let me share with you how we are going to look at four topics first there are many challenges for italy secondly you have to build a good marketing and sales organization third we have to move from only doing traditional marketing 30 second tv commercials mass marketing we have to move from that to using the digital media we are in the digital age and i do not want to eliminate 30 second commercials they're very useful for building a brand but we must also do social marketing social media marketing and fourth i want to talk about marketing 3.0 and social responsibility now let's start with this idea of the challenges and i'm using a picture of a piece of glass i happen to be a major collector of glass big kinds of glass and the reason i was attracted to this is the artist managed to show the earth and inside the earth is a tree and yet the planet is fragile it's delicate we have to treat it right so that trees continue to grow and so on the challenges are many you know them what are you going to do about globalization is italy sufficiently globalized are you a country that just wants to do business with your own businesses in italy uh how many of you have gone to china how much business are you doing with china exporting and even opening maybe a small factory in china or india the idea is always go to the countries that are growing don't go to countries that are not growing don't go to countries that don't have money always go to where the growth is and don't go to many of them focus make italy a well-known name and its products well known in maybe three countries that are going to be your future uh and so on uh chindiya by the way is just a made-up word for the two nations of china and india there's a lot of regional work because you're part of the european union so you have to sometimes you're you're angry at the european union it has its rules but just in the same way my my state of illinois where the city of chicago is doesn't like the rules maybe from the federal government so there's always a conflict between the local the regional and the national and you have to live with that the internet and social media is the nature of the the civilization we're in now it's a new civilization it's a civilization that allows people to communicate with so many other people connectedness it turns out that i will meet a person who nobody knows much about and he will tell me he has a thousand followers and maybe 700 fans the media the digital media allows you to connect with everyone else in the world in fact the smart marketers try to identify who has the biggest network if i want to reach a lot of people with my product and i get the person who has a big network to like my product it goes around the world if i could get lady gaga to say something about my book the world will hear about it right 40 million people so that's the nature of the new society but it's one of hyper competition you've got to watch your competitors and it is a case where if you have a successful new product it's likely to be copied very fast it's likely that since it's successful i'll copy it for example yesterday and today i rode in this new car called the tesla that is a fantastic car it can drive itself the driver can go to sleep someone's going to try to compete with that someone's going to say it could be toyota it could be nissan it could be fiat they're going to so how long does a new product last and remain popular much shorter now things are copied very fast many products are seen to be similar uh some markets it doesn't matter where you buy your salt it doesn't the brand doesn't matter for let's say some some applesauce if there's three brands or the brand of soap so how do i make a choice and my answer is if i gave you a an index you could look up on the internet and it said the good company index and by good company i mean a company that pays good wages to its people and a company that practices sustainability and you don't know if you should buy the soap from company a or b should you buy it from procter gamble or from unilever look up my good company index when it's available it may say that company a is much better as a citizen than company b that means that more people buying the soap will buy it from the good company and the companies not so good have to change they also have to become good so i'm trying to popularize the idea that the market itself will take care of bad companies by creating information about what the good companies are then you've got to be a good company too okay the next point is the retail world is changing the big problem is should i even have a store or should i just sell online uh look what happened to bookstores many of them have closed people can get from amazon any book right now in one minute by downloading a book you want so many businesses have been destroyed by the digital world and we have to look at what's the future of shopping centers some of them are in trouble now what what about walmart will walmart take over the world so we have some retail experts and they are available to help retailers adjust themselves to the new threats and so on media so much more media than we've ever had before you've got to be using facebook you've got to be using google you've got to be using youtube linkedin and so on and then the environment is my company hurting the environment or helping the environment and then recognize the main point is consumers are smarter they can learn whatever they want to learn about you they can look up your website they can see other opinions there are many polls that rank companies let's say if i'm going to buy an automobile i'm going to look up what other people have said about that automobile on the internet and uh jp the poke there's there's a whole rating system and i could even learn what i ought to pay for that car so the result is a certain kind of problem and the problem is called slow economic growth so let me tell you something about that when times were good when there were factories full of people making things the people in the factories usually had a good income an income that could support them them and their wife and their children and have a good life and afford a vacation and so on what's happening now is factories are not found in most places anymore they're found mostly in china china is have became the factory of the world just like india became the office of the world because india was supplying us with many uh telephone and digital services for accountants and so on and furthermore factories are changing from having a thousand people to having one person running a factory and a dog to wake up the person in case he doesn't see the dials in other words automation of the factory is proceeding very fast raising a question will there be enough jobs in italy for the number of people in italy will there be enough jobs in the united states for the number of of workers it's no one has the answer you're going to have to be either a pessimist or optimist about the future of work because if there's going to be a job shortage as the world problem we're going to have to learn to share the jobs france as a country has already worked on that by saying well the job shouldn't be 40 hours a week it should be 35 hours a week or maybe your work should be three days a week but how do we pay for less work so i don't have answers but it's it's a problem now so the world is divided into pessimists and optimists a pessimist who's asked about the future growth of the of the gdp the gross domestic product they are saying that we're we will not go back to four percent growth in europe that we used to have or china's 10 percent growth which they had for some years that in fact it's going to be slow growth one of the top economists named larry summers larry was the head of harvard university he was the president of harvard in a recent statement he said that the growth will be one or two percent for the next 50 years that's very depressing that's very depressing and another economist at my university northwestern university actually looked at all the numbers and said pretty much the same thing for the united states it won't go back to four or five percent growth it will be about a half of one percent on the other hand pick up a book called abundance abundance and the book is written by a very brilliant person named peter diamandis peter diamandis is the one who created the famous x prize if you know about the x prize it is given to anyone who solves a major problem in the world for example if you can make a automobile that could go a hundred miles on one gallon of gas you will win 10 million dollars if you could clean up an oil spill in the gulf of mexico within hours of it happening as opposed to weeks and weeks of oil spreading through the gulf you will win 10 million dollars he's the man who created that idea and he also created a new university called singularity university in san francisco the purpose of singularity university is so different than any other university you go there for training in nanotechnology robotics artificial intelligence networks and sensors the courses are highly technical to make you prepared to innovate if you want to be an entrepreneur you go to singularity university and you'll meet so many other people who also want to innovate better solutions in his book called abundance which he just published he predicts a world where we will end poverty in 20 years there will be no poverty food will be abundant because of the ability to grow the yields instead of getting 10 bananas from a tree you'll get 50 bananas from a tree the water will be desalinated desalinized so that water is abundant everywhere so his picture is one of great optimism for the future but it's nothing we can settle right now so let me continue let me look at the following questions here's the first one and if you have a pencil and you come from a company use this as a uh putting down a number after each of these nine things there are nine items and give yourself up to five points per item so if you have a a five a five a five nine times you will get a score of 45. so for your company my first question is is your company good at finding new opportunities now the fact is even two people in your company may disagree if i were to go into your company i would look at what opportunities did you discover in the last five years what new things did you do second question are you using marketing research and marketing analytics and and do you have big data because we're at a time now where the internet permits us to know much about every person in the world that's called big data but just having big data is not enough because you got to dig through it you've got to do market analytics so you can learn and get insight from the big data so how many points do you want to give to your company for number two the third have you innovated anything are you pretty good pretty successful at innovating what about communication do you think your company has a good image that it's clear and powerful the brand is well understood or not give yourself anywhere from one point if there's very poor communication all the way to five points the next thing do you run your sales force efficiently do you have a sales force do you manage the cost of the sales force very carefully for example my ideal company in salesforce management is called salesforce.com salesforce.com is such a powerful company and it creates the kind of data it would help you know how to manage your sales force by what each sales person is doing during the day and so on next are you running good distribution channels have you created any new distribution channels remember in the old days all you did at a gas station was to get some fuel today the gas station is a money making store and and the gas doesn't make that much money it's the store so how do you find new channels of distribution would you say you have a well thought out marketing strategy would you give your strategy a five or a four or three or two or one uh are you well organized for marketing do you have a good cmo chief marketing officer do you have a good uh does he or she have good respect from the other officers from the chief financial officer and the chief manufacturing officer and then finally does your company practice some corporate social responsibility and so on now i'm not going to ask you to turn this in if we had that uh sometimes you're in an audience which has a number uh thing everyone has a number and then we could show how many of you had 45 points how many had 44. so we're not going to do that but i would worry if i'm your if i am you and your score is like 20 out of 45 that means you better go back to read the books on marketing and so on okay but let's take this and move on someone might say we're an old industry we are the coffee we make coffee there's no opportunity for us in the coffee industry well starbucks starbucks didn't believe there's no opportunity it's an old product but they they created it as your home it's your third home i mean when you um your first home is your family the second is the office the third is starbucks pleasant take your computer there sit there all day meet your friends at starbucks now what what about zara you all know you you are to be complimented on a company is as strong and interesting as zara changing its merchandise every two weeks which says to a young lady if she doesn't buy what she sees now that she likes it won't be there two weeks later and what about zappos zappos is a firm run by a man called tony hasaya and his job is to produce happiness not sell shoes if he's selling shoes it's to make you happier but he wants his employees to be happier he wants his suppliers to be happier he uses the word happify he's in the business of happifying making people happy and by the way if you buy a pair of shoes from tony and shoes are an old business what's new is he will give a free pair of shoes to a poor person because you bought shoes from him this is a new idea by the way it's also being practiced by an a company that makes eyeglasses when you buy a pair of eyeglasses from them some poor person who could not afford having a pair of glasses will get one well i i'm going to buy from that company i'm going to buy from zappos so it's it's a new idea for you to think about now what about new industries we just proved that old industries could be redone and vitalized yes software or many young people don't want to work for a big company they want to create a app or software or a game and uh robotics is is coming more and more i am waiting for someone to invent a robot butler so i say to the butler at home get me some coffee he walks and gets coffee for me i say clean the living room he pushes the the broom or the the vacuum so japan is working on that by the way japan has a butler now it can't do everything but and there's a movie that just came out about a woman that was created it's the movie's called ex mckenna makina the woman actress is not a real woman but looks like a real woman she is basically a robot with all the electronics so what engine what world of innovation do you want to go into what about bio engineering what about 3d printing what people are saying now is every home that has a hewlett packard printer will also have a 3d printer and it will be used to make whatever you want to make it could be a beautiful vessel it could be a very complicated thing they say that the auto industry is making its parts using 3d printing they say that if you're lost on an island there's two things you want one is to have your iphone if you're lost on an island the other is to have a 3d printer because the 3d printer will allow you to make a boat or to print so to speak something that's missing so it's a world of new opportunities are there new opportunities in other countries yes asia comes to mind first i must be selling things in asia eventually it will be africa eventually the next big place is when some countries in africa where the wages are lower you know even china will lose factories to places in africa so italy has a history in africa italy of course went into abyssinia uh you you had a colony in in africa uh and so on and so forth so watch that are there new opportunities for companies that could lower the price of something yes let's look at what tata did mr tata he said it's a very interesting story in india he would notice motorcycles with a father driving it a mother behind him and children five or six family people on one motorcycle and accidents happening killing a whole family and he said you know it shouldn't be a motorcycle it should be a cheap car let's make a car for twenty five hundred dollars and for eight years they worked on the nano car you could buy one and the nano car i think is 2500 it didn't succeed as well as the expected because it's really a covered motorcycle the problem is people who had twenty five hundred dollars in india wanted to move up a little more and get a little better car so the nano got them excited about owning a car but there was the next level and they ended up buying the next level but look we used to say at mit eventually a computer will only cost a hundred dollars no one believed it and now you can get a and back and basically you got the computer for less than a hundred dollars it's it's right in my pocket so uh sneakers for one dollar one dollar something to wear for your feet so ask yourself whatever business you're in is there a market in driving the price even lower making it more affordable for more people and india is the country to watch india is the one that is smart about how to bring down the cost of normal products and then there's the luxury market which is your market are there other things you can do at the upper end of the market and you you have the advantage of such a following in greatly designed products made of great leather and fabrics and you used to have the company olivetti olivetti was a wonderful company at the time it was a it was one to be proud of because they paid the workers well they paid they gave them housing i'm sorry it didn't move fast enough into computers it went into computers but it was not successful in moving from typewriters to computers but the the point i want to make is some of you are making products that should be going after the market that is the rich market the rich people have so much money in fact there are so many new billionaires you know where they are china has more billionaires now india has russia has billionaires they're they're all going to go italian i'm sure they're going to go italian that is you'll sell a lot of products to them and maybe find out what else you could make for them and bring them over here as tourists and then are there opportunities in specific sectors so have you done anything to improve the health sector the education sector look uh look at the gift you gave us in education isn't it the montessori method it's montessori from italy my daughters all grew up with montessori and it's fabulous way to get a education as a child so what else can you do for us in in improving education getting more people and and energy we're all hoping to find new ways to get good energy solar and wind and so on we were told recently my wife and i that we we should so we should solarize our home and we'll end up at much lower cost than buying electricity from the public uh company and we could even sell extra energy from having a solar roof and and the battery coming from this company that we there's this famous man elon musk who created the tesla car he is building the world's biggest factory for making batteries not only for his car but for your home you're going to have a battery at home to supply energy at much less money to you than you are spending now okay now if someone says we don't have any more new innovations no what else could we do we're at the end of innovations well um the digital wallet is another way to call the iphone or a smartphone by the way now we have digital watches i don't know if it's going to be successful because all of us have watches anyways but apple is trying to apple is busy making a digital car the next big car may come from apple i even suspect amazon amazon may go into the car business zip cars zip cars is the idea of i don't have to own a car when i need one i just go and pay for it by the hour it me it would mean that in milan there are several places where several cars are sitting and you you phone to reserve the car and and and and use it in new york city no one wants to own a car i don't think in milano maybe a lot of people may not want to own a car the big thing happening there are the cars being supplied by private people with their own car this whole new development that the taxi companies are upset with who would think that some people who own their own car will drive you somewhere and you pay them much less than for a taxi and some people who have a an extra room in their home will rent their room in the home this is called the shared economy it's a new development that if you have any asset you could price it for example let's say you live in a community and you have a very good lawnmower to cut the grass why should every neighbor have a a lawnmower one has it and the other's rented from the neighbor so this is a whole new idea there's a woman i'm trying to remember her name she's on tel on youtube she is the person who spreads the gospel of the shared economy yes uber and airbnb uh this whole idea of the single serve coffee maker who would ever think coffee would be and have new blood in it a new life but when i was in paris i remember how many people were going to the nestle nestle shop it was like it was a bookstore was so popular they were going to buy some kind of something that serves one cup of coffee at a time you put in the little pellet and you you choose your types of coffee so that's now kidzania you've not heard of you should hear about it you should look it up it was created by my former student who was always trying to say what could we do for kids well there's disneyland right oh all the kids want to go to disneyland but he had this idea disneyland is only fun why don't we take our young people seriously and give them an experience that their father is having who's working in an industry so kidzania is so exciting it when it's it's it's now there's 12 kidzania's in the world two are in japan one is in thailand one is in mexico one is coming to chicago he buys up some land he puts buildings on the land there's a ticket ticketing system and each child is brought by the parent and the child says what he wants to be one of them says i want to be a pilot so he goes to the section where there's actually a plane a part of a plane and there's the dials and he's getting an experience of what a pilot experiences another one says i'd like to be the mayor of a city of course kazania is a city another one says i'd like to run a supermarket so there was a supermarket with things to sell in it and shelves so for the first time it's fun and it's educational the kids learn that what adults are doing they are doctors one kid says i want to be a brain surgeon so he goes into the there's a room with a a patient who's about to be operated on it's a dummy of course so kidzania should come to italy i think you would you would just love to invite them to open up kazania here ibm's watson do you remember hearing that there was a quiz show and they had the best quiz people the ones who won many times against the ibm machine so a question would be ask who uh who wrote the the book gone with the wind and of course uh the peop the the these very professional smart people knew too but it was answered faster by ibm ibm data covered everything that could be asked and not only that the machine predicts the probability that the answer is correct and ibm beat the world's best informed people and by the way that happened earlier ibm beat gary kasparov the world's chess master i had the chance of riding the car with gary kasparov because we were in a program together so we're going back to the hotel and i said to gary do you have time to play a game of chess i knew i'd be defeated he says oh no time sorry so i never played a game with him i would have lost in the first five moves probably but ibm beat him but by ibm is not the winner now a german software program beat ibms so the winners of chess is no longer people it's the software who has the better software so here's what ibm is working on it's a it's a fantastic idea someone has a terrible problem maybe can some kind of cancer um so that person will go to this doctor get the opinion maybe check with the second opinion doctor or could go to ibm which is preparing the following for that cancer ibm has collected all the information in the world of all the people who had that cancer and all the treatments that were used let's say there were three treatments and the probability of success of each of those treatments so a doctor no longer has to know what is the best treatment ibm has put together the information that the doctor goes to get about what treatment is the best for that patient fantastic fantastic so to say that there aren't new things in the world would be a mistake there isn't there is even a case where someone wrote a book called free and and illustrated how you could use the idea that my product is free to get new customers and then turn it into a premium level where you now give even more after they became dependent on that free service i think you'll see this when you're using things in the internet that you could always buy even though it's free you could get it at a higher level well let's move on so that makes a point doesn't it that uh there's a lot of innovation but innovations mean disruption so a word that has become famous now is disruptive technology disruptive innovation and i'm not going to talk about many examples but let's just take one of the best known one and that is what has happened to kodak what has happened to kodak kodak it's not to be found because they were making film and along comes the uh the iphone and other things and digital photography and nobody needs to buy film anymore so that's an excellent example of why you must be very have a lot of foresight what is happening in the world and how will it make us vulnerable and those are other examples there that we won't go into so you need three skills one skill is vulnerability analysis every company has to ask where are we vulnerable what is coming along in technology that might change our business what is coming along in competitors who are getting doing something different and new at least the head of the company should periodically ask every six months let's look at our vulnerabilities again let's not just think everything is fine but also do opportunity analysis what is what new opportunities do we have you you would make that the responsibility of the marketing person i want the marketing cmo is the closest to the market much closer than manufacturing people and finance people the marketing person should have a list of new directions in which the company can move and then you should be skilled at scenario planning imagining the next three or five years what new things are happening and what scenario would you want to bet on you don't just prepare one scenario because you have to put some uncertainty into the picture and to make some guess as how likely is something to happen and through scenario analysis which is used by shell oil company and others you have a picture of where the world's going and where you should move so i want to move to this next point about building your marketing organization and i'm showing you a picture that isn't a book that just won the prize as the best marketing book this year by two australians fathers and father and son lyndon and chris brown their book is called the customer culture imperative and they have a chart that captures what they think you need to know as a marketer and i'm and you notice that they have different color schemes and notice that not all colors reach the the perimeter it doesn't fill the whole perimeter which means they're they're not equally strong in everything but let me read what you cannot read probably it all starts with something that's called customer insight it's the one on on the far far right to my right over here it's that green one that says 60 percent what for that this is for a company that they studied and they have a way to measure the amount of customer insight is this a company with a with great customer insight average or poor they gave it 60 percent but they didn't stop with customer insight the next thing 81 is customer foresight customer insight is to know your customers today customer foresight is to know where the customers are moving tomorrow and what they will want in the way of prices and features the next one is called company competitor insight yes you you certainly should have a good understanding of how your competitors are behaving but also do competitor foresight in the next three years who the will the competitors be who will be stronger ones and so on then they move to the next thing that is in that sort of a pink color peripheral vision by the way there's a chapter on each of these how do you get customer insight how do you get customer foresight competitor insight competitive foresight how do you get peripheral vision peripheral vision is i could look straight at you but maybe in the corner of my eyes i see a much broader picture they talk a lot about having an enlarged vision of the forces by the way when i drove the in the tesla car it reminded me of peripheral vision that car not only knows about the car in front of it it knows the car on the other road on the on the if it's a three-lane road it knows the whole field of where different cars are because it it has the capacity to slow down automatically when it's coming when another car comes in front of it it's an intelligent car that you put on cruise control cruise control normally with cruise control when the car gets in your way you you you get off of cruise control you never have to get off of cruise control because it has peripheral vision about what is surrounding the car in the way of other cars which is the way you should think about your business you need peripheral vision then collaboration and finally strategic alignment where your strategy is taking advantage of the insight and the foresight with the customers and the competitors so it's just a book that i've been quite impressed with bringing up to date some notions about customer orientation is there a difference between selling and marketing yes selling is so old we we sold in the bible times marketing is only 110 years old i use this cartoon who was the first salesperson well go ahead who do you think was the first person who who did sales not eve not eve eve convinced adam but it was the snake the snake convinced eve to give adam the apple so we know a lot about selling but the marketing is only 110 years old the textbooks on marketing you might even say why did we need marketing if you if you know how to sell well you have to organize your your sales force to know where the markets are your markets the best ones for you so marketing started because the sales per department needed three things salesmen cannot be effective unless they have some information on customers and consumers so someone has to find the information of where are the companies that are buying things and and finding leads oh there is a certain company that might buy our machine and then preparing brochures because if you're going to sell a machine you need some even if you don't buy advertising you need a little colorful pamphlet that would describe your business so what happened is originally there was no marketing but there were sales forces needing some help so they would add three or four people who were not selling but helping the sales force including an advertising agency so eventually they created a marketing department of these people separate from the sales force and this is a diagram that i used in a article called ending the war between sales and marketing this is a map of just sales it captures everything you need to know about sales in other words good selling means you start with prospecting you qualify whether that prospect is got money to buy your product and has interest uh you define the actual needs of that person you develop a solution or a proposal you probably have to adjust the proposal because he's not quite happy with the price and then finally a contract and then you implement the contract and basically what you're trying to do is to develop a purchase intention he really is intending to pay attention he buys he buys again and again he gets to be loyal and the best thing that could happen is he likes you so much he tells everyone else don't forget that last step the last step is called consumer advocacy our customer you if you're if you don't have fans if you just have people who bought your product but they never talk about you and tell others it's not good so but where's marketing there's no marketing shown here that's sales so marketing is there but it's it starts earlier so in the yellow is the marketing and what we mean by uh marketing is first it creates customer awareness we exist as a company it tells the right people it creates brand awareness it creates brand considerations so after a lot of people know about the brand we guide their thinking to us as the best brand and then we really succeed if we build what is called brand preference if i'm going to drink something it will be coca-cola if i'm going to have a hamburger it will be mcdonald's that that is brand preference which is the the goal um now that's marketing so marketing lays the plans for building up an appreciation of the market now the question is sales have to then pick up all those leads and and move and sometimes there's a problem of friction between the yellow and the orange friction one of the friction says the salesman say the advertising money isn't doing much work my customers don't even know they they never saw your ad or it's a bad ad so why are we wasting money on advertising why not hire more sales people that's logical if advertising doesn't seem to be working spend it on on on sales people or they say i don't like the quota i can't sell 100 units a month you're that's ridiculous the price is too high as a matter of fact lower the price and i as the salesman could sell more so there's a lot of friction and i i wrote up this problem in an article called ending the war between marketing and sales and that's in the harvard business review and i won't go over these but these were six ways proposed to bring about more collaboration and harmony between sales and marketing so let me say that marketing's focus has been changing originally when we got into marketing we were really just an automobile company trying to sell cars or or selling watches we it was the product then in the 70s to the 90s we got into what it's called a customer orientation everything should start with knowing and choosing your customers choose the customers you want and know a lot about them then in the next decade branding as an idea became popular by the way some people even think branding is the only thing in marketing or you don't even have to talk about marketing you just have to talk about branding but frankly marketing is a much bigger idea than branding branding is done for the current picture you want to have a strong brand but you need marketing to make sure your company has a strategy of moving along in the right way in 2010 and and thereafter we got interested in the purpose of a company is to create value for its customers and value is key are you creating real value better value than your competitors and not only that do you have any values if customers were asked about you and whether you're doing any good for society can you say yes we are what are your values what do you care about now i'll tell you i was in umbria just the beginning of my trip to italy uh by the way i found umbria to be wonderful it's sort of not as popular as you know other places florence and venice and so on but so many uh nice places in umbria and i got a letter and i'm in umbria for three days to do some work with some people and it comes from oslo a letter from oslo dr cottler could you come to us may 6th we have a huge conference on business and society after all we are the place that the peace prize is given mr obama who got the peace prize got it in the city hall of oslo all the other nobel prizes are given in stockholm except one norway is the place for the peace prize and they were running this conference about business and sustainability business and society business and peace and they were going to have 160 top ceos there including the unilever ceo who's a wonderful one mr paul pullman dr codley could you give and give the main speech about how companies are moving toward more business responsibility so i agreed i said but i'm in perugia how do i get to oslo and i have to be back in perugia for the next days program so they said they'll send a private plane so they sent a citation that had two pilots one bathroom and four seats so i tell the man who i'm supposed to work for all that day of may 6th can i go to oslo and change your program he says i will change my program if you take me too his name is albert uh masoni i don't know if albert you're here but in any case uh he said how come and then he says we have a famous marketing woman professor could she come to so we had a wonderful plane ride of three hours from perugia direct to oslo met all these ceos gave my speech got on the plane again go go back to perugia but the main point is values values companies should have values companies should have a purpose as a matter of fact any company that started i say what's your purpose if they say i want to make money i said forget about it go to someone else i want you to make money but if that's all you're busy doing it doesn't impress me what are you creating that's worthwhile for people okay i think we're moving into more use of co-creation working with others to co-create solutions do you know and crowd sourcing it was fiat that decided to make a new car through crowd sourcing by asking the world what they want in a nice small new car fiat crowd sourced the ideas and ended up creating its next small car so there's a lot more we could do co-creating working with others and crowdsourcing and i think corporate social responsibility is going to grow if i end up with an index on good companies no company can remain bad without changing so the view customer's head of marketing it's all about transactions it's buying and selling then it moved to the idea that marketing is about building relations with individual customers to sort of get them to be loyal and the idea has become please engage your customers involve them and build a customer community build a customer community you know tesco tesco is the name of the top british supermarket company do you know what tesco does at night sometimes they open up the store to the tesco customers who like wine and they have a big wine program no charge they have the names they know who buys and likes wine because you could see it in their basket in other words tesco knows everything that any customer ever bought they could another night have a program for mothers who are just had their infants and they bring a whole bunch of mothers together and of course they want to help the mothers buy the right things for the babies and so on so look at when you have a rich database like tesco knowing what everyone bought at your store you can run many programs that are special to get more engagement more involvement of your customers that's how you build loyalty um lots of new things in marketing uh ethnographic marketing ethnographic do you know there's a man named underwood he sits in the shopping centers and he watches where people go and he wants he even watches how they enter a store and how much time they spend in front of every shoe or every item of clothing he's uh ethnography is like uh our uh you know it's it's basically uh like you're studying a tribe we are when we go to we're tribal people going to a tribal institution called the supermarket or the shopping center so underwood has lots of information second thing is neural scanning we are now testing ideas for a campaign let's say i i have my campaign but i don't know if i should use actor a or actor b talking about the product so you put on a person's head a scanner and it's going to scan their brain waves and you notice that for person a when they saw person a there was a big blip which means something about that using that person to sell the product creates more interest even though it may not have registered if you just ask them which person do you like better so right now the company called procter gamble is using neural market and they call it neural marketing but you could call it neuroscience the brain the science of the brain is helping us get a better understanding of how people are affected by something that stimulates them so there's a lot of new analytics predictive analytics helps us predict what someone will buy i i don't want to go into the details but it's a uh it's it's getting some popularity cluster analysis allows us to group people in interesting clusters so we can treat them as a segment marketing mix modeling aims to get an equation where i could put in the quality of my product i could put in the number for the price of my product a number for how much i'm spending on advertising and i will get a market share number a prediction of my market share it's a modeling using of for predicting market share and then i will maybe adjust the price and see if i get a bigger share that way okay let's move on oh i've already mentioned some examples of big data i mentioned tesco to you craft it's it's amazing how many numbers these multi-national companies have i'm i don't know since italian companies are more on the small and medium-sized level you may say this part of marketing is something you're not going to want to spend a lot of money on because it's expensive although if you're a manufacturer of some luxury items let's say i i'm wearing a suit from zegna this is a zagna suit very happy with them they should know that i bought it x years ago and to write me just about now because it's time to buy the next suit so that's what i mean about keeping a database of your customers if you sold me a something like a computer three years ago maybe so much has happened in three years that i'm ready to buy a better computer but you should know that you sold me one three years ago and there's a whole process of big data analysis so we we won't do more with that by the way today you could buy the names of people for at a price let's say you you want to find out people who are nearsighted not farsighted but nearsighted it will cost you 10 cents a name you want to find out people who are customers who have been smoking cigarettes for 10 or more years cost you 12 cents you want to find out the names of people who like me do not have hair because you want to try to tell them you can cure that you can grow hair you know that's but so there's a whole industry uh we call it it's a broker data broker industry so i would receive a letter from a data broker hi i hope you are doing fine i'm checking in to see if you are looking for marketing and data partners and suppliers we are providing b to b and b to c lists with email addresses you know today data is available for purchase you don't have to be actually if you crea if you collected great data you could sell it to someone else suppose you have great data on rich customers who like to buy jewelry why not sell it to some others who need the names of customers who buy a lot of jewelry now within the marketing organization and when you're a really large company you could be like like fiat or pirelli or so on you you could have a lot of job positions you could all the way from a cmo brand managers category managers market segment managers distribution channel managers pricing managers so look the world of marketing could be quite complex for bigger companies i'm not recommending it necessarily but you have to choose the jobs that need specialization what determines what what determines the quality of a company's marketing my first answer is it is not the cmo it is the ceo the head of the company will make the difference as to whether marketing is important to him well done and so on for example i distinguish four types of ceos there's the ceo who i call the one piece ceo the only reason he wants marketing is to get some advertising one p he doesn't even think product price place promotion he only thinks promotion get me someone who can do some advertising i think that's a very i wouldn't want to work for that person that person has such a narrow view of what marketing can do for his firm the second is the 4p yes i want someone who could manage my products my plate my promotions my channels my prices better than that i'd rather work for the third person who's the ceo says who are our customers which segments of customers do we want to do we want older people younger people do we want rich people poorer people what segments what targeting what positioning we call that stp segmenting targeting and positioning and then you bring in the four ps you bring in the four piece after you've decided your segments your targets and your positioning and then there's one kind of ceo he's the head of proctor and gamble he says m.e marketing is everything it's not it's not even like the others he says every company ought to be run by marketing not necessarily by a marketing person but marketing it's all about customers it's about we we're we're in a world which creates so much product we have to have someone good at selling product so that's what determines the quality of your marketing see what happens is when a father runs a company and he grew up with the old mass marketing and it's an italian company and his son had went and got an mba and technically the the sun should take over first of all the sun has become digital or daughter son or daughter becomes digital and there's the conflict between the father's ideas of how he was successful and the son who our daughter who knows what it's going to take okay i could easily tell you what the cmo does why you should have a cmo i'm just going to read this very briefly you could take a picture of it if you want if i'm not you know i'm blocking the picture of it unfortunately for some of you someone to represent what the customers want and think of your company someone who will tell us where the customers are moving what how are they changing someone who would protect the brand and make the brand stronger someone who would upgrade the marketing technology by that i mean cluster analysis predictive analysis factor analysis someone who would bring insight into your portfolio of products do you have too many products are some of them to be dropped are there some products you should have that you don't have yet and finally someone and this is our dream who can measure the return on marketing investment r o m i return on marketing investment see because the chief financial officer of the company keeps saying we're wasting our money on marketing we don't know what it's doing for us your answer is we'll measure it we will show you why putting some effort on facebook has actually increased our sales and our profits that youtube ad that youtube thing we put together was very profitable so we do want by the way this is the latest thing i ever heard that a company in the united states fired its chief marketing officer and replaced him by who the chief financial officer wow you mean a financial guy could do better marketing than the marketing guy well at least the financial guy's going to measure right he has to measure that's why i urge all marketers to learn finance please you're in the business to make money among other things so you better be good at thinking about asset turnover and the cost of money and and what is your return on your money so the cmo has a busy job however he should only spend 50 of the time doing marketing he should spend the other 50 percent working with the chief finance officer working with the chief manufacturing people working with the the personnel people because he or she should form a good role in the organization and and and so on i sometimes use this illustration i say i'm appointing you the as a new marketing chief you're the new marketing chief uh where would you like the your office to be i could put your office right next to the president of the company would you like your office to be next to him which means every day you're going to see him he's going to be watching you or would you want to be next to the chief financial officer or would you like to be next to the chief technology officer or next to the chief information officer or next to the vice president of sales if we had time i would ask you to vote i could argue for each one of these whenever i take a vote most people say i want to be next to the sales force the last one because if they do well and i can help them do well i'll look better and i don't want to be next to the president he's going to ask too many questions so but you may be different you may say i want to be right next to the president so i could educate the president on what i could do okay i'm going to skip some things can marketing help grow the company's future some people say no marketing is only a cost center it doesn't have a bottom line and i disagree i would say marketing is in the best position to detect business opportunities calibrate their size and estimate their likely profitability that marketing managers are so important because they manage intangible assets they manage your brands they manage your customer relationships they manage your networks your market position your market information so i would say yes the future of your company is going to be a function of how good a marketing organization you have let me give you examples these are people who are great at marketing and they they are not they are not professional marketers they're cmos ceos you know them all who is the first fellow the first fellow you wouldn't have recognized but that's ingvar kamprad who started the ikea what a great brilliant idea ikea of a way to sell furniture it's it's a shopping trip that takes a whole day you bring your children you put your children in the uh child center so you don't have to worry about them you get a restaurant you eat your swedish meatballs in ikea because you're there half the day looking at furniture but i think what a visionary he has members you could be a member for of ikea you'll have lower prices as a result of being a member everyone knows about richard branson i mean that that he has marketing in his blood he runs 150 other companies virgin local virgin trains virgin error virgin music virgin this and that there's only one other person who took a word and made it into a number of businesses um the one who has easy what's it called he's a greek fellow and he's using the word easy easy flying easy uh beds easy this he he owns the word easy and and you can expect things to be easy when you buy any of his products walt disney superb marketer herb kelleher southwest airlines anita roddick the body shop bill gates microsoft steve jobs jeff bezos so basically that's the kind of person who is a dreamer i think in this day you're going to have another person who's going to tell you how to get dreams and and sell your dreams this is an interesting book about four years ago scott davis who's a good consultant very good consultant he visited 40 big companies very big companies and he asked what's new in marketing so if you're interested you'll find lots of stories of trends taking place in marketing trend is we're moving from just creating a marketing strategy to driving the business impact where marketing is not just has its own strategy but it's actually driving the business and so on second from just controlling the message to galvanizing the network so more people are talking about us and not just you know it's a new world with digital from just incremental improvements to pervasive innovation where everyone wants to innovate by the way that's the secret of toyota everyone at toyota will be thinking all the time is it necessary for me to do this or that to make this component or not because at toyota they don't lose their job when they they show they don't they're not needed in that job they don't they're put in another job they all want to keep by the way the other company that is pervasive innovation is samsung the korean company samsung has hurt sony terribly the koreans were occupied by the japanese right and guess what they became more japanese than the japanese they are more japanese than the japanese and think of their company lg think of their company hyundai the auto company think of kia so samsung is got the the in the the bug of for pervasive innovation um fourth shift from managing marketing investments to inspiring marketing excellence and the fifth from operational focus to a deep customer focus so basically what i'm saying is the book is full of stories he found by talking to about 40 companies about what was new um the average company doesn't last long by the way sad fact maybe especially some new restaurants they become maybe popular and then we're worn out we go to some other pop new popular one all kinds of reasons why companies often fail by the way in italy it may be partly because the company is run in a way to maximize short-term profit so so you pay yourself back in dividends you take the money out you don't do r d you don't want to grow the company to last forever problem it could be a cultural problem so yet there are some companies that have lasted so many years what is their magic by the way the oldest organization in the world is is the catholic church two thousand years of being in business so there's something there but my own feeling i am not catholic but my own feeling is they need to adjust and they have the best pope they've ever had in francis he's aware he's so smart that it has to adjust to the new trends and so on so what are the secrets of these long lasting companies by the way among them are dupont w.r grace p g mitsui sumatoma siemens they have been around over hundreds of years here's what was found in a book you might want to read called living companies it was done by the the the man arie de goose he worked for shell he was the strategic planner they found that if you expect your company to live a long time you've got to be somewhat conservative in your finance in other words control your risk you got to be sensitive to the changes going on in the world you got to be aware of who you are you have an identity if it's a good identity don't lose it don't don't compromise be authentic and tolerate new ideas don't be afraid of new ideas they're good for you and then he found four priorities these long-lasting companies they value people the people who work for them more than the assets yes it's nice to have a factory but i value the people more i look they they have they steer and control in other words they steer into new ways but they also exercise control they are organized to learn they're learning lifelong learning organizations and they want to have a good impact on the community shaping good communities that's the nature of those companies that were listed by the way um i gotta see what my time is here 11 36 we'll we'll find out but i want to share a few more things with you this is a wonderful way to to see how a brand is built this is the story of starbucks starbucks builds its brand at a number of levels you could use this for your own branding the first is what is your brand mantra essentially what what starbucks says we are delivering a rich rewarding coffee no coffee experience you see the difference it's what we call experiential marketing it's not just coffee that's a product it's the experience of coffee um now once you agree that that's what it is you're going to be like certain other companies who are competitors and different see you're going to be like other companies because you're going to fairly price you're going to be responsible and involved but you're going to be different you're going to have fresher coffee it's going to be more types of coffee it's going to be very good service in other words there's always has to be points of parity where you're equal to your competitors and points of differentiation now once you establish points of difference we call these pods pods pods how do you prove that you are different and better so the next circle says look we use triple filtrated water we give stock options to our employees so that they in themselves could be owners of starbucks uh we uh give 24-hour training before they get on the job we're very integrated so they have the what the evidence the evidence that they're different and better not just claiming that they're different and better and finally they say they have a set of values and a personality and character uh and they have a visual identity they have a picture of a siren earth colors so when you build your brand what's your mantra how are you different than your competitors i hope you have some differences what is the evidence that your differences are not just claimed but true and what did you add in the way of personality and character to your business by the way i've been talking about consumer examples but i've been very close to b2b business to business most of the world is b2b most of the world is businesses selling other things to businesses so i wrote a book called b2b branding because businesses selling to other businesses they didn't work hard enough on the idea of being a brand well erickson is a brand of course siemens is a brand yes some of them do it as a matter of fact listed here are the companies i selected as the best ones doing good branding even though they're a b2b company one of the best by the way is dupont and michelin by the way would we put pirelli down here maybe i'm sure my book had something about pirelli i can't remember what i said but these are the star b2b businesses that do good branding so you could read if you're b2b you could read chapters on how these companies operate another book was related to that b2b but it has to do with the problem called ingredients for example um what is an ingredient let me show you what i mean i don't sell clothing i i use gore-tex gore-tex is the material when i make a fine weather all-weather jacket i use gore-tex now if you don't say gore-tex people don't know that it's better than the other materials another example would be carpets not only do i make carpets but i use stainmaster so if someone drops some coffee on the carpet they can clean it off very easily stainmaster becomes an ingredient which you don't net see in the carpet but it's there not only do i sell you diet drinks but i'm using nutrasweet now nutrasweet is one of those things you don't know necessarily about but it is giving you sweetness without the sugar cooking utensils teflon bicycle gears shimano making very good gears for bicycles dolby for sound systems and one of the best examples is intel inside see intel the chip inside your computer is not normally known you would never have known that did any of you ever buy a computer and open it up to see if there really is an intel chip inside you you have trust don't you that it's inside because they spend a lot of money convincing the computer companies to use their intel chip because it would be cheaper not to use the intel chip but we're all caught up in this see you could take a commodity that no one knows about and make it into a branded product so that book is full of stories about taking an ingredient and making it special and swarovski i mean you could buy crystal and crystal but swarovski really makes a very fine crystal marketing is more than just products and services that's what we call commercial marketing very big development called place marketing i wrote a book called marketing places i went to a city called bilbao in spain nobody ever went to be a tourist in bilbao bilbao is a nice city in the 1920s was a rich city but everyone wants to go to madrid or barcelona so they said how do we get more tourists i said well you got a place marketing problem you're not well known and there's no reason to come here necessarily they said well what do we do and i said well you build an eiffel tower oh no but paris built an eiffel tower we can't be a copycat i said well build something that people have to see you got to give them a reason to go to bilbao i said even build a museum oh we can't build a museum we don't have much good art all the good art is in madrid i said it doesn't matter make the museum a work of art and they did they hired frank gehry and he designed this fantastic museum that has not good art it itself is the art and they used to have chartered flights from japan to go to see that frank geary museum in bilbao so place marketing now there are some experts who could take a city and make it work better get more tours get more companies to invest and move in person marketing is how do you help a person get better known let's say a celebrity so i wrote a book called high visibility high visibility how do you get attention nowadays with the internet you can really do a job as a matter of fact one of the most popular new types of books are called me the brand hey each of us is a brand each of if i'm an electrician i want to be known as the best electrician or the best plumber or the best accountant or the best lawyer what do i do to get high visibility because then i could charge more so branding has come to people not just to products and services and social marketing is how to use marketing to help people live healthier how can i help you understand why you should stop smoking how can i help you avoid hard drugs not to get into that habit how can i help you watch out for hiv aids and so on by your behavior how do i campaign to get you to and how do i get you to exercise every day how do i get you to eat better foods less salt less less fat less sugar so social marketing we just published our fifth edition with new examples of 200 or 300 cases of where marketing ideas were used to help people change to a better behavior through campaigns and so on and we we don't don't confuse that with social media it's social marketing there's another term called social media marketing it's how to use social media in your marketing but i'm talking about marketing used for social purposes and then of course italy is knows very much about political marketing every politician i think gets started with obama how could this young man who was just a lawyer teaching constitutional law at the university of chicago become president besides his personal charisma he had a whole system he was one of the first politicians to use the internet to use social media and it's it worked brilliantly now every politician has to have people who are digital who can use the networks to get messages out um now uh where let me ask my my sponsor uh is this about five more minutes five yeah because there's more i could be here all day by the way when i used to come to italy was a full day of my talking at the end i'd have no voice on digital what's this about first i list on the left traditional media all of you should be using that on the right i list the new media what i'm saying do not give up the traditional it has a function it's good for brand building brand awareness you know big ads and all that but start giving some of your advertising money let's say 10 to some millennials who you've hired and say here go on facebook do something look around you you know the media tell us what we could try to do with 10 budget if it performs very well i'll give you more money how about you did very well here's 20 percent of our budget so the question is you don't say anything like i should only spend x percent for digital instead you experiment if it works you give it more my prediction is digital will be 50 of the budget in about three to five years that the work you're going to do in communicating and communicating will be done by 50 percent digital work and 50 traditional by the way they interact every time you see an ad or hear it it may say for more information go to www so it interacts very much oh by the way this is just a sad picture about a lot of industries that have been destroyed by digital but let's move on um that what are the digital tools of course computers databases programmable devices software internet smartphones you know the world uh there have been studies um that companies are pretty slow to adapting to digital uh in 19 2013 76 said marketing has changed oh that was good news marketing has changed more in the last two years than the last 50 because of digital only nine percent strongly agree i know that our digital marketing is working at that time in 2013 they were doing digital but they weren't sure it was working uh 60 say digital marketing uh approaches are in a constant cycle of trial and error so you're going to be wasting some of your money doing digital but you're going to be learning i love this picture i don't know where this guy is from he's smoking a cigarette he's probably raising money and he's got a phone the point is the new media must be blended with the old media in a mutually reinforcing way if you ask me whether p g uses digital yes today they officially say 25 to 35 percent of their budget for their soaps for their diapers is digital work and the rest is still traditional work companies have to get better at search engine optimization so that your company's name or your brand will be the first to show up that's a whole world in itself of how you get to be seen faster than your competitors be aware that big data requires a dramatic change in the skills in your company the leadership of your company the organization of your company the technologies and the architectures so to go digital is not just to have some people doing digital work it's really calling for a reorganization because the power is shifting to the customers customers are buying things by looking them up on the internet that you don't buy a car without going on the internet to find out a lot about the car and what other people say in asia in particular the consumers are on their their iphones and their other things all the time in fact if my wife is an example she does not go into stores anymore she never goes into stores every day packages arrive everything is ordered online about 20 of the packages are returned we pay a little for the mail she is that new shopper who doesn't see any advantage to going into a store now other people want to go in and touch the fabric and so on even then the big problem of stores is people go in to see the merchandise then they go online to buy so the store is changing into an advertising media if you're selling electronics no one's buying in the store it shows the electronics but you go home and order it so it's a problem for stores marketers are under prepared for the new age that is the people who ran marketing have to go into a learning training do you know that ceos and some companies are giving an hour a week with a young man or woman in the company being told what digital is the ceo wants to know more about it and he sits at the feet of a digital person to learn what's involved so this is an ibm study from 2011 saying that at that time we were pretty unprepared and that cmos have to become more financially minded i i made that point to you so to increase your digital activities there's a lot of things to do have a good website by the way you'll know if you have a good website in two ways one is to ask your customers who've used it how could we improve our website see how many pages they go through on your website if they just see the first page and never do anything more it's not getting to them secondly ask experts to improve your website buy customer information that tracks the interest patterns of specific consumers you know you could find out from facebook a lot about what people are buying and moving and get interested in i one of the things you want to know is are you talked about on the internet does anyone talk about your company i guess if no one talks about your company that's okay it's better than if they were saying bad things normally if you're talked about a lot if you find some things that are coming up that are bad you better correct that very quickly um lots of other things here so basically we got a process here we got a plan we got to manage we got to execute gotta measure and the interesting thing is in the next slide in the old days the only time you would buy help from an outside firm was to buy your marketing research from an outside research firm or you would buy your advertising from an advertising agency today i can distinguish nine other things you might buy you may want to buy database management and warehousing capability in other words ncr oracle ibm all of them will compete for your wish to get a good database going or you may want better business intelligence and analytics here's a bunch of firms that say hey i could help you know more about your competitors in an honest way but i i have skills three marketing mix i could build a model of your market and how if you change the prices it will predict your market share or campaign management or other things all the way to that last one maybe you should do what the airlines do the airlines look at how much how many seats were sold on the plane that's going to leave three days from now if there aren't that many seats that they sold they will tell the travel agents that there's a lower price for selling seats on that plane automatically and if they in the other hand if they have sold almost all the seats the the rule says raise the price on the next remaining seats cause someone will need a seat and you can charge more so pricing it's called yield based pricing has been turned over to automation automation so what what i'm saying is today the big complaint i get from cmos is every day i get 10 companies calling me trying to sell me something there are so many specialists to help with your marketing i i want to i should listen to the right ones but i don't want to spend my time my by the way what's worse is that sales people are finding it harder to get to see the customer many customers say i can know so much about your business without seeing you i just go on the internet and i learn about you in so many ways i don't need to see even give you 15 minutes so we're wondering what's the future of the sales force if people are so well informed without a salesman visiting them and so the corporate social this is another piece of glass i collect by the way but i like this piece because it shows that the earth is delicately balanced very near to falling off if it isn't careful we got to the the new three ps are people planet and profits a company should be paying attention to people rewarding them well the planet sustainability and and profits and that makes up another peak called performance you're performing if you pay attention so this is about capitalism but look at paul pullman's statement he heads unilever he says we ask him what's your ambition he says our ambition ambitions are to double our business when you mean in the next year no no next five years double our business but to do that while reducing our environmental impact and footprint it has to be done via more responsible consumption we all admire this man yes he wants to grow his business but he wants to do it in the right way do you know what he wants to do he wants to measure unilever's footprint carbon footprint and reduce that carbon footprint because eventually we may put a tax on companies higher where there's more carbon damage more carbon being released in the air more methane more bad things so that's the kind of management we want marketing 3.0 which i co-authored with my my friend i just want to say this you can read the book but basically it talks about a movement from just appealing to the mind of the customer to peel appealing to the heart of the customer to appear appealing to the spirit of the customer as we develop our mission our vision and our values and it's full of illustrations of companies like the sc johnson company how everything they do is very caring about the planet and um so one more book that would be of interest if if it comes up i think i yeah by the way remember this slide you all know this this is called the maslow hierarchy of needs in africa many countries they're just at the physiological level they just need food uh health care we so we as we move to safety we and we get a shelter we change our needs as we move to belonging and want more part of a group and then there's esteem and then self-actualization very you have to be pretty well off to even start thinking about self-actualization but i want to add to self-actualization that you should also think of other actualization how do you help others actualize yeah it's nice to fulfill your dreams but how do you help others also have that chance so this is one of my favorite books i wish i had written it but i know the people try to do this in italy they did this in the united states they stopped people on the street and said is there any company that you love so some people said well i don't love a company well is there any that you would miss once they said that i would miss google i i would go crazy if there was no google i would miss coca-cola i would miss so 25 companies ended up being mentioned repeatedly uh these are companies people love in the united states let's do it for italy let's find out which italian companies do people in italy love but here's what they did with this they found out that all of these firms were highly profitable they outperformed their competitors they had happier employees and customers more innovation more profitable suppliers and they were more environmentally involved what more can you ask for from a company that succeeds this way so what they did and this is the my last statement to you they wanted to see what is common to all 25 companies these are companies that don't focus on the shareholders but on the stakeholders not just to make money for some owner but to make well-being for the people who are partners stakeholders two their executive salaries even the ceos in these companies don't get paid those outrageous amounts where the fellow who runs the oracle company takes home 90 million dollars a year 90 million that's about a thousand times more than the average worker you know the average ceo used to get maybe 20 to 40 times what the average worker gets and in the united states now it's something like uh three to five hundred times so these are companies that don't go crazy the next thing is they operate an open door policy you can talk to the boss when you want to you can send him an email you can tell the boss that you're worried about some part of the product line or something you don't have to go to your supervisor the worst thing is when you say i have an idea for the company and i'm going to give it to the president and he says no don't do that maybe it's going to be a bad don't take your time don't waste your time so the good ideas don't go to the top in these companies you can reach the ceo with an idea the employee compensation and benefits are high in these companies just like starbucks very employee training is longer and their employee turnover is lower they hire people who care about customers and people you want to work with people who care about people there are some people who don't care about anyone else so these companies are careful there they hire they they think suppliers are important really get good suppliers and and suppliers who want to improve their own business and in the process will reduce your costs they believe that their corporate culture is their greatest asset it's a company that says we have a very good culture people are happy at our company this is the last one and this is going to be really stimulating to you their marketing budget is lower in these companies than their competitors the competitors not being as good as these companies spend more on marketing to try to make a name when in fact they don't have to spend much because who is doing the advertising their customers you understand they've turned their customers into their advertisers sure i work for pirelli or something i'm happy with that company and you know so basically read that book firms of endearment companies people find deer and they have a lot in common love to see it done for italy it'll be interesting to find what companies we love in italy that's it thank you very much for being with me