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From the HBR Coursepack provided along with the question, review the following core marketing reading: Customer CentricityWithout customers, businesses could not succeed. The term “customer centric” has, therefore, become synonymous with proactive business strategy worldwide. Primarily due to advances in technology, we are experiencing a fundamental shift in marketing – from a previous focus on companies to a spotlight on consumers. This gives customers a much stronger voice in both the business-to-business (B2B) and business-to-consumer (B2C) markets.This core reading discusses how customer centricity fits into an organization in three ways: as part of a knowledge management system (understanding the customer);as part of developing strategic competence as a learning organization (building a customer-centric culture); andas a foundation for corporate strategy development and execution (serving the customer).Following your review, prepare responses to the following discussion questions:According to research, what are some of the key customer-centric characteristics of successful companies?What are some of the ways that technology has shifted power from companies to consumers?In discussing Net Promoter Score (NPS), why does Reicheld suggest doing surveys frequently rather than annually or just a few times a year?Note:Provide a min. of 500 words of reply.Must list all references and cite your source(s) within the body of the initial post.Every sentence with material from an outside source must be cited. Just putting a citation at the end of a paragraph or the entire post is not accurate.Citations must contain the page number on which you located the information. Eg. For our textbook material from page 15 would appear as (Kloppenborg et al. 2019, p 15)
hbr_s_10_must_reads_on_strategic_marketing__with_featured_article_marketing_myopia__by_theodore_levitt_.pdf

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HBR Guide Series
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Stop pushing products—and start
cultivating relationships with the right
customers.
If you read nothing else on marketing that delivers
competitive advantage, read these 10 articles. We’ve
combed through hundreds of articles in the Harvard
Business Review archive and selected the most
important ones to help you reinvent your marketing
by putting it—and your customers—at the center of
your business.
Leading experts such as Theodore Levitt and Clayton
Christensen provide the insights and advice you
need to:
• Figure out what business you’re really in
• Create products that perform the jobs people need
to get done
• Get a bird’s-eye view of your brand’s strengths and
weaknesses
• Tap a market that’s larger than China and India
combined
• Deliver superior value to your B2B customers
• End the war between sales and marketing
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Strategic Marketing
Looking for smart answers to your most
pressing work challenges? Try these and
other titles in the practical HBR Guide
series:
On
Strategic
Marketing

“Marketing Myopia”
By Theodore Levitt
Classic ideas, enduring
advice, the best thinkers—
all in one place
HBR’s 10 Must Reads series is the
definitive collection of ideas and best
practices for aspiring and experienced
leaders alike. These books offer essential
reading selected from the pages of
Harvard Business Review on topics
critical to the success of every manager.
On
Strategic
Marketing
Each book is packed with advice and
inspiration from leading experts such
as Clayton Christensen, Peter Drucker,
Rosabeth Moss Kanter, John Kotter,
Michael Porter, Daniel Goleman,
Theodore Levitt, and Rita Gunther
McGrath.
Titles in this bestselling series include:
• HBR’s 10 Must Reads: The Essentials
• HBR’s 10 Must Reads on Change Management
• HBR’s 10 Must Reads on Communication
• HBR’s 10 Must Reads on Leadership
• HBR’s 10 Must Reads on Managing People
• HBR’s 10 Must Reads on Managing Yourself
• HBR’s 10 Must Reads on Strategy
• HBR’s 10 Must Reads on Teams
If you read nothing else on marketing that delivers
competitive advantage, read these definitive articles
from Harvard Business Review.
9 781422 189887
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HBR’S
10
MUST
READS
On
Strategic
Marketing
This document is authorized for use only by sounil bhaumik in BUOL 733, Strategic Marketing-1 taught by Daniel Kanyam, University of the Cumberlands
from Aug 2020 to Feb 2021.
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HBR’s 10 Must Reads series is the definitive collection of ideas
and best practices for aspiring and experienced leaders alike.
These books offer essential reading selected from the pages of
Harvard Business Review on topics critical to the success of
every manager.
Titles include:
HBR’s 10 Must Reads on Change Management
HBR’s 10 Must Reads on Collaboration
HBR’s 10 Must Reads on Communication
HBR’s 10 Must Reads on Innovation
HBR’s 10 Must Reads on Leadership
HBR’s 10 Must Reads on Making Smart Decisions
HBR’s 10 Must Reads on Managing People
HBR’s 10 Must Reads on Managing Yourself
HBR’s 10 Must Reads on Strategic Marketing
HBR’s 10 Must Reads on Strategy
HBR’s 10 Must Reads on Teams
HBR’s 10 Must Reads: The Essentials
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from Aug 2020 to Feb 2021.
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HBR’S
10
MUST
READS
On
Strategic
Marketing
HARVARD BUSINESS REVIEW PRESS
Boston, Massachusetts
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Find more digital content or join the discussion on www.hbr.org.
Copyright 2013 Harvard Business School Publishing Corporation
All rights reserved
No part of this publication may be reproduced, stored in or introduced into a
retrieval system, or transmitted, in any form, or by any means (electronic,
mechanical, photocopying, recording, or otherwise), without the prior
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School Publishing, 60 Harvard Way, Boston, Massachusetts 02163.
The web addresses referenced in this book were live and correct at the time of
the book’s publication but may be subject to change.
Library of Congress Cataloging-in-Publication Data
HBR’s 10 must reads on strategic marketing.
p. cm. — (HBR’s 10 must read series)
Includes index.
ISBN 978-1-4221-8988-7
1. Marketing—Management. 2. Strategic planning. I. Harvard business review. II. Title: HBR’s ten must reads on strategic marketing. III. Title: Harvard
business review’s 10 must reads on strategic marketing.
HF5415.13.H368 2013
658.8’02—dc23
2012037855
ISBN: 9781422189887
eISBN: 9781422191521
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Contents
Rethinking Marketing 1
by Roland T. Rust, Christine Moorman, and Gaurav Bhalla
Branding in the Digital Age 15
by David C. Edelman
Marketing Myopia 29
by Theodore Levitt
Marketing Malpractice 57
by Clayton M. Christensen, Scott Cook, and Taddy Hall
The Brand Report Card 77
by Kevin Lane Keller
The Female Economy 97
by Michael J. Silverstein and Kate Sayre
Customer Value Propositions in Business Markets 113
by James C. Anderson, James A. Narus, and Wouter van Rossum
Getting Brand Communities Right 133
by Susan Fournier and Lara Lee
The One Number You Need to Grow 151
by Frederick F. Reichheld
Ending the War Between Sales and Marketing 171
by Philip Kotler, Neil Rackham, and Suj Krishnaswamy
About the Contributors
Index
195
197
v
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HBR’S
10
MUST
READS
On
Strategic
Marketing
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Rethinking
Marketing
by Roland T. Rust, Christine Moorman,
and Gaurav Bhalla
I
IMAGINE A BRAND MANAGER sitting in his office developing a marketing strategy for his company’s new sports drink. He identifies which
broad market segments to target, sets prices and promotions, and
plans mass media communications. The brand’s performance will
be measured by aggregate sales and profitability, and his pay and future prospects will hinge on those numbers.
What’s wrong with this picture? This firm—like too many—is still
managed as if it were stuck in the 1960s, an era of mass markets, mass
media, and impersonal transactions. Yet never before have companies had such powerful technologies for interacting directly with customers, collecting and mining information about them, and tailoring
their offerings accordingly. And never before have customers expected to interact so deeply with companies, and each other, to
shape the products and services they use. To be sure, most companies use customer relationship management and other technologies
to get a handle on customers, but no amount of technology can really
improve the situation as long as companies are set up to market products rather than cultivate customers. To compete in this aggressively
interactive environment, companies must shift their focus from
driving transactions to maximizing customer lifetime value. That
means making products and brands subservient to long-term
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RUST, MOORMAN, AND BHALLA
customer relationships. And that means changing strategy and structure across the organization—and reinventing the marketing department altogether.
Cultivating Customers
Not long ago, companies looking to get a message out to a large population had only one real option: blanket a huge swath of customers
simultaneously, mostly using one-way mass communication. Information about customers consisted primarily of aggregate sales statistics augmented by marketing research data. There was little, if
any, direct communication between individual customers and the
firm. Today, companies have a host of options at their disposal, making such mass marketing far too crude.
The exhibit “Building relationships” shows where many companies are headed, and all must inevitably go if they hope to remain
competitive. The key distinction between a traditional and a
customer-cultivating company is that one is organized to push products and brands whereas the other is designed to serve customers
and customer segments. In the latter, communication is two-way
and individualized, or at least tightly targeted at thinly sliced segments. This strategy may be more challenging for firms whose distribution channels own or control customer information—as is the
case for many packaged-goods companies. But more and more firms
now have access to the rich data they need to make a customercultivating strategy work.
B2B companies, for instance, use key account managers and
global account directors to focus on meeting customers’ evolving
needs, rather than selling specific products. IBM organizes according to customer needs, such as energy efficiency or server consolidation, and coordinates its marketing efforts across products for a
particular customer. IBM’s Insurance Process Acceleration Framework is one example of this service-oriented architecture. Customer
and industry specialists in IBM’s insurance practice work with lead
customers to build fast and flexible processes in areas like claims,
new business processing, and underwriting. Instead of focusing on
2
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RETHINKING MARKETING
Idea in Brief
Companies have never before had
such powerful technologies for
understanding and interacting
with customers. Yet too many
firms operate as if they’re stuck in
the 1960s, an era of mass marketing, mass media, and impersonal
transactions.
To compete in an aggressively
interactive environment, companies
must shift their focus from driving
transactions to maximizing
customer lifetime value. That
means products and brands must
be made subservient to customer
relationships. And that means
transforming the marketing
department—traditionally focused
on current sales—into a “customer
department” by: replacing the
CMO with a chief customer officer,
cultivating customers rather than
pushing products, adopting new
performance metrics, and
bringing under the marketing
umbrella all customer-focused
departments, including R&D and
customer service.
Building relationships
Product-Manager Driven
Many companies still depend on
product managers and one-way
mass marketing to push a product
to many customers.
Customer-Manager Driven
What’s needed is customer managers
who engage individual customers or
narrow segments in two-way communications, building long-term relationships
by promoting whichever of the company’s
products the customer would value
most at any given time.
Customer
Product
Customer
Product
3
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RUST, MOORMAN, AND BHALLA
short-term product sales, IBM measures the practice’s performance
according to long-term customer metrics.
Large B2B firms are often advanced in their customer orientation,
and some B2C companies are making notable progress. Increasingly,
they view their customer relationships as evolving over time, and
they may hand off customers to different parts of the organization
selling different brands as their needs change. For instance, Tesco, a
leading UK retailer, has recently made significant investments in
analytics that have improved customer retention. Tesco uses its
data-collecting loyalty card (the Clubcard) to track which stores customers visit, what they buy, and how they pay. This information has
helped Tesco tailor merchandise to local tastes and customize offerings at the individual level across a variety of store formats—from
sprawling hypermarts to neighborhood shops. Shoppers who buy diapers for the first time at a Tesco store, for example, receive coupons
by mail not only for baby wipes and toys but also for beer, according
to a Wall Street Journal report. Data analysis revealed that new
fathers tend to buy more beer because they can’t spend as much
time at the pub.
On the services side, American Express actively monitors customers’ behavior and responds to changes by offering different
products. The firm uses consumer data analysis and algorithms to
determine customers’ “next best product” according to their changing profiles and to manage risk across cardholders. For example, the
first purchase of an upper-class airline ticket on a Gold Card may
trigger an invitation to upgrade to a Platinum Card. Or, because of
changing circumstances a cardholder may want to give an additional
card with a specified spending limit to a child or a contractor. By offering this service, American Express extends existing customers’
spending ability to a trusted circle of family members or partners
while introducing the brand to potential new customers.
American Express also leverages its strategic position between
customers and merchants to create long-term value across both
relationships. For instance, the company might use demographic
data, customer purchase patterns, and credit information to observe
that a cardholder has moved into a new home. AmEx capitalizes on
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RETHINKING MARKETING
that life event by offering special Membership Rewards on purchases from merchants in its network in the home-furnishings retail
category.
One insurance and financial services company we know of also
proved adept at tailoring products to customers’ life events. Customers who lose a spouse, for example, are flagged for special attention from a team that offers them customized products. When a
checking account or credit-card customer gets married, she’s a good
cross-selling prospect for an auto or home insurance policy and a
mortgage. Likewise, the firm targets new empty nesters with home
equity loans or investment products and offers renter’s insurance to
graduating seniors.
Reinventing Marketing
These shining examples aside, boards and C-suites still mostly pay
lip service to customer relationships while focusing intently on
selling goods and services. Directors and management need to
spearhead the strategy shift from transactions to relationships and
create the culture, structure, and incentives necessary to execute
the strategy.
What does a customer-cultivating organization look like? Although no company has a fully realized customer-focused structure,
we can see the features of one in a variety of companies making the
transition. The most dramatic change will be the marketing department’s reinvention as a “customer department.” The first order of
business is to replace the traditional CMO with a new type of leader—
a chief customer officer.
The CCO
Chief customer officers are increasingly common in companies
worldwide—there are more than 300 today, up from 30 in 2003.
Companies as diverse as Chrysler, Hershey’s, Oracle, Samsung,
Sears, United Airlines, Sun Microsystems, and Wachovia now have
CCOs. But too often the CCO is merely trying to make a conventional
organization more customer-centric. In general, it’s a poorly defined
5
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RUST, MOORMAN, AND BHALLA
role—which may account for CCOs’ dubious distinction as having
the shortest tenure of all C-suite executives.
To be effective, the CCO role as we conceive it must be a powerful
operational position, reporting to the CEO. This executive is responsible for designing and executing the firm’s customer relationship
strategy and overseeing all customer-facing functions.
A successful CCO promotes a customer-centric culture and removes obstacles to the flow of customer information throughout
the organization. This includes getting leaders to regularly engage
with customers. At USAA, top managers spend two or three hours a
week on the call-center phones with customers. This not only
shows employees how serious management is about customer
interaction but helps managers understand customers’ concerns.
Likewise, Tesco managers spend one week a year working in stores
and interacting with customers as part of the Tesco Week in Store
(TWIST) program.
As managers shift their focus to customers, and customer
information increasingly drives decisions, organizational structures
that block information flow must be torn down. The reality is that
despite large investments in acquiring customer data, most firms
underuti …
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