Escaping 'newspaper think' and the role of marketing in the modern world

The following questions were formulated from a marketing presentation made earlier this year to an API seminar group by Richard P. Honack, assistant dean at the Kellogg School of Management of Northwestern University.

Why is an industry, which is so good at covering our ever-changing world, so slow to adapt change in its practices. Put another way, why does "newspaper think" still exist?

"Newspaper think" exists because of traditions that created silos by, if you will, "trades," which to this day in many cities are even still represented by respective "trade" unions. These departmental silos had to fight for turf in the early 20th century, and the walls at most newspapers never came down, even where unions went away. Also, newspapers became inwardly focused and not customer focused, basically telling the customer what he or she needed to read, purchase or do.

These traditions have stuck until present day. There is little cross-pollination between the traditional departments or even knowledge about how other departments operate. Where newspapers have changed this traditional culture, they operate much differently, and usually successfully. But these newspapers are few and far between. Rare is the newspaper that lets circulation, advertising, operations or marketing sit on story meetings or where editors and reporters know how the pressroom operates to get the paper out on time.

How big a role should marketing play within an organization?

Marketing should be at the center of the organization wheel ? the hub. It should be the conduit between the customer and the organization. If an organization is marketing driven, everyone who works for or with that company becomes a marketer for the company. This is what makes Starbucks, Federal Express, UPS, Yahoo! and Microsoft such outstanding consumer brands around the world. They're all marketing driven with everyone on the same page for product or customer service commitments. In the not-too-long-ago past, marketing departments did marketing. Now everyone is responsible ? formally or informally ? for marketing the brand.

What is "permission marketing" and what does it require to be performed effectively?

"Permission marketing" is asking customers what type of marketing or advertising they would like to receive from a company or service, usually over the Internet. Some newspapers, like The New York Times, Chicago Tribune or Wall Street Journal, ask their Web site users, for example, what news they would like to be alerted to during the day. Then they e-mail them breaking news bulletins or regular updates for stock market reports at given times in a day. These are selected from a menu of options that the customer picks and says: "You have my permission to send this information to me."

It is a marketing tool used my numerous service organizations, including airlines, financial services, movies, etc. For example, this form of marketing is used extensively by Amazon.com alerting its customers about new product offerings. It customizes the customers' lives. It differs from traditional marketing, which is considered "interruption marketing." The term "permission marketing" was coined by Seth Godin, former CEO of Yoyodyne Inc., which is now part of Yahoo!

How have "empowered customers" ? customers who can dictate the terms of purchase by eliminating the middle person ? changed the landscape of marketing?

"Empowered customers" are looking for products and services they can value or trust both with their hearts and their minds. They have more information than ever before when it comes to purchasing products or services. Marketers have to get more information to these customers through whatever media are required to deliver the message. Empowered customers tend to be more value driven ? meaning quality and price ? than just price-sensitive. Customer value usually is determined by brand, function or price, or any combination thereof. Often these customers will pay the higher price just for the brand or the convenience of delivery.

Throughout your presentations, you like to feature quotes from people who succeeded despite being told they couldn't. What is the worst advice you've ever received?

A vice president of marketing once told me: "Don't buck the system." People who don't question "the system" end up in Dilbert cartoons ? and they know who they are.