Marketing in the “New” Economy Int’l Marketing CRM Service Marketing Internet Marketing.

Marketing in the “New” Economy

Int’l Marketing

Int’l Marketing

CRMCRM CRM CRM

Service MarketingService

Marketing

Internet MarketingInternet

Marketing

The Internet is the most important single business revolution in our lifetime. Jack Welch, Former-CEO General Electric

WORLD W3 STATS

W3 Users- Today– 1.4+ Billion

http://www.internetworldstats.com/stats.htm

First Concern

o Keep “Internet Marketing” in perspective… As to which “e-commerce domain” you are talking about

o What you are doing, how it is doing & how you do it– depends on what domain you are talking about

e-Commerce Domainse-Commerce Domains

PricelinePriceline

B2G business to Gov’t.

B2G business to Gov’t.

(person to person) P2P E-BayE-Bay

http://www.b2gplace.com/index.cfm?

http://www.b2gplace.com/index.cfm?

B2C = Billions B2B = Trillions

US CENSUS BUREAU- E-Stats

B2B=93% of E-Commerce

•MFGRS=$1,568B

•MW= $1,148B

B2C•Retail= $107B

•Services=$114B

http://www.census.gov/eos/www/2006/2006reportfinal.pdf

2nd Concern

The principles & practices of website design & marketing

have evolved…

From-Web 1.0

•Sites tend 2b read-only static pages & files..

.. click a page & wait. were huge, bloated & buggy

•The desktop PC & operating system reigned supreme.

•The paradigm is all about folders & directories.

•Marketing rooted in Mass Media Techniques

To-- Web 2.0:

Web 1.0(1993-2003)

HTML pages viewed thru a browser

Web 2.0(2004- to date)

“content” shared – interactive Exchange;

“Read” Mode “Write” & Contribute

“Page” Primary content “Post / record”

“static” State “dynamic”

Web browser Viewed through… Browsers, RSS Readers, anything

“Client Server” Architecture “Web Services”

Web Coders Content Created by… Everyone

“geeks” Domain of… “masses”

Web 1.0 - Web 2.0 - Web 3.0

http://youtube.com/watch?v=5it8oBMbPrg&feature=related

http://youtube.com/watch?v=5it8oBMbPrg&feature=related

http://www.barackobama.com/ Got Web 2.0?-"

What 2.0 means for Marketers

» Listen more, shout less.

» Become part of the community.

» Successful marketing means ceding control.

» See yourself as facilitator, not just producer / provider

If you are still using banner-ads to drive people to static web sites –then:

Web 1.0- Site Promo = 2nd Wave Advertising

W3- AdvertisingPROACTIVE

REACTIVE

PERSONALIZED BROADCAST

AD BANNERS

INTERSTITIALS

WEB SITES

POP-UPS

SPONSORSHIP

TARGETED EMAIL

UNSOLICITED EMAILSPAM

Web 2.0 Key Change for Marketers

.. users connecting to each other & content—

thru networked, peer-driven activities & content

Web 2.0 makes marketing a conversation

• Readers comment on your blogs• They change your wikis• The create blogs of their own• They create “hate” sites if they

don’t like you• They produce mashups of your

content and functions

Web 1.0 users were consumersWeb 2.0 users are participants

Provide W3 based Services & open source (not packaged/proprietary) software

Use Peer production, Networking & Collaboration -trust users as co-developers

Harness Collective Intelligence

Leverage economies of the Long Tail





2.02.0

>

W3 based services & open source software

•blogging tools

•survey tools

•newsletter tools

•registration tools

• payment tools

•Wikis:

•Project mgmt:

•Office 2.0 applications:

•Google Apps

W3 based services & open source software

W3 based services & open source software- is why Google is a $140 billion Company

Mashup (web application hybrid)A mashup is a website or web application that seamlessly combines content from more than one source into an integrated experience

Copyright © 2006 Active Web Solutions Ltd

…enables collaborative

creativity

W3 based services & open source software:

http://www.youtube.com/watch?v=ZRcP2CZ8DS8

http://www.mapskrieg.com/view









2.02.0

>

Build a community of like-minded individuals

Some of the tools =•Yahoo/Google groups•MySpace•FaceBook•Cyworld groups•Second Life!•Drupal•Plone •Expression Engine

likeminded people like Dog Lovers

http://www.dogster.com/

Peer production, Networking & Collaboration … collaborative publishing

Wiki is a piece of server software that allows users to freely create and edit Web page content using any Web browser

http://wiki.ehow.com/Repair-a-CD-Using-Toothpaste

http://www.youtube.com/watch?v=-dnL00TdmLY









2.02.0

>

Digg.com members “vote” for stories to

appear on home page… enables

collaborative evaluation &

recommendation

Harnessing Collective Intelligence

http://digg.com/

… enables collaborative research & organization

Harnessing Collective Intelligence

http://del.icio.us/

http://www.youtube.com/watch?v=x66lV7GOcNU









2.02.0

>

The Long Tail: For Marketeers

The Long Tail: For Marketeers

http://youtube.com/watch?v=Abf8ySWVJuA&feature=related








Wine.com

http://www.wine.com/

Top 10 Forecasts,

2008

Let’s get right to it….

The Near Future: Marketing

Considerations

The Near Future: Marketing

Considerations

“In today already walks

tomorrow.” Friedrich von

Schiller

Welcome to the Future

Real time data mining— conducted ‘round the world 24/7/365

On-going Consumer input & generated content

Marketing messages constructed “on the fly”-and delived thru integrated & individualized communication channels…

Analytical marketing skills and processes will be paramount

Career Competencies Needed by New -Marketers…

Traditional Skills Sales mgt Advertising mgt Sales promotion

mgt Marketing

research Pricing

Traditional Skills Sales mgt Advertising mgt Sales promotion

mgt Marketing

research Pricing

PLUS: Customer relationship

management (CRM) Partner relationship

management (PRM) Marketing Resource Mgt.:

Database Mgt & Data-mining Lifetime Profitability

analysis by segment, customer, channel

Integrated marketing communications; Public relations -(including event & cause sponsorship, buzz marketing)

PLUS: Customer relationship

management (CRM) Partner relationship

management (PRM) Marketing Resource Mgt.:

Database Mgt & Data-mining Lifetime Profitability

analysis by segment, customer, channel

Integrated marketing communications; Public relations -(including event & cause sponsorship, buzz marketing)

From Decision Support to Decision Automation: A 2020 VisionRandolph E. Bucklin, Donald R. Lehmann, and John D. C. Little; In coming decades, a

growing proportion of marketing decisions will be automated by ever-more-powerful combinations of data, combinations of data, models, and models, and computers.computers.

New age of marketing decision support will usher in an era of decision automation.

In coming decades, a growing proportion of marketing decisions will be automated by ever-more-powerful combinations of data, combinations of data, models, and models, and computers.computers.

New age of marketing decision support will usher in an era of decision automation. Marketing Resource Mgt

User Interface

WorkflowCollaboration

ContentManagement

Marketing Functionality

Marketing Context

Living Tomorrow –

Got Milk?

Got Pants?

Watching TV

Washing Clothes

Going to the Bathroom

Going to Bed

& Most Significantly:

Decision Support & Automation Systems- will be implemented within the consumer as well as business environments--

& Most Significantly:

Decision Support & Automation Systems- will be implemented within the consumer as well as business environments--

Why bother with the future

"If you think that you can run an organization in the next 10 years… … as you've run it in the past 10 years…

you're out of your you're out of your mind."mind."

CEO, Coca Cola

““When the rate When the rate of change of change

outside your outside your company company

exceeds the exceeds the rate of change rate of change

inside your inside your company, company, disaster is disaster is imminent”imminent”

Lou Pritchet Senior VP, Procter & Gamble

Looking to the future:common mistakes Making predictions rather than

attaching probabilities to possibilities

Simply extrapolating current trends

Thinking of only one future

“When faced with a totally new situation we tend to attach ourselves to the objects of the most recent past.

Marshall McLuhan

We look at the present through a rear view mirror”

Looking to the future: common mistakes

People consistently Overestimate the effect of short term change

& Underestimate the effect of long term change.

Ian Morrison,

former president of the Institute for the Future

Consider the "

Historical Record of Inane Inac

curacies " ”

http://www.cbpp.uaa.alaska.edu/afef/Inane-inacc.htm

http://www.cbpp.uaa.alaska.edu/afef/Inane-inacc.htm

Effective Forecasting - The Desired vs The Likely

http://youtube.com/watch?v=c-eTGJbCnkE




The best way to predict the future is to invent it–

Alan Kay--‘Father’ of the PC and GUI interface

R E A C T I V E

C R E A T I V E

Change how you “C” things!

The point is not so much to predict “the” future…

but to prepare for various contingencies

Based on the logical extension of established trends

The point is not so much to predict “the” future…

but to prepare for various contingencies

Based on the logical extension of established trends

How best to prepare for the future

0%

10%

20%

30%

40%

50%

60%

70%

80%

%of GNP

1850 1950 2050

AgricultureManufacturingServices

Some things are clear--

How best to think about the future

Think of the drivers of change

Use the drivers to imagine different scenarios of the future

Imagine perhaps three; each should be plausible but different

Extrapolate back from those future scenarios to think about what to do now to prepare

What occurred in past few decades to precipitate a

paradigm shift in Marketing…

From product to customer centered

From mass to micro strategy

From customer acquisition to retention

From regarding marketing as a function to envisioning it as a philosophy

Enabled by TechnologicallyPrecipitated by GlobalizationNecessitated by Consumers

technology convergence is fueling a new economy

Computing Computing TechnologiesTechnologies

Communication Communication TechnologiesTechnologies

Content Content TechnologiesTechnologies

The resulting Techno/Info-sphere is re-defining the business landscape for the 21st

century

COMPUNICATIONS

COMPUNICATIONS

CONVERGENTTECHNOLOGY

Socio/Psycho-

Graphic

DIVERSITY

Future Marketing Environme

nt

NONCONVERGENTTECHNOLOGIES

Socio/Psycho-Graphic

HOMOGENEITY

Past Marketing Environme

nt

TechnoSphere DriversTechnoSphere Drivers

Ubiquitous- Imbedded Intelligence

Ubiquitous- Imbedded Intelligence

Information technology will transform our day-to-day lives.

"The big trends - are the availability of cheap sensors that provide digital data, cheap computing power and ubiquitous connectivity - the ability to connect to networks,"

by 2020 everything large enough to carry a microchip probably will, and from there the possibilities are endless.

http://www.guardian.co.uk/2020/0,15047,1299021,00.html

Imbedded intelligence & low-cost omnipresent bandwidth

3G videophones w/ broadband – 2 megper second –

AI Enhanced PDA devices w/ speech recognition & avatars

RFID – everywhere & in everything

Borders have become meaninglessBorders have become meaningless

Trans-National* Cross-Cultural

High Speed/ Low Cost

Transportation & Communication

The entire globe is now tied

together as a single

community operating 24/7/365

The Compunications DriverThe Compunications Driver

The further, faster, easier, cheaper & more frequent people are able

to travel & communicate…

the greater the amount of interaction &

influenceThe greater the degree

of Globalization

20th CenturyHomogenous Consumers

21st CenturyFragmented Consumers

% o

f p

op

ula

tio

n

% o

f p

op

ula

tio

n

Extreme shifts in:

AgeWealthEthnicity CultureLifestage patterns Household compositionValue systems

Source: IBM Institute for Business Value analysis

Consumer values are fragmenting

X+ generation=techno-savvy accessing information whenever & wherever they want itProduct knowledgeThird-party commentary Ubiquitous networkingNext-generationmobile devices

Advanced infomediaries

Source: IBM Institute for Business Value analysis

& Info Savvy

Source: (1) GMA Forum, “Do We Have a Crisis in Brand Management,” Q3 2003; (2) Forrester Research, “Privacy for Sale,” 11 Jun 02; IBM Institute for Business Value analysis

Blocking Out, Shutting Down

Overexposed & “on” to marketing

Ignore irrelevant, low-value messages

Actively block unsolicited communications

Becoming more complex--age, sex & income

reversals

Becoming more self-centered & Home centered

Have less time & more choices

Are less brand loyal

More connected & more informed

Have lower attention spans

& higher expectations

Are living & shopping more

for today…Less long range

planningSeeking new/ heightened sensation

& experiences

Today’sConsumers

Preparing for the Future:

A Quick N’ Dirty Environmental Scan

• “By 2015, desktop operating systems will be largely irrelevant. •The Web will be the only OS worth coding for.• It won't matter what device you use, as long as it runs on the Web OS.•You will reach the same distributed computer whether you log on via phone, PDA, laptop, or HDTV”

The "global brain” is

beginning to emerge

We are the web—Kevin Kelly-Wired magazine-August 2005

Within a quarter century,

nonbiological intelligence

will match the range and subtlety of

human intelligence

The Singularity is Near

http://www.singularity.com/

http://www.singularity.com/

rise of…atomic & molecular computersquantum computersnanotechnologyoptical computers DNA computers–or even a “computer in a pen”

Age of Silicon is at

an end!

http://www.youtube.com/watch?v=iKTBlQsxmN0

More Concerned w/ Corporate citizenship

More Eco-conscious

Expect immediate personalized attention

Health #1

Very tech savvy

70% music & books bought

online

shopping more on impulse…

High levels dissatisfaction w/

retailing

TomorrowsConsumers

http://www.youtube.com/watch?v=H48MD7V6x90

http://www.youtube.com/watch?v=H48MD7V6x90

0%

10%

20%

30%

40%

50%

60%

70%

80%

%of GNP

1850 1950 2050

AgricultureManufacturingServices

Some things are clear--

The Global Village

The Global Economy

The Global Corporation


•Growing divergence between those employed in highly skilled, highly paid

professions, and those at the bottom .. The economy of work.. will be increasingly hourglass-shaped. "At the top end of the jobs hierarchy, people are likely to enjoy substantial discretion over their hours, places and patterns of working time…

•Outsourcing, … will continue. Reservation agents, computer programmers, database managers, financial analysts - all those whose jobs that depend, in part, on an ability to master repetitive tasks performed on a computer - will have been relocated abroad. "Only the customer-facing jobs will be left,"

•Growing divergence between those employed in highly skilled, highly paid

professions, and those at the bottom .. The economy of work.. will be increasingly hourglass-shaped. "At the top end of the jobs hierarchy, people are likely to enjoy substantial discretion over their hours, places and patterns of working time…

•Outsourcing, … will continue. Reservation agents, computer programmers, database managers, financial analysts - all those whose jobs that depend, in part, on an ability to master repetitive tasks performed on a computer - will have been relocated abroad. "Only the customer-facing jobs will be left,"

Toffler, The Third Wave, p. 410

the collapse of consensus

In 2nd Wave society a political leader could glue

together half a dozen major blocs, as Roosevelt did in

1932, and expect the resulting coalition to

remain locked in position for many years.

the collapse of consensus

Today it is necessary to plug together hundreds, even thousands, of tiny, short-lived special interest groups… that cleave together just long enough to elect a president, then break apart again the day after the election, leaving him without a base of support for his programs

“In all likelihood it will require the radical overhaul –or even scraping-of:

.. all the unwieldy & unworkable apparatus of supposedly representative governments”…

“In all likelihood it will require the radical overhaul –or even scraping-of:

.. all the unwieldy & unworkable apparatus of supposedly representative governments”…

Toffler- The 3rd Wave


“The onward march of individualism - either through choice or fate - is still probably

the major force shaping our world”

“The onward march of individualism - either through choice or fate - is still probably

the major force shaping our world”

The central question is: Will the slow collapse of institutions that have been vehicles for our shared identity mean

collapse of identity itself?

Frontline- The Persuaders

Marketing in the “New” Economy Int’l Marketing CRM Service Marketing Internet Marketing.

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