Robert E. Peterson (Bob-san)'s presentation last night at the Tokyo Digital Marketer's Meetup (5/18/2016 & on 1/17/2018). In the presentation, he explains the cultural background of Marketing in Japan, and provides some steps Japanese companies need to do to improve their global Marketing strategies. His book can be found here on Amazon. https://www.amazon.com/Make-Happen-Japanese-Companies-Marketing-ebook/dp/B00ZYYUJRG/ref=sr_1_1

1. JapanInc’s
UltimateChallenge:
Marketing
Reasons why, what to do
about it and how?
Robert E. Peterson
(Bob-san)

2. Japan’s domestic market is unique.
But non-Japanese companies have successfully
beaten Japanese competitors on their home turf
recent examples: Starbucks, Apple iPhone, Dyson

3. Do Japanese companies know how to
manage acquired foreign brands?
recent examples: Suntory-Jim Beam; Dentsu-Aegis,
Softbank-Sprint; Mizkan-Ragu/Bertolli

4. Inside Japan they don’t want to listen,
but outside they will.
The problem - Galápagos technology
Japan Innovates for itself

5. The question you should be asking when
evaluating Japanese companies:

6. What role does marketing play in order to
build their business outside Japan?

7. At present marketing is one of Japan’s
greatest weaknesses to succeeding in
global business expansion.

8. Because the purpose of the business
is to create a customer...the business
enterprise has two and only two
basic functions: marketing and
innovation. All the rest are costs.
Marketing is the distinguishing
unique function of the business.”
- Peter Drucker

9. The practices and approaches Japan
pioneered in quality manufacturing changed
competition forever throughout the world.
Today, Japan must move beyond just quality
competition to competing on strategy and
innovation.
Genuine innovation not only in products
but also in approaches to competing will be
required, e.g. Marketing
- Michael Porter

10. Many Japanese CEO’s Managers will
replace Marketing with the words
Engineering Manufacturing.

11. Professor Taro Kamioka Ph.D.
Graduate School of Commerce and
Management, Hitotsubashi University
“Marketing in Japan plays
only a small role in corporate
decision-making.”
Marketing does not have a core function in the
Japanese business model. An urgent danger
and risk to competitiveness outside Japan.

12. Marketing Basic Matrix
compared to baseball
Great Product + Great Marketing =
Great Product + Mediocre Marketing =
Poor Product + Great Marketing =
Poor Product + Poor Marketing =
Home Run
YouWin the game
Scoring Run
Winning not sure
Base Hits
No scoring
Strike Out!
Game Over

13. Reasons Japanese Companies
Struggle with Marketing:
Language1.
4.
2.
5.
3.
6.
Culture
History
Talent
Management
Lack of
Incentives
Education
Tactics vs.
Strategy

14. No direct translation of word or concept, no kanji.
Spelled via katakana:
= Mā-Ke-Te-N-Gu
1. Language
The Japanese ear hears only market, the ’ing’ does
not register. A market is widely understood to be
a place to sell or transact. Key reason why Sales
Marketing are represented as the same function.

15. Mono(thing) and zukuri (process of making) is a relatively new
Japanese word
Monozukuri combines the desire to produce excellent products
with the ability to constantly improve production systems and
processes. This underpins the Japanese business economy.
The drivers of monozukuri and business direction are the
product engineers.
Marketing staff have a lower status in the organization.The
drivers of monozukuri are the product engineers.
2. Culture History

16. Parallel to theTokugawa governmental shinokosho social order
during the Edo period (1603-1868), classes were arranged by
what Confucian philosophers described as moral purity.
Tier 1: Samurai High moral example for others to follow
Tier 2: Farmers Providers of most basic necessity - food
Tier 3: Artisans Craftsmen Producers of material goods
Tier 4: Merchants Wealth power without producing goods
2. Culture History

17. In today’s corporate Japan the caste system continues:
• Engineers are the Samurai
• Factory workers are the farmers
• Suppliers are the artisans and craftsmen
• Sales Marketing staff are the merchants
2. Culture History

18. • Marketing is poorly taught
• Not a major in universities, just courses
• Professors are not well educated in the subject
nor have real world experiences
• No company training programs
3. Education

19. • Generalists rotations – figure it out on the job
• Marketing not considered a professional skill
or area of specialization
• Lack of knowledge or skill retention
• Lower company function, senior management
not involved
4. Talent Management

20. • No reward or incentive to try something new or
different
• Fear of change, better to imitate or continue
with status quo
• Ringisho or nemawashi ensures bold strategies
are rarely pursued
• Preference for consensus and harmony
• No sense of professionalism or pride in output
5. Lack of Incentives

21. Japanese
Marketing
Tactics
Growth at expense
of profitability
Proliferation of
products and features
Emulate competitive
approaches
Understanding
and articulation of
brand a mystery
Continuous operational
improvement confused
with strategy
6. TacticsVS Strategy

22. Strategy
is About: Requires constant discipline and clear
communication to guide the organization
Everything is measurable
Competing on a unique positioning involving
a distinct product or service offering
i.e. differentiation
Performing the same or similar activities
better than competitors
6. TacticsVS Strategy

23. Once upon a time Sony was Apple
Changed the way we listen to music

24. 20Years Later:
Steve Jobs reinvents the
portable music player
“iPod. One thousand
songs in your pocket

25. If Apple were Japanese this is how
they would have presented the iPod:
“Today we are introducing a new, portable music player called the Easy-
Carry XVZ-22R. It weighs a mere 6.5 ounces, is about the size of a shirt
pocket, and boasts voluminous digital capacity, long battery life, and
lightning-fast transfer speeds.We will be introducing many variations
that incorporate different functions and feature different colors.”

26. Japan lost leadership of
the electronic’s category:
once a national symbol
The Japanese consumer electronics
industry was out-innovated and out-
marketed by SiliconValley and the
Koreans (e.g. Apple, Samsung, LG, etc)

27. How can Japanese Companies
Regain Relevance?

28. Introduce the CMO Function into
Japanese business practices

29. American PositionWill NotWork in Japan
• Lack of competency to assume the position from
with-in, no training support
• CEO does not think important or seen as a threat
• Not a board level function
• Dangerous to be a superman in a group and
consensus oriented culture

30. Refine the CMO for the Japanese Company
as the Customer Marketing Office
• Voice and representative of the customer inside the company
• Team of executives working collaboratively with outside agencies
• Flexible to respond to rapidly changing competitive environment and trends
• Rotations for constant mix of new thinking while retaining wisdom and experience
• Integrates marketing cross functionally into all company operations
• Evaluate ROI via KPI’s
• Board level function actively involving CEO

31. President/CEO Legal
Board of Directors
Product
Development
Manufacturing
Quality Control
Shipping
Product
Innovation
New
Technologies
Marketing Plan
Strategy
Brand
Management
Communications
Logistics
Market
Research
Marketing
Training
Sales Targets
Distribution
Sales Force /
Network
Sales Training
Market
Feedback
CFO
Budget
PL
Admin
HR
Recruitment
Career
Management
Compensation
PersonnelFinanceSalesRD
Engineering
Production
Customer
(CMO)
Safety
Regulations
Compliance
Testing
Evaluation
Accounting
Basic Organizational Structure Wickaboag Consulting Group Inc. 2014
IT

32. PersonnelFinanceSalesRD
Engineering
Production
Customer
(CMO)
CONSUMER
CompetitiveFriends, Family
Social Media
“Word of Mouth”
Awareness Trial Repeat
Marketing Outcomes
market actions
design
product planning
measurement / KPIs / ROI
Advocacy
Cross Organizational Functions Wickaboag Consulting Group Inc. 2014

33. Customer Marketing Office / CMO
The Customer Marketing Office / CMO will benefit a Japanese company’s
global (and domestic) business in the following ways:
1 . Maintain or regain innovation leadership
2. Hit sales goals and build market share with better margins
3. Increase the value of your brand(s) in the mind of the consumer
and within the financial community
4. Have a motivated and focused company organization aligned
behind a clear marketing communications plan strategy
5. Better chance of achieving the four outcomes of marketing:
(1) Awareness; (2)Trial; (3) Repeat; (4) Advocacy

34. Recommendations to Japanese CEOs
Implement marketing as a core function of the company’s business to
succeed in global markets:
1. Separate sales and marketing into two distinct functions and
clarify their role or mission
2. Create a Customer Marketing Office (CMO) function reporting
directly to the CEO, elevate to board level function.The CEO must
be directly involved!
3. Re-arrange the company’s organization and working processes to
build in the Customer Marketing Office (CMO) function
4. Elevate the status of marketing in the company, allow employees
to specialize or develop a career in marketing as a skilled profession

35. Recommendations to Japanese CEOs
Implement marketing as a core function of the company’s business to
succeed in global markets:
5. Institute an ongoing marketing recruitment (internal and
external) and training program with outside help
6. Treat your outside agencies as partners, not suppliers.
They advise, you decide!
7. Implement a process to measure the ROI, effectiveness, efficiency,
consistency and continuity of marketing investments and kaizen
everything through defining your KPI’s
8. Build in incentives and rewards for the Customer Marketing Office
(CMO) team and outside partners

36. Marketing presents a unique opportunity
for Japanese women to shine.
supportingWomenomics

37. Abenomics
Marketing should be
adopted as a key pillar to
boost Japan Inc’s global
competitiveness

38. QuestionstoAskBeforeInvesting inJapaneseCompanies
1. How is marketing currently handled in the company and by whom?
2. Who do they report to and what are their qualifications?
3. Is marketing represented on the board and in decision making?
4. Can we examine the marketing plan and supporting strategy?
5. Can you articulate your brand’s value proposition?
6. What are your marketing KPIs?
7. MA - have you assessed brand equity value and it’s implications on
customer, brand and portfolio integration?

39. Who’s Doing it Right?
Toyota Motor Corporation
• AkioToyoda CEO
• Globalization of Lexus as Chief Branding Officer
Soft Bank
• Masayoshi Son CEO
• Adoption of iPhone

40. Who’s Doing it Right?
Uniqlo | Muji
• TadashiYanai CEO | Satoru Matsuzaki CEO
• Globalization of Japanese fashion design to the masses
Rakuten
• Hiroshi Mikitani CEO
• Ate Amazon’s lunch in Asia

41. Who’s Doing it Right?
Lixil
• Yoshiaki Fujimori CEO
• Brand acquisition and integration to become a global housing
and building materials company
Itoen
• Yosuke Honjo CEO
• Exporting Japanese tea culture to the U.S.

42. The Common Elements of Success
1. Clear leadership and vision
CEO as brand champion
2. Recognition of the power of marketing
3. Outwardly focused
committed to global growth
4. Guts to change company culture people

43. Commodore Bob-san’s fleet of Marketing
Black Ships have anchored in Japan!

44. MAKE IT HAPPEN!
Japanese Companies NeedTo Elevate Marketing As
A Core Function In OrderTo Succeed Outside Japan
new
book