Thomas Burns, the iconic economist, originally authored the classic classification scale many use to describe market maturity. On his scale, the most complete, or evolved market he identified as a phase three and described as being focused on ”stimulat(ing) consumption (with) advertising, product development, design, consumer research, market research, and marketing promotion.” (Hatch, 1997, p. 23) The question, though, is have we actually now passed into a 4th phase, where the market self moderates and discovers needs or desires for product on its own?
If social media, indeed, does represent the 4th phase, then the impact it will have on organizations is significant. “We often hear of social media being equated with tools & platforms. But it’s really much more than that. If you’re adopting these technologies and behaviors at your company, it’s not about the shiny new toys. It’s fundamentally about culture change. And that type of transformational change – which may include updating business practices – must come from the top. But more than a top-down dictum, it’s got to be part of leadership.” (Monty, 2010)
One such case where leadership and organizational change is adapting the social advancement of the web is Ford Motor Company. Ford has embraced the social web, and has made significant changes to the way in which the firm goes to market. Ford’s CEO, Alan Mulally, really gets social media. As stated on the firm’s Social Media Marketing Blog: “He promotes a culture of transparency and openness that is completely aligned with the way Ford is trying to engage with consumers online. Mulally thinks about how Ford does business. Consistency of purpose and of message is key.” (Monty, 2010)
Ford clearly understands the power of the social web, and is looking to leverage the new found paradigm as a means to reach consumers. Their open transparent approach is designed to develop an ongoing trust based relationship with consumers that establish dialogs, commitment, and engagement. They seek to extend and expand the emotional connection by providing greater access to information (hello Toyota) and facilitating the subsequent sharing or spreading of experiences amongst the Firm’s friends, family, customers and fans. Ford is demonstrating the adaptable leadership required by today’s organizations, and is demonstrating that organizations can drive change when they listen to their market, to their consumers and have committed leadership.
As organizations look to embrace the social web it is critical that leadership recognize that socialization of the web and thus their brand is a new paradigm. In this new fourth phase of industrialization organizations must look beyond their own advertising and promotion to accommodate the reality of social conversations generated by the market about their brand. The social web is vast, spanning well beyond advertising and promotion, and can spread points of view, both good and bad, like wildfire. The market can turn on a dime, or a brake pedal, and brands need to be ready to react. Brands must recognize the power of word of mouth and plan accordingly.
Look to Ford again. At the turn of the 18th century they helped usher the world into the industrial era with the famed assembly line. What could you have learned from them then? Could you have applied the assembly line to your own business? Ford, under the direction of Mulally, is doing it again. They are leading the way into the 4th phase with the socialization of their brand with consumers, their customers, their prospects, friends, family, and now fans and followers. Can you learn from them? Can you learn how to socialize your own business?
Posted by tewksbum 
