MTDC 2007 Marketing Trends

Marketing Trends June 7, 2007

Marketing “… identifying and meeting human and social needs.” Philip Kotler

Agenda
Myths
Trends
Paradigms

Driver
The Internet
The Internet continues to be the key driving force behind marketing innovation
WOMM widget bliget chicklet buzztracker mashup delicious social media social bookmarking SMO trackback digg tag typelist blogroll viral marketing buzz marketing vblog podcasting contentcasting

Marketing Myths
The same marketing techniques work every time
You need a multimillion budget to create a commercial
Marketing is all about advertising
Marketing is simply an operational expense
A perfectly executed marketing plan will guarantee success
Marketing’s goal is to increase sales
Marketing starts when you’re ready to launch
Marketing is a function. “Marketing owns it”
Innovation comes from inside
Never give the product / service away
You must position and identify with an industry & competition
Target the broadest customer segment

Crisis In Mass Marketing
18%: Proportion of TV advertising campaigns generating positive ROI
54 cents: Average return in sales for every $1 spent on advertising
256%: The increase in TV advertising costs (CPM) in the past decade
84%: Proportion of B2B marketing campaigns resulting in falling sales
100%: The increase needed in advertising spend to add 1-2% in sales
14%: Proportion of people who trust advertising information
90%: Proportion of people who can skip TV ads who do skip TV ads
80%: Market share of video recorders with ad skipping technology in 2008
95%: The failure rate for new product introductions
117: The number of prime time TV spots in 2002 needed to reach 80% of adult population – up from just 3 in 1965
3000: Number of advertising messages people are exposed to per day
56%: Proportion of people who avoid buying products from companies who they think advertise too much
65%: Proportion of people who believe that they are constantly bombarded with too much advertising
69%: Proportion of people interested in technology or devices that enable them to skip or block advertising
Source: Justin Kirby & Paul Marsden (2006). Connected marketing . Oxford, UK: Butterworth-Heinemann. xix

Status of Marketing Management
“ In many organizations, the corporate marketing function has lost budget, head count, influence, and confidence, resulting in strategic consequences than run deeper than many managers may realize.”
Source: The Decline and Dispersion of Marketing Competence. 2006 MIT Sloan Management Review

Green
Grey
Karma Capitalism
Transparency
Authenticity
Democratized advertising
WOMM
Controversy
Market space
Social media
Trusted social media advertising
Online paid search ads
Trends

Out
Traditional advertising
Monologue
Market place
Classical 4Ps paradigm

70+ Million Weblogs March 07 March 03 Source:http://www.sifry.com/alerts/archives/000493.html

Websites WW Netcraft November 2006 survey In May 2007, the number reported was a little over 118 million worldwide

Source:http://www.sifry.com/alerts/archives/000493.html

Posts By Language Source:http://www.sifry.com/alerts/archives/000493.html #1 Japanese #2 English #3 Chinese

Global Online Population
Currently about 1.2 billion
Projected to grow to 1.8 billion by 2010

Summary
70 million weblogs
About 120,000 new weblogs each day, or...
1.4 new blogs every second
3000-7000 new splogs (fake, or spam blogs) created every day
Peak of 11,000 splogs per day last December
1.5 million posts per day, or...
17 posts per second
Growing from 35 to 75 million blogs took 320 days
22 blogs among the top 100 blogs among the top 100 sources linked to in Q4 2006 - up from 12 in the prior quarter
Japanese the #1 blogging language at 37%
English second at 33%
Chinese third at 8%
Italian fourth at 3%
Farsi a newcomer in the top 10 at 1%
English the most even in postings around-the-clock
Tracking 230 million posts with tags or categories
35% of all February 2007 posts used tags
2.5 million blogs posted at least one tagged post in February
Source: Technorati March 2007. http://www.sifry.com/alerts/archives/000493.html

Social Media Social media describes the online technologies and practices that people use to share opinions, insights, experiences, perspectives and media itself. Social media can take many different forms, including text, images, audio, and video. These sites typically use technologies such as blogs , message boards , podcasts , wikis , and vlogs to allow users to interact. Source: Wikipedia

Word of Mouth Marketing
WOMM: Umbrella term
Buzz marketing
Special hook, event, promotion. Aqua Teen Hunger Force Boston Bomb Scare
Viral marketing
Branded material, websites, widgets, bligets, videos, utilities, collaboration tools etc. that sneezers spread. ParkRidge47, Vote Different
Influencer marketing
Identifying and finding the influencers
Evangelist marketing
Turning most loyal customers into citizen marketers
Street marketing
Interacting at popular offline places like Buzz Oven
Stealth / Undercover marketing
Bree, lonelyGirl15
Source: Justin Kirby, & Paul Marsden (2006). Connected marketing . Oxford, UK: Butterworth-Heinemann. 198 YouTube Aqua Teen Buzz Oven Bree

Widget Marketing Cool plug-n-play things for your sidebar

Mashup Example of Google Maps mashup on MySpace account.

U.S. Online Ad
$16.9 billion market in 2006
5.9% of the $285 billion total U.S. advertising market in 2006
Notable M&A activity
Google bought DoubleClick for $3.1 billion in 4/07
Microsoft bought aQuantive for $6 billion 5/07
WPP Group bought 24/7 Real Media for $649 million 5/07
Source: Wall Street Journal, May 25, 2007, pg. B1

U.S. Online Ad Spending Source: Wall Street Journal, May 25, 2007, pg. B1

New Paradigm
Sell your idea first
Find your actors (audience) first
Size does not matter - PlentyOfFish
Reduce risk by pushing control out
Value creation increases at the edge
Decentralize authority, process, and IP
Transparency creates value
Truth travels fast
Price alone is not sustainable
Reengineer your value chain
Skip intermediaries wherever possible
Reinvent your business models
Change the status quo

New Paradigm
Democratization of 4Ps paradigm
Citizen branding
Collective collaboration
Collective risk sharing
Collective product innovation
Collective IP ownership
Citizen marketers will sell “remarkable” ideas
Innovators should adopt the 1% rule
If you don’t find the “sneezers” or connectors, the 80/20% rule won’t matter
Work backwards
Build your brand around your idea first. If the community you are targeting does not coalesce and rally around the idea, continuing to build the product is irrelevant
Create your own “blue ocean”
If you play it safe and go by the rules of your industry, value chain, and business model – you’re dead!
Most industries and markets are saturated and highly concentrated.

Old 4Ps Paradigm 4Ps Value Creator Customer

New Paradigm 4Ps Value Innovator Customer Product Brand

New Value Innovation Paradigm Source: Mohanbir Sawhney, & Deval Prikh (2001). Where value lives in a networked world. Harvard Business Review , HBR #R0101E.

It’s About Social Behavior
It’s not about a cheaper product or your idea. Try to change customer behavior.
It’s not about better coffee – it’s about the place
I am not looking for a ¼” drill bit – I need to make a hole
It’s not about the hog, it’s about a lifestyle
It’s not about the sound – it’s about how it makes me feel
It’s not about the sound – it’s about being hip
It’s about my space
It’s about my video
It’s about my opinion
It’s about the experience
It’s about your choices, places, and time
Examples
Apple, Starbucks, JetBlue, MySpace, Harley-Davidson, Tivo, Stew Leonard’s, Threadless

Implications
Reached the tipping point
The static web maturing
Monologue marketing out
Live Web (a/k/a Blogosphere) is making information transparent
Word travels fast
People are more likely to act on a peer’s recommendation by factor X
Marketing is a reflection of social paradigms
The new social media and networks changing customer expectation and behavior

Napa Consulting Group
Marketing & strategic planning
Helping clients adapt emerging e-business models and social media in pursuit of value innovation.
http://gotastrategy.typepad.com

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MTDC 2007 Marketing Trends

by kameran on Jun 06, 2007

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MTDC 2007 Marketing Trends — Presentation Transcript