Knowledge is power

According to Kotler, the requirements of many customers have changed as a result of the financial crisis. Former knowledge about customers is no longer valid; customers and their needs have to be re-examined.

"YOU CANNOT NOT COMMUNICATE"

In these times where social media prevail, everything a company says must be true and clear. Many service providers ignore this aspect—and will get stung. For example, the US website airlinemeals.net, replete with thousands of evaluations and photos of in-flight food, has already repudiated a fair number of advertising promises.

"BUILDING MEANINGFUL RELATIONSHIPS"

Based in France, Targobank demonstrates that the crisis can be a learning experience. Its bank consultants are subject to pay cuts if they give customers investment recommendations outside of a risk category previously set by the customer. So how does marketing even remain responsive during times of never-ending turbulence? According to Kotler, having one "script" for bull markets and one for bear markets is no longer sufficient. "Companies often get into trouble if they don't have an early-warning system in place. They see the warning signs but don't counter them." How does one set up an early-warning system?

In Chaotics, Kotler mentions two suitable methods: scenario planning and flexible budgeting. In other words, smart marketing managers create the ability to expect the unexpected. And they have flexible response systems. Take Regal Entertainment, for example, which is the biggest movie theater chain in the US. It continually monitors attendance figures for individual movies—should the figures decline, it immediately stops showing the movie in question. Their reasoning is that an outdated offer will not draw anyone in and will show that a company does not know its customers—and that could result in losing their trust.