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Rethinking Marketing
Companies have never before had such powerful technologies for understanding and interacting with customers. Yet too many firms operate as if they're stuck in the 1960s, an era of mass marketing, mass media, and impersonal transactions. To compete in an aggressively interactive environment, companies must shift their focus from driving transactions to maximizing customer lifetime value. That means products and brands must be made subservient to customer relationships. And that means transforming the marketing department-traditionally focused on current sales-into a "customer department" by: replacing the CMO with a chief customer officer, cultivating customers rather than pushing products, adopting new performance metrics, and bringing under the marketing umbrella all customer-focused departments, including R&D and customer service.