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How digital is modifying marketing
 

How digital is modifying marketing

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Digital is above all not a marketing revolution but is pushing us back to the basics. ...

Digital is above all not a marketing revolution but is pushing us back to the basics.
This presentation is a short version of a longer presentation explaining more in details how digital is changing marketing.

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    How digital is modifying marketing How digital is modifying marketing Presentation Transcript

    • 1!LaMercatique!HOW DIGITAL IS MODIFYINGMARKETING !!Grégory Pouy!!gregory.pouy@lamercatique.com!!@gregfromparis!!
    • 2!LaMercatique!DO YOU BELIEVE THAT THE SUN ISTURNING AROUND THE EARTH?!
    • 3!LaMercatique!DO YOU BELIEVE THAT CUSTOMERSARE TURNING AROUND YOUR BRAND?!YOUR BRAND?
    • 4!LaMercatique!DIGITAL IS NOT A REVOLUTION!IT’S A REALIZATION ! !DIGITAL IS NOT A MARKETINGREVOLUTION, IT INVOLVES DEEPCOMPREHENSION !
    • 5!LaMercatique!DIGITAL IS PUSHING US BACK TO THEBASICS!SENSE  OF    PURPOSE  UTILITY  VALUES  
    • 6!LaMercatique!REDBULL USES THE“COURAGE” VALUE!More than 8 m people were watching the jump live(the previous record for YouTube was 500 K) +millions of other media impressions!Estimated cost: $ 50m!
    • 7!LaMercatique!CONSUMERS DO NOT WANT AHAMMER AND A NAIL!
    • 8!LaMercatique!NIKE : FROM A SHOESMANUFACTURER TO A SPORTSCOACH!
    • 9!LaMercatique!DON’T TELL ME THAT YOU AREFUNNY MAKE ME LAUGH!
    • 10!LaMercatique!WHAT ABOUT THE DIGITAL?!
    • 11!LaMercatique!CONSEQUENCE: DIGITAL AD INVESTMENTSARE INCREASING A LOT!2011!2010!2009!2008!2,6 M€!Observatoire de le-pub SRI/Capgemini, 2012!2,1 M€!2,3 M€!2 M€!Evolution des investissements media brut surle digital en France!
    • 12!LaMercatique!Weight!force!Normal!force!SUPRESS FRICTION!
    • 13!LaMercatique!INSTAGRAM ISSMPLIFYING PICTURES!  No need to have a camera!  No need to have any knowledge in retouchingpictures!  The possibility to share immediatly!  ...!“I want to make the photo accessible toeverybody”George Eastman – Founder of Kodak!
    • 14!LaMercatique!NEST DISRUPTS....THERMOSTATS !From a static thermostat to a intelligent andmobile system.!Unfortunately, this is hardly industry experts thatare disrupting their own business, but people whothink differently!
    • 15!LaMercatique!THERE ARE TONS OFTOOLS!
    • 16!LaMercatique!LIES YOU SHOULD FORGETABOUT!
    • 17!LaMercatique!YOU HAVE TO KNOW EVERY TOOL!Digital is mainly about PEOPLE and how they interact.!It’s not about tools. !Tools or tactics are no strategy !It’s better if you use some of them in order to better understandthem but you don’t need to know/use all of them (impossible!)!1!
    • 18!LaMercatique!JUST TO PUT IT MORE CLEARLY.. !!Having a tool doesn’t mean…that you know how to use it…!
    • 19!LaMercatique!ABOUT ONLINE MARKETING…!“Online” and “offline” are just marketing concepts.!Nobody is online or offline.!People don’t think that way, and neither should you!!2!
    • 20!LaMercatique!THE SOCIAL WEB IS FREE!Since it’s free to update in the social media space, a shortcut to gratuity iseasily found. The social web has a cost. 
First,it requires time and effort on a long-term basis. You could have spentthis time doing something else and everyone knows that time is money. 
Moreover, we must create content that will deserve attention and this isoften far from being free. !3!
    • 21!LaMercatique!TO BE ON FACEBOOK YOU HAVE TOCREATE A FAN PAGE!You cannot avoid Facebook, that’s a reality with almost 1 b users,but if you create engaging/useful content, people will share themon Facebook – Having a page won’t help your content to be morevisible unless you’ve got a big fans base with a high engagementrate.!4!
    • 22!LaMercatique!INSTAGRAM IS NOT WORTH $1 B!Well that’s not a lie, it certainly was not worth $1b but Facebookbought it for 2 main reasons :!1.  Everything is about photo/video!2.  The mobile strategy!(and also because Google and Twitter wanted to buy it too)!5!
    • 23!LaMercatique!YOU CAN CREATE A BRAND COMMUNITY!Its pretty rare to see an advertiser that isnt talking about creating a "brandcommunity". Im with you - the idea is attractive. !Remember that being part of a community means sharing a value system. It isalso typically viewed as a way of defining oneself to others. !Do you really believe that all brands can create communities just by opening aFacebook page? !6!
    • 24!LaMercatique!YOU WILL HAVE FAST RESULTS!This is probably one of the worst lies youll ever hear but as marketers usuallydemand short-term financial ROI (read: "what will I get out of this monthsblogger operation?"), it would be abnormal if there werent people trying tomake you believe that the social web is quick and easy. !However, the social web is neither easy nor quick. It requires a turn back tomarketing basics, above all, and asking the right questions in order to trulyreach consumers and earn respect for your brand.!7!
    • 25!LaMercatique!EVERYBODY HAS A !SMARTPHONE!8!
    • 26!LaMercatique!AND SCAN QR CODE!6.2% U.S. mobile users (14 m users) have scan a code (1D or 2D) in june 2011(Comscore).!-  58% have scanned at home, 39,4% in retail shops and 24.5% in supermarkets!-  In 81% the aim was to compare prices!!Truly, brands are putting QR code without explaining why people should scan them oreven how it is working…!!9!
    • 27!LaMercatique!OR USE AUGMENTED REALITY!Augmented reality is sexy but in reality, customers have todownload the app of the editor to see the results.!People are ready to use it but it has to be simple…!!!!10!
    • 28!LaMercatique!THERE IS NO R.O.I.!Well if you can’t have any return on investment, youbetter stop any operation into social media – Iwould !!!!!11!
    • 29!LaMercatique!THERE ARE TOOLSFOR EVERYTHING!Google is like advertising at a store,Facebook is like advertising at apartyAlbert Einstein!
    • 30!LaMercatique!DIRECTFINANCIAL!LONGTERM!SHORTTERM!FINANCIALPERSPECTIVE!!(HAVE YOUR ACTIONSINCREASED SALES ?)!RISK MANAGEMENT!!(IN WHAT WAY(S) ARE YOUBETTER PREPARED FOR ACRISIS ?)!DIGITAL PERSPECTIVE!!(HAVE YOUR ACTIONS ALLOWEDYOU TO REINFORCE YOURBRAND POSIITIONING ?)!BRAND’S PERSPECTIVE!!(HAS YOUR RELATIONSHIP WITHYOUR CUSTOMERS EVOLVED ?)!INDIRECTFINANCIAL!Source : Forrester !THERE IS NO R.O.I.!
    • 31!LaMercatique!THERE IS NO R.O.I.!The consulting firm McKinsey took a fairly standard example of a company investing in thesocial web without having any idea of the value of their actions. !To compare what is comparable, they considered KPIs such as: !1. Volume of positive opinions about the brand !2. S.E.O.&S.M.O. on search engines !3. Improved sales!!Their results showed that the social web improved sales but and had a better ROI thantraditional media to the extent that it would enhance a brands reputation over the long term.!
    • 32!LaMercatique! I’LL MISS WHAT PEOPLE ARE SAYING ABOUT ME ONLINE! I’LL MISS AN OPPORTUNITY TO IMPROVE MY CRM! I WON’T ACKNOWLEDGE THE DECLINE OF CLASSIC ADVERTISING! I WON’T “GET” GENERATION Y AND THEIR USE OF THE WEB! I MAY MISS OPPORTUNITIES TO QUICKLY HANDLE POTENTIAL CRISIS! ...!WHAT HAPPENS IF I DON’T MAKETHE INVESTMENT ? [R.O.N.I.]!Source : F. Guillot!
    • 33!LaMercatique!THEREFORE, HOW SHOULDYOU BUILD YOUR MARKETINGPLAN?!
    • 34!LaMercatique!Analyze and understand how your customers makedecisions in order to determine which touch points arepriorities and how to leverage them. You might besurprised.!UNDERSTAND YOUR CONSUMER’SDECISION JOURNEY!
    • 35!LaMercatique!UNDERSTAND YOUR CONSUMER’SDECISION JOURNEY!!!One of McKinsey’s clients, after discovering that consumers !often eliminated them from their decision set, set out to find out why. They studiedconsumers actively searching for a TV and found :!  Off-line channels are only influential in the “consider” phase!  During the evaluation stage, people use search engines much less than Amazon andother retail sites that show consumer reviews and allow product comparisons !  Display ads are only relevant if they include a promotional offer – and only whenconsumers are already ready to buy!  1/10 consumers visit the brand’s website!  Consumers have strong relationships with several brands after purchase!  Consumers often talk about and rate their purchases after the fact!  Consumers tend to turn to review sites for troubleshooting advice!
!
    • 36!LaMercatique!BUILD YOUR PLAN ATEACH STEP!CONSIDER   EVALUATE   BUY   ADVOCATE  
    • 37!LaMercatique!LET’S CONSIDER COLGATE INTHE U.S.!
    • 38!LaMercatique!adver8sing  Street  marke8ng  Facebook  Co  branding  Smiletalk  Mobile  Smiletalk  Teachers  Kids  Den8sts  Students  Merchandising  Promo8on  CONSIDER   EVALUATE  BUY  ADVOCATE  
    • 39!LaMercatique!AN ENDORSEMENT ACCELERATION!Colgate! Nearest Competitor!43%!39%!28%!16%!14%! 15%!2004!2008!2009!
    • 40!LaMercatique!TURNOVER & NET INCOME!Net income! Turnover!$ 2,431!$ 2,203!$ 1351!2005!2010!2011!$ 16,734!$ 15,561!$ 11,396!
    • 41!LaMercatique!A SUCCESS STORY BASED ON!  Endorsement development!  Consumers insights!  Consumer pathway!  Changed their strategy from only “paid media” to “owned” and “earned” media!
    • 42!LaMercatique!DIGITAL IS NOT [ABOVE ALL] ARACE AHEAD !1.  Need to go back to the farmer market and become sales guy!2.  Focus on your brand mission and not on finished products!3.  Consider digital as a serie of tools but not as an end in itself!4.  There are no short term directly financial R.O.I. In the social web!
    • 43!LaMercatique!THANKS!Grégory Pouy!gregory.pouy@lamercatique.com!@gregfromparis!