The Marketing Mindset

Evolution to PLG?

I recently collected a few ideas about the marketing mindset for a client. It was a pleasant journey down memory lane. I remember writing a formal marketing plan as a first-time CMO. On one side of my table was a textbook from Philip Kotler . On the other, notes from my marketing class with Carol Scott from UCLA. In this marketing plan, I began with the vision of marketing as a central element for the company and not just a support function for sales.

Improving the marketing function is especially challenging for engineering-driven and or sales-led companies. I worked for a series of companies run by engineers, and in my new environment, the corporate parent had a historically strong sales culture. Strong is a polite way of referring to the hot tub in one of their offices, or the standard three-martini lunch.

In today’s era of self-service marketing where the typical customer does research online far in advance of contacting a salesperson, providing information that aligns with the customer’s articulated and unarticulated needs is critical to create self-sustaining sales growth. In other words, by the time the prospect has reviewed information online about the product(s) they need, they have gained sufficient exposure (education) to have developed trust in the company as an expert in the field. They then feel confident they are making an informed decision to purchase before the company becomes aware of the interest in purchase.

Dr. Kotler was a lead proponent of something he called the “marketing mindset” and published many articles about how to improve marketing effectiveness. The articles were mostly published in the ‘70s but have found new relevance today. This is a reasonably recent summary: “The Executive Guide to Marketing Effectiveness”?

The article contains a brief template for assessing the state of marketing in a company. This assessment focuses on strategy, resources (financial and human), operations, information, and most importantly, customer orientation.? Here are some key takeaways:

• Marketing Mindset: Introducing a marketing mindset into an organization can be challenging. It is often misunderstood or forgotten after initial success.
• Assessment Tool: Executives, especially Chief Marketing Officers (CMOs), have the responsibility of evaluating marketing effectiveness in each division. Kotler's assessment tool from the late 1970s remains relevant today despite the advent of big data, social media, and digital marketing.
• Factors for Effectiveness: The assessment involves apprising divisions with low scores about the factors that contribute to marketing effectiveness. These factors include attending marketing seminars, reading marketing literature, hiring experts, conducting fresh research, and improving strategy and planning.
• Interventions: In some cases, top management may need to intervene by hiring marketing-trained personnel or restructuring sales and marketing activities.

The marketing mindset contrasts with the traditional sales-driven organization. The sales focus can be summarized as, “People are not buying enough of what we make.” The marketing mentality is, “Let’s figure out what people need/what benefits them over the long term.”?

Selling Mentality:

• Aggressive Selling: Assumes that consumers typically exhibit buying inertia or resistance.
• Tools and Techniques: Companies rely on a variety of selling and promotion techniques to induce purchases.?
• Narrow Scope: The marketing function is viewed as a support role for the sales team.
• Unsought Goods: This approach is typically used for goods that people don’t actively think of buying (e.g., insurance, reference books).

Marketing Mentality:

• Customer-Centric: The focus is on understanding customer needs, desires, and behaviors.
• Crafting Experiences: Develop solutions that resonate with the customer’s narrative and aspirations.?
• Broad Scope: Marketing encompasses a wide range of activities beyond just selling products or services.

?The marketing mindset is a fundamental approach that shapes how individuals and organizations perceive and engage with marketing activities. Here are some key aspects:

• Customer-Centric Perspective: At the core of the marketing mindset is a focus on understanding and meeting customer needs. Marketers view their work through the lens of delivering value to customers, rather than merely promoting products or services.
• Holistic View: Marketers recognize that marketing extends beyond advertising and sales. It encompasses market and industry research, branding, positioning, product development, pricing, distribution, and customer service. A holistic view ensures alignment across all touchpoints.
• Data-Driven Decision-Making: The marketing mindset emphasizes data analysis and evidence-based decision-making. Marketers use data to understand consumer behavior, track campaign performance, and optimize strategies.
• Adaptability and Agility: In a dynamic marketplace, marketers must be adaptable. They embrace change, stay informed about industry trends, and adjust strategies as needed.
• Creativity and Innovation: While data is crucial, creativity remains essential. Marketers think creatively to develop compelling campaigns, storytelling, and brand experiences.
• Long-Term Relationships: Rather than focusing solely on short-term gains, the marketing mindset prioritizes building lasting, sustainable relationships with customers. Repeat business loyalty and reputational or word-of-mouth referrals are key goals. Using NPS measurements may help to differentiate.
• Continuous Learning: Marketers stay curious and invest in learning. They attend conferences, read industry publications, and engage with thought leaders to stay ahead.

Kotler emphasizes that the most important part of marketing is not selling. Marketing’s broader goal is to understand the customer well, ensuring that the product or service fits them so well that it practically sells itself. Ideally, marketing should result in a customer who is ready to buy, making the selling function transition from order fulfillment to one of ensuring customer satisfaction and being a trusted partner to help uncover new needs.?

In a recent conversation with Sage Partners ' Frederick Felman , he shared his experiences fostering a Product Led Growth (PLG) strategy. I mentioned it sounds a lot like Kotler's marketing mentality from the 1970s, after you sprinkle in the self-service elements that technology has facilitated over the last two decades. Fred says that PLG incorporates many product marketing fundamentals with the idea that the product largely does the work of GTM. He is also quick to point out that employing PLG doesn't preclude using a sales force, and in fact for enterprise sales the most successful product-led motions almost always have a sales component. He cites one of the earliest examples of PLG was McAfee antivirus software. it was passed from user to user via a floppy disk, and McAfee's sales teams would in turn contact the end-user-computing group within large companies to sell them licenses for every network-connected computer. Distribution by download greatly accelerates this motion, as demonstrated by Dropbox, Slack, and other contemporary SaaS companies.

What do you think - is PLG an evolutionary step from Kotler's Marketing Mentality?

Credits: I'm grateful for the input and counsel from my Partners John L. Hansen , Mimi Macksoud , and Rich Schneider . And an assist from CoPilot to summarize material.