This post is dedicated to all MICAns (okay, I'll admit I did that just so that all of you will actually read this) who live, breathe, eat and present models day in and day out.
Any marketing-major BSchooler worth his Kotler will know that life is all about pfaff, models and presentations. It seems that long ago, the so-called Gurus of marketing were terribly inspired by Euclidean geometry so as to continually draw them and to try and make them original pieces of work, added words like 'customer', 'positioning' and 'value'. They sound fancy too. Till the second semester of your MBA course. So much that when you hear the word 'value', you just want to take that handy-dandy pocket electrocution kit and do yourself in. Seriously.
I've seen concentric circles, triangles, layers within triangles, squares, and even triangles in circles! What's next? Three-dimensional dodecahedrons? Rhombii inside hemispheres?
You don't believe me? Take a look at that 4 Ps model, the highly overused, de rigeur for any good marketing presentation. Product, Price, Place, Promotion. By revered marketer, Jerome McCarthy.
Now close your eyes and imagine this scenario, where Jerome was a marketing student at some university, and he had to submit an assignment the next day, based on how to position a new bar of soap (that overabused-by-students-of-marketing piece of FMCG). He of course, has a wild night out with his friends, only to come back and remember that he has his assignment to finish off. His groupmates egg him on to just put together 4 slides (or whatever they used in the 60s. God, how did marketing students survive before Powerpoint?). So he just puts together 'product, price, place, promotion', writes two points each and plonks off to sleep. I mean, any of us would have done something like that, right? We might have added 'target audience' or 'brand idea' instead of one of the Ps. But hell, it stuck. And it became a model, worshipped by marketers who draw insane salaries! See how easy it is to come up with something like this?
Hence, in a moment of inspiration, I too came up with my own model. I proudly call it : The Cricket Stump Model.
- To maintain both market share and profits: company assets, demand and values are imperative.
- If demand remains intact, but company assets are lost: market share will fall, but profits might not.
- If demand falls, despite the values and assets, both market share and profits will fall.
There we go!