But consumers became smarter and distrustful of marketing MARKETING 3.0
As a result marketing has had to evolve MARKETING 3.0
But some marketers are stuck in the past MARKETING 3.0
They’re still using old metrics with new media • Impressions • Reach MARKETING 3.0 • Frequency • Ad recall • CPM • Mass market segmentation
Hint: Impressions are meaningless • It’s engagement you should be measuring because engagement is not given, it’s earned by what you do and how you respond to yourMARKETING 3.0 customers needs and feedback. • Is your marketing the kind of marketing that people want to interact with ? • Is your marketing the type of marketing that people want to share with others ?
And consumers are laughing at them MARKETING 3.0
But in order to stay relevant marketing is changing again Marketing 1.0 Marketing 2.0 Marketing 3.0 Product-centric Consumer-centric Value-centric MARKETING 3.0 Objective Sell products to the Satisfy customers Meet emotional and masses brand loyalty rational needs of consumers Enabling Forces Industrial Revolution Information technology Connectedness of consumers How marketers see the Mass market Smarter consumers People instead of market mass market segments Key Marketing Product driven market Differentiation Value of product to Concept consumers emotions Value Propositions Functional Functional emotional Functional, emotional rational Interaction with Mass communication Micro segmentation Consumers collaborate consumers with each other Power of branding Marketers/companies Marketers/consumers Consumers
Marketing 3.0 In a nutshell Mind Heart Spirit INDIVIDUAL COMPANY MARKETING 3.0 Mission (Why) Deliver Realize Compassion Satisfaction Aspiration Vision (What) Proﬁt Return Sustain Ability Ability Ability Values (How) Be Difference Make a Better Difference
What led to marketing 3.0 ? • The age of participation and collaborative marketing via theMARKETING 3.0 Internet. – People create new ideas and talk to each other via social media. – People trust each more than marketers. – Recession has shaken the core values of most consumers (shift from wantsneeds).
More collaboration tools means more trust between consumers MARKETING 3.0
At a time when customers are demanding more MARKETING 3.0
Therefore organizations need more brand credibility Trust Authenticity Transparency Conﬁdence As promised No Secrets MARKETING 3.0 Consistency Real Sincere Easy to ﬁnd Integrity Real People Easy to understand Authority Informal No Hiding Afﬁrmation Listening Responsiveness Playback Empathy Follow-up Reinforcement “Welcome” Making changes Search Placement Humility Acknowledgement Community Feedback Thank you Six drivers of brand credibility
Because company outputs don’t always match customer expectations MARKETING 3.0
Marketers need to understand that social communities have cycles MARKETING 3.0
You only have one chance to make a ﬁrst impression, make it count MARKETING 3.0
And with all this going on collaborative media is evolving The web is at a really important turning point right now” MARKETING 3.0 Were building toward a web where the default is social. Mark Zuckerberg CEO Facebook
The percentage of weekly social media users is at 73% of the online population.MARKETING 3.0
So…. MARKETING 3.0 Adapt to MarkeMng 3.0 or perish
Kotler’s Ten Credo’s of Marketing 3.0 MARKETING 3.0
1: Love your customers, respect your competitors • Win their loyalty by giving them great value and connecting with them emotionally. MARKETING 3.0 Example: • Cambell’s Soup changed the color of its packaging during Breast Cancer Awareness Month and improved demand signiﬁcantly
2: Be sensitive to change and be ready to transform • Business landscape is changing and competitors are getting smarter along with your customers. MARKETING 3.0 Example: • Wal-Mart’s transformation from low- low prices to green giant.
3: Guard your name Be clear about who you are • Brand reputation is everything thus ensure that you communicate your positioning and differentiation to your target market. MARKETING 3.0 Example • Body Shop practice of community trade and purchasing natural ingredients from local and poor communities around the world.
4: Customers are diverse Go ﬁrst to those who can beneﬁt from you • Simple principle of segmentation but you can’t and should not try and be all things to everyone. MARKETING 3.0 Example: • Apple iPad is not a mass market product and Apple has never strived to be a mass market product. They focus on a unique segment of early adapters and technology lovers which leads to higher margins per unit sale.
5: Always offer a good package at a fair price • Price and product must match customers expectations not yours. MARKETING 3.0 Example: • Target has positioned itself as the retailer that offers great products at a fair prices and by doing so is attracting more of a upper middle class audience who is willing to spend more money.
6: Always make yourself available Spread the good news • Don’t make it hard for customers to ﬁnd you. MARKETING 3.0 Example: • Amazon.com uses search to direct consumer directly to product pages when they search for speciﬁc products. • Whole foods has a store locator on their home page.
7: Get customers, keep them grow them • Get to know your customers one on one so you have a complete picture of their needs, preferences and behavior. MARKETING 3.0 Example: • Amazon.com builds recommendations based on past customer purchases and delivers personal recommendations via customized home page and email.
8: Whatever your business, It’s a service business now • You must have the spirit of wanting to serve your customers. MARKETING 3.0 Example • Whole Foods sees its business as a service to customers and society. It tries to transform the lifestyle of customers into healthy ones.
9: Always reﬁne your business processes • It’s a never ending process, exceed your promises to customers suppliers. MARKETING 3.0 Example • S.C. Johnson is well-known for doing business with local suppliers. It works with local farmers to improve productivity and delivery.
10: Gather relevant information, but use wisdom in making decisions • Keep learning and use your accumulated knowledge experience to make decisions. • Consider more than the ﬁnancial impact of a decision. MARKETING 3.0 Example: • Eli Lilly, a pharma company is allocating more money to RD to develop new drugs even though it has resulted in a lower ROI for Wall Street and investors.
Also don’t forget Rich’s additions to these Credos MARKETING 3.0
11: You’re only as good as your employees • The best branding and marketing in the world cannot make up for an employee who doesn’t care about your customers. MARKETING 3.0 Example: • Zappos goes out of their way to train and retain talented people. They will even pay people $2000 to quit because people that are more interested in money that job satisfaction are not employees they value.
12: You can’t rely on outdate marketing in an era of new media • Impressions, reach, frequency, ad recall mean little today. • Stop trying to quantify everything with a spreadsheet analysis because your competitors are doing the same thing. MARKETING 3.0 • Stop thinking CPM, ARP, and mass marketing. Start thinking like a consumer.
13: Don’t cut costs when it comes to customer service • “If my call is so important to you then why am I on hold with a recorded voice telling me “my call is important to you”. MARKETING 3.0
14: Learn to listen before joining the conversation • Would you walk up to two people at a party and start talking without ﬁnding out what they are talking about ? MARKETING 3.0
In summary… • The recession has changed consumer behavior forever. • Consumers have more power than via the evolution of collaborative tools on the Internet. MARKETING 3.0 • Stop using outdated marketing and realign processes around your customers not your company. • Reward employees who deliver a great customer experience. • Think as a consumer..not as a marketer.
About me Richard Meyer • My resume http://www.richardameyer.com • My marketing BLOG http://www.richsblog.com MARKETING 3.0 • MY DTC BLOG http://www.worldofdtcmarketing.com h/p://www.twi/er.com/richmeyer h/p://www.facebook.com/richardameyer h/p://www.linkedin.com/in/richardameyer