IS MARKETING IS BECOMING MORE LIKE POLITICS? MARKETING POLITICS
PEOPLE PRODUCT IN THE OLD DAYS (PRE WEB 2.0) Marketing was about push Product Story $$$ Rational Emotional
TODAY People are more connected
Over 100 million people a month use MySpace.
Over 70% of Americans ages 15 to 34 actively use social networks.
81% of Inc. 500 plan to increase WOM spending - Inc. Mag:
Web 2.0 technologies to grow 43% CAGR to $4.6bn by 2013
Source: http://www.onlinereporter.com/article.php?article_id=9388 / Forrester SOCIAL NETWORKS ARE EXPLODING
PEOPLE PRODUCT SOCIAL NETWORKS Passion is the new currency Product Rational Emotional Passion Lasso I
It’s the economy stupid
It’s the Sex stupid
Politics and Marketing Passion drives Advocacy
Online Promoter Score seems to lead sales by a month(1).
Comparing the change in online promoter score to the change in sales(2) shows that online promoter score correctly predicted sales 7 out of 7 times.
1. The R^2 is 54% and the p value of the coefficient is 3.7%, so we can be 96% certain that the positive relationship is not spurious.
2.The bars are calculated by looking at the average magnitude of the monthly changes. The shortest bars are changes in the middle 50% of changes, the tallest bars represent the middle 80% of changes and the tallest bars (not visible in this date range are the top or bottom 10% of changes.
ADVOCACY MATTERS We have found a strong correlation between brand advocacy and sales
POLITICS & MARKETING Three thoughts
CONVICTIONS: Let people know what you stand for
CONSTITUENTS: Personalize the convictions to them
CO-OPERATION: Create a feedback loop
1. CONVICTIONS By better understanding Mini’s convictions they drove advocacy Online promoter Index Covert Campaign - Mailing Mini Takes the states - Events Motorby- Ads
2. CONSTITUENTS Success starts with the grass roots Source: Coffee Subset, 1/1/2007-12/31/2007 Ranked by descending Constituent population in Coffee Conversation
3. CO-OPERATION Amazon has enabled their followers Source: Retail Data,10/1/2006 – 12/31/2007 Advocate Share: Q4 ‘06 VS Q4 ‘07 Share of Advocates
3. CO-OPERATION They introduced reviews as a new element of service Source: Retail Data,10/1/2006 – 12/31/2007
POLITICS + MARKETING Can lead to advocacy CONVICTIONS: Let people know what you stand for CONSTITUENTS: Personalize the convictions to them CO-OPERATION: Create a feedback loop ADVOCACY
“ Like religion, politics, and family planning, cereal is not a topic to be brought up in public. It's too controversial. ”
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