The Digital Disruption and Displacement How Technology Has Led to the Socialization of Marketing Presented October 2008 By Albert Thompson President, transient identiti, Inc.

What Once Was is No Longer…

The Traditional Marketing Channel

Traditional Purchase Funnel Source: Resource Interactive

Societal Shifts

The Societal Shifts Redefining Going-to-Market Approach Demography is dead Technology content tends to be presented based on demographic characteristics instead of behavioral insights . Queens trump Kings (MOMOCRACY) The conversational sell around marketing often lacks intuitiveness in it’s approach Shift from institutional power to individual The sell-through process has lost its inherent control 70% of digital content will be generated by individuals by 2010 Cooperative consumption Collaborative ownership

Demography is dead

Technology content tends to be presented based on demographic characteristics instead of behavioral insights .

Queens trump Kings (MOMOCRACY)

The conversational sell around marketing often lacks intuitiveness in it’s approach

Shift from institutional power to individual

The sell-through process has lost its inherent control

70% of digital content will be generated by individuals by 2010

Cooperative consumption

Collaborative ownership

The Societal Shifts Social Technological Connection Connectivity and Engagement in Real Time Lack of tolerance for a “disconnected Internet” Social brand communities replacing the traditional consumer base Wine tasting and tupperware parties in the physical world have evolved into micro-social network online Consumers will continuously blend marketplace, workplace, and life place. Use of SMS, IM, and Social Networking will expected as the norm across all aspects of daily life.

Connectivity and Engagement in Real Time

Lack of tolerance for a “disconnected Internet”

Social brand communities replacing the traditional consumer base

Wine tasting and tupperware parties in the physical world have evolved into micro-social network online

Consumers will continuously blend marketplace, workplace, and life place.

Use of SMS, IM, and Social Networking will expected as the norm across all aspects of daily life.

The Societal Shifts Social Technological Connection Moore's Law (Intel philosophy) “ Technology has now gotten a hold of the discipline of Marketing”

Moore's Law (Intel philosophy)

The Disruptors

The Disruptors Introducing Citizen “You” The notion of buyer beware has now been replaced by a savvy consumer mindset that knows brands need them more than they need brands!

The notion of buyer beware has now been replaced by a savvy consumer mindset that knows brands need them more than they need brands!

The Disruptors The Co-Creators We have witnessed the emergence of the amateur everyday thought leader. Citizen Journalism

We have witnessed the emergence of the amateur everyday thought leader.

Citizen Journalism

The Disruptors Introducing the Prosumer He/She Consumes, Analyzes, Repackages, and then Redistributes as if being a complete “marketing channel”. Source: Businessweek.com/Blogger Armano 2006

He/She Consumes, Analyzes, Repackages, and then Redistributes as if being a complete “marketing channel”.

The Disruptors Social Media Communicating, connecting, collaborating, collecting, customizing, and conversating. Wikipedia defines Social media as an umbrella term that defines the various activities that integrate technology, social interaction, and the construction of words, pictures, videos and audio . This interaction, and the manner in which information is presented, depends on the varied perspectives and "building" of shared meaning among communities, as people share their stories, and understandings . In the context of Internet marketing, Social Media refers to a collective group of web properties that are driven by users. For example, blogs, discussion boards, vlogs, video sharing sites, social networks, list servs, user groups, and forums.

Communicating, connecting, collaborating, collecting, customizing, and conversating.

Wikipedia defines Social media as an umbrella term that defines the various activities that integrate technology, social interaction, and the construction of words, pictures, videos and audio . This interaction, and the manner in which information is presented, depends on the varied perspectives and "building" of shared meaning among communities, as people share their stories, and understandings . In the context of Internet marketing, Social Media refers to a collective group of web properties that are driven by users. For example, blogs, discussion boards, vlogs, video sharing sites, social networks, list servs, user groups, and forums.

The Disruptors Other Critical Drivers Millennials Google Open Source Movement

Millennials

Google

Open Source Movement

The Universal Truths

The Universal Truth Mass Marketing Crisis 18% of TV advertising campaigns generate positive ROI 54 cents is average return in sales for every $1 spent on advertising 84% of B2B marketing campaigns resulted in falling sales 94% failure rate of new product introductions 3,000 advertising messages the average person is exposed to daily 69% are interested in technology or devices that enable them to skip or block advertising

18% of TV advertising campaigns generate positive ROI

54 cents is average return in sales for every $1 spent on advertising

84% of B2B marketing campaigns resulted in falling sales

94% failure rate of new product introductions

3,000 advertising messages the average person is exposed to daily

69% are interested in technology or devices that enable them to skip or block advertising

The Universal Truths Marketing Management Crisis In many organizations, the corporate marketing function has lost budget, head count, influence, and confidence resulting in strategic consequences that run deeper than many managers may realize.” Source: MIT Sloan Management Review Average CMO Tenure is less than 18 months for the Fortune 500.

In many organizations, the corporate marketing function has lost budget, head count, influence, and confidence resulting in strategic consequences that run deeper than many managers may realize.” Source: MIT Sloan Management Review

Average CMO Tenure is less than 18 months for the Fortune 500.

The Universal Truths New Rules of Engagement Marketing has shifted from a paradigm of dictation to dialogue . Technology is the enabler for advancing the dialogue to facilitate a deeper awareness of the brand. “ Consumer generated media, customer conversations, and the notion of on-demand consumers are redefining how advertisers connect their brands to consumers”. “ With consumers spending less attention at any one touch point , successful marketers will need to be at every touch point.”

Markets Are Conversations! Excerpt: Cluetrain Manifesto "Markets are nothing more than conversations. See these magazines? They’re a form of market conversation. We should already be in their stories. We are key to the subject, but we’re missing in action after working in secret for years. Our only hope is to talk. Starting now." The Universal Truths

The Universal Truths New Consumer Social Graph Source: Dion Hinchcliffe

The Universal Truths Types of Engagement Source: Wiredset

The Universal Truths Technology as Personalization Tool Technology (driven by Social Media) has allowed an individual to create an online reflection of the social interactions people have in the real world . The result generated from brand engagement will offer insight as to how the target views any subject matter. Technology (via Social Media) has allowed all demographics to create a digital representation of themselves for other people to see.

Technology (driven by Social Media) has allowed an individual to create an online reflection of the social interactions people have in the real world .

The result generated from brand engagement will offer insight as to how the target views any subject matter.

Technology (via Social Media) has allowed all demographics to create a digital representation of themselves for other people to see.

Social Connectivity Emergence

Social Connectivity Extended Consumer Touch Points source: Robert Scoble & Darren Barefoot

Social Connectivity Impact of Joining the Market Conversation Source: Blogger David Armano Each numeric represents an contact point of influence that draws on the multiplier effect.

Social Connectivity Social Networking driving Hyper connectivity The portability across social platforms will allow users to go beyond taking their identities, but their friends too across the digital landscape. Facebook Connect, Windows Live, FriendFeed are attempting to map the things that happen in real life. Social Networking will move beyond a single destination experience and become engrained in the everyday Internet experience. Consumers will talk to each other across the web, hence discussions around brands are no longer siloed to a single platform or network but are spreading to a wider swath of sites in one communication stream .

The portability across social platforms will allow users to go beyond taking their identities, but their friends too across the digital landscape.

Facebook Connect, Windows Live, FriendFeed are attempting to map the things that happen in real life.

Social Networking will move beyond a single destination experience and become engrained in the everyday Internet experience.

Consumers will talk to each other across the web, hence discussions around brands are no longer siloed to a single platform or network but are spreading to a wider swath of sites in one communication stream .

Social Networking Connectivity by way of Venus If Web 2.0 is all about being social, then the future of the Internet is going to look pink and the social media’s future is all about women. Women are outpacing men in the growth, daily usage, and overall engagement of social networks. Women style of communication is more relationship driven; less transactional Social media is increasingly becoming more in tune with the female psychographics.

If Web 2.0 is all about being social, then the future of the Internet is going to look pink and the social media’s future is all about women.

Women are outpacing men in the growth, daily usage, and overall engagement of social networks.

Women style of communication is more relationship driven; less transactional

Social media is increasingly becoming more in tune with the female psychographics.

Business Implications

Business Implications Brand Socialization Brand Socialization refers to the process of the brand learning the consumer culture and how the brand could exist within it. Brand Socialization should identify the skills, the methods, the habit, and the technologies, necessary for acting and participating within that given society.

Brand Socialization refers to the process of the brand learning the consumer culture and how the brand could exist within it.

Brand Socialization should identify the skills, the methods, the habit, and the technologies, necessary for acting and participating within that given society.

Business Implications Brand Socialization Source: Mitchel Demoor

Business Implications Brand Socialization – Facebook Source: Mitchel Demoor

Business Implications Brand Socialization – Facebook Source: Mitchel Demoor

Business Implications Brand Socialization – Facebook Source: Mitchel Demoor

Business Implications Brand Socialization – Facebook Source: Mitchel Demoor

Business Implications Brand Socialization – Facebook Source: Mitchel Demoor

Business Implications Neuromarketing as a Practice Neuromarketing is a new field of marketing that studies consumers' sensory-motor, cognitive, and affective response to marketing stimuli. Marketing analysts will use neuromarketing to better measure a consumer's preference to determine the true answer on a cognitive bias.

The New Model

The New Model Redefined Purchase Funnel Source: Resource Interactive

The New Model Channel Management

The New Model Product Innovation/Product Development

The New Model Going to Market

Future of Brand Marketing

Future of Brand Marketing Brands need not interrupt their customer’s natural inclinations and habits, but rather build contextual relevance around them to enhance their experiences. The idea is that the brand is an enabler of those very customer experiences that synchronize with the brand’s core identity. .

Brands need not interrupt their customer’s natural inclinations and habits, but rather build contextual relevance around them to enhance their experiences.

The idea is that the brand is an enabler of those very customer experiences that synchronize with the brand’s core identity. .

Future of Brand Marketing “Brands no longer look for ad campaigns…they are in search of a platform around which everything related to the brand can live.” MyCokeRewards.com People are building brands , not advertisers, not brand stewards, and not ad agencies.

“Brands no longer look for ad campaigns…they are in search of a platform around which everything related to the brand can live.”

MyCokeRewards.com

People are building brands , not advertisers, not brand stewards, and not ad agencies.

Future of Brand Marketing Mobilizing to Take Action Source: Businessweek.com/Blogger Armano 2006

Strategic Benefits

Strategic Benefits R&D Innovation Direct to Consumer Emergence of true Listening Brands CRM, Loyalty, Retention

R&D

Innovation

Direct to Consumer

Emergence of true Listening Brands

CRM, Loyalty, Retention

Future of Brand Marketing The symbiotic relationship between mainstream media and social media

Dynamic customer experiences centered around content, applications, and communications relevant to the social relationship being cultivated will be the new sell-through approach.

non-traditional Consultancy + Agency + Brand Identity Why transient? Consumer tastes and preferences are fleeting today; always in a constant state of flux – being transient. Why identiti? To ensure consumer adoption of coveted brands, It is their commonality that we pursue, their passion points we exploit, and their mindsets we tap into – all things that comprise their identity.