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My Global Hustle
A New Model for Business: The Museum
*At first blush, the consumer appeal of a business like Groupon seems pretty obvious. The popular deal-of-the-day Internet start-up sells vouchers to restaurants, spas, and other local businesses at major markdowns–and who wouldn’t want to score a 100-dollar sports massage for 50 bucks?* * * *But Harvard Business School’s Ray Weaver says that what Groupon is up to is much more sophisticated than just offering 50 percent-off coupons. Groupon, along with companies like Apple, Facebook, and Progressive Insurance, is a leading example of firms that are thinking about customers in a new way—much like how a museum curator orchestrates the experience of patrons. Weaver, an assistant professor in the Marketing Unitat HBS, believes that part of Groupon’s success is borne of the careful way the company presents wares to its customers: providing a very limited amount of choices at a time, along with a brief, engaging description of each offering.* READ MORE HERE
Fulfilling the promise of Latin America’s cities
Latin America is a bright spot
 in the postrecession global economy, with growth rebounding strongly in much of the region. But to lengthen today’s strides toward recovery into a sustained period of rising prosperity, it must take full advantage of its cities’ economic potential.
The region is more urban than any other in developing markets, with 80 percent of its population living in cities, compared with about 50 percent in China. The shift from country to town has contributed much to Latin America’s growth, as economies of scale have raised the productivity of expanding cities and reduced the cost of delivering their basic services.1 Cities are critical to Latin America’s overall economy.2 The region’s 198 large ones—defined as having populations of 200,000 or more—together contribute more than 60 percent of GDP. The 10 largest alone generate half of that output. Such a concentration of urban economic activity in the largest cities makes Latin America comparable to the United States and Western Europe in this respect but not to many other emerging regions. China’s top ten cities, for instance, contribute around 20 percent of the nation’s GDP.
We’re all marketers now
For the past decade, marketers have been adjusting to a new era of deep customer engagement. They’ve tacked on new functions, such as social-media management; altered processes to better integrate advertising campaigns online, on television, and in print; and added staff with Web expertise to manage the explosion of digital customer data. Yet in our experience, that’s not enough. To truly engage customers for whom “push†advertising is increasingly irrelevant, companies must do more outside the confines of the traditional marketing organization. At the end of the day, customers no longer separate marketing from the product—it is the product. They don’t separate marketing from their in-store or online experience—it is the experience. In the era of engagement, marketing is the company.
