Marketing Science

Philip Delves Broughton: What they teach you at Harvard?

Editor’s Note: Philip Delves Broughton is the author of The Art of the Sale, published in the UK as Life’s a Pitch, and Ahead of the Curve: Two Years at Harvard Business School, published outside the US as What They Teach You at Harvard Business School. His first book, Ahead of the Curve: Two Years at Harvard Business School was a New York Times bestseller and a Financial Times and USA Today business book of the year.

He spent ten years as a reporter and foreign correspondent with The Daily Telegraph newspaper, serving as its New York and Paris bureau chief. He then left journalism to obtain his MBA at Harvard Business School. He has since worked as a writer at Apple Inc. and the Kauffman Foundation for Entrepreneurship and Education and as a contributing columnist at The Financial Times. His writing has appeared in the Wall Street Journal, The Financial Times and The Atlantic.

eTalk’s Niaz Uddin has interviewed Philip Delves Broughton recently to gain insights about The Art of the Sale, The Greatest Salespeople in the World, The Soul of the Salesman, What They Teach You at Harvard and The Point of a Business Education which is given below.

Niaz: Dear Philip, thank you so much for managing time to join us amidst your busy schedule. We are honored to have you at eTalks.

Philip: My pleasure.

Niaz: You are the New York Times best selling author, blogger, business philosopher, speaker and an inspiring mind. Your books ‘The Art of the Sale‘ and ‘What they teach you at Harvard Business School‘ are truly instrumental for self-help, self-growth and for the success in 21st century. At the very beginning of our interview can you please tell us more about you, your work and your current involvements?

Philip: I grew up in England, was a newspaper journalist and foreign correspondent for the first ten years of my career, then decided to go to business school at Harvard. Since then, I’ve written and published three books, the memoir of going to HBS, The Art of the Sale, and a book called Management Matters, which is basically a collection of the pieces on management I’ve written for the Financial Times. I write regularly for the FT, the Wall Street Journal and am affiliated with the Kauffman Foundation for Entrepreneurship and Education, a wonderful institution based in Kansas City which funds a wide array of programs designed to stimulate entrepreneurship.

Niaz: Why are you very passionate about ‘Sale’? Can you please tell us what exactly is Sale?

Philip: Sales is very simply the process of turning a product or service into revenue. I’m fascinated by it, because as one great salesman told me, it’s the greatest laboratory there is for understanding human behavior. In sales, we see business at its most raw. We see the truth, lies, greed, decency, ambition and value of any business and business person exposed at the moment of the sale.

Niaz: As you know social media revolution, cutting edge technology, disruptive innovation, widespread uses of smartphone and a whole new digital world have been changing everything. This trend is bringing revolutionary change in the way we do business. Living in such an exciting era, what’s new about sale now in comparison to sale 15-20 years back?

Philip: There’s evidently much more transparency. It’s much harder to deceive customers in a world where so much information about products and pricing is available at a keystroke. Reputation has become far more important as it can so easily be damaged in a world of viral reviews. Transactions have also changed. We can buy and sell in so many different ways these days. Social networks have certainly made prospecting for customers and checking on people’s reputation easier. But I still believe real, lasting relationships require in-person contact over time. Technology hasn’t changed that.

Niaz: Can you please tell us about the art and science of selling?

Philip: The science is in creating value around your product and service and then finding ways to convey that value to the right customers. It’s about mapping your product and sales process to their needs and schedules, not your own. The art is in having a supple, imaginative grasp of human behavior. It’s about finding the right balance between science and intuition, because it’s still the case that humans make decisions, and technology, though vastly improved, is still far from being a complete substitute for human intelligence in sales.

Niaz: You have cited, ‘Without a sale, there is no business’. We have seen, most companies fail only because they can’t make enough sale even though some of them are using state of the art technologies, are embracing science and disruptive innovation and despite they have great products. Sometimes customers don’t want the products and most of the time they fail to make sale. As a result the success rate is very little and almost 90% Start Ups fail. Why art and science of selling remain necessary to succeed in most of the human business disciplines? Why is sale the core part of any business?

Philip: Sales is often the last thing many people like to do, because it’s the final judgment on their product or service. It’s a moment of truth. At the moment you sell, you’re risking rejection, which can be painful. Smart, highly educated people in particular aren’t used to rejection, and so try to minimize the risk of it. Sales isn’t forgiving. But if you don’t sell and earn a profit, you’re pursuing a hobby not a business. I often hear people try to make a virtue of their reluctance to sell. They say they’re not aggressive or bullying enough. Or that they don’t like asking people for money. But really, all they are is bad at sales. If you can’t sell yourself, or hire or partner with someone who can, you have no business being in business. It’s not a very complicated concept. The flip side is that people who do push through the rejections and difficulties which precede almost any sale, find their eventual success a great rush which they want to repeat as often as possible. Those people tend to be the ones who succeed in business.

Niaz: Do you think sale is the advanced human game? What are your suggestions on mastering this advanced game?

Philip: I’m not sure how advanced it is, but it can certainly be viewed as a game between consenting adults. There’s an old Quaker tradesman’s saying I cite in the book ‘I shall not cheat thee, but I shall outwit thee.’ I think this is a useful moral code for any salesperson. Ideally, your product, service and price perfectly match a customer’s need and willingness to pay and the sale is easy. But most of the time you’ll need to do some modifying, persuading and course correcting to close a deal. If you lie, you’ll likely end up being exposed. But you can certainly out-think and out-strategize to win, while balancing the short and long-term consequences of your actions. People have very different comfort levels about what they’re willing to do to sell. But good salespeople, however they choose to do it, have thought the compromises and risks and have set firm boundaries on their behavior.

Niaz: What do you think about the salesmanship of Steve Jobs? How has he become one of the greatest salespeople in the world? What are the characteristics, views, ideas, skills and insights of Salesmanship of Steve Jobs that fascinate you?

Philip: Jobs was indistinguishable from his products. He never ceded the role of Apple’s chief salesman to anyone else. That’s a very powerful model and the way he did it inspired enormous belief in his company and products. He used the language of religious evangelism, such as “transformation” and “magic”. He also made brilliant use of persuasive techniques such as “social proof”. All those glass windows in Apple stores allow passers by to see people like themselves using Apple products. The “I’m a Mac, I’m a PC” ads similarly made the case that buying Apple products wasn’t just above buying software or hardware. It cut to the very heart of your social identity. It’s rather creepy, actually, but Jobs was brilliant at it. It’s easy to forget what a marginal company Apple was in 1997, when Jobs returned as CEO. His salesmanship helped turn the company around internally by restoring belief among employees, and then got customers to try the products at at time when Wintel was still dominant.

Niaz: Were there some universal qualities you found in great sales people?

Philip: An optimistic frame of mind, enthusiasm, self-discipline, the ability to tell a story and to be energized rather than crushed by rejection. They are terrific listeners, but also ruthless closers. They also tend to be very good company, which made writing about them such fun.

Niaz: Despite the new opportunities in social media, marketing and measurement, selling still frequently comes down to two people looking each other in the eye and deciding how to sell and whether to buy. Business continues to need great salespeople along with all the creativity, tenacity and optimism they bring. Great salespeople come in very different packages. Some are the best at high volume transactional selling and others thrive at building long-term relationships. At this point can you please tell us about the great skills of 21st century salespeople?

Philip: They’re the same as they’ve always been. You need to keep abreast of the prospecting and pitching tools, such as LinkedIn and Salesforce, but ultimately the edge still belongs to those able to build trust, inspire repeat customers and develop healthy books of business. Maybe there’ll be fewer steak and cigar dinners in the 21st century, but you still have to find ways to develop meaningful relationships and that doesn’t happen virtually. Personal networks and interpersonal skills will count as much as ever.

Niaz: What happens when the business and non-business worlds no longer understand each other?

Philip: Revolution.

Niaz: You have had said ‘The cleverest invention or product will disappear — creating no income, no employment — unless someone can sell it.’ Is sale resided in the core of capitalism? How does sales drive economy?

Philip: If all an economy consisted of was things we needed simply to survive, it would look very primitive. No one needs a BMW or a Jamba Juice, or a Macbook or a work of art. But such things make life more appealing. Profit incentives are also essential to the creation of more important things such as new medical treatments or healthier cities. It’s by selling each other new, interesting and life-enhancing, rather than just life-sustaining, that economies grow. Sales leads to revenue leads to profit leads to investment leads to growth.

Niaz: Do you think by creating better understanding of selling, and the many challenges it involves, we can build better world? How can that become possible if I want you to discuss from removing poverty to solving international fights, solving environment problems to stop international war?

Philip: This a long way above my pay grade! All that counts here is that we continue to search for the healthiest balance between market forces and social justice. It’s a constant adjustment for all of us. As individuals, we struggle with our material, emotional and spiritual desires. Companies must balance shareholder with employee interests. Governments seek a way to grow national economies while protecting the weakest in their societies. Sales matters in all this because, as I said, it cuts right to the heart of these discussions. How we choose to sell says everything about how we’re balancing the good and bad in our selves.

Niaz: In 2004, you gave up a career in journalism to attend Harvard Business School. Three years later, you published the New York Times bestseller ‘Ahead of the Curve: Two Years at Harvard Business School’, in which you described and questioned the value of a business education. You have cited ‘Most top business schools don’t teach selling’. And you believe ‘Selling should be the first thing to teach, as everything in business flows from the sale’. Can you please tell us about the point of a business education? What’s going wrong with our business education?

Philip: A business education should enable someone to pursue their interests in a way that makes good financial sense. A lot of MBA programs charge a lot of money while under-delivering on this basic purpose. I also think the top business programs need to do a better job educating students on the social purpose of business. Better basics, more humility and lower fees would go a long way to fixing this.

Niaz: Still folks from different countries, states and cities across the world hope that teaching business and entrepreneurship will lead to initiate more start-ups and better businesses. Is their hope justified?

Philip: Education is always a good thing. But I think the teaching of business and entrepreneurship can be pretty crude and ineffective and there’s a lot of work to do in improving it. Also, it’s not just about educating individual entrepreneurs. The social and political context also has to favor them.

Niaz: Can you please tell us about the aspects of business which can and cannot be taught, those which must be taught better, and those are not worth teaching at all?

Philip: Sales, evidently, should be more a part of MBA curricula. I’m intrigued by new just-in-time business education programs, which deliver teaching at the moment a businessperson needs it. That seems to make a lot of sense. The issue here isn’t what should or should not be taught at a high level. It’s about delivering value to the person who needs it. Business isn’t law or medicine, with a body of knowledge which has to be learned before you can practice. It’s much more fluid than that, and business education needs to reflect this fact.

Niaz: How educators and policy-makers should teach business as a means to improving the rate and quality of economic growth?

Philip: Focus on developing communities of businesspeople. Help facilitate connections. Listen to what these people ask for. Then get out of the way.

Niaz: What are you doing now at The Kauffman Foundation for Entrepreneurship and Education?

Philip: Writing about entrepreneurship programs, what works, what doesn’t.

Niaz: Thanks a lot for joining and sharing us your great ideas, insights and knowledge. We are wishing you good luck for all of your upcoming great endeavors. Happy New Year Philip.

Philip: Thanks Niaz.

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Further Reading:

01. Philip Kotler on Marketing for Better World

02. Hugh Mac­Leod on Creativity and Art

03. Daniel Pink on To Sell is Human

04. Naeem Zafar on Entrepreneurship for the Better World

05. Derek Sivers on  Entrepreneurship, CD Baby and Wood Egg

06. Jeff Haden on Pursuing Excellence

07. Rita McGrath on Strategy in Volatile and Uncertain Environments

08. Gautam Mukunda on Leadership

09. Gerd Leonhard on Big Data and the Future of Media, Marketing and Technology

Naeem Zafar: Entrepreneurship for the Better World

Editor’s Note: Naeem Zafar is the president and CEO of Bitzer Mobile, a company that simplifies enterprise mobility. On November 15, 2013 Oracle announced it has acquired Bitzer Mobile. As a member of the faculty of the Haas Business School at the University of California Berkeley, he teaches Entrepreneurship and Innovation in the MBA program. He is the founder of Startup-Advisor, which focuses on educating and advising entrepreneurs on all aspects of starting and running a company. His entrepreneurial experience includes working directly with six startups, and he has extensive experience in mentoring and coaching founders and CEOs.

Mr. Zafar holds a Bachelor of Science degree in electrical engineering from Brown University (magna cum laude), Rhode Island, and a master’s degree in electrical engineering from the University of Minnesota. He is a charter member of TiE .He is also a charter member of OPEN where he serves as the Board member.

You can read his full bio from here, here and here.

eTalk’s Niaz Uddin has interviewed Naeem Zafar recently to gain his ideas and insights about StartUp, social business and entrepreneurship for better world which is given below.

Q: You’re a successful entrepreneur. As a member of faculty of the Haas Business School at UC Berkeley, you teach entrepreneurship and innovation in the MBA program. At the beginning of our interview can you please tell us what exactly is entrepreneurship?

A: Entrepreneurship is a state of mind. It is a way to look at a situation and see how could you make a profitable venture out of it. It is very innate. People, educated or not in urban or rural setting, are just as likely to spot an opportunity and drive it to commercialization.  The likelihood is there just as it is for a Silicon Valley hotshot startup guy. So it transcends all boundaries of education, race and gender. It is a state of mind.

Q: You believe that entrepreneurship can be a powerful tool to alleviate poverty and extremism of the world and social businesses can fill the gap where public institutions often fall short. Can you please tell us more about that?

A: If you think about the definition of a business….its objective is to maximize shareholder return. So the shareholder who invests in the company has an expectation that the management should do whatever it can to maximize return; that is perfectly fine. We have seen tremendous companies and innovation come out of that model. But if there were a concept of setting up a company with the sole purpose of not  maximizing shareholders return but to address its social ill….. that can work for alleviating poverty.

It can be something as simple as the city doing lousy job of collecting garbage. Let’s say the garbage is not being collected on time which is very unpleasant as we know. We can set up a company so that there speedy pick up and disposal of garbage. The purpose of that company is to address this social ill. It is not to maximize shareholder profit. Imagine setting up the company with that objective and shareholders putting in money. This company’s objective is for this social ill to be addressed and not to maximize profit. Now, it is still a for profit company. It still pays market wages and hires the best people to address the issue but it is not trying to maximize profit.

This model which can be very rewarding for the shareholders as it is a new way of looking at solving many of the problems which governments are not well suited to solve. That’s called social business. I think the concept is a powerful one. It’s put forward by the Nobel laureate, Muhammad Yunus, in his 3rd book and I think it is a tremendous way for communities to organize and address issues which plagued them without having to wait for government to show up.

Q: How do you connect these three dots: social entrepreneurship, alleviating poverty and making a better world?

A: If you look at my previous answer I just connected the three dots for you.  Making a better world is about alleviating poverty and giving people a chance to participate in economic growth and well-being. Social businesses and entrepreneurship is a way for them to have that opportunity.

In the country that I grew up in you look for government to give you a good job. However, the government is not well equipped to provide a job for everybody. On the other hand, the private sector is well positioned. As we have seen in US, the private sector produced even submarines, bombs and fighter jets. This was quite shocking to me when I came to this country.

The government’s job is not to produce goods. Its job is to set policies and systems so that companies and entrepreneurs can thrive.

Q: How did you find the idea for Bitzer Mobile? Can you please briefly tell us about Bitzer Mobile?

A: Bitzer Mobile’s technical founder, Ali Ahmed, was working as a software architect for large companies in insurance and oil verticals for many years. He continued to recognize that people were struggling to allow employees mobile access to data.

Ali was having to solve the problem for every company in a unique way. So the idea was, why not come up with the way so that the employees can easily and securely access corporate data and be productive from wherever they happen to be. And that gave birth to Bitzer.

Q: As far as I believe for changing the world, we need to find complex, interesting  and  big problems of the world and then have to build great organizations that will sustain in the long run to keep solving those problems as well as to keep contributing for the betterment of the mother earth. Can you please tell us how can we find interesting, complex and big problems of this world?

A: First of all, I don’t agree with your definition. It is not about solving big problems. It is about solving problems. Problems of all sizes. Sometimes all you have to do is look around you. There are problems in your community, where you live, where you work. Solve those problems. Big ideas come from people trying to solve small problems which turn into great movements. So looking for the great problems to solve is not the only way and may not be most efficient way to do it either.

Q: What are your suggestions on finding interesting ideas and bringing the ideas to life to solve?

A: Interesting ideas to solve come from deep domain knowledge. It’s very difficult for entrepreneurs when they are young to come up with ideas as they can be light weight. The average age of an entrepreneur in America is 37. This means that many people are older than 37 when they start their company. So only if you worked in the industry for 5-10 years you really understand what issues are, what the problems are, and then you can see how you can solve them. So my advice is:  look around you, work in some industry, learn the hard skills. Then you will see the problem and you will be well equipped to solve them. This is how you address this issue.

Q: What are your takes on finding the right business model and identifying early customers?

A: To find the right business model and early customers is simple. You should be able to answer these two fundamental questions: what problem are you solving and who has this problem.  If you cannot concisely answer these two questions you don’t have clarity in your head. I insist that people should talk to 5 to 10 actual users and buyers of whatever product they’re planning to buy and try to understand what their pain is. If you cannot clearly articulate what pain your customers have do not start the company. Then discuss with customers what you are planning to do and if this would be interested in it. If you cannot generate this early customer interest, do not start the company.

And stop worrying about confidentiality. People have other problems to solve in their lives. They are not running to copy your idea. It is the execution of your idea that is the hard part. By bouncing these ideas off suitable customers and users and consistently getting positive feedback, you may be in a position to start the company and then they likely will buy it. Everything else will clarify itself during the course of this process.

Q: Can you please tell us about the legal process of starting a company?

A: Legal process depends on in which country you are starting the company in, what the local regulations are.  My book which is a legal guide for entrepreneurs goes into fair amount of details: What is the process, what options you have in the United States. So read the book. It’s available at naeemzafar.com.

Q: As you’ve seen during Internet bubble, there were so many companies founded and were committed to change the world. But with the changes of time around 90% of them got obsolete. And we ended up having some great companies. Now, there are also so many startups working with cloud computing, big data, wearable technologies, space, robotics and so on. The data shows most of them will also get obsolete as the success rate of startups is very low. But there are always some common characteristics, values,  philosophies and ideas that  keep some startups alive and helps to sustain in the long run. You have profound experience of seeing all the trends as you have been advising companies and working with great entrepreneurs in Silicon Valley. What are your suggestions on building the next big organization?

A: Aspect of building the next big organization is about solving a big problem. It is easy to spot what are the problems that need to be solved. All the trends you mention have tremendous potential.

Big data and business analytics can pinpoint precisely if you put a restaurant in the corner of this street and that street. They tell you what will be your monthly sales when you put it in the corner of that street and that street. So, the way businesses will be making decision could be based on not intuition but actual data.

If you read the book or watch the movie called Moneyball, it is about applying statistics to baseball. It is about how a mediocre team became the number one team by using big data. And that is applicable to every single business. So look for a big idea around you and build a great team with high caliber people. If you can put together a right market with the right team, you can build a lasting company too.

Q: How do you think about hiring remarkable people and let them scope to work on achieving vision that will change our world for good?

A: I think it’s good idea to hire remarkable people. You should do that. It’s not easy to do that. Remember the good people  will follow somebody which they can respect and whose vision they share. If you don’t have the passion and vision yourself why would A people, A players, best players follow you. Best players want to follow someone that they believe in. If you have that you shall attract the right team. And yes, you will be able to do great things. So step up to the stage and stage could be yours.

Q:  Whenever we talk about changing the world, thing that always comes first is changing ourselves. After changing our own life, we can go and change our family, then our society and then our country and then we can have a mission of changing the world to make it a better place to live in. But changing the world is hard, complex, challenging and hurting. You have come a long way and have already left a body of works to make this  world a bit more special. Can you please tell us about what your life has thought you in this amazing journey?

A: What my life has taught me is that it’s not a sprint. It is a marathon. So you have to create your own brand. You have to be genuine and honest and people will follow you . If you have  a vision that attracts people, you will have easy time attracting them.

So my advice to myself and other people around me is that if you’re a genuine person and a truthful person and you have a strong vision and can articulate it, you will have people willing to follow you. Once you have people willing to follow you then there is no challenge you cannot take tackle, no matter how big it is.

You will be able to overcome it over time and there are plenty of problems to follow around the world. But be true to yourself and always look for the team who is willing to follow you.

Q:  Last but not least, can you please give some advice to entrepreneurs who are on the mission of changing the world?

A: Changing the world is important and changing the world sometimes happens. But that is not the goal to start with. It is too big goal. It is too audacious and maybe even too arrogant to have this goal.

Martin Luther King did not have the goal of changing the world. He was just trying to change some laws so that black people could have equal rights. When Steve Jobs was starting Apple he wanted to do a music iPod. He was not trying to change the world. So I’m a little bit suspicious of your question because changing the world has come up multiple times.  Forget about changing the world. Do something meaningful for the people around you and your community. If you’re lucky enough it will have a big impact.  So think more practical and try to make local change. Stop worrying about changing the world – that will come later if you’re so lucky.

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Further Reading:

1. Peter Klein on Entrepreneurship, Economics and Education

2. Derek Sivers on  Entrepreneurship, CD Baby and Wood Egg

3. F. M. Scherer on Industrial Economy, Digital Economy and Innovation

4. Diego Comin on Entrepreneurship, Technology and Global Economic Development

5. Stephen Walt on Global Development

6. Juliana Rotich on Social Entrepreneurial Innovation

Ely Kahn: Big Data, Startup and Entrepreneurship

Editor’s Note: Ely Kahn is the Co-founder and VP of Business Development for Sqrrl, a Big Data Startup. Previously, Ely served in a variety of positions in the Federal Government, including Director of Cybersecurity at the National Security Staff in White House, Deputy Chief of Staff at the National Protection Programs Directorate in the Department of Homeland Security, and Director of Risk Management and Strategic Innovation in the Transportation Security Administration. Before his service in the Federal Government, Ely was a management consultant with Booz Allen Hamilton. Ely has a BA from Harvard University and a MBA from the Wharton School at the University of Pennsylvania.

You can find him on Twitter and LinkedIn. Learn more about his Big Data Startup Sqrrl [here]

eTalk’s Niaz Uddin has interviewed Ely Kahn recently to gain insights about Big Data, Startup and Entrepreneurship which is given below.

Niaz: Dear Ely, thank you so much for joining us in the midst of your busy schedule. We are very thrilled to have you at eTalks.

Ely: My pleasure. Thank you for having me.

Niaz: You’re a former management consultant and senior government official who turned Big Data Entrepreneur. At the beginning of our interview, can you please tell us something about entrepreneurship? What is entrepreneurship? Why are you an entrepreneur?

Ely: While in government, I viewed myself as an “intrapreneur”, and I focused on developing new public sector programs that could disrupt traditional ways of doing business.  Moving to private sector entrepreneurship was a natural evolution for me.  Entrepreneurship takes all different forms, but the type of entrepreneurship that is most interesting to me is modeled around Clayton Christensen’s theory of “Disruptive Innovation.”

Niaz: You have a BA from Harvard University and a MBA from the Wharton School at the University of Pennsylvania. You’ve served in a variety of positions in the Federal Government and before your service in the Federal Government; you were a management consultant with Booz Allen Hamilton. How have you transformed your career into entrepreneurship and why? What’s the most exciting thing about entrepreneurship to you?

Ely: Innovation has been a key theme in all my jobs so far and cuts across consulting, government, and startups.  However, business school was actually an incredibly valuable tool for making the transition from government to a technology startup.  More than anything, it was two years that allowed me to explore different startup ideas in a very low risk environment.

The most exciting thing about entrepreneurship for me is the continuous learning environment.  Every week it seems I am picking up something new across a wide variety of functional areas, including sales, marketing, business development, product management, and finance.

Niaz: You’re the Co-founder and VP of Business Development of Sqrrl, a Big Data company. How did the idea Sqrrl come up and how have you started?

Ely: Sqrrl’s technology has its roots in the National Security Agency (NSA) and that technology is called Accumulo.  Accumulo powers many of NSA’s analytic programs.  I was introduced to the NSA engineers that helped create Accumulo while I was in business school, and from there I started to put together the business plan and investor pitch to commercialize Accumulo.

Niaz: At this point, can you please kindly tell us a bit of funding? Who are the core investors at Sqrrl?

Ely: We have two world-class investors:  Atlas Venture and Matrix Partners.  We closed a $2M seed round with them in August 2012.

Niaz: So everything you are doing at Sqrrl is all about Big Data and Big Data Products. Can you please tell us what is Big Data?

Ely: Big Data is generally referred to as data that cannot be processed using traditional database technologies because of the volume, velocity, and variety of data.  Big Data typically includes tera- and petabytes of structured, semi-structured, and unstructured data, and examples are sensor data, social media, clickstreams, and log files.

Niaz: Why do you think Big Data is the next big opportunity for all of us?

Ely: Big Data technologies like Hadoop and Accumulo enable companies to analyze datasets that were previously too expensive or burdensome to process.  This analysis can become new forms of competitive advantage or can open up completely new lines of business.

Niaz: How do you define Big Data Product? Can you please give us some examples of Big Data products?

Ely: Big Data products span a wide range of technologies, including storage, databases, analytical tools, and visualization platforms.  Two classes of Big Data technologies that are of particular importance are Hadoop vendors and NoSQL database vendors.  Hadoop + NoSQL enable organizations to process petabytes of multi-structured data in real-time.

Niaz: How will Big Data products change the perception of building products?

Ely: Many Big Data products are still “crossing the chasm” from early adopters to mainstream users.  However, these products have the potential to bring the power of massive parallel computing to many companies.  Historically, these types of capabilities have been the domain of massive web companies like Google and Facebook or large government agencies like the NSA.

Niaz: Now can you please briefly tell us about Sqrrl?

Ely: Sqrrl is the provider of a Big Data platform that powers secure, real-time applications.  Our technology leverages both Apache Hadoop and Apache Accumulo, which are open source software technologies.

Niaz: What are your core products and who are the main customers of Sqrrl?

Ely: Our technology offering is called Sqrrl Enterprise and it enables organizations to securely bring their data together on a single platform and easily build real-time applications that leverage this data.  Some of the use cases for Sqrrl Enterprise include serving as the platform for applications that detect insider threats in financial services companies or serving as the platform for predictive medicine in healthcare companies.

Niaz: You’ve started at August 2012. How’s company doing now?

Ely: The company is doing great.  We now have about 20 employees and a number of customers in a variety of industries.

Niaz: What is your vision at Sqrrl?

Ely: Our vision is to enable organizations to “securely analyze everything.”  Our Big Data platform helps organizations perform analytics on massive amounts of data and often times this data has very strict privacy or security requirements on it.

Niaz: How big is Big Data industry?

Ely: According to the analyst firm Wikibon “the Big Data market is projected to reach $18.1 billion in 2013… [and] on pace to exceed $47 billion by 2017.”

Niaz: What do you think about the other Big Data startups? How’s Big Data community doing?

Ely: There is an amazing ecosystem of Big Data startups that are doing some amazingly innovative things.  I am paying particular close attention to startups focused on machine learning and data visualization, as these are complementary areas to our product.

Niaz: Well, we all know that starting a company is not an easy task for us. So, can you please put in the picture what are the difficulties of starting a company we may face?

Ely: The thing that is fascinating about doing a startup is that there is a never ending series of challenges:  raising funding, hiring, finding product-market fit, customer acquisition and retention, and the list goes on.  The key is to be continuously prioritizing where to spend your time.

Niaz: What have you learned by starting a company?

Ely: I have learned many things, but the lesson that I am continuously learning is to be resilient.  Startups are inevitably filled with small failures, but the key is to quickly learn from them to avoid any large failures.

Niaz: What are the mistakes an entrepreneur can make in the early stage?

Ely: I think the biggest mistake that an entrepreneur can make is being afraid to make mistakes.  Early stage entrepreneurs need to be continuously running experiments to find product-market fit.

Niaz: Can you please share some of your life lessons for our readers?

Ely: Stay humble.  Entrepreneurship requires both luck and skill, and I think people sometime mistake luck for skill.

Niaz: Thank you so much for joining us and sharing your invaluable ideas, insights and knowledge. We are wishing you very good luck for the greater success of Sqrrl.

Ely: Many thanks.

_  _  _  _  ___  _  _  _  _

Further Reading:

1. James Allworth on Disruptive Innovation

2. Viktor Mayer-Schönberger on Big Data Revolution

3. Gerd Leonhard on Big Data and the Future of Media, Marketing and Technology

4. Brian Keegan on Big Data

5. Irving Wladawsky-Berger on Evolution of Technology and Innovation

Gerd Leonhard: Big Data and the Future of Media

Editor’s Note: Gerd Leonhard is a well-known Futurist and Author of 5 books, a highly influential Keynote Speaker, Think-Tank Leader & Adviser, and – since late 2011 – the Founder of GreenFuturists.com. Wall Street Journal called him ‘one of the leading Media Futurists in the World’. He is well-known as the Co-author of the influential book ‘The Future of Music’ (Berklee Press, 2005), and as the author of ‘The End of Control’ (2007), ‘Music 2.0’ (2008), ‘Friction is Fiction’ (2009, Lulu Publishing), and ‘The Future of Content’ (Kindle-only, 2011). His new book is “From Ego to Eco”.

Gerd is a fellow of the Royal Society for the Arts (London), a member of the World Future Society, and a visiting professor at the Fundação Dom Cabral in Brazil. A native German, he now resides in Basel, Switzerland.

You can read his bio and learn more about his works from here, here, here, here and here.

eTalk’s Niaz Uddin has interviewed Gerd Leonhard recently to gain his ideas and insights about  Big Data and the Future of Media, Marketing and Technology which is given below.

Niaz: Dear Leonhard thanks for joining us in the midst of your busy schedule. We are honored and thrilled to have you at eTalks.

Gerd: My pleasure.

Niaz: At the beginning of our interview, can you please tell us about Big Data? How is Big Data revolutionizing our life and work?

Gerd: I define Big Data as the result of exponentially increasing velocity, variety, volume, virality and value.  All of us are generating increasingly large amounts of data, whether it’s by using Google, or sharing a location, rating a site, tweeting, facebooking, photo uploading etc. – and this is primarily driven by the Social-Local-Mobile SoLoMo revolution on the Internet. Once this data can be harnessed – and safeguarded i.e. refined and permitted – it will allow for substantial cost savings (such as with networked public cars, logistics, p2p energy etc.) as well as for pretty dramatic new values such as prediction and anticipation offerings like Google Now and Siri.

Niaz: Why does Big Data excite you most?

Gerd: The possibility of generating real user value from the raw data, i.e. faster understanding of complex issues, realtime, customized news and content feeds, and an overall dramatically improved digital content experiences.  The downside – as we have just recently discovered see my post on this, that we may all become permanently naked and subject to whatever data obsession governments may follow.

Niaz: What do you think about Big Data Products?

Gerd: They are more like services, platforms and experiences then they are products — but we are still very nascent with this; kind of like the beginning of Search, 10 or so years ago.  Every major technology company, every internet portal and every media company is now diving into Big Data as the next big thing – and this connects to Social Media of course, and to The Internet of Things (IoT)

Niaz: How the futures of products (Big Data Products) are going to be changed?

Gerd:  Big Data, unlike Big Oil, will be all about ecosystems, about creating win-win-win solutions, about interdependence and mutual respect i.e. permission and trust. Unless we have that worked out, it will fail.

Niaz:  As you know, Big Data has started revolutionizing almost everything. Marketing is changing significantly. Can you please tell us about the impact of Big Data in Marketing?

Gerd: Basically, IF users allow marketers to track them i.e. if there is a ‘like’ relationship, than big data feeds are a goldmine for marketers – everything will be 99% track able, customized and personalized.  Again, IF value is there for the users, this is dream come true for marketers. The main focus will be on securing and maintaining TRUST – which is why the PRISM debacle is such an issue

Niaz: What do you think about the future of Marketing?

Gerd: We wont need Marketing as we know it. It will all be about sense-making, curation, experiences, added values, timeliness and conversations (see my HBR piece)

Niaz: If you go for buying foods, soda or any house hold things you will have so many good alternatives. Considering broader area, if you go for buying smart phone, computers or even cars, you will have so many good alternatives too. But living in such an exciting era, we just have only one good search engine, only one good micro blogging site, only one good social network and only one good professional network. Are we going through any crisis?

Gerd: I think we have a multitude of platforms and services – innovation is moving much too fast!

Niaz: How can we recover this crisis? What is the future of this trend?

Gerd: The only way forward is to create some kind of ‘sustainable capitalism’ based on hyper-collaboration and new, interdependent ecosystems of money, media, energy, food and data (See ego to eco).

Niaz: As you know, as long as we are watching adds on social media or web, we are no longer human beings, we become products. Social media companies are making billions of dollars but they are not making their consumers wealthy and not even enriching the life of consumers. What are the core problems of our social media?

Gerd: As the saying goes: if you don’t pay you ARE the product. This is not per se a problem – unless we lose control of our bargains. Too much too fast too deep can become a real problem for the human brain, as well, so… deteching will increase as well.

Niaz: How do you see the world of social media evolving over the next 10 years?

Gerd: All the web is social, mobile, local – there will be no difference in online and offline in less than 7 years, and the same goes for ‘social’.

Niaz: By this time, Google has become very gigantic. It controls almost all information available on the Internet. It shows us that information it wants to. So many people have already started to believe that Google is going to control the whole world. We have also seen Google to use its monopoly power. Google’s search algorithms “decide” what is relevant and valuable. What do you think about Google’s monopoly? What could be better for the whole world?

Gerd: If Google behaves like a monolith and stops earning our trust it will die very quickly as we will feel be betrayed – this is why WE control these big web companies, in the end.

Niaz: Can you please tell us about real-time approach?

Gerd: Everything is going real-time because of mobile internet, cameras, social media, big data — in many ways a torrent of noise, in other ways a treasure trove. We will need better filters and curators.

Niaz: What are the impacts of real-time approach in everything we do now?

Gerd: Basically if it’s not realtime we won’t care.

Niaz: Dear Gerd, we are really grateful for giving us time and sharing us priceless ideas, insights and experience for eTalks community. We are wishing you very good luck for all of your upcoming endeavors.

Gerd: Thank you Niaz.

_  _  _  _  ___  _  _  _  _

Further Reading:

1. Viktor Mayer-Schönberger on Big Data Revolution

2. James Allworth on Disruptive Innovation

3. Ely Kahn on Big Data, Startup and Entrepreneurship

4. Brian Keegan on Big Data

5. danah boyd on Future of Technology and Social Media

6. Irving Wladawsky-Berger on Evolution of Technology and Innovation

7. Horace Dediu on Asymco, Apple and Future of Computing

Daniel Pink: To Sell is Human

Editor’s Note: Daniel Pink is the author of five provocative books– including the long-running New York Times bestsellers, A Whole New Mindand Drive.His latest book, To Sell is Human, is a #1 New York Times business bestseller, a #1 Wall Street Journal business bestseller, and a #1 Washington Post nonfiction bestseller. Dan’s books have been translated into 34 languages. His articles on business and technology appear in many publications, including the New York Times, Harvard Business Review, Fast Company, Wired, and The Sunday Telegraph (See a sample of articles here).

His TED Talk ‘The puzzle of motivation‘ has almost 6 millions views and RSA Animate Talk ‘The surprising truth about what motivates us‘ has more than 10 millions views. Dan has provided analysis of business trends on CNN, CNBC, ABC, NPR, and other networks in the U.S. and abroad. And he lectures to corporations, associations, and universities around the world on economic transformation and the new workplace.

In 2011, Thinkers50 ranked him one of the 50 most influential business thinkers in the world. To read his full bio, please click here, here and here.

eTalk’s Niaz Uddin has interviewed Daniel Pink recently to gain insights about Conceptual Age, To Sell is Human, Art and Design which is given below.

Niaz: Dear Dan, thank you so much for joining us. We are very honored to have you at eTalks.

Dan Pink: My pleasure.

Niaz: As you know, we have been living through the agricultural, industrial, and information ages. According to you, we are now living in a conceptual age. At the beginning of our interview, can you please tell us about ‘Conceptual Age’?

Dan Pink: We are leaving the Information Age — an economy and a society built on logical, linear, computer-like capabilities — and entering an economy and a society build on inventive, empathic, big-picture capabilities — the Conceptual Age. The defining skills of the Information Age — what I call “left brain” capabilities — are still necessary, but to them we need to add “right brain” aptitudes and qualities. In A WHOLE NEW MIND, I identify six essential aptitudes for the new age: Design, Story, Symphony, Empathy, Play, and Meaning.

Niaz: You say, in today’s world, we are all sales people. Your most recent book ‘To Sell is Human’ has become New York Times, Wall Street Journal’s and Washington Posts’ Best Seller. We must comprehend now, whoever we are, whatever we do and wherever we belong, we do sell. Why do you believe ‘To sell is Human’?

To Sell Is Humna

Dan Pink: Like it or not, we’re all in sales now — whether we have sales in our job title or not. But sales isn’t what it used to be. We’ve moved from a world of information asymmetry (sellers have lots more information than buyers) to one of information parity (sellers and buyers are more evenly matched). And that has nudged us from a world of “buyer beware” to one of “seller beware.” Selling effectively — whether it’s your idea or your product or yourself– in a world of seller beware depends on three key qualities: Attunement (taking another’s perspective); Buoyancy (staying afloat in an ocean of rejection); and Clarity (moving from accessing information to curating it and from solving existing problems to identifying new problems.) I talk about these qualities keeping in mind the skills you need to become more effective at selling, but in the end I hope that what this book shows is that selling is more important, more urgent, and more beautiful than we realize. The capacity to sell isn’t some unnatural adaptation to the merciless world of commerce. It’s part of who we are.

Niaz: You’ve said that abundance changes the way we see material goods. We no longer just want to have things; we want cool things. We want well-designed things. We want things with a meaning. On the other hand, you’ve also said that the new master of business administration is the master of fine arts. Why do you think art and design are the next big things?

Dan Pink: We live in a world of such abundance and prosperity that, for businesses, it’s no longer enough to make a product that’s reasonably priced and adequately functional. It must also be beautiful, unique, and meaningful. Design – the marriage of utility and significance – has become an essential aptitude for personal fulfillment and professional success in the Conceptual Age.

Niaz: As you know, so many of us now want to contribute amazing things to make this world a better place. We also see people want to change the world to make it a bit more special. In reality, it is so tough to change the world. But having a wish to change the world is really appreciating and great. Can you please tell us about the top most problems of this planet which has to be considered greatly to make this world a better place?

Dan Pink: The general story of humankind is a slow (and often unsteady) march toward progress. If you look back from today, things are much better for most people than they were 100 years ago, let alone 500 years ago. That’s not to say we don’t have contemporary challenges. Here in the U.S., I’d put two issues at the top:

1. Our economy is increasingly leaving a slice of our population behind, marooning them without meaningful work or a sense of hope;

2. Our government, particularly at the federal level, is close to dysfunctional.

On a world level, I’d put at the top of the list two more issues:

1. Global warming and the fact that we’re not fully ready for its consequences;

2. The fact that while you and I are conversing via email, more than a billion people still live in poverty.

In general, though, I’m optimistic that we’ll slowly resolve these challenges — because, as I said earlier, that’s been the trajectory over time.

Niaz: Dan, thanks again for giving us time in the midst of your busy schedule and sharing us your invaluable ideas.

Dan Pink: You’re welcome Niaz.

_  _  _  _  ___  _  _  _  _

Further Reading:

01. Philip Kotler on Marketing for Better World

02. Hugh Mac­Leod on Creativity and Art

03. Philip Delves Broughton on What they teach you at Harvard?

04. Naeem Zafar on Entrepreneurship for the Better World

05. Derek Sivers on  Entrepreneurship, CD Baby and Wood Egg

06. Jeff Haden on Pursuing Excellence

07. Rita McGrath on Strategy in Volatile and Uncertain Environments

08. Gautam Mukunda on Leadership

09. Gerd Leonhard on Big Data and the Future of Media, Marketing and Technology

Philip Kotler: Marketing for Better World

Editor’s Note: Professor Dr. Philip Kotler is the S.C. Johnson & Son Professor of International Marketing at the Kellogg School of Management, Northwestern University, Evanston, Illinois. He has been honored as one of the world’s Leading Marketing Thinkers. He received his Master’s Degree at the University of Chicago and his PhD Degree at MIT, both in Economics. He did post-doctoral work in Mathematics at Harvard University and in Behavioral Science at the University of Chicago.

Professor Kotler is the author of several bestselling books including Marketing Management: Analysis, Planning, Implementation and Control. It is the most widely used marketing book in graduate business schools worldwide. He has published over one hundred articles in leading journals, several of which have received best-article awards.

He has been a consultant to IBM, General Electric, Sony, AT&T, Bank of America, Merck, Motorola, Ford, and others. The Financial Times included him in its list of the top 10 Business Thinkers.

You can read his full bio from here, here, here, here and here.

eTalk’s Niaz Uddin has interviewed Philip Kotler recently to gain insights about his ideas, research and works in the field of marketing and creating better world.

Niaz: Dear Kotler, thank you so much for joining us. We are delighted and honored to have you at eTalks.

Philip Kotler:  Niaz, thank you for having me.

Niaz: You are an economist trained at the University of Chicago (M.A.) and MIT (Ph.D.). Three of your Professors were Nobel Prize Economists – Milton Friedman, Paul Samuelson, and Robert Solow. But you have been cited as the world’s foremost expert on the Strategic Practice of Marketing. Can you please tell us a little bit about yourself and why marketing became such a big factor in your life?

Philip Kotler:  Throughout my study of economic theory, I was bothered by the absence of discussions of distribution institutions (wholesalers, retailers, agents, jobbers, etc.) and promotional tools (advertising, sales promotion, and salesforce).  It seemed to me that the level of market demand and individual company demand are heavily influenced by these institutions and activities as well as price (which absorbed the most attention of economists).  When I was offered a position to teach either economics or marketing at the Kellogg School of Management at Northwestern University, I chose to teach marketing so that I could show that it was a branch of economic science.

I moved into the question of what influences the level, composition and timing of customer demand and what are the determinants of individual demand.  Classic economics assumes a world of rational buyers and rational producers.  I always felt that this grossly oversimplified the understanding of customer behavior and producer behavior.  The recent growth of interest in behavioral economics in contrast to classical economics is bringing many missing institutions and activities into economic focus.

Niaz: So how do you define Marketing?

Philip Kotler: The shortest definition of marketing is “Finding needs and filling them profitably.”  However, I would rather cite the American Marketing Association’s definition that says “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for consumers, clients, partners, and society at large.”  (American Marketing Association, 2008)

Niaz: In this hyper competitive era, what do you think about the Position of Marketing in Total Business Operation? How can marketing change the entire game plan?

Philip Kotler:  In spite of the fact that marketing is now headed by a Chief Marketing Officer (CMO) who presumably participates in the company’s strategy development, I find in many companies that the CMO is not invited or expected to be an active participant in strategy development.  It’s as if senior management wants the CMO to continue managing the marketing work without interfering with long range strategic planning.

The irony is that the CMO is the person in the company who is closest to the changing marketplace and is in the best position to spot new opportunities for the company.  Because the CMO is probably going to have a left brand (analytical) and a right brain (creative), CMOs are more likely to work as game changers during the planning process.  We expect CMOs to have a very deep understanding of customers, competitors, distributors, and suppliers.

If I ran a company, I would want my Chief Marketing Officer (CMO) to be modeled on Steve Jobs and come up with big, new ideas and also be modeled on Bill Gates with a deep grasp of business analytics.

Niaz: Your Marketing Management book is in its 14th edition and is used in most MBA Marketing courses worldwide. A certified classic, the book has ranked among the Top 200 Titles on Amazon.com and been named among the 50 Best Business Books of All Time by Financial Times. You published the first edition of this book around 46 years ago. So what are the revolutionary changes has occurred by this time in our society?

Philip Kotler: During this period, I have witnessed a lot of changes in the marketplace and I have managed to portray them in each new edition of Marketing Management, now in the 14th edition.  My editions helped emphasize the need to adopt a customer orientation; to precede the 4Ps with segmentation, targeting and positioning (STP); to move into higher mathematics and better marketing metrics to show accountability; to emphasize the social responsibilities of marketing; to broaden marketing to cover the marketing of places, people, and ideas; to recognize the importance of relationship marketing over transaction marketing; and to recognize the revolutionary power of digital and social marketing.  My next edition will enlarge on some new trends such as co-creation, crowdsourcing, sustainability, dynamic pricing, digital marketing, marketing automation, and growth strategies.

Niaz: What are the biggest shifts you see happening among consumer attitudes and behaviors right now and how is technology influencing this?

Philip Kotler:  Consumers are worried about the future and their ability to keep their job and hopefully earn a good and growing income.  They see the high level of unemployment in the U.S. and Europe and see a growing number of industries – music, publishing, movies, retail book stores – being disrupted by online and digital marketing.  This leads consumers to save more and spend less which only increases the loss of jobs.  And companies see only two ways to compete, either by presenting a lower price to reach the mass market (Wal-Mart) or by presenting a higher price to reach the affluent (Gucci).  The middle is gone.

Niaz: How are those shifts affecting Marketing?

Philip Kotler:  The big problem facing companies today is how to grow in a low growth market. My answer is that marketers face more opportunities and hidden pockets of growth than they normally recognize.  I just published Market Your Way to Growth: Eight Ways to Win. There are eight chapters and each examines a specific pathway to growth.  I worry that companies get stuck in one strategy that is now showing diminishing returns and fail to shift in time to any of the other seven pathways to growth.

Niaz: What kind of impact are the Internet, Social Media and other Advances in Communications Technology having on marketing?

Philip Kotler:  The Internet is having an impact today that is comparable to what the world felt when Gutenberg introduced the idea of printing.  The Internet, social media and new communication technologies are major game changers in marketing.  No longer does the company own its brand by having a monopoly on communications about their brands.  It is the consumers and their peer-to-peer talk that is shaping our images of brands and what to buy and how much to pay.  Furthermore, no company can afford to deceive customers without being quickly exposed on the Internet.

Niaz: Are the ‘four Ps’ still a useful framework?

Philip Kotler:  Yes.  Please appreciate that the 4Ps are the basis of a marketing plan.  Any respectable marketing plan must discuss the company’s decisions on Product, Price, Place and Promotion. If the company wants to add some other things, they are either already implied in the four Ps or could be added.  For example, services are part of the product, and sales force is part of promotion.  Packaging is part of the product.  Recently Professor Jagdish Sheth introduced the four A’s – Availability, Affordability, Acceptability, and Awareness – but I see the 4As not as a competitor but a useful complement that precedes the setting of the 4Ps. The 4As identify the consumer conditions that should be satisfied and it is the job of the 4Ps to follow upon the 4As.

Niaz: What do you see the role of technology being in the new marketing mix?

Philip Kotler:  New technologies affect all of the 4Ps. The advent of 3D Printing will help entrepreneurs design new products cheaper and faster.  The development of software to do dynamic pricing will allow airlines to change the price of seats depending on the number of seats already sold. The development of new distribution channels such as online selling and eBay are increasing the ease of transacting.  The development of social media technologies such as Facebook, Twitter and YouTube are changing our tools for promotion.

Niaz: Well known marketers like Yvon Chouinard, the founder of Patagonia, believe that “traditional advertising is dead.” Is he correct or misled, and why?

Philip Kotler:  This statement makes a good headline but it is inaccurate.  Traditional advertising will continue in its role as brand builder but it will have to do it with a lower budget.  Some percentage of every advertising budget will have to move into digital and social media marketing.  Right now this may be 5 percent, then 10 percent, and conceivably in five or more years 50 percent.  The more correct statement of Yvon Chouinard would be that traditional advertising will increasingly partner with digital marketing, one supporting the other in a synergistic way.

I will add one more thought about advertising.  What is most important in advertising is copy, not media.  The best media won’t make up for poor copy.  I don’t think advertising agencies come up with exceptional campaigns.  Of the last 10 campaigns that you saw, you are unlikely to be impressed with more than one.  Most campaigns simply lack originality and punch.  I prefer to hire three advertising agencies and pay them for three campaign ideas for the same product and then choose the best campaign idea and hire a separate media agency to develop the best media mix to carry the best of the three campaign ideas to the target audience.

Niaz: Let’s look at marketing in the future. What changes are going to occur within in next couple of decades?

Philip Kotler:  Here are four changes out of many:

1. Companies will increasingly invite customers to co-create products with the company.

2. Companies will increasingly resort to crowdsourcing to get ideas for new products, new advertising campaigns, and new sales promotion ideas.

3. Companies will increasingly move to marketing automation where they use artificial intelligence to carry out marketing activities that were formerly done by skilled marketers.

4. Companies will increasingly learn how to produce “lovemarks” with their customers and employees.

Niaz: What are the points that a CMO must remember now before setting marketing plan?

Philip Kotler:  The first need is to get each marketing planner to carefully define the target audience and deeply understand their needs and desires and the main triggers to purchase.  The aim should be to discover something new about that target audience, some new insight into their psyche that will cause them to want to take the offer.

Niaz: As you know Disruptive Innovation sometimes makes Customer Driven Company obsolete. In addition to giving most priority to customers, companies now need to focus on some other important factors like changing technological trend, innovation, market shifts and so on. Now, what are your suggestions for companies to set marketing plans in order to save their companies from getting obsolete for Disruptive Innovation?

Philip Kotler:  Every company and industry is in danger of disruption.  The choice facing a company is whether to be disrupted or be the disrupter.  I would advise a company to run a meeting ever so often to consider everything that might disrupt the company, whether it is a new technology, a shift in consumer tastes or their pocketbook, etc.

Each possible disruption needs to be assessed for its severity and its probability of happening.  A serious probable disruption poses the following choice.  Either sell the business now before it loses its value due to the imminent disruption, or invest in the disruption to replace your business and become the disrupter.

Niaz: How can marketing help Startups to survive in front of giant competitors like Google, Facebook, Amazon and Apple?

Philip Kotler:  Many entrepreneurs precisely try to take a bite out of a giant competitor.  Right now, several companies are trying to hit Google by setting up a more focused search system.   Their aim is not to slay Google so much as ironically to sell out to Google.  Giant companies are well prepared to buy up any company that carries a disruptive potential and either bury it on the shelf or expand it into another business opportunity.

Niaz: What are the secrets of revolutionary marketing?

Philip Kotler:  I don’t use the term revolutionary marketing.  You might mean Guerrilla Marketing whereby a small company attacks a giant firm on a hit and miss basis.  Or do you mean a company that will create a paradigm change?  For example, Tom’s shoes has proven that online selling of shoes works.  Tom’s offers to send three different sizes of the same shoe, expecting the customer to buy the best fit and return the other two pairs.  In addition, Tom says that it will give a free pair of shoes to a poor person for every pair sold to a customer.  This principle is now adopted by a new eye glass company that will send several glass frames by mail from which the customer makes a choice, and in addition the company will supply a free pair of glasses to a poor person who can’t afford to pay.

Niaz: One of your recent books is Chaotics. Can you please give us a brief of ‘Chaotics’?

Philip Kotler:  John Caslione and I wrote Chaotics right after the financial crash that took place in 2007 to caution companies against making the wrong responses to the crisis.  Most companies wanted to cut their costs and lower their prices.  This is not always the most appropriate response in chaotic, turbulent times.  Some companies should actually increase their marketing spend and take advantage of the crisis.  Consider that some competitors are weakened more than your company and this is the time to attack, not withdraw.  This is the time to build your market share which in normal times cannot be moved a few points.  We discuss the appropriate decisions that companies in different situations need to make in their marketing, production, finance and other functions to take advantage of the turbulence.

Niaz: You have published the seminal article in 1971 coining the term “Social Marketing” in its original use. Can you please tell us about ‘Social Marketing’?

Philip Kotler:  Forty two years ago, Gerald Zaltman and I published “Social Marketing: An Approach to Planned Social Change” in the Journal of Marketing.  We felt that marketing science can apply to more than the marketing of goods and services.  Marketing can help in designing and promoting solutions to social problems, such as smoking, hard drugs, poverty, hunger, and others.  Marketing always starts with a customer analysis of the barriers and benefits that influence customer behavior. In the case of tobacco use, we need to distinguish the different segments of smokers and prepare a different 4P marketing campaign to help facilitate the decision to stop smoking.  We could have named this “cause marketing” but we chose to name it “social marketing” to imply that marketing has a social side, not just a commercial side.  Today there are thousands of social marketers trained in the basics of marketing and applying marketing to alleviate problems of poverty, hunger, poor nutrition, education, and health.  Recently the third World Social Marketing conference was held in Toronto, Canada with 600 attendees.

Niaz: You are the first recipient of the American Marketing Association Foundation’s “Marketing for a Better World” Award. Can you please tell us how can marketing be used to make this world a better place?

Philip Kotler:  We can create a better world through marketing in several ways.  Commercially, we can improve our products and services and find ways to lower their prices and costs.  Socially, we can work on specific social problems and reduce their severity through the application of social marketing.  Societally, we can assist companies in defining the areas where they can make charitable contributions and work with others to improve the quality of life.

Niaz: Is there a personal influence or anecdote from your own life that you can share regarding the attention you’ve given to solving social problems?

Philip Kotler:  When HIV/AIDs broke out as a major disease and took the lives of so many young adults, I developed a strategy for influencing young adults to avoid situations where they could contract AIDS.  It was important to avoid these situations and also get early testing if they might have contracted the disease.  I worked with the YMCA and other organizations to help them develop campaigns.  I didn’t think that straight education campaigns on the dangers of AIDS would be enough to demotivate certain behaviors.  Happily, modern medicines began to appear to help AIDS victims lead a longer life.

Niaz: Why do you think marketing is a great tool to change the world?

Philip Kotler:  Marketing’s starting point is with consumer well-being. Marketing is about the maximization of consumer well-being.  It also takes into account the well-being of employees, distributors,   suppliers, investors and other stakeholders. 

Niaz: How does Marketing can help us profoundly to change the world to make it a better place to live?

Philip Kotler:  There are at least three types of marketing that will contribute greatly to making the world a better place to live. 

1. Commercial marketing, in assisting companies to make better products and services for the poor, the middle class, and the affluent.

2. Social marketing, in assisting governments, nonprofit organizations and “caring” companies to influence more salutary behaviors such as better nutrition, regular exercise, desisting from smoking or using hard drugs, being environmental, etc.

3. Place marketing, in assisting cities, regions and nations to attract tourists and visitors and new residents and factories and retail chains so that life can be improved for all in those places.

Niaz: Thanks you so much for your invaluable time. All the best wishes for your good health and impressive works. We are grateful to have you at eTalks. Your ideas, knowledge and expertise are worth spreading. Thank you once again.

Philip Kotler:  You are welcome Niaz. I must compliment you on raising very good questions.

_  _  _  _  ___  _  _  _  _

Further Reading:

1. Derek Sivers on  Entrepreneurship, CD Baby and Wood Egg

2. F. M. Scherer on Industrial Economy, Digital Economy and Innovation

3. Stephen Walt on Global Development

4. Gautam Mukunda on Leadership

5. Rita McGrath on Strategy in Volatile and Uncertain Environments

6. Gerd Leonhard on Big Data and the Future of Media, Marketing and Technology