Touch Points of Marketing (Team Carlos)

The main message of this report is to show the process of the consumer decision-making process and the steps it takes people to actually buy a product. One of the ways McKinsey talks about this process is through a “funnel” metaphor, in which “a consumer starts with a number of potential brands in mind (the wide end of the tunnel), marketing is then directed at them as they methodically reduce that number and move through the tunnel” (McKinsey 1). He says however though, the funnel metaphor is basically out of date and that marketers need to go about reaching consumers in a different way.

One approach proposed by McKinsey is the consumer decision journey. Since there has been a shift away from one-way communication, he needed to find a better way to meet consumer needs and control word-of-mouth. He says that instead of the process being a funnel, it is actually more of a circular pattern. This includes four steps of initial consideration, active evaluation, when the consumer buys the product, and postpurchase.

Another approach would be that consumers outreach to marketers has become more important that marketers outreach to consumers. Often times the marketer would try to push the product at certain stages of the decision making process but most times they didn’t catch the consumer at the right times of the process. Instead of having products pushed at them, consumers are now pulling information that is going to help them decide. It said that “two-thirds of the touch points during the active-evaluation phase involve consumer driven marketing activities, such as Internet reviews and word of mouth” (McKinsey 5).

The next approach would be to win the in store battle. His research found that the consumers hold off on the final purchase decision until they are in the store. They do this because they want to interact with the product they are about to buy before they purchase it. He states that in store touch points, which include packaging, shelf positioning, fixtures, and informative signs, provides an opportunity for brands.

McKinsey report talks about two different types of loyalty. There is the active loyalist, which have strong brand loyalty and also recommend the product to others. The other type is a passive loyalist, which stays with a brand but are not necessary committed to just that brand and are would be willing to change at any moment. Therefor marketers should gear more towards marketing to the active loyalist by focusing on new touch points.

I would have to say that one of the main suggestions of the report is to focus on the touch points of the consumers. Knowing when, how, and who to market the product. It’s not all about the one-way conversation anymore. Marketers need to be more interactive with their consumers than they are and build more active loyalist than passive. It is all about being at the right place at the right time.

Brown Bunch Post #3

              The McKinsey Quartely’s report The Consumer Decision Journey main message advocates the necessity of a company’s presence throughout the consumer decision process. The importance of a company’s presence from the consideration stage to the post purchase stage is vital in keeping in touch with the target market. It establishes how companies need to be more in tune with their consumers’ lives. This entails new ways of marketing to be able to satisfy target markets. Consumers are taking control of the consumer decision journey. The consumer is now “pulling” information voluntarily rather than it needing to be “pushed” on them by the marketer. All of this concluding that the consumer decision process is no longer linear but circular. Meaning that consumers are being influenced from all around them, both marketers, their peers, and other consumers are an influence in their buying decisions.

            As stated in the McKinsey report the consumer decision journey is no longer linear but circular. This modification calls for many changes in the way marketers strategize to reach their target market. McKinsey implies that no longer are consumers partaking in the awareness stage. It is now a trigger or impulse that begins the consumer decision journey. The trigger is not related to the awareness a consumer use to be faced with but with an event. These triggers are referred to as touch points in which the consumer begins to consider brands because of their recent exposure to them. That is where the second stage begins which is active evaluation before referred to as the consideration stage. This is when customers do their research on products, find out what other have to say whether it is from family & friends; website reviews; or other word of mouth. No longer is a brand in the safe zone if they make it past the consideration stage. Consumers are still identifying specific products in the consideration stage but they are more lenient and willing to consider other brands as they arise throughout the decision making process. This allowing for brands that were never initially in the consideration stage to come in and undertake the other products.With the consumer decision making process being circular consumer information inputs are coming from every direct. Information is virtually available anywhere and it can trigger a purchase or discourage it. Consumers are taking control of the information and doing and doing their own research instead of marketers pushing information on them. The consumers is using a “pull” gathering system versus the traditional “push” that the marketer was responsible for. It is important that marketers are able to participate in this information gathering because consumers want a two-way conversation. Not only that but they will also be able to build online word of mouth through consumer driven touch points.

The consumer decision journey is a continuous process because of the loyalty loop. The loyalty loop occurs after the consumer has made a decision. It involves the consumers post purchase experience and what the marketer does to shapes the opinion of the consumer. From this two types of loyalties are created passive and active. The goal in the loyalty loop is to create active loyalists that emit positive buzz and recommend that brand to their friends and family. continue to advocate for you brand. In the end creating strong brand advocates who stay loyal to that specific brand. The passive loyalists are what companies do not really want. These consumers are half-heartedly committed to brand and can easily be persuaded to purchase another brand. They keep an open mind to competitor messages to see what more can they offer them to make the decision of switching. McKinsey points out that having a group of active loyalists is something that marketers need to strongly do because they can create this positive word of mouth.

            The consumer decision journey is not something new but there are changes that marketers need to be able to understand and address. It is important they be able to do so effectively there are four activities that McKinsey recommends for marketers. The first is to prioritize objectives and spending. Before marketers put focus on a certain area, there now needs to be a shift from the overall brand positioning to make consumers act. Companies need to be a part of all of the consumer decision journey and not only in certain touch points. Marketers need to also tailor the message they want to address their audience with. It no longer needs to be a weak general message but a message that pinpoints every area of the message they want spread. An investment also needs to be made in a consumer driven marketing strategy. A companies needs to be successful in getting their consumers to become advocates for their products. A way to do so is to use vehicles such as the internet to generate online word of mouth. This is an important way to communicate to consumers especially in the active-evaluation stage where consumers want information about products to be able to make a decision. The last activity that McKinsey talks about is to be able to win the in-store battle. Presentation is the key to doing so. Everything from packaging, shelf-position, powerful displays, and leading signage can lead to the encouragement or discouragement of a purchase. If marketers can synchronize what customers are looking for in an in-store purchase experience they can guarantee a purchase.

McKinsey Report Overview

The article focuses on the journey of the consumer as they move through the decision making process and how marketers should change their strategies to keep up with changing times and consumer attitudes. It states that the outdated funnel analogy has changed to a more of a circular journey. It goes on to say that marketers have to be more aggressive and learn how to influence their consumers during each stage of the consumer decision journey.

McKinsey writes, “Faced with a plethora of choices and communications, consumers tend to fall back on the limited set of brands that have made it through the wilderness of messages.” It is difficult for products to make it through that “wilderness of messages” and be easily recognized. Being recognized means making it into the initial-consideration set, and according to the article, a product is almost three times more likely to ultimately be purchased than a product that is not in it. In order to stand out more to consumers, companies need not to “push” to consumers as much, but rather to allow and help consumers “pull” the information that will influence them to buy the company’s products. McKinsey’s research shows that “two-thirds of the touch points during the active evaluation phase involve consumer-driven marketing activities”. The article says that by creating a positive post-purchase experience, you gain more loyal customers who will spread positive word of mouth about your company and more than likely be return customers.

McKinsey describes two types of loyalty in the article, active loyalty and passive loyalty. Active loyalists “not only stick with it [the brand] but also recommend it”. Passive loyalists “stay with a brand without being committed to it”. Passive loyalists can be persuaded to change brands, if they’re given a good reason by competitors. What this does is it presents an opportunity to marketers to take competitors passively loyal customers and it also challenges them to find ways to make their own loyalists actively loyal.

The report suggests several things to marketers if they want to keep up with the changes in the decision making processes of their consumers. Marketers must gain a thorough understanding of the new consumer making process. They then need to use that knowledge to reach consumers at every stage of the decision making process by influencing consumer-driven marketing, improving the in-store experience and product packaging, creating programs to gain active loyalists, and connecting all “customer-faced” areas of the company so they can work together under one manager who can be considered the “voice of the consumer”.

Quoted McKinsey Quarterly; The consumer decision journey