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Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
Marketing: Theory and Practice
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Marketing: Theory and Practice

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Slides from a presentation I gave at the Hub in Brusse

Slides from a presentation I gave at the Hub in Brusse

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  • Transcript

    • 1. MARKETINGTheory and Practice
    • 2. About MeScott Arbeitmanscott.arbeitman@gmail.com @friendofasquid
    • 3. About MeTechnology• Bachelor in Computer Science• Master of Software Systems Engineering• Worked for about 5 years as a software developer/IT consultantBusiness• MBA• Current work in marketing for an Australian group of companies• Freelance marketing consultant• Wannabe entrepreneur
    • 4. THE FUNDAMENTALS
    • 5. “MARKETING IS LOOKING AT THE BUSINESS THROUGH THECUSTOMERS’ EYES” - PETER DRUCKER
    • 6. Path to Glory ResearchSegmentation A parrot can be a marketer. The answer is always “segmentation, targeting, positioning.” Targeting Positioning
    • 7. Path to Glory } Research These are mostly once-off activities.Segmentation But verify your assumptions frequently. Targeting Positioning
    • 8. Path to GloryPositioning } Product Price The 4 P’s of marketing Promotion Place
    • 9. Path to GloryPositioning } Product Price The 4 P’s of marketing Promotion Place
    • 10. Simple Tools for Market ResearchCreate a quick online surveyand ask people to fill it out Blogs Forums FacebookOr use a dedicated service
    • 11. Differences between people emerge
    • 12. A Real Example“I already have too “I’m always interestedmany blogs to read. I in exploring newdon’t have time for content and learning your service.” new things.”
    • 13. These clusters of people with similar wants or needs represent a segment
    • 14. Which segment should we target?•Which can we best service?•How profitable are they?
    • 15. “Positioning is what you do to the mind of the prospect. That is, you position the product in the mind of the prospect.” - From the book PositioningAl Ries and Jack Trout. Positioning: The Battle for Your Mind. New York: McGraw Hill, 2001.
    • 16. Stuff I Value Stuff I Don’t Value
    • 17. Stuff I Value Stuff I Don’t ValueMy Product
    • 18. My ProductStuff I Value Stuff I Don’t Value
    • 19. My ProductStuff I Value Stuff I Don’t Value
    • 20. WHAT IS VALUE?
    • 21. WHAT IS VALUE? } Buyer’s SurplusPriceCost
    • 22. WHAT IS VALUE? Customers will buy the product that maximises their surplus.PriceCost
    • 23. WHAT IS VALUE? Customers will buy the product that maximises their surplus. Same price. Same cost.Price Different Price perception of value.Cost Cost
    • 24. Positioning movesthe buyer’s surplusup, increasing their perceived value. But positioning must be targeted towards your Price segment. Cost
    • 25. EXAMPLE
    • 26. Eco- Luxury travelers Travelers“Wildlife like nowhere Price Price else.” Cost Cost
    • 27. Eco- Luxury travelers Travelers“Wildlife like nowhere Price Price else.” Cost Cost
    • 28. Eco- Luxury travelers Travelers“Stylish and sophisticated Price Price cities” Cost Cost
    • 29. “Melbourne now clearly leads the Gold Coast asthe most preferred domestic holiday destinationand is the only domestic destination to have liftedits preference level over the past decade accordingto a March 2010 Roy Morgan Research HolidayTracking Survey. The survey revealed 21 per cent ofrespondents wanted to holiday in Melbournewithin the next two years.” - Tourism Victoria
    • 30. “Melbourne now clearly leads the Gold Coast asthe most preferred domestic holiday destinationand is the only domestic destination to have liftedits preference level over the past decade accordingto a March 2010 Roy Morgan Research HolidayTracking Survey. The survey revealed 21 per cent ofrespondents wanted to holiday in Melbournewithin the next two years.” - Tourism Victoria
    • 31. “The first initial burst of campaign activity resultedin more than 10,000 consumers subscribing to ourDaylesford enewsletter and traffic to Daylesfordcontent on visitvictoria.com increasing by 62 percent (year on year) between 16 August and theend of November. In the first fortnight trafficpeaked with an increase of 335 per cent year onyear.” - Tourism Victoria
    • 32. “The first initial burst of campaign activity resultedin more than 10,000 consumers subscribing to ourDaylesford enewsletter and traffic to Daylesfordcontent on visitvictoria.com increasing by 62 percent (year on year) between 16 August and theend of November. In the first fortnight trafficpeaked with an increase of 335 per cent year onyear.” - Tourism Victoria
    • 33. SCOTT’S GRAND UNIFIED THEORY OF WEB ADVERTISING
    • 34. ON THE INTERNET, THERE ARE ONLY TWO KINDS OF SITES
    • 35. Commerce ContentWeb’s Best Store Search Amazing Content Search Shopping Cart Header AdProduct NameAs stands out like true blue when trent from Article Namepunchy dead horse. Grab us a lippy how builtlike a slabs. As stands out like your shout my Sideshell be right vinnies. As cross as a mappa Product Ad As stands out like true blue when trent from punchy deadtassie piece of piss lets get some gobful. Lets horse. Grab us a lippy how built like a slabs. As stands out Imagethrow a flake no worries as cross as a like your shout my shell be right vinnies. As cross as abrumby. As dry as a going off also he hasnt mappa tassie piece of piss lets get some gobful. Lets throw agot a stubby holder. As dry as a figjam my flake no worries as cross as a brumby. As dry as a going offlets throw a barrack. Mad as a strides to also he hasnt got a stubby holder. As dry as a figjam my letstrent from punchy rollie. Itll be strides withcome a bitzer. As cross as a fair go where he throw a barrack. Mad as a strides to trent from punchy rollie. More articles Itll be strides with come a bitzer. As cross as a fair go wherehasnt got a banana bender. Come a jumbuck he hasnt got a banana bender. Come a jumbuck my gutful ofmy gutful of rapt. rapt. •Shell be right Add to Cart! •as a counter meal •chook my as dry Footer AdTrust Us. We have links and are on Trust Us. We have links and are onFacebook. Facebook.
    • 36. Commerce ContentI make money I make moneywhen you buy from things. advertising. But can both benefit from: Social networks Search engine optimization Proper design and usability
    • 37. Commerce ContentI only want to I always want Lowest pay for Risk to make moneyadvertising if I Strategies from showingmake money. your ad.
    • 38. Commerce Content I only want to I always want Lowest pay for Risk to make money advertising if I Strategies from showing make money. your ad.I’ll share the profit with you if someone clicks I show your ad. You pay the ad and buys me. something.
    • 39. Commerce Content I only want to I always want Lowest pay for Risk to make money advertising if I Strategies from showing make money. your ad. I’ll share the profit with you if someone clicks I show your ad. You pay the ad and buys me. something.Cost per acquisition (CPA) Cost per mille (CPM) This is per mille (1000) because we track ad views in blocks of 1000. Each view is often worth a fraction of a cent. CPM let’s us deal with whole dollars. e.g. if CPM is $10, each time the ad is served, we make 1¢.
    • 40. Commerce Content Cost per acquisition (CPA) Cost per mille (CPM)Risks for the commerce site Risks for the content site •The visitors are from the •They make terrible ads wrong segment that nobody wants to click •Too much noise on the •Their website is terrible. site Nobody is going to buy anything
    • 41. Commerce ContentCost per acquisition (CPA) Cost per mille (CPM)
    • 42. Commerce ContentCost per acquisition (CPA) Cost per mille (CPM) Compromise
    • 43. Commerce Content Cost per acquisition (CPA) Cost per mille (CPM) Compromise Cost per click (CPC)I’ll only pay when someone I only get paid when clicks my ad. someone clicks an ad. It’s a waste if the clicker It’s a waste if your ad shows doesn’t transact. and nobody clicks it.
    • 44. Commerce Content Cost per click (CPC) Incentives more aligned. I’ll optimize my site to I’ll optimize my sitemaximize the revenue from maximize the click through each click. rate (CTR).
    • 45. But which metric is important?
    • 46. But which metric is important? It’s the same!
    • 47. But which metric is important? It’s the same! Commerce Content Cost per acquisition (CPA) Cost per mille (CPM)We need to work out the implied or effective rate for the metric we care about. Effective CPA Effective CPM
    • 48. Effective Rates (for CPC campaigns)CommerceEffective CPA = Cost per click Conversion rate x Average transaction valueContentEffective CPM =Cost per click x Click through rate x 1000
    • 49. Effective Rates (for CPC campaigns)CommerceEffective CPA = Cost per click Conversion rate x Average transaction valueStrategies to minimize CPA•Minimize cost per click•Increase conversion rate•Increase average transaction value
    • 50. Effective Rates (for CPC campaigns)ContentEffective CPM = Cost per click x Click through rate x 1000Strategies to maximize CPM•Increase cost per click•Increase click through rate
    • 51. Effective Rates (for CPA campaigns)CommerceEffective CPA =We are using this methodContentEffective CPM =Payment from commerce site / Ad Views x 1000
    • 52. Effective Rates (for CPM campaigns)CommerceEffective CPA = Cost per Mille x Click Through Rate Conversion rate x Average Transaction ValueContentEffective CPM =We are using this method
    • 53. HOW DO I GET STARTED ADVERTISING? Commerce Content Adwords Adsense Facebook Outbrain Twitter Amazon Affiliate LinkedIn Niche NetworksNiche Networks
    • 54. WHICH SERVICE SHOULD I USE?Only choose advertising which effectively reaches your target segment and aligns with your position. Ask yourself:•Can I target them on platform X? (e.g. can I target plumbers on LinkedIn?)•What’s my effective CPA on each platform? (may require someexperimentation)•What does this platform say about my position? (e.g. should I advertiseconservative business solutions on Facebook?)
    • 55. HOW DO I TRACK THE EFFECTIVENESS OF MY ADVERTISING?Cheap Expensive
    • 56. SPLIT TESTINGGetting the most out of your site
    • 57. A User Requests Your Web Site Split Testing ServiceProduct Name Product Name Product Name As stands out like true blue when trent from As stands out like true blue when trent from As stands out like true blue when trent from Product punchy dead horse. Grab us a lippy how built punchy dead horse. Grab us a lippy how built punchy dead horse. Grab us a lippy how built Product like a slabs. As stands out like your shout my shell be right vinnies. As cross as a mappa Product like a slabs. As stands out like your shout my shell be right vinnies. As cross as a mappa like a slabs. As stands out like your shout my shell be right vinnies. As cross as a mappa Image tassie piece of piss lets get some gobful. Lets tassie piece of piss lets get some gobful. Lets tassie piece of piss lets get some gobful. Lets Image Image throw a flake no worries as cross as a brumby. throw a flake no worries as cross as a brumby. throw a flake no worries as cross as a brumby. As dry as a going off also he hasnt got a As dry as a going off also he hasnt got a As dry as a going off also he hasnt got a stubby holder. As dry as a figjam my lets stubby holder. As dry as a figjam my lets stubby holder. As dry as a figjam my lets throw a barrack. Mad as a strides to trent from throw a barrack. Mad as a strides to trent from throw a barrack. Mad as a strides to trent from punchy rollie. Itll be strides with come a punchy rollie. Itll be strides with come a punchy rollie. Itll be strides with come a bitzer. As cross as a fair go where he hasnt bitzer. As cross as a fair go where he hasnt bitzer. As cross as a fair go where he hasnt got a banana bender. Come a jumbuck my got a banana bender. Come a jumbuck my got a banana bender. Come a jumbuck my gutful of rapt. gutful of rapt. gutful of rapt. Add to Cart! Add to Cart! Add to Cart! Original Blue Button Image on right
    • 58. MEASURE THE EFFECTS ON THE METRICS THAT MATTER Commerce Content Buys things Clicks adsBut consider other leading indicators (sometimes called micro conversions) Social sharing Social sharing Subscribes to newsletter Subscribes to newsletter Adds item to cart Comments on article Creates an account Creates an account
    • 59. TRY TO QUANTIFY EVERYTHINGCreate relative weighting for each type of conversion. In this example, Iassume the average transaction is for $100 and don’t account for the lifetime customer value. Expected Value Weight Notes Transaction AU$100 100 Remember to account for the lifetime value of a customer Add to cart AU$2 2 Assumes a 2% chance they will transact later. Creates account AU$3 3 Assumes a 3% chance they will transact later. Subscribe to newsletter AU$5 5 …Like on Brand Facebook AU$0.50 0.5 …Like Product on Facebook AU$0.10 0.1 …
    • 60. ANALYZE THE RESULTS% Change in relevant metric or weighted combinationOriginal Blue Button Image on Right
    • 61. ANALYZE THE RESULTS% Change in relevant metric or weighted combination +30% -5%Original Blue Button Image on Right
    • 62. SPLIT TESTING In practice, here are some tools you can use.More Flexible Less Technical
    • 63. BEWARE LOCAL MAXIMAConversion Rate
    • 64. BEWARE LOCAL MAXIMAConversion Rate
    • 65. BEWARE LOCAL MAXIMA As you optimize your site, you may reach a local maximum.Conversion Rate
    • 66. BEWARE LOCAL MAXIMA As you optimize your site, you may reach a local maximum.Conversion Rate Further tweaks only make things worse.
    • 67. BEWARE LOCAL MAXIMA As you optimize your site, you may reach a local maximum.Conversion Rate Further tweaks only make things worse.
    • 68. BEWARE LOCAL MAXIMA As you optimize your site, you may reach a local maximum. To jump the chasm, tryConversion Rate something big and creative. Further tweaks only make things worse.
    • 69. BEWARE LOCAL MAXIMA As you optimize your site, you may reach a local maximum. To jump the chasm, tryConversion Rate something big and creative. Further tweaks only make things worse.
    • 70. BEWARE LOCAL MAXIMA As you optimize your site, you may reach a local maximum. To jump the And then chasm, tryConversion Rate something big continue your split testing. and creative. Further tweaks only make things worse.
    • 71. YOU CAN ALSO SPLIT TEST YOUR ADSWhich ads have the lowest effective cost per acquisition?
    • 72. SUMMARY• Get your fundamentals right.• Know your positioning.• Thereare only two kinds of web sites. Choose the appropriate strategy and pay the right amount.• Split test your site and your ads.
    • 73. QUESTIONS

    ×