Branding 2.0 & Social Media

Slide 2: • Myths • Trends • Paradigms

Slide 3: • 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 • Innovation comes from inside • Never give the product / service away • Target the broadest customer segment

Slide 4: • 18%: Proportion of TV advertising campaigns generating positive ROI • 54 cents: Average return in sales for every $1 spent on advertising • 56%: Proportion of people who avoid buying products from companies who they think advertise too much • 256%: The increase in TV advertising costs 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 • 90%: Proportion of people who can skip TV ads who do skip TV ads • 14%: Proportion of people who trust advertising information • 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 • 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

Slide 5: “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

Slide 6: • Green Karma Capitalism • • Authenticity not transparency • Democratized advertising WOMM • • Controversy • Market space Social media • • Trusted social media advertising • Online paid search ads

Slide 7: • Traditional advertising • Monologue • Market place • Classical 4P’s paradigm

Slide 8: The “Traditional Marketing” model is being challenged, and (CMOs) can foresee a day when it will no longer work. McKinsey Quarterly, 2005, Number 2

Slide 9: State of the Web World

Slide 10: Global Online Population • Currently about 1.2 billion • Projected to grow to 1.8 billion by 2010

Slide 13: WEB 1.0 v/s WEB 2.0

Slide 15: 70+ Million Weblogs Source:http://www.sifry.com/alerts/archives/000493.html

Slide 16: 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

Slide 17: Word of Mouth Marketing WOMM: Umbrella term – Buzz marketing – Viral marketing – Influencer marketing – Evangelist marketing • Turning most loyal customers into citizen marketers – Street marketing • Interacting at popular offline places like Buzz Oven Buzz Oven – Stealth marketing Source: Bree Justin Kirby, & Paul Marsden (2006). Connected marketing. Oxford, UK: Butterworth-Heinemann. 198 YouTube

Slide 18: Some of the reasons for relying on WOMM • 10% INFLUENCE PURCHASING BEHAVIOR OF OTHER 90% • 91% LIKELY TO BUY ON RECOMMENDATION • EMERGENCE OF THE ERA OF “PROSUMERS” – Producer & Consumer of Information

Slide 19: Widget Marketing Cool plug-n-play things for your sidebar

Slide 20: Mashup Example of Google Maps mashup on MySpace account.

Slide 21: Old 4P’s Paradigm Value Creator Customer 4Ps

Slide 22: New Paradigm Value Innovator Customer Product Brand 4Ps

Slide 23: It’s About a New Dimension • 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 machine – 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 about your choices, places, and time – It’s about my space It’s about my video – Product Innovation – It’s about my opinion – It’s about the experience Marketing • Examples Innovation – Apple, Starbucks, JetBlue, MySpace, Harley-Davidson, Tivo.

Slide 24: Implications • Reached the tipping point • The static web maturing • Monologue marketing out • Live Web (a/k/a Blogosphere) is making information transparent as well as authentic • 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

Slide 25: So what should we do about it..?? STOP CALLING ME A CONSUMER. I AM A PERSON

Slide 26: The power has shifted…!!! Anytime - Any Place - Any Way

Slide 28: We are in Attention Economy…

Slide 29: HAT SHOULD BE DONE?

Slide 30: Rule 1. Brand as story-tellers… In a million channel world, brands whose consumers tell the best stories, win

Slide 31: Rule 2. Let them “Talk” about you… If you want them to talk about you, make them.. HATE LOVE YOU YET NEVER LEAVE THEM INDIFFERENT Brands people talk about make “Meaning Beyond Money”

Slide 32: e no 3. Create Empathy, Understanding & Openness. 1 2 Investigating Talking + Walking With People (3rd party research, reports, etc.) (ethnography, observation, etc.) 3 4 Learning By Doing Sharing What We Know (experimentation, usage, adoption) (connectivity, shared experiences + knowledge)

Slide 33: Rule 4. Use different medium to touch your customers

Slide 34: Business as an Ecosystem GROW WITH YOUR CUSTOMERS

Slide 35: Sampad Kr Swain