TAE-BO? - Bow - Tie

Chapter 7: Industry Archetypes and Best Practices

Channel, Brand, Sales, and Service Management

The way of the future. Here we are presented with the various industry archetypes or patterns that the 5A's curiosity, commitment and affinity levels. Each model is presented with various challenges. The four patterns are listed below

Pattern 1: Door Knob

This is the most common one. It involves high commitment with low curiosity. People tend to act on impulse. If its the only product customers would tend to get this one.

Brand switching is very common as they do not have a firm decision on the current product. This is when you have many competitors to your brand such as Coke.

Quite common in the consumer packaged goods industry. This is quite similar for our food industry.

Pattern 2: Goldfish

Here we are faced with a situation where ask > appeal. Very curious folks in this pattern. Typical situation are for the B2B contexts. There is a need for customer intimacy in coming up with a decision.

To me the travel industry or banking industry fits this type of pattern. Expect many questions to be formed with this pattern.

Pattern 3: Trumpet

This pattern is unique for me personally. This is a personal as you can get as the customer's affinity to the product is very high. (advocate > act) For example the big luxury brands or branded medicine comes into play. Customers are familiar with the reputation of this product despite not being a regular user of this product.

For the luxury goods, a lot of people cannot afford it but they aspire to have it. For the medicines, this is something they have gathered through actual use or word of mouth,

They are hard to sway as they already have a brand in mind.

Pattern 4: Funnel

This pattern is more ideal as customers are highly involved in the purchase decisions. The overall customer experience plays a major role as customers will not skip any stage as this is part of their actual experience.

This pattern however is prone to disruptive innovations as customers demand for both incremental improvements and customer innovations. This is more notable as purchase risks tend to be higher with this pattern.

If we try to remove the shortcomings of the four major patterns, Kotler said there is a need to combine all the positive strengths of the patterns. He explained that having a BAR of 1 is still the most ideal pattern. This leads to the ideal customer. This is called the Bow Tie pattern.

If you analyze the customer path, Aware = Advocate thus forming a perfect mirror image. This to the Kotler is the most ideal customer pattern. How does one fix each pattern to match it to that of the Bow tie? The diagram below shows what needs to be improved per archetype.

Kotler further explains that groups tend to move from one group to another. Technology has played a major role on how each industry shift from one range to another.

We must understand the best marketing practices and which is more applicable to our company as they can keep on switching depending on the situation.

• Brand Management - Developing sound positioning and executing it through marketing communications

• Channel Management Channel - Developing omni-channel pressence and driving customer to buy

• Sales Management - Managing service processes and service people as well as physical evidence

• Service Management - Managing productive sales people and driving the right sales force

REFLECTION QUESTIONS:

Which archetype best describes your industry?

I would have to say for my company it has to be on the door knob range. We only control less than 40% of the market but people still have that colonial mentality that imported is better which is not the case. Our industry is pretty much spread out quite thinly as this is a pricing game. However, for our high end customers, they are in the funnel stage as they are quite familiar with the technology that we can provide to their vehicle. We still need to educate the masses

What are some of the key improvements opportunities for your business based on that archetype?

Advocacy needs to be increased and that means affinity needs to be improved. Customers should not just load at our station out of convenience but because of quality.

What is the key success factor in your industry? How can you learn from other industries

We can start to focus on our localized marketing programs as this is how the 4th player is slowly creeping up to be the 3rd largest player. Our company still boasts of its logistics network but we should monitor how are customers are treating our product. Currently, brand management is one of the key success factors as well. Our brand has been in the Philippines for more than 80 years.