Synthesis of Root Cause Marketing
The researches on evolution and on the functionality of human intelligence drove to the development of a new stage of technologies. Root cause marketing is based on managing the root causes of buying processes and the use of catalysts and marketing objects to influence and accelerate buying decisions. It is a transversal (complementary) approach that allows refining market segmentation, marketing processes, marketing objects and the design of catalysts.
Root Cause Marketing Fosters First Choice Marketing
Two things need to be managed to develop marketing action that drive products or services to be perceived as the first choice in the buying decision process.
- Human actions are driven by the concepts they have. This implies that the concept an individual has when a value proposition is made, defines the possibility of a product to be included in the buying decision process. That is why the conceptual segmentation defines the environment where a value proposition is meaningful.
- Buying decisions always include alternatives, when there seem to be no alternative proposals, not buying is the unavoidable alternative. When these alternatives are compared, the potential buyer chooses one among the rest, which is the first choice in the decision process. If the process can be fulfilled, the buying action ends. But if there appear objections that cannot be overcome, the potential buyer chooses another alternative leaving aside the one s/he had chosen. This new alternative is then the first choice for the buyer and this process continues until the buying action concludes or is aborted.
The management of the root causes is based on:
- The discovery that human actions are driven by the concepts people have, which define the root causes of buying decisions.
- The fact that the CSTM (Conceptual Short-Term Memory) triggers perception, which starts the buying decision process.
This means that unicist root cause marketing requires knowing and managing the concepts that underlie the products/services that are being marketed, knowing the conceptual segmentation of buyers and being able to develop a first choice strategy in marketing that allows positioning the products in a way that they are the first choice of some segment.
The Use of Double Dialectical Actions (DDAs) to Influence the Market
Influencing adaptive environments requires the development of synchronic double dialectical actions (DDAs) to influence each adaptive function of the environment. These actions are evident in everyday life.
Double dialectical actions are driven by the development of marketing actions according to the segments of the products and services proposed and the actions that depend on the segments of buyers.
DDAs are implemented as marketing objects. There are two types of DDAs: Type 1, that integrates catalysts with drivers to accelerate processes, and Type 2, that integrates actions to expand boundaries and actions to ensure results.
The Installation of Root Cause Marketing
The installation of Root Cause Marketing only requires the installation of a unicist market lab integrated by members of the marketing and commercial divisions of a company to provide solutions that are used to empower the commercial functionality and the use of CRM.
A Unicist Market Lab is a marketing solution factory that use expert systems and unicist artificial intelligence to manage the root causes of buying processes and build catalysts to accelerate the speed of growth and DDA-actions to ensure results.
Some of the companies that use business objects and catalysts are: Airbus, Amazon, Apple, BBC, Boeing, Dassault Systemes, Dupont, Ericsson, Facebook, General Electric, Google, Hilton, Honda, Hyundai, LinkedIn, Lufthansa, Mapfre, Mayo Clinic, Michelin, Novartis, Open Text, P&G, Pfizer, SAP, Siemens, Tata Motors, Toyota, Unilever, Walmart, Walt Disney World and Youtube.
Types of Marketing Processes
It has to be considered that marketing, by definition, is market driven. No marketing is possible without the knowledge of the needs and characteristics of the market.
Four types of structural intrinsic marketing processes were defined:
- Sales driven
- Product driven
- Brand driven
- Innovation driven
Sales Driven Marketing Process
This is the case of non-differentiated products that are based on the skills of selling processes to access the markets. Non-differentiated products can be marketed using sales driven, product driven or brand driven approaches. Sales driven marketing is centrally based on the use of commercial objects to sustain the empathy building process, and semiotic objects to guide the buying processes.
Product driven Marketing Process
The product driven marketing process implies the existence of the product as a core value of the value proposition. It is based on product differentiation and competitive advantages, which drive the development of value propositions. It is sustained by the use of empathy building objects that are centered on the development of an empathy with the product and the use of semantic objects to ensure the knowledge of the value proposition.
Brand driven Marketing Process
Brand driven actions are sustained by the attributes of the brand that deal with the promise of a solution. This implies the existence of a notorious competitive advantage that allows establishing asymmetric complementary relationships to ensure the differentiation of the promise implicit in the value proposition. This type of marketing is sustained by DDAs (double dialectical actions) Type 2 that drive the maximal and minimum strategies of the marketing strategy.
Innovation driven Marketing Process
Innovation driven actions are based on including new trends in the value propositions and developing a competitive advantage that allows introducing the innovations having the necessary influence to sustain their credibility. This strategy is based on opening possibilities that did not exist before and on the use of DDAs (double dialectical actions) Type 1 that allow introducing the context of the trends and of the competitive advantage in the buying decision process.
The Use of Catalysts to Accelerate Marketing Processes
Marketing catalysts are sales accelerators that diminish the efforts needed to influence buying decisions. The 4th Industrial Revolution increases notoriously the market orientation but demands the use of catalysts to ensure market growth.
While 100% of the successful marketing actions were sustained by catalysts, 100% of the failures had insufficient catalysts. The use of catalysts is a must in marketing.
Alliances and Co-marketing as Catalysts
The Use of Segmented Marketing Objects
Unicist root cause marketing is an approach that includes the use of business objects and a unicist conceptual segmentation. It increases the marketing effectiveness, accelerating the buying processes and saving energy. It includes the use of commercial, semantic and semiotic objects:
- Unicist Commercial Objects: Unicist commercial objects are implemented to install ideas in the mind of the potential customers. This implies that they are designed to sustain the marketing process of products and services that are being proposed.
- Unicist Semantic Objects: Semantic objects are used to install meaningful knowledge in the market. They are necessary to sustain differentiated or innovative value propositions.
- Unicist Semiotic Objects: Semiotic objects are installed to guide and influence buying processes. Double dialectical actions (DDAs) are a sort of semiotic objects that allow driving and catalyzing buying processes.
Digitalization in Marketing in the 4IR
Digitalization is the core aspect of the new stage in marketing, but it requires being integrated with conceptualization and personalization in order to develop expansive, profitable and sustainable marketing processes.
The concept of digitalization is self-evident and means managing the information of businesses in digital format to increase the efficiency of business processes.
But to digitalize in the sense of the adaptiveness of processes introduced by the 4IR it is necessary to have the concepts of the business functions that allow developing adaptive systems.
Therefore, the conceptual design of the business processes is what makes digitalization possible by managing the root causes of buying processes. This requires managing the conceptual segmentation of the market.
When this process has been defined, it becomes necessary to clarify how the needs of the people who participate in the processes are satisfied.
Personalization is the concept that needs to be introduced, which implies organizing the subjective aspects of marketing processes and ensuring that the needs of the roles of the participants of the processes are satisfied. It requires the use of catalyzing objects to accelerate and ensure the efficacy of marketing processes.
B2B Conceptual Market Segmentation
The unicist approach to B2B marketing is based on segmenting the companies while, within such companies, the B2C segmentation is used to segment the individual participants in a commercial process.
The B2B marketing process has been specially designed for supply driven markets, although it is fully applicable to demand driven markets considering that in this case it is necessary to sustain significant product/service differentiations.
The use of B2B marketing implies:
- Knowing the actual functional needs of a specific client considering the characteristics of the industry and its conjuncture.
- Having confirmed that the essential attributes of the value propositions are a real catalyst for the business processes of the prospect.
- Having identified the type of relationships the potential customer establishes with its providers.
- Having identified the competitive advantages that work as a catalyst and limit of the value propositions.
- Following the trends that influence clients’ decisions.
B2C Conceptual Market Segmentation
The unicist approach to marketing allowed developing a profiling technology that allows beginning with the hard characteristics of a segment, integrating the functional, psychological, conceptual and lifestyle segmentations to define the customer profile to deal with a segment based on predictors and observable characteristics.
The unicist marketing technology for B2C requires the definition of the different segments that integrate a market.
It has to be considered that each segment needs to be managed as an “independent” universe in terms of marketing, although it is interdependent with other segments.
- Having the essential attributes of the product/services that define the concept of the value proposition.
- Having the functional concepts that are defined by the operational attributes of the product/service.
- Having the psychological segmentation based on conceptual psychology that allows defining the relationship the buyer establishes with the product/service and the vendor.
- Knowing the lifestyle that works as a catalyst and limit for the value propositions.
- Knowing the hard aspects of what the clients are buying.
Application Fields of Root Cause Marketing
Root cause marketing is a strategic approach to influence the market that is based on the multiple types of marketing strategies that are defined by the type of product, the characteristics of the buyers and the characteristics of the buying processes.
It uses double dialectical actions (DDAs) that allow including the wide and restricted contexts to influence the functionality of the value propositions and the development of commercial, semantic and semiotic marketing objects to influence buying decisions. Segmented double dialectical actions and the use of segmented marketing objects are the operational drivers of root cause marketing.
- Differentiated B2B products/services
- Differentiated B2C products/services
- Direct marketing of products/services
- Ethical B2C products/services
- Functional B2B products/services
- Functional B2C products/services
- Functional B2P products/services
- High value B2C products/services
- Image driven marketing
- Impulse driven B2C marketing of products
- Innovation based marketing of products/services
- Negotiation driven marketing
- Promotion driven B2C marketing
- Referral driven marketing
Buying decisions are driven by the concepts individuals have. That is why buying decision are driven by the instantaneous actions of the Conceptual Short-Term Memory that use the information stored as a concept in the long-term memory.
The concepts and fundamentals of unicist marketing provide the knowledge base to develop cognitive systems for businesses. The unicist marketing technologies have been developed at The Unicist Research Institute to manage the root-causes of buying processes. Unicist Root Cause Marketing is an approach based on the use of business objects and the unicist segmentation.
The Unicist Research Institute