Powered by RND
PodcastsHistoriaA History of Marketing

A History of Marketing

Andrew Mitrak
A History of Marketing
Último episodio

Episodios disponibles

5 de 17
  • Gabriele Carboni: The Marketing Book Endorsed by Pope Francis, Italian History, and Impact Marketing
    A History of Marketing / Episode 15This is not a current events podcast, but this episode is more timely than usual.I’m joined by Gabriele Carboni, a marketer, author, consultant based in Italy. I met Carboni through Philip Kotler. Together they co-authored the book, “Enlightened Management” which is about how Impact Marketing can have a positive impact for people and the planet.Gabriele Carboni is probably the only marketer to have a book endorsed by the late Pope Francis. The Vatican issued this comment on Carboni’s book, “Civil Economy.” (Translated from Italian) “His Holiness encourages every reader, every business leader and every person of good will to take inspiration from this work, to transform every professional environment into a place of growth, not only economic but human and spiritual.“I'm publishing this episode just a few days since we learned of the passing of Pope Francis. But I recorded this conversation with Gabriele Carboni in February, when Pope Francis was alive but had been in the news due to health issues.Carboni shares some great stories about meeting Pope Francis and earning an endorsement from the Pope. He also shares about what it’s like to write a book with Phil Kotler, and speaks to the rich legacy of the Italian Renaissance, Enlightenment, and Italian Humanism. We discuss how the ideas from these eras and schools of thought influenced marketing as a field and inspired Carboni to focus on impact marketing.A Marketing Collaboration with Philip KotlerAndrew Mitrak: Gabriele Carboni, welcome to A History of Marketing.Gabriele Carboni: Hi Andrew, thank you for having me.Andrew Mitrak: So we connected via an introduction from Philip Kotler and you recently co-authored a book with Phil. So let's start the conversation there. How did you first learn about Philip Kotler and when did you first meet him?Gabriele Carboni: I was already beginning my company, which is a marketing company, obviously, digital marketing company. Digital marketing was my hobby and then we started a company with two business partners.Because, of course, I was good at building websites, I was good at creating graphics, so the operational part I had. But I needed to understand the strategy better, so I bought a copy of Marketing Management. And then I read it. And then since I'm also a journalist, I was invited to Milan in 2017. Philip Kotler was speaking there. And this is a fun story because in Italy you need to be part of an association to be a journalist. It's not just you write and you are a journalist, you need to get trained and then to be part of an order, there is the order of the journalists. So you have your press badge.So I went to the event with my badge and I said, "I am a journalist, this is my badge." Of course, I was not known as a journalist, it's not even my job. But I was there with my badge and I said, "Look, I'm a journalist, I have the badge. Can I interview Philip Kotler?" And of course they said, "Of course you cannot, because you are we don't know you, you're not in our list. So go and listen to the speech, but you're not going to meet him."Then I said, "Okay, at least I get a free event with Philip Kotler, I'm going to listen." After the event, the event was very small, it was in a university in Milan. And I saw that there was a press room. Then I went to where there was a person on the door and I said, "Look, I'm a journalist, this is my badge. I want to interview Philip Kotler." And he said, "No, you're not on the list."I took a look inside the room and I saw a pregnant woman who happened to be the press manager, and I told her that my wife, which was true, was pregnant too. So they were both at the seventh month of pregnancy. And we started talking, I tried to be nice with her and since, I don't know, we connected somehow. She said, "Okay, after everyone, if we have like 30 seconds, you can have a picture with him and this is the max I can do."It happened that at the end of everything, he was drinking a coffee, eating something. I had my occasion, I had my photo with him and then we had half an hour to speak. So I happened to be the last, but I got all the time in the world and it was very nice because I gifted him my first book, which was in Italian, but he liked the approach. I tried to explain to him an idea I had at that time which then became this card deck which actually was awarded one of the three best marketing innovations in the world in 2019 and he gave me a lot of advice. And then I asked him to write the book together and he said, "No," because, of course, he didn't know me.Andrew Mitrak: Yeah, you're pushing your luck a little bit there. You've already gotten in, you've gotten to meet him, you've gotten a half hour and right in the first meeting you've asked him to co-author a book.Gabriele Carboni: Exactly.So a year later, 2018, he came to Bologna, which is near where I live, so it was easier. Still with the journalist badge. At that time I was already known by the organization, so I got an interview and I asked him again to write a book together and he said, "No."Then in 2019, I made the card deck and again I went to visit him in Rome. It was the last time he went to Italy because after that there was COVID. And he said, "Oh, this card deck is very nice, we can do something together." And so we started to have an email exchange and we started to write something, he wrote a forward for a book on digital marketing I released. And then I went to Sarasota to visit him. And at last he said, "Okay, we are going to write a book together."Actually, in your interview with him, he was talking about a small and medium enterprises book and that is the book we have written together, which is this one, Enlightened Management. And now it's available in English since December last year and it's going to be translated into Italian in a few months. So it was pushing my luck as you say.Andrew Mitrak: I'm going to ask you about Enlightened Management and your work on small and mid-sized businesses. I want to ask, what is co-authoring a book with Philip Kotler like?Gabriele Carboni: I write very fast, so in three months I wrote the first part of the book. In like three hours he replied with all the modifications. So the problem with him is he's very active, also Saturdays and Sundays, even nights. He's super fast, so I had difficulty keeping up to his timing.Andrew Mitrak: It is amazing. At the time that you met him he must have been into his mid-80s and at the time I interviewed him he's in his early 90s and he's remarkably fast, remarkably sharp and smart and you have to keep up with him.Getting a Book Endorsement from Pope FrancisI want to shift gears and ask about another very influential world leader that you met. Pope Francis. And we're recording this in late February of 2025 and there's been a lot of news about Pope Francis's health and we certainly wish his holiness a speedy recovery.You are the first person I've ever met who had his book endorsed by the Pope. And I want to read this quote:"His Holiness encourages every reader, every business leader and every person of goodwill to take inspiration from this work to transform every professional environment into a place of growth, not only economic, but human and spiritual."And first off, congratulations on earning an endorsement from the Pope. I'm sure that's very meaningful to you. Can you tell me the story of meeting Pope Francis and how you came to earn an endorsement from his holiness?Gabriele Carboni: Yeah, I was invited after COVID to a very big event they had organized in Assisi, which is the city of San Francesco. There were like 1,000 young economists and marketers from all over the world, so it was very lucky to be invited. And I saw the Pope from afar. And that was the first time, but it was very exciting because it was with 1,000 people all together waiting for the Pope, it was very emotional.And then I visited him for a private meeting the year later, so it was two years ago. And I asked him to write a forward for my book. The book was not already written and of course they replied by his office, not him in person, they replied that they were not interested.Actually, part of that book is now Enlightened Management. So some of that content was presented to Pope Francis before Philip Kotler. It happened that I wrote a book with other very famous professors in Italy about the civil economy. And that was published by a Catholic Association. So I wrote to the Pope's offices because they said no, but they gave me their email address. Again, pushing my luck, I wrote them and said, "Hey, I have another book. It's already done, it's published by a Christian Association. Can you please write something?" And they replied with a full letter and it was crazy. It's really nice to have a comment by the Pope.Then I met him again last year. I gave him a butterfly as a gift. And actually, Philip already knows this, but no one else knows it. I sent a copy of Enlightened Management and I asked for another comment. So I'm a lucky guy and I push it.Andrew Mitrak: Being politely pushy, that's definitely a lesson for marketers. Just shoot your shot, right? You got to give it a try.Can you set the scene of what it is like to meet the Pope? What are you feeling? What is the environment? Because I never will in my life, very few of us are lucky enough to meet the Pope and you're the first person I've met who met him. So what is that like? Gabriele Carboni: Well, you are usually not alone because they are private meetings but with I don't know, 30 people, 100 people, 200 people. And he is very kind, he shakes hands with everyone. So we were 300 and everyone got a handshake and a picture with the Pope. It's like three seconds, of course. But everyone. And also he gives you a small gift, very emotional and then he always gives a lecture. Last year it was about AI, so it was very interesting.And then you have, if you want, you can say something, like again, two or three seconds. But he's very kind, nice, and of course… holy, we can say.Italian Humanism's Influence on Business and MarketingAndrew Mitrak: So I want to talk about some of your philosophical background into how you became a marketer. And in our email exchange prior to this interview, you mentioned that you began your journey with exploring Italian humanism. And can you share more about what Italian humanism is and how you went from this philosophical pursuit to becoming a digital marketer and a marketing author?Gabriele Carboni: It's about humanism. Also Philip wrote his second autobiography, My Life as a Humanist. Italians have in their background the Renaissance and humanism, which helped us a lot to think business in a different way.One thing I've learned is that in the past, more or less where we have humanism, which was before Renaissance, companies had God as a shareholder. Meaning part of the profits were given to the community, because, of course, they didn't fire the money to God, they just gave to the community. And which is now something we do to benefit corporations or companies that have a purpose. So that intrigued me very much and I bought some books, one I have here for you, it's a book, an original book from the 1800s. And it discusses the economies of the 1700s. It was before the industrial revolution and everything was about people.Andrew Mitrak: What was the name of this book?Gabriele Carboni: Yeah, of course it's Italian, Economics Ideas of economists around 1848, about Augusto Graziani. I think one copy may be available in the world.Andrew Mitrak: And for listeners, it's not some reprint. This looks like an original physical copy… very withered.Gabriele Carboni: And I really appreciate the fact that as Italians, we always put people at the center of our business. Before the Industrial Revolution, of course, agriculture was the main business and it was a business between man and environment, which is something we are looking for now, maybe without a good success.The Renaissance and the Ideas of Patronage and BrandingAndrew Mitrak: In our exchange, you also mentioned that Italian humanism has a direct lineage to the Italian Renaissance and that a lot of modern branding practices could be traced back to the Renaissance and Italian humanism. And if you think of things like the Medici family, which is a name that you just hold in such high regard today, centuries later, that clearly there's some branding element there. And I'm curious if you have any other examples or of branding practices that have roots in the Renaissance.Gabriele Carboni: Well, everything in the Renaissance was related to the arts, not only paintings or statues, also music. The point was to give emotion to people and to give a sense of beauty in the cities, in the houses, the castles, even churches, of course, also the church was a very important player of the Renaissance. Everything in Rome, basically, you can see now, aside from the ancient Romans, they are from the Renaissance.I think art is one of those elements you can use to touch the heart of people and when you do that, then people attach to your brand. In that case, the brand was the name of the family or the church itself. And that was a great branding for Medicis, for example, so great that everyone knows who they are even now. If this is not marketing, I don't know what it is.“The Book of the Art of Trade” by Benedetto CotrugliAndrew Mitrak: And from this era, you introduced me to a book called The Book of the Art of Trade by Benedetto Cotrugli.He wrote this book in 1458. And this was a fascinating book to dive into. And it's not a marketing book per se, but it covers business practices that tie into marketing. It talks about accounting, running an ethical business, and professionalizing business practices.He even talks about the importance of merchants to have proper attire and to be well-informed about areas like cosmography, geology, philosophy, astrology, theology, and the law.So the idea of personal branding in a way, if you're a merchant selling something, know things and just be an erudite individual, be well learned, present yourself because you want to come off as trustworthy to your potential customers and then they'll buy your products. So, not exactly marketing per se, but definitely personal branding and certainly salesmanship.I'm curious how you came across the book The Art of the Trade and what takeaways you had from it.Gabriele Carboni: Well, let me say that it's available also in English, so The Book of the Art of Trade, it's actually the title, the English title, so it is available on Amazon or I don't know, anywhere.Andrew Mitrak: It's published long enough ago, it's all in the public domain too, so you can find it free online as a PDF of it, yes.Gabriele Carboni: Good. Yes.Gabriele Carboni: Well, it's good because again, it puts people and environment at the center. I found it because I was studying civil economy, so the economy before the industrial revolution, which is now fancy in Italy, and there are some universities teaching civil economy and one of the books they suggest is exactly this one. It also teaches you how to relate to what we now call stakeholders.So, marketing and business in general is all about relationships. Of course, with customers or potential customers, but also with employees, talents and everything that we now call stakeholders.The Italian EnlightenmentAndrew Mitrak: Moving on from the Italian Renaissance and some of this area, I want to also touch on the Enlightenment, or the Italian Enlightenment. And Enlightenment is very important to you, it's part of the title of your book. You know, we talked in our exchange on email about the Italian Enlightenment and when I as a somebody growing up in the United States, when I learn about the history of the Renaissance Enlightenment, the Renaissance was focused on Italy, and a lot of the Enlightenment tends to focus on the northern countries and if you even if I look at the English Wikipedia page of the Enlightenment today, you see France and Germany and England and Scotland, they're referenced a lot more and Italy's mentioned but it's not quite as prominent there. So can you tell me about the Italian Enlightenment and what differentiates some of the Italian Enlightenment thinking of this period versus some of the other countries I mentioned?Gabriele Carboni: Well, maybe someone will be mad about this, but we didn't have so much of enlightenment because we had humanism way before that. So Enlightenment is kind of a humanism after a few hundred years. Andrew Mitrak: So the Italians were so far ahead of the curve, it's like you had your enlightenment centuries earlier.Gabriele Carboni: Exactly, exactly what I mean, it's my fault if someone is mad I said that. (Laughs)But during humanism people started to read because at that time not a lot of people could read and not a lot of people could have access to books because books were handwritten and mainly people of the church could read and could have those books, aside from some very rich noble people. And then they started to spread ahead some books about also ancient philosophy and that, of course, created a movement that then brought us to the Renaissance and then spread around the world and at one point, they invented the printed books and that helped to spread the word and I think Enlightenment it's something came before the printed books.Andrew Mitrak: The Enlightenment and the Renaissance era might have been captured by some of the handwritten stuff, but the printing press and that changes everything as far as what's available to people and who gets the privilege of owning books and who gets to learn these ideas.Gabriele Carboni: Principles of the Enlightenment are the same that we are reading now in civil economy. Actually, the civil economy was invented by enlightened economists in Italy. And also Adam Smith was a reader of civil economy, but then the industrial revolution pushed everything to profit and product. So we kind of forgot the person, the people and decided to go for the product and the profit.Civil Economy Pioneers: Genovesi and ParadisiAndrew Mitrak: And so this idea of civil economy, which you've brought up a few times, the people most associated with this are Antonio Genovesi and Agostino Paradisi. They wrote and are kind of the thinkers that are most associated with the Italian Civil Economy.Gabriele Carboni: Exactly. Antonio Genovesi was the first in Europe, meaning maybe the first in the world, to have a course at the university about economics. So the first university course in economics was in Naples with Antonio Genovesi. And then Agostino Paradisi, who was born here where I live, it's called Vignola, it's a city called Vignola in Northern Italy, he was born right here and he had the first course about civil economy at the university of Modena.And mainly they put people at the center again, but they gave us something that is now you can now reuse for sustainability, which is the relationship between companies, the government and the community and third sectors. So they already knew that the market it's going to be rich and prosper if companies work with the government and with the community together. They didn't have the environmental problem, of course. That is the main point.The Arrival of “Impact Marketing”Andrew Mitrak: Yeah. So all this tour through history of Italian humanism, the Italian Renaissance, the Enlightenment, all of this, I hope listeners have come along with us on this journey through philosophy and history and thinking, how does this tie to marketing? Well, it all sets the stage for impact marketing. you know, you've spoken about these ideas of business not just being for commerce, but being for people, that everything is kind of all connected and marketing has an impact on everything. So, this area of impact marketing is a specialization of yours. And so in your own words, could you define what impact marketing is and how it differs from traditional marketing?Gabriele Carboni: Yeah, you can define traditional marketing as the profitable satisfaction of needs. It's the short definition, which is the one I always remember, but it is correct. So the profitable satisfaction of needs, meaning marketing cares about profit and customers. Which is kind of a small definition in today's environment.So impact marketing instead is the strategic approach of the company, which relates to the community and the environment to create a positive impact. In this definition, profit is just a result of the positive impact of the company. So this is marketing, impact marketing. So while marketing just cares about profits and clients, impact marketing cares about all stakeholders, including the environment, to create a positive impact, which results in profits.The Evolution of Impact MarketingAndrew Mitrak: Thanks for that definition. And how has impact marketing evolved as a field over the years? Or when do you feel like impact marketing first entered the lexicon of marketing and how is it moved over time?Gabriele Carboni: I defined impact marketing when I was reading civil economy, studying civil economy. Since economics is a big field, I wanted to bring some of the ideas to marketing, which is maybe more modern than economics, at least in my industry. And then I brought those concepts to marketing and it was just a few years ago. More or less during COVID, which was also in some ways the better environment to start an idea like that where we have seen people care more about other people, about the environment and so on.Andrew Mitrak: The reason I'm kind of asking about how it's evolved is these ideas of companies doing good not just for their shareholders, but also for the environment. It's something that I feel like has probably ebbed and flowed over time. And Phil Kotler himself wrote the book Broadening the Concept of Marketing and has social marketing ideas and economists have also pushed back on this over time. There was somebody in America named Milton Friedman and he would argue that the social responsibility of business is to increase its profits and almost like nothing else. And so then there's also ESG is kind of being part of companies as well and there's been almost a push and pull, I think, between companies purely focusing on their bottom line and returns to shareholders and then these ideas of, well, what else can a company be doing as well? And then not just what the company could be doing, but could marketers within that company be doing? And so it just seems like there's always been kind of a push and pull, at least for the last several decades or so, between the social responsibilities and impacts marketing and businesses should have.Gabriele Carboni: I always use this analogy of the butterfly. Companies are like caterpillars: they go from leaf to leaf to find new customers, new profit and to evolve themselves. But they don't know they will evolve into a butterfly. And that's good because caterpillars need to live, to sustain themselves. Of course, the first sustainability is the financial one.And then they evolve. They create the chrysalis, we can say they start recognizing their values and they create this chrysalis with values. And at a later stage, they evolve into a butterfly and they start flying around and they see there is not only that tree with only leaves, they see they are part of an environment and then they discover they can relate to that environment. So this is mainly the concept of impact marketing and enlightened management.Real-World Examples of Impact MarketingAndrew Mitrak: I love that analogy because if we if you think of yourself as a small business, of course, you want to do good for the world, but to do that you have to sustain yourself and earn some profit, so you need to evolve over time to be able to have the full positive impact on the world that you'd like.I'm wondering if you have any examples of either impact marketing in action or businesses that have kind of gone this caterpillar to butterfly journey and started one way but evolved to really embrace impact marketing as they grew. What are some of your examples of impact marketing in action?Gabriele Carboni: Well, of course, benefit corporations. In the US and some other countries like Italy, you can have a benefit corporation. My company is a benefit corporation, meaning as a company it is written that we aim for profit, but also we have some sustainable goals and we need to achieve that year by year and they have the same value as the profit goals. So, for example, my company gives 20% of the net profits to community projects. And that's an example.And we have the B Corps, so those companies, mainly big companies, that are B Corp certified. And many companies, and this is one point, many companies already do a lot of good, they generate a positive impact, but they do not communicate it. And this is very true for small and medium enterprises. They always donate something, they support some community local causes and they do not share the good they do, which can be good. But if you share what you do, then other companies can bring your example and do the same.Andrew Mitrak: Yeah, I think of examples of companies that have done that successfully like there was this shoe brand called Tom's Shoes and they were very popular, probably especially 15 years ago, they were really at their peak or that was around the time they launched and they really brought attention to the importance of shoes for the poor or specifically for shoes in regions of Africa. And there was this idea of buy a pair, give a pair. And that their relatively low cost made shoes but they were sold at a premium price and the premium that you're paying is as a consumer is understanding I'm supporting a good cause, I'm supporting shoes for the world, I'm willing to pay for these and it almost became a social status symbol in a way. Like I'm wearing these Tom's shoes, I'm not wearing some big fancy other designer shoes, I'm showing that I care about a cause and it made, Tom's a more popular brand, it also brought more attention to this issue, and consumers benefited in that they got to wear shoes and signal to others that they care about causes like this.Gabriele Carboni: Yeah. Another example could be Patagonia, which is very well known around the world, maybe the first B Corp. Yes, many big brands like Danone even are B Corp certified and you can read everywhere what they do. I know Danone very well in Italy and they do a lot of great projects for the positive impact.Obstacles to Implementing Impact MarketingAndrew Mitrak: When it comes to other companies adopting impact marketing, what are some of the biggest challenges or obstacles that need to be addressed for impact marketing to be more widely adopted?Gabriele Carboni: Well, it's the mindset. For those who already do charity or are already active in their community, it's to start communicating. Also because customers care more and more about products. Even if it's B2B, they're starting to care about suppliers that care about sustainability. This is also forced somehow in Europe because big companies need to share their sustainable report, for example. But also many companies ask for the ESG rating for their suppliers. And customers prefer to buy sustainable products. So that is one point.Another point is that many companies think that sustainability is a cost instead of an investment. Now we already have a lot of studies saying that sustainability is not a cost, it is an investment and there is a return of investment even shorter than we thought before.Enlightened Management: Impact Marketing for SMBsAndrew Mitrak: I want to come back to your book Enlightened Management and how marketers, especially small business marketers and entrepreneurs can really apply impact marketing from the start. And this book is all about how to take these ideas of impact marketing and apply them for small and mid-sized businesses. I love this area because I've been a small business owner myself, I came from a family of small businesses, my professional work today is about marketing products to small businesses. And I just think that this is a really cool idea of how do you build a business that has social good and thinks about long-term impacts beyond just your profitability right from the start as you're building and founding and growing your business. So why did you focus on small businesses and what are some of the top lessons and takeaways that you have for small businesses and entrepreneurs?Gabriele Carboni: Well, big companies, they have more money and they are somehow forced or anyway invited by governments to do something. So they are already on the path of sustainability at least. And you can also think about Unilever with Paul Polman that brought the purpose at the center of every product. Small companies as said, they usually don't have the mindset or the money to start this kind of new way of marketing and of business. So we tried to give practical advice in the book. There is a whole chapter, a whole part about tools that small and medium enterprises can use.One concept I want to bring you is the concept of the new P's of marketing. So we have redefined the four P's, which are product, price, place, and promotion, of course, thinking about just one P, which is people, to the third power. So it's going to be People X Purpose X Planet, which equals prosperity. It works very well, it's also on the cover of the book. “People, purpose, planet” and P cubed. It works even better in Italian because people to the third power, we say people elevated to the third. I don't know if you say it also in English, but we say elevated. So meaning that people is the person is elevated if they work with purpose and it works for the planet.Andrew Mitrak: I see what you're saying because it's people and to the third power, the three would be elevated on top of it. We don't use that term, but I can visualize exactly what you're describing. Like just another example of the Italian language being much more poetic and pretty than English.The Importance of Purpose and ActionAndrew Mitrak: Are there any other takeaways for marketers and entrepreneurs into really applying this into practice or if somebody is a marketer who's listening to this today and they're inspired by some ideas of enlightened management, what could they do as a daily activity or is there planning their next marketing campaign to bring some of these ideas into their work?Gabriele Carboni: Well, something that was very difficult for me was to find my purpose. And it took me a lot of time. I explained it in another book, but there are those nights you cannot sleep because your brain still works. And I understood that my purpose was to help companies to function differently, to do business differently. This is because my father had a small company and he was one of those who focused on the product. It was a car repair garage and he was always focusing on the car. And the car was perfect, everything was great and you could trust that company that your car was perfect every time. But they forgot about the people who drive that car. So they were always late, they were not treating employees very well. And so I wanted to explain to companies that you can do business differently. So one thing is if you can find your purpose, you wake up every morning knowing what you are doing and why you are doing that. I think everything will be easier.Andrew Mitrak: I can relate, and I think everybody can relate, to those nights as you're thinking, “Am I doing the right thing with my life?” Even when you feel like you're successful, or you had what you thought you wanted, that time passes and you kind of get restless or you think of second guess things. I found that becoming a father and having kids also changed my perspective on a lot of things too. I think about the planet they'll inherit, the types of companies they'll work at, the types of jobs they'll have, and how you want them to spend their time. So it is something that. Thanks for sharing that was part of it because I certainly relate to it and I think listeners relate to that as well.Gabriele Carboni: Yeah. And I always follow Yoda's quote, which is, “Do or do not, there is no try.”Andrew Mitrak: You're totally right and you've exemplified it by asking Philip Kotler to co-author a book the first time you met him, asking the Pope for your endorsement. I think also even for me I relate to it somewhat on this podcast. You think about the things you want to do, the projects you want to do, and you're like, I can think about it, but how about I just do it? How about I just send Philip Kotler an email and see if he wants to talk? And then sometimes he will say yes and the universe pulls you in a direction or gives you a signal that you should keep kind of pulling on that thread and exploring those ideas.We've gotten very philosophical here…I've really enjoyed speaking with you. It's been so much fun going back from Italian humanism, the Renaissance, the Enlightenment. How all of these ideas from 500 plus years ago can impact how we think about marketing, what we choose to prioritize. And also I just loved hearing your stories both about meeting Phil Kotler and Pope Francis and it's just been a really fun conversation.Where can listeners find you online and how can they learn more and support your work?Gabriele Carboni: Well, LinkedIn is the best way to reach me. I always respond also to direct messages, so if you have any questions, just write to me and I'll reply.Andrew Mitrak: Thanks so much for your time, I've really enjoyed the conversation and I look forward to staying in touch.Gabriele Carboni: Thank you very much. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit marketinghistory.org
    --------  
    41:10
  • Mark Tadajewski: Myth Busting, Mind Reading, and Rethinking Marketing's Origin Story
    A History of Marketing / Episode 14If you listened to my first podcast with Philip Kotler, you heard Phil discuss marketing emerging in the early 1900s as a form of “applied economics.” This week, my guest Mark Tadajewski shares research that casts doubt on that version of events, revealing a narrative of early marketing history that is much more complex than the traditional story and veers into surprising, supernatural territory.Mark Tadajewski is Professor of Marketing at The Open University and Editor-In-Chief of the Journal of Marketing Management. He’s a marketing historian that I admire for two reasons: First, there’s his dedication to his research. For the past two decades he’s pored over seemingly every artifact related to marketing history. When you listen to this conversation you can hear how he has an encyclopedic knowledge of the evolution of marketing thought and practice. I’m only a few months into exploring marketing history on this podcast, so speaking with Mark Tadajewski was a humbling experience.Second, there’s his bravery. Tadajewski’s research pokes holes in a narrative that’s endorsed by giants in the field of marketing. There’s considerable professional risk in second-guessing the likes of Philip Kotler. But Tadajewski is unafraid of surfacing what his research reveals, even when it links marketing’s development to fringe topics like telepathy, hypnosis, spiritualism, and other forms of psychical thinking. This podcast is called, “A History of Marketing” not “The History of Marketing.” There isn’t one single definitive story of history, so I enjoy presenting multiple perspectives of marketing’s development alongside each other through conversation.Here’s my conversation with Tadajweski:Myth Busting Conventional Marketing HistoryAndrew Mitrak: Mark Tadajewski, welcome to A History of Marketing.Mark Tadajewski: Andrew, it's nice to be here. Thank you for asking me.Andrew Mitrak: Yes, it's so great to meet with you. When I started this podcast, you were the exact type of scholar I was hoping to meet with, so I'm so glad we had this opportunity to connect. You've thought deeply about marketing's history and evolution and early beginnings and you published a great deal of research around this.Your LinkedIn profile states quote, "I challenge conventional perspectives to encourage a critical examination of marketing thought in the broader political economic environment.” And you've also been described as quote, "the foremost myth buster of marketing thought." What are some of the top myths you've busted or the non-consensus ideas you put forth? How have you sort of earned this reputation for challenging conventional perspectives?Mark Tadajewski: The myth busting thing, I think it's a result of somebody else's paper; [D.G. Brian Jones] a colleague that I worked with a lot actually in the last 20 years wrote a paper called "The Myth of the Marketing Revolution." And you see lots of similar titles to that. And so what I've done basically, whether it's the marketing concept, relationship marketing, service dominant logic, the history of motivation research, the history of marketing education generally, with all of those, I've generally looked at the literature and gone, okay, this is great.But I know from being a bit of a sad character who sat in offices at midnight, looking through the Harvard Business Review from the very first issue and going through everything, this doesn't seem quite correct. And so if I get a sense that there's an argument that I think is problematic, then I tend to start digging a little bit more.Rethinking "The Marketing Revolution": Did the Marketing Concept really start in the 1950s?There's a paper by a guy called Robert J. Keith, published in 1960 in the Journal of Marketing. It's called "The Marketing Revolution." Now Keith's core argument basically is that throughout the history of marketing, what we see is a progression. We've gone from—he's talking about the Pillsbury Company in particular, but he's generalizing his argument to business generally—So he says we've moved through a number of stages. He talks about a production era, which is roughly 1869 to about 1930. Then it's a sales era, 1930 to 1950. Then the marketing era in 1950. And that's where people usually stop. But he also mentions a couple more. He talks about marketing control, about 1958, and he talks about something later called “change.”Now, a lot of people, you know, if you open an introduction to marketing textbook, any of them pretty much, they'll say the marketing concept—this idea that the organizations should be orienting all their activities around the consumer—appears about 1950. I was like, really? You really survived in business, if you're a production-oriented company, just by producing whatever you could and hoping everybody buys it? Or through hard selling? You just sell people as many things as possible. You don't worry about overloading them? You don't worry about telling them fibs because you're never gonna see them again? It's a transactional orientation. You don't expect to see them again in the future, so you can get away with it now.And so what? In the 1950s people suddenly saw this light and went, "Oh, you know what we should be doing? Actually, we should be making things people want." And I thought that just doesn't sound really true.I started reading again some of the other historical papers that have been written in that area and people were contesting it; the textbooks were never picking it up. It was like, okay, this is really interesting.John Wanamaker: A 19th Century Relationship MarketerSo I started writing my own papers on how you should think about this differently. I found earlier examples like, you look at the merchant princes from the 1850s onwards basically.John Wanamaker for example, a really famous retailer, would walk around his store with customers and he would be offering them, you know, whatever sweets or nuts or whatever he was eating and chatting to them really nicely and kindly. And he was really smart because he would give gifts to the children. You know, so immediately you're impressing the parents, the kid loves it massively. And the kid goes away with a really positive impression and when it comes their turn to buy, they come back to you. And Wanamaker's there selling them the things that they actually want.Andrew Mitrak: Wanamaker also has one of the most famous quotes in marketing, which is something along the lines of, "I know that half my advertising is wasted, the problem is I just don't know which half."I gotta do a full episode on Wanamaker because he seems like a really fascinating guy.Mark Tadajewski: His stores are fantastic. But I used Wanamaker to say... I'm dipping about a little bit, but you get the marketing concept, and then you get later developments called relationship marketing that people say appear in 1970. That's complete fiction as well. You know, people have always been interested in long-term relationships.You read Henry Sidgwick, who was somebody that Harlow Gale used to read. He would talk about how people like to find organizations, you know, even in like 1850, that they actually like to deal with because if you could deal with them once and they sold you something great, you could go back and it meant you didn't have to think or worry about who you're buying from. So this, again, none of this was new.But when I was looking at the Robert J. Keith paper, I was like, okay, he says Pillsbury are orienting themselves all around the consumer, that's great, but I know that argument also appears in Percival White's work from 1927, where—and this is a pretty much near verbatim quote—it says, "the thesis of this book is that the beginning and end of all marketing is the consumer." It's like, oh, okay, that sounds very much like Robert J. Keith. So okay, we can critique it on simple grounds. People have mentioned this before.When you look at some of the citations of people mentioning Keith's work, they usually cite a guy called [JB] McKitterick, who actually says in one of his papers—and it's a really interesting thing that should have been the giveaway—you know, [paraphrasing], “People that take their time to read earlier business periodicals will usually find out that most of the ideas that we think are original to us have usually been articulated way before.”Not So “Customer-Centric”: Pillsbury’s Price Fixing CartelMark Tadajewski: So I go and read this material and I knew the history was really flawed. We're trusting Robert J. Keith quite a lot here. His narrative sounds a little bit self-serving. Pillsbury's gone from ignoring the consumer in 1870 to orienting everything that they do around them.I said, well, how can I find out what they were really doing? So I read the histories, that didn't tell me much more.I thought, oh, I know what I can do. I wasn't sure whether this would work, but I knew that the Freedom of Information Act in the United States—there are loads of reasons why you might not want to do this, but I did it anyway. So you basically write to the FBI. And you say, can you send me any information you have on this company, these people? And as long as they're dead or it's a company, they'll generally, depending on whether the information needs to be redacted or kept back, they'll send it to you. And they sent me the file on the Pillsbury Company.And so I was reading this. And as I'm reading this one Saturday morning, I'm sitting there and I've got, you know, bits of an idea for this paper and I'm reading it going, wait a minute. The period when he's saying we're now revolving everything we do around the consumer? Pillsbury was involved with a price fixing cartel, which is about the least customer friendly thing you could be doing, and the FBI were investigating them. And so it traces how they were doing this. Basically they were flying into, I think it was the Twin Cities. They were flying in there.The FBI were monitoring who was traveling, what they were—you know, they were finding out from hotels who had stayed where, what people had talked about. And it seems like they had people that were feeding them information, informants, saying there's price fixing going on amongst these 12 companies. And interestingly, when they confronted senior executives at Pillsbury with this information, they went, "No, no, no, no, no, no. We haven't done this," you know.I probably wouldn't do that with the FBI. Because they're going to find out. And so the FBI keep digging and they do find out substantial evidence that price fixing—basically people have been meeting. You can technically talk about past prices, yeah, that doesn't violate the Sherman Act, which is basically an act that deals with restraint of trade. But what you can't do is talk about even speculatively what prices might look like in 12 months. And that's where they really landed in a horrible bind.Andrew Mitrak: By the way, this is Pillsbury, the company that in America is best known for the Pillsbury Doughboy that goes "tee hee." Behind it are these people who are engaged in a price fixing cartel to undermine consumers.And what year are we in by the way? What year are these meetings happening?Mark Tadajewski: They say—the FBI seem to think it was happening before the period that they managed to investigate it, but they say at least since 1958 and up to the mid-1960s. And the company actually did say, well, this won't have impacted the consumer because even though we control this massive market for—it was flour, the product they were controlling the price of—they said, well, we're only dealing with business buyers basically, flour millers that will buy from us. So we're not actually dealing with the consumer. Which is hugely disingenuous because companies don't often go, "Oh, I'm paying more for this, we'll just deal with that and not pass it to the consumer." Prices, you know, get passed on to the consumer.So eventually, after the evidence was passed to them, in this period that would effectively be where Robert J. Keith is talking about marketing control. Now marketing control in Keith's article, or in later speeches, was basically the idea that the whole of the organization will revolve around marketing and marketing is in charge of all decision making effectively. At this point when Keith's talking about marketing control, they're actually engaged in trying to control the market in a far more nefarious and insidious way that has negative consequences for the consumer.So not only can you contest the history of the marketing concept by saying, well, it appears much earlier than lots of people think it does, and here are all the examples... but also, when Pillsbury were mentally orienting all their activities around the consumer—and they put it like this, "the consumer should be the center of the business universe"—they were actually doing what they could in this particular case to ensure that they maximize their profits rather than delivering, you know, more competitive prices to consumers. And again, you know, you can only study this using methods like asking for information from the federal government.Beyond “Applied Economics”: Psychology's Forgotten Role in Early MarketingAndrew Mitrak: There's an amazing use of the Freedom of Information Act. So I'm starting thinking about all the historical characters I'd like to do a FOIA request on. My first interview on this podcast was with Philip Kotler. I asked him about the origins of marketing and Kotler described it as emerging as a field of applied economics.Mark Tadajewski: Yeah.Andrew Mitrak: And this framing of marketing as applied economics, this is one of those conventional perspectives that you challenge. So what's your take on this description of marketing's origins?Mark Tadajewski: You see, it sounds really plausible. I mean really, really plausible. And again, when you've got people like Philip Kotler or Jag Sheth or Professor Kumar as well actually, in a paper in the Journal of Marketing, saying—Kumar said something like, "until 1945, it was generally accepted that marketing was developing out of economics," and I was like, okay, this is really good.So I started to look and see, well what are the connections here? And people didn't really explain it. And so that was where I was going, well this doesn't—right, so people assert it but they don't really tell me what happened. And when you start to look at what might have been the case, you read Bartels's History of Marketing Thought. And the chapter where Bartels is talking about marketing's connections to economics—something that was explored by a guy called Don Dixon in much more detail—Bartels actually goes, here's what marketing theorists and thinkers could have taken from economics, not what they did, what they could have taken. So it's speculative. And there's about three references at the end of the chapter, so it's like, you know, he's guessing a little bit, it seems.Now that some people have looked at what marketing has taken, Dixon does it really well, and it's been a long time since I've read it. But so I was looking at that and going, okay, the links seem to be a lot weaker. So, okay, maybe we need to be a bit more tempered. You know, we can't just assert marketing developed out of economics. Perhaps there are lots of different intellectual trajectories there. And so that's where I was thinking.And what Bartels actually does seem to suggest more clearly is that if anything, marketing was basically springboarding off economics. In the sense that, here's this fairly abstract science, yeah? Okay, but the marketplace is much more complex. So when you read a lot of the papers around the subject in the early history, what you find are early people that were trained in economics going out to the marketplace because they were aware that their abstractions didn't map onto what people were doing in the marketplace very well. So they do stuff like going into the shops, literally following goods as they were moving from production through to the ultimate consumer to see which intermediaries were adding value, who was important, who was not, where was cost being wasted effectively.So the picture was more complicated. And as I started to dip into this a lot more, it was like, well, okay Bartels suggests economics could have been important, but he also suggests that economics certainly wasn't the only major strand of thought that was influencing marketing thought. And he says psychology clearly is really important because, you know, if you're trying to understand the consumer, then you need to be getting into their mind in some way shape or form through appropriate research, even through introspection.But what I found really interesting about Bartels the more I looked at it, I was sitting there just trying to make sense of this. And he says, what's really, really, really important that psychology's told us a lot about? It's about the power of thought. I was like, okay, that's an interesting angle. And Bartels seems to imply that, you know, there's something there to be looked at. I started exploring, “Well, how's psychology influenced marketing thought generally?” And so that led me to people like Arthur Frederick Sheldon, Katherine Blackford who was a psychologist character analyst, and people at Harlow Gale. A lot of these figures aren't really written about very much in marketing, or if they are, it's very partially explored.And so I started exploring the different connections between psychology and marketing and that took me along, yeah, some really interesting pathways.Arthur Frederick Sheldon: The Correspondence SchoolThe more I looked at people like Arthur Frederick Sheldon and his correspondence course for example, which I wanted to explore particularly the early parts of marketing thought, how psychology and economics were vying for engagement there. And Sheldon in his textbooks basically that he would give to students, was talking about again the importance of studying the consumer and providing them with goods and services that they really want. And he made the really important point that people don't really buy products. They buy the services that the products provide, and people buy services that are useful. But to understand what useful actually means, you need to study the consumer and you need to understand how they might be thinking about a product, what types of goods might be really applicable to them.And you see multiple strands of psychological thought appearing at this time. Now, one of the most problematic, but she published with Sheldon in his correspondence course, was Katherine Blackford, and she was one of the earlier writers on psychology and marketing basically. And she called him—you know, she had a very high opinion of Sheldon and she called him like the equivalent of Shakespeare and he was called the philosopher of selling. He was a really prominent figure.But she was using something called character analysis, and this is never written about in textbooks for a very, very, very obvious reason. It was basically based on physiognomy—so the way people look, making judgments about their intellect by virtue of the slope of their forehead and how far back it goes, that thing—but also phrenology.Now that might be a little bit familiar. It was basically this idea that the brain is this cluster of localized organs effectively. And the more active they are, the more you can feel them, you know, through somebody's scalp basically. Really, really quasi scientific, but it was really powerful at that time. So this whole idea of making judgments about people and their psychology on the basis of the way that they look or the bumps on their head was being explored.Andrew Mitrak: You've talked about Arthur Frederick Sheldon and let's just ground listeners into it. Where are we in history? So who was Arthur Frederick Sheldon? I'm just looking him up here. He was born in 1868, lived through 1935 and within that period, when did he make most of his contributions to marketing thought or why consumers buy things?Mark Tadajewski: Right. Well, he started correspondence school in 1902.Andrew Mitrak: What exactly is a correspondence school?Mark Tadajewski: It's basically like distance learning, but 100 years ago, 100 plus years ago. So people would write to him, they'd subscribe to his school and he would offer discounts for cash, all this stuff to get people to subscribe. And you'd get a course basically, and you get all of these little manuals. In fact I might have one. So yeah, this is what you would get.Andrew Mitrak: So yeah, you're holding up a pamphlet. I see you have your post-it notes in it. How many pages is that?Mark Tadajewski: So the pamphlets, it's quite a small pamphlet, but this is 112 pages. They would be up to like 32 in each curriculum, okay? Again, these are nightmarish to get hold of now.But students would write to him. He would send them these booklets. And they'd have exercises in for people to do. But his whole philosophy of selling as I'd mentioned, it links very much with what Vargo and Lusch have more recently called service dominant logic, and it's this idea that people don't buy the goods, they buy the service that the good provides. And he said to his students, the people that employ you, that you work for, the people that you serve, they're interested in buying the service that you can provide. All everybody ever does is provide service, which is usefulness. So the more you train, the more useful you can be to an employer.Andrew Mitrak: So the students in this school, what are they hoping to get at the end of this program? I've signed up. Am I looking to have a career in sales, am I looking to have a career in advertising, am I hoping to become an early type of marketer? Like what is it that they hope to get out of it?Mark Tadajewski: All of the above. So the people taking these courses are the people that couldn't afford to go to university because obviously universities, you know, it's still the preserve of pretty affluent people or people that are willing to get into a lot of debt to get through it. Now, at this point, you've got universities full of relatively wealthy people and you've got a vast amount of people that are moving into sales oriented trades, working in shops, that thing. So this was like, okay, how can I improve my prospects going forward? Oh, I can take these and I can read them at night, I can upskill that way.And Sheldon would issue a certificate. I think it was—this was really intelligent—it was valid for three years or thereabouts. And every three years if you came back and did the course again, you would be regiven the certificate. So you could train in—you know, it covered salesmanship basically, but it would give all the students basically all the cutting edge buzzwords that they needed. It would give them insights into some of the most advanced thinking of the time, and character analysis and stuff like that was pretty advanced at that point.But he was, Sheldon was a very, very, very savvy marketer and this is something that we can all take from these people. Sheldon was connected to the Rotary Club. You know, these huge amounts of business people that start forming service clubs in the early 1900s or thereabouts, 1908, 1910 onwards. And so his students basically would do these courses, they would generally then get their certificate, they could then say to their employer "this is what I've done," and for a lot of people at that time, that would demonstrate the progression their employers wanted to see. They wanted to see students that were actually engaged and were willing to go home at the end of a day, read these booklets.Now, what was good about the booklets, I mean this is really smart. They not only gave you all the business, sales, marketing knowledge that you needed in a really succinct form and they're really clearly written by and large, but they also gave people advice about health, wellbeing, the types of exercise they should be doing. You know, encourage people to drink a lot more water, avoid alcohol, avoid cigarettes. You know, recommendations like, before a job interview, maybe don't stop at a saloon for a glass of whiskey because that's not gonna look great. You know that thing. But it was basically like a university course in miniature.But universities were incredibly jealous of this material when it started to appear because these courses were selling for relatively limited amounts of money to lots of people. And I mean Sheldon's school went pretty quickly from, you know, a couple of thousand students to 15,000, and then by the time Sheldon dies, it's estimated that he's taught at least 250,000 students across the world.So he was an influential guy.Andrew Mitrak: It's this early distance learning, hundreds of thousands of students have purchased and signed up for these pamphlets, they've read about that and this is years before the MBA program emerges. This is the certificate you can get if you want to be in sales and show to your employer that you have the knowledge, that you're eager, that you're learning about it in your own time and this can help you stand out from other candidates. Was the word marketing used in these books or is it more that it had a lot of the fingerprints of marketing? It just wasn't sort of rolled up into marketing. Or how did marketing sort of fit into the Sheldon school?Mark Tadajewski: A lot of the time they're talking about salesmanship rather than marketing. But marketing as a word has been around since like the 16th century, 17th century maybe, but it's been around for a long time. At this point they're talking a lot about salesmanship, but in a lot of ways that have contemporary resonance.Sheldon's Ideas: Business Building, Relationship Marketing, and Customer Lifetime ValueMark Tadajewski: I mentioned relationship marketing. That's shorthand basically for forming relationships with consumers. Sheldon's whole business philosophy was oriented around what he called business building, which is this idea that once you've got a customer, you want to hold onto them. And so he talks about the permanency of patronage.Now there's a really cool example and this is all information that he's giving to students, you know, who haven't maybe got mentors or anything like this. So this is all really valuable. He talks about basically every interaction that you have with a customer can build and build and build and you can sell them more and more. And so he talks about a young couple who come into a store and they're after a parasol for their baby carrier basically. And he goes, you may or may not make the sale at that moment, but what you've got is information. You've got information that at this house live a young couple who are relatively affluent, who have a young child. And the child's going to grow through these years and you can probably every couple of years sell them something different that's right for their child at that point of development. And the ideal he said—and again this is pretty heavily gendered—is you want to keep the customer until the point when the mother of the family is buying a tombstone for the father. So, you know, when people talk about customer lifetime value, this is...Andrew Mitrak: That's literally customer lifetime value.Mark Tadajewski: Yeah, you've got them from the beginning till the end.Andrew Mitrak: The other thing that you bring up with these Sheldon books is that it's not just about salesmanship, but it's about lifestyle. It's about how you present yourself, how you're healthy.Mark Tadajewski: Well you've got to remember that, you know, it's an early professionalization move because you've got traveling salesmen at that point who are quite well known for living, you know, fairly alcohol infused lives and socializing with people to get them to buy. And Sheldon's point is, no, no, no, no, no. If you want to have a long career and if you want to be the professional individual that you are, this is how you should live your life. You know, you shouldn't tell rude jokes. You should drink in moderation if at all. And he provides exercises that people should be doing as well. And he says, you know, if you do all of the things that I recommend—now, this is a bit dark—you could live till you're 100 years old. Now Sheldon didn't. He lived till he was like 67. So, you know, there's a mixed message there.This has been happening for a long time. And you can understand why because it's great for employers. If you've got somebody that's been through this course, you're going to get employees that know how to take care of themselves. They know about relevant business practices, and you're probably going to get quite a lot of mileage out of them because if they're young and they're healthy and they're engaged and they're not drinking heavily, they're going to stay in your employment for a lot longer. It's not coercive. You know, it's power relations in a really positive way. In other words, I become a great employee by doing all of these things. I live a long, happy, fruitful life that works well for my employer, it works well for the banks that fund my employer's expansion of his business. Everybody benefits effectively. So it's a really seductive discourse.Weird “Science”: Phrenology, Hypnosis, Telepathy, and Psychic InfluencesAndrew Mitrak: There's that seductive discourse that is, you know, overall towards health if you're encouraging people to exercise, not drink or reduce smoking and things like that. But there is also sort of this thread of the weird ideas of psychology. Phrenology you mentioned. What was his relationship to Katherine Blackford? Do they collaborate with each other?Mark Tadajewski: Yeah, it's a complex one. Sheldon basically sought out people that were at the cutting edge of whatever discipline they were at or involved with. And he saw Katherine Blackford—she was apparently a trained medical doctor, there's some uncertainty on this front. But whatever she was, she was extremely well versed in then popular-ish ways of looking and understanding people: phrenology, physiognomy. These were not massively obscure at this point and marketing did a lot to try and beat it out of its early practices.But so he's looking at people like that. But when you read his books, you get a lot of very up to date perspectives, you know, business building, service, all these kinds of things, the importance of market research in different ways. But then there's also really what strikes the contemporary reader as a bit of a shocker, because he's there going, "Oh, and now I'm going to talk about hypnosis and its role in sales." You're like, okay, that's unusual. And then it moves on fairly quickly to telepathy, which in case people aren't familiar with it, it's mind-to-mind communication without the mediation of the ordinary senses. So thought transfer effectively.Andrew Mitrak: Telepathy is having a comeback. There's a very popular podcast right now...Mark Tadajewski: The Telepathy Tapes. Yeah, yeah.And again, what people need to always remember when you look at this material and even in the contemporary present—because there's telepathy being brought back into business through materialist telepathy and you've got brain-to-computer interfaces and a whole bunch of things—it's not dismissing these things outright, but looking at this literature and going, well what were they really talking about?Now Sheldon in terms of hypnotism, he's dead against it, because he's very much of the mind that marketing and sales education or engagement basically with the customer should always be about educating them. It's not about deadening their will, which is how he viewed hypnosis. You know, imagine let's go a bit extreme, the people on the stage that you've seen being hypnotized where they're suddenly, you know, dancing like a duck or quacking or all this stuff.So that's what he's reacting to. It's like the hypnotist is seen to be somebody, like Demare's work, you know, somebody that's got immense power over the person that they're hypnotizing and it deadens the will entirely. Now Sheldon was very savvy because he realized that wasn't a good look, you know, then you don't want to be doing that. So he's very critical of hypnosis, but very positive about telepathy. Right?And so this makes a lot of sense when you start looking at the intellectual foundations underpinning it. So he's using a lot of the material from a guy called Prentice Mulford, who talks about mind-to-mind communication in his own way. And also a guy called Thompson J. Hudson who wrote a book where it was all about psychic development basically, but he talked about the self as divided into the objective self and the subjective self. Now what this should be telling a lot of people is the idea that the conception of how Sheldon and people at that period were understanding who we are and how we act and how we think is way more complicated than a lot of the early literature tells you. It just tells you if you read EK Strong's work from the 1920s, it just talks about consciousness. It doesn't talk about the strata of the mind or anything like this.And Sheldon's drawing upon this literature. He says actually there's effectively a subconscious and a superliminal consciousness. And that material feeds into the discussion on telepathy in the sense that the subjective self that Sheldon's actually referring to were seen to be the conduit for where our memories are stored, is the facility that enables telepathy effectively. And it will eventually become—you know, the subjective self is also defined as like the most suggestible part of who we are. They often split the self into two brothers. The objective self being the smart logical one who doesn't take other people's opinions without extensive critique, the rational part of our mind. And the subjective self is the brother that's been left in charge of the business that's not really that skilled at it and is ripped off by sales and other people who can tell them basically whatever they want.So Sheldon's there using all of this material and he says, well, the literature on telepathy suggests that this is actually very productive. So he explains how you can think about using it in your own business practice and he basically encourages the neophyte salesman to be as sensitive as possible, so that you can sense when the psychological moment in terms of making the sale is there before the consumer themselves is actually aware of the moment. And he says, and you can do this through telepathy. And this is going to, you know, 250,000 students."Telepathy" in Sales: Literal Mind Control or Enhanced Sensitivity?Andrew Mitrak: And if I was to steelman telepathy or try to take it as seriously as I could. Obviously there's reasons to be skeptical of telepathy, but if I also think of all of the sort of unconscious communications and there's what's spoken but then there's—if I'm a salesperson, there's how I present myself, how I dress, how I greet you, all of the things that are like non-verbal communication that can influence somebody. How products are packaged, how they're presented, the idea of desires and keeping up with your neighbors and all of the irrational thoughts that we have.All of that to an early thinker who's trying to find new words for it could think of that as telepathy in a way? Or it's something that's magical that's hard to quantify. Was that what was influencing this word of telepathy or do they literally mean like, I'm going to use brain to brain transmission of thoughts and stuff? Was it sort of that first sense or more of like that literal sense of how we think of it today?Mark Tadajewski: Both. Yeah, so in other words, all the things that you mentioned about appearance, your knowledge of the products, your ability to engage with people, a lot of that was associated with being personally magnetic. You know, having some charisma that would engage people, being interested in their interests and trying to discern what would most appeal to them.But they go beyond this, quite considerably beyond it in some cases where it's very much not only do you need to know about the consumer, but in an ideal sense, the person interested in telepathy should—or the salesman that's thinking about using it—you know, wants to find themselves a nice quiet location where they can visualize the consumer they're trying to target and try to imagine them in their life and what they're doing at that moment and send, you know, whatever messages you're trying to convey, literally project them. One of the examples is, try and imagine the person that you're seeing like they're at the end of a long tube and that will help you funnel your thoughts towards this person. I know, I know how this sounds. But they took it deadly seriously.Now, when you read William Walker Atkinson's work, who's similar in orientation to Sheldon. Atkinson's there going, well, you know, we might not be successful the first few times we try telepathy, but you've got to practice this and there are lots of ways you can practice it. And he basically gives people exercises to do. So you know, there's a phenomenon called the sense of being stared at basically, and you may or may not have experienced it yourself.Andrew Mitrak: So this is the idea of if I'm at a restaurant and somebody across the restaurant is looking at me – or if I'm observing somebody else, there's some sense that you know you're being watched. Is that sort of the idea?Mark Tadajewski: Yeah, and that was one of the exercises that he recommended to try and enhance your psychic sensitivity. You know, to see whether you can make people turn around when you stare at them from the back. And there's a lot of this. You know, like trying to justify telepathy by going, it's a bit like wireless telegraphy. So you see people like Mark Twain talking about this, Samuel Clemens. So they give them lots of examples about how to do it.But what you seem to find is that there's a date often given for when there's a shift away from these arguments. And it's 1912, it seems to be. And so William Walker Atkinson in particular, who's similar in orientation to Sheldon, in his work in particular, in the early literature you see him very occult oriented. You know, "Here's hidden knowledge that I'm imparting to you as a student," that thing. But later on he suddenly reverses. He suddenly says, actually no, people aren't taking psychology seriously because we've tied it too closely to the occult, to telepathy, to all of these kinds of unusually esoteric knowledge that people, particularly business people aren't seen to take too seriously. So he reverses and moves away from those perspectives. But, you know, irrespective of where you look, again, I got tons of this stuff lying around.[Holds up booklet] So for people that can't see that, that's a booklet on Practical Mind Reading by William Walker Atkinson.Mind Reading and Sales Management: The Impact of “New Thought”Andrew Mitrak: What year was Practical Mind Reading published?Mark Tadajewski: This was… 1906.Andrew Mitrak: And so what's the relationship between this and early marketing? Practical mind reading and early marketing? What is the connection between the two?Mark Tadajewski: Well William Walker Atkinson, who was a very astute promoter of this literature, so he would write on really occult subjects and also really sales managerial stuff, because his background—he worked in his dad's retail store at a greengrocer as a child and then later became a lawyer, when that career didn't flourish in the way that it was intended, turned to a lot of this material.And they're all—all of these people basically at this time, they're all very much immersed in a literature that's called New Thought, okay? This is not sales or psychology that's necessarily underwriting a lot of what they're thinking, it's New Thought, which is the idea that thought, the way we think generally, has an ontologically powerful role in the world. In other words, our thoughts can shape reality. That to some people may sound a bit like, you know, the book The Secret or the Netflix film.Where it's like, "Oh, you know, if I treat the universe like it's a vending machine, I can manifest whatever I want." You hear this stuff everywhere. Now they cite a lot of the New Thought literature, but what they do not tell you in The Secret in other places, which William Walker Atkinson and Sheldon do is, yeah, you know, have your subjective dreams, have your wishes, mobilize them to actually get out and do something in the world. It's basically a way of encouraging people to be optimistic and, you know, people that didn't have the financial backing that other people had to go, "Well I can do something with my life," and it was meant to encourage them.But they said, okay, your practice as a marketer or a salesperson or whatever hinges on subjective realization—having those dreams, having those wishes and mobilizing them—but then objective realization. In other words, your subjective wishes will come to absolutely nothing if you don't go out into the marketplace and work really, really, really hard. The “work really hard” stuff's forgotten from The Secret. Everything just appears for people in The Secret, money and parking spots and all this stuff.But so that's what they're all working with. And so that literature gets very occult. They start talking about how the unseen world—and by the unseen world, I mean dead people—can help you and can give you energy and can help you generate your ideas and get them out into the marketplace. And it seems very, very occult, but it's—and a lot of it is quite esoteric, but it has a really optimistic undertone, which is, okay, life may have dealt you a really nasty deck of cards, but let's go into the world with our best foot forward and here's how we can make a success of ourselves. Positive thinking, being enthusiastic, being engaged with people, reading this literature that was meant to improve you, enhance your sales presentations and skills and engagement and healthy living. In other words how you can actually do something really successful with your life. So that's where a lot of them are coming from. And they'll take any scientific perspective that they think will advance their interests to do so and it was, you know, hence the number of students, very successful.Harlow Gale and Psychical Advertising ExperimentsAndrew Mitrak: So continuing down this sort of unusual branch of marketing, one name that you brought up earlier is Harlow Gale. He's a relatively little known person today, but he lived from 1862 to 1945 and you wrote about him in a paper called "Rethinking Harlow Gale: the psychical influences on his contributions to advertising and their enduring reverberations." So can you share with listeners who was Harlow Gale and what were his contributions?Mark Tadajewski: Gale, really challenging figure. I mean really challenging in the sense that he was supremely smart and also very forthright in terms of pursuing views that he felt were correct. So he had a very short academic career effectively. He was basically forced out of his institution. I think it was a really short span of time; people can find it in the article. But Gale's an interesting character because he was a member of the Society for Psychical Research. Now the Society for Psychical Research study things like telepathy, clairvoyance, apparitions of the dead, all of these kinds of things.Now Gale becomes interesting in the sense that he's known as an experimentalist in advertising, one of the earliest. What people don't get from previous studies on Harlow Gale is the fact that before he becomes the experimentalist in advertising, he was actually going to seances and all these kinds of things where he's looking at people that are trying to make other groups think in certain ways and he's very interested in what they're saying, what they're understanding.But when somebody's there saying "I can see, you know, God or Jesus or the saints in front of me," Gale was noticing how these dynamics operated in the seance context. And Gale goes, "What's the unifying thread here?" It's suggestion. These people are all being encouraged to see the saint, to see—in one case it was a floating vegetable above somebody's head—you know, all of these kinds of things. And so Gale's there going, okay, this tells me something about human nature effectively, that people can be very suggestible.Gale's immersed in the Society for Psychical Research, their literature, especially F.W.H. Myers's work on the subliminal consciousness, and what Gale will call the multiplex self. Now that just basically means as intelligent human beings, we're both intelligent, we're also suggestible, but we also have a superliminal consciousness and a subliminal consciousness. Note the term. I'm not saying unconscious because even your subliminal consciousness was believed to be processing data constantly, okay?So it's a really sophisticated view. Think: if I go to sleep and I dream about a work task, the dream can sometimes provide the solution if your brain's relaxed and it's thinking in different ways.Now Gale's bringing all those ideas to his advertising work as well. So he's studying his students. And he goes, okay, I'm going to mail practitioners, see what advertising media they use, how they promote their goods. And I'm also going to get my students to look at some of these adverts as well because I'm interested in, you know, what gets their attention effectively when they look at an advert. Is it the text, is it the imagery?Now, what he's trying to identify there is, right, not everybody will be affected by advertising in the same way. Some people will be much more critical and uninfluenced than others. There will be some people that can't articulate why an advert or why a particular brand or why a product influences them at all.That was his cleavage point for trying to theorize how the subconscious plays a role in advertising interpretation. His argument—and this is where we have to give him loads of credit because it's really early on—was if somebody can't really explain why they bought a product, maybe they've been influenced at a subliminal level, and that's the influence that's going on there. Now subliminal and subliminal self, this isn't framed as a negative thing. It's not Hidden Persuaders. Gale's just going, there are other ways for us to be absorbing information and making sense of it.Now, Gale's work really can only be understood if you combine the background in the Society for Psychical Research with his studies in advertising. That in short is what he did. But when you read earlier studies, they would just mention, "Here's Harlow Gale, published on advertising, did this, did this," and published in a journal called the Journal of the Society for Psychical Research.But nobody decided for whatever reason—and I'm not judging anybody—nobody went, "Well, that's an interesting journal." And when you do start to dig into the background you go, okay, he's making sense of human suggestibility in these contexts and he's studying people in seances, he's studying people that are claiming clairvoyance, seeing distant sights way beyond what you can see literally in front of you. And so he's trying to explore whether some of these things exist or whether there are other dynamics in play. And the dynamics that they come together on is some degree of suggestibility that gets in below our conscious analysis basically.Walter Dill Scott vs. Harlow Gale: Reframing Subconscious Influence as “Suggestion”Now, the difference between him and Walter Dill Scott: Walter Dill Scott really doesn't like psychical research at all. He thinks it's something that is making psychology look ludicrous, in other words. Now Scott was publishing a lot on psychology and was well connected to the business community. And so he was explicitly trying to demarket psychology as he understands it away from earlier psychical perspectives. Now the turning point for him seems to be, he goes home to visit his family and a friend of his goes, "Wait a minute, why are you studying psychology? Why would you be interested in all these occult weirdnesses?" And he seems to take that really to heart because when you read his books, he's there going, "You know, this is all medieval superstition." Doesn't engage with the literature like Harlow Gale who has been a member of the Society for Psychical Research, read all of the literature, undertaken experiments himself, been really involved with all the key figures in it.Walter Dill Scott, 1869 –1955And so this seems very odd. And my point when I was looking at Walter Dill Scott's work was, okay, this is interesting. What you get here is you go from a multiplex interpretation of the consumer—this consumer who is stratified, so you've got subliminal, subconscious, it's a multifaceted consumer—to Walter Dill Scott who just goes, no, the consumer's not—he doesn't say multiplex, he just goes they're duplex. In other words, they can be rational and they can be suggestible. But most people are—and this is where we're problematizing the notion of economic man in a really big way—most people aren't rational at all. We like to think we are, but most of us are really the creature of suggestion, he argues. Now that's a perspective that's really common at the time.But Scott is there, so Scott's there going, psychology is not psychical research. People are influenced by suggestion much more. And he dismisses psychical research as superstition, doesn't engage with the work. And for me, my point in looking at the transition between the two was, Scott's there claiming he's a scientist and yet he completely voids any engagement with the scientific method. He doesn't read the literature, he doesn't make a rational reasoned interpretation of it and critique of it.He just goes "this is medieval superstition" and dismisses it. So the idea is that psychology as it's imported and incorporated into marketing isn't necessarily stretching our critical faculties, in other words. When it's introduced at that point, it's introduced in a really, really unscientific, uncritical way. That's why I wasn't a big fan of Walter Dill Scott's work. He had a huge impact, but Gale was more interesting.Andrew Mitrak: On Walter Dill Scott's biography—so born 1869, lived until 1955. He was the president of Northwestern University, wrote a book called The Psychology of Advertising in Theory and Practice in 1903, and continued to write about the psychology of advertising. He was a professor of advertising and psychology. So an academic clearly held in high regard as president of Northwestern, early thinker in psychology and advertising.But the quibble with him is not so much whether telepathy and other sort of weird parts of advertising were wrong or not, it's more that he dismissed them just because of all of the baggage that they carry, or that there wasn't a critical analysis of it. He was more, "Hey, just call all that stuff suggestion instead." Is that sort of the right way to think about it?Mark Tadajewski: That's pretty much it. But you know what the really hilarious thing was? Walter Dill Scott—remember I already said to you that Sheldon was very critical of hypnosis because he saw it as deadening the will—Walter Dill Scott taught suggestion by hypnotizing his students because he was a trained hypnotist, who was really highly skilled. So the way that he would teach them would be to say, "What do you think of this product?" and it would be like, you know, some soap or something. And it would smell horrible, or perfume. And he would say "It smells—you think it smells really sweet," and they would say it smells really sweet. And he would say to their students, "You see, this is what suggestion is. Of course, of course though, business people don't hypnotize like this, but they do engage in suggestion," which of course is meant to limit the way the consumer's critical of your offerings.But you know, he's an interesting character but he's full of contradictions. But he was really smart in the sense that he went, spoke to practitioners, wrote really easy accessible books for them. And then every time he rewrote material he would introduce case studies where people had applied his ideas from his earlier books and he would summarize them. So in other words, you got theory, you got people that have used the ideas and here's how they benefited from it. So he was super astute. And again, I'm not dismissing his contributions, I'm just saying if you're going to claim to be scientific, then it would be nice to see you actually apply the scientific method when you critique something.Fom AIDA to the AIDAS Model: Sheldon's Lasting Impact on AdvertisingAndrew Mitrak: Just to recap. We've talked about A.F. Sheldon who had a massive influence on marketing especially because of the sheer volume of people that he educated through his correspondence schools in the first half of the 20th century.Mark Tadajewski: His impact was huge in the sense people that you've spoken to have mentioned the AIDA framework: Awareness, Interest, Desire, Action. Well Sheldon said, yeah, that's great, but remember we're trying to create the permanency of patronage. You don't just get people to buy your product, they've got to be satisfied because if they're satisfied they then become confident in your offerings and come back. So the AIDA model was transformed into the AIDAS model with Satisfaction being on the end. So he actually impacted advertising theory in a really substantive way as well.Why Was This History Lost? An Accidental Omission or a Deliberate Burial?Andrew Mitrak: That's right. So Sheldon is impacting advertising theory. Gale has this sort of unusual strand of thinking where his work has touched on clairvoyance, telepathy, spiritualism, and he's also one of the first experimenters in marketing and advertising. There's this whole body of work in the early 1900s that is these weirder things that are sort of lost to history. The question is, why was all of this lost to history? How did it sort of get buried in the history of marketing?Mark Tadajewski: You know, history's written by the winners by and large. And people like to tell really progressive narratives about themselves. You know, when I refer to the Pillsbury narrative earlier, it's a really progressive narrative that suggests marketers have gone from this point to now being much more enlightened. And it doesn't look great to be looking back on your history and go, okay, we talked about phrenology, we talked about telepathy, we talked about hypnosis, and there's a lot of occult material embedded in all of this. That's not a great look in an introductory textbook.So I think a lot of this material disappears because one, the material's really fragile, that disappears. It's not saved, it's not scanned by a lot of people. And then, you know, as these narratives like "marketing's applied economics" get repeated, they just become a—you know, I don't mean this in a rude way—but they become a shortcut to thinking. You know, so it's like, well that's that history and that's what I've got to teach. I don't need to think about it anymore than that. And it can become, you know, it smothers critical thinking effectively. But we're all guilty of it, you know, in lots of areas of our lives. We have to just assume that what we're being told is correct.And that's really it. History's written by the winners and a lot of this stuff is written by people who have been written out of history in lots of different ways.Finding Marketing History Through Foucault and the Cold WarAndrew Mitrak: I want to ask you what initially drew you to marketing as a field?Mark Tadajewski: The honest answer is, it was really the only first subject, you know, that I really enjoyed. I really didn't like school full stop and then I got to college. Not college in the American sense, college in—I was 16 and I'd failed most of my exams, so I went to the local college where they helped me a lot. And I took a business studies course and it was the first time things seemed to drop into place, you know, and it was just fluid for me. So the minute we got to marketing in that course, I was kind of—it was just really interesting. I really enjoyed it. And of course, the minute you enjoy something, you just immerse yourself in it, so you improve much more rapidly anyway. And it was off the back of that really.And then I very luckily went to a great university where I did political economy and politics, but then as a master's degree, I went to the University of Leicester and did an MSc in marketing. And there were some amazing scholars there. And again, this probably makes me look really shallow, but I went to see the professor of economics who was the head of the school at that point. And I walked into his room and it was just—it looked like an Amazon depot. It was just crazy books everywhere. And I just thought this is so cool. This guy just sits and reads and thinks and lectures and writes papers. I mean, what an amazing job. And I was like, okay, this is interesting.And he was really good. He'd recommend readings to us every week and I was that student—I always get to lectures and stuff really early because I always dread walking in late. And I'd be there like an hour or two before the school opened because I'd go on the train. And I used to sit and read all the material he'd recommended, which I didn't think was unusual. I just thought I was doing the right thing. And he used to say, "Oh, what do you think about Coca-Cola's valuation?" or something like that. And I'd have all the figures because I've been reading Kellogg on Marketing that he'd been flashing up the week before. And so, you know, we'd developed a bit of rapport and he said, "Well, we've got, you know, a PhD program." And I went, "Well I'm broke," which has been the story of my life at least up to that point. And he said, "Well we can figure something out," and he got me onto the program and I was surrounded by really, really talented people who basically gave me a lot of freedom to do what I wanted. And that's really unusual. So I was just incredibly fortunate in so many different ways.And when I got to the PhD program, they said, "Well, what are you interested in doing?" One of the people that supervised me was an organization studies theorist. No, I wasn't supervised by marketing scholars. And they said, "Well, do you like history? What do you like?" you know, thing. I said, yeah, that sounds good. And they recommended certain readings. They told me to go and look at Michel Foucault's work in particular. Really prominent French theorist who writes books that scare everybody to death. My supervisor, he was a really smart guy, his name is Campbell Jones, and he said, "Well here's a book called The Order of Things and it's about all these transitions between different disciplines and how they change. Oh it's the scariest book you'll ever read." And he said, "Could you do something like that?" And I went—because you don't want to say no—I went, "Yeah, yeah, sure, sure. I'll give it a go." And that was my introduction to it. We didn't have any formal training in terms of studying the history of marketing. Didn't know anybody that had really done it. So I just started reading and reading and reading and it started from there basically.Andrew Mitrak: You found marketing when you were around 16 years old then. Yeah. And it was this Foucault example that sort of led you to dive deeper into marketing history. Yeah. Where did you start? You have this assignment, you have this big ambitious goal. What do you look for first?Mark Tadajewski: I was really interested in how people come to think in the way that they do. How does our world become taken for granted? And so I knew that there've been lots of studies on the development of marketing, but very few of them had actually really linked them to the political, economical, social changes going on. There'd been a few papers but very, very, very few. And the reason is because it's really hard to do and it requires a lot of leg work. So I went, okay, that's something I could do.So I started to dip into, you know, looking at the history of the business school, looking at the development of marketing and then going, okay, what important turning points have we maybe not paid much attention to? And one that hadn't at that point really been noticed particularly—because I'm talking about 2002 at this point—was the Cold War. I was like, okay, this clearly had massive ramifications, you know, 1947 to 1990. How did this impact on marketing and the business school?And so I started reading around it generally and I chanced upon a—it was a book review and it was in the Journal of Marketing and it was a book called Philosophical and Radical Thought in Marketing that was being reviewed. And the person reviewing it was a guy called Hal Kazanjian. Could be pronouncing that very badly wrong. Sorry Hal. And in it he talks about how, you know, philosophical and radical approaches to marketing, this is really cool, this is really different. But he goes, you know, previously we wouldn't have done it. He doesn't really explain in a huge amount of detail why not. So because I've never really had a filter where this stuff is concerned, I just emailed him and said, "Why? What does this mean? Can you tell me?"And he went, yeah, yeah. He goes, "Well, you know, at this point in time, of course there's a really virulent anti-communist movement." And he said being called liberal was bad enough. But if you so much as looked a little bit, you know, much further left leaning, then it became a real issue. What was scary enough when you started to dive into this in a bit more detail, it was enough for somebody to point at you and say "This is this guy's political economic orientation. He's a fellow traveler or he's interested in reading left leaning newspapers," and it could get you into a world of trouble. And Hal said his doctoral chair, the person on his committee, hadn't been very quick to sign a loyalty oath, you know, basically saying "I'm not a communist, there are no weird views being espoused here," and that was enough to get him basically, I believe, fired, ruined his career, had severe implications for his life.The Cold War's Chilling Effect: How Politics and Funding Shaped Marketing AcademiaMark Tadajewski: What I started finding the more I dug around this, this wasn't unusual. So you'd see people turn up at lectures that you were doing, you know, at that point and you wouldn't know who they were. There were just two or three people stood at the back. It was external monitors evaluating what people were saying. And did you—in other words, were you being critical of the United States and its stance and its political economic system? Were you mentioning Russia too frequently? Were you mentioning it in a positive way? And if you did, there'd be serious consequences for you.Now, at an individual level that sounds scary enough, but this was a fairly widespread phenomenon at this point in time as I started to find. And so I was there going, okay, there are lots of individuals that are being affected quite negatively by this. You hear about McCarthyism and you know, everybody gets the image, you know, it's real red scare terror and going after people in Hollywood, but also really badly in the university. And so I was like, okay, here are individuals being affected, but where are the institutional shifts? Are there bigger factors in play?And I noticed that the business school was being criticized for producing overly descriptive research. The staff were being criticized because they didn't have PhDs generally. The students weren't seen to be very good. And so at this point it's like, okay, they suddenly start to get a lot of funding from the Ford Foundation in particular, which is a big philanthropic organization. That's an interesting link.And what I noticed was that the Ford Foundation and the Carnegie Foundation and the Rockefeller—the big three they're called—they were focused upon by a number of really prominent government committees, you know, in the mid to late, I think it was the 1950s, but in a big way. And what the committees were focusing upon—so there was a report in 1952 and I think another one in 1953—they said, okay, we're looking at the philanthropic foundations and their funding and they seem to have been supporting social science in quite a big way. And so they'd been looking at racism, inequality, how they can handle some of those issues basically. Now the big problem was that the label social science, for a scary number of people, was conflated with socialism or some form of social philosophy.And so you've got these foundations who are very powerful, very affluent being targeted by the government effectively. And they're there going, "Oh no, no, no, no. No, we're not. This isn't a social philosophy. In fact, what we've been doing if you look carefully is by studying some of these issues, we've basically been looking for ways to relieve the pressure in the system." You can get a sense of the desperation. And so they thought it very appropriate to suddenly twist their funding a little bit, to start funding something that would be perceived to be ideologically neutral or preferably a big support for the US political economic system. The business school was an ideal candidate.Ford Foundation's Role in Promoting "Behavioral Science"Mark Tadajewski: [The Ford Foundation] poured a lot of money into this, into the business school generally in an effort to upgrade it. In other words to make the business school, the research that was being funded, the people that were being trained, as scholarly, scientific, as objective, as neutral, as behavioral scientific as they possibly could. Now you'll hear a lot of people toss about the label behavioral science. That wasn't developed off the back of academics coming together and deciding that that was the label that fit what they did. That was a label that the Ford Foundation actually coined and then said "This is what we're funding. Do you fit into this specialism?"Now they funded lots of business schools, but lots of individual professors in particular. One name that I'm sure you've heard before, in fact I know you have: Wroe Alderson was given a visiting professorship because his research was very interested in improving marketing management and in improving executive decision making, a lot of his work in that area. But also people like Philip Kotler.Philip Kotler received money for computer simulation. Again think: computer technology enhancing executives and their decision making ability, very ideologically neutral, very positive in other words. And then, thinking about Jag Sheth. Jag Sheth mentioned in his discussion with you that he'd been connected—well he was obviously connected to John Howard. John Howard was funded in multiple different ways by the Ford Foundation because not only did they fund institutions, training programs, individual scholars, but they wanted to fund textbooks because how do you get this vision of what marketing and business research should look like out to as many people as possible? You produce textbooks.Now Howard—the first book he did, it was something like, I can't remember the title of it off the top of my head, but the first book that he produced, Marketing and Executive Behavior or something like that, was funded by the Ford Foundation. The second one was a book called Marketing Theory which was a general version of the first book that he produced. And then the third, that material fed into the Howard and Sheth book that Jag was talking about. So the Ford Foundation's fingerprints were on a lot of this material. And a lot of the mathematical specialization that you see growing in the 1960s developed off the back of the Ford Foundation and their training programs in advanced mathematics and statistics.Now, pretty much any big name from the 1950s, 1960s, 1970s either came in contact with the seminars themselves. Kotler was at one for example. Kotler's a very skilled mathematician, and the first edition of his textbook was much more mathematically oriented but he was told to revise it because it didn't have enough pictures, quote unquote, which I thought was cool. But so you see then, they funded these really prolific researchers and you had to be, you know, somebody that they thought was super talented, highly likely to be very research productive. And people like Kotler, Perry Bliss, John Howard, they all fit that mold, and they did end up making huge contributions. So Ford's money went a long way to turning marketing into the positivistic, managerial, quantitatively oriented discipline that it is by and large in lots of countries. And that's really a result of the Ford Foundation's funding. And that you can trace back to the Cold War. And so the way the discipline looks isn't just a natural occurrence of scholars coming together. It's tied firmly to political and economic factors and the need for scholars at that point in time to be pledging that they were in the fight against communism effectively, which, you know, it's understandable, isn't it?Risks of Researching Marketing's PastAndrew Mitrak: Researching the history of marketing, it requires a lot of legwork. And I think that's for a couple of reasons. One, you're researching the history of ideas and there are certainly physical outputs like advertising or public relations things or textbooks where you have a physical record that's written and captured in some way, but a lot of those things, they can be ephemeral. They sort of disappear. Also you're studying the idea of thought, which is an organizational structure which may not be captured in the same way. So are those the reasons why it requires a lot of legwork to study marketing history or are there other factors at play that make it a particularly difficult or labor intensive field to study?Mark Tadajewski: Well it's high risk, you know? Because when you've got a lot of people saying, here's the way the discipline developed or here are the core theoretical traditions and this is how they've developed. You've got to go, well, that seems reasonable, but I think there's something more there. And you have to, to some extent trust your gut and then start to go digging around. And you can go down lots of blind alleyways and that kind of, you know, if you're going to do that as a PhD student, you could run up to the time that you're actually allowed to do research for and you could get nowhere, so it's really risky.But you're right, getting hold of a lot of this material. In fact I've got—I'll show you this—getting hold of stuff like this is really tricky. This is from 1906 I think this one.Andrew Mitrak: And for listeners who are listening and not viewing, can you describe what you're holding there?Mark Tadajewski: Yeah this is The Business Philosopher which is the journal that Arthur Frederick Sheldon published. So if you were subscribed to Sheldon's correspondence school you would get a collection of these where you get an annual subscription to The Business Philosopher, you get all of his other books as well. But material like this, you know, you can see it's very flimsy. It's over a hundred and something years old now and to get hold of it's hard enough. But to get even earlier versions of the course is tricky because there are earlier versions.And again, to find this material you've basically got to go, okay, here is all this received wisdom. I don't think this is correct. I don't think this is correct. I don't think this is correct—which could make you sound extremely egotistical. Right. But it's also incredibly dangerous as a researcher because if I'm saying, "No, I think everything all of these really established professors have said before me is wrong," and you're this newly minted PhD student or new lecturer or new assistant professor. I mean you're on really risky territory. So it's really tough. So you've got to be in an environment that encourages it, which is rare in itself. You've got to be very lucky in terms of actually getting to the end point with this project as well. And you've got to find journals that will publish it, which is really tricky because a lot of the very high profile journals don't tend to engage with a lot of historical research. They'll say things like, "Okay, this is great, but how can we operationalize this to improve management decision making this, this or this?" So there are a lot of factors that can discourage you basically.Andrew Mitrak: History can be debated, history is political, history's all sorts of things. That's why I used a hedge. I called my podcast A History of Marketing—not The History because I always felt like the definitive article "the" puts a lot of weight on it. I'm like, you know what? “A” history, I have no skin in this game. I just want to hear everybody's ideas, learn everything I can and so this is “A History of Marketing.”Mark Tadajewski: You know on that point, I think it was my external examiner for my PhD who told me—he was a reviewer on a paper I'd submitted to a journal and I think I'd called the paper at that point, "The Something, Something, Something." And he said you really need to change it to "A" or—because I was running out of how many times you could use "A," I was putting "Towards a History," you know, like everywhere you could.Learn More from Mark TadajewskiAndrew Mitrak: Mark, I'm sure a lot of listeners are interested to learn more of your work and dive deeper into these strands of marketing history. Where would you point listeners to? How could they learn more about your work and what of your published articles would you point listeners to?Mark Tadajewski: I would probably go to LinkedIn and then look at my academia.edu page. That's where I can upload a lot of the material that I've written. Start with whatever grabs your attention. That's the best way to approach any of this material because if you're not interested in it, it's not going to stick or resonate with you. So, yeah, find what you like and I hope you enjoy it.Andrew Mitrak: I certainly enjoyed it. Well, Mark, thanks so much for your time. I really enjoyed this conversation.Mark Tadajewski: My pleasure. It's been really, really nice to talk to you. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit marketinghistory.org
    --------  
    1:09:20
  • Louis Stern: Marketing Channels, Power, and Conflict
    A History of Marketing / Episode 13"Place" might be the most often overlooked of the four P’s in the marketing mix, but it encompasses channels and distribution. Power dynamics and conflicts between companies (and sometimes within them) shape how products reach their customers. Few have influenced our understanding of marketing channels more than Louis Stern. Lou is the John D. Gray Distinguished Professor Emeritus at Northwestern's Kellogg School and the namesake of the American Marketing Association's Louis W. Stern Award, which recognizes contributions to marketing and channels of distribution.Lou is also the author of books including Marketing Channels, Management in Marketing Channels, and Marketing Channel Strategy. Lou drove renewed interest in channels by bringing a fresh perspective. Where prior researchers saw channels as logistics and warehousing, Lou viewed them as dynamic systems governed by power and conflict. Lou brought these insights to clients of his consulting practice which included IBM, Ford, and Johnson & Johnson.Listen to the podcast: Spotify / Apple Podcasts / YouTube PodcastsThis conversation explores the evolution and strategic management of marketing channels, covering:- How channels evolved from analysis of physical places to corporate strategy- IBM’s consumer PC launch and its failed attempt at operating retail stores- Whether sales or marketing should own distribution- And much moreNow here’s my conversation with Professor Lou Stern.The Two Critical Issues of Channels: The Amassing of Power and Resolution of ConflictAndrew Mitrak: Dr. Stern, thanks so much for joining us.Lou Stern: You're welcome. Good to be here.Andrew Mitrak: Is it okay if I call you Lou?Lou Stern: You sure can.Andrew Mitrak: So, Lou, how would you describe your career in marketing to somebody you're meeting for just the first time?Lou Stern: Well, I followed a path that not a lot of people do follow. I focused on a subject called marketing channels, but I did it in a very unique way.Andrew Mitrak: Before we get to marketing channels, how did you get into marketing as a general field to begin with?Lou Stern: When I was an undergraduate, I took a course in industrial organization economics. Part of that course had two particular readings in it. One was by a professor at Harvard by the name of Joseph Palamountain, and it was called The Politics of Distribution. And it was fascinating. It dealt with the battle between automobile manufacturers and automobile dealers, and how the dealers coalesced in order to make sure that the manufacturers didn't overwhelm them.The manufacturers were in the mode of overwhelming dealers, and so the dealers felt they had to protect themselves. It also dealt with other industries in which similar battles were taking place. So that was one thing that really sparked interest.The other was by Kenneth Galbraith, a very famous economist. He wrote a book on countervailing power. The focus was on how retailers square off against manufacturers in order to be able to protect their rights, their properties, and their way of doing business. So those things combined to spark the fire.As I became interested in marketing channels and got deeper and deeper into the subject, it became obvious to me that the field was really dismal. It was dismal because it was descriptive. It was telling stories of how retailers did things, how wholesalers did things.And it was focusing on such wonderful topics as, "What's the difference between a one and two-story warehouse?" That has to spark all sorts of fervor in the hearts of men!I kept saying to myself, how can I make this field much more interesting, particularly for myself? I had no interest in going out and describing the functions of warehouses. I had an interest in having an intellectual pursuit that was something that would stimulate me, but also stimulate all kinds of young scholars coming along behind me.I discovered that two critical issues in channels were the amassing of power, which I already looked at in industrial organization economics, and the resolution of conflict because there's all sorts of conflict in channels of distribution. So that led me to all sorts of doctoral students who became interested in the subject, and the rest is kind of history.Elevating Marketing Channel StrategyAndrew Mitrak: It sounds like when you were in school, it was almost approached from a mathematical sense, but what you found was that there are all these interesting power struggles.If you look at a company, how those companies interact with other companies, there are different points in a value chain and distribution where somebody's trying to take more.Companies face all these decisions: do I work with this partner or that partner? Do I build it myself? And these are all strategic questions that companies make when it comes to their marketing channels and distribution.Lou Stern: Absolutely. And I would talk to executives about my perspective of channels – how to look at them, how to manage them, how to figure out how to go to the marketplace, how to work with different kinds of distributors. I developed a kind of a framework for that, and I found that they really loved it. They were really enthusiastic about it. The business world ate it up.They said, "That's where we live, that's what happens to us." We need to be able to understand how to work with these strange people, whether they're suppliers or shippers, or retailers, or manufacturer's reps, or whoever they were.They needed more schooling on how to look at it, and they needed more schooling from about 30,000 feet. They get so wrapped up in the minutia of channels – and believe me, anybody that's worked in that area in a company understands that – they needed to be able to stand up on high.Inside IBM's PC Launch and Brief Retail ForayLou Stern: So, for example, I got a call from an executive with IBM, and they said, "Professor Stern, we've got an issue that we'd like to discuss with you. We are bringing out something called a personal computer in a very short period of time, and we don't know quite what to do with it."They knew what to do with it from the point of view of how it functioned, technologically, what it was, but they had very little concept of how to bring it to market.So they asked me, would I work with them and a consulting firm in Chicago to answer the question? My response to them was, "I wouldn't know a personal computer if I fell on one!”Right? I have no concept. I surely don't know how to use anything like that.And they said, "We'll teach you. We'll come up to your place. We'll spend three days with you and teach you how to use the personal computer, we'll give you one, as long as you're willing to spend some time with us and help us think through this issue."And that was real fun. That was a magnificent time, and we worked together so that they learned how to work with dealers – ComputerLand, Businessland, all those guys sitting out there.They at one time said, "Should we open our own stores? Should we have IBM stores?" And I said, "If you do, I'm going to throw the computer out the window." I said, "Don't touch it. You guys don't have the mindset to be able to work at a retail level."IBM did open some stores, but then they closed them almost immediately. So at any rate, that's the kind of fun stuff that I got involved with.Andrew Mitrak: What an iconic company for such an important time in history.Who Should Own the Distribution Channel: Marketing or Sales?Andrew Mitrak: I want to ask you about this example because your books and literature are on marketing channels. Were you working with a marketer at IBM, or was it more of an operations executive or a finance executive? Sometimes these companies didn't even have marketing teams yet. So I'm curious, who was your sort of main point of contact and who were you working with?Lou Stern: That's a great question, Andrew, because most people don't realize what the answer is. Marketing channels is probably... I don't think an advertising executive in a corporation would know a marketing channel if he fell on one, okay?Marketing in most corporations – it may have changed some since I was involved – has to do with advertising, product design, all the other Ps, promotion. It doesn't have to do with place or distribution.The salesforce owns distribution. It's a selling function. I don't agree with it. I believe it's a marketing function. I believe that marketers have to be the people to determine what happens, because all of these things have to be coordinated. You don't just have a marketing channel for the sake of marketing channels; you have one because there's a product that has to be developed and thought about to some extent as you think about what channels it's going to go through.So the issue is, sales owns it. They shouldn't own it, but they do. And because a salesforce orientation is focused strictly on making sales, they don't think strategically, because they don't get it. And IBM at that time was a salesforce. The salesforce dominated the whole corporation.Andrew Mitrak: Yeah, if I was to think of IBM up to that point, they were probably selling mainframes, which at that time took up a whole room in an office building. It's a very one-to-one salesperson meeting with an individual company or individual buyer. Maybe they're buying one, maybe they're buying a set for a number of their offices, and it's a very manual install.When you're launching a PC, it's a personal computer, that's a mass-market product, or supposed to be a mass-market product, and you're dealing with a larger scale.I think of one way to split marketing and sales: sales is usually more of a one-to-one process, marketing's more of a one-to-many process. If you're IBM going through a retailer like ComputerLand or precursors to Best Buy, you're finding the right channel, the right retailer to reach scale, which is very different than selling a mainframe to a company.Lou Stern: That's exactly correct. They had a mainframe mental set, and of course, I was not involved with the mainframe end of the business. But figuring out how to use this kind of new consumer product was a real shakeup for them, and they tried very hard to learn what it would take to be much more marketing-focused than they had been in the past. It wasn't that they were at all a bad company; they were terrific. It was just that they were not used to this new world of marketing channels run the right way, so to speak.Marketing Beyond Promotion: Channel Focus on How Customers ShopAndrew Mitrak: If I had a job description for a channel marketer today, the assumption would be that this person's a digital marketing channel manager. They do our emails, they do our website, they do our search engine optimization. Maybe they're doing our paid media. And it's all very focused on the promotion of those four Ps, and it's not thinking about product or thinking about place.Do you know when that happened? Was there a time when marketing was a little more holistic and less focused on promotion? That doesn't sound like it was the case as much when you were developing marketing channels?Lou Stern: I suspect that the emergence of Amazon was a hammer that smashed into the heads of many, many folks. The key to getting this focus, to incorporating marketing channels as a mainstream marketing issue that you must take into account just as you take into account products, promotion, and price – the key to it is something that you do all the time in advertising. And that is focusing on the customer, focusing on the end-user.You have to define your end-user, and you have to then do research to determine how the end-user – whether it's a corporation, or an individual, or some other entity – how that corporation or person likes to shop.Everybody shops.And so the question becomes, how do they like to shop? Do they like to shop online? Do they like to shop by going into stores? And it isn't where they want to shop, it's how they want to shop.There are attributes of shopping. That is, some people need rapid delivery, some people want to see variety. Some people have other issues that are of concern to them as they think about purchasing something. And that focus – the focus of how your customers want to shop – is the key to the kingdom.And what you know from everything else you learned about marketing is that there isn't one customer. There are lots of customers, and there are lots of customers that fit into segments. So you've got all sorts of different segments out there who like to shop differently.Oh, wow, hello, right? So eureka! You've found it!So then the question becomes, how do I deliver those shopping attributes? We call them shopping behaviors. How do I deliver on those? What kind of folk can I employ that will allow these people to shop the way they want to shop? And that's a marketing thing. It takes segmentation-type research.And then once you've determined how people want to shop and how you'd like to reach them, then you have to manage the thing. Once you set a channel up, you got to manage it, just like you would manage a corporation. Only you may not have the power. Someone downstream may have the power.You want to try to tell Amazon how to operate? Good luck! Right?!You won't be able to. But you'll be able to go to Amazon and say to Amazon, "I have found out how customers of yours like to shop for my products. And I want to work with you to enable you to be able to give them what they need." It's a total different mindset. Okay, and that's marketing.How Lou’s Textbook Sparked Marketing Channel Theory & ResearchAndrew Mitrak: You wrote the book, Marketing Channels. I think the first edition was in 1977. What change in thinking did that present, and how did companies and academics respond to it?Lou Stern: What that book did was it gave people who were interested in the subject a vehicle to use in teaching. There was nothing before that, really.I shouldn't say nothing, there was one book I think, but it wasn't exceedingly popular. But this gave them a kind of a research vehicle. And what I mean by that is it laid out an approach to the subject, which they could then use in their research in attempting to write articles that would be published in learned journals.So it evolved a whole area – for a while it was relatively hot – called inter-organizational relations and relationships between companies, and then eventually it evolved into something called relationship marketing. Relationship marketing is how do you deal with people – both your customers, your suppliers, your middlemen, whatever, salesforce – how do you deal with them and work with them so that the relationship can be effective? All of this came spawned out of that book. It gave them something as a framework.And what has to happen is that you have to have theory in academia in order to be able to test it. So if you have a theory about make or buy, that's a big issue. Do you do it yourself or do you get somebody to help you? And there is a wonderful theory called transaction cost economics. It was developed by Ronald Coase at the University of Chicago, Nobel Prize winner, and Oliver Williamson at Berkeley, Nobel Prize winner. They were different eras. Coase started it, Williamson advanced it.And what transaction cost economics basically says is that it is the transaction costs that make you decide whether you ought to buy or make, whether you ought to vertically integrate your channel of distribution, own the outlets – that IBM question, right? Should we go into the business of retailing or not? And Coase and Williamson argued it's determined by the level of transaction costs, and transaction costs are influenced by the state of opportunism in a channel.Put bluntly, how much are they going to screw you when you deal with them?How opportunistic are they? Do they simply look for their own interests and are they willing to take steps to promote their own interests against yours?That's a very key point because the more opportunism there is, the more transaction costs elevate. So that said that the book, the textbook and the issues that I was trying to address to the whole field – power, conflict, relationships, all of that stuff, trust, you can think of all the issues that go with it – they became fodder for academics.Breaking Silos: Why Channel Strategy Requires System ThinkingAndrew Mitrak: As I was reading your book, a few things came up for me. I realized I, as a marketer, have such a bias towards thinking about one company or my own company or my own product or my own brands.When you're on a marketing team, whether you're leading it or a cog in the machine, it's so hard to get even a team aligned around the brand, the growth strategy, the messaging. And when you introduce another company or another partner or another organization, it gets even more complicated.I have this bias towards thinking single-company. If you ask me to describe a marketing job, I'd probably describe somebody working for a single brand or a single product.When you wrote this, did other marketers also have that bias, or did this change that for people to think a little more not just about a single company, but about how multiple companies interact with each other to bring something to market? Did that shift thinking in some way?Lou Stern: Well, anybody that certainly came to my class walked out of the room with that perspective, right? But the idea of relationship and thinking in that term is a pretty difficult one to swallow. It's hard to put it into effect.You often have to go through the salesforce, and the salesforce is not generally intellectually oriented. It is difficult to make that case when they feel that the distributors are simply sitting in yachts, smoking cigars and living a life of Riley. They have a terrible bias against downstream people.So, in many cases, it's the great salesman that understands that they're dealing with the system. And in order to be able to deal with the system, the parts have to fit together, and the more they fit together, the better.Look at Walmart, who's changed their perspective a lot over the years. Their first perspective was to beat the hell out of suppliers, and that's what they did. And I think that what they've learned, especially in their relationship with Procter & Gamble, is that they've learned how to make a system out of their relationship, and they made it a win-win situation for both of them.Further Reading on Modern Marketing ChannelsAndrew Mitrak: Lou, this conversation's been a lot of fun. I'm so glad we were able to do this. If somebody is learning about marketing channels for the first time or has listened to this and wants to learn more about your work, where would you point them? What would you suggest?Lou Stern: I suggest they get a hold of the ninth edition of my textbook. I'm no longer writing it, but my name is on it. The lead author is a guy by the name of Rob Palmatier. He's at the University of Washington. He is a brilliant guy. It's something that you can read and enjoy parts of it. Just skim around and read what you want.But don't forget, it's power and conflict that's going to determine whether you're going to win or lose. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit marketinghistory.org
    --------  
    26:31
  • George Day: Market Driven Strategies, “Where to Play and How to Win.”
    A History of Marketing / Episode 12“My philosophy about the marketing function is that it's the interface between the organization and its markets.” - George DayThis week, we’re joined by Professor George Day, a renowned author, educator, and researcher. Day is the Geoffrey T. Boise Emeritus Professor at the Wharton School of the University of Pennsylvania, where he founded the Mack Institute for Innovation Management. Day co-authored Marketing Research with David Aaker and V. Kumar, who were previous podcast guests. However, Day perhaps best known for his work on strategy. We spend most of this interview on his 1990 book, Market Driven Strategy: Processes for Creating Value. Listen to the podcast: Spotify / Apple Podcasts / YouTube PodcastsMarket Driven Strategy was a breakthrough because it shifted the focus from a company’s internal capabilities towards an outside-in, customer-centric approach. While newer strategic frameworks have emerged, you can trace many of them back to the ideas popularized by Day in this book.Now here’s my conversation with Professor George Day.Foundational Work in "Market Development"Andrew Mitrak: George, thanks so much for joining us.George Day: I'm delighted to be able to share my story and reflect on the history of marketing strategy—or what I would call strategy from a marketing perspective.Andrew Mitrak: Sounds great. Well, let's start with the early days of your story. You started as a mechanical engineer at the University of British Columbia. And in less than a decade, you were teaching MBA students at Stanford's Graduate School of Business about marketing. So how did you go from engineering to marketing?George Day: It began when I started as a junior engineer in a chemical plant, as an operating engineer. I decided that was arduous and painful, so I talked my way into the Market Development Group. I joined the Market Development Group as part of the R&D Group. They were trying to find applications for the products they were developing. We had a lot of capacity to produce hundreds of products, so my job was to find markets for them.Andrew Mitrak: A product in search of a market. That sounds like a fun, challenging line of work.George Day: I transferred to headquarters, and the day I arrived, they fired my boss. So there was a two-person Market Development Group, and I was the lead person. I had to learn a lot very fast.Talk about the blind leading the halt. I was thrust into an environment and a job which I really didn't understand, was certainly not prepared for. Because with an engineering degree, I was focused and rigorous.I think a lot of my perspectives came from the questions I asked and the inability of the senior executives of the chemical company to answer them. I decided then, to understand better the situation I was in, I'd get an MBA, and that was a really transformative experience.Andrew Mitrak: Were there any professors or mentors during that time that shaped your early views of marketing?Early Influences: David Leighton and John HowardGeorge Day: Yes, I encountered an enormously influential figure in my life, who I consider a mentor: David Leighton, who subsequently became chair of the American Marketing Association. To illustrate his capacity, he also was asked to be brought in to run the Canadian Winter Olympics, and then became the chairman and managing director of the Canadian government library, symphony, and museum.So Dave influenced me and encouraged me to go on and get a doctorate. That's when I went to Columbia. I had a Ford Foundation fellowship that I could use to pretty much talk my way into most schools. I went around and interviewed three or four schools and selected Columbia, largely because of John Howard, who was a rigorous, leading-edge scholar. He had an enormous influence on Jagdish Sheth and also on me.Andrew Mitrak: I talked to Jagdish Sheth a few weeks ago, and he spoke about his collaboration with John Howard on developing the theory of buyer behavior. What was your relationship with John Howard, and did you have a chance to collaborate with him on any of your research works?George Day: Jagdish at that time was a research assistant or associate of John Howard's, had gone to work with him, and I came in as a doctoral student into the doctoral program. It happened that I worked very closely with him and ran a big research project which we called the buyer behavior project. It was a major research collaboration with the General Foods company.So I spent a lot of time on that, and that's where I learned a lot of my research skills.The Analytical Edge: Engineering Meets MarketingAndrew Mitrak: And did you find that having this engineering background gave you a unique perspective on marketing? Were you sort of an odd person out with an engineering background, or was that more common?George Day: I think the engineering background certainly helped me because in the PhD program at that time at Columbia, there was a real emphasis on rigor and statistics. So that was pretty easy for me. My dissertation was on continuous time, discrete state stochastic models in marketing. If you can follow that, don't ask me any questions.Defining Market-Driven Strategy: Where to Play, How to WinAndrew Mitrak: I want to jump ahead to 1990. This is when you published Market Driven Strategy: Processes for Creating Value. When we were emailing in advance of this show, you mentioned Market Driven Strategy is a good place to start because that book represents your views on the scope of marketing strategy. So, can you share with us, what is the scope of marketing strategy?George Day: Marketing strategy— there are various ways to define it. I take an expansive view as the answer to the two classic strategy questions: where to play and how to win. Those have been the bedrock questions for all companies throughout time.But market-driven strategies advocate starting from the market and your previous commitments—that's the nature of your capabilities and culture that shape both the choice of customer value proposition and choice of service market. I think ultimately the core of marketing strategy is how to achieve customer value leadership and continuously innovate new value that customers will pay for.The other side of it is the companies that win—and I take a strong competitive advantage approach to it—but a lot of my subsequent work over the last 20 or 30 years has dealt with the ability of companies to foresee trends, events, and opportunities. These often come about as weak signals that are flickering out there on the periphery of the organization, and the winners detect and act on those weak signals faster than anybody else. A selection of books by Day: Market Driven Strategy (1990), Advanced Introduction to Marketing Strategy (2022), Market Driven Organization (1999)At the core of an innovation discipline is the ability to foresee trends and events that create great opportunities or possible great threats and position yourself to capture them ahead of any of your rivals.Bridging Academia and Practice Through ConsultingAndrew Mitrak: I love how you frame it as "where to play and how to win." As I was researching this book and your work, unlike a lot of books on marketing strategy that can feel kind of esoteric and abstract, this one feels really grounded in real-world business applications. How much of this was sparked by your academic research versus being informed by your experience hands-on consulting for companies?George Day: That's a very insightful question, and the answer is both. I am a product of a case background; I use a lot of cases. At the time I got my degree at the University of Western Ontario, that was strongly influenced by the Harvard Business School emphasis on cases. I love cases. I love teaching cases, and the cut and thrust of the dialogue debate in the classroom is really energizing.I take a little detour there so that you can understand how I came about and developed my consulting practice, which was largely as a leadership facilitator. I had probably maybe a hundred engagements where a company would come in, and I would only work with the division general manager or the CEO. That was my client, but we would agree that it was my meeting. And so I treated them as live cases.My job was to identify the critical issues and get everybody on the leadership team to agree these were the top five issues, and then come up with an action plan. We would not disband—stop the meeting—until there was a detailed action plan assigned to individuals with dates and times when they would deliver it. I made myself extremely unpopular by dragging meetings out until I was satisfied and the CEO was satisfied—you're not going anywhere. But more importantly, Andrew, these were ultimately live cases.Marketing: The Interface Between a Business and its MarketsAndrew Mitrak: So these live cases you were consulting with—these are some of the best-known companies in the world: AT&T, Ford, Nike, IBM, Cisco, Coca-Cola, Best Buy, JCPenney, Wells Fargo, dozens of others, I could go on. You mentioned that you were often working with the full executive team, not just a marketing department, but your main client was the CEO. Even though you're known as a marketing professor at Wharton, and 'marketing' was in your title or focus, this market-driven strategy was much beyond the scope of just the marketing department in an organization. You were working with the whole leadership team?George Day: Oh, absolutely, the whole leadership team. No, I take a comprehensive, integrated view of the organization and how it can compete in the future.Andrew Mitrak: So back to market-driven strategies, you write about some of the common misconceptions. The first that you cite is that some people misinterpret it as being reactive to the market. I'm going to quote your book here:"The real gains from being market-driven come from anticipating market opportunities and getting to them ahead of rivals."So to be market-driven, companies can drive the market and even create new markets where they didn't exist?George Day: You mentioned the distinction between market-driven and market-driving. To me, that's a distinction without a difference. A market-driven organization is constantly looking over the horizon—maybe out as far as three to four years—and trying to anticipate from the market back what the big threats and potential opportunities are.My philosophy about the marketing function is that it's the interface function between the organization and its markets—defined by collaborators, competitors, customers, and consumers. One of my jobs as a facilitator, going back, was to force them into looking at their company through the eyes of their customers and competitors. I would get them to role-play their major competitor. I would flip the script and have, for example, the chief operating officer take the role of his counterpart, ditto the operations manager and the marketing director and the CEO. They all got into their roles, and then I would get them to play out a role as though they were the leadership team of their major rival and think about the moves they would make. That's an example of outside-in thinking.Andrew Mitrak: That sounds like a lot of fun. Often on a marketing team, I take a somewhat similar approach of trying to role-play being a customer that uses a competitor's product.George Day: That's precisely it. Andrew: One of the other misconceptions that you write about regarding market-driven strategies is around adopting a customer focus. You describe customer focus as a necessary but not sufficient condition. It doesn't mean giving all of your potential customers everything they could potentially want. You write, and I quote, "Market-driven firms achieve superior profits by selectively nurturing the customers with the highest profit potential."George Day: Exactly. So there are two aspects to what I consider to be a market-driven strategy: that is, think like a customer and always benchmark yourself against your major competitor. I consider customer value to be a relative concept.Andrew Mitrak: Right, exactly.George Day: The customer picks the one that delivers the most value, whether it's price value, relationship value, quality.Understanding Customer Needs: Beyond the "Faster Horse"Andrew Mitrak: Right. I'm reminded of that Henry Ford quote that might be apocryphal about, "If I had asked customers what they wanted, they would have said a faster horse." Somebody could read the title of Market-Driven Strategy without reading the substance and taking the message, "Oh, you have to think of the horse market or think of how to build the fastest one." We're not realizing—well, truly being customer-centric is understanding the job to be done, understanding what it is they really want at the end of the day, and building products that satisfy their needs, even if it means going to a new market or building a new product.George Day: Exactly. Yes, it's adopting the customer's perspective.The Role of Path Dependency in StrategyAndrew Mitrak: One of the themes of the book and your work more broadly is this idea of path dependency. Can you elaborate on this notion of path dependency and what it means for marketing strategy?George Day: We are dependent on our past choices. There's the old saying, "past is prologue." We are constrained by our past choices—our culture, our capabilities, where we've been, and the market positions. But those are also strengths that we can leverage and adapt. So the ultimate question for all organizations is, what's coming next? And how do we position ourselves with our capabilities and our culture to capture the value that's created?Case Study: Sonoma County WinegrowersAndrew Mitrak: When it comes to market-driven strategy, and when you first released and published this book, did you have any favorite stories of companies that adopted this mindset and successfully implemented market-driven strategies to turn their product lines or their business around?George Day: I have lots of those stories, but I'm going to jump to my favorite long-term client. I have been running a think tank for Sonoma County Winegrowers. Sonoma County Winegrowers was my laboratory to put all these ideas into play.Sonoma is the second largest wine-growing region in the world after Bordeaux, and it's enormously complex. So I'm looking at all the strategic issues that affect them: regulations, the changing political climate, changing markets, distribution methods. Obviously, immigration and worker policies are huge. Now we're working with the president, who's a real visionary, in designing the farm of the future.I'll frame this aspiration as part of the overall perspective on strategy. Strategy is about the choices of markets and directions, but it's also about your level of aspiration and ambition. Their ambition is to be the Silicon Valley of farming, using advanced technology, mechanical pickers, on and on. We have a lot of advancements in generative AI because if you put a sensor in every square meter, that's an enormous amount of data. So I love looking over the horizon and saying, "Okay, what's coming next? And how are we going to prepare for that?"Andrew Mitrak: By the way, I love that example because you're taking wine, which is one of the oldest consumables ever, but you're talking about applying generative AI to it, applying robotics to picking. The innovation story in the market strategy portion of it just never ends.George Day: Yes. You absolutely hit the nail on the head there.“Market-Driven Strategy” in the Evolution of Business StrategyAndrew Mitrak: So when you look back on Market Driven Strategy, where do you think it sits within the evolution of business strategy overall? Because as I was researching it, for me, it felt like a direct predecessor of The Innovator's Dilemma by Clayton Christensen. You talk about the idea of market leaders and their “advantage erosion” from new entrants, which sounds a lot like disruptive innovation. So I guess where do you think of it sitting within the overarching arc of how business strategy has evolved?George Day: I see market-driven strategy or strategy from the outside in as interchangeable terms that reflect on the progress of the organization in satisfying its multiple stakeholders, including anticipating technology changes. I knew Clay [Christensen] pretty well, and it was a tragic loss when he passed away. But I think market-driven strategy is a much broader concept than disruptive innovation because it certainly feeds it and is a valuable perspective, but technology trends and developments are only one factor in the evolution of a strategy.See Sooner, Act Faster (2019)Further Reading: See Sooner, Act FasterAndrew Mitrak: Well, Professor George Day, thank you so much for sharing your experiences and wisdom with us today. The time just flew by. I wish we had more time together. Where would you direct listeners who want to learn more about your work?George Day: I wrote a subsequent book with a colleague of mine, Paul Schoemaker, called See Sooner, Act Faster that is really literally a manifestation of outside-in thinking. Not only does it require you to take the perspective of competitors of various kinds, but also to understand market evolution and position the organization. Ultimately, it's all about leadership. That's perhaps the defining message of my experience.Andrew Mitrak: George, thanks so much for speaking with us. I had a lot of fun.George Day: Well, I hope we can continue this conversation. Thank you, Andrew. I really appreciate you taking the initiative to do this and bring us all together. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit marketinghistory.org
    --------  
    23:12
  • Giana Eckhardt: The Origins of Branding in Imperial China
    A History of Marketing / Episode 11When and where did modern branding really begin? The usual narrative suggests it started during the Industrial Revolution, when the UK and the US began mass producing goods.This week, we’re challenging that story with my guest Giana Eckhardt, Professor of Marketing at King's College London, whose research reveals sophisticated branding practices thrived in Imperial China centuries before the Industrial Revolution.Early examples of Chinese brands like the "White Rabbit" show how sophisticated targeted marketing and brand symbolism are much older than originally thought. We also explore Eckhardt’s work on The Rise of Inconspicuous Consumption and analyze how conspicuous and inconspicuous consumption have trended over the 20th and 21st centuries, with cameos from Marty McFly and Larry David.----------------Challenging the Traditional History of BrandingAndrew Mitrak: Giana Eckhardt, welcome to A History of Marketing.Giana Eckhardt: Thank you for having me, Andrew.Andrew Mitrak: So the typical narrative is that modern branding originates from the Industrial Revolution. But you have research that shows that branding practices date way back further than that, all the way back to imperial era China, more than a thousand years ago. Before we dive into this research, could you give a high-level overview of what the traditional version of this story is?Giana Eckhardt: What you'll read in every branding textbook that's used with MBA students, for example, is that yes, there are examples of the place origin of where something was from that exists in antiquity. So in other words, if you look at a vase or something that's been found in an archaeological site, it may say the name of the country or even the region from which it was from.But in terms of modern branding practices, which basically refers to the symbolic uses of brands to say something about who you are as a person and being much more identity focused, that first came into being around the Industrial Revolution. So in the 1800s and typically the UK and the US are the places that are referred to where modern branding practices originated. So this is things like brand mascots, for example. The first brand mascot is Bibendum, who represents Michelin tires.Andrew Mitrak: I didn't know he had a name.Giana Eckhardt: He does. Bibendum, yeah. So things like elements where the brand starts to become anthropomorphized. Consumers are willing to pay more for something because it has a particular name on it. All of those types of things originated around the Industrial Revolution and are typically tied to capitalism.Discovering Branding's Ancient Roots in ChinaAndrew Mitrak: So if the traditional story is that brands emerged out of the Industrial Revolution tied to capitalism, when did you start to second guess this version of events?Giana Eckhardt: I did my PhD research in China and what I was doing it on was the symbolic uses of brands in China at the time. And so I have some really, really great stories, which we can talk about some other time about how brands, which were brand new in the 90s in China like McDonald's, what they came to mean in a culture that was so different. But during the process of being over there and doing the research for my PhD in the late 90s, I started to realize that there were all of these brands that were way, way older than that. Meaning like millennia older than that. Using very sophisticated and symbolic uses of visual images or textual words that you can see in brands from basically the Song Dynasty, which is around 900 BC onwards.Andrew Mitrak: When you say you saw these and found them, how literally did you see them? Did you see them in books? Did you see them at museums? And like what was that aha moment where like, hey, this actually, this looks like branding and this predates the Industrial Revolution by millennia. What was that “aha” moment like?Giana Eckhardt: Yes, there are brands in museums actually, which you don't really see in a lot of countries outside of China. So that is definitely one place that I saw them. There have been books written on this, although in Chinese only. So we worked with some different people to help us translate a lot of what these ancient brands actually said. And also, some of the brands from that time are still around. So Tong Ren Tang, which is a pharmaceutical brand, for example, still exists now. And the white rabbit, which although not for needles, it's used for candies now, but in terms of a branding symbol from then is still used now as well. So they're still around.Early Branding Practices in Imperial ChinaAndrew Mitrak: As you came across this research, what led you to dive in and start to publish literature to correct the narrative and change the story? What drove you to this as an area of interest to keep pursuing?Giana Eckhardt: I've always been interested in Chinese culture and philosophy in general. And so I think when I realized that all of this had existed, and although it had been written about in Mandarin, it hadn't been written about in English, I really wanted to bring that knowledge to the canon of what people read in the West.Andrew Mitrak: Let's talk about bringing it to the canon in your article, A Brief History of Branding in China. What were the earliest traces of branding practices that you came across and shared in this article?Place Branding: The Changzhou Comb and Maotai LiquorGiana Eckhardt: Yeah, so place branding, so in other words, calling a product by the region in which it's from, is one of the oldest branding practices in general. And in China, we can see this as well. The Changzhou comb is a particular style of comb that was made in the region of Changzhou. And so when people wanted combs that looked like that, they just started calling it the Changzhou. Which one do you want? Oh, the Changzhou comb. And eventually, it became a brand in terms of like a legally protected brand, etc. But at the beginning it was not. So early branding practices of the place brands evolving into more symbolic brands is definitely one.Andrew Mitrak: This is so interesting because today we see place brands all the time. There's Kentucky Fried Chicken, there's Fiji Water, there's Philadelphia Cream Cheese. Almost every sports team is a place brand as well because it's tied to a city or an area. And how did a region become associated with Combs?Giana Eckhardt: Well, that's where they were made. That style of really brightly colored and having a person on the comb. Again, things that aren't necessary from a utilitarian standpoint, that was only happening within that one region. And there are a lot of other products that are similar to that too. It was very organic. We tend to think of branding as something that is very intentional, right? That it's something a company is doing or maybe a country is doing, branding itself or whatever. But it's very intentional and actually, if you look at a lot of these older brands, they just evolved into the brand rather than having it be a managerial decision.Andrew Mitrak: Yeah, and another place name example that you cite is Maotai liquor. And I thought it was so interesting to see a liquor example given that we associate alcoholic beverages with the region so much, whether it's breweries and microbreweries or macro breweries like the Rocky Mountain Coors lights and the macro beers of Michigan or the scotches of Scotland and the wines of France and of Napa. But here you have Maotai liquor as being associated more than a thousand years or so before modern day liquor brands evolved and it's a region known for its liquor. So I just think that's really fascinating that this seems like an organic way for a brand to emerge.Giana Eckhardt: Exactly, and you have to support it as it grows. You can't just leave it there to continue that way organically. For Maotai liquor, the key moment was when Richard Nixon went to China in the 70s. That was the first time that a US president visited since the Communist Party had come in charge. It was the first time that a US president had been invited. And when Nixon arrived to China, he was served Maotai. And all of a sudden the brand became so famous. Oh, what is he drinking? What is that? It's still very difficult to get Maotai outside of China now. So it's not like it had a huge boom in terms of sales after that outside of China, but it definitely had a boom in terms of brand recognition.Andrew Mitrak: Let’s go back to Imperial-Era China, well before Nixon’s visit. Let’s say we’re in 960 AD or some time like that, and I'm looking for a product. What is my experience of branding in these early days? If I'm or if I'm a merchant selling a product, what are the forms of branding? What are the primary functions that it's serving? Because this is outside of capitalism as well. So like who is involved in creating brands and who is involved in purchasing and identifying brands? What does that look like?Giana Eckhardt: It often stemmed from consumers themselves wanting to have a way to be able to find the same thing of the same quality that they wanted the next time. That's the Changzhou combs, right? How do I know that this is going to be made in the way that I'm looking for? You need some sort of language in which to explain that, right? So consumers would oftentimes come up with their own names, like which sometimes were place brands, but some sometimes weren't.The government also as well. The government realized that this was a way to help regional development. And also, in the same way that in the UK, the royal family will still endorse particular products, the emperors always endorsed particular products. And they realized that that was very strategic also. And so it was their way of helping saying, “Oh, why don't you call yourself this and we'll give you a seal that says that the emperor has endorsed this.” And so these are some of the ways outside of, we have a company and a brand manager who makes these decisions. These were some of the ways that were happening then.The White Rabbit: A Case Study in Early Brand SymbolsAndrew Mitrak: One of my favorite examples in your paper from this era is the white rabbit, which we referenced earlier. And can you tell listeners what the white rabbit is and what the brand of the white rabbit is?Giana Eckhardt: The white rabbit is widely considered to be the first modern brand. So in other words, a brand that just goes beyond identifying where it's from or something like this, but has more symbolic aspects to it.Andrew Mitrak: And it was for needles, right?Giana Eckhardt: Exactly. So it was needles that typically women back then would be using to sew. And it's important to say that the women who were the target segment for this were largely illiterate. So there is text on the brand. So there are the characters for a white rabbit. But people would recognize it, just who couldn't read that. And the reason why they would recognize the white rabbit is because that is a key character in a Chinese myth that everyone would know. And it's a character that represents females because the white rabbit is an empress ascended to the moon in a particular story that is very long to tell. But she ended up on the moon and the only thing she brought with her from Earth was her white rabbit. And so it's a symbol that's associated with women who were the target segment. And where you would see these images of a white rabbit is in the wrapping paper. So when you would buy your sewing needles, they would wrap them up in a brown paper and it would have the symbol of the white rabbit on it. It was also outside of the store, the first store, to show people where it is you could go to buy it. So it really served so many functions that current brands serve, in terms of making people feel seen and feel like this is for them because they can understand and relate to the different images and messages that are associated with the brand.Andrew Mitrak: So the artifact that's preserved with the white rabbit and is an image that's copied in your article is an etched metal stamp that would be used to imprint on a piece of paper. And in this image, you have it all. You have an image of the white rabbit. You have text around it and the text, the translation that I read is quote, we buy high quality steel rods and make fine quality needles to be ready for use at no time, unquote. And it sounds like it has all the hallmarks of a very modern advertisement. The image of the rabbit, of course, is on something that could be stamped and repeated and be consistent and you have positioning that emphasizes the quality and the speed of use. And it just seems remarkably contemporary, even though it's from close to a thousand years ago.Giana Eckhardt: Yeah, I 100% agree. And I would just highlight that in addition to everything that you said that leads it to sound remarkably modern, it's also speaking to a specific target segment, which brands that just identified things they did not do. And this is something that I think is really important to emphasize because it's one of the keystones of modern brand management now, right?Early Chinese Celebrity Endorsements and Target AudiencesAndrew Mitrak: So we've talked a lot about some of these keystones. We've talked about branding places. Are there any other favorite examples of early branding practices in China that you want to highlight?Giana Eckhardt: Celebrity endorsements. This was during the 1900s, but there is a cigarette brand that's featured on their packaging, the different generals that had fought in the war and been successful. And so you can have this idea of hero worshipping and promoting nationalism, using people who were well known and widely admired. Especially in the age of social media, a lot of people think this is something that is so new. And yeah, maybe the medium in which it's being disseminated is new as compared to cigarette packaging or something like that. But what they're trying to do is remarkably similar.The Spread (or Lack Thereof) of Branding Beyond ChinaAndrew Mitrak: Let's look at how this might have influenced branding outside of China. Do you see these early branding practices as a unique offshoot that developed within China and didn't influence the outside world or do you feel like these early beginnings of brand development influenced how areas outside of the Chinese region also practice brand development?Giana Eckhardt: China was remarkably insular for thousands of years. And this was because China was never a colonizing power over other areas. If you think about like as when we were talking before about modern day branding practices and those stem from the Industrial Revolution. Well, think about the UK at that time, for example, like and how many colonies they had. So that way of doing things, it's easy to see how it spread. With China, it wasn't until others went to China that even that this was even that these practices were realized. Of course, there was the Silk Road. So, products from China had been going to Europe for a long time. But the branding practices that went along with them because you need a level of cultural understanding to get what these brands mean and why they would be important. And so they didn't travel. And this is why we don't know about a lot of these brands and these types of practices even now in the branding literature. It's something that has been under the radar. And of course, now some Chinese brands are starting to become more prominent globally. Now, we can of course see this with Byte dance and TikTok, for example. It's been something that's been insular to China for a long time.Independent Development of Eastern and Western Branding PracticesAndrew Mitrak: The idea of branding and consistency and stamping sounds like within China it was identified and developed first and then almost independent of that years later, then the Industrial Revolution also adopted these practices, not necessarily influenced by what happened early in China, but they just came to a lot of the same ideas independently at a later time. Is that the right way to think about it?Giana Eckhardt: Yes, I think so. In terms of the symbolism attached to branding, that's something that yes, I think that definitely developed during the Industrial Revolution, but also in China, as we've seen and been discussing. So I think it's yeah, similar practices that developed from different cultural milieus that didn't, yeah, so they developed independently even though as you said, they can be so similar now.Conspicuous and Inconspicuous ConsumptionAndrew Mitrak: Let's just segue into a separate topic. There’s another area of your research that I wanted to cover with you, which is this idea of conspicuous consumption and inconspicuous consumption. And by the way, these words are a mouthful and I'm gonna probably get tongue tied. But I think that this idea of conspicuous consumption, it was an idea I've heard this phrase before, but admittedly I had to look it up and catch up on who Thorstein Veblen was and where these ideas came from. But could you define what conspicuous consumption is for listeners and how it relates to ideas of luxury and branding?Veblen and Defining ‘Conspicuous Consumption’Giana Eckhardt: Veblen is the first person and still who people look to when they think about conspicuous consumption. He was writing at the turn of not this past century, but the one before. So in 1899. And this was the era of the robber baron. If we think about the Rockefellers of the world and those types of people.He defined conspicuous consumption as the purchase of expensive goods to wastefully display wealth rather than to attempt to satisfy the more utilitarian needs of the consumer. For the sole objective of gaining or maintaining higher social status. So it's the idea that consumers buy things, expensive things, not because they need to, but because they want to signal something to others and it has to do with social status.So we can think about contemporary brands now, like people are always asking, why would someone pay $1,000 for a t-shirt when you can buy a t-shirt in Walmart for $10. And so it's about what you're signaling to others. And I think this notion that Veblen had about wastefully displaying wealth, it's this idea that this isn't something, yeah, that I need in any way and because it is wasteful, that's what makes it valuable to me because it tells other people that I can afford to be wasteful and they can't.And back in Veblen's day, the symbols of what was called conspicuous was for example, having a tan because if you at that time, if you had a tan, you were either a laborer who was working outside and so getting tanned from the sun, not because you wanted to, but because you had to. But if you were a person of leisure who was outside playing tennis, you would get a tan from that. And so it morphed from a symbol of not having high social status to having high social status. So those are just, yeah, that's how Veblen was thinking and writing about it at the turn of the last century.Andrew Mitrak: So Veblen coined this term in 1899. That's not to say that it didn't exist before then of course, you think of Pharaohs in Egypt being buried in extravagant tombs with all sorts of things that their dead body probably doesn't need. Of course, there's always been displays of wealth that are extravagant, but for the first time we had this in economic words, a phrase conspicuous consumption to identify it.Inconspicuous Consumption: IYKYKAndrew Mitrak: And that if this extravagance and luxury and perceived wastefulness of spend is conspicuous consumption, then inconspicuous consumption must be the opposite of that, right? It's consumed in a more subtle, less flashy way.Giana Eckhardt: So inconspicuous consumption is when you consume not because others will be able to recognize these symbols, but so that they won't be able to recognize the symbols of what a brand is saying. There's a term that's used, if you know, you know. (IYKYK) And inconspicuous consumption is embodied by that, right? And we can think about more modern terms like quiet luxury, which you hear a lot as well now, which is that no one would be able to know because there isn't anything that people can immediately recognize that says, this is the brand that this is. So along with that, this is the strata of society that I am from. It's keeping that more quiet and more hidden. And so there's a lot of talk now that inconspicuous consumption is more desirable than conspicuous consumption. I think it depends on who the people are and what the context is. But that's the contrast between the two.Andrew Mitrak: So they can of course coexist with each other and it's not to say everybody's conspicuous or inconspicuous, but there are cultural trends where one seems to dominate more than the other.Trends of Conspicuous vs. Inconspicuous ConsumptionAndrew Mitrak: If you think of how conspicuous and inconspicuous consumption have trended over time since since Veblen introduced this concept in at the turn of the last century, how would you describe the ebbs and flows or the pendulum swinging between one and the other?Giana Eckhardt: Yeah, it's really interesting. I mean, you can look at some of the most expensive brands at the moment and I would definitely categorize them as an inconspicuous brand. There's a new luxury brand in China that's partially owned by Hermes, but it's called Shang Xia and it is extremely expensive, but you would never ever know that it was a Shang Xia from, you really have to be in the know to even. So in terms of luxury, the highest levels of luxury have switched almost in a complete 360 from Veblen's Day when it was very obvious, if someone was a laborer versus a robber baron. Whereas now you really can't necessarily tell that immediately anymore. So think about one of the most expensive bags from the past few years, one that looks like an IKEA plastic bag that they give out at IKEA for you to put your purchases in. And IKEA sells them for like $3, right? But so this idea that something is inconspicuous, it actually has more social cache now, flipping Veblen's theory on his head.Economic Cycles and Consumption PatternsAndrew Mitrak: I think of the roaring 20s and flapper dresses and extravagance. Then the great depression happens and it's probably you probably don't want to be seen wearing the fanciest things and it doesn't quite strike the right tone to be flashing your wealth when a lot of folks are in poverty. And how much do the trends in this tie to how the macroeconomy is doing in the culture?Giana Eckhardt: It definitely does tie into that. So when we started to see a rise in inconspicuous consumption was after the 2008, I don't know what exactly we're calling it, but...Andrew Mitrak: The great financial crisis of 2008 to 2011, 2012-ish….Giana Eckhardt: Exactly. So during that 2008 to 2012-ish period, we may not have seen a lot of inconspicuous consumption immediately, but from 2000, yeah, kind of, well, actually 10, I would say onward, it was very evident to see. So I think that connection is definitely still there.Cultural Examples: Marty McFly & Larry DavidAndrew Mitrak: An illustration you give in one of your lectures is Back to the Future where Marty McFly, of course, is from the 1980s and wearing 1980s clothes and he's transplanted back to the 1950s. Could you tell the story of the branding example in particular of what this tells us about conspicuous consumption and how the 1980s contrasts with the 1950s?Giana Eckhardt: So there is one scene where Marty McFly, the main character in Back to the Future, has his pants off so you can see his underwear. And his underwear says Calvin Klein on it because that's what he was wearing when he left the 1980s.And so the 1950s folks, when they see him think it's his name and start calling him Calvin. When he has to explain like, no, this is the name of who made this underwear and not my name. They don't get it. Well, why would you have the name of someone else, of some other person on your own underwear? And hearing him try to explain that is quite humorous.Andrew Mitrak: One of the examples that I wanted to share with you is from a favorite show of mine. It's called Curb Your Enthusiasm. Have you ever seen the show at all?Giana Eckhardt: I have. Yeah.Andrew Mitrak: There's this episode called the Anonymous Donor and Larry, he sponsors a hospital wing and it's called the Larry David Wing.But then somebody else at the same time gets another wing at the hospital and it's the anonymous hospital wing. And Larry looks like a jerk because he put his name on it, the inconspicuous. Somebody else and it turns out to be his friend Ted Danson, gets the anonymous wing. and he gets all the cache of being anonymous, but people know that it's Ted Danson and Ted Danson looks like a hero because he's doing something but not getting credit, but everybody he is getting credit even though because everybody knows he's the one behind anonymous.It's a funny interplay of how the elites who have all the wealth to sponsor a hospital wing, they want to show off their wealth, but they don't want to be perceived as showing off their wealth. It also ties into how there's psychological mind games, and reverse psychology to how conspicuous and inconspicuous consumption can interact with each other.Giana Eckhardt: I love that example. I love that TV show too, although I haven't seen this episode, but I love this example because it shows that there's always a tension between wanting people to know what it is, what status you have in society, etc, but also, yeah, wanting to be thought of as a good person, right?So a lot of people, the critiques of brands for super expensive brands, for example, are like, well, you could take all the money that you just spent on that and why haven't you donated it to people who need it in other parts of the world or something like this. So this idea that you can be a good person but not necessarily reap the social rewards for it. That's directly against Veblenism, right? So not that a lot of people even know what that is anymore, but really it's a great example of showing that there are still downsides to publicly consuming in this way and I'm going to go and watch the episode now to see how this one humorously plays out.Luxury Brands Shift to InconspicuousAndrew Mitrak: I'm wondering if you have any favorite examples of how how marketers or companies and their brands have tapped into the cultural zeitgeist when it comes to conspicuous versus inconspicuous consumption, either adapting their brand or launching new product lines that embrace the the tone that's in vogue at the moment. Do you have any favorite examples of that?Giana Eckhardt: One of my favorite examples is Louis Vuitton, and their famous LV brand. In terms of the iconography and the way that it visually looks, the brand visually looks. And they will go from having the word Louis Vuitton printed as large as it could possibly exist on a handbag to a handbag where you can't even tell it's a Louis Vuitton. There may be an LV inside of it somewhere, but that's it. And so some brands will try and play in and have both of these in their product line, right? So think about the Ralph Lauren pony. Yeah. It can be very small on a shirt or it can be very large and that can be changed and you can see the changes over time when this conspicuous versus inconspicuous, when either one is more in vogue and you can see that. So yes, I think that brands adapt to the zeitgeist, absolutely. But they don't necessarily have to embrace one versus the other. That can change over time or even to target different audiences at the same time.Read Giana’s article: Luxury Branding Below the RadarGiana Eckhardt: Further Reading and ResourcesAndrew Mitrak: Giana Eckhardt, this has been such a fascinating conversation. I've really enjoyed getting this new look into the well both what we were just talking about the history and the ebbs and flows of conspicuous versus inconspicuous consumption, especially over the last century. But then even dating back further the origins of branding in China. I think this is really fascinating and this is just exactly the type of stories I'm hoping to uncover in this podcast. The things that listeners may not be aware of and that might change how we think about the history of marketing, of branding. So I think this has just been such a fascinating talk. Thanks so much for your time. Where can listeners find more of your work online?Giana Eckhardt: I've been doing some work recently on digital nomads and the fact that when people don't have a permanent place to live, it really changes how they consume as a consumer. That's a Harvard Business Review piece. I've also been doing work on the rise of analog consumption as compared to digital. And why consumers want to go back to analog. And I have a book that's coming out with Princeton University Press. It's called In Praise of Inconvenience. So it's about why consumers are seeking out the inconvenient rather than the convenient and what benefits that brings them. So keep your eyes open for that when it comes out as well.Andrew Mitrak: That's great. Thanks so much for your time. We might have to do a follow-up conversation at some point because I feel like we just have scratched the surface of these fascinating histories of brands and all the great research and work you've done.Giana Eckhardt: Sounds good. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit marketinghistory.org
    --------  
    33:31

Más podcasts de Historia

Acerca de A History of Marketing

A podcast about the stories and strategies behind the campaigns that shaped our world. Featuring conversations with top CMOs, marketing professors, authors, historians, and business leaders. marketinghistory.org
Sitio web del podcast

Escucha A History of Marketing, Historia en Podcast y muchos más podcasts de todo el mundo con la aplicación de radio.net

Descarga la app gratuita: radio.net

  • Añadir radios y podcasts a favoritos
  • Transmisión por Wi-Fi y Bluetooth
  • Carplay & Android Auto compatible
  • Muchas otras funciones de la app
Aplicaciones
Redes sociales
v7.16.2 | © 2007-2025 radio.de GmbH
Generated: 4/29/2025 - 5:18:58 AM