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CRM?Newtonian Marketing (577 words)

January 2001 By Brendan Maher
Edited by Brendan Maher

Don't forget what you learned in high-school physics, implores Jerry Shereshewsky, the direct marketer who lists among his claims to fame the creation of Mello Yellow for the Coca-Cola Co. and making online promotional marketing company Yoyodine attractive enough to catch the attention of Yahoo!, which bought it.

Among the inimitable laws every marketer should remember, are those of Sir Isaac Newton the 18th century physicist, astronomer, alchemist and theologian who turned the world upside down because he saw an apple fall to the ground. At the DMA 83rd Conference & Exhibition this past fall, Shereshewsky explained how Newton, a man whose theories shaped modern scientific thought, also could have been talking about branding and loyalty programs.

Newton's first law of motion: "A body in uniform motion remains in motion until it is acted upon by an external force."

This sounds great for direct marketers of renewable products or services. It would mean that once a customer has begun to buy from you, he or she will continue ad infinitum. Those external forces, however, exist in the form of your competitors.

Newton's second law of motion: "A body acted on by an external force will change its momentum in the direction of that force, such that the greater the force the greater the change in momentum."

Force is a function of mass times acceleration. The larger and faster moving a customer segment is in the direction of a certain brand, the more the force needed to change that momentum (e.g., the "cola wars"). The same applies for companies (e.g., the pressure exerted to change the course of Microsoft or Philip Morris).

Newton's third law of motion: "For every action, there is an equal and opposite reaction."

Don't think for a second that your competitor isn't watching what you're doing—and reacting to it. Anticipate this, and you could always be a step or two ahead.

To apply Newtonian marketing practices, consider the three laws of motion concerning customers and loyalty: how to get them moving in your direction; how to keep them moving; and how to identify and prevent defection to an "external force."

Consider these three examples:

• Gevalia Kaffe. This Swedish coffee is sold directly to the consumer on a "ship-'til-forbid" structure. Much like heating oil, this gourmet coffee is delivered to your house when it's assumed you will need it. There's no room for competition from external forces, and bribes and incentives keep the customer momentum going.
 

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