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« The Quaternary Marketing »
               A new theory of marketing in the digital era and NBIC:
                        The five revolutions of Marketing !




Paris, 29th may 2012                                    Bruno TEBOUL
The author: Bruno Teboul



Corporate Digital Marketing Director
(The european leader in ICT)

Master of Epistemology
(1993 - University of Paris 12)

Post Graduate Diploma in Cognitive Neurosciences
(1994 - Ecole Polytechnique)

Executive MBA
(2003 - HEC/UCLA)

PhD student in Marketing & Management Science
(2012 University Paris-Dauphine)

                                                   Bruno Teboul
The 6th marketing revolution:
  The Chaos Marketing…




                                Bruno Teboul
The 6th marketing revolution:
  The Chaos Marketing…




                                Bruno Teboul
The 6th marketing revolution:
  The Chaos Marketing…

Chaos can be understood by comparing it with two other
types of behaviors – randomness and periodicity.
Random behaviors never repeat themselves although we
can predict the average behavior of a system using
statistics.

Periodic behavior is highly predictable because it always
repeats itself, for example, the swinging of a pendulum.
Such systems are deterministic, i.e. if we know the
conditions at any one point we can predict those
conditions at any other point in time.

Chaos has characteristics of both behaviors like
Marketing Theory: although it seems disorganized like
random behavior, it is deterministic like periodic
behavior.

                                                        Bruno Teboul
The 6th marketing revolution:
   The Chaos Marketing…
The concept of “catastrophe” should be considered here
as its Greek etymology "Katastrophe" means “upheaval”
that is abrupt and unforeseen.

The catastrophe theory as defined occurs when going
from one stable equilibrium point, a new stable state
different, naturally this balance may - be relative and
fragile. The customer in all its components (actions,
perceptions, emotions) might well be considered an
informational field, protei-form.

Stocks, flows, stimuli ... which feeds the customer, via a
transmitter (marketing campaign / brand communication
for example), or an observer (Marketing Studies Manager
...) and it feeds back (interactions) determine a
topological figure through which the client will move
from an initial situation (time 0 of the observation or
receiving the stimulus transmitter) considered an
equilibrium point.
                                                             Bruno Teboul
The 6th marketing revolution:
  The Chaos Marketing…

From there, a multi – modal path offers the customer
to "navigate" according to its state at the time (the
time of receptivity, perception, past experience of a
brand, product, a point sale ..) or whether his
approach is exploratory (impulse purchase, or
acquisition of information) or confirmatory (purchase
reflected).

The choice of a path (behavioral modality) results in
catastrophe (as defined above), that is to say, the
breaking of the initial equilibrium (symbolized by the
crease, for example in one of the models catastrophe
theory of René THOM).

The terms of choice, translate into behavior and thus
determine trajectories in a space of possibility (buying
- not buying, loyalty – churn).

                                                           Bruno Teboul
Raymond Poincaré          René Thom           Edward Lorenz              Edgar Morin



           My own intellectual journey and university led me to
           the study of Cybernetics 2, the cognitive sciences
           (including neuroscience and AI) and to the theories of
           Poincaré, Thom, Lorenz and Morin which I applied to
           the humanities and then management science and now
           marketing in particular.

           Indeed, the most surprising is the analogy between the
           evolution of science and scientific theories revisited in
           the classics by these three theories "Chaos",
           "Catastrophe" and "Complexity" where I will describe
           the concept of Theory “3C applied in Marketing!
                                                                       Bruno Teboul
The 6th marketing revolution:
         The Chaos Marketing…
When examining more closely the reasons why marketing is a
increasingly complex discipline , the concept of "chaos" in the
scientific sense may be attributed: one thinks immediately of the
distortion of results that is observed between the initial conditions of
a product test conducted in a focus group for example and the
actual results of sales a few weeks or months after the effective
launch of the product and its marketing.

Indeed, this equation cannot apparent that the findings of a
customer study = consumer events predictive founded the "chaotic"
Marketing ".

Because the change of initial states (here the variation and
inaccurate responses panelists for example) will cause an opposite
reaction and very serious consequences for the subsequent events
that are normally "predictable" (launch failure of a new product on
the market following a study by the declarative bias of participants
who say the opposite of what they think ...), but "not achieved" within
the meaning of the term probability.                                 Bruno Teboul
The 6th marketing revolution:
      The Chaos Marketing…
This complexity can become totally chaotic and erratic and
generate a deterministic noise. It is in this sense that marketing
gets into trouble when there is an extremely sensitive dependence
on initial conditions.

A very small initial change can impact in very important and
unexpected ways. This is what is called chaotic behavior. The
famous "flap of a butterfly can cause a tornado...“




                                                                Bruno Teboul
The 6th marketing revolution:
      The Chaos Marketing…

The transition from stable to chaotic dynamics depends on
the combination and the relative strength of different
elements. Although governed by deterministic rules, the
multiplicity of interactions and relationships between
variables transforms the elements into a complex system
whose behavior is unpredictable and impossible to
anticipate. Unpredictability of determinism are born on
chance.

Therefore, the impact of a minimal change in the initial state
of a chaotic system is unpredictable and can cause changes
dramatically different with considerable differences in
outcomes. Consequently, one can doubt the ability to model
a prediction in marketing: it is indeed a problem of method
and a paradigm shift required to make marketing become a
form of predictive science ...
                                                           Bruno Teboul
The 6th marketing revolution:
       « The Chaos Marketing »
                    Inspired by the work of Ilya Prigogine
                                                 Vision of Quaternary Marketing (Applied Chaos
 Classic and obsolete vision of Marketing
                                                                    Theory)

  Marketing defines according to Philip           Marketing today is a Marketing Complexity,
   Kotler and supporters of Marketing           Advanced Technologies and the Convergence of
             Management.                                          Sciences.
                                                 Marketing has gone through in our five major
 Marketing is evolving in a linear, stable,   revolutions and is trapped by three great paradoxes
      predictable and controllable.              that should allow it to adapt and evolve as an
                                                        academic discipline and applied.

                                                 Marketing now obeys several paradigms and
 The main paradigm is the Marketing Mix         complement coexistente: Homo non-Bayesian,
             (nP's theory).                      Heuristics and bias, Neuroscientist and Data
                                                                    models

 The customer relationship is based on a
                                               The relationship with the consumer based on a
  standard outline "behaviorist": Stimuli
                                               cognitive approach and neuro-scientific: Stimuli
   >>> Response (Procter: Solutions >
                                                       >>> Black Box >>> Response.
                Response).
   The consumer is rational and Bayesian
  (legacy of the micro-economics and the
    concept of Homo Economicus), loving         The consumer is not rational, faithless … the
    consumer market and ready to spend       consumer is saturated with information (Big Data),
   amazingly... Advertisers are willing to    polluted by thousands of advertisements that do
lavish advertising costs in the mass media not interest him (Big Ads), for products that have
 to sell products, permanently install their         neither pleasure nor utility to buy…
brand, or consolidate their hegemony in a
                 market ...                                                                         Bruno Teboul

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The 6th Marketing Revolution the chaos marketing bt20120606_slide_share5

  • 1. « The Quaternary Marketing » A new theory of marketing in the digital era and NBIC: The five revolutions of Marketing ! Paris, 29th may 2012 Bruno TEBOUL
  • 2. The author: Bruno Teboul Corporate Digital Marketing Director (The european leader in ICT) Master of Epistemology (1993 - University of Paris 12) Post Graduate Diploma in Cognitive Neurosciences (1994 - Ecole Polytechnique) Executive MBA (2003 - HEC/UCLA) PhD student in Marketing & Management Science (2012 University Paris-Dauphine) Bruno Teboul
  • 3. The 6th marketing revolution: The Chaos Marketing… Bruno Teboul
  • 4. The 6th marketing revolution: The Chaos Marketing… Bruno Teboul
  • 5. The 6th marketing revolution: The Chaos Marketing… Chaos can be understood by comparing it with two other types of behaviors – randomness and periodicity. Random behaviors never repeat themselves although we can predict the average behavior of a system using statistics. Periodic behavior is highly predictable because it always repeats itself, for example, the swinging of a pendulum. Such systems are deterministic, i.e. if we know the conditions at any one point we can predict those conditions at any other point in time. Chaos has characteristics of both behaviors like Marketing Theory: although it seems disorganized like random behavior, it is deterministic like periodic behavior. Bruno Teboul
  • 6. The 6th marketing revolution: The Chaos Marketing… The concept of “catastrophe” should be considered here as its Greek etymology "Katastrophe" means “upheaval” that is abrupt and unforeseen. The catastrophe theory as defined occurs when going from one stable equilibrium point, a new stable state different, naturally this balance may - be relative and fragile. The customer in all its components (actions, perceptions, emotions) might well be considered an informational field, protei-form. Stocks, flows, stimuli ... which feeds the customer, via a transmitter (marketing campaign / brand communication for example), or an observer (Marketing Studies Manager ...) and it feeds back (interactions) determine a topological figure through which the client will move from an initial situation (time 0 of the observation or receiving the stimulus transmitter) considered an equilibrium point. Bruno Teboul
  • 7. The 6th marketing revolution: The Chaos Marketing… From there, a multi – modal path offers the customer to "navigate" according to its state at the time (the time of receptivity, perception, past experience of a brand, product, a point sale ..) or whether his approach is exploratory (impulse purchase, or acquisition of information) or confirmatory (purchase reflected). The choice of a path (behavioral modality) results in catastrophe (as defined above), that is to say, the breaking of the initial equilibrium (symbolized by the crease, for example in one of the models catastrophe theory of René THOM). The terms of choice, translate into behavior and thus determine trajectories in a space of possibility (buying - not buying, loyalty – churn). Bruno Teboul
  • 8. Raymond Poincaré René Thom Edward Lorenz Edgar Morin My own intellectual journey and university led me to the study of Cybernetics 2, the cognitive sciences (including neuroscience and AI) and to the theories of Poincaré, Thom, Lorenz and Morin which I applied to the humanities and then management science and now marketing in particular. Indeed, the most surprising is the analogy between the evolution of science and scientific theories revisited in the classics by these three theories "Chaos", "Catastrophe" and "Complexity" where I will describe the concept of Theory “3C applied in Marketing! Bruno Teboul
  • 9. The 6th marketing revolution: The Chaos Marketing… When examining more closely the reasons why marketing is a increasingly complex discipline , the concept of "chaos" in the scientific sense may be attributed: one thinks immediately of the distortion of results that is observed between the initial conditions of a product test conducted in a focus group for example and the actual results of sales a few weeks or months after the effective launch of the product and its marketing. Indeed, this equation cannot apparent that the findings of a customer study = consumer events predictive founded the "chaotic" Marketing ". Because the change of initial states (here the variation and inaccurate responses panelists for example) will cause an opposite reaction and very serious consequences for the subsequent events that are normally "predictable" (launch failure of a new product on the market following a study by the declarative bias of participants who say the opposite of what they think ...), but "not achieved" within the meaning of the term probability. Bruno Teboul
  • 10. The 6th marketing revolution: The Chaos Marketing… This complexity can become totally chaotic and erratic and generate a deterministic noise. It is in this sense that marketing gets into trouble when there is an extremely sensitive dependence on initial conditions. A very small initial change can impact in very important and unexpected ways. This is what is called chaotic behavior. The famous "flap of a butterfly can cause a tornado...“ Bruno Teboul
  • 11. The 6th marketing revolution: The Chaos Marketing… The transition from stable to chaotic dynamics depends on the combination and the relative strength of different elements. Although governed by deterministic rules, the multiplicity of interactions and relationships between variables transforms the elements into a complex system whose behavior is unpredictable and impossible to anticipate. Unpredictability of determinism are born on chance. Therefore, the impact of a minimal change in the initial state of a chaotic system is unpredictable and can cause changes dramatically different with considerable differences in outcomes. Consequently, one can doubt the ability to model a prediction in marketing: it is indeed a problem of method and a paradigm shift required to make marketing become a form of predictive science ... Bruno Teboul
  • 12. The 6th marketing revolution: « The Chaos Marketing » Inspired by the work of Ilya Prigogine Vision of Quaternary Marketing (Applied Chaos Classic and obsolete vision of Marketing Theory) Marketing defines according to Philip Marketing today is a Marketing Complexity, Kotler and supporters of Marketing Advanced Technologies and the Convergence of Management. Sciences. Marketing has gone through in our five major Marketing is evolving in a linear, stable, revolutions and is trapped by three great paradoxes predictable and controllable. that should allow it to adapt and evolve as an academic discipline and applied. Marketing now obeys several paradigms and The main paradigm is the Marketing Mix complement coexistente: Homo non-Bayesian, (nP's theory). Heuristics and bias, Neuroscientist and Data models The customer relationship is based on a The relationship with the consumer based on a standard outline "behaviorist": Stimuli cognitive approach and neuro-scientific: Stimuli >>> Response (Procter: Solutions > >>> Black Box >>> Response. Response). The consumer is rational and Bayesian (legacy of the micro-economics and the concept of Homo Economicus), loving The consumer is not rational, faithless … the consumer market and ready to spend consumer is saturated with information (Big Data), amazingly... Advertisers are willing to polluted by thousands of advertisements that do lavish advertising costs in the mass media not interest him (Big Ads), for products that have to sell products, permanently install their neither pleasure nor utility to buy… brand, or consolidate their hegemony in a market ... Bruno Teboul