Trends Influencing Traditional Approaches to Marketing

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ISSUE 1 VOL 1

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It's chaotic out there. Slow down and breathe. It's time to rethink traditional approaches to marketing. Our inaugural issue provides a brief overview of some of the different trends that are influencing how marketers connect with their audience.

Transcript of Trends Influencing Traditional Approaches to Marketing

Page 1: Trends Influencing Traditional Approaches to Marketing

ISSUe 1VOL 1

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+ ISSUe1 VOL1

ICCONTENT

Collide Labs www.collidelabs.com

DEsigN/LayOuT 3 Dogz Creative inc.

Chris ElkertonDave GouveiaRoberta Judge

www.3dogz.com

EDiTOrNish Shah

PrOPs Dorothy Lee

Fayyaz Hemani

All photos © CSA Images

It’s chaotic out there. Slow down and

breathe. Our inaugural issue is here to help.

XX%

Cert no. XXX-XXX-000

K

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Many of the technological advances that were created in the past decade are now at a critical mass, offering marketers more meaningful ways of connecting with people. Broadband, mobile and social are only now starting to present us with their full range of possibilities. If you require proof, look no further than this year’s CES Conference in Las Vegas where some of the largest marketers showed us what lies ahead. And one thing’s certain; we’re in for a treat.

At the same time, keeping up with the implications of these changes for marketers can be a daunting task. However, in order to stay ahead of the competition we absolutely must be aware of these changes, understand how they impact our businesses and the very industries that we operate in. A fundamental shift is taking place in nearly every industry and we are right in the middle of it. Nobody knows exactly what will happen to the publishing, music, ____________ (fill in your industry here) industries but we know that these changes are not a fad. They are real. Deny it or embrace it.

We hope that you choose the latter. That’s why our inaugural issue is focused on bringing many of the advances that we are seeing to the fore-front.

It’s important to note that we are not suggesting you need to shift your entire marketing budget. We do believe that now is an opportune time to re-think traditional approaches to marketing and experiment with new technologies and trends that can compliment your current initiatives. As you will see, it’s very rarely an either/or equation.

We hope that at a minimum it starts a conversation.

It truly is a great time to be a marketer.

It’s 2010 and there’s no question that as marketers we live in

interesting times. ICK K Off!

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ThE ChaNgiNg

CONsumEr LaNDsCaPE

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What impact does a permanent downward shift in the demand curve have on your business? As a marketer how should you respond? The natural initial reaction is to respond through price promotions and incentives. However, that might not be the wisest approach. Despite conventional wisdom and what the long lines suggest during Black Friday and Boxing Day people still get excited by innovative approaches of connecting with them. Look no further than the buzz around Apple’s iPad for proof. The opportunity exists to look beyond simple margin-eating price promotions and toward baking the marketing right into the product experience.

The Proliferation of Media:The other force shaping the new consumer landscape is a fundamental shift in how we consume and interact with media. The numbers below should come to no surprise, as media continues to fragment and accessibility becomes ubiquitous.

The dreaded ‘R’ word. We promised we wouldn’t say this word in 2010, unfortunately it continues to rear its ugly head. The Recession. Globally, we anticipate the recovery to be slow and consumers will continue to be cautious with their discretionary income.

ThE ChaNgiNg

CONsumEr LaNDsCaPE

Chart source: Did You Know 4.0

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The implication? The supply of media is infinite, the amount of attention we have is not. We will continue to see growth rates in traditional media decline but not to the demise that many are predicting. The market is currently trying to find equilibrium and it likely won’t happen in 2010.

Similar to most technological introductions there is often a “bandwagon” effect as marketers are led to believe that this could be the “silver bullet” answer. We should know better. There are no silver bullets. After the dust has settled and the hype cooled, the growth rates of the new medium typically level off into more realistic single-digit figures.

That is until the next “big new and shiny” idea comes along. Don’t be fooled.

As marketers, the changing consumer landscape is also altering the way we have traditionally viewed consumers.

Thinking of our target audience as simply consumers instantly limits your marketing initiatives.

The very word suggests that all consumers only consume. We know that’s no longer true. In fact, it hasn’t been true for a long time, we’ve just been slow to respond as marketers.

“It IS Very rareLy an eIther/Or eqUatIOn. It IS aLmOSt aLwayS an ‘and’ eqUatIOn.”The key questions you should be asking is “how can this new technology compliment what we are currently doing?” “how can we conduct a low-risk test to determine if it can add to our marketing mix?”

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trend [trênd]A new way of unlocking or servicing an existing customer need, want and/or desire**

“we are not in the business of supporting a media industry; we are in the business of connecting with consumers.” TREVOR EDWARDSVP, Global Brand and Category Management, NIKE

People don’t merely consume. They create, collaborate and connect…

Why should we care as marketers? Shouldn’t we only care about consumption?

If only it were that simple. It matters because while people are creating, participating, collaborating and connecting – sometimes it involves your brands.

And here’s the core reason why we can’t simply define our market as consumers.

77% trust businesses less.* People have always talked about brands. The difference is that today it is extremely easy to spread both negative and positive stories with friends, families and even strangers from around the world.

Bottom-line?

People trust people – That’s why you need to pay attention now more than ever before.

*Source: Edelmen Trust Barometer**Adapted from: Trend Watching

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the

fOr attentIOn

fIght

If there IS OnLy a LImIted

amOUnt Of attentIOn and an

eVer-InCreaSIng SUppLy Of nOISe

hOw ShOULd we reSpOnd?

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Let’s begin with where we’ve spent a disproportionate amount of our time and resources – the experience.

Think about it. As marketers we spend a significant amount of resources convincing people to buy our products and services through sales promotions, incentives and ad campaigns.

But isn’t That The Point? The problem with focusing solely on the pre-purchase experience is that we’ve limited ourselves to a very small portion of a person’s life. If we are fighting for attention, does it not make more sense to play in a space where we have a greater amount of time to interact with people – the actual interactions a person has with a product or service?

Best-in-class marketers are realizing that there is significant value in looking for ways of enhancing the product experience and the interactions someone has with the actual product.

This thinking is a fundamental shift from the traditional ways in which we have viewed the role of marketing. It still is ultimately, as Theodore Levitt suggests in his ground-breaking book nearly 30 years ago called Marketing Imagination about, “getting and keeping a customer”.

The difference is in the ways in which we do that. And marketers are responding in a number of distinct ways...

Digital PlatformsMarketing has generally been focused on creating and executing campaigns. Attention is high when the campaign is in-market, as measured by unaided awareness, but it typically falls once the campaign and media buy is over.

The result is an endless cycle of chasing attention.

An alternative to buying “eyeballs” each time you run a campaign is to own the “eyeballs” through a digital platform that provides on-going utility.

For examples, look to iCoke.ca for an on-going rewards platform or to Nike’s Head to Head platform that allows high school football players to get instant visual stat comparisons with other players in their team, division and even pro-football players when they were their age. The platforms provide a way for marketers to continuously interact with people.

gOOd qUeStIOn.

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the new VaLUe eqUatIOn IS abOUt prOVIdIng

added UtILIty In exChange fOr

attentIOn. Today, people don’t just want you

to tell them how great you are they want you to prove it.

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CrEaTiNg BETTEr ExPEriENCEsAlex Bogusky and John Windsor, in

their book Baked-In advocate

aligning marketing with product

innovation to help create better

product experiences. The marketing for the product moves from simply an after-thought to becoming a critical part of the experience. In 2010 and beyond look for innovation to come in the form of products that marry marketing insight with product development.

Easier said than done!

It will require a coordinated approach with marketers acting as “idea champions” balancing the conflicting demands between sales, legal and R&D. The organizations that win, will figure out how to balance these demands without compromising the desired vision.

We’re seeing innovative examples in highly regulated industries, which makes it increasingly difficult to argue that the barriers cannot be overcome.

Bayer’s Didget is a good example of creating a better product experience. Didget is a blood glucose monitoring system for children that rewards consistent testing by connecting the device to a Nintendo DS system. Children join the Didget community and play games earning points for blood glucose test results along with earning bonus points for consistent testing.

Making a child’s life just a little bit better. Brilliant. That’s the power of marketing innovation and creating better experiences.

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CrEaTiNg BETTEr ExPEriENCEs

The new “maas” – marketing as a serviceActions speak louder than words. It’s an age old truth that a number of marketers are taking to heart in an effort to not only gain attention but provide people with tangible utility.

Take for example Humana’s, a health insurance company, mission of improving the health and lives of people around the world. Instead of simply running ads that talk about their community involvement, Humana takes it a step further by creating a bicycle sharing program called “Freewheelin’”. The program encourages the use of bicycles for short commutes and the site calculates the number of rides, miles ridden, calories burned and carbon footprint reduced through the program.

aCtIOnS SpeaK

LOUder than

wOrdS.

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weLCOmetO the

dIgItaLage

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This decade we expect to see technological innovation that uses the Internet in ways that we’ve never seen or thought about before. As technology becomes completely immersed in our daily lives, the less we start thinking about it and the more we expect seamless experiences.

Just look at the way we used to access the Internet. There was a time when we couldn’t answer the phone line because we were “surfing the World Wide Web”. Now, we don’t even think about it. We expect a completely seamless experience.

These expectations will continue to increase.

Why shouldn’t we be able to walk into a store and find exactly what we are looking for, and in which aisle, with a few clicks on our phone? Why shouldn’t we be able to get instant price comparisons, make one-click purchases and get immediate discount coupons in-store?

The implication for marketers is that we need to broaden our view of digital away from it simply being a media channel.

Digital is not a silo.

Digital will influence and have an impact on virtually everything we do as marketers because that’s what the market expects and demands.

“It IS OnLy when

thIngS beCOme

InVISIbLe dO they

beCOme IntereStIng.”

CLay ShIrKy

Chart Sources (left to right):1. Nielsen Global Online Survey2. comScore Media Matrix3. Infonetics Research

Chart Sources (left to right):4. CNET5. teamDigital, Promotions 2.06. Facebook User Data

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augmented realityIf you haven’t heard of augmented reality (AR), we promise that will change this year. AR bridges the online and offline worlds by creating a mixed reality. The technology merges computer-generated images with the real-world environment to create a dynamic experience for users. The most notable executions are from marketers who do not use it simply as a new creative tactic but rather as a way to provide utility:

United States Postal Service – Virtual Box Simulator

• Real World = Goods that someone wants to ship• Virtual World = Different 3-D USPS sized boxes• AR Application = Hold up what you are planning on

shipping and a virtual 3-D box appears over the object to help you determine what size box you need.

Other examples to check-out:

• Virtual Dressing Room by Zugara• Samsung’s LED Selector

Connecting the Offline ONLiNE Worldsmarketers are already experimenting with interesting new technologies that bridge the online and offline worlds. here are three innovative approaches that you should be aware of:

information + Context using

augmented reality to provide information

literally at our fingertips.

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Qr CodesQR code technology has been widely used by retailers and advertisers in parts of Europe and Asia. The technology is starting to be used in North America and we expect to see continued growth as smart phones become more ubiquitous. Examples include downloading movie trailers, providing instant discounts, or offering additional nutritional information on packaging.

Real Results:

“Google has already seen results from a recent test of QR codes. Each ad contained a QR code and a response tag, and was tested against the same ads without the tags. The code-enhanced ads ended up driving 6.5 times more revenue than the ads without”.

AdAge “Google, QVC Attempt to Revive QR Codes”

interactive KiosksRetailers have been using interactive kiosks primarily in an effort to speed-up lines from self-check-outs at grocery stores to dispensing tickets at movie theatres.

The next generation of interactive kiosks will go well beyond this core function, offering customers everything from “product specifications to customer reviews – comparable to what they [customers] can find on the Internet”.

These kiosks will also be tied with loyalty programs in order to offer personalized service, discounts and offers based on individual preferences.

For example, an interactive kiosk for BP (Nordstrom’s junior department) designed by Zeus Jones, enabled shoppers to try on clothes, take professional photos and e-mail their images to friends all within the dressing room environment.

Connecting the Offline ONLiNE Worldsmarketers are already experimenting with interesting new technologies that bridge the online and offline worlds. here are three innovative approaches that you should be aware of:

Qr Codes + Traditional media help marketers create a channel

for direct response

Technology + in-store creates

a better experience and aids in the

purchase decision for shoppers

BP Photobooth image courtesy of Zeus Jones.

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we are by natUreSOCIaLanImaLS

arIStOtLe It should

come as no surprise that the Internet

is moving rapidly

towards a more social experience.

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We are inherently social and always have been. The difference is that now, more than any other time in our history, it is unbelievably easy to socialize with friends, family and strangers regardless of proximity.

Don’t Overcomplicate it.

Regardless of what the self-proclaimed social media experts tell you.

First let’s get a few things out the way:

• Socialmediaisnotthesilverbullet.• Socialmediaisnotgoingtosingle-handedlysaveyourbusiness.• Socialmediaisapowerfulwayforbrandstolisten

totheircustomers.

Wait. You mean people are talking about my brand right now?

Here’s what you should remember when piloting through the social world:

Mr. Gossage, born in 1918, was clearly a man before his time. His thoughts pre-date the Internet and many of the technological advances we now take for granted; nonetheless, his wisdom is more relevant than ever.

Adding a “tell-a-friend” function and thinking you’ve added “social” to your program is a flawed approach for countless reasons. Unfortunately, we continue to see this as common practice in many organizations. Social should be baked right into the design of the program. Here are a few examples:

“peOpLe dOn’t read adS. they read what IntereStS them and SOmetImeS It’S an ad”. hOward gOSSage

social shoppingIf you think about the retail, bricks and mortar shopping experience, it has always been a very social experience. You go to the mall with your significant others, family and friends asking for opinions in “real-time” and making decisions based on the influence of others.

In contrast the online shopping experience has been designed, for the most part, as an isolated experience. You shop online, compare prices, read reviews and make your purchase rarely interacting with anyone in the process.

We see that experience rapidly changing through the emergence of social shopping – integrating real world elements which make shopping an enjoyable social experience in the online world.

real ExamplesDell Swarm – “Buy in a Group and Save”. Users are encouraged to join a swarm for exclusive discounts on different Dell products. Discounts are based on having a pre-determined number of people join the swarm.

Taste Casting – A new service that connects restaurants with people through “taste tests”. In exchange for an evening of free food at the actual restaurant’s location these social networkers then blog, tweet and post videos of their experience.

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deSIgn thInKInggreat deSIgn IS aS mUCh abOUt reaChIng the fInaL graphIC and COLOUr COmbInatIOnS aS It IS abOUt the thInKIng behInd the SOLUtIOn.

Design thinking is already an early candidate for buzzword of the year. It seems that everyone loves talking about it conceptually but what exactly does it mean? We define design thinking as a fluid process that merges rational, emphatic and visual thinking to reach optimal solutions. Design thinking is certainly not new; in fact, designers have been using the process to solve problems for centuries.

When thinking of any type of creative, worthy studios do more than just sketch – they draw from experience. Colour combinations they know don’t work. Typography they know won’t read. Various things that won’t help propel this original idea ahead of a competitor’s. They know the pitfalls to avoid and the decisions to make that will get you closer to your objectives – and they take all that thinking into consideration throughout the entire process.

Our design process in action...

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deSIgn thInKIngnOw what?

Wehopethatyou’reinspired.

Inspired enough to start a conversation within your

organization about how these ideas can help you

connect with your customers.

here are some immediate questions to help start the conversation:

What are all the situations where people may want to interact with your brand? (Be as specific as possible)

What are their needs in each of these situations?

How do these needs change when they are with other people. (Hint: No focus group will ever tell you

this answer; you have to start paying attention to how people behave in their natural environments)

How can your brand help in each of these situations?

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Interactive learning. Access videos of every example within these pages.

1. If you don’t already have one, download any QR code scanner onto your smart phone. We recommend the free one offered at: http://i-nigma.com

2. Open the QR code scanner application on your phone.

3. Scan the QR code and you will automatically be taken to a page with the video examples.

we wOULd LOVe tO heLp yOU Start appLyIng theSe trendS.It’s the reason why we are offering a free design thinking workshop to the first five (5) people who contact us. Learn how to apply design thinking to help you and your team solve problems, develop innovative ideas and give you a competitive advantage. 1.5 hr workshop · $1500 value · No strings attached

Learn mOre here: www.COLLIdeLabS.COm/trendStaLK tO US: 416-845-6474 · [email protected]