A changing landscape?The advent of Web 2.0 brought about a step- change in how suppliers and consumers behave. It was effectively a process of „creative destruction‟ where company‟s traditional marketing abilities and consumer insights were challenged by the new dawn of user generated content (Richardson, 2008) .
Why should we be interested? Companies who don‟t predict (or react quickly ) to emergent factors will suffer strategically Emergent Strategy 1 PEOPLE impact Realised Strategy 3 Realised Intended Marketing Strategy Strategy 1 Realised (PROFIT) Strategy 2 Emergent Strategy 2 Emergent Strategy 4 PLANET impact Emergent Strategy 3 Change in consumer values Macro-environment impact The largest single cause of corporate failure is due to the company failing to market itself effectively (Slatter)
“REACH NEW” Heights Steps to e-marketing successReflect on • the role of e-commerce and your company your orientation and readiness to change your approach to marketingEnable change • by recognising & removing barriers to adoption of good marketing practices by putting the „e‟ into your Marketing MixActively communicate • by managing your message in a considered manner using tools and techniques that help your customers by getting your staff to „buy-in‟ to promoting internal change your brand to your customers by tailoring your communications tools to be fit for purposeConsider your situation • so you know your strengths and weaknesses and be able to exploit future opportunities to understand how those around you can help (or hinder) your progressHarvest Knowledge • to know you‟re achieving what you want to identify where you want to beNurture growth • by acquiring and satisfying new customers through developing relationshipsEmbrace co-ordination • by planning your marketing campaigns through monitoring your success in reaching your goalsWhere do you stand? • On the key issue of sustainability When technology keeps changing (adapted from Richardson (2010))
A changing landscape?Web 2.0‟s „step change‟ effectively made companies‟ knowledge bases redundant. They could no longer perceive users and customers in the same way. the last 10 years has seen many changes changing market place customer needs tumultuous economic conditions 2009 saw online advertising overtake that on television to become biggest non-print advertising sector in the UK (Sweeney, 2009)
A changing landscape? Technology… has been central to driving much of the change forward. has changed our own personal lives has infiltrated the very essence of our daily activities, Increases the pace of how we live whilst providing us with greater choices than ever
Internet Generation Amazon Launch of netbooks Napster 3G phones Launch of Launch of Launch of iPhone iPad web Hotmail browser Ipod Mosaic1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
An identity Crisis Who are the „users‟? Are Users and Buyers the same thing? Can you treat users of Twitter in the same way as you would Facebook or Linkedin? Research suggested that more than 90% of business people use the Internet to research major business decisions (Schmidt, 2007)
MultitaskersPeople are increasingly media multi-taskers ie they can be accessing multiplemedia platforms eg TV, online (say Twitter) and mobile simultaneously.Media multi-taskers buy more online compared with those who don‟t andworryingly for brand managers they are more discerning and hence likely toswitch brands after online research.The number of multi-taskers has increased by 38% since 2006 (EIAA, 2009)with 22% watching TV whilst going online simultaneously at least once a week.The demographic is not restricted to the young with silver surfers (ie those over55years old) seeing a 75% increase in multitasking since 2006.Their willingness to „change mind‟ after online research is product dependentwith a much higher tendency to switch holidays or FMCG products whilstremaining loyal to big ticket items such as cars.
Internet Segmentation of consumers:7 segments:1. Quickies(8%): Short visits to a few familiar sites.2. Just the Facts (15%): Search for specific information from known sites.3. Single Mission (7%): Information gathering or completion of a certain task at an unfamiliar site.4. Do It Again (14%): Visits to favourite sites.5. Loitering(16%): Longer leisure visits to familiar sites.6. Information, Please (17%): In-depth information gathering from a range of unfamiliar sites.7. Surfing (23%): Short visits to a lot of mostly unfamiliar sites.
A changing landscape?Questions 37 millionIn 2008 how many UK people were online?In 2008 how many people were online globally? 1.7 billionIn 2008 how many people had mobile phones globally? 4 billion it‟s easy to see the long-term potential for e-marketing
A changing landscape?Young UK consumers spend more timeonline than watching TV (Smith & Chaffey, 2005)50,000 UK homes were switching tobroadband each week (ibid)In 2009 65% of UK households had internetaccess of whom 86% had broadband(Advertising Statistics Yearbook, 2009).
Marketing as a social process: Buyer Something of value: Something of value: Goods, services, ideas Money, credit, labour, goods Seller (Dibb et al, 2006)
What is digital marketing? (2) “Digital Marketing is the management and execution of marketing using electronic media (such as the web, e-mail, interactive TV and wireless media) in conjunction with digital data about customers‟ characteristics and behaviours” Chaffey et al. (2006, p10) Customer Characteristics Demographics (age, income, etc) - (To identify target groups) Psychographics (motivation, lifestyle) Geographic Location Price Sensitivity, etc, etc, etc
What is e-marketing?Digital technologies can be described as electronicdevices, appliances, tools, techniques, technologiesand or systems. Baines, Fill & Page (2011)There‟s more to it than simply having a websiteMany companies are already using some of the e-marketing tools
What does e-marketing do?E-marketing helps companies to adapt to the needs of your customers reduce transaction costs easily communicate key details with customers eg changes to trading hoursE-marketing helps customers to move away from traditional time-location based behaviours.
So it‟s all good??? There are „rumblings‟ that users are becoming dissatisfied with the amount of „noise‟ and „clutter‟ starting to appear on SN sites and other such digital media. It has been reported recently by the BBC that users in the US are already logging in less to SN sites such as Facebook, Bebo and MySpace and once logged in, are actually spending less time on the site.
So it‟s all good???Industries and products are going to disappearPrint newspapers are doomed………WhyEstate agents?..........Why?What about sat nav?........Sat Nav is dead
So it‟s all good??? When Google (the new entrant) announced their iPhone sat nav app in 2009, shares in existing providers fell sharply. In January 2010 Nokia announced it was providing a sat nav app with all of its smartphones These are just two examples of Web 2.0‟s creative destruction and it‟s a challenge for managers and marketers alike
So it‟s all good??? In December 2009, online estate agents Rightmove‟s shares dropped more than 10% in one day when Google announced a potential website for 2010 where estate agents could list properties free of charge. Even the suggestion of such a site was enough to drive the incumbent‟s shares down
What does digital marketinginvolve? Understanding the changes in the macro/micro environment Understanding how customers behave online and in other digital ways Understanding how to apply the 7Ps Knowing how to design a customer orientated website Knowing how to build customer loyalty Developing a sustainable e-strategy Delivering value Managing your reputation
Tips to manage online reputations1Socialise campaigns- users are increasingly using multiple SN sites for differing reasons eg Facebook, Twitter for personal use and Linkedin or Smarta for business purposes. think creatively and combine invention with relevance in your communications. The battle now is for content AND style.2 Location, location, location- mobile devices are driving improvements in m-commerce. The new 4G handsets will drive this even faster multitaskers can no longer be assumed to be at a fixed point.3 Timing can be everything- multitaskers are inclined to go online in the evening. Factor this into your promotional campaigns and be aware of how their use of media is evolving- SN sites are evolving at ever increasing rates and the environment is more varied than ever before.4 Communicate to convert- multitaskers are heavily influenced by word-of-mouse – ignore their comments at your peril. monitor the micro environment particularly ie how others are using SN sites - be aware of how your company is being represented and discussed online and strive to manage this more effectively. monitor the Macro environment continuously- multitaskers are into the latest technologies hence you need to keep abreast of new developments and further convergenceEIAA (2009)
Marketing opportunities throughmobile phones: Voice calls for telesales SMS ad or voucher for promotion MMS rich video promotion Bluecasting – location based ad Bluetoothing – billboards and messages sent to mobile phone (e.g. Coldplay) Mobile Email – viral / permission marketing Mobile connection to Internet to promote Co./products/services Mobile TV
increased awareness and enlightenment ina crowded and cluttered environment.reach customers at the point of evaluation/decision-making
Why mobile?The DMA argues that m-marketing has a number of unique benefits – it is „always on, always with you and messages are always read‟. UK mobile penetration reached over 91% of the population in Q4 2010 which is truly exceptional. Its virtues in dynamically tracking responses and its speed in responding to events make it the ideal medium for direct marketers its potential for growth which will ultimately outstrip traditional PC based browsing.
Why mobile?Internal MarketingThe basic requirements for good internal communications include: General information about the organization Specific information about their role in the organization Clarity around their role A clear understanding of the organizations vision Information on workplace practices Opportunities to be involved and consulted Feedback on performance Access to training and development Access to communication channels. (Richardson & Laville, 2010)
Why mobile? Internal Marketing Companies such as Procter & Gamble, Oracle and Cisco seek user-generated feedback on products and ideas for new products. They‟re increasingly using the mobile platform to enable dialogue. Cisco (UK)‟s I-zone encourages employees to submit ideas and even rewards non- employees with an I-Prize for ideas. Often external perspectives can remove hurdles when internal stakeholders can‟t provide solutions
Why mobile? Search marketing Arguably the largest use of Web 2.0 is for search purposes and this is accelerating with mobile applications. Twitter acknowledged the importance of „searching‟ when they bought Summize in 2008 which is used to search online conversations and for tapping into the collective knowledge of web users. This would involve users posting questions to be answered by fellow Twitterers in an evolution of the “Answers ” model pioneered by Yahoo! and adopted by most other biography portals
Why mobile?Advertising Apple‟s purchase of Quattro Wireless, a mobile advertising company, for $275 million and Google‟s purchase of AdMob (for $750million) are indicators of how seriously these giants view the potential for mobile advertising. Mobile ads must be tailored to suit the mobile platform. A study of Kit Kat consumers found that mobile ads boosted brand awareness by up to 36%.
Text Message facts: The first text message (or telenote as it was originally called) was sent on 3rd December 1992 by Neil Papworth to colleagues at Vodafone and said Merry Christmas. The commercial launch of SMS took place in 1995 (source: www.text.it)
Text Message facts:In 2009 UK mobile users generated … a daily average of 265 million text messages and 1.6 million picture messages daily A text message total was 96.8 billion 600 million picture messages across the whole year 4.5 million picture messages being sent on Christmas Day itselfText messaging traffic over the recent festive period continued to rise proportionately.Christmas Day Increase on New Years Eve/Day Increase on 2009 2008 2009/10 2008 441,805,870 31% 874,033,799 21% (source: www.text.it)
Text Message facts:Total number of text messages (SMS) sent in:2009 total 96.8 billion………YoY growth (2009 vs 2008): 23% growth2008 total 78.9 billion2007 total 56.9 billionVideo and Picture messages (MMS)Total number of picture messages (MMS) sent in:2009 total 601 million2008 total 553 million2007 total 449 million (source: www.text.it)
New speak? all int valy o Dth rd t 600."^ T LB! Chrg 4t gns" he sd:In2 T valy o Dth rd t 600 All in the valley of Death rode the six hundred. "Forward, the Light Brigade! Charge for the guns!" he said: Into the valley of Death rode the six hundred The Charge Of The Light Brigade by Alfred, Lord Tennyson
New speak? 2 rds dvrgd in a wd & i, i tk the 1 les travld by & tht hs mde al th difernc Two roads diverged in awood and I, I took the one less travelled by, and that has made all the difference The Road Not Taken by Robert Frost
New speak? 4 Im a br f v ltl brn & lng wds bthr me For I am a bear of very little brain and long words bother me Winnie the Pooh with a little help from AA Milne
New speak? ggggUK4gg A horse! A horse! My kingdom for a horse! Richard III according to some dodgy bloke
New speak? YY UR, YY UB, ICUR YY4me Too wise you are, too wise you be, I see you are, too wise for me
Moving from Text messaging toEmail via mobile phones Improvements need to be made in the manner that people key in the text (authoring issues) Issue of Attaching files needs to be addressed Ability to forward content to other users needs to be refined if viral marketing is to take a role in m-commerce
Using a mobile platform toacquire customersSome practical steps you can take are… Divide your contacts by heavy or light smartphone usage, time slots, information seekers etc Target your m-comms towards timing-driven users with messages such as “sale ends at 9pm”. If you‟ve established permission use Bluetooth to highlight bargains when users are within proximity of the supplier
Using a mobile platform toacquire customers (cont‟d)Some practical steps you can take are… Send time-related messages when most likely to affect their behaviour eg when people are leaving work to remind them to stop on the way home. Keep messages short so that they are easily read on mobiles, Provide notices, e-vouchers and regular say monthly newsletters- they need to be suitable for computers but still be readable on mobile devices. Link your m-comms to your other marcomms eg establish whether they sometimes access emails on their mobile phone. Look to segment your mailings with increasing accuracy to target mobile email readers as a distinct group.
E-loyalty Reid-Smith (2009) suggested a Seven-Step e- Loyalty Consulting Process as follows: Clearly Establish e-Loyalty Goals and Objectives Identify the Most Valuable Customers (MVCs) and their loyalty drivers Develop a Strategy to Create an Intelligent Dialogue with Customers Design a Web offering to fulfill on MVCs loyalty drivers Formalize an e-Loyalty Program for MVCs Persuade Customers to Want a Relationship Develop Feedback and Measurement Tools
Key strategic areas that m-comms can affect Supporting major change Communicating messages from the management Communication the business mission/vision/values Raising awareness of business issues and priorities
Key strategic areas that m-comms can affect (cont‟d) Raising and maintaining the credibility of the management Employee motivation Allowing for staff to feedback Improving the communications skills of management.
Monitoring m-comms Controls must be established to assess how well your marketing plan is being put into practice and again m-comms can make this easier and more accurate. There should be scheduled opportunities to reflect on the plan‟s effectiveness. All stakeholders should be aware of the timescales and encouraged to „feedback‟ via the mobile platform either in the form of messages, a social network site or a blog.
Monitoring m-comms Managers need to be seen to act on these feedback from staff and other stakeholders. Managers can measure twitter behaviour using resources such as www.tweetstats.com and www.twitterholic.com . These allow managers to see the volume of tweets by week, day or even hour. They also allow monitoring of retweets and replies. In doing so managers can follow key trends, identify new issues… as well as who‟re the biggest Twitterers.
Codes of Practice Direct Marketing Association (DMA) provides an excellent guide entitled “Mobile Marketing Best Practice Guidelines” which covers collecting and managing data, mobile campaigns, measurement and reporting. Have no doubt that at times dealing with consumers can be difficult and the guide refers to tricky areas such as adult content, complaints and dispute resolution.
Codes of Practice A copy of the code of practice can be obtained from the website for the Independent Mobile Classification Body (IMCB)‟s website (http://www.imcb.org.uk/classificationframe/).
Codes of Practice The DMA suggests that when setting up a mobile campaign you need to ensure that The customers have given permission to communicate with them specifically via this medium You‟re clear about the data being used (preferably make sure that it has been collected in-house or that the exact collection methods are known) The medium is appropriate to that specific offer/target group (what is trying to be achieved – how will mobile support it?) The message is appropriate for the medium (can it be communicated by text or via images)
Codes of Practice (cont‟d The DMA suggests that when setting up a mobile campaign you need to ensure that Any cost to the consumer can be justified and is clear in the communication (remember that they pay to send messages and can be charged to receive any acknowledgement – or „bounce back‟ – message, so make clear that they understand the full cost to them) The consumers understand that any downloadable content within your campaigns (eg ring tones or wallpapers) are reliant on the compatibility of their handset and also how it will be charged You are clearly identified to the mobile user Your message includes the ability for the user to opt out from further messages
Problems with Mobile TechnologyBarriers to SME adoption of e-commerce do exist such as SMEs lack awareness in terms of sources of assistance eg grants They perceive IT skills problems They feel their company size is too small to benefits. They perceive the required technology to be too expensive/complicated or incompatible with in-house systems
Bluejacking Chaffey (2010) suggests “Bluecasting involves messages being automatically pushed to a consumers Bluetooth enabled phone or they can pull or request audio, video or text content to be downloaded from a live advert. “In the future ads will be able to respond to those who view them”. Bluejacking involves sending a message from a mobile phone (or other transmitter) to another mobile phone which is in close range via Bluetooth technology. It has potential for: Viral communication; Community activities (dating or gaming events); Location-based services – electronic coupons as you pass a store. (Chaffey et al., 2006, p.124).
Earn the right to Bluetooth Bluetooth Example Distance In context or Call to application relevant action Very close range at shows and events & a few centimeters Yes- the consumer Yes positive consumer in interactive outdoor has to interact by interaction posters offering their mobile to the Bluetooth point.The DMA Close range ‘in the user is attending a Dozens of meters Yes-the content is Yes- it’ssuggest four context’ Bluetooth concert & receives a in context & implied activation ringtone download by directly relevant tobroad Bluetooth interaction the band they’re the location/eventmarketing seeing & reflects the consumer’s likelyapplications – interest in the message Close range general a general environment Dozens of meters No- consumers no clear Bluetooth activation in which the message may regard it as an call to interaction is not necessarily in invasion of privacy action context eg a shopping and consider this and mall the basis of a grievance Wide range general a wide area general up to 100m and No- consumers no call Bluetooth activation environment where beyond if may regard it as an to interaction the message is not in networked- invasion of privacy action context eg a street or possibly vast &consider this the train station location distances basis of a grievance
Future of Mobiles More people will access the internet through Mobile devices Google ANDROID operating system will become a very powerful player Mobile phones will have more processing power than current PCs Mobile phones will be able to communicate with many devices Mobile phones may be equipped with MICROPROJECTORS.
Future developments4G New ranges of applications will make the most of these developments particularly based on video which at times still struggles under 3G. V-logging will increasingly replace traditional blogging where the users use their mobile sets in situ rather than sat at a desk. Mobile enabled video conferencing will become commonplace as the camera and microphone technologies improve. Hence you‟ll be able to have more, better quality interactions with remote colleagues whilst reducing your carbon footprint.
Future developments4G The next generation of phones will have substantially more functionality than the current 3G versions. The bandwidths will be substantially better, the processing power and storage will continue to double every 18 months and downloads will take place at up to 100MB per second.
Paying via your Mobile Phone The Major Mobile phone companies have launched a payment system called Payforit to permit their customers to pay for items. Paying for parking via your phone
Future developments Anti-virus protection Personalisation and customisation Intranet / extranet access Multimedia messaging Location-based services Mailbox management Multiple subscriptions and devices Secure transaction billing Audio / video streaming – video conferencing Speech Recognition
Future developmentsPersonalisation and customisation Suppliers will increasingly seek to personalise their full and mobi websites in order to improve the user experience. iGoogle lets you create a personalised homepage that contains a Google search box at the top, and your choice of gadgets. You‟ll access it from your smartphone and have access to your Gmail messages headlines from Google News and other news sources, weather forecasts, stock quotes, movie showtimes etcOn top of this you‟ll be able to store bookmarks whilst mobile giving you quick access to the sites when you‟re next plugged in.
Future of m-commerce Clothing integrated with technology Bracelet mobile Fingerprint phones Access: Biometrics The trend for customisation will continue on a number of fronts. Mobile phones embedded in watches are already available. Increasing miniaturisation means this trend (of embedding theSlim card phone) will be extended to clothing and possibly even jewellery.mobile Bluetooth motorcycle helmets are old hat (sorry!) so don‟t bephones surprised if more clothing becomes integrated with technology
ReferencesAdvertising Standards Yearbook (2009) available via http://www.warc.com [Accessed 12-10-09]Armstrong, G & Kotler, P. (2008) Marketing- An Introduction. 9th ed Pearson Education: LondonBaines, Fill & Page (2008) Marketing. Oxford University Press: OxfordChaffey (2009) http://www.davechaffey.com/ [accessed 10-10-09]DIbb, S., Simkin, L., Pride, W.M. & Ferrell, O.C. (2006) Marketing: Concepts and Strategies. 5th European ed. Houghton Mifflin: AbingdonFill, C. (2009) Marketing Communications: Interactivity, Communities and Content 5th ed FTKotler, P., Armstrong, G., Wong, V. & Saunders, J. (2008) Principles of Marketing. 5th European ed. FT Prentice Hall: HarlowSweeney, M. Internet overtakes television to become biggest advertising sector in the UK, Guardian.co.uk (http://www.guardian.co.uk/media/2009/sep/30/internet-biggest-uk- advertising-sector) [accessed 21/11/2009]