Branding 2.0 & Social Media Sampad Kr Swain Email : sampad.s@gmail.com http://managementchords.blogspot.com

Myths Trends Paradigms Agenda http://managementchords.blogspot.com

Myths

Trends

Paradigms

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 10 Marketing Myths http://managementchords.blogspot.com

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

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 Crisis in Mass Marketing http://managementchords.blogspot.com

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

“ 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 Status of Marketing Management http://managementchords.blogspot.com

Green Karma Capitalism Authenticity not transparency Democratized advertising WOMM Controversy Market space Social media Trusted social media advertising Online paid search ads http://managementchords.blogspot.com 10 Trends you will hate to miss

Green

Karma Capitalism

Authenticity not transparency

Democratized advertising

WOMM

Controversy

Market space

Social media

Trusted social media advertising

Online paid search ads

Traditional advertising Monologue Market place Classical 4P’s paradigm http://managementchords.blogspot.com Out of the Basket

Traditional advertising

Monologue

Market place

Classical 4P’s paradigm

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

State of the Web World http://managementchords.blogspot.com

Global Online Population Currently about 1.2 billion Projected to grow to 1.8 billion by 2010 http://managementchords.blogspot.com

Currently about 1.2 billion

Projected to grow to 1.8 billion by 2010

http://managementchords.blogspot.com

http://managementchords.blogspot.com

WEB 1.0 v/s WEB 2.0 http://managementchords.blogspot.com

http://managementchords.blogspot.com THE NEW WORLD ORDER OF WEB 2.0

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

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 http://managementchords.blogspot.com

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 Stealth marketing Source: Justin Kirby, & Paul Marsden (2006). Connected marketing . Oxford, UK: Butterworth-Heinemann. 198 YouTube Buzz Oven Bree http://managementchords.blogspot.com

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

Stealth marketing

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 http://managementchords.blogspot.com

10% INFLUENCE PURCHASING BEHAVIOR OF OTHER 90%

91% LIKELY TO BUY ON RECOMMENDATION

EMERGENCE OF THE ERA OF “PROSUMERS” – Producer & Consumer of Information

Widget Marketing Cool plug-n-play things for your sidebar http://managementchords.blogspot.com

Mashup Example of Google Maps mashup on MySpace account. http://managementchords.blogspot.com

Old 4P’s Paradigm 4Ps Value Creator Customer http://managementchords.blogspot.com

New Paradigm 4Ps Value Innovator Customer Product Brand http://managementchords.blogspot.com

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 It’s about my opinion It’s about the experience Examples Apple, Starbucks, JetBlue, MySpace, Harley-Davidson, Tivo. Product Innovation Marketing Innovation http://managementchords.blogspot.com

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

It’s about my opinion

It’s about the experience

Examples

Apple, Starbucks, JetBlue, MySpace, Harley-Davidson, Tivo.

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 http://managementchords.blogspot.com

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

So what should we do about it..?? http://managementchords.blogspot.com STOP CALLING ME A CONSUMER. I AM A PERSON

The power has shifted…!!! Anytime - Any Place - Any Way http://managementchords.blogspot.com

http://managementchords.blogspot.com

We are in Attention Economy… http://managementchords.blogspot.com

WHAT SHOULD BE DONE? http://managementchords.blogspot.com

WHAT SHOULD

BE DONE?

Rule 1. Brand as story-tellers… http://managementchords.blogspot.com In a million channel world, brands whose consumers tell the best stories, win

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

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

Rule 4. Use different medium to touch your customers http://managementchords.blogspot.com

Business as an Ecosystem http://managementchords.blogspot.com GROW WITH YOUR CUSTOMERS

Sampad Swain Email: sampad.s@gmail.com http://managementchords.blogspot.com