Brand Box 2 - Know Your Market - The Marketer's Ultimate Toolkit
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Transcript of Brand Box 2 - Know Your Market - The Marketer's Ultimate Toolkit


KNOW YOUR MARKET
KNOW YOUR MARKET
2
GROWTH
Know Your Business
Brand Architecture Branding
Positioning
Know Your Consumers
Profiling Segmentation
InsightsPricing
Know Your Market
CompetitveBinary Analysis
Predatory Thinking
What’s the Big Idea?
Launch or NPDInnovation
Communications
How to Say It
Advertising IdeaTone & Messaging
When and Where to Say It
Media StrategyConnection IdeaChannel Planning
AC
TIO
NS
from
I
NS
IGH
TS

KNOW YOUR MARKET
DEFINING YOUR MARKET
3
“What category are you in?”
It seems such a basic question, but often the answer is not really considered. When you look at the difficulties of positioning in today’s marketplace you need to make sure you’re at the top of your market, and you’ve got enough people in it. Some talk about it as making sure your market is an inch wide and a mile deep. Defining your category is required before you consider your competitive set. Be very specific about your category as it will determine your audience and therefore shape your position within that market.
The MarketDefining your market is the most important business shaping decision you can make.
Amongst other things it:• Defines your competitors• Defines your consumers• Determines your position in that category• Determines your strategy for growth
Defining your
Market

KNOW YOUR MARKET
DEFINING YOUR MARKET
4
Competition is Not Always Bad
A competitor, or two, or three, usually adds credibility to a category, which tends to broaden the market rather than hurt the specialist.
Google’s competitors
A year ago, Google only listed two competitors......Now they have listed over ten by name.
Why?Google have expanded their Internet services and in doing so moved onto the turf of competitors like Yelp.
The boom of social networking sites is putting pressure on Google’s advertising revenue.Specialist search engines like monster.com and kayak are becoming very popular.There’s also the emergence of mobile applications on platforms like the iPhone, which allow you to directly access a web product without using a search engine.

KNOW YOUR MARKET
DEFINING YOUR MARKET
5
Porter’s 5 Forces Analysis
In Porter’s famous model he outlines forces that can influence your business and prosperity.
http://www.quickmba.com/strategy/porter.shtml
Competitive Rivalry within an Industry
Number and size of firmsIndustry size and trends
Fixed vs. variable cost basesProduct/service rangesDifferentiation strategy
Bargaining Power of Customers
Buyer choiceBuyer size/number
Change cost/frequencyProduct/service importance
Volumes
Threat of New EntrantsEntry ease/barriers
Geographical factorsIncumbents’ resistanceNew Entrant strategy
Routes to market
Bargaining Power of Suppliers
Brand reputationGeographical coverage
Product/service level qualityRelationships with customers
Bidding processes/capabilities
Threat of Substitute Products
Alternative’s price/qualityMarket distribution changes
Fashion and trendsLegislative effects

KNOW YOUR MARKET
DEFINING YOUR MARKET
6
Market Leader or Challenger Entrant?
Where being a challenger can go wrong
You only want to grow the market if you’re market leader. If a challenger grows the market they “give away” a disproportionate share and strengthen the leader’s position. First we will take you through how this happens, then we will show you how to use predatory marketing to gain market share from your competitors.
1. The first to market• Owns 100% and obtains leadership positioning • Gains Top Of Mind (T.O.M.) awareness, distribution and critical mass advantages
Market LeaderMarket Share = 100%

KNOW YOUR MARKET
DEFINING YOUR MARKET
7
Market Leader or Challenger Entrant?
2. Challenger entrant establishes market share
Market LeaderMarket Share = 80%
ChallengerMarket Share = 20%

KNOW YOUR MARKET
DEFINING YOUR MARKET
8
Market Leader or Challenger Entrant?
3. Challenger often inadvertently grows market • Over 55% of advertising is misattributed to the brand leader, giving T.O.M. awareness, distribution and critical mass advantages
Market LeaderMarket Share = 90%
ChallengerMarket Share = 5% Market Leader
Growth

PREDATORY MARKETINGHow to grow at the expense of stronger competitors

KNOW YOUR MARKET
PREDATORY THINKING
10
What is it? A concise definition of predatory marketing:Identifying the weakness that arises out of your competitor’s greatest strengths and using these to your advantage. It means growing at the expense of your competitors’.
This is a different way of thinking as there is a temptation to simply copy existing brands and communications; but you need to avoid merely looking for parity with your competitors.
Comparing your strengths with your competitors’ allows you to focus on your relative strengths and grow them at your competitors’ expense. A good example of this is Burger King vs. McDonald’s. Initially the market was dominated by McDonald’s, whose key strength was their consistency. Burger King focused on this strength and grew their market by offering the ability to customise your burgers.
Predatory Thinking
Inflict the greatest damage and make response difficult.

KNOW YOUR MARKET
PREDATORY THINKING
11
Repositioning the Competition
Nutri-Grain was winning the battle between these two cereals by using the positioning of Nutrition vs. Iron Man Food. Weet-Bix looked at their relative strengths and found the following piece of information:
• Weet-Bix = 3.2 % sugar• Nutri-Grain = 32% sugar
They then used advertising, comparing the amount of sugar in Nutri-Grain to various unhealthy snacks to reposition the battle towards low sugar vs. high sugar.
VS.
It ran for 10 days, they spent $1 million media: $50 million to bottom line
The result?
Sugar ContentLow High
Weet-Bix Nutri-Grain

KNOW YOUR MARKET
PREDATORY THINKING
12
A Case Study on Repositioning: Skins
ObjectivesTo increase sales per year by 100%, to increase distribution, to become market leader in the athletics undergarment category by 2006 and to make the brand famous.
Skins decided it needed to break away from the elite athlete market and attract the much larger audience of “gym junkies”, runners, tennis players and cricketers. To do this they would have to overcome the following challenges:
• Limited budget - their annual budget was equivalent to one monthly spend for some of the competition
• High product cost - cost per unit was $50-60 higher than the competition • Getting men into tights • Getting the brand known • Battling against the big name competitors
The campaign was based on two insights: “Sports stars as a group are not our heroes” and “we’ve become a little cynical about celebrity endorsements”. Skins doesn’t pay sport stars to wear their products, elite athletes pay Skins.
The ResultThe result was an ROI of 694%. Skins sales were up on average 454% year-on-year and the total number of annual distribution outlets 570%.

KNOW YOUR MARKET
COMPETITIVE ENVIRONMENT
13
Predatory Tools of the Trade
When taking on the market leaders in your category, you need the right tools. The tools on the following pages will help you structure your business and marketing for maximum predatory impact.
They are:
• SWOT Analysis• Competitive Mapping• Innovative Entrant Modelling• Competitor Reaction Modelling• Best Practice, Next Practice• Competitor Match-Up• Competitor Duke Out• Driver Correspondence Mapping

KNOW YOUR MARKET
COMPETITIVE ENVIRONMENT
14
SWOT Analysis
STRENGTH WEAKNESS
OPPORTUNITY THREAT
A SWOT analysis is a great tool to help forge a direction for your company in the context of your current market situation.
Conduct a SWOT analysis for yourself and also for your competitors, allowing you to predict and prepare for their next move while making your own.

KNOW YOUR MARKET
COMPETITIVE ENVIRONMENT
15
Competitive Mapping
You can use this tool to help map out exact-ly who are your competitors. This will help you gain a better picture of exactly who your competitors are.
Direct Competitorssame noun and verb
Economicdifferent noun/verb
Alternativesame noun
different verb
Substitutedifferent noun
same verb
Noun = NameVerb = Action

KNOW YOUR MARKET
COMPETITIVE ENVIRONMENT
16
Competitive Mapping Example: Hybrid Cars
Direct Competitorssame noun and verb
Economicdifferent noun/verb
Alternativesame noun
different verb
Substitutedifferent noun
same verb
Noun = NameVerb = Action
Honda Civic HybridToyota Prius
Carbon BankingGreen Housing
Holden AstraFord Focus
Public TransportScooterBicycleWalking

KNOW YOUR MARKET
COMPETITIVE ENVIRONMENT
17
Competitive Mapping: Gloria Jean’s Coffee
Direct Competitorssame noun/verb
“Espresso Coffee”
Economicdifferent noun/verb
Alternativesame noun
different verb“Quick Coffee”
Substitutedifferent noun
same verb“Caffeine Hit”
Noun = NameVerb = Action
StarbucksMcCafe
Coffee ClubMichel’s
Local cafe
Snacks Soft drinks
Better lunch Petrol
Cigarettes
Instant coffeeFiltered coffee
Caffeine soft drinkTea
Easy Way “bubble drinks”

KNOW YOUR MARKET
COMPETITIVE ENVIRONMENT
18
Innovative Entrant Modelling
Entrant 1 Entrant 2
Entrant 3 Entrant 4
Often a brand’s strength or weakness only shows up in the light of a truly strong competitor. Thinking about what a truly innovative brand might do if they entered your market may give you a chance to pre-emptively defend against not only your current competitors but the broader competitive set. To use this tool you pick an entrant and decide: given their brand what would they do if they entered the market? Then see if this can give you any ideas or opportunities. Repeat for 4 entrants. E.g: Google, Apple, Virgin, Aussie Home Loans, Harry Potter, Tesco, YSL, Sass & Bide, Chanel, Armani, Ferrari etc.

KNOW YOUR MARKET
COMPETITIVE ENVIRONMENT
19
Competitor Reaction Modelling
Competitor 1 Competitor 2
Competitor 3 Competitor 4
Use the same process as the previous page, but use your current competitors. How might they react or counterstrike against any major marketing positionings, initiatives or promotions that you bring to market? Does this give you any ideas or opportunities?

KNOW YOUR MARKET
COMPETITIVE ENVIRONMENT
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Best Practice, Next Practice
Choose an industry completely unrelated to yours. Evaluate interesting concepts they have implemented and consider how these could be applied to your business.
Interesting idea or practice from an unrelated industry
How could this idea be adapted and implemented in your industry?
The Idea Generator, Ken Hudson 2007

KNOW YOUR MARKET
COMPETITIVE ENVIRONMENT
21
Competitor Match-Up
What is your selling proposition? What are your strengths? What are your weaknesses?
What is your main competitor’s selling proposition? What are their strengths? What are their weaknesses?
The Idea Generator, Ken Hudson 2007

KNOW YOUR MARKET
COMPETITIVE ENVIRONMENT
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Competitor Duke Out
You’re operating in a competitive environment. You need to know what your competitors are saying so you can either trump or nullify them. Start by filling out what your competitors are saying and then work out your response.
THEM US

KNOW YOUR MARKET
COMPETITIVE ENVIRONMENT
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Driver Correspondence Mapping
This tool allows you to prioritise marketing and communications on particular messages, given a market context. To use this tool effectively you first require a list of all the features that add value to your customers. For each one you need to know how important that is to your customers currently, from minus 10 to plus 10. You also need to know relative to your competitors whether it’s a relative strength or weakness from minus 10 to plus 10. Once you have that information you put the corresponding feature in the box according to its customer importance from minus 10 to plus 10.C
onsu
mer
Im
por
tan
ce
Parity
Fix
Market Leader (+ve)
or Brand Share (-ve)
Communication Keys
Lower Priority Education
+10
-10
Rel. Weakness Rel. Strength-10 +10

9 BUSINESS GROWTH STRATEGIES

KNOW YOUR MARKET
9 BUSINESS GROWTH STRATEGIES
25
9 Business Growth
Strategies
9 Business Growth
Strategies
Dr J Sheth and G Morrison
1. Entrenchment
2. Switching to Intermediaries
3. Mandatory Consumption
4. Going International
5. Broadening Horizons
6. New Applications
7. New Situations
8. Repositioning
9. Redefining Markets
Winning Again in the Marketplace: Nine Strategies for Revitalizing Mature Products, J Sheth, G Morrison 1984

KNOW YOUR MARKET
9 BUSINESS GROWTH STRATEGIES
26
1. EntrenchmentIncrease your market share by removing business from your competitors
2. Switching to IntermediariesRather than marketing directly to your primary consumers, sell the product to “intermediaries”, people who can resell the product more efficiently
3. Mandatory ConsumptionThis is only viable if environmental change is positive for the consumer. It involves manipulating the market so the consumer views the product as a necessity, i.e. lead-free petrol is a necessity
4. Going InternationalSell your product globally. This works well when your product is universal and relevant to a variety of cultures
5. Broadening Product HorizonsExpand the product’s use by investigating possible secondary uses, i.e. originally orange juice was viewed as a drink only for breakfast. Juice companies broadened their horizons by marketing it as a healthy alternative to soft drink
9 Business Growth
Strategies
Winning Again in the Marketplace: Nine Strategies for Revitalizing Mature Products, J Sheth, G Morrison 1984

KNOW YOUR MARKET
9 BUSINESS GROWTH STRATEGIES
27
6. New ApplicationsFirst identify the functional purpose of your product, then identify other purposes and apply these new purposes to create product growth, i.e. baking soda is not only a cooking product, but a cleaning product with a variety of different applications
7. New SituationsFor a product to be revitalised, new situations to market the product need to be explored. The product or service may need to be marketed to a new place or given a new image. For example, the refrigerator was revitalised when a smaller version was released for use in an office or as a convenience product, not just a necessary one
8. RepositioningThis is the process of revitalising a product’s image so that it applies to new markets. When successfully implemented, repositioning can create greater product sales. For example, Campbell’s Soups successfully repositioned its soups from being a side dish to a healthy main meal, as a result gaining a broader market of health conscious but busy adults
9. Redefining MarketsThis is an extreme version of repositioning, where an entirely new market is sought for a mature product, rather than just a new segment within the existing market
9 Business Growth
Strategies
Winning Again in the Marketplace: Nine Strategies for Revitalizing Mature Products, J Sheth, G Morrison 1984

KNOW YOUR MARKET
9 BUSINESS GROWTH STRATEGIES
28
Implementing the Strategies
Sometimes this can be the harder part. Use the points below to help keep yourself on track
Remain consistentWhen changing one aspect of your market mix ensure you alter all parts accordingly
Work towards win-win outcomesDo not sacrifice the needs of your customer; instead, make changes at the expense of your competition
Test your ideasUse market tests to ensure your ideas are being implemented appropriately
Embrace entrepreneurial activitiesCreate a risk-taking atmosphere by rewarding success, not punishing failure
Winning Again in the Marketplace: Nine Strategies for Revitalizing Mature Products, J Sheth, G Morrison 1984

COMPETITIVE ENVIRONMENT

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COMPETITIVE ENVIRONMENT
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Trend ScanningWebsites like these can help you keep up your scanning...
www.trendwatching.com Scans globally for emerging consumer trends
www.shapingtomorrow.comHorizon scanning and strategic thinking. It is a trends research tool and management site that helps organisations anticipate the future
www.google.com/trendsGives insights into broad search patterns
www.google.com/zeitgeistAggregates search queries and gives search tools to give insights into trends
Futurist Trends

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COMPETITIVE ENVIRONMENT
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PEST
Political Economic
Social Technological
Rather than just giving a snapshot of your current market, it prompts for influences for your market. Worthwhile doing to get a future view...

KNOW YOUR MARKET
COMPETITIVE ENVIRONMENT
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Futures Tunnel
This tool looks at the relationship of competitive and environmental forces over time. It’s great for plotting brand development as well as communications.
Historical forces refer to a brand that has significant history within a market and looks at traditional customers, distribution channels, product mix and competitors. Historical forces also capture all relevant case studies and examples of what’s worked in the past and why.
Current impacts review all factors currently infusing the brand, e.g. media spend and current share of voice, competitive landscape, the consumer, awareness and relationship to the brand, the brand’s current communication mix, current business performance and impact of related and international markets.
Future considerations looks at goals and objectives, trends, trend implications and potential shifts in competitive landscape.
Category fragmentation or rationalisation.
Historic Forces
Current Impacts
Future Considerations

KNOW YOUR MARKET
COMPETITIVE ENVIRONMENT
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Trends ResearchWhat’s the future
looking like?

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COMPETITIVE ENVIRONMENT
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The Future
2. Probable
3. Preferred1. Possible
What’s the Future looking like?
What’s most likely to happen in the next 10 years?
What would we like to happen and how can
we help this eventuate?
What might happen in the next 10 years?
When working with a futurist they would generally ask you to look at 3 different futures...

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COMPETITIVE ENVIRONMENT
35
The Future
Society
ConsumerTechnology
What’s the Future looking like? cont...
...and then look at those 3 futures in the context of society, the consumer and technology

KNOW YOUR MARKET
COMPETITIVE ENVIRONMENT
36
Consumer Trends
The Future: Consumer Trends
Peer-to-peer connectivity
Forever young
Materialism
Self-enhancement
Eco-friendly
Wellness trend becomes unisex
SinglenessInformation overload
Desire for “realness”
Lifestyle balance becomes focus
Smallness is the “next big thing”
Demographic urbanisation and ethnic diversity
Value trust
Superficially happy
Filter to survive

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COMPETITIVE ENVIRONMENT
37
Some Consumer Trends
Demographic shiftsPopulations are ageing, urbanising and becoming more ethnically complex
Forever youngPeople being 30 and acting 20, being 40 and acting 30, being 50 and acting 40
Peer-to-peer connectionBlog explosion, more virtual friends and everyone being connected by six degrees of separation (or less!)
Shift in focusThe above represents a shift in focus from work life to releasing pressure, meeting others, feeling empowered and self-expression
Data mobilityMassive capacity for centralised data with many mobile access points. People expect to be able to access and consume information wherever they are
Customisation and personalisationFrom fashion and pop-culture to Google searches, we are seeing a massive surge in personalisation
Self-enhancementLearning and education used to be only for “getting ahead” and career enhancement, but are now being completed simply for bettering oneself. Attached to this is the explosion of art classes, musical instruments, cooking and languages as hobbies
WellnessWellness, which started being led by females, transversed and has become more unisex. This is an underlying initiating pillar of the long-term trend of balance. Spa, yoga, pilates, treatments and retreats: care, pamper, revive and “slow down” are all now parts of life
Smallness is the “next big thing”People are seeking comfort, simplicity, a desire for intimacy, being surrounded by a few close friends, familiarity, safety and security. Brands like Motorola, Heineken, Virgin and Puma are “acting” small to tap into this
Desire for “realness”A desire for realness reflected in movies, TV, fashion, media and spokespeople. Consumers are looking for the “real” face of brands and asking for transparent and genuine behaviour

KNOW YOUR MARKET
COMPETITIVE ENVIRONMENT
38
Technology Trends
The Future: Technology Trends
Perpetual upgrades
The pipe gets larger
Search 4.0
Smarter machines
We live in Real Time
Smarter content
True mobility
Data is about “pulling”not “searching”
The Cloud:All data, all devices,always connected
Technology increasinglyhumanised and intuitive
Success is about meaningful ways to connect
Technologies merge (iPhone: phone, Mp3, GPS, Internet)
New technology unanticipated
Intuitive technologies will win

KNOW YOUR MARKET
COMPETITIVE ENVIRONMENT
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Business adaptationA constant supply of new software upgrades, as seen by the evolution from Microsoft 98 - 2000 - XP - Vista...
Increased intelligenceTechnologies such as t9 word on cell phones and auto fill search engines learn your personal preferences, in a sense predicting your thoughts
WirelessThe wireless industry is growing in huge numbers. Wireless semiconductors represented about 21% of the semiconductor industry in 2004 and should be one of the fastest growing semiconductor end markets over the long run as innovations in satellite, WWAN, WMAN, WNAN, WLAN, and WPAN are introduced (Morgan Stanley)
Technology Trends
The CloudSwitching to Internet is paired with mass data storage in a form called the “Cloud”. The Cloud is mass data storage which you can connect to and access through the Internet. The market for Cloud computing swelled to an estimated $36 billion (Bt1.24 trillion) in 2008, representing roughly 13% of global software sales (The Nation)
Size optionsReaction to consumers’ demand for convenience forces changes in size and power of laptops and desktops, television sets and Mp3s
Technologies mergeMore examples: MP3/DSC, LCD TV/DVD/DVD-R/DVR, PSP (Morgan Stanley)

KNOW YOUR MARKET
COMPETITIVE ENVIRONMENT
40
Society Trends
Increasing work stress
The information economy grows
Globalisation and localisation
Extreme urbanisation
Natural resources dwindle
Environmental consciousness
Technology develops
The way we shop is/has/will change
Reworking of industry
Family, peace & freedom
Everybody worksin design
Transparency andaccountability increase
Mass mingling online encouraging real-world meet up
Ageing population
Big businesses are “out of touch”
The Future: Society Trends

KNOW YOUR MARKET
COMPETITIVE ENVIRONMENT
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Society Trends
Ageing populationBy 2036 it is projected that ¼ of Australians will be over 65
The information economy growsThe concept of “the one”, with everyone and everything connected
Globalisation and localisation (the counter-trend)Globalisation encourages people to seek and experiment, whereas localisation encourages people to identify with, and participate in, the local environment
Reworking of industryInnovation becomes the most critical factor in success. This leads to the blurring of corporate borders as networked ecosystems of producers and consumers emerge
Natural resources dwindleLeading to a focus on sustainability
Transparency and accountability increasePeople demand businesses to be open and responsible
Technology developsGeography and location lose importance. Practices of work, leisure and love change, for example 12% of US newlyweds met online last year, 2 billion people use cell phones globally, 9 trillion emails are sent each year and there are more than a billion Google searches a day (more than half not in English). The main technology trends that will continue are WIFI - WIMAX, Internet TV, video streaming into everything, bluetooth on the fly and digital home explosion

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COMPETITIVE ENVIRONMENT
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Trend Implications
Consumer PowerConsumers have infinite resources and techniques to unearth and expose the fake, the untrue, the phoney and the scripted. This means that inauthentic companies can no longer get away with fakeness
IMPLICATION: 87% of purchases are first researched online*
3rd party unbiased endorsements are considered to be 3 times more credible than paid advertisements87%
13%
{Purchase researched online
*Clive Hamilton, The Australia Report 2009

KNOW YOUR MARKET
COMPETITIVE ENVIRONMENT
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A Possible Future where...
Easier to Reach Prospects Real Trust Belongs to Unbiased Partners
Harder to Connect

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COMPETITIVE ENVIRONMENT
44
A Probable Future where...
Stories are King Everything is Faster Even Muesli is Personalised

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COMPETITIVE ENVIRONMENT
45
A Preferred Future where...
Companies doing the Right Thing are Rewarded
Consumer Choice is Easier
2020

7 TECHNOLOGIES SHAPINGTHE FUTURE OF SOCIAL MEDIA

KNOW YOUR MARKET
FUTURE OF SOCIAL MEDIA
47
The Arduino is a small circuit board commonly used in prototype electronics. Arduino will help household items become involved in our social media world. It has allowed one man to create a device attached to a chair that tweets at the presence of noxious natural gases (ahem), another uses Arduino to monitor when his cats are inside the house or out, and a small bakery and cafe in East London is now able to tweet what’s fresh from their oven.
The Arduino
RFID Tags and Transponders
Transponders such as Radio Frequency Identification (RFID) tags are truly breathing life into our objects. For a number of years RFID tags have been used in passports, ID cards, travel cards and credit cards as a means to identify us when scanned, and they are used commercially for inventory tracking. RFID tags have potentially valuable real-world applications.
Technologies Shaping the Future of Social Media

KNOW YOUR MARKET
FUTURE OF SOCIAL MEDIA
48
The compass is hardly new – it’s been around for thousands of years – but Yamaha has created a tiny 2mm x 2mm chip intended for use in mobile phones as a compass. When used in conjunction with GPS, AGPS or Wi-Fi triangulation and an accelerometer, a compass heading could be extremely useful to give more granular positioning data to mobile applications.
Geomagnetic Sensors in mobile devices
Optical Pattern Recognition and Augmented Reality
At some point, Optical Pattern Recognition tools might be able to tag every photo in an album automatically by recognising faces and objects in photos. Biometric Face Recognition technology is already used by police and security services to help identify known criminals.
Technologies Shaping the Future of Social Media

KNOW YOUR MARKET
FUTURE OF SOCIAL MEDIA
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OpenID lets users use a single set of login credentials for every site they visit. Once you’ve authenticated, a second open protocol called OAuth will help you share data about yourself with other sites you use. OAuth lets you grant authorisation to sites to collect data from other places you participate online. And it will allow you to share your entire identity graph information from your profile to your contacts to your lifestream. Together, these technologies could essentially eliminate the need to fill out forms and register for sites all together.
OpenID, OAuth and the Identity Graph
Mind Reading
The idea of being able to control an interface without the use of your fine motor skills has massive implications for human computer interaction. Consider the ability to tweet what you’re thinking without having to pull your phone out of your pocket, type your message and hit send. Imagine being able to think “Facebook” and your screen presents you with an overview of your friend’s activity stream.
Technologies Shaping the Future of Social Media

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FUTURE OF SOCIAL MEDIA
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Natural Language Processing seeks to automatically categorise and understand that which humans understand with ease. By doing so, computers will be able to understand the requests and needs of their human users far better. Of course, talented programmers can already tell their computer to do things with ease, but the rest of us would benefit from applications that understand our curious ways of speaking.
Natural Language Processing
Technologies Shaping the Future of Social Media

KNOW YOUR MARKET
BINARY ANALYSIS
51
Where’s the growth?The simple fact is that more ads does not equal more money to spend!
There are only 2 ways to increase sales...
1. Getting new people to use your product, either by:• entering the category, or• switching from your competitor
OR
2. Getting existing customers to use more of your product, either by;• increasing their frequency of purchase, or• increasing their basket size
BinaryAnalysis
“Getting new people to use your product OR getting existing customers to use more of your product”

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BINARY ANALYSIS
52
Binary Analysis
The below shows the various choices you have when looking to increase sales.1. Are you looking to grow the market or increase your brand share?2. Are you looking for this increase to come from current users of your product, or from triallists, or new entrants?3. Do you have a branding message or a unique selling proposition?
Performing a binary analysis will allow you to target your communications to the group most likely to increase your sales.
Market Growth
BrandShare
Current Users Triallists
Branding USP Branding USP
Triallists
Branding USP Branding USP
Market Leader should normally look to grow the market
Will join the category from the next most attractive alternative e.g. If you are selling soup for lunches, this group may currently be eating sandwiches
These are currently your competitors’ customers
Be honest if you have no real USP and make your branding strong!
Current Users

KNOW YOUR MARKET
PREDATORY THINKING
53
COKE VS. PEPSI

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BINARY ANALYSIS
54
Market Growth
Current Users Triallists
Branding USP Branding USP
1. Coke started the cola boom with branding and rapidly grew the market
Coca-Cola’sMarket Share
100%

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BINARY ANALYSIS
55
2. Pepsi came in and tried to do the same thing, but just drove Coke’s share
Coca-ColaGrowth
Pepsi’sMarket Share

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BINARY ANALYSIS
56
3. Meanwhile, Coke tried to attack Pepsi with “the real thing”
Market Growth
Current Users Triallists
Branding USP Branding USP

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BINARY ANALYSIS
57
4. Pepsi changed tact and took Coke’s share with the “Pepsi Challenge”
Market Growth
Current Users Triallists
Branding USP Branding USP

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BINARY ANALYSIS
58
5. Coke then went back to growing the market with, “I want to buy the world a Coke”. As everyone had tried, they focused on current users’ increased frequency... “buy one
for a friend”, “turn up to a party with a Coke”
Market Growth
Current Users Triallists
Branding USP Branding USP

The End

Congratulations on completing Book 2: Know Your Market
The next book in the Brand Box series is Book 3: Know Your Consumer
Contact us to get yourself a copy stepchangemarketing.com | +61 2 8028 6405 | [email protected]
The Brand Box series