Nama Cultivating your market

1
NamaCultivating your market

• Dana VanDen Heuvel The MarketingSavant Group
• dana_at_danavan.net www.marketingsavant.com

2
Dana VanDen HeuvelThe MarketingSavant Group

• Dana is the founder of The MarketingSavant Group
  and a widely recognized specialist in emerging
  marketing technologies such as blogging, social
  media, RSS, Internet communities and interactive
  marketing trends and best practices and speaks
  regularly on these topics at industry events.
  Dana is the creator of the American Marketing
  Association TechnoMarketing training series and
  the author of the AMA Marketech 08 guide to
  marketing technology.

SLIDES AVAILABLE WWW.DANAVAN.NET/Nama
3
Marketech 08

• Marketing has not fundamentally changed since the
  creation on the marketing concept and our
  branching out as a child of modern economic
  theory. What has changed is how we, as
  marketers, talk with our customers and the tools,
  techniques and especially the technologies that
  we employ in those conversations.
• This guide is meant to serve as an overview of
  the marketing technologies available to you, the
  seasoned marketer. Weve provided you with the
  most accessible and actionable tools in this
  guide.

4
Overview Agenda

• 900 // Begin
• Overview of TechnoMarketing
• Word-of-Mouth Marketing and the Power of CGM
• 1045 // Break
• Mining the Social Media Space for Customer
  Intelligence
• Customer Community
• Online Video Videoblogging
• Blogs, Podcasts and RSS
• Emerging TechnoMarketing tools (widgets, Twitter,
  etc)
• Putting it to work at in your organization
• 1230 // Lunch

5
EXPECTATIONS!

• What brought you here?
• What do you need to bring back?
• How will you know when you have it?
• What do you expect to DO?
• How should success LOOK, FEEL and SOUND?

6
TO APPRECIATE NEW MARKETING FIRST YOU HAVE TO
UNDERSTAND WHATS BROKEN WITH TRADITIONAL
MARKETING.
7
TRADITIONAL MARKETING ADVERTISING
ADVERTISING CLUTTER MEDIA FRAGMENTATION CONSUMERS
TUNED OUT DOESNT SCALE LESS EFFECTIVE MORE
EXPENSIVE LESS TRUSTED LOWER ROI
8
Crisis In Mass Marketing
Source Justin Kirby Paul Marsden (2006).
Connected marketing. Oxford, UK
Butterworth-Heinemann. xix

• 18 Proportion of TV advertising campaigns
  generating positive ROI
• 54 cents Average return in sales for every 1
  spent on advertising
• 256 The increase in TV advertising costs (CPM)
  in the past decade
• 84 Proportion of B2B marketing campaigns
  resulting in falling sales
• 100 The increase needed in advertising spend to
  add 1-2 in sales
• 14 Proportion of people who trust advertising
  information
• 90 Proportion of people who can skip TV ads who
  do skip TV ads
• 80 Market share of video recorders with ad
  skipping technology in 2008
• 95 The failure rate for new product
  introductions
• 117 The number of prime time TV spots in 2002
  needed to reach 80 of adult population up from
  just 3 in 1965
• 3000 Number of advertising messages people are
  exposed to per day
• 56 Proportion of people who avoid buying
  products from companies who they think advertise
  too much
• 65 Proportion of people who believe that they
  are constantly bombarded with too much
  advertising
• 69 Proportion of people interested in
  technology or devices that enable them to skip or
  block advertising

9
Big themes
10
WHATS CHANGED?
"We can't compete on price. We also can't compete
on quality, features or service. That leaves
fraud, which I'd like you to call marketing."
Dilberts Boss
cc 3.0, Megaqwerty
11

• CONTENT

12

• CONTEXT

13

• CONNECTIONS

14

• COMMUNITY

15
Marketing Into the Future

• Marketing in the education, corporate, non-profit
  and small business environments is changing in
  ways that were just beginning to grasp.
• The changes we see are taking shape on three
  fronts.

16
Technological
17
Technology Changes Marketing

• Social media
• Video
• Widgets gadgets
• Mobile Everything
• Virtual everything
• Universal search
• Web 2.0/3.0/4.0

18
Where Everything Is Headed
Today
Digital
Non-Digital
2006
2050?
1996
Source Google
19
The Revolution will not be televised Gil Scott
Heron
20
Information Proliferation

• Media Fragmentation - Then, and Now

1960 Now 6 TV channels/home 130 8,400 Magazine
s 17,300 4,400 Radio stations 13,500 None Intern
et stations 35,000 None Pages on Google 10 B
None Blogs 150 M
21
(No Transcript)
22
360? Digital Marketing World
Online Media
Email
eNewsletters
Real Simple Syndication (RSS)
eCards
eMail
Content Partnerships
News
Community sites
Syndication
Special Interest
Manifestos
Blog Search Engines
Conversations
Influencer outreach
Blog Aggregators
Blogs
Chat Rooms/Events
Portals
Search Engine Optimization
Citizen Action
Photo Blogs
Listservs
Keyword Marketing
eAlerts
Message Boards
Search
Meetups
Social Computing
Text-messaging
Press Rooms w/RSS
Online Advertising
Web Sites
IM
Viral Content
Games Contests
Wikis
eAdvocacy
Folksonomy
Digital Radio
Social Bookmarking
VBlogs
Podcasting
Webcasting
Digital Devices
Phones
DVR (Tivo)
Game Consoles
PDAs
Microcasting
Source Ogilvy
23
social / behavioral
24
Social Behavior Changes Marketing

• Search
• Networked
• Low-fidelity
• Hierarchy of social needs

25
Social Hierarchy of Needs
26
Building Blocks of the Social Web
Identity A way of uniquely identifying people in
the system Presence A way of knowing who is
online, available or otherwise nearby
Relationships A way of describing how two users
in the system are related Conversations A way of
talking to other people through the system
Groups A way of forming communities of interest
Reputation A way of knowing the status of other
people in the system Sharing A way of sharing
things that are meaningful to participants (like
photos or videos)
Gene Smith http//www.atomiq.com
27
Focus on the Long Tail

• Reach out to the entire web
• To the edges and not just to the centre, to the
  long tail and not the just the head
• Leverage customer-self service
• e.g. Google, StumbleUpon, orkut

28
Harnessing Collective Intelligence

• Network effects from user contribution are the
  key to market dominance in Web 2.0 era
• The Wisdom of crowds
• Users add value

• Amazon, ebay - User reviews, similar items, most
  popular,
• Wikipedia content can be added/edited by any
  web user,
• Flickr tagging images
• Cloudmark Spam emails

29
(No Transcript)
30
Economic / Market Forces
31
The New Economy of Marketing

• ROI is within easy grasp (for you, and them!)
• Can your RD keep up with your market?
• Transparency reduces cost
• In the future, organizations will compete on
• Who can create a rich user community where users
  interact with each other to improve products

32
Internet Business Models 5 Years Out

• Advertiser-Supported Advertising Brands are
  increasingly launching their own content
  platforms. Some, like Budweiser's BudTV, go it
  alone. Others partner with online media
  properties. PG, for example, embedded Capessa
  inside Yahoo Health.
• Advertiser-Subsidized Devices Content is a
  commodity. The barriers to entry are obliterated.
  Still, this means we all need to make choices -
  human attention doesn't scale. So how do you get
  consumers to choose your stuff? Simple. Use
  incentives.Marketers will partner with consumer
  electronic companies to co-brand white-label
  gadgets. For example, a Gap-branded set-top box
  could come with exclusive video podcast
  subscriptions
• Just-in-Time Advertising Digital advertising
  creative and planning, like any marketing
  discipline, follows an arc. It's planned, placed,
  measured and eventually evaluated, tweaked or
  tossed. However, in the digital world, brands
  need to be more nimble.With the help of new
  technology, marketers will rely on "just-in-time"
  campaigns that adapt to conditions. Ad creative
  will morph based on certain triggers. This will
  include sales/ERP data, blog chatter/consumer
  feedback, weather/external conditions and more.

33
Out With the Old Business Models

• The next generation of marketing will be a
  high-touch, low scale, targeted investment of
  time human capital rather than a flood of
  dollars to win hearts and minds

• Give something of value away for free
• Value forward
• Brand second (last?)
• Rapidly emerging opportunities (skunkworks
  budget)
• Participation trumps focus group

34
Emerging Economies Lead Future Online Growth
Netherlands
World averages in 2011
US
Singapore
Norway
UK
Sweden
Japan
France
Israel
Canada
Germany
Italy
Online Penetration in 2011
UAE
Bulgaria
Romania
Czech Republic
Australia
Russia
Saudi Arabia
Chile
China
Philippines
Argentina
Mexico
South Africa
Brazil
India
Egypt
Indonesia
CAGR of Online Population (2006 to 2011)
Note Not all countries are included. Size of
bubble indicates relative size of the online
population in 2011.
Source JupiterResearch Worldwide Internet
Population Model, 5/07
35
WHAT'S NEXT?
36
Web 3.0 for Marketers

• Open authorship, wiki-base community
• Nuanced permission
• All media is rich media
• Local/GEO IP is perfected
• Personas are the new target markets
• Device agnostic marketing experience
• Search behavior is second nature
• Marketing has always been unplugged
• Virtual reality has always been available when
  the real thing failed
• Brands autobiography written in real time

37
Where Do We Go From Here?

• Web as a platform
• Software above a single device
• Data as the new Intel inside
• Harnessing collective intelligence
• Lightweight business models (Saas)
• Rich Internet applications
• Leverage the long tail

38
So Much to Learn - Reading!

• Naked Conversations How Blogs are Changing the
  Way Businesses Talk with Customers (Robert
  Scoble)
• The Medium is the Message (Marshall McLuhan)
• Complex Responsive Processes in Organizations
  Learning and Knowledge Creation (Ralph Stacey)
• The World Is Flat A Brief History of the
  Twenty-first Century (Thomas Friedman)
• Informal Learning Rediscovering the Natural
  Pathways That Inspire Innovation and Performance
  (Jay Cross)
• Deschooling Society (Ivan Illich)
• The Innovator's Solution Creating and Sustaining
  Successful Growth (Clayton Christensen)
• The Cluetrain Manifesto The End of Business as
  Usual (Christopher Locke)
• Convergence Culture Where Old and New Media
  Collide (Henry Jenkins)
• The Wealth of Networks How Social Production
  Transforms Markets and Freedom (Yochai Benkler)
• Open Business Models How to Thrive in the New
  Innovation Landscape (Henry Chesbrough)
• The Long Tail Why the Future of Business is
  Selling Less of More (Chris Anderson)
• Wikinomics How Mass Collaboration Changes
  Everything (Don Tapscott)
• Seeing What's Next Using Theories of Innovation
  to Predict Industry Change (Clayton Christensen)
• Technological Revolutions and Financial Capital
  The Dynamics of Bubbles and Golden Ages (Carlota
  Perez)
• The Social Life of Information (John Seely Brown)
• The Wisdom of Crowds (James Surowiecki)
• Complexity and Innovation in Organizations (Jose
  Fonseca)

39
Nama - 2008
SLIDES AVAILABLE WWW.DANAVAN.NET/nama

• Dana VanDen Heuvel The MarketingSavant Group
• dana_at_danavan.net www.marketingsavant.com