf of my colleagues [br]at Aon, I want to thank 9:59:59.000,9:59:59.000 the Charter Humanist Circle[br]and its members 9:59:59.000,9:59:59.000 for their very valuable support,[br]and I also want to thank 9:59:59.000,9:59:59.000 Northwestern University Law [br]School for allowing us to use 9:59:59.000,9:59:59.000 the auditorium today. 9:59:59.000,9:59:59.000 At Aon, we believe in the mantra[br]"If we can't measure it, 9:59:59.000,9:59:59.000 we don't do it." 9:59:59.000,9:59:59.000 And because of that, [br]it's a real honor for us 9:59:59.000,9:59:59.000 to be here supporting and[br]introducing Dr. Philip Kotler. 9:59:59.000,9:59:59.000 Dr. Kotler has defined marketing[br]as "the science and art 9:59:59.000,9:59:59.000 of exploring, creating, and [br]delivering value to satisfy 9:59:59.000,9:59:59.000 the needs of a target [br]market at a profit." 9:59:59.000,9:59:59.000 He is recognized around the world[br]as one of the foremost experts 9:59:59.000,9:59:59.000 on business, of marketing,[br]and for his insights on 9:59:59.000,9:59:59.000 how exemplary marketing has[br]the creativity and the power 9:59:59.000,9:59:59.000 to influence global [br]consumers every day. 9:59:59.000,9:59:59.000 In that spirit, I hope you'll join [br]me in welcoming Dr. Philip Kotler. 9:59:59.000,9:59:59.000 [applause] 9:59:59.000,9:59:59.000 Now before I turn the[br]microphone over to Dr. Kotler, 9:59:59.000,9:59:59.000 in the spirit of marketing, maybe[br]many of you in this room know 9:59:59.000,9:59:59.000 that Aon does a great many[br]things globally, but one of the things 9:59:59.000,9:59:59.000 that we've done that has created [br]tremendous brand awareness 9:59:59.000,9:59:59.000 for our firm is our sponsorship[br]of Manchester United football team, 9:59:59.000,9:59:59.000 which by today won 2 to 1 [br]versus Arsenal 9:59:59.000,9:59:59.000 [applause] 9:59:59.000,9:59:59.000 We're at--[br]Right now we're 9:59:59.000,9:59:59.000 at the top of the [br]premiere league. 9:59:59.000,9:59:59.000 So in that spirit,[br]I would like to present 9:59:59.000,9:59:59.000 Dr. Kotler with his very own,[br]personalized Manchester United shirt. 9:59:59.000,9:59:59.000 [Kolter]: Thank you. 9:59:59.000,9:59:59.000 David, thank you very much. 9:59:59.000,9:59:59.000 And I will wear this,[br]in a fantasy way. 9:59:59.000,9:59:59.000 [laughter] 9:59:59.000,9:59:59.000 May I say, I really appreciate[br]your introduction. 9:59:59.000,9:59:59.000 Of all the introductions I've received,[br]yours is the most recent. 9:59:59.000,9:59:59.000 [laughter] 9:59:59.000,9:59:59.000 Nation, nation... 9:59:59.000,9:59:59.000 Oh, you may know of[br]Steven Colbert, 9:59:59.000,9:59:59.000 so I can't pull it off the same way. 9:59:59.000,9:59:59.000 There will be two groups, [br]with respect to marketing. 9:59:59.000,9:59:59.000 There will be a group that[br]doesn't like marketing, 9:59:59.000,9:59:59.000 and I'm going to give you[br]why they don't like marketing 9:59:59.000,9:59:59.000 and the justifications.[br]I will also tell you 9:59:59.000,9:59:59.000 there's another group who loves[br]marketing, so before we're through, 9:59:59.000,9:59:59.000 you will be totally confused,[br]or at least opinionated. 9:59:59.000,9:59:59.000 So, what I want to do is[br]tell you that-- 9:59:59.000,9:59:59.000 These are called [br]confessions of a marketer. 9:59:59.000,9:59:59.000 That's, by the way, borrowed[br]from David Ogilvy, 9:59:59.000,9:59:59.000 who wrote a wonderful book called[br]"Confessions of an Advertising Man." 9:59:59.000,9:59:59.000 And let me move on and say[br]why is marketing a topic 9:59:59.000,9:59:59.000 for the humanities? 9:59:59.000,9:59:59.000 And we would say that[br]there's a couple of reasons. 9:59:59.000,9:59:59.000 One: I regard marketing[br]as a humanistic subject 9:59:59.000,9:59:59.000 because marketing has [br]affected our lifestyles; 9:59:59.000,9:59:59.000 has created, not only affected[br]a lifestyle, but created lifestyles, 9:59:59.000,9:59:59.000 and we should be, from a point[br]of view of popular interest, 9:59:59.000,9:59:59.000 interested in that. 9:59:59.000,9:59:59.000 And it really-- 9:59:59.000,9:59:59.000 I want to say that marketing[br]is very American, 9:59:59.000,9:59:59.000 that it's beginnings are [br]very American. 9:59:59.000,9:59:59.000 That doesn't mean there weren't[br]manifestations of marketing earlier, 9:59:59.000,9:59:59.000 and as a matter of fact, I'd like[br]to give you a very short history 9:59:59.000,9:59:59.000 of marketing, so that you understand[br]what we mean by the word. 9:59:59.000,9:59:59.000 As a matter of fact, if you took a[br]dictionary, a Webster's dictionary, 9:59:59.000,9:59:59.000 in the year 1900, and looked up[br]the word marketing, 9:59:59.000,9:59:59.000 you would not find it in the dictionary. 9:59:59.000,9:59:59.000 Yes, you would find the word market,[br]but not the word marketing. 9:59:59.000,9:59:59.000 If you then picked a dictionary...[br]1910. You would find the word 9:59:59.000,9:59:59.000 marketing in it, because marketing[br]is about 100 years old. 9:59:59.000,9:59:59.000 And it's much more than selling.[br]So let me show you... 9:59:59.000,9:59:59.000 Let's start...[br]Let's start biblically. 9:59:59.000,9:59:59.000 [laughter][br]Let's start biblically. 9:59:59.000,9:59:59.000 Who is the marketer[br]in this picture? 9:59:59.000,9:59:59.000 This is the biblical narrative.[br]Who was the first marketer in the world? 9:59:59.000,9:59:59.000 I hear Eve...[br]The snake. 9:59:59.000,9:59:59.000 I hate to admit it, because snake [br]sounds like sneaky, and so on 9:59:59.000,9:59:59.000 and so forth. 9:59:59.000,9:59:59.000 But the fact is that it was [br]the snake who sold Eve 9:59:59.000,9:59:59.000 on getting Adam to eat an apple.[br]So it goes way back. 9:59:59.000,9:59:59.000 At least selling goes way back.[br]Now let's go further. 9:59:59.000,9:59:59.000 Here is the father of marketing. 9:59:59.000,9:59:59.000 What an insult to him![br][laughter] 9:59:59.000,9:59:59.000 I mean, that's Aristotle. 9:59:59.000,9:59:59.000 Recently I was at a group,[br]little party, and we were speculating 9:59:59.000,9:59:59.000 who we would like to meet most[br]if we had an hour with such a person, 9:59:59.000,9:59:59.000 and it boiled down to Plato,[br]Socrates, or Aristotle. 9:59:59.000,9:59:59.000 That's a hard one. 9:59:59.000,9:59:59.000 It turns out that my vote [br]went for Aristotle. 9:59:59.000,9:59:59.000 Aristotle was Google, at the time.[br]He knew more about everything 9:59:59.000,9:59:59.000 than anyone in the world.[br]He wrote on science, politics, 9:59:59.000,9:59:59.000 economics, rhetoric, art,[br]and everything. 9:59:59.000,9:59:59.000 Now, why do I say that he had[br]some marketing impact? 9:59:59.000,9:59:59.000 Let me read the definition of rhetoric.[br]He's not the founder of rhetoric, 9:59:59.000,9:59:59.000 by the way. The founders were [br]the sophists, around 600 B.C. 9:59:59.000,9:59:59.000 They were a group who wanted to use[br]selling and speech and persuasion 9:59:59.000,9:59:59.000 for their own devious ends.[br]But Aristotle put the i-- 9:59:59.000,9:59:59.000 the discipline of rhetoric on its feet. 9:59:59.000,9:59:59.000 Rhetoric is the art that aims to improve[br]the facility of speakers or writers 9:59:59.000,9:59:59.000 who attempt to inform, persuade, [br]or motivate particular audiences 9:59:59.000,9:59:59.000 in specific situations.[br]It is the faculty of the observing, 9:59:59.000,9:59:59.000 in any given case, the available [br]means of persuasion. 9:59:59.000,9:59:59.000 So, in a sense, he could be[br]the father of selling. 9:59:59.000,9:59:59.000 The idea of getting someone [br]to do something that they might 9:59:59.000,9:59:59.000 not have done otherwise.[br]So, let's move on, 9:59:59.000,9:59:59.000 about other manifestations of marketing.[br]I know many of you cannot necessarily 9:59:59.000,9:59:59.000 read this, so I will read it,[br]but the first department store 9:59:59.000,9:59:59.000 opened when, and in what country?[br]Normally if you're in France 9:59:59.000,9:59:59.000 and you ask the question,[br]they would say of course 9:59:59.000,9:59:59.000 we invented the department store.[br]It was about 1845. 9:59:59.000,9:59:59.000 The same time we invented [br]paperweights and some other things. 9:59:59.000,9:59:59.000 But it turns out that the first [br]department store was in Japan. 9:59:59.000,9:59:59.000 Mitsui company, which is still[br]alive and well. 9:59:59.000,9:59:59.000 So that's where one of our [br]retailing forms started. 9:59:59.000,9:59:59.000 The next one is the first [br]newspaper that carried an ad. 9:59:59.000,9:59:59.000 There were newspapers early,[br]but the first ad appeared in England, 9:59:59.000,9:59:59.000 in 1652, and it advertised coffee.[br]And then, the first ad agency 9:59:59.000,9:59:59.000 started a little later.[br]Well, much later. 9:59:59.000,9:59:59.000 N.W. Ayer, which is still a [br]prosperous advertising agency. 9:59:59.000,9:59:59.000 First time a brand was put on a [br]commodity, the commodity being soap, 9:59:59.000,9:59:59.000 the brand name was Pear's soap.[br] 9:59:59.000,9:59:59.000 And then the first packaging[br]appeared a little later, 9:59:59.000,9:59:59.000 and finally we had a marketing[br]research department formed. 9:59:59.000,9:59:59.000 So, now the word markets[br]has been around all these years. 9:59:59.000,9:59:59.000 The Middle Ages had markets.[br]In fact, whenever-- 9:59:59.000,9:59:59.000 I would even say the agora,[br]in ancient Greece-- 9:59:59.000,9:59:59.000 that means the marketplace--[br]In ancient Greece, 9:59:59.000,9:59:59.000 people would come on a particular [br]day to sell things. 9:59:59.000,9:59:59.000 In the Middle Ages, [br]there were market days. 9:59:59.000,9:59:59.000 The word marketing wasn't there.[br]It was just market. 9:59:59.000,9:59:59.000 And trade was always there,[br]because trade, through history, 9:59:59.000,9:59:59.000 has taken place between people[br]and regions and countries. 9:59:59.000,9:59:59.000 So all that is there, and it was[br]in the decade of the 1900s 9:59:59.000,9:59:59.000 that marketing books first appeared.[br]And the interesting thing is 9:59:59.000,9:59:59.000 who wrote those first marketing books.[br]Were they sociologists? 9:59:59.000,9:59:59.000 What was the discipline of the people[br]who wrote the first marketing books? 9:59:59.000,9:59:59.000 Any guesses? 9:59:59.000,9:59:59.000 They weren't physicists or chemists. 9:59:59.000,9:59:59.000 They were economists. 9:59:59.000,9:59:59.000 So why would economists start[br]a subject called marketing? 9:59:59.000,9:59:59.000 And the answer is: they were[br]disillusioned economists. 9:59:59.000,9:59:59.000 [laughter] 9:59:59.000,9:59:59.000 They couldn't find any mention[br]of advertising in the discourse 9:59:59.000,9:59:59.000 of economists. In other words,[br]never did Adam Smith, 9:59:59.000,9:59:59.000 Thomas Malthus, David Ricardo,[br]even Alfred Marshall, and so on, 9:59:59.000,9:59:59.000 they rarely talked about other[br]forces that shaped demand. 9:59:59.000,9:59:59.000 The only force that shaped demand[br]in their mind was price. 9:59:59.000,9:59:59.000 You know the famous curve.[br]Raise the price, demand will go down, 9:59:59.000,9:59:59.000 lower the price, you can sell more.[br]Price was the only thing 9:59:59.000,9:59:59.000 that affected demand.[br]So these economists, 9:59:59.000,9:59:59.000 or institutional economists, said "Hey,[br]you've got to factor in advertising." 9:59:59.000,9:59:59.000 You've got to factor in retail stores,[br]whole sales, jobbers, agents. 9:59:59.000,9:59:59.000 And it was the neglect of [br]the classical economists 9:59:59.000,9:59:59.000 to not really texture the marketplace[br]and the way an economy worked 9:59:59.000,9:59:59.000 that led to marketing.[br]So marketing is technically 9:59:59.000,9:59:59.000 a branch of economics. 9:59:59.000,9:59:59.000 Now who helped developed [br]this field of marketing? 9:59:59.000,9:59:59.000 Now, probably you don't [br]recognize maybe anyone here. 9:59:59.000,9:59:59.000 There's one person you [br]might recognize. 9:59:59.000,9:59:59.000 I don't know if you can see[br]some of these faces, 9:59:59.000,9:59:59.000 but someone recognize anyone there? 9:59:59.000,9:59:59.000 Yeah? 9:59:59.000,9:59:59.000 Dale Carnegie.[br]Dale Carnegie is here, 9:59:59.000,9:59:59.000 and his book was "How to [br]Win Friends and Influence People," 9:59:59.000,9:59:59.000 because in doing this, [br]I wanted to find out 9:59:59.000,9:59:59.000 who was the exemplar [br]of the selling method. 9:59:59.000,9:59:59.000 "How to Win Friends[br]and Influence People" 9:59:59.000,9:59:59.000 But let me give you the whole picture. 9:59:59.000,9:59:59.000 Ernest Dichter. Some of [br]you may know of. 9:59:59.000,9:59:59.000 He was a motivational psychologist,[br]and he could explain why people 9:59:59.000,9:59:59.000 didn't like to eat prunes, why cigars [br]were offending some people, 9:59:59.000,9:59:59.000 and all kinds of things.[br]And his book called 9:59:59.000,9:59:59.000 "The Study of Desire."[br]He apparently studied with 9:59:59.000,9:59:59.000 Sigmund Freud, and he brought [br]that kind of mind to marketing. 9:59:59.000,9:59:59.000 But he had an opponent named[br]Alfred Pollitz, who was not 9:59:59.000,9:59:59.000 a head shrinker--We call [br]him a... a nose counter. 9:59:59.000,9:59:59.000 The expressions we would use if[br]you were very psychological, 9:59:59.000,9:59:59.000 you were a head shrinker, and[br]otherwise, you were a nose counter. 9:59:59.000,9:59:59.000 Namely, a surveyor. You surveyed--[br]You found out what percentage 9:59:59.000,9:59:59.000 of people were of a certain age and [br]why did they buy a particular product. 9:59:59.000,9:59:59.000 Julius Rosenwald was very much [br]behind the formation of 9:59:59.000,9:59:59.000 the Sears company, which was[br]a important episode in 9:59:59.000,9:59:59.000 the development of our retail chains. 9:59:59.000,9:59:59.000 Lester Wunderman deserves [br]credit as exemplifying the use 9:59:59.000,9:59:59.000 of direct mail and catalogs.[br]That you can sell more directly. 9:59:59.000,9:59:59.000 You don't have to be in the store.[br]You can get people to order goods 9:59:59.000,9:59:59.000 by mail and phone. 9:59:59.000,9:59:59.000 David Ogilvy is the exemplar[br]advertising person, 9:59:59.000,9:59:59.000 then Stanley Marcus,[br]of Neiman Marcus, 9:59:59.000,9:59:59.000 was a fella who could walk into[br]any retail store and give them 9:59:59.000,9:59:59.000 100 suggestions on how to improve [br]the layout, the size of the aisles, 9:59:59.000,9:59:59.000 and make a difference in the [br]voulme of business. 9:59:59.000,9:59:59.000 Edward Bernays is the father of[br]public relations in the United States. 9:59:59.000,9:59:59.000 His name has sort of become [br]obscure, but he really was 9:59:59.000,9:59:59.000 a very important person.[br]The word propaganda 9:59:59.000,9:59:59.000 was often used in connection with his [br]work, because people thought it was 9:59:59.000,9:59:59.000 a model to motivate you to feel [br]a certain way about anything, 9:59:59.000,9:59:59.000 regardless of the standards involved.[br]And then there's Dale Carnegie. 9:59:59.000,9:59:59.000 In any case, how did [br]marketing get its start? 9:59:59.000,9:59:59.000 Marketing got its start [br]in sales departments. 9:59:59.000,9:59:59.000 Every company has a sales group.[br]And the sales people really want 9:59:59.000,9:59:59.000 to be in the office of a customer,[br]because that's the only way 9:59:59.000,9:59:59.000 something happens. So they don't[br]want to do a lot of homework. 9:59:59.000,9:59:59.000 For example, three things they[br]didn't want to do. 9:59:59.000,9:59:59.000 They didn't want to do consumer[br]research in a systematic way, 9:59:59.000,9:59:59.000 because that's taking their time[br]away from selling to customers. 9:59:59.000,9:59:59.000 Secondly, they would've liked [br]someone else to find leads. 9:59:59.000,9:59:59.000 Now a lead means a prospect.[br]In fact, we distinguish between 9:59:59.000,9:59:59.000 a hot lead: "Oh boy, he's ready[br]to buy. He even called us to buy." 9:59:59.000,9:59:59.000 a warm lead, a cold lead, so on.[br]Someone else should do that 9:59:59.000,9:59:59.000 for the sales people, so they don't[br]waste their time making calls. 9:59:59.000,9:59:59.000 And the third thing was [br]someone had to prepare 9:59:59.000,9:59:59.000 brochures and ads. And the [br]salesman is not skilled. 9:59:59.000,9:59:59.000 The salesperson isn't skilled at[br]communicating through advertising 9:59:59.000,9:59:59.000 and brochures. So sales departments[br]added three people, or hired them 9:59:59.000,9:59:59.000 from time to time.[br]Later on, it exploded 9:59:59.000,9:59:59.000 to the day today, when we have[br]multinationals running-- 9:59:59.000,9:59:59.000 with marketing--[br]In other words, marketing-- 9:59:59.000,9:59:59.000 Those three people split from sales[br]and became big enough to become 9:59:59.000,9:59:59.000 its own department.[br]And so, some people 9:59:59.000,9:59:59.000 in the audience here may be [br]a chief marketing officer. 9:59:59.000,9:59:59.000 The old name was Vice President[br]of marketing, but I like the name 9:59:59.000,9:59:59.000 chief marketing officer because[br]that person now is part of 9:59:59.000,9:59:59.000 the chief officers. Chief information[br]officer, chief financial officer, 9:59:59.000,9:59:59.000 chief innovation officer, [br]and the status has moved up. 9:59:59.000,9:59:59.000 Some of you may be brand managers,[br]may have been in your past experience. 9:59:59.000,9:59:59.000 Category managers, market [br]segment managers, 9:59:59.000,9:59:59.000 managing distribution channels,[br]like retail or wholesale things, 9:59:59.000,9:59:59.000 pricing manager, communication[br]manager, database manager, 9:59:59.000,9:59:59.000 direct marketers, internet[br]people, and so on. 9:59:59.000,9:59:59.000 So, marketing is well-established. 9:59:59.000,9:59:59.000 Now, the character of a marketing[br]department depends very much 9:59:59.000,9:59:59.000 on what the CEO thinks of marketing. 9:59:59.000,9:59:59.000 So, the 1P CEO is a person[br]who took over a company, 9:59:59.000,9:59:59.000 and he says, "I don't like [br]marketing, but I know I need it, 9:59:59.000,9:59:59.000 and all I want from marketing is[br]some communications. 9:59:59.000,9:59:59.000 I just want someone to broadcast[br]and promote us." 9:59:59.000,9:59:59.000 So, that person is missing [br]a lot of other things 9:59:59.000,9:59:59.000 made up by other CEOs,[br]who are 4P CEOs. 9:59:59.000,9:59:59.000 Now a 4P CEO says,[br]"I need a marketing plan." 9:59:59.000,9:59:59.000 And the plan has to mention [br]product--that's the first P. 9:59:59.000,9:59:59.000 What about our product? What's good[br]about it? What are the features? 9:59:59.000,9:59:59.000 Price: what should it be priced at?[br]Place: where should it be 9:59:59.000,9:59:59.000 made accessible? Online,[br]offline, in stores? 9:59:59.000,9:59:59.000 And finally promotion. 9:59:59.000,9:59:59.000 So that's a more educated view[br]of the potential of marketing. 9:59:59.000,9:59:59.000 But there's even a better view,[br]and that's called the CEO who says, 9:59:59.000,9:59:59.000 "No! I don't want to start with 4 Ps,[br]I want to start with the fact 9:59:59.000,9:59:59.000 the market is complex." [br]There's a lot of segments. 9:59:59.000,9:59:59.000 Each segment deserves its own plan.[br]In fact, one thing we've learned 9:59:59.000,9:59:59.000 that if you just have one value[br]proposition for the whole market, 9:59:59.000,9:59:59.000 it really doesn't trigger anything[br]in many parts of the market. 9:59:59.000,9:59:59.000 So that CEO says, "What[br]segment should we go after? 9:59:59.000,9:59:59.000 And what position should we [br]take with each segment? 9:59:59.000,9:59:59.000 What should we say about ourselves,[br]in how we can satisfy their needs?" 9:59:59.000,9:59:59.000 Now there's even a higher type CEO,[br]which is exemplified by A.G. Lafley, 9:59:59.000,9:59:59.000 who ran Procter & Gamble,[br]who recently retired. 9:59:59.000,9:59:59.000 When you ask A.G. Lafley what's[br]marketing, what's your picture, 9:59:59.000,9:59:59.000 he says, "Well, what do you mean?[br]Marketing is everything." 9:59:59.000,9:59:59.000 [laughter] 9:59:59.000,9:59:59.000 Now, marketing is everything.[br]What he means is 9:59:59.000,9:59:59.000 everything starts with the customer.[br]No customers, no business. 9:59:59.000,9:59:59.000 And I think he's making [br]that point very much. 9:59:59.000,9:59:59.000 Now, moving on, there's a lot of things [br]that a chief marketing officer does, 9:59:59.000,9:59:59.000 and I won't go into any detail,[br]but there's a lot of tasks, 9:59:59.000,9:59:59.000 and the sad fact is that sometimes[br]the chief marketing officer only lasts 9:59:59.000,9:59:59.000 on the average of two years.[br]In other words, does a job, 9:59:59.000,9:59:59.000 and maybe the CEO is not feeling that [br]it really brought in enough new business 9:59:59.000,9:59:59.000 that the cost of the CMO exceeds [br]what the value of the CMO is. 9:59:59.000,9:59:59.000 There's a lot to go into about[br]why CMOs on the average 9:59:59.000,9:59:59.000 hold on to their job for two years.[br]By the way, some of them 9:59:59.000,9:59:59.000 get a better job after two years.[br]They become something higher 9:59:59.000,9:59:59.000 than the chief marketing officer.[br]Some of them actually are pirated away 9:59:59.000,9:59:59.000 because they're so good, they go [br]to another company to be the CEO. 9:59:59.000,9:59:59.000 But in any case, marketing--[br]commercial marketing, 9:59:59.000,9:59:59.000 which I've been talking about,[br]could've stayed only commercial, 9:59:59.000,9:59:59.000 and then I got involved in--[br]with Professor Sid Levy at Northwestern 9:59:59.000,9:59:59.000 We started the idea of [br]broadening marketing, 9:59:59.000,9:59:59.000 because the set of tools that we use[br]to address consumers could be used 9:59:59.000,9:59:59.000 in other areas.[br]So we have a thing 9:59:59.000,9:59:59.000 called place marketing.[br]I will get a call from a city, let's say, 9:59:59.000,9:59:59.000 and a city says, "We're not getting[br]enough tourists. We don't have 9:59:59.000,9:59:59.000 any attractions for them to come [br]and see. I would like to get a factory 9:59:59.000,9:59:59.000 located here. We would like some digital[br]people to move here, who know digital-- 9:59:59.000,9:59:59.000 We want to start a Silicon Valley."[br]So that's place marketing. 9:59:59.000,9:59:59.000 The marketing of a place. How do you[br]dress it up and make it attractive? 9:59:59.000,9:59:59.000 Against all of the other [br]competitive places. 9:59:59.000,9:59:59.000 The second--[br]Person marketing. 9:59:59.000,9:59:59.000 There's an agency called William Morris,[br]and a young singer might go to 9:59:59.000,9:59:59.000 William Morris and say, "look, I want [br]to get ahead. I want to appear 9:59:59.000,9:59:59.000 on Jay Leno's show. I want to--[br]I want to move up to being noticed. 9:59:59.000,9:59:59.000 I want high visibility."[br]I wrote a book with the title 9:59:59.000,9:59:59.000 "High Visibility." How do you [br]get that visibility. 9:59:59.000,9:59:59.000 So, William Morris will look[br]at her and her performance 9:59:59.000,9:59:59.000 and maybe say, "You know,[br]maybe in a sense-- 9:59:59.000,9:59:59.000 Don't be offended, but we can [br]make you into a better product." 9:59:59.000,9:59:59.000 That's sort of the language.[br]You know, do your hair differently, 9:59:59.000,9:59:59.000 walk a little-- dress differently.[br]Actually, we're going to use you to 9:59:59.000,9:59:59.000 reignite the archetype of Joan Baez.[br]You know, Joan Baez, the folk singer. 9:59:59.000,9:59:59.000 Well, we need a new Joan Baez.[br]And so, we can recast you 9:59:59.000,9:59:59.000 and form you into the kind of [br]person we all miss, and so on. 9:59:59.000,9:59:59.000 Now, social marketing is[br]another branch. 9:59:59.000,9:59:59.000 Today there are 2,000 social marketers[br]around the world, trying to help people 9:59:59.000,9:59:59.000 eat better, exercise more, say no[br]to drugs, stop smoking cigar-- 9:59:59.000,9:59:59.000 get off of tobacco, say no to[br]a number of things. 9:59:59.000,9:59:59.000 Positive behaviors and [br]negative behaviors. 9:59:59.000,9:59:59.000 By the way, my memory is that[br]Sweden was one of the first countries 9:59:59.000,9:59:59.000 to want to raise a nation of nonsmokers,[br]non-drinkers, all the vices. 9:59:59.000,9:59:59.000 And it starts at the primary school level,[br]that you could technically raise people 9:59:59.000,9:59:59.000 to avoid those vices, if that was [br]thought to be good public policy. 9:59:59.000,9:59:59.000 So that's social marketing.[br]Now, political marketing, 9:59:59.000,9:59:59.000 we're saturated with. [br]And I think it's degenerated, 9:59:59.000,9:59:59.000 but that's another thing.[br]Fundraising is part of marketing. 9:59:59.000,9:59:59.000 I mean, fundraising is an odd form,[br]because you're not exchanging. 9:59:59.000,9:59:59.000 Everything else is sort of an exchange[br]of values. Fundraising seems to be 9:59:59.000,9:59:59.000 a one-way transfer.[br]Here's some money 9:59:59.000,9:59:59.000 for the museum. [br]But any fundraiser knows 9:59:59.000,9:59:59.000 there's something that should come[br]back to the person who is the donor 9:59:59.000,9:59:59.000 and supporter of a museum,[br]and working that way is important. 9:59:59.000,9:59:59.000 So these are offshoots. [br]Now all of us do marketing. 9:59:59.000,9:59:59.000 If you read the list, we all do marketing.[br]Did you ever compete for a job when 9:59:59.000,9:59:59.000 you knew there were other applicants?[br]Didn't you dress up as well as you could 9:59:59.000,9:59:59.000 and even prepare what you're [br]going to say, and so on? 9:59:59.000,9:59:59.000 Did you compete for a desirable[br]apartment which was scarce? 9:59:59.000,9:59:59.000 Or a member of the opposite sex,[br]if you wanted to court someone. 9:59:59.000,9:59:59.000 So, in a sense, we're human animals[br]who know how to make an impression 9:59:59.000,9:59:59.000 and market ourselves, to some extent. 9:59:59.000,9:59:59.000 What do we dislike about marketing? 9:59:59.000,9:59:59.000 Well, there's a long list.[br]It's a rather long list. 9:59:59.000,9:59:59.000 Intrusion, interruption, exaggeration,[br]and so on and so forth. 9:59:59.000,9:59:59.000 And I really made a list that's [br]a little separate from that. 9:59:59.000,9:59:59.000 Here are some of the criticisms.[br]Marketers get consumers to want 9:59:59.000,9:59:59.000 and spend more than they can afford. 9:59:59.000,9:59:59.000 And we know that from the financial[br]disaster that people were buying homes 9:59:59.000,9:59:59.000 with maybe nothing down.[br]Marketers are skilled at 9:59:59.000,9:59:59.000 creating grand differentiation [br]where it shouldn't exist. 9:59:59.000,9:59:59.000 Like with commodities, you know, a[br]chicken is a chicken, cement is cement. 9:59:59.000,9:59:59.000 So they spend a lot of time trying to[br]tell you their cement is really better, 9:59:59.000,9:59:59.000 their salt is really better, and so on.[br]Marketers want to produce and sell 9:59:59.000,9:59:59.000 more goods without considering[br]the resource and environmental costs 9:59:59.000,9:59:59.000 of producing the goods.[br]The planet