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WELCOME

Everything They’ve Told You
  About Marketing Is Wrong

    370 – THANK YOU!

         April 21, 2009
Value Proposition:
                    • Education: Webinars/Research
                    • Best Practices
               ...
Ron Shevlin,
   Senior Analyst
     Aite Group
   and author of
 Everything They’ve
  Told You About
     Marketing
      ...
Actionable, strategic advice on IT, business, and regulatory issues in the financial services industry




Everything They...
Theme



         Marketing is suffering
         from Ignis-fatuus-itis*




*Ignis fatuus: Something that misleads or de...
Agenda

• What changed?
• What’s misleading marketers (and what
  afflictions do they cause)?
• What should marketers do?
Theory: The four Ps of marketing

•   Product
•   Place
•   Price
•   Promotion

Source: McCarthy EJ (1960) Basic Marketin...
Reality: The three Ps of marketing

Predict
                Push
                                Pray
The 3 Ps ain’t working like they used to
15
“We are fueled by a need
  to gain more control
      over our lives,
    to have valid and
  significant choices.”
What changed?


       Demand                      Supply
Self-directed consumers   More points of involvement
 Less relia...
Misleading marketing myths

• Marketing stories
• Customer engagement
• Customer advocacy
“Marketing is the story
 marketers tell to
 consumers.”

Seth Godin
“All Marketers Are Liars”




                        ...
Affliction #1: Delusions of brandeur


    A condition where marketers
     think that a branding effort
          will be...
“Good relationships
  aren’t about clear
  communication —
 they’re about small
     moments of
   attachment and
      in...
Marketing is getting
  customers to tell
stories to themselves

“Successful brands have a
story that consumers tell
  them...
The stories loyal customers tell

They have the most
  helpful employees


                      They help me make
       ...
“Engagement:
Turning on a prospect
   to a brand idea
  enhanced by the
surrounding context.”

  Advertising Research
    ...
Engagement: Confusion reigns

• Importance
  – One-third of agency execs said customer engagement
    is essential to thei...
“Engagement:
   A series of interactions
that strengthen a customer’s
emotional connection to the
      product or firm.”
...
What is customer engagement?

•   Frequency of purchase
•   Frequency of interactions
•   Type of interactions
•   Locatio...
“Why do Apple customers care
                         so much (about Apple)?
                     A good question…but the ...
Example: Measuring engagement
                          0                1               2
Money movement           None  ...
Engagement segments

   High
Engagement
   25%




                                                Low
                   ...
The economics of engagement

   I often recommend                                               41%
        my bank to my
...
Engagement = strength of relationship
                                      1. What what can we do to
                Cust...
“The best way to
 measure loyalty is to ask
 one simple question:
 Would you recommend
 us to a friend?”

    Fred Reichhe...
Affliction #2: Net Promoter Syndrome


    The belief that if the number of people
  who might possibly recommend your fir...
(Some of) The issues with NPS

           • Cost: Requires large investment to
             collect, analyze, and dissemin...
Referral behavior versus intention
     Q. How do you feel about referring your
         bank to your family and friends?
...
Behavior trumps intention
   Percentage of segment that plans to open more
  accounts with their bank over the next two ye...
Trust is the differentiator

              Trusts bank                                             55%
              very ...
Trust is multi-dimensional
                   Trust: Assured reliance on the character, ability,
                     stre...
The stories loyal customers tell

“They have the most       “They help me make          “They’re really easy to
 helpful e...
The ignis fatuus of marketing



       Marketing is the story
       marketers tell customers
       Customer engagement ...
Marketing’s job

          High                                                     High




Trust     Basic              ...
What are CMOs doing about this?

          What they said*                                     What they meant

79% said t...
The prevailing mentality


   “With loyalty to brands
    decreasing over time,
  companies need to figure
 out how to rea...
Affliction #3: Blogophilia


     According to Wikipedia, this is
“the irrational belief that creating a blog
   or partic...
Marketing must make changes


Philosophy   Persuasion-based   Participation-based



  Focus             Attitudes   Behav...
Sense-and-respond marketing



Sensing consumers’ needs and intentions
      based on their behavior and
    responding wi...
One guru who got it right

                    “The secret to
                   creating strong
                   relati...
Aite: Partner, Counterpart
Aite Group (pronounced eye-tay) is an independent research and
advisory firm focused on busines...
Blog
Question Forum
Research




Social Networks
Micro-Blogging




   Resources
Our Last FREE
                    Webinar:
                    http://thepmn.org




         Register with promo code
   ...
Start and continue the
     conversation.
         THANK YOU




       INFO@THEPMN.ORG
   mdellapenna@aitisolutions.com
 ...
PMN Webinar: Everything They\'ve Told You About Marketing Is Wrong
PMN Webinar: Everything They\'ve Told You About Marketing Is Wrong
PMN Webinar: Everything They\'ve Told You About Marketing Is Wrong
PMN Webinar: Everything They\'ve Told You About Marketing Is Wrong
PMN Webinar: Everything They\'ve Told You About Marketing Is Wrong
PMN Webinar: Everything They\'ve Told You About Marketing Is Wrong
PMN Webinar: Everything They\'ve Told You About Marketing Is Wrong
PMN Webinar: Everything They\'ve Told You About Marketing Is Wrong
PMN Webinar: Everything They\'ve Told You About Marketing Is Wrong
PMN Webinar: Everything They\'ve Told You About Marketing Is Wrong
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PMN Webinar: Everything They\'ve Told You About Marketing Is Wrong

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Are you sick and tired of reading the same old blah, blah, blah, from the so- called marketing experts who just tell you stuff you already know? Then you need to download this presentation as the grumpy old man cuts through the morass of bad advice and introduces you to the must-dos in the new world of marketing.

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Transcript of "PMN Webinar: Everything They\'ve Told You About Marketing Is Wrong"

  1. 1. WELCOME Everything They’ve Told You About Marketing Is Wrong 370 – THANK YOU! April 21, 2009
  2. 2. Value Proposition: • Education: Webinars/Research • Best Practices • Case Studies • Access to Future/Potential Customers: Gen Y Panel • Don’t forget to join today! Marketing Is Evolving? So How Can The PMN Help?
  3. 3. Ron Shevlin, Senior Analyst Aite Group and author of Everything They’ve Told You About Marketing Is Wrong Our Featured Speaker
  4. 4. Actionable, strategic advice on IT, business, and regulatory issues in the financial services industry Everything They’ve Told You About Marketing Is Wrong Participatory Marketing Network Webinar April 21, 2009 Ron Shevlin Senior Analyst Aite Group Page 4
  5. 5. Theme Marketing is suffering from Ignis-fatuus-itis* *Ignis fatuus: Something that misleads or deludes; an illusion
  6. 6. Agenda • What changed? • What’s misleading marketers (and what afflictions do they cause)? • What should marketers do?
  7. 7. Theory: The four Ps of marketing • Product • Place • Price • Promotion Source: McCarthy EJ (1960) Basic Marketing: A Managerial Approach. Homewood IL: Irwin.
  8. 8. Reality: The three Ps of marketing Predict Push Pray
  9. 9. The 3 Ps ain’t working like they used to
  10. 10. 15
  11. 11. “We are fueled by a need to gain more control over our lives, to have valid and significant choices.”
  12. 12. What changed? Demand Supply Self-directed consumers More points of involvement Less reliant on firms Web sites More pull, less push Search engines More involved Social networks
  13. 13. Misleading marketing myths • Marketing stories • Customer engagement • Customer advocacy
  14. 14. “Marketing is the story marketers tell to consumers.” Seth Godin “All Marketers Are Liars” 24
  15. 15. Affliction #1: Delusions of brandeur A condition where marketers think that a branding effort will be the antidote to falling or stagnant sales
  16. 16. “Good relationships aren’t about clear communication — they’re about small moments of attachment and intimacy.” John Gottman Executive Director Relationship Research Institute Page 26
  17. 17. Marketing is getting customers to tell stories to themselves “Successful brands have a story that consumers tell themselves when they reach for the product in the store to buy it.” Larry Huston VP, Innovation Procter & Gamble
  18. 18. The stories loyal customers tell They have the most helpful employees They help me make the right choice They’re really easy to do business with
  19. 19. “Engagement: Turning on a prospect to a brand idea enhanced by the surrounding context.” Advertising Research Foundation
  20. 20. Engagement: Confusion reigns • Importance – One-third of agency execs said customer engagement is essential to their clients versus half of marketers • Business impact – Twice as many agency respondents as marketers said that customer engagement initiatives increased profits • Measurement – Half of marketers have dedicated engagement metrics, just 30% of agency execs think their clients have them Source: cScape, 2007 Customer Engagement survey
  21. 21. “Engagement: A series of interactions that strengthen a customer’s emotional connection to the product or firm.” Aite Group
  22. 22. What is customer engagement? • Frequency of purchase • Frequency of interactions • Type of interactions • Location of interactions • Rewards program activity • Referral behavior • Category engagement
  23. 23. “Why do Apple customers care so much (about Apple)? A good question…but the wrong question. The real question is: Why don’t most consumers care more about firms and brands?” Umair Haque Director Havas Media Lab A: Because they don’t care that much about the product/service that they purchased in the first place
  24. 24. Example: Measuring engagement 0 1 2 Money movement None 1-5 times 6+ times Rate monitoring Never Infrequent Often PFM usage Never Infrequent Often Banking advice Never Online In-person OL banking/bill pay Bank offline Bank online Bank + bill pay online Product research Offline Online at bank Online at sites bank + social nets
  25. 25. Engagement segments High Engagement 25% Low Engagement 75% Source: Aite Group February 2009 Customer Engagement Survey
  26. 26. The economics of engagement I often recommend 41% my bank to my family and friends 23% High engagement I plan to open more 27% Low engagement accounts with my bank over the next 2 years 5% Source: Aite Group February 2009 Customer Engagement Survey
  27. 27. Engagement = strength of relationship 1. What what can we do to Customer Engagement engage them? Low High 2. What needs aren’t we meeting for these highly High 3 4 engaged customers? 3. Who are these attrition risks Breadth of 5 relationship and what can be done to retain them? Low 1 2 4. What is the profit impact of increasing customer engagement? 5. Who’s migrating between quadrants?
  28. 28. “The best way to measure loyalty is to ask one simple question: Would you recommend us to a friend?” Fred Reichheld 38
  29. 29. Affliction #2: Net Promoter Syndrome The belief that if the number of people who might possibly recommend your firm is greater than the number of people who hate your guts and want to destroy you, then your firm is on the path to Nirvana and should tell its story at conferences
  30. 30. (Some of) The issues with NPS • Cost: Requires large investment to collect, analyze, and disseminate data -- and change incentive plans • Operational disconnect: Doesn’t help identify what operational enhancements are needed • Periodic: Captures opinion at periodic intervals, not continuously • Intention: People don’t always do what they say might do
  31. 31. Referral behavior versus intention Q. How do you feel about referring your bank to your family and friends? I would never I often recommend recommend it my bank to my family 13% and friends 28% I would recommend it if I thought there was a good fit 60% Source: Aite Group February 2009 Customer Engagement Survey
  32. 32. Behavior trumps intention Percentage of segment that plans to open more accounts with their bank over the next two years Often recommend 20% bank to family/friends Would recommend 7% bank if it was a good fit Source: Aite Group February 2009 Customer Engagement Survey
  33. 33. Trust is the differentiator Trusts bank 55% very much Trusts bank 25% somewhat Level Has no of 15% opinion trust Often recommend Trusts bank bank to family/friends 11% very little Doesn’t trust 11% bank at all Source: Aite Group February 2009 Customer Engagement Survey
  34. 34. Trust is multi-dimensional Trust: Assured reliance on the character, ability, strength, or truth of someone or something “To demonstrate trust, it’s important for firms to . . . ” Human-focused Advice-related Operational-oriented  Have employees that  Clearly explain their  Respond quickly to live up to values products and services inquiries portrayed in ads  Acknowledge  Alert me to  Have friendly and competitors’ offerings changes/issues helpful service reps  Tell me when it’s a bad  Rarely/never make  Listen to my problems idea to buy their mistakes and concerns products
  35. 35. The stories loyal customers tell “They have the most “They help me make “They’re really easy to helpful employees.” the right choice.” do business with.” Human-focused Advice-related Operational-oriented  Have employees that  Clearly explain their  Respond quickly to live up to values products and services inquiries portrayed in ads  Acknowledge  Alert me to  Have friendly and competitors’ offerings changes/issues helpful service reps  Tell me when it’s a bad  Rarely/never make  Listen to my problems idea to buy their mistakes and concerns products
  36. 36. The ignis fatuus of marketing Marketing is the story marketers tell customers Customer engagement is about interacting with ads Advocacy is getting customers to refer you
  37. 37. Marketing’s job High High Trust Basic Engagement No opinion Low Awareness Consideration Preference Purchase Re-purchase Customer Lifecycle
  38. 38. What are CMOs doing about this? What they said* What they meant 79% said they’re improving the “My mom thinks I’m doing a great job.” perceived value of marketing “Told you it wasn’t my fault things 45% expect to change agencies are screwed up.” New competencies are at the top of “I just don’t know what competencies the list of planned changes we need to build.” *Source: CMO Council, 2008 Marketing Outlook
  39. 39. The prevailing mentality “With loyalty to brands decreasing over time, companies need to figure out how to reach customers where they are.” A popular blogger
  40. 40. Affliction #3: Blogophilia According to Wikipedia, this is “the irrational belief that creating a blog or participating on social networks will, in and of itself, help a company reach customers and improve its customer relationships.”* *I made that up. But you have to admit, it sounded real — as do so many of the other half-truths floating around Wikipedia
  41. 41. Marketing must make changes Philosophy Persuasion-based Participation-based Focus Attitudes Behaviors Competency Push-and-pray Sense-and-respond
  42. 42. Sense-and-respond marketing Sensing consumers’ needs and intentions based on their behavior and responding with the appropriate advice, guidance, and offers
  43. 43. One guru who got it right “The secret to creating strong relationships is honesty and fair dealing.” “If you can fake those, you have it made.” — Groucho Marx
  44. 44. Aite: Partner, Counterpart Aite Group (pronounced eye-tay) is an independent research and advisory firm focused on business, technology and regulatory issues and their impact on the financial services industry. Ron Shevlin Senior Analyst rshevlin@aitegroup.com www.aitegroup.com 1.617.338.6045
  45. 45. Blog Question Forum Research Social Networks Micro-Blogging Resources
  46. 46. Our Last FREE Webinar: http://thepmn.org Register with promo code DVYN01 & receive a 20% discount! http://twtrcon.com/ What’s Up Next?
  47. 47. Start and continue the conversation. THANK YOU INFO@THEPMN.ORG mdellapenna@aitisolutions.com rthomas@aitisolutions.com
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