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  • 1. Where Marketing is Headed:Convergence of Digital and Traditional Marketing
    March 2011
    Yuchun Lee
    VP & General Manager, Enterprise Marketing Management Group
    CEO, Unica Corporation, an IBM Company
  • 2. Outline
    • Changing world of marketing
    • 3. Thoughts from market leaders
  • Accelerated Change in an Increasingly Fragmented Online World…
    Years to reach 50M users:
    Channels proliferate…
    Tablet
    2 Yrs
    Facebook
    3 Yrs
    • The Internet evolves…
    Internet
    4 Yrs
    • The rate of change accelerates…
    TV
    13 Yrs
    Network of people
    Network of pages
  • 4. First Principles
    “The purpose of business is to create
    and keep a customer” -- Peter Drucker
    The purpose of marketing is to generate
    demand and be the steward of the brand…
  • 5. What’s Happening with Demand Generation…
    From This…
    To This…
  • 6. What’s Happening with Brands…
    …To
    Brand
    Brand…
    YOUR
    From
    From Paid Media…
    …To Earned Media
  • 7. Vision of “New Marketing” – is Clear…
    Past
    Future
    “Offline”
    Online
    Channels
    Single channel
    Multi-channel
    Mass media blasts
    Personalize messages
    Silo’ed
    Coordinated
    Processes
    Intuition driven
    Data driven
    Static
    Agile
    Product-Centric
    Customer Centric
    Approach
    Company ‘s Brand
    Customer’s Brand
    Selling
    Servicing
  • 8. Marketing’s NewResponsibilities
    Good Marketing is Service
    Demand Generation(Consideration, Preference, Transact)
    Awareness
    Prospects
    Energize
    Customers
    Customer Experience
    Customers
    (Quality,
    Consistency,
    Convenience)
    (Delighted,
    Fans,
    Broadcasters)
    Good Service is Marketing
    8
  • 9. Technology Increasingly Messy…
  • 10. Top Three Bottlenecks for Marketers
  • 11. Technology: What Marketers Want
    Marketing needs a more comprehensive and integrated application suite
    87% agree an integrated [EMM] application suite is required*
    *Source: Unica’s Annual Survey of Marketers 2011
    66% of marketing technology decisions are made/led by the CMO’s office**
    **Source: Marketing Leaders Take On Technology, Forrester 10/2009
  • 12. What Software Buyers Want:
    • Low to no startup infrastructure cost
    • 13. Low application competency requirement
    • 14. Pay as you go
    • 15. Easy to use software
    • 16. Access to application anywhere, any time
    • 17. Quick time to production
    • 18. Lower on-going administrative and support
    • 19. Services to optimize usage of application
    • 20. Easy upgrades
    • 21. Integration with partner ecosystem
    • 22. Cost effective handling of peak loads
    Easy To Buy
    Easy To Use
    Easy To Deploy
    Easy To Scale
  • 23. Comprehensive Suite of Marketing Capabilities(Traditional , Cloud Based, and Hybrid)
    Awareness
    Decisioning
    Execution
    Centralized Decisioning
    Determine the best message to extend in outbound and inbound marketing channels.
    Cross Channel Execution
    Deliver highly relevant marketing messages and retain a corporate memory of interactions.
    Customer Awareness
    Leverage comprehensive data to identify opportunities and predict marketing outcomes.
    Integrated Marketing Operations
    Facilitates collaboration and cross-channel planning, design, execution, and measurement
    Facilitates collaboration and cross-channel planning, design, execution, and measurement.
    13
  • 24. Plans & Budgets
    People & Processes
    Data & Assets
    Measurement & Performance
    Comprehensive Suite of Marketing Capabilities(Traditional , Cloud Based, and Hybrid)
    Awareness
    Decisioning
    Execution
    Segmentation
    eMail
    Web and Digital Analytics
    Offer Management
    Inbound Integration
    Event Detection
    Interaction History
    Distributed Marketing
    Predictive Analytics
    Lead Routing and Monitoring
    Real-time andBehavioral Targeting
    Visual Exploration
    Contact Optimization
    Online Ad/Search Bid Management
    Integrated Marketing Operations
    Facilitates collaboration and cross-channel planning, design, execution, and measurement.
    14
  • 25. Web and Digital Analytics
    Digitization of all channels
    From traffic to behavior analysis
    Integration within suites
    Online optimization suite
    E-Commerce suite
    Marketing suite
    Enterprise suite
    Universal Tags
    Digital Behavior Mart
    SaaS, Appliance, Hybrid
  • 26. Integrating Web Analytics Across Channels
    Tap into web visitor level detail
    4. Trigger inbound channel offers (Intelligent Offer, website content, mobile, IP device, contact center, etc.)
    3. Automate business rules
    2. Identify and create segments
    5. Trigger outbound offers (LIVEmail, Behavioral Display Ads, SMS/MMS, direct mail, etc.)
    6. Prioritize leads for direct sales
    16
  • 27. IBM's world view
    Marketing is consuming more and more technology
    Marketing professionals are becoming key technology decision makers
    Control over $1T of marketing spend annually
    Decide or lead 2/3 of marketing technology decisions
    Increasingly influential in other technology areas (via customer experience mandate)
    IBM is investing to develop this emerging market
    Deliver integrated solutions
    Define industry standards
    Consolidate CMO’s top agenda
    Shape industry conversations
    17
  • 28. Early Support from the AR Community on Smarter Commerce
    IBM understands the market"Forrester is very much in synch on the key points. We've identified the same trends, and we see many of the same things you are espousing.“
    IBM is strongly positioned:" I really love everything about the slides...they do a beautiful job of framing the issues, the changes that are happening, how IBM sees the solution vision, and why IBM is strongly positioned to deliver solutions that embody that vision“
    IBM has the vision“You’ve got the right idea - in the past, enterprise systems were all about efficiency and quality. Customer centricity is nowhere to be found. Now it is much more than that. To stay competitive, companies must build their value chain around the customer.“
    IBM has the strategy:“Customer centricity is a strategy, an aspiration. But with Smarter Commerce, leveraging analytics, process and strategy - building customer centricity throughout the value chain, it becomes applied. Smarter Commerce makes it real.”
    IBM has the delivery capacity“IBM has all the pieces. You have everything here, you’ve got it all.”
    Gartner
    IBM has the vision“What’s interesting to me is that you have a family of best of breed products. This will drive the conversation away from do I buy IBM to how do I use IBM.“
    Gartner
    IBM understands the market “Brilliant! Beautiful deck and a compelling story.”
    18
  • 29. Smarter Commerce Industry Best Practice Content
    Smarter Commerce
    Adoption Roadmap
    Industry-Specific
    Case Study Repository
    CXO commuity sites
    Smarter Commerce
    Discovery Workshops
    IBM
    Smarter Commerce
    Partner Program
    IBM Sponsored Smarter Commerce
    Research
    19
  • 30. IBM Coremetrics Benchmark
    Cyber Monday Online Spending Surpasses Black Friday Online, Reports IBM
    – Optimistic Shoppers and Aggressive Promotions Drive Momentum, Pushing Sales Nearly 20% Above 2009 Levels –
    SAN MATEO, Calif. – Nov. 30, 2010 – The U.S. online retail sector delivered strong growth on Cyber Monday
    More than 10,000 print hits:
    “…online shoppers had spent 20% more than they did a year ago as of that time, according to International Business Machines Corp.'s Coremetrics…”
    "Cyber Monday has turned into its own phenomenon," said John Squire, chief strategy officer at Coremetrics, a unit of International Business Machines Corp. (IBM). “
    “IBM's Coremetrics, found Cyber Monday sales rose 19.4 percent over last year.”
    Over 400 Broadcast TV hits:
    Black Friday Online Spending Delivers Double Digit Growth, Reports IBM
    –Consumers Flock to Online Stores for Holiday Deals and Splurges –
    SAN MATEO, Calif. – Nov. 27, 2010 – The U.S. online retail sector delivered double digit growth on Black Friday 2010 compared to the same period last year, according to
    Thanksgiving 2010
     Below please find a snapshot of Thanksgiving Day data as of 12:00 amPST on Friday, November 26:
    Thanksgiving 2010 proved to be a banner shopping day for online retailers.
    Thanksgiving 2010 sales were up 33 percent over
  • 31. What we see, hear, and believe – All point to one fact:
    Business success depends on being relevant to customers andprovide a superior customer experience
    Execution requires deep insight into your customers’ needs and wants
    Customer insight requires technology and a business culture of “listening”
    Web analytics technology is at the center
    Analysts are catalysts to enablement
  • 32. Eyes
    Undivided
    Attention
    Ear
    Heart
    Listen…
    How to Listen?
  • 33. Thank You!
    ylee@us.ibm.com
    23