WEBVTT 1 00:00:11.680 --> 00:00:13.080 You 2 00:00:30.000 --> 00:00:30.200 You 3 00:01:04.260 --> 00:01:04.780 You 4 00:01:04.780 --> 00:01:06.780 It is Tuesday morning the 3rd of October 5 00:01:08.280 --> 00:01:08.800 1961 6 00:01:09.540 --> 00:01:14.640 Business leaders from all over the New York area have assembled in the grand ballroom of the hotel Plaza 7 00:01:15.440 --> 00:01:19.760 They are here to participate in a comprehensive discussion of marketing 8 00:01:21.520 --> 00:01:23.320 Representing the host company 9 00:01:23.320 --> 00:01:25.180 Leo H. Shane Hoffman 10 00:01:25.180 --> 00:01:30.960 President of Container Corporation of America opens the seminar with an introduction of the day's theme 11 00:01:30.960 --> 00:01:36.740 On behalf of Container Corporation of America. It's my pleasure to welcome you to this seminar 12 00:01:37.380 --> 00:01:43.440 We are honored to be able to present to you distinguished panelists who represent the management of companies 13 00:01:43.980 --> 00:01:47.540 functioning in several vital areas of American business 14 00:01:48.320 --> 00:01:53.120 The seminar is being held today to discuss marketing the word marketing since 15 00:01:53.640 --> 00:01:57.840 1946 has become as important in the vocabulary of business 16 00:01:58.420 --> 00:02:02.640 as shareholder profit loss or taxes 17 00:02:03.280 --> 00:02:09.440 The one word represents a concept which includes all of a company's selling activities 18 00:02:09.440 --> 00:02:13.760 from the point of production to the point of purchase as 19 00:02:13.760 --> 00:02:16.080 Our moderator stated in a recent speech 20 00:02:16.740 --> 00:02:22.160 Marketing of all the functions of business makes business work for itself 21 00:02:22.680 --> 00:02:30.000 It's marketing that changes people's demands in the sense of bringing them up quicker than they would have developed spontaneously 22 00:02:31.440 --> 00:02:34.020 Marketing actually pushes the pace of things 23 00:02:34.860 --> 00:02:40.420 Faster so the dynamic circle of industry keeps spinning faster and faster 24 00:02:40.420 --> 00:02:44.720 Mr. Shane Hoffman turns the proceedings over to Edward C. Bursts 25 00:02:44.720 --> 00:02:48.060 professor of marketing Harvard Business School and 26 00:02:48.060 --> 00:02:49.880 editor of the Harvard Business Review 27 00:02:51.660 --> 00:02:55.100 Professor Bursts introduces the seminar panelists 28 00:02:55.640 --> 00:02:59.900 William T. French president associated merchandising Corporation 29 00:03:00.680 --> 00:03:05.480 Harley v. McNamara chairman of the executive committee national tea company 30 00:03:06.480 --> 00:03:11.040 Herbert M. Cleaves executive vice president general foods Corporation 31 00:03:12.360 --> 00:03:15.440 Thomas B. Adams president Campbell Ewald Company 32 00:03:16.440 --> 00:03:23.680 Our Lee waterman vice president and general manager consumer products division of Corning glass company 33 00:03:23.680 --> 00:03:26.480 and Marvin Bauer 34 00:03:26.480 --> 00:03:29.220 managing director of McKinsey and Company 35 00:03:29.220 --> 00:03:30.840 management consultants 36 00:03:30.840 --> 00:03:37.280 So now without any further ado. I would like to simply read the paragraph which was 37 00:03:39.040 --> 00:03:43.240 Put together to try to express the problem that we're all attacking 38 00:03:45.600 --> 00:03:47.940 And then to turn the 39 00:03:47.940 --> 00:03:50.400 Discussion over to the panel. Let me read this paragraph 40 00:03:50.400 --> 00:03:54.960 Today with narrowing product differentials and shrinking margins per unit of sales 41 00:03:55.480 --> 00:04:01.500 Top management must take an increasing part in marketing decisions for more and more companies 42 00:04:01.500 --> 00:04:04.620 Competitive leverage depends on marketing efficiency 43 00:04:04.620 --> 00:04:12.340 How can the company organize itself to adopt the marketing viewpoint as a way of life and put it into action? 44 00:04:13.300 --> 00:04:21.380 How can the company develop its marketing strategy to eat into competitors business while strengthening its hold on existing customers at the very time? 45 00:04:22.200 --> 00:04:27.480 competitors are trying to do the same thing the answer can only come from the top and 46 00:04:27.480 --> 00:04:34.020 Representing the top is your panel and so to lead off Bill French. Will you please? 47 00:04:35.380 --> 00:04:35.800 start 48 00:04:35.800 --> 00:04:36.480 Thank you 49 00:04:38.120 --> 00:04:44.160 The day of strong consumer loyalty to advertise brands is past 50 00:04:45.460 --> 00:04:48.680 Today at best there is brand acceptance 51 00:04:49.360 --> 00:04:56.760 the giant retailers and not the advertised brands own what consumer loyalty exists I 52 00:04:58.380 --> 00:05:01.560 Think there are many reasons for this and I'd like to just list a few of them 53 00:05:02.540 --> 00:05:03.480 first 54 00:05:03.480 --> 00:05:10.640 The brands by and large have taken the safe route by copying the leader instead of seeking distinction 55 00:05:10.640 --> 00:05:16.000 And I think this is true both in product characteristics and in advertising 56 00:05:16.000 --> 00:05:22.240 Second with the countless advertising messages that are assailing the public's eyes and ears every day 57 00:05:22.820 --> 00:05:24.720 Even a distinctive message 58 00:05:24.720 --> 00:05:27.220 Is hard to register? 59 00:05:28.080 --> 00:05:28.620 third 60 00:05:28.620 --> 00:05:36.900 The giant retailers can and do establish strong local identity and acceptance 61 00:05:38.200 --> 00:05:39.280 fourth 62 00:05:39.820 --> 00:05:46.060 These giant retailers have strengthened their consumer franchise very shrewdly through their control of price 63 00:05:46.880 --> 00:05:48.200 shelf space 64 00:05:48.200 --> 00:05:49.700 promotional weight 65 00:05:49.700 --> 00:05:53.740 advertising emphasis so that they have played up their own brands and 66 00:05:54.480 --> 00:05:56.200 Minimize the national brands 67 00:05:56.200 --> 00:06:00.620 Now if the top management of companies distributing 68 00:06:01.240 --> 00:06:08.820 National brands don't get deeply into the thick of marketing action and orient their companies policies towards long-range marketing objectives 69 00:06:08.820 --> 00:06:15.900 They may find their company in serious trouble because of these retailer controlled brands. I 70 00:06:15.900 --> 00:06:23.780 Submit the top management should divest itself of day-to-day operating problems and devote its primary efforts to providing marketing leadership 71 00:06:24.540 --> 00:06:31.620 Working through a task force of key marketing executives the chief executive of the company could then stimulate 72 00:06:31.620 --> 00:06:34.740 direct and strengthen his company's marketing plans and 73 00:06:35.360 --> 00:06:41.380 Strategy and most effectively discharge his responsibility for profit both short-range and long-range 74 00:06:42.160 --> 00:06:43.840 Thank you. Thank you bill 75 00:06:43.840 --> 00:06:45.960 Mr. Mack, what do you have to say now? 76 00:06:46.720 --> 00:06:50.420 Well, first of all, I want to thank bill for giving national key preference 77 00:06:50.420 --> 00:06:53.980 This first time we've been ahead of the hay and pee for a long long time 78 00:06:55.820 --> 00:06:59.040 Speaking as a representative of the chain store industry 79 00:06:59.040 --> 00:07:06.040 Let me remind you that our industry is in its simplest form the mass distribution of food products 80 00:07:06.040 --> 00:07:08.460 Which is in essence marketing 81 00:07:08.460 --> 00:07:14.340 our top management's decision are made with marketing in mind always I 82 00:07:15.620 --> 00:07:22.780 Personally feel I've always been in the middle of a market revolution having been in this chain store field for seven forty seven years 83 00:07:23.480 --> 00:07:29.540 Perhaps herein lies the reason for the rapid growth in the undoubted strength of the supermarket industry today 84 00:07:29.540 --> 00:07:33.400 It has always been willing to accept new ideas 85 00:07:33.960 --> 00:07:35.260 new developments 86 00:07:35.260 --> 00:07:43.340 Change we have had to develop a flexible open mind attitude about almost every phase of our operations 87 00:07:44.400 --> 00:07:48.500 Ten years ago we faced a decision as to whether or not 88 00:07:48.500 --> 00:07:54.900 Shopping centers serve a real need in the distribution of food or whether we would be better off without those neighbors 89 00:07:54.900 --> 00:08:01.420 Who as it seemed to us then we're just trying to muscle in on our magnificent traffic getting system 90 00:08:02.180 --> 00:08:06.300 You know our decision and even though we have had some tough problems 91 00:08:07.100 --> 00:08:10.320 Shopping centers have been an integral part of supermarket 92 00:08:10.320 --> 00:08:14.860 But the shopping center concept is still in its development stage 93 00:08:15.480 --> 00:08:19.680 We are now faced with the arrival of the so-called discount houses 94 00:08:19.680 --> 00:08:28.040 We have given this serious thought and although we are not convinced that discounting is the answer to the future distribution of distribution of goods 95 00:08:28.040 --> 00:08:34.380 We do feel that there is some merit to this merchandising concept and that all manufacturers 96 00:08:34.380 --> 00:08:37.240 advertisers and merchandise retailers should 97 00:08:37.240 --> 00:08:42.360 Inter-expanding role of organizing for marketing action consider this most Jewishly 98 00:08:43.520 --> 00:08:44.500 Thank You 99 00:08:46.380 --> 00:08:49.320 Herb we'll take up the battle for the manufacturer now 100 00:08:50.080 --> 00:08:52.760 Today we have a new concept of marketing 101 00:08:53.440 --> 00:08:59.100 The best definition of it I've seen was written by a Theodore Levitt in the July August 102 00:08:59.100 --> 00:09:06.440 1960 issue of the Harvard Business Review in an article entitled marketing myopia my quote 103 00:09:08.000 --> 00:09:12.380 The difference between marketing and selling is more than semantic 104 00:09:13.300 --> 00:09:15.800 Selling focuses on the needs of the seller 105 00:09:16.780 --> 00:09:18.880 marketing on the needs of the buyer 106 00:09:20.180 --> 00:09:24.760 Selling is preoccupied with the sellers need to convert his product into cash 107 00:09:25.880 --> 00:09:30.020 Marketing with the idea of satisfying the needs of the customer 108 00:09:30.020 --> 00:09:35.720 By means of the product and the whole cluster of things associated with creating 109 00:09:36.500 --> 00:09:39.860 Delivering finally consuming it and the quote 110 00:09:41.140 --> 00:09:48.820 With such a concept it's apparent that we are just as much in the business of creating customers as we are in the business of creating 111 00:09:48.820 --> 00:09:49.520 products 112 00:09:49.520 --> 00:09:51.800 So let's organize with this in mind 113 00:09:52.420 --> 00:09:59.320 To professor bursts question as to how the really productive marketing spirit is organized within a company 114 00:09:59.320 --> 00:10:01.800 William T. French makes this response 115 00:10:02.640 --> 00:10:10.040 You talked about attitude and the attitude that he expressed in terms of marketing taking a consumer point of view 116 00:10:10.860 --> 00:10:16.980 Nothing more and more as corporations get big that you you can't really organize in the technical sense 117 00:10:16.980 --> 00:10:23.520 You can't organize in terms of laying out an organization chart and laying down policies and procedures and expect it to work 118 00:10:23.520 --> 00:10:30.780 You must organize an attitude and you have to organize this attitude that Herb said they're organizing in the general foods company 119 00:10:31.300 --> 00:10:37.940 Because I think today more and more success or failure in business depends on the attitude of an organization 120 00:10:37.940 --> 00:10:42.400 Much more than on its even its its technical abilities 121 00:10:43.400 --> 00:10:47.020 Tom what's your what's your experience as a as an advertising man? 122 00:10:47.120 --> 00:10:54.700 Do you find the people that you deal with have they come come to you with the with the right marketing attitude in hand? 123 00:10:55.120 --> 00:10:56.920 Well, it varies we have 124 00:10:56.920 --> 00:11:00.280 38 clients and I would say there's 38 different approaches 125 00:11:00.900 --> 00:11:04.940 But I see some definite tendencies in the last four or five years 126 00:11:04.940 --> 00:11:06.600 within these 127 00:11:06.600 --> 00:11:08.500 organizations to 128 00:11:08.500 --> 00:11:12.700 Give more attention at the management level to these problems of marketing 129 00:11:13.860 --> 00:11:18.160 Marvin what's what's your experience and people come to you with problems. So you ought to have an even 130 00:11:19.100 --> 00:11:26.500 Well, I don't think you can generalize about organization structure if that's what you're referring to and as far as attitude is concerned 131 00:11:26.500 --> 00:11:29.880 It's a matter of leadership and philosophy of the business 132 00:11:29.880 --> 00:11:39.080 Which is the philosophy itself emanates from some kind of leadership and acceptance of of an approach to the business 133 00:11:39.080 --> 00:11:43.040 As a whole so it doesn't seem to me that 134 00:11:43.040 --> 00:11:48.480 Attitude is a function of organization structure. It's an it's a function of leadership and 135 00:11:49.880 --> 00:11:53.260 The leadership of course is controlled by the chief executive 136 00:11:53.260 --> 00:12:00.360 Thomas B Adams expresses the view of his advertising agency toward what he calls the marketing mix 137 00:12:01.020 --> 00:12:09.140 First of all a modern advertising agency no matter how much it prides itself on traditions of media shrewdness or creative ingenuity 138 00:12:10.540 --> 00:12:16.520 Must have the flexibility today to include marketing in its services and 139 00:12:16.520 --> 00:12:20.960 Increase the scope of its marketing as the times demand and certainly the times do demand 140 00:12:21.600 --> 00:12:29.480 It is in fact the constant change in the growing complexities of our time that make marketing services a must 141 00:12:30.620 --> 00:12:36.400 Traditionalists in our business would take exception with this pronouncement and still fall back on the adage that 142 00:12:37.000 --> 00:12:41.220 Making ad ads is our only business. I 143 00:12:41.220 --> 00:12:42.880 Take exception to that 144 00:12:43.420 --> 00:12:48.220 Marketing knowledge and skills should be flexibly intermingled with all the other services of an agency 145 00:12:48.220 --> 00:12:51.060 With their main function to give intelligent guidance 146 00:12:51.060 --> 00:12:58.260 the flexibility of these other services and their main goal the same as the agencies the creation and placement of 147 00:12:58.880 --> 00:13:00.200 persuasive communication 148 00:13:00.200 --> 00:13:08.520 The agency which puts marketing by itself ahead of advertising as we think of it has forgotten what business it's in 149 00:13:08.520 --> 00:13:12.560 There's too much automatic on thinking reliance these days 150 00:13:12.560 --> 00:13:17.140 I believe on one method of research or another to get real information 151 00:13:17.140 --> 00:13:21.860 You have to be selective and to use whatever methods best approach the problem 152 00:13:21.860 --> 00:13:28.560 Sometimes you have to mix the methods together and always until something is developed that can't be faulted 153 00:13:29.120 --> 00:13:30.460 You have to be critical 154 00:13:31.200 --> 00:13:32.720 Thank You Tom 155 00:13:33.240 --> 00:13:36.960 Lee you want to carry it on please in 156 00:13:36.960 --> 00:13:37.900 1930 157 00:13:38.540 --> 00:13:47.100 There was spent in this country a hundred and fifty six million dollars for scientific activity and last year that was eleven billion dollars 158 00:13:47.100 --> 00:13:51.760 That's a sixty times increase in virtually one generation 159 00:13:52.700 --> 00:13:54.500 and it represents 160 00:13:55.260 --> 00:14:02.120 Something over a fifteen times increase in terms of the commitment of manpower. I 161 00:14:02.120 --> 00:14:04.980 Don't think any of us know exactly what this portends 162 00:14:05.960 --> 00:14:09.800 But it seems to me that it makes no sense at all 163 00:14:10.420 --> 00:14:19.100 Unless it results in a tremendously increased flow of new concepts new materials new processes new products and new 164 00:14:20.880 --> 00:14:21.020 potentials 165 00:14:21.560 --> 00:14:25.360 And it seems to me that there also follows from this the fact that 166 00:14:25.360 --> 00:14:32.980 The average lifespan of a product which is what we're concerned primarily about has to be shorter 167 00:14:33.660 --> 00:14:35.980 We're going to have less time to develop it 168 00:14:37.020 --> 00:14:40.760 To get it into the market to make it a profitable thing 169 00:14:41.340 --> 00:14:43.600 so in the background of the picture 170 00:14:44.180 --> 00:14:48.100 You have on one side a rapidly accelerating rate of change 171 00:14:49.220 --> 00:14:53.420 And on the other a continuously increasing cost of creating new products 172 00:14:54.040 --> 00:14:57.980 Putting it another way. It's costing much more in terms of 173 00:14:59.380 --> 00:15:00.020 men 174 00:15:00.960 --> 00:15:07.020 Skill and money to bring a new product to market which on the average will have a shorter life 175 00:15:08.900 --> 00:15:11.540 Now in the middle of this picture I would put marketing 176 00:15:13.140 --> 00:15:20.640 Saying rather casually that four out of five new products fail in the marketplace. I 177 00:15:20.640 --> 00:15:22.260 Don't know whether this is so or not 178 00:15:22.860 --> 00:15:25.940 My retail friends give me no particular reason to doubt it 179 00:15:27.470 --> 00:15:28.830 It's a matter of fact 180 00:15:28.830 --> 00:15:35.670 Nine out of ten is sometimes used but whether it's four out of five or nine out of ten is probably not significant 181 00:15:35.670 --> 00:15:39.410 What is significant is that has been it has been accepted? 182 00:15:40.450 --> 00:15:44.970 It's usually stated and approximately the tone of voice that you might say it's going to rain tomorrow 183 00:15:46.890 --> 00:15:51.170 As something that was foreordained by some divine law of averages and 184 00:15:52.930 --> 00:15:54.490 To the degree that it's true 185 00:15:54.490 --> 00:16:00.530 It's something with which management has to be concerned because it's economic waste 186 00:16:02.110 --> 00:16:04.610 And it seems to me that it is a problem to which 187 00:16:05.570 --> 00:16:08.330 Foreway from management is going to look to market 188 00:16:09.310 --> 00:16:15.950 From his position as a professional marketing man Marvin Bauer sees a deeper meaning in the term 189 00:16:15.950 --> 00:16:17.690 marketing strategy 190 00:16:18.430 --> 00:16:20.510 any discussion of 191 00:16:20.510 --> 00:16:25.730 It seems to me must be concerned with the means for arriving at some kind of an objective 192 00:16:26.670 --> 00:16:29.190 and I think as a student of management that 193 00:16:29.730 --> 00:16:30.870 one of the 194 00:16:30.870 --> 00:16:38.870 Difficulties that we have in having marketing start at the top is because we get tangled up in feeling that the 195 00:16:38.870 --> 00:16:45.910 Objective of business is a profit. I think this is a an unsound and in fact a dangerous concept 196 00:16:46.450 --> 00:16:53.430 The objective of a business is to serve consumers better than your competitors serves them so as to become entitled to a profit 197 00:16:53.430 --> 00:16:58.030 and if we could get the chief executive of any business to accept a 198 00:16:59.050 --> 00:17:04.690 philosophy that the objective of his business is not to make a profit but to serve 199 00:17:04.690 --> 00:17:09.710 Consumers or users if you're in the industrial field so as to become entitled to a profit 200 00:17:09.710 --> 00:17:12.290 Then you get an approach 201 00:17:12.290 --> 00:17:17.650 To serving the consumers accepted within the business and you get the leadership 202 00:17:17.650 --> 00:17:22.130 That would flow from the top and put the marketing function in its proper perspective 203 00:17:22.790 --> 00:17:24.830 if everybody in the business 204 00:17:25.450 --> 00:17:26.550 concentrates on 205 00:17:26.550 --> 00:17:32.490 Producing products that will entitle that business to a profit a lot of these things will fall into place 206 00:17:32.490 --> 00:17:38.430 And a lot of the differences of opinion that we've been talking about here this morning will fade away 207 00:17:38.430 --> 00:17:43.590 Because everybody will then be concentrating on what it seems to me has been the great 208 00:17:44.710 --> 00:17:47.750 Productivity of the profit and loss system and that is serving people 209 00:17:48.590 --> 00:17:57.110 After the luncheon recess during which Martin Mayer addressed the seminar the panel reassembles to answer questions from the audience and each other 210 00:17:58.350 --> 00:18:05.250 Mr. Mayer who has joined the afternoon panel is asked by professor Bursts to clarify an earlier point 211 00:18:05.250 --> 00:18:12.610 When you said in your talk that there's no doubt about who is responsible for the growth of the discount houses I 212 00:18:13.770 --> 00:18:18.210 Take it. I hope I'm not wrong. I take it that you meant that manufacturers themselves 213 00:18:19.150 --> 00:18:22.850 Yes, we're responsible for these discount houses because they have 214 00:18:24.530 --> 00:18:29.730 Encouraged the practice by what they've done not necessarily openly or perhaps even consciously 215 00:18:29.730 --> 00:18:35.190 But I wish you to expand on that a little bit I think that they've encouraged it relatively openly 216 00:18:35.190 --> 00:18:40.250 I don't think there's been too much secrecy about all of this their job is to move what they make 217 00:18:41.310 --> 00:18:44.310 and of course we we were up against a 218 00:18:44.310 --> 00:18:49.970 Remarkable situation where the entire markup structure of the retailing business was based on ladies dresses 219 00:18:49.970 --> 00:18:58.510 Which were very expensive to sell so that there was a considerable opening for people who were not dealing primarily in dry goods 220 00:18:58.510 --> 00:18:59.270 to 221 00:18:59.270 --> 00:19:00.450 to 222 00:19:01.590 --> 00:19:03.910 move in and to 223 00:19:03.910 --> 00:19:07.850 Set up what was for them a profitable markup 224 00:19:08.450 --> 00:19:14.090 And the manufacturer once he discovered that these people could sell a lot of good 225 00:19:14.090 --> 00:19:21.070 Was extremely happy to have them around as a matter of fact the year as it's no great secret that the credit term some of these 226 00:19:21.070 --> 00:19:27.050 People have got are at least as good as those which have been made available to more 227 00:19:28.150 --> 00:19:35.770 Established stores now while this has been happening quite a number of manufacturers have been making pious comments at the forums like this one 228 00:19:36.670 --> 00:19:43.130 But at the same time are and I would and this is this is to me a very fundamental point if you're dealing with a market 229 00:19:43.130 --> 00:19:47.070 You're dealing with a reality. You are not dealing with moral consideration 230 00:19:48.730 --> 00:19:49.210 I'm 231 00:19:49.210 --> 00:19:55.770 Alfred plant and I'm responsible for advertising and marketing at the block drug company, and I want to open up a different can of worms 232 00:19:55.770 --> 00:20:04.010 The topic of today's seminar was top management's expanding role in marketing and I came here frankly 233 00:20:04.010 --> 00:20:08.250 Hoping I would hear something about that how far should top management go 234 00:20:08.990 --> 00:20:15.410 Does marketing call for professional experienced executives or is it just a seat-of-the-pants operation? 235 00:20:16.070 --> 00:20:21.230 That can be done by so-called good judgment or by mother-in-law surveys 236 00:20:21.230 --> 00:20:23.050 taken by the president 237 00:20:24.390 --> 00:20:28.370 There are companies where the chief executive is a marketing oriented executive 238 00:20:28.950 --> 00:20:32.690 There are other companies where the chief executive is far removed from this 239 00:20:33.690 --> 00:20:36.410 Are there's a panel any suggestions have they any? 240 00:20:37.670 --> 00:20:42.850 rules of the road to suggest in this area because I think that 241 00:20:43.450 --> 00:20:46.390 Obviously as a marketing man, I believe that I'm a professional 242 00:20:46.390 --> 00:20:53.030 I believe that many chief executives are not professionals in this area and I would resent if this were the case 243 00:20:53.050 --> 00:20:56.750 They're telling me how to do my job. I 244 00:20:56.750 --> 00:21:01.370 Think like any question that you can ask in this in a situation like this. There is no 245 00:21:02.130 --> 00:21:05.530 simple yes or no black and white answer, but 246 00:21:06.390 --> 00:21:10.530 my own feeling on this which is of course all any of us can express is that 247 00:21:13.130 --> 00:21:20.130 Today with everyone facing many serious competitive problems and marking their own products 248 00:21:20.130 --> 00:21:21.910 Are you gentlemen wouldn't be here today? 249 00:21:23.050 --> 00:21:28.830 That the chief executive can no longer completely delegate the responsibility 250 00:21:28.830 --> 00:21:33.610 For the whole marketing problem to his marketing experts 251 00:21:33.610 --> 00:21:38.610 but isn't there another facet to it also Marvin our 252 00:21:39.590 --> 00:21:41.850 laboratories and our business schools have 253 00:21:42.710 --> 00:21:46.050 yet to produce the product called instant knowledge and 254 00:21:47.610 --> 00:21:50.730 There has got to be some mature experience 255 00:21:51.450 --> 00:21:53.450 Somewhere in this organization I 256 00:21:55.930 --> 00:22:03.930 see the young Tigers as we call them coming out of the business schools filled with the 257 00:22:03.930 --> 00:22:05.650 marketing case studies 258 00:22:05.650 --> 00:22:11.630 Dashing into the problems and making exactly the same mistakes that I made 20 years ago 259 00:22:11.630 --> 00:22:19.070 Arbor herb I think probably would also be true that the young chemists charge into the laboratory and make the same mistakes that the chemist made 260 00:22:19.070 --> 00:22:22.630 20 years ago, too. It seems to me the top management function 261 00:22:23.150 --> 00:22:28.550 Is quite clearly to see that managing rather marketing is staffed with people 262 00:22:29.390 --> 00:22:31.750 with the background the aptitude and 263 00:22:32.590 --> 00:22:40.710 The desire for marketing and just exactly the same sense that it's their responsibility to see that the laboratory is properly staffed with chemists physicists and 264 00:22:41.830 --> 00:22:45.910 Nuclear scientists if they happen to be in that particular area 265 00:22:45.910 --> 00:22:47.670 Yes, sir 266 00:22:47.670 --> 00:22:53.750 Bob Gordon with Time magazine. Mr. Mayor made a statement at lunch and sort of depreciating that 267 00:22:54.410 --> 00:22:58.850 Stereo FM manufacturers for jumping into what seems like a marketing opportunity 268 00:22:59.670 --> 00:23:06.050 It seems to me the timing is a terribly important factor in getting into a market and marketing a new product successfully 269 00:23:06.050 --> 00:23:13.230 Now my question is I'd like to hear some comments possibly from mr. Cleaves on what industry is doing to more scientifically 270 00:23:14.340 --> 00:23:22.900 And more quickly identify consumer taste trends and capitalize on we try in various ways to identify such trends 271 00:23:23.700 --> 00:23:26.180 I'll give you an example. It will probably 272 00:23:27.200 --> 00:23:28.040 illustrate 273 00:23:28.040 --> 00:23:30.540 Most easily the answer your question 274 00:23:32.160 --> 00:23:40.300 Our consumer service people girls from the kitchens of home economists are constantly out in the field talking 275 00:23:40.860 --> 00:23:42.420 with women 276 00:23:43.480 --> 00:23:50.580 Women's clubs church groups, etc. May report back to the marketing people the trends that they found 277 00:23:51.420 --> 00:23:53.340 now a few years ago 278 00:23:53.900 --> 00:23:59.100 Three or four years ago and one of our marketing meetings ahead of this department 279 00:24:00.020 --> 00:24:05.420 Said that there was a growing trend if you can believe it to the less convenient 280 00:24:05.420 --> 00:24:12.160 Products that and then she went on to identify it that the woman wanted to associate herself with 281 00:24:13.340 --> 00:24:19.820 Doing something herself. She didn't want everything done for she wanted a little pride of authorship 282 00:24:21.720 --> 00:24:28.060 We pretty much ignored it, but I noticed today that out in the supermarkets 283 00:24:28.060 --> 00:24:33.820 You'll find big displays of plastic rolling pins. You'll find 284 00:24:34.480 --> 00:24:38.060 Cake pans and all kinds of biscuit pans 285 00:24:38.660 --> 00:24:40.740 big displays of them in their 286 00:24:41.840 --> 00:24:43.460 Non food sections 287 00:24:44.620 --> 00:24:46.820 There is a definite 288 00:24:46.820 --> 00:24:51.120 trend on the part of a small segment towards the 289 00:24:52.100 --> 00:24:57.980 Do it from scratch idea rather than is the cake mix served up as a cake? 290 00:24:59.080 --> 00:25:03.340 May I make one comment on that particular kind of consumer research now? 291 00:25:03.340 --> 00:25:05.640 I don't know for a fact either way on it 292 00:25:05.640 --> 00:25:09.620 But I have a hunch that when a woman says that she wants to put her own egg into the cake mix 293 00:25:09.620 --> 00:25:13.860 This does not mean that she feels that she's a bad mother and guilty and all of that 294 00:25:13.860 --> 00:25:18.900 Because she isn't making her own cakes. It may mean that she doesn't think the cake mix is very good and it needs an egg 295 00:25:20.360 --> 00:25:20.880 that 296 00:25:20.880 --> 00:25:28.420 There is a good deal of product criticism involved in this sort of we don't want the kind of the 297 00:25:28.420 --> 00:25:34.840 convenience factors anymore and that you can draw either conclusion from the evidence a 298 00:25:34.840 --> 00:25:41.480 Physiologist or psychologist invariably draws the conclusion that we've got something deep-seated and highly emotional here 299 00:25:41.480 --> 00:25:44.140 my own tendency is to believe that 300 00:25:44.140 --> 00:25:48.840 this represents a feeling which may have this kind of 301 00:25:49.740 --> 00:25:50.940 Psychological root 302 00:25:50.940 --> 00:25:57.100 At its at its base it may not it it may not be an objectively true situation 303 00:25:57.100 --> 00:26:03.200 But it represents a feeling that the product isn't as good as mother used to make it and it isn't as good as I used to 304 00:26:03.200 --> 00:26:07.400 Make it when I had my own ingredients around it isn't this it isn't 305 00:26:08.180 --> 00:26:13.380 necessarily as certainly ab initio the kind of profound matter that your 306 00:26:13.380 --> 00:26:19.740 Research people sometimes make it appear to be I think I'd agree with you and and again as I said it 307 00:26:19.740 --> 00:26:23.080 It's a very small segment of the market still 308 00:26:23.780 --> 00:26:28.840 And from an operator's point of view, I'll tell them that those the cake pans are not selling 309 00:26:35.840 --> 00:26:39.400 I think I think we've probably come to the point where we should 310 00:26:41.800 --> 00:26:48.000 Should disperse I would like to just say two things one I 311 00:26:48.000 --> 00:26:52.060 agree with everything and everybody said I 312 00:26:52.060 --> 00:26:58.080 Also agree with something that some things that haven't been said and I I think it's worthwhile 313 00:26:59.680 --> 00:27:00.920 taking this 314 00:27:00.920 --> 00:27:01.480 thought 315 00:27:01.480 --> 00:27:03.340 Away with you 316 00:27:04.360 --> 00:27:07.400 We need to be aware of the important 317 00:27:08.000 --> 00:27:14.900 Function we perform marketing man and a marketing training and marketing position. It's a kind of an approach 318 00:27:14.900 --> 00:27:17.540 to the problems of business 319 00:27:17.540 --> 00:27:24.400 Which is the creative approach in which does say we're not going to take the world just as it is 320 00:27:24.400 --> 00:27:26.240 We're going to do something about it 321 00:27:26.300 --> 00:27:30.340 We're going to do something about it so in the end we are entitled to a profit 322 00:27:30.340 --> 00:27:34.280 But we're also doing something about it and as we do something about it 323 00:27:34.280 --> 00:27:40.880 We actually we actually do succeed in in changing the world and making it a better world for everybody 324 00:27:41.820 --> 00:27:45.040 Thank you panel and thank you all for coming 325 00:27:45.040 --> 00:27:51.660 It's I hope you've enjoyed it as a much as much as I know all of us have up here and thanks to and 326 00:27:51.660 --> 00:27:53.940 Thanks to container for making it possible 327 00:27:58.880 --> 00:28:15.040 Quite a bit thank you 328 00:28:15.040 --> 00:28:15.040 329 00:28:24.280 --> 00:28:25.680 well 330 00:28:25.680 --> 00:28:25.680 331 00:28:25.680 --> 00:28:25.680