Post on 06-May-2015
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Marketing TrendsJune 7, 2007
http://bloggideas.blogspot.com/
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Marketing
“…identifying and meeting human and social needs.” Philip Kotler
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Agenda Myths
Trends
Paradigms
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Driver The Internet
The Internet continues to be the key driving force behind marketing innovation
WOMMwidgetbligetchickletbuzztracker
mashupdelicioussocial media social bookmarkingSMO
trackbackdiggtagtypelistblogroll
viral marketingbuzz marketing vblogpodcastingcontentcasting
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Marketing Myths The same marketing techniques work every time
You need a multimillion budget to create a commercial
Marketing is all about advertising
Marketing is simply an operational expense
A perfectly executed marketing plan will guarantee success
Marketing’s goal is to increase sales
Marketing starts when you’re ready to launch
Marketing is a function. “Marketing owns it”
Innovation comes from inside
Never give the product / service away
You must position and identify with an industry & competition
Target the broadest customer segment
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Crisis In Mass Marketing 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
Source: Justin Kirby & Paul Marsden (2006). Connected marketing. Oxford, UK: Butterworth-Heinemann. xix
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Status of Marketing Management
“In many organizations, the corporate marketing function has lost budget, head count, influence, and confidence, resulting in strategic consequences than run deeper than
many managers may realize.”
Source: The Decline and Dispersion of Marketing Competence. 2006 MIT Sloan Management Review
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Green Grey Karma Capitalism Transparency Authenticity Democratized advertising WOMM Controversy Market space Social media Trusted social media advertising Online paid search ads
Trends
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Out Traditional advertising
Monologue
Market place
Classical 4Ps paradigm
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70+ Million Weblogs
March 07March 03
Source:http://www.sifry.com/alerts/archives/000493.html
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Websites WW
Netcraft November 2006 survey
In May 2007, the number reported was a little over 118 million worldwide
12Source:http://www.sifry.com/alerts/archives/000493.html
13Source:http://www.sifry.com/alerts/archives/000493.html
#1 Japanese
#2 English
#3 Chinese
Posts By Language
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Global Online Population
Currently about 1.2 billion Projected to grow to 1.8 billion by 2010
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Summary 70 million weblogs About 120,000 new weblogs each day, or... 1.4 new blogs every second 3000-7000 new splogs (fake, or spam blogs) created every day Peak of 11,000 splogs per day last December 1.5 million posts per day, or... 17 posts per second Growing from 35 to 75 million blogs took 320 days 22 blogs among the top 100 blogs among the top 100 sources linked to in Q4 2006 - up from 12 in
the prior quarter Japanese the #1 blogging language at 37% English second at 33% Chinese third at 8% Italian fourth at 3% Farsi a newcomer in the top 10 at 1% English the most even in postings around-the-clock Tracking 230 million posts with tags or categories 35% of all February 2007 posts used tags 2.5 million blogs posted at least one tagged post in February
Source: Technorati March 2007. http://www.sifry.com/alerts/archives/000493.html
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Social Media
Social media describes the online technologies and practices that people use to share opinions, insights, experiences, perspectives and media itself. Social media can take many different forms, including text, images, audio, and video. These sites typically use technologies such as blogs, message boards, podcasts, wikis, and vlogs to allow users to interact. Source: Wikipedia
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Word of Mouth Marketing WOMM: Umbrella term
Buzz marketing Special hook, event, promotion. Aqua Teen Hunger
Force Boston Bomb Scare
Viral marketing Branded material, websites, widgets, bligets, videos, utilities,
collaboration tools etc. that sneezers spread. ParkRidge47, Vote Different
Influencer marketing Identifying and finding the influencers
Evangelist marketing Turning most loyal customers into citizen marketers
Street marketing Interacting at popular offline places like Buzz Oven
Stealth / Undercover marketing Bree, lonelyGirl15
Source:Justin Kirby, & Paul Marsden (2006). Connected marketing. Oxford, UK: Butterworth-Heinemann. 198YouTube
Aqua Teen
Buzz Oven
Bree
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Widget Marketing
Cool plug-n-play things for your sidebar
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Mashup
Example of Google Maps mashup on MySpace account.
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U.S. Online Ad $16.9 billion market in 2006
5.9% of the $285 billion total U.S. advertising market in 2006
Notable M&A activity Google bought DoubleClick for $3.1 billion in 4/07 Microsoft bought aQuantive for $6 billion 5/07 WPP Group bought 24/7 Real Media for $649 million 5/07
Source: Wall Street Journal, May 25, 2007, pg. B1
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U.S. Online Ad Spending
Source: Wall Street Journal, May 25, 2007, pg. B1
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New Paradigm Sell your idea first Find your actors (audience) first Size does not matter - PlentyOfFish Reduce risk by pushing control out Value creation increases at the edge Decentralize authority, process, and IP Transparency creates value Truth travels fast Price alone is not sustainable Reengineer your value chain
Skip intermediaries wherever possible
Reinvent your business models Change the status quo
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New Paradigm Democratization of 4Ps paradigm
Citizen branding Collective collaboration Collective risk sharing Collective product innovation Collective IP ownership
Citizen marketers will sell “remarkable” ideas Innovators should adopt the 1% rule
If you don’t find the “sneezers” or connectors, the 80/20% rule won’t matter
Work backwards Build your brand around your idea first. If the community you are targeting does
not coalesce and rally around the idea, continuing to build the product is irrelevant
Create your own “blue ocean” If you play it safe and go by the rules of your industry, value chain, and business
model – you’re dead! Most industries and markets are saturated and highly concentrated.
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Old 4Ps Paradigm
4Ps
Value Creator Customer
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New Paradigm
4Ps
Value Innovator Customer
Product
Brand
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Source: Mohanbir Sawhney, & Deval Prikh (2001). Where value lives in a networked world. Harvard Business Review, HBR #R0101E.
New Value Innovation Paradigm
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It’s About Social Behavior It’s not about a cheaper product or your idea. Try to
change customer behavior. It’s not about better coffee – it’s about the place I am not looking for a ¼” drill bit – I need to make a hole It’s not about the hog, it’s about a lifestyle It’s not about the sound – it’s about how it makes me feel It’s not about the sound – it’s about being hip It’s about my space It’s about my video It’s about my opinion It’s about the experience It’s about your choices, places, and time
Examples Apple, Starbucks, JetBlue, MySpace, Harley-Davidson, Tivo,
Stew Leonard’s, Threadless
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Implications Reached the tipping point The static web maturing Monologue marketing out Live Web (a/k/a Blogosphere) is making information
transparent Word travels fast People are more likely to act on a peer’s recommendation
by factor X Marketing is a reflection of social paradigms The new social media and networks changing customer
expectation and behavior
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Napa Consulting Group Marketing & strategic planning
Helping clients adapt emerging e-business models and social media in pursuit of value innovation.
http://gotastrategy.typepad.com
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