[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,On behalf of our President \Nand CEO, Greg Case,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and chief marketing officer,\NPhil Clement,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,it's a real honor for Aon to be \Nthe sponsor of this event today.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And for many of you, \Nyou might know that Aon
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is now a UK-based company,\Nbut it's also important for you to know
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that the Aon Foundation, \Nfor the past 25 years,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,has made it a priority to support\Neducational activities and
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,cultural institutions like \Nthe Chicago Humanities Festival
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and the Charter Humanist Circle,\Nthat does so much to enrich
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the lives of all of us in this room\Nand everybody in Chicago.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And even though we're now in the UK,\NI want everybody in this room to know
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that we intend to continue \Nthis commitment,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and it will remain high on our\Npriority list for the things we do
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to support the community of \NChicago for many years to come.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[applause]
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,On behalf of my colleagues \Nat Aon, I want to thank
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the Charter Humanist Circle\Nand its members
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,for their very valuable support,\Nand I also want to thank
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Northwestern University Law \NSchool for allowing us to use
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the auditorium today.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,At Aon, we believe in the mantra\N"If we can't measure it,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,we don't do it."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And because of that, \Nit's a real honor for us
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to be here supporting and\Nintroducing Dr. Philip Kotler.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Dr. Kotler has defined marketing\Nas "the science and art
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of exploring, creating, and \Ndelivering value to satisfy
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the needs of a target \Nmarket at a profit."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,He is recognized around the world\Nas one of the foremost experts
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,on business, of marketing,\Nand for his insights on
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,how exemplary marketing has\Nthe creativity and the power
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to influence global \Nconsumers every day.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,In that spirit, I hope you'll join \Nme in welcoming Dr. Philip Kotler.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[applause]
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now before I turn the\Nmicrophone over to Dr. Kotler,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in the spirit of marketing, maybe\Nmany of you in this room know
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that Aon does a great many\Nthings globally, but one of the things
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that we've done that has created \Ntremendous brand awareness
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,for our firm is our sponsorship\Nof Manchester United football team,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,which by today won 2 to 1 \Nversus Arsenal
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[applause]
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,We're at--\NRight now we're
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,at the top of the \Npremiere league.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So in that spirit,\NI would like to present
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Dr. Kotler with his very own,\Npersonalized Manchester United shirt.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[Kolter]: Thank you.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,David, thank you very much.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And I will wear this,\Nin a fantasy way.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[laughter]
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,May I say, I really appreciate\Nyour introduction.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Of all the introductions I've received,\Nyours is the most recent.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[laughter]
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Nation, nation...
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Oh, you may know of\NSteven Colbert,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,so I can't pull it off the same way.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,There will be two groups, \Nwith respect to marketing.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,There will be a group that\Ndoesn't like marketing,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and I'm going to give you\Nwhy they don't like marketing
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and the justifications.\NI will also tell you
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,there's another group who loves\Nmarketing, so before we're through,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,you will be totally confused,\Nor at least opinionated.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So, what I want to do is\Ntell you that--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,These are called \Nconfessions of a marketer.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,That's, by the way, borrowed\Nfrom David Ogilvy,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,who wrote a wonderful book called\N"Confessions of an Advertising Man."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And let me move on and say\Nwhy is marketing a topic
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,for the humanities?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And we would say that\Nthere's a couple of reasons.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,One: I regard marketing\Nas a humanistic subject
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,because marketing has \Naffected our lifestyles;
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,has created, not only affected\Na lifestyle, but created lifestyles,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and we should be, from a point\Nof view of popular interest,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,interested in that.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And it really--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I want to say that marketing\Nis very American,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that it's beginnings are \Nvery American.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,That doesn't mean there weren't\Nmanifestations of marketing earlier,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and as a matter of fact, I'd like\Nto give you a very short history
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of marketing, so that you understand\Nwhat we mean by the word.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,As a matter of fact, if you took a\Ndictionary, a Webster's dictionary,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in the year 1900, and looked up\Nthe word marketing,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,you would not find it in the dictionary.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Yes, you would find the word market,\Nbut not the word marketing.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,If you then picked a dictionary...\N1910. You would find the word
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,marketing in it, because marketing\Nis about 100 years old.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And it's much more than selling.\NSo let me show you...
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Let's start...\NLet's start biblically.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[laughter]\NLet's start biblically.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Who is the marketer\Nin this picture?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,This is the biblical narrative.\NWho was the first marketer in the world?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I hear Eve...\NThe snake.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I hate to admit it, because snake \Nsounds like sneaky, and so on
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and so forth.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But the fact is that it was \Nthe snake who sold Eve
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,on getting Adam to eat an apple.\NSo it goes way back.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,At least selling goes way back.\NNow let's go further.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Here is the father of marketing.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,What an insult to him!\N[laughter]
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I mean, that's Aristotle.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Recently I was at a group,\Nlittle party, and we were speculating
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,who we would like to meet most\Nif we had an hour with such a person,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and it boiled down to Plato,\NSocrates, or Aristotle.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,That's a hard one.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,It turns out that my vote \Nwent for Aristotle.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Aristotle was Google, at the time.\NHe knew more about everything
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,than anyone in the world.\NHe wrote on science, politics,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,economics, rhetoric, art,\Nand everything.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now, why do I say that he had\Nsome marketing impact?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Let me read the definition of rhetoric.\NHe's not the founder of rhetoric,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,by the way. The founders were \Nthe sophists, around 600 B.C.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,They were a group who wanted to use\Nselling and speech and persuasion
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,for their own devious ends.\NBut Aristotle put the i--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the discipline of rhetoric on its feet.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Rhetoric is the art that aims to improve\Nthe facility of speakers or writers
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,who attempt to inform, persuade, \Nor motivate particular audiences
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in specific situations.\NIt is the faculty of the observing,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in any given case, the available \Nmeans of persuasion.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So, in a sense, he could be\Nthe father of selling.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The idea of getting someone \Nto do something that they might
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,not have done otherwise.\NSo, let's move on,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,about other manifestations of marketing.\NI know many of you cannot necessarily
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,read this, so I will read it,\Nbut the first department store
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,opened when, and in what country?\NNormally if you're in France
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and you ask the question,\Nthey would say of course
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,we invented the department store.\NIt was about 1845.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The same time we invented \Npaperweights and some other things.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But it turns out that the first \Ndepartment store was in Japan.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Mitsui company, which is still\Nalive and well.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So that's where one of our \Nretailing forms started.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The next one is the first \Nnewspaper that carried an ad.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,There were newspapers early,\Nbut the first ad appeared in England,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in 1652, and it advertised coffee.\NAnd then, the first ad agency
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,started a little later.\NWell, much later.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,N.W. Ayer, which is still a \Nprosperous advertising agency.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,First time a brand was put on a \Ncommodity, the commodity being soap,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the brand name was Pear's soap.\N
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And then the first packaging\Nappeared a little later,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and finally we had a marketing\Nresearch department formed.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So, now the word markets\Nhas been around all these years.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The Middle Ages had markets.\NIn fact, whenever--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I would even say the agora,\Nin ancient Greece--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that means the marketplace--\NIn ancient Greece,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,people would come on a particular \Nday to sell things.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,In the Middle Ages, \Nthere were market days.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The word marketing wasn't there.\NIt was just market.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And trade was always there,\Nbecause trade, through history,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,has taken place between people\Nand regions and countries.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So all that is there, and it was\Nin the decade of the 1900s
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that marketing books first appeared.\NAnd the interesting thing is
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,who wrote those first marketing books.\NWere they sociologists?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,What was the discipline of the people\Nwho wrote the first marketing books?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Any guesses?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,They weren't physicists or chemists.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,They were economists.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So why would economists start\Na subject called marketing?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And the answer is: they were\Ndisillusioned economists.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[laughter]
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,They couldn't find any mention\Nof advertising in the discourse
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of economists. In other words,\Nnever did Adam Smith,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Thomas Malthus, David Ricardo,\Neven Alfred Marshall, and so on,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,they rarely talked about other\Nforces that shaped demand.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The only force that shaped demand\Nin their mind was price.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,You know the famous curve.\NRaise the price, demand will go down,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,lower the price, you can sell more.\NPrice was the only thing
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that affected demand.\NSo these economists,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,or institutional economists, said "Hey,\Nyou've got to factor in advertising."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,You've got to factor in retail stores,\Nwhole sales, jobbers, agents.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And it was the neglect of \Nthe classical economists
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to not really texture the marketplace\Nand the way an economy worked
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that led to marketing.\NSo marketing is technically
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,a branch of economics.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now who helped developed \Nthis field of marketing?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now, probably you don't \Nrecognize maybe anyone here.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,There's one person you \Nmight recognize.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I don't know if you can see\Nsome of these faces,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,but someone recognize anyone there?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Yeah?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Dale Carnegie.\NDale Carnegie is here,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and his book was "How to \NWin Friends and Influence People,"
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,because in doing this, \NI wanted to find out
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,who was the exemplar \Nof the selling method.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,"How to Win Friends\Nand Influence People"
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But let me give you the whole picture.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Ernest Dichter. Some of \Nyou may know of.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,He was a motivational psychologist,\Nand he could explain why people
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,didn't like to eat prunes, why cigars \Nwere offending some people,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and all kinds of things.\NAnd his book called
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,"The Study of Desire."\NHe apparently studied with
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Sigmund Freud, and he brought \Nthat kind of mind to marketing.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But he had an opponent named\NAlfred Pollitz, who was not
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,a head shrinker--We call \Nhim a... a nose counter.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The expressions we would use if\Nyou were very psychological,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,you were a head shrinker, and\Notherwise, you were a nose counter.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Namely, a surveyor. You surveyed--\NYou found out what percentage
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of people were of a certain age and \Nwhy did they buy a particular product.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Julius Rosenwald was very much \Nbehind the formation of
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the Sears company, which was\Na important episode in
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the development of our retail chains.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Lester Wunderman deserves \Ncredit as exemplifying the use
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of direct mail and catalogs.\NThat you can sell more directly.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,You don't have to be in the store.\NYou can get people to order goods
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,by mail and phone.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,David Ogilvy is the exemplar\Nadvertising person,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,then Stanley Marcus,\Nof Neiman Marcus,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,was a fella who could walk into\Nany retail store and give them
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,100 suggestions on how to improve \Nthe layout, the size of the aisles,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and make a difference in the \Nvoulme of business.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Edward Bernays is the father of\Npublic relations in the United States.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,His name has sort of become \Nobscure, but he really was
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,a very important person.\NThe word propaganda
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,was often used in connection with his \Nwork, because people thought it was
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,a model to motivate you to feel \Na certain way about anything,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,regardless of the standards involved.\NAnd then there's Dale Carnegie.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,In any case, how did \Nmarketing get its start?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Marketing got its start \Nin sales departments.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Every company has a sales group.\NAnd the sales people really want
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to be in the office of a customer,\Nbecause that's the only way
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,something happens. So they don't\Nwant to do a lot of homework.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,For example, three things they\Ndidn't want to do.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,They didn't want to do consumer\Nresearch in a systematic way,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,because that's taking their time\Naway from selling to customers.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Secondly, they would've liked \Nsomeone else to find leads.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now a lead means a prospect.\NIn fact, we distinguish between
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,a hot lead: "Oh boy, he's ready\Nto buy. He even called us to buy."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,a warm lead, a cold lead, so on.\NSomeone else should do that
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,for the sales people, so they don't\Nwaste their time making calls.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And the third thing was \Nsomeone had to prepare
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,brochures and ads. And the \Nsalesman is not skilled.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The salesperson isn't skilled at\Ncommunicating through advertising
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and brochures. So sales departments\Nadded three people, or hired them
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,from time to time.\NLater on, it exploded
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to the day today, when we have\Nmultinationals running--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,with marketing--\NIn other words, marketing--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Those three people split from sales\Nand became big enough to become
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,its own department.\NAnd so, some people
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in the audience here may be \Na chief marketing officer.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The old name was Vice President\Nof marketing, but I like the name
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,chief marketing officer because\Nthat person now is part of
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the chief officers. Chief information\Nofficer, chief financial officer,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,chief innovation officer, \Nand the status has moved up.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Some of you may be brand managers,\Nmay have been in your past experience.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Category managers, market \Nsegment managers,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,managing distribution channels,\Nlike retail or wholesale things,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,pricing manager, communication\Nmanager, database manager,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,direct marketers, internet\Npeople, and so on.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So, marketing is well-established.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now, the character of a marketing\Ndepartment depends very much
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,on what the CEO thinks of marketing.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So, the 1P CEO is a person\Nwho took over a company,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and he says, "I don't like \Nmarketing, but I know I need it,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and all I want from marketing is\Nsome communications.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I just want someone to broadcast\Nand promote us."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So, that person is missing \Na lot of other things
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,made up by other CEOs,\Nwho are 4P CEOs.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now a 4P CEO says,\N"I need a marketing plan."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And the plan has to mention \Nproduct--that's the first P.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,What about our product? What's good\Nabout it? What are the features?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Price: what should it be priced at?\NPlace: where should it be
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,made accessible? Online,\Noffline, in stores?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And finally promotion.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So that's a more educated view\Nof the potential of marketing.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But there's even a better view,\Nand that's called the CEO who says,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,"No! I don't want to start with 4 Ps,\NI want to start with the fact
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the market is complex." \NThere's a lot of segments.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Each segment deserves its own plan.\NIn fact, one thing we've learned
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that if you just have one value\Nproposition for the whole market,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,it really doesn't trigger anything\Nin many parts of the market.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So that CEO says, "What\Nsegment should we go after?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And what position should we \Ntake with each segment?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,What should we say about ourselves,\Nin how we can satisfy their needs?"
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now there's even a higher type CEO,\Nwhich is exemplified by A.G. Lafley,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,who ran Procter & Gamble,\Nwho recently retired.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,When you ask A.G. Lafley what's\Nmarketing, what's your picture,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,he says, "Well, what do you mean?\NMarketing is everything."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[laughter]
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now, marketing is everything.\NWhat he means is
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,everything starts with the customer.\NNo customers, no business.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And I think he's making \Nthat point very much.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now, moving on, there's a lot of things \Nthat a chief marketing officer does,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and I won't go into any detail,\Nbut there's a lot of tasks,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and the sad fact is that sometimes\Nthe chief marketing officer only lasts
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,on the average of two years.\NIn other words, does a job,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and maybe the CEO is not feeling that \Nit really brought in enough new business
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that the cost of the CMO exceeds \Nwhat the value of the CMO is.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,There's a lot to go into about\Nwhy CMOs on the average
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,hold on to their job for two years.\NBy the way, some of them
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,get a better job after two years.\NThey become something higher
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,than the chief marketing officer.\NSome of them actually are pirated away
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,because they're so good, they go \Nto another company to be the CEO.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But in any case, marketing--\Ncommercial marketing,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,which I've been talking about,\Ncould've stayed only commercial,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and then I got involved in--\Nwith Professor Sid Levy at Northwestern
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,We started the idea of \Nbroadening marketing,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,because the set of tools that we use\Nto address consumers could be used
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in other areas.\NSo we have a thing
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,called place marketing.\NI will get a call from a city, let's say,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and a city says, "We're not getting\Nenough tourists. We don't have
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,any attractions for them to come \Nand see. I would like to get a factory
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,located here. We would like some digital\Npeople to move here, who know digital--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,We want to start a Silicon Valley."\NSo that's place marketing.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The marketing of a place. How do you\Ndress it up and make it attractive?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Against all of the other \Ncompetitive places.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The second--\NPerson marketing.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,There's an agency called William Morris,\Nand a young singer might go to
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,William Morris and say, "look, I want \Nto get ahead. I want to appear
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,on Jay Leno's show. I want to--\NI want to move up to being noticed.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I want high visibility."\NI wrote a book with the title
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,"High Visibility." How do you \Nget that visibility.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So, William Morris will look\Nat her and her performance
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and maybe say, "You know,\Nmaybe in a sense--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Don't be offended, but we can \Nmake you into a better product."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,That's sort of the language.\NYou know, do your hair differently,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,walk a little-- dress differently.\NActually, we're going to use you to
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,reignite the archetype of Joan Baez.\NYou know, Joan Baez, the folk singer.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Well, we need a new Joan Baez.\NAnd so, we can recast you
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and form you into the kind of \Nperson we all miss, and so on.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now, social marketing is\Nanother branch.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Today there are 2,000 social marketers\Naround the world, trying to help people
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,eat better, exercise more, say no\Nto drugs, stop smoking cigar--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,get off of tobacco, say no to\Na number of things.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Positive behaviors and \Nnegative behaviors.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,By the way, my memory is that\NSweden was one of the first countries
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to want to raise a nation of nonsmokers,\Nnon-drinkers, all the vices.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And it starts at the primary school level,\Nthat you could technically raise people
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to avoid those vices, if that was \Nthought to be good public policy.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So that's social marketing.\NNow, political marketing,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,we're saturated with. \NAnd I think it's degenerated,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,but that's another thing.\NFundraising is part of marketing.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I mean, fundraising is an odd form,\Nbecause you're not exchanging.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Everything else is sort of an exchange\Nof values. Fundraising seems to be
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,a one-way transfer.\NHere's some money
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,for the museum. \NBut any fundraiser knows
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,there's something that should come\Nback to the person who is the donor
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and supporter of a museum,\Nand working that way is important.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So these are offshoots. \NNow all of us do marketing.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,If you read the list, we all do marketing.\NDid you ever compete for a job when
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,you knew there were other applicants?\NDidn't you dress up as well as you could
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and even prepare what you're \Ngoing to say, and so on?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Did you compete for a desirable\Napartment which was scarce?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Or a member of the opposite sex,\Nif you wanted to court someone.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So, in a sense, we're human animals\Nwho know how to make an impression
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and market ourselves, to some extent.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,What do we dislike about marketing?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Well, there's a long list.\NIt's a rather long list.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Intrusion, interruption, exaggeration,\Nand so on and so forth.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And I really made a list that's \Na little separate from that.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Here are some of the criticisms.\NMarketers get consumers to want
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and spend more than they can afford.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And we know that from the financial\Ndisaster that people were buying homes
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,with maybe nothing down.\NMarketers are skilled at
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,creating grand differentiation \Nwhere it shouldn't exist.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Like with commodities, you know, a\Nchicken is a chicken, cement is cement.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So they spend a lot of time trying to\Ntell you their cement is really better,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,their salt is really better, and so on.\NMarketers want to produce and sell
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,more goods without considering\Nthe resource and environmental costs
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of producing the goods.\NThe planet Earth is affected
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,by the amount of production\Nand the care with which it's done.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Marketers had not paid enough\Nattention to product safety.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,We know that because Ralph Nader\Nmade his career, basically, car--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the unsafety in cars, and then \Nwe got lead poisoning,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,we got asbestos problems,\Nand so on.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Here's a serious criticism. Marketers--\Nand this is not all marketers--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,these are some particular \Ncompanies, and so on.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Marketers favor giving the public what it\Nwants, whether its good or not for them.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Sure, I'll sell you cigarettes. I'll sell \Nyou anything that will make money.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Therefore marketing promotes \Na materialistic mindset,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that-- we get turned on to\Nmore of a materialistic world,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,a world of ever-changing products and\Nservices and keeping up with the Jones
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and some of that.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Marketers rarely talk about\Nsane consumption.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Yeah, some beer companies say,\N"Please enjoy our beer, but don't
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,drink too much." That's nice that they--\NNo one listens to that, and you still
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,have binge-drinking, but they're\Ntrying to do what they can
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and so on and so forth.\NNow, let me just say
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,there's another side.\NThis is important too,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,because it's not a simple picture.\NThe other side of it is
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Marketing has undoubtedly \Nraised the standard of living
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in the United States.\NPeople don't naturally
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,buy new things. In other words,\Ndo you know, people used to keep
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,their refrigerators, which\Nweren't refrigerators at the time,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,they were ice boxes and they would\Nkeep going out and getting some ice
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and putting it in the box, and so on.\NAnd even the washing machines
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,were very slow to take--\NIn other words, people--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,It would be very expensive to\Nbuy a new appliance,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,but marketers persisted in saying\Nyour life will be better with
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,new appliances, and \Nthat's one of its jobs.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I would even go so far as to say\Nthat marketing is so connected
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to the idea of the middle class.\NWe're talking about preserving
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and building the middle class,\Nand the lifestyle that goes with it,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and marketing is an essential\Ndefiner of what it is to be--and want--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,what it is to want, as a member\Nof the middle class.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Marketing in the form of social\Nmarketing has helped improve
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,a lot of things. You know,\None of the first causes
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that marketing turned to was \Nthe environment and waste
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and the ill-effects of some \Nproducts, and so on.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Preserving the environment\Nwas one of the first things that
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,social marketers got into.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now they're into obesity as a problem,\Nlittering as a problem,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and other problems.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Marketing is very important\Nto the cultural world.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Museums, performing arts,\Nand one of the big problems
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that cultural institutions are facing,\Nespecially in the performing arts,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is the aging of audiences.\NHow do you get people
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,who are in their forties to go to opera,\Nto go to ballet, and so on.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,It's called the graying of the audiences,\Nand maybe that problem has
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,been with us for a long time,\Nbut marketers are at work
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,doing segmentation, targeting,\Npositioning, in order to
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,make sure that all seats are filled\Nin the theater, and also the museums
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,are very busy, as marketing institutions,\Nbecause they have to get visitors,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,they have to get donors, they have to\Nget government grants,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,so marketing is almost an intrinsic\Nfunction today that's going on.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But let me--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,This is not time to take a vote.\NDo you like marketing
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,or you don't like marketing. \NBut let me show you that
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the feeling-- the negative feelings about\Nmarketing came up from these people.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The attackers. They attacked marketing.\NDo you recognize anyone?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,You see Ralph Nader? I don't...\NThere he is. Yeah.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Who else?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Well, it is Ralph Nader.\N"Unsafe at Any Speed."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Rachel Carson, by the way,\Ndeserves so much more credit
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,than we've given to her for her book\Non the Silent Spring, which was about
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the chemical pollution, the pesticides\Nthat were getting into our spring water,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and so on. Vance Packard,\Nwho popularized the idea
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that we are hidden persuaders. \NThat when you go into a movie theater,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,you don't know this but an ad is sort of\Nflashing to go and get some popcorn
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,before you sit down. \NSubliminal advertising,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,which never did happen, \Nbut the hidden persuaders.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And then John Kenneth Galbraith,\Nwho pointed out that while we spend
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,so much money in making enough\Ndeodorants for any type of interest
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,you have in deodorants,\Nin the public sector--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,In the public sector, you've got\Nstreets that are littered,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and there's some garbage, \Nand there's slow traffic, and--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And so we have a good private sector,\Nbut we can't enjoy it because
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the public sector doesn't have the\Npublic good that would facilitate things.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,You've got Naomi Klein,\Nwho's probably the prototype
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,person now for attacking branding.\NBrands, brands, they're awful.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,You're paying more than \Nyou need to pay.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The book is called "No Logo,"\Nlogo being another name for brand.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And Michael Sandel is-- has this \Nnew book out, which is really interesting
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and worth reading. He's the fella\Nwho ran a course on justice,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and would ask groups about this size\Nat Harvard, "What is the just thing to do
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in each situation?" \NBut his new book is called
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,"What Money Can't Buy: \NThe Moral Limits of Marketing"
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,where he points out that \Nif you're in jail in California
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and you don't like the cell,\Nyou can pay for a better cell.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,You know, maybe one with a computer\Nif you want a computer, and so on.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But he's also-- he thinks today\Nour culture divides people
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in social classes more clearly.\NWe used to go to ball games;
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I would sit next to someone who was\Nrich and someone who was poor.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,We'd all stand in the \Nsame line for hot dogs.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Today, the guys who are rich\Nare up in the sky box,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and he calls it the sky box-ification of \Nthe United States. The sky box-ification.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,They're eating filet mignon and\Nwe peasants are down there having--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,standing in line for our hot dog.\NSo we are not meeting each other
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,as we used to, in the older days.\NIt's a very interesting treatment.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I like to quote Will Rogers with this\Nremark: "If advertisers spent
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the same amount of money that they--\Non improving the product
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,as they do on advertising, they wouldn't\Nhave to advertise it. And that's--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,By the way, that's a very profound \Nobservation, because in the age
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of the internet, it's so much easier\Nto talk about a product you like
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to others and also about\Na product you don't like.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And in a sense, if this goes far enough,\Nthere will be no bad companies
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,anymore. It would be not possible\Nfor a company to be a bad company,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,because the word \Nof mouth will sink it.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So he's sort of touching on that point.\NMake-- Do a good job, and don't--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and others will advertise \Nthe good job you did.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now, I want to add another group,\Nand this is a group of visionaries,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and I'd like to call them \Nour best marketers.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But they're not necessarily the \Nchief marketing officer,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,they're CEOs. But what--\NTheir contribution has been
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the kind you want from your \Nchief marketing officers.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So who do you see here? \NDo you know any of those people?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[audience murmuring]
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Yeah. You've got to know some of \Nthem. But you probably don't know
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the first one. Ingvar Kamprad.\NIt's very even hard to remember
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,his name, but he's that Swedish \Nperson who invented IKEA,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,who said, "I must bring down the cost\Nof furniture, and I can do that by
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,taking the air out of it and just \Nselling knocked down furniture,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and now people can afford to have\Nsome nice things in their home.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Richard Branson is phenomenal.\NHe's a-- not only in self-promotion.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,He's one of the best self-promoters\Npossible. I don't know if you know
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that he was in Times Square \Nsome years ago
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to introduce his new cell phone,\Nthe Virgin cell phone,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and he said he was going to drop off \Nof a building, a 30-story building,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and-- not wearing any clothes or\Nsomething, so everyone showed up.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I don't know why they would want to\Nshow up, but they showed up
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in Times Square, and sure, he did \Njump down, but it was on a rope
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and he's carrying a huge version\Nof his new cell phone.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And so everyone--not just in\NTimes Square--the reporters
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,were covering it. All of New York \Nknew about the new-- there was
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,a new Virgin cell phone.\NSo he's very good at that.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But right now, he told me something\NI couldn't believe. I was in Dubai,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and he gave a speech, and we \Nwere just chatting, and he said,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,"Where are you from?" I said Chicago,\Nand he says, "You know, there will be
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,a time when you can go from\NDubai to Chicago in half an hour."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,What is it-- Is this a time\Nmachine you're inventing?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,He says, "No, it's just a rocket ship."\NSo the rocket ship takes off from
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Dubai, it just goes right up in the \Nair and lands in Chicago.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So he's working with some people\Non the new spaceships, basically.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And you want to watch him.\NOf course, Walt Disney.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Great, great visionary.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Herb Kelleher. Thanks to him,\Nwe have Southwest Airlines,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,which started a whole class\Nof low-cost airlines.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And then we've got Anita Roddick,\Nwho ran The Body Shop, where she said
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,"I'm not selling hope, I'm selling good\Nskin lotion. All the others sell hope."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,That was a famous remark by Revlon,\N"In the factory we make lipstick,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in the store we sell hope."\NBut she wrestled with that one.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Then you've got Bill Gates, \NSteve Jobs, and Jeff Bezos.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And Jeff-- Let's see, we've gotta\Nmake sure he gets in there.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[laughter]\NJeff is extraordinary.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,If there's anyone who has \Nconsumer thinking in his mind,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,wanting to facilitate the consumer\Nto really order or re-order or return
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,or anything like that. And then to buy\Nmore than books, to buy electronics,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to buy clothes. He's done a marvelous\Njob. He's very exemplary in that sense.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,We're running out of time and I'm going\Nto want some questions from you,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,but let me just refer to \Na few more things.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,This is a chart I use in\Nthe book, "Marketing 3.0,"
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,basically to say that every company\Nshould define its mission, it's vision
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,for the future, and its values--\Nwhat it really cares about,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and if you're a 1.0 marketer,\Nit's a good job you're doing.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I mean, of course you're trying\Nto deliver satisfaction, make a profit,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and make a good product. Be better.\NIf you're a 2.0 marketer, you want to
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,help people realize their aspirations.\NYou want to deliver things that
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,they might aspire to have.\NThey will return frequently to buy more,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and your product is different than the\Nothers. Not only better, but different.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And suddenly, you move \Nfrom mind to heart to spirit.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,What's spirit? It's that small\Nset of companies that say
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,"We're compassionate. We have\Ncompassion for the state of the world.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,We want to get involved. We want \Nthe companies to be a machine
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,for improving the lives of people."\NYou could say-- you could reduce that
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to just some charity work they're doing.\NOr it could be a real, fundamental
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,strain in the way they do their business.\NWe can name some companies that
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,really have felt that they want \Nto help reshape the world
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,into being a better world.\NSo that is--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Here's one of my favorite companies\Nthat illustrate the cells in that picture.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The SC Johnson company in \NRacine, Wisconsin
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,whose products are shown over here.\NYou probably have purchased some
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of their waxes or some of their\Ninsect repellent or other things,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,but they're just winning awards\Nfor being a very caring company.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Incidentally, a book that you\Nmight want to read is called
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,"Firms of Endearment,"\Nwhich is a fancy way to say
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,companies we love.\NFirms of Endearment.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And I love the subtitle,\N"How World-Class Companies
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Profit from Passion and Purpose."\NAnd it's based on asking audiences--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,random meeting of people--is there \Nany company that you like?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,That you like a lot?\NNow, let me ask that question.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Name a company that you would\Ndearly miss if it disappeared, vanished.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[audience murmurs]\NApple! See, always Apple.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I thought you were going to say\NHarley Davidson, but that's
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,another one. Amazon.\NI would miss Amazon.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I really would. I would even \Nsubsidize it to continue.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[laughter]\NWhich one?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Costco. Of course.\NI'm with you on Costco.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Nike. Okay, well you see\Nwhat happens is,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,these are the names of the companies\Nthat came up again and again.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I don't think there's any surprises there.\NI've asked other countries to do this too.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Because it would be a different mix\Nof companies that would come up.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But the main thing is, firms of\Nendearment are so much
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,more profitable than the ones\Nthat have not been dear to us.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,One of the things is that they--\NThey're either 9 or 10 times
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,as profitable, but let's see why,\Nand without going through
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,everything here, look at the last\None. These are the attributes
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of that set of companies.\NAnd the last attribute is that
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,they spend less on marketing\Nthan rather more.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I bet you thought that the companies\Nthat were going to be dear to us
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,are the ones who are just \Nadvertising all the time.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,They're so familiar.\NWe see Coca-Cola
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,all the time. All the time.\NNo! They spend less on advertising,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,so who's doing the advertising?\NThe customer. You guys are.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So that's where you should\Nput your money.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Create a love affair.\NCreate fans with others.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now I'm going to end with two slides.\NThis is on a downer, a little bit.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,"The End of Work"\NThis is Jeremy Rifkin's book.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,It's now about 9 or 10 years old.\NAnd he says because of the slow down
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in population growth, automation\Nof factories and computers, robotics,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,3D printing, can the nation create\Nenough jobs? Can the world create
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,enough jobs for the \Npopulation, and so on.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And it raises a question about\Nmarketing's role.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Marketing's role normally is seen\Nas to sell you some things.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The basic role of marketing\Nis to create jobs.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,It is the job creator. Namely, it \Ngets you to want something
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that someone has to produce.\NSo there's a basic question:
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Does marketing really create\Nnew jobs or does it only
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,create shifts in the shares?\NLike if I switch from brand X
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to brand Y, that's not creating--\NBrand X loses a job and brand Y
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,gets a job. So, but it is true\Nthat if we're talking a new product,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,marketing will help accelerate \Nit's recognition, the awareness of it,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and intensify the drive to purchase it.\NIn other words, we buy our iPads
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and other things that come along\Npartly because they're wanted,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,they are desired objects,\Nand marketing accelerates
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the rate at which growth takes place\Nwith those new products.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The other book, and I'll end \Nwith this, is another downer.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,"The Death of Demand"
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And what is the relationship between\Nmarketing and demand?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And is-- he uses a term saturated--\Nfinding growth in a saturated
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,global economy.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I've been wrestling with that problem,\Nand growth is the issue today.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Growth is the issue.\NGrowth means jobs, and so on.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And the fact is, there are \N8 ways to grow a business.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So the title of the book is\N"Market Your Way to Grow:
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,8 Ways to Win."\NAnd you know all of them.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,You know that we can go to\Nplaces where there is growth.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,We can sell in China,\Neven if it's a low growth here.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Or Brazil. We know we can grow\Nby acquiring other firms.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,We know we can grow by innovating.\NInventing something new.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,We know we can grow by taking \Nbusiness away from someone else,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and so on and so forth.\NSo one of the things
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,we're wrestling with is how \Ndo you, as a firm, grow?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And by coincidence, another \Ncolleague of mine at
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the Kelogg School of Management,\NTim-- He just wrote a book called
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,"Defending Your Business," and it's\Nso nice that his book came out
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,with mine, because the first job \Nis always defend what you've got.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Hold on to the customer you have,\Nthen you start worrying about
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,some more growth.\NSo we both, as members
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of the department, are wrestling with\Nhow to ignore these books
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and say they're wrong, and that\Nthere is a bright future ahead.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[laughter]\NSo let me stop here
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and take any questions you might have.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[applause]
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Thank you.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[Moderator]: Okay, we have time for \Na few questions for Professor Kotler.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Is there anyone on this side of\Nthe auditorium that would like
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to ask a question?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[Kotler]: Yes. I see--\NI see you over there.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now a microphone will\Nmagically come down here.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[Moderator]: Susan will\Nbring you a microphone.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[Kotler]: And if there's any other\Npeople-- and there's a person over there
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Would you introduce yourself, please?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[Audience member]: My name is\NIris Witkowski and I've been
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,coming to the Humanities Festival\Nas long as it exists, and I very much
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,appreciate your talk today.\N[Kotler]: Thank you.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[Audience member]: My--\NI'm making a statement.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,What really drives me nuts,\Nas far as saturation is concerned,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is the placement of products\Non television programs.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,It used to be that in a movie\Nyou'd say "Oh, I saw that brand."
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,It seemed to be accidental.\NNow it's all over.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Even the anchormen have \NL.L. Bean jackets on.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[Kotler]: You know, that's the field\Ncalled product placement,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and we first got conscious of it\Nwith the James Bond films,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,where each time there was a different\Ncar, he drove an Audi or he drove
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,something else, because it was a \Nmatter of what car company would pay
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the most for the next film to \Nfeature that car, and now,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,does the person speaking pick up\Na Coke bottle or a Pepsi bottle?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And things like that. Most of us don't\Nnotice it. It's not yet that intrusive,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,but it has been discovered as a way to \Nget some visibility for certain products.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Product placement.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[Audience member]: I'm Cody Hagle.\NI'm a Charter Humanist.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Again, thank you. On the evening\Nnational news, 75 to 80 percent
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of the ads are for pharmaceuticals.\N[Kotler]: And they say awful things
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,about each one!\N[laughter]
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[Audience member]: And I believe\Nthere was a change in legal
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,requirements some years ago. \NWhat are your thoughts about that,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,because clearly that advertising \Nis driving demand, which is driving
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,costs, etcetera, etcetera.\N[Koterl]: Yeah.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,It's called over-the-counter \Nadvertising, too.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But maybe it's also prescription.\NBut basically, you can make a case
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,for it by saying consumers should know\Nwhat they might think would be
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the right thing for them, otherwise\Nthe only one who could tell them
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,what's right is the doctor. And the \Ndoctors don't like it, of course.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The doctors in some cases\Nare offended by--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,by the patient saying what he \Nwants as a prescription.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But, you know, this has happened\Nwith lawyers who are advertising now.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Doctors are advertising themselves,\Neven if they don't like that.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The expert is Prabha Sinha,\Nwho runs a firm called ZS
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and he's always working with the \Ndoctors and pharmaceutical people,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and could help answer that.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Any other things that bother \Nyou about advertising?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[Audience member]: Hi, my name\Nis Bob Michaelson.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Thank you, Professor Kotler. It is\Na pleasure to hear you in person.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,You've been a big influence to so\Nmany people, myself in particular,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,for so many years. My question--\N[Kotler]: One second.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,How many of you have read\Nany of my books? Any hands?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Thank you-- I owe thanks to you!
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[laughter]\NPlease proceed.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[Audience member]: My question\Nis in regards to social media,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and you started off your presentation\Ntalking about so much of marketing
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,was defined at the beginning of the\N20th century. We're 100 years into it.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,As you look at social media, do you see\Nacross a continuum of marketing
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,this thing a short-term phenomena \Nor radical change in as we do marketing
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,for the next century. That's part 1.\NAnd part 2: Do you see the ability
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to apply an ROI to social media?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[Kotler]: Yeah. Those are \Nexcellent questions.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I-- This is not a fad. We are in the\Ndigital age. We've passed analog,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and there's no turning back.\NThat means that--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I see the following happening.\NEvery company I talk to says
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,"We're gonna go digital too, \Nbut slowly. We're gonna rely
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,on our tradition," which is newspapers--\Nwhich are disappearing, by the way--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,radio, TV, billboards, and magazines.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So, at best, they will say this,\N"Let's turn 10% of our next budget
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,over to digital," which means\NFacebook, Twitter, and YouTube
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and so on. And let's see what happens.\NLet's hire a 12-year-old
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[laughter]\N--give them a budget,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,and hope they come back saying,\N"Look what I did with Facebook!
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Look at how many mentions!"\NAnd so on.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Now, that goes to your second question.\NHow do we measure the impact
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of using Facebook or \Nsomething like that?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Progress is being made.\NBut remember, we never
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,measured advertising right either!\NI mean, traditional advertising was a--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,was-- first of all, the basic notion\Nof traditional advertising is
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,you know that half the people will never\Nsee the-- what did Wanamaker say?
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I know that half of the money I \Nspent on advertising is wasted,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,it's just that I don't know which half!\N[laughter]
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Basically, we judge things by\Nhow many people were, in principle,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,exposed--cost per \Nthousand people exposed--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,when we make an advertising budget,\Nand frankly many of them were
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in the bathroom or the kitchen \Nwhen the ad appeared.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So... and increasingly, people\Nare more on their TVs--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,on their computer screens than they\Nare necessarily watching ads.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And I think the advertising industry\Nis making the mistake of sa--
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,putting too many ads