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GETTINGINSYNC.
@ www.33interactions.com.au
IDEAS TO ADDRESS THE NEW
“EMPOWERED, INFORMED, AND AT
LARGE CONSUMER.”
2
Jeeva Sathurayar | Joel Maloney
612 9993 0450 | info@33i.com.au
@ www.33interactions.com.au
THE ‘NEW CONSUMER’ BRAND ARCHITECTS.
We achieve this by designing “just for me” brand propositions
and weave those propositions into the lives of consumers in
fresh and creative ways, to develop lasting customer
relationships and advocacy.
WE SYNCHRONISE BRANDS WITH EMPOWERED CONSUMERS.
I
AGENDA.
AGENDA.
» Introduction
» About this Briefing
» Getting in Sync
» The Fine Print
± Ideas
1. The new core differentiator.
2. The path to sustainable growth.
3. Marketing that shows respect.
4. All Digital World.
5. Social Everything.
6. Deliver desirable experiences.
7. Advertising ReEvolution.
8. Brand as customer interactions.
9. Integrate or Die.
10. Marketers as Growth Champions.
II
The short answer — YES! Consumers are adopting new technolo-
gies such as social networking, podcasts, blogs, RSS, commenting,
rating, widgets, mobile, and apps faster than we can keep up.
Breakfast TV covers Twitter before most marketers have figured
out how or if they should use it.
Search engines have taken centre stage in purchase decision
making and online social usage has altered the consumer
marketing landscape. Brands offering people something, compete
with everything a few clicks away.
The “Internet is a nearly perfect market because information is
instantaneous and buyers can compare the offerings of sellers
worldwide. The result is fierce price competition, dwindling
product differentiation, and vanishing brand loyalty.” Robert
Kuttner, BusinessWeek, 11 May 1998
Customers can find what they want, critique brands that don’t
deliver, and connect with peers to spread criticism across the
globe instantly.
Traditional marketing is not working: 95% of consumer
product introductions fail to reach ROI targets; 84% of
B2B marketing campaigns result in falling sales; 85% of
sales promotions are unprofitable; and 72% of TV adver-
tising campaigns fail to achieve positive ROI. Today’s
consumer is technically adept, open for experimentation
and — most importantly — more active than ever before.
Traditional communications, based on classical condi-
tioning and clever ways to dispose of products, does not
address connected, savvy, and empowered consumers.
For brands to remain relevant, they must adapt to
both emerging technologies and shifting consumer
behaviour, and create genuine customer value — brands
need to get in sync with new consumers.
IFMARKETING METHODS HAVE NOT EVOLVED IN CONCERT
WITH TECHNOLOGICAL AND SOCIAL EVOLUTION, ARE WE
OUT OF SYNC WITH CUSTOMERS?
III
This briefing is a ‘synopsis’ of a body of work undertaken by over 30 individuals from 12 countries, spanning five conti‑
nents — taking over four years to complete since late 2004 – and not to mention the numerous sources we researched.
Brands were finding it harder to connect with consumers; conventional wisdom seemed irrelevant; and CRM systems and
1‑2‑1 promised much but delivered little. The Internet, globalisation and hyper-competition propelled us away from a
production‑led economy to an economy driven by consumption. Our task was to identify this distinctly different creature
known as the new consumer and to develop frameworks to help brands and agencies develop real responsiveness to this
new consumer.
We found that: a) brands were out of sync with new consumers; b) in a consumption-driven economy, successful marketing
must be underpinned by customer value; and c) successful marketing forms a dyanamic system that offers real respon‑
siveness to the new consumer. In other words, brands need to get in sync with new consumers by bringing together new
marketing ideas to change the way they connect with their consumers.
Brands need to rethink the way they create conversations and relationships with consumers and the way they engage
consumers across channels. They need to provide valuable services over one-way messaging, deal with an increasingly
complicated and expansive content distribution model, and address the empowerment of connected customers.
This briefing outlines trends in the consumer marketing landscape and core ideas that brands can address to remain
relevant today. For information on workshops and strategic planning please get in touch with Jeeva or Joel on 02 9993
0450.
This briefing document is provided in good faith to parties receiving the “Getting in Sync with New Consumers” briefing and
may not be distributed in any form, sold for profit, or incorporated in any documents without written permission from 33
Interactions Pty Ltd. Third party material referenced in this document is the domain of respective parties.
ABOUT THIS BRIEFING.
IV
Organisations need to adapt to shifting consumer behaviour and emerging technologies and address the empowerment of
connected customers immediately. We have developed a comprehensive programme to help organisations and their suppliers
“get in sync” with new consumers and create lasting transactive relationships that result in consumer advocacy
(recommendation and referral).
Briefing sessions on “trends in the consumer marketing landscape” and “ideas in 21st century marketing” are provided
at no cost to organisations and marketing agencies. Marketers can develop specific actions plans in full day workshops to
address an increasingly volatile marketing landscape. Tailored workshops help participants deal with specific consumer
marketing problems and address emerging trends and technologies. Our workshops take a step-by-step approach to plan and
implement marketing programmes including the use of specific marketing tools, best practice examples, and related theory.
Workshops cover: *1-2-1 communications; *interaction design; *social marketing; *marketing integration; *the new brand
positioning; *micro‑interactions; *crowd sourcing; *brand experience; and *technology-based marketing systems.
Our strategic planning helps clients and their agencies align marketing strategy with contemporary consumer behaviour
and emerging technologies, and covers: *alignment of marketing with the CEO’s agenda; *alignment of marketing strategy
with the new consumer; *integration across the marketing communications mix for response; *ROI and ongoing customer
dialogue; and *brand positioning in the 21st century. We use a zone based approach to focus participant effort on specific
outcomes. The Five Zones© (Insight, Breakthrough, Transformational, Impact, and Results) enable participants to develop
breakthrough strategies that achieve business objectives.
To arrange a briefing session, please contact: jeeva.sathurayar@33i.com.au, howard.moodycliffe@33i.com.au or
joel.maloney@33i.com.au.
GETTING IN SYNC.
1
New marketing needs to
incorporate new ideas.
But
The difficulty lies, not in the
new ideas, but IN ESCAPING
FROM THE OLD ONES.
John Maynard Keynes
2
IDEAS IN 21ST CENTURY MARKETING.
1. The new core differentiator.
2. The path to sustainable growth.
3. Marketing that shows respect.
4. All Digital World.
5. Social Everything.
6. Deliver desirable experiences.
7. Advertising ReEvolution.
8. Brand as customer interactions.
9. Intergrate or Die
10. Marketers as Growth Champions
3
“Consumers seek meaning and a brand they can trust. They are busy at work
on Web 2.0 platforms creating ways to cut through the noise in search of
products and services that resonate with integrity and transparency;
in a word, authenticity. That quest for authenticity is a call to action for any
company intending to be relevant in the 21st century.”
| Sohrab Vossoughi, Business Week
4
THE NEW CORE DIFFERENTIATOR.
1.
Customers face an overabundance of information,
marketing, and products. “Different” is no longer a core
differentiator.
CREATING AUTHENTIC RELATIONSHIPS WITH CUSTOMERS IS.
5
2.
THE PATH TO SUSTAINABLE GROWTH.
Customers are less brand loyal and actively resist
marketing, yet companies like Apple, Cisco and Barnes
& Noble consistently show industry leading growth.
These companies, with the highest number of
promoters versus detractors, consistently garner the
largest shares of industry growth.
The marketing imperative is to develop positive
customer relationships that lead to advocacy (referral
and recommendation) and in turn sustainable brand
growth.
This requires a shake-up of marketing communications
away from purely orchestrating messages to facilitating
conversations and experiences that allow companies
and brands to proceed up the ladder of customer
advocacy.
The path to sustainable, profitable
growth begins with creating more
promoters and fewer detractors.
The Number One you need to grow—
F. Reichheld, Harvard Business Review—
December 2003
2ND—Amazon’s market position in the
music download sector. (after Apple)
10%—Amazon’s market share relative to
Apple in the music download market.
6
As media and marketing messages
proliferate the only factor becoming scarce is
human attention.
Smarter, technologically empowered, time-starved
customers desire more control in their daily
lives and have cultivated much higher levels of
resistance to marketing practices and messages.
Channel surfing, ad skipping, and ad blocking are
symptomatic of customer dislike and
resistance to marketing messages.
Marketing must demonstrate more respect for the
consumers’ time and attention to engender
receptivity instead of resistance.
3. MARKETING THAT
SHOWS RESPECT.
7
3.1
MAKING A DIFFERENCE TO SOMEONE WHO
HAS INFINITE CHOICE.
7
attention.
5. Ensure that your brand tells the truth
when it makes a promise — breaking
promises in a word of mouth world is
suicidal — and when a promise is made
make sure it is kept.
6. Engage and involve me in your brand — “I
won’t join if I can’t be involved.”
7. Bring back the love and you might get
some in return.
RESPECT THE CONSUMER:
1. Understand what truly drives and moves
me — and those who influence me — at
every step of the overall experience you
offer.
2. Don’t treat me like a child — “one message
doesn’t fit all.”
3. Treat markets like “people” and let go of
mindless segmentation.
4. Demonstrate more respect for my time and
8
8
4. ALL DIGITAL WORLD.
DVD, iPods, web, e-mail, Blackberry, GPS,
Facebook, ATM, iPhone, Plasma, Playstation—
marketers are a rare breed that need to
separate digital from the everyday world.
As consumers we are living in a digital world
where, in essence, everything is digital - and
this is the digital age.
IT’S ALL FUSING!
When everything is digital and the Internet
has emerged as the powerful personal and
social phenomenon we expected it to be
CUSTOMER VALUE, NOT CONTROL, IS THE
ANSWER TO STRONG BRANDS.
Brands need to think about
transformational technologies that
create value for customers in their daily
lives — new ways that serve customers
and the brand.
9
5.
SOCIAL EVERYTHING.
Technology will continue to provide new ways
for people to join the conversation. It will
continue to enable communities to stay in
touch and engage in their chosen activities.
Brands need to stop thinking about creating
communities and instead focus on how they
can help these communities do what they want
to do.
BRANDS ONLY HAVE A ROLE IF THEY CAN MAKE THE
CONVERSATION MORE INTERESTING.
“Communities already exist. Instead,
think about how you can help that
community do what it wants to do.”
Mark Zuckerberg, founder and CEO of
Facebook
10
SIDEBAR A SOCIAL WEB BECOMES EVEN MORE SOCIAL.
The social initiatives of three of the very largest “dot.coms” focus on enabling people to take their MySpace, Facebook,
Google‑related profile and friend list to any other website. There are obvious benefits for consumers but some benefits are not so
obvious — being able to take your Facebook friends’ movie preferences to your local online video store has got to be useful — and
then there are all those preferences marketers would like to get their hands on. One thing is for certain, the web will only get
more social…and that includes the non-Internet web.
11
5.1
THE POWER OF US.
Companies such as LEGO, Lilly, and Skype use digital
tools to identify and rally their most enthusiastic
customers to help design and market more
effectively and at a lower cost.
If companies can open themselves up to contribu-
tions from enthusiastic customers and partners, it
should help them create products and services
faster, with fewer issues, and at far lower cost with
far less risk.
The goal is to take advantage of the collaborative art
of the Internet.
This is accomplished by using the pre‑existing tools
the web facilitates to strengthen conversations with
customers and by creating new tools that enable
customer brand participants to enrich the culture,
innovations, and marketing of the brand.
12
5.2 WORD OF MOUTH.
In a connected world, where
information is instantly available,
and where people trust a person like
themselves, ‘word of mouth’ is all
important.
Most influential medium on purchase decisions:
all age groups (2008, Big Research)
1. Word of mouth
2. TV
3. Coupons
4. Newspaper inserts
5. Read article
6. Direct mail
7. Magazines
8. In-store promotion
9. Cable TV
10.
Traditional media is still powerful and plays an
important role in starting the consumer
conversation.
Internet advertising
13
SIDEBAR
CONSENSUS ON WORD OF MOUTH.
IT REALLY IS THE MOST POWERFUL SALES TOOL.
»
» According to a global Nielsen survey of 26,486 Internet users in 47 markets, consumer
recommendations are the most credible form of advertising among 78% of the study’s
respondents. (Nielsen, “Word‑of–Mouth—the Most Powerful Selling Tool”)
»
» 86.9% of respondents said they would trust a friend’s recommendation over a review by a
critic, while 83.8% said they would trust user reviews over a critic. (Marketing Sherpa, July
2007)
»
» Review users noted that reviews generated by fellow consumers had a greater influence
than those generated by professionals. (comScore/The Kelsey Group, October 2007)
»
» 71% of online shoppers read reviews, making it the most widely read consumer-generated
content. (Forrester Research).
14
SIDEBAR AND IF YOU STILL NEED CONVINCING.
The most recommended company in its category
grows 2.5 X the category average.
Bain & Company Research
15
SIDEBAR
THERE IS A DOWNSIDE.
Consumers’ revolt: Power to the
people Consumer militancy erupts as
individuals join forces on the
internet to fight back against the
state and big business
The Independant, Friday, 23 February 2007
16
5.3 CONNECTING THROUGH STORIES.
We’re strong believers that our
stories are the beginnings of a
conversation, not the last word.
http://www.usatoday.com/news/
community-features.htm
As information and intelligence
become the domain of computers,
society will place more value on the
one human ability that cannot be
automated: emotion. This will affect
everything from our purchasing
decisions to how we work with
others. Companies will need to
understand that their products are
less important than their stories.
Rolf Jensen, Copenhagen Institute for
future Studies
Stories are the core of our
consciousness and provide
frameworks for interpretation,
understanding and meaning,
motivation, and visions of the
possible. As stories unfold, they
come alive by being shared, which
creates a deeply human connection
between people satisfying their need
for authenticity.
Creative storytelling and the
stories of ‘ordinary’ people are
missing in digital marketing.
Successful brands will enable their
customers to propagate brand
and consumer stories that take
advantage of interactivity and
community.
17
6. DELIVER DESIRABLE EXPERIENCES.
Never before has intelligence on the best, the
cheapest, the first, the most original, and the most
relevant been so openly available to consumers —
nor have we have been faced with a situation where
technology and globalisation have achieved such
close product parity.
With product parity the purchase experience
plays a significant role and that is something
every brand needs to address. The “experience is
marketing” maxim lends itself as an opportunity
to solve problems, find solutions, and even address
emotional pain-points ultimately leading to higher
impact marketing and sales propositions.
Companies intending to be relevant today must
learn the art of creating experiences that genuinely
engage their customers.
The customer does not separate the
marketing experience from the product
experience.
18
7.
ADVERTISING REEVOLUTION.
“Advertisements must take into account not only the inherent
qualities and attributes of the products they are trying to sell
but also the way in which they can make these properties
mean something to us ... advertisements set up connections
between certain types of consumers and certain products; and
having made these links and created symbols of exchange it
can use them as a given, and so can we.”
Judith Williamson, In Decoding Advertisements: Ideology and Meaning in Advertising
19
7. ADVERTISING REEVOLUTION.
ROI, escalating media costs, message negativity, and media
proliferation have placed advertising in the spotlight for all the
wrong reasons. Despite all the talk, advertising is still the only
qualitative way to reach mass audiences. Traditional media like
TV is also much more likely to make a positive impression with
consumers than ads running in digital media.
The Revolution may not be televised but the death of advertising
is much anticipated and quite mistaken — advertising will be here
for years…but different.
20
SERVICES OVER MESSAGES. 7.1
Aware that consumers largely ignore advertising, advertisers decided to advertise everywhere — bus shelters,
gyms, foyers… everywhere.
The resultant levels of clutter and intrusion conditioned us— we are great at tuning out marketing messages.
Nick Law, Chief Creative Officer, R/GA agency for Nike+, stated in a BusinessWeek article: “You have to ask,
why would anyone care about this [ad]? In the traditional advertising world, that was never a question
asked with much rigor.”
Messages that, in and of themselves, provide a service, and genuinely engage with the consumer form part of
the answer to “why anyone would care about this ad.”
Consider Motorola who are helping people stay-in-touch, not by promoting increased mobile calls but
enabling friends and family to send photos to loved ones overseas; or Nike+, a site that helps runners track
and improve their performance; or Bayer’s Dog Diaries, a site for dog owners to share experiences and obtain
advice in a community setting.
We are seeing a shift away from messages to services that actually help people. Savvy marketers are already
taking advantage of “widgets” – small desktop applications, as well as iPhone “Apps,” to deliver both a
relevant and useful services that engage the consumer — and effectively start the consumer dialogue.
21
SIDEBAR WHY MARKETERS LIKE ‘USEFUL’ADS.
1. Consumers actively seek out services even if they are veiled ads. And they
spend more time with a brand than they would watching a 30‑second spot.
2. When consumers sign up for a service, marketers can gather everything from
demographic information to product interests to names and addresses — data
they can use for a harder sell down the road.
3. When the ads work consumers feel more loyalty to the brand because they
feel like it did them a good turn.
Attention–Deficit Advertising, BusinessWeek, April 2008
22
7.2
STORIES & MEANING.
Advertising sells us something far
beyond goods and services. It
provides us with a structure in which
people and products are
interchangeable.
These structures of meaning sell us
products that emulate social beings
who interact with us in our social
relationships.
ADVERTISING SELLS US OURSELVES!
Increasingly, advertising will focus on structures that
transform objects into meaning. The meaning of the
product is made synonymous with another quality, the
value of which is attached to the product.
In a million channel world, brands whose consumers
tell the best stories win. To facilitate customer
conversations, advertising will invite customers to be a
part of these stories based upon structures of meaning.
23
7.3 ONE SIZE DOES NOT FIT ALL.
Customers want to be engaged by marketers in a more satisfying
and less intrusive manner — the ‘one size fits all’ approach does
not facilitate positive interaction between customers and
marketers.
The net generation also expects that they can customise and
personalise everything in their world and daily experiences… and
mobile plays a huge role in their lives.
MY MOBILE IS ME=MY WORLD IN MY HANDS.
This is a clear message for marketers on the need for
personalisation — advertising will increasingly focus on
personalisation. This will herald the rise of the data-driven
advertising agency. It is also a clear message that the time to get
serious about mobile is now.
BRANDS NEED TO EMBRACE MOBILE OR GET LEFT BEHIND.
“I make movies for the masses but I speak to them one by one”—Steven Spielberg
24
7.4
CONTENT VERSUS ADVERTISING.
The prediction is that content will replace advertising in the
communications mix. The argument is that, for brands seeking
to engage consumers and for publishers seeking to acquire
broader audiences, content will become advertising. We agree
wholeheartedly on the importance of content, especially in
light of user generated content — we just don’t think
advertising as content is a new idea.
From custom publishing and live reads to branded
programming, advertorials, and product placement advertising
has always been about content. Today, reaching consumers in
a fragmented, personalised environment is becoming more and
more complex. Thus, distribution must evolve into a science.
The fact is, advertising needs new tools and services to
manage digital consumer connections with almost no explicit
controls — and new tools and services that enable brands to
pay more than mere lip‑service to the empowered customer.
The confessions of a generic magazine: “We loaded this
issue with more advertising than content. The content
we did publish was edited, censored and manipulated
to please our advertisers or as lame filler between the
product pushing ads. We got paid quite handsomely
to produce this issue and are glad you will pay to read
what we already got paid to print. Are You Generic?”
http://www.areyougeneric.org/confessions/
“More focus will be placed on using digital creative to
engage users rather than just advertise to them”
AdAge, April 2008, 41st IAA World Congress, What’s coming next?
25
25
8. BRANDS AS CUSTOMER INTERACTIONS.
As we move from channel-focused mass media to tailored, personal media, brands are
entering a place where they have never consciously entered… a place where brands, are in a
very real sense, being owned by consumers.
A place where brands are not enforced through mass media but in reality, are the totality of
the impressions created by the interactions between brand and consumer — or more correctly,
the impressions created in the mind of the consumer while reflecting on different experiences.
IT’S THE TOTALITY OF THE IMPRESSIONS THAT MATTER — NOT ONE CHANNEL, ONCE.
26
8.1
GREAT EXPECTATIONS.
“A key role of marketing is to establish customer
expectations that will improve their actual
experience with the product or service.”
www.neurosciencemarketing.com/blog/articles/a-new-role-for-
marketing.htm
So a brand is also a personal reflection on our
experiences influenced by our anticipation of the
experience.
The message: Set high but realistic expectations for
the product and when customers do experience the
product — surprise them.
Give them something unexpected and something so
positive it creates a unique and lasting impression.
There are two key elements that comprise a killer
first impression — anticipation and surprise.
27
8.2 BRAND ARENAS.
And as it’s about experiences, we are moving from channels
where brands are law enforcers to arenas where brands are
participants.
WE NEED TO START BEING PARTICIPANTS ON EVERY ARENA.
28
8.3
BRAND PARTICIPANTS OWN THE BRAND.
Mock Ad on Flickr—created by a fan: http://www.flickr.com/
photos/olka/448436299/
They mash it, talk about it, change
it, rate it, group it, review it,
Flickr it, Twitter it, poke it, mod it,
bookmark it… just who do you think
defines and owns the brand?
In less than 60 seconds, we obtained
the following search results for
Nikon. Most of this content was not
created by Nikon or its partners:
>17,900 Nikon videos on YouTube; 73,475
groups about nikon on Flickr; 532,945
ew blog results over the past week for
“nikon”(Blog Search); 3,650,000 results
over the past week (Google Search);
8,440,824 results on Flickr; >940,000,000
images (Google Images).
This has serious implications for the
way we think about brands.
It begs the question:
if consumer groups are defining your
brand, are you in danger of losing
control?
In Brand Hijack: Marketing without
marketing, Alex Wipperfurth advises
brands to embrace the brand
enthusiast, and enable co-creative
brand evolution, as there are no real
alternatives.
Two things are certain:
1. Brands need to understand the
brand conversation; and
2. Decide if their role is within the
conversation or as a facilitator of
the conversation.
29
8.4
THE BRAND MOLECULE.
Dividing your brand communication
into a range of smaller ideas—distrib-
uted and shared with participants—is
essential to a balanced communications
mix that achieves brand growth.
John Grant, “The Brand Innovation Manifesto
Having one monolithic brand communications idea
permeate the communications mix was fine when
the communications mix was limited, however today
four situations have changed the game:
1. Proliferation of media and increased choice
2. Higher customer experience expectations
3. Customer participation
4. Media meshing and personalisation
Today, the core brand communications idea is
essentially unbalancing communications and it is
much smarter to have a clutter of efforts working
towards a common goal.
Dividing your brand communication into a range of
smaller ideas — distributed and shared with
participants — is essential to a balanced
communications mix that achieves brand growth.
30
9.
INTEGRATE OR DIE.
Companies that scored in the top
20% based on revenue growth,
lead‑to‑sales conversion rates, and
ROI had much higher technology
adoption of marketing tools and
integrating marketing campaign data
into their CRM systems to a much
greater degree than “average” or
“laggard” companies.
Aberdeen Group
With many companies focused on
marketing integration, businesses
that aren’t as determined could find
themselves at a significant
competitive disadvantage.
Marketing integration is commonly
considered “an integrated creative
approach” or a technology‑driven
campaign approach.
Though important, marketing
integration in the digital age
incorporates core ideas concerning
connected, empowered consumers,
and marketing to these consumers.
31
9. INTEGRATE OR DIE.
Marketing integration in the digital age goes beyond
consistency of message to something approaching
consistency of process. It’s about giving marketing
decision-makers an end-to-end view of the entire
marketing process and providing insight into which
campaigns and tactics actually drive the highest return
on investment.
But it is more than that too! It’s about:
1. Integrating respect for the customer into the process
of marketing with the customer as co-creator and
brand participant;
2. Going beyond digital (transdigital) and off-line
marketing to integrate communities and experience
in the marketing mix;
3. Orchestrating infinite touch-points and brand
arenas; and
4. Turning marketing metrics into business metrics
that guide budget and resource‑allocation
decisions. (After all Rome was not built in a day).
32
9.1
ACCOUNTABILITY AS RESPONSIBILITY
AND FINANCIAL ACUMEN.
With the customer in control, and the power of word of mouth in
force, accountability will move away from using ‘rules of thumb’
towards integrity and transparency.
In other words, the tyranny of accountability morphs into
responsibility; marketers become responsible for every
customer “moment of truth” and all the impressions created by
the interactions between brand and the consumer.
Financial acumen will also play an increasing role in the job
description of marketers and their suppliers. Rather than
focusing on awareness scores and open rates, together they must
establish structural measures to assess the financial impact of
marketing initiatives in terms the business can appreciate - in
short:
SHOW ME THE MONEY!
33
9.2 NO MORE PACMAN ANALYTICS.
Analytics tools measure performance, but they don’t provide
actionable advice. To close the gap between analysis and
performance, analytics must combine rigorous techniques
with marketing strategy.
An ongoing analytics process can deliver superior decision–
making and competitive advantage — the answers you seek
can be found in data, but it does depend on the quality of
the questions:
Where should I spend my next marketing dollar? Have I
established the best possible set of metrics to optimise my
campaigns? Am I correctly attributing sales to media, and
efficiently allocating my media? How can I deliver the highest
impact, brand–focused messaging, and how can I gauge the
success of my efforts? How can I get a holistic view of my
complex multi–channel and multi–country marketing
campaigns?
The point: Don’t take measurement tools and standard metrics
at face value — each business, brand, product requires a
unique, continuously­­improved process that turns data into
actions that drive business goals.
“I also think we should be angered by the
accountability mind­
set that means we’re
making more decisions on what can be
measured rather than what’s really
important.”
Jon Steel, planningbeingsat40.com
34
10.1
MARKETERS AS GROWTH CHAMPIONS.
*10.1
Three economic forces in play
increase downward pressure
on prices.
Globalisation is delivering
more lower priced imports.
Hyper-competition means
more suppliers competing for
the same customer leading to
price cuts, while the Internet
is allowing more people to
compare prices and move to
the lowest cost offer.
*10.2
The marketing challenge is to
find ways to maintain prices
and profitability in the face of
these downward trends.
No company / brand is going
to hold on to its customers if
it can’t continue to lead in
offering the most value.
*10.3
Marketing is taking a greater
role in shaping business
strategy as CEO’s recognise that
marketing is central to creating
genuine customer value…
while also recognising that
marketing priorities need to be
significantly aligned to meet
the CEO Agenda.
*10.4
But many CEO’s are demanding
only one measure for great
marketing: profitable sales
growth.
This, in turn, requires that
marketers design and shape
corporate strategy in a more
customer-centric manner.
In other words, marketers
need to be strategic leaders.
*10.5
However, senior marketers
“are not considered —
either by themselves or by
others in their companies—to
be strategists or decision-
makers with a central role in
the firm’s broader agenda.”
(Growth Champions,
Stategy+Business, Summer
2006)
*10.6
The last word — distinct,
growth-correlated marketing
teams that place increased
demands on suppliers are
here today.
Marketers that make up these
teams will combine critical
awareness of consumers with
strategic leadership associated
with corporate strategists.
THESE MARKETERS WILL BE
GROWTH CHAMPIONS.
35
This briefing document and “the body of work” referred to as ‘Getting in Sync with New Consumers©’ is an ongoing labour of love
for all involved, and forms the basis for how 33 Interactions and its partners help businesses get their marketing act together.
While we are willing to provide briefing sessions and relevant versions of this document to any that ask, our [pesky and
protective, yet sensible] legal people have taken steps to protect our intellectual property.
Copyright of this document, variants of this document, and the ‘body of work’ referred to as ‘Getting in Sync with New
Consumers©’ is wholly owned by Jeeva Sathurayar, Joel Maloney and 33 Interactions Pty Ltd. All material contained in this
document (including any supplementary data) is the property of Jeeva Sathurayar, Joel Maloney and 33 Interactions Pty Ltd, and
its affiliates, and is protected by copyright; all rights regarding this material are reserved by Jeeva Sathurayar, Joel Maloney and
33 Interactions Pty Ltd, and includes but is not limited to Transdigital communications planning®, the 33 Customer Advocacy
Ladder©, and The Five Zones Strategic Planning Framework©.
This briefing document is provided in good faith to parties receiving the “Getting in Sync with New Consumers” briefing and may
not be distributed in any form, sold for profit, or incorporated in any documents without written permission from 33 Interactions
Pty Ltd. Third party material referenced in this document is the domain of respective parties.
THE FINE PRINT.
36
CLOSING CREDITS.
2 / OTH
5 / Chazoid
6 / Foxypar4
9 / David.NikonvsCanon
11 / Web Guru
16 / Shaughnessy
17 / AutoExposureCanada
29 / Jerome Dupipe
31 / Brad J Ward
32 / Martha Madness
33 Interactions would like to thank the following Flickr members who have offered their work for use in this presentation
under the Creative Commons Attribution Licence. All images in this presentation are copyright to their original authors.

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Getting In Sync - 10 Ideas for the Consumer Marketing Landscape

  • 1. GETTINGINSYNC. @ www.33interactions.com.au IDEAS TO ADDRESS THE NEW “EMPOWERED, INFORMED, AND AT LARGE CONSUMER.”
  • 2. 2 Jeeva Sathurayar | Joel Maloney 612 9993 0450 | info@33i.com.au @ www.33interactions.com.au THE ‘NEW CONSUMER’ BRAND ARCHITECTS. We achieve this by designing “just for me” brand propositions and weave those propositions into the lives of consumers in fresh and creative ways, to develop lasting customer relationships and advocacy. WE SYNCHRONISE BRANDS WITH EMPOWERED CONSUMERS.
  • 3. I AGENDA. AGENDA. » Introduction » About this Briefing » Getting in Sync » The Fine Print ± Ideas 1. The new core differentiator. 2. The path to sustainable growth. 3. Marketing that shows respect. 4. All Digital World. 5. Social Everything. 6. Deliver desirable experiences. 7. Advertising ReEvolution. 8. Brand as customer interactions. 9. Integrate or Die. 10. Marketers as Growth Champions.
  • 4. II The short answer — YES! Consumers are adopting new technolo- gies such as social networking, podcasts, blogs, RSS, commenting, rating, widgets, mobile, and apps faster than we can keep up. Breakfast TV covers Twitter before most marketers have figured out how or if they should use it. Search engines have taken centre stage in purchase decision making and online social usage has altered the consumer marketing landscape. Brands offering people something, compete with everything a few clicks away. The “Internet is a nearly perfect market because information is instantaneous and buyers can compare the offerings of sellers worldwide. The result is fierce price competition, dwindling product differentiation, and vanishing brand loyalty.” Robert Kuttner, BusinessWeek, 11 May 1998 Customers can find what they want, critique brands that don’t deliver, and connect with peers to spread criticism across the globe instantly. Traditional marketing is not working: 95% of consumer product introductions fail to reach ROI targets; 84% of B2B marketing campaigns result in falling sales; 85% of sales promotions are unprofitable; and 72% of TV adver- tising campaigns fail to achieve positive ROI. Today’s consumer is technically adept, open for experimentation and — most importantly — more active than ever before. Traditional communications, based on classical condi- tioning and clever ways to dispose of products, does not address connected, savvy, and empowered consumers. For brands to remain relevant, they must adapt to both emerging technologies and shifting consumer behaviour, and create genuine customer value — brands need to get in sync with new consumers. IFMARKETING METHODS HAVE NOT EVOLVED IN CONCERT WITH TECHNOLOGICAL AND SOCIAL EVOLUTION, ARE WE OUT OF SYNC WITH CUSTOMERS?
  • 5. III This briefing is a ‘synopsis’ of a body of work undertaken by over 30 individuals from 12 countries, spanning five conti‑ nents — taking over four years to complete since late 2004 – and not to mention the numerous sources we researched. Brands were finding it harder to connect with consumers; conventional wisdom seemed irrelevant; and CRM systems and 1‑2‑1 promised much but delivered little. The Internet, globalisation and hyper-competition propelled us away from a production‑led economy to an economy driven by consumption. Our task was to identify this distinctly different creature known as the new consumer and to develop frameworks to help brands and agencies develop real responsiveness to this new consumer. We found that: a) brands were out of sync with new consumers; b) in a consumption-driven economy, successful marketing must be underpinned by customer value; and c) successful marketing forms a dyanamic system that offers real respon‑ siveness to the new consumer. In other words, brands need to get in sync with new consumers by bringing together new marketing ideas to change the way they connect with their consumers. Brands need to rethink the way they create conversations and relationships with consumers and the way they engage consumers across channels. They need to provide valuable services over one-way messaging, deal with an increasingly complicated and expansive content distribution model, and address the empowerment of connected customers. This briefing outlines trends in the consumer marketing landscape and core ideas that brands can address to remain relevant today. For information on workshops and strategic planning please get in touch with Jeeva or Joel on 02 9993 0450. This briefing document is provided in good faith to parties receiving the “Getting in Sync with New Consumers” briefing and may not be distributed in any form, sold for profit, or incorporated in any documents without written permission from 33 Interactions Pty Ltd. Third party material referenced in this document is the domain of respective parties. ABOUT THIS BRIEFING.
  • 6. IV Organisations need to adapt to shifting consumer behaviour and emerging technologies and address the empowerment of connected customers immediately. We have developed a comprehensive programme to help organisations and their suppliers “get in sync” with new consumers and create lasting transactive relationships that result in consumer advocacy (recommendation and referral). Briefing sessions on “trends in the consumer marketing landscape” and “ideas in 21st century marketing” are provided at no cost to organisations and marketing agencies. Marketers can develop specific actions plans in full day workshops to address an increasingly volatile marketing landscape. Tailored workshops help participants deal with specific consumer marketing problems and address emerging trends and technologies. Our workshops take a step-by-step approach to plan and implement marketing programmes including the use of specific marketing tools, best practice examples, and related theory. Workshops cover: *1-2-1 communications; *interaction design; *social marketing; *marketing integration; *the new brand positioning; *micro‑interactions; *crowd sourcing; *brand experience; and *technology-based marketing systems. Our strategic planning helps clients and their agencies align marketing strategy with contemporary consumer behaviour and emerging technologies, and covers: *alignment of marketing with the CEO’s agenda; *alignment of marketing strategy with the new consumer; *integration across the marketing communications mix for response; *ROI and ongoing customer dialogue; and *brand positioning in the 21st century. We use a zone based approach to focus participant effort on specific outcomes. The Five Zones© (Insight, Breakthrough, Transformational, Impact, and Results) enable participants to develop breakthrough strategies that achieve business objectives. To arrange a briefing session, please contact: jeeva.sathurayar@33i.com.au, howard.moodycliffe@33i.com.au or joel.maloney@33i.com.au. GETTING IN SYNC.
  • 7. 1 New marketing needs to incorporate new ideas. But The difficulty lies, not in the new ideas, but IN ESCAPING FROM THE OLD ONES. John Maynard Keynes
  • 8. 2 IDEAS IN 21ST CENTURY MARKETING. 1. The new core differentiator. 2. The path to sustainable growth. 3. Marketing that shows respect. 4. All Digital World. 5. Social Everything. 6. Deliver desirable experiences. 7. Advertising ReEvolution. 8. Brand as customer interactions. 9. Intergrate or Die 10. Marketers as Growth Champions
  • 9. 3 “Consumers seek meaning and a brand they can trust. They are busy at work on Web 2.0 platforms creating ways to cut through the noise in search of products and services that resonate with integrity and transparency; in a word, authenticity. That quest for authenticity is a call to action for any company intending to be relevant in the 21st century.” | Sohrab Vossoughi, Business Week
  • 10. 4 THE NEW CORE DIFFERENTIATOR. 1. Customers face an overabundance of information, marketing, and products. “Different” is no longer a core differentiator. CREATING AUTHENTIC RELATIONSHIPS WITH CUSTOMERS IS.
  • 11. 5 2. THE PATH TO SUSTAINABLE GROWTH. Customers are less brand loyal and actively resist marketing, yet companies like Apple, Cisco and Barnes & Noble consistently show industry leading growth. These companies, with the highest number of promoters versus detractors, consistently garner the largest shares of industry growth. The marketing imperative is to develop positive customer relationships that lead to advocacy (referral and recommendation) and in turn sustainable brand growth. This requires a shake-up of marketing communications away from purely orchestrating messages to facilitating conversations and experiences that allow companies and brands to proceed up the ladder of customer advocacy. The path to sustainable, profitable growth begins with creating more promoters and fewer detractors. The Number One you need to grow— F. Reichheld, Harvard Business Review— December 2003 2ND—Amazon’s market position in the music download sector. (after Apple) 10%—Amazon’s market share relative to Apple in the music download market.
  • 12. 6 As media and marketing messages proliferate the only factor becoming scarce is human attention. Smarter, technologically empowered, time-starved customers desire more control in their daily lives and have cultivated much higher levels of resistance to marketing practices and messages. Channel surfing, ad skipping, and ad blocking are symptomatic of customer dislike and resistance to marketing messages. Marketing must demonstrate more respect for the consumers’ time and attention to engender receptivity instead of resistance. 3. MARKETING THAT SHOWS RESPECT.
  • 13. 7 3.1 MAKING A DIFFERENCE TO SOMEONE WHO HAS INFINITE CHOICE. 7 attention. 5. Ensure that your brand tells the truth when it makes a promise — breaking promises in a word of mouth world is suicidal — and when a promise is made make sure it is kept. 6. Engage and involve me in your brand — “I won’t join if I can’t be involved.” 7. Bring back the love and you might get some in return. RESPECT THE CONSUMER: 1. Understand what truly drives and moves me — and those who influence me — at every step of the overall experience you offer. 2. Don’t treat me like a child — “one message doesn’t fit all.” 3. Treat markets like “people” and let go of mindless segmentation. 4. Demonstrate more respect for my time and
  • 14. 8 8 4. ALL DIGITAL WORLD. DVD, iPods, web, e-mail, Blackberry, GPS, Facebook, ATM, iPhone, Plasma, Playstation— marketers are a rare breed that need to separate digital from the everyday world. As consumers we are living in a digital world where, in essence, everything is digital - and this is the digital age. IT’S ALL FUSING! When everything is digital and the Internet has emerged as the powerful personal and social phenomenon we expected it to be CUSTOMER VALUE, NOT CONTROL, IS THE ANSWER TO STRONG BRANDS. Brands need to think about transformational technologies that create value for customers in their daily lives — new ways that serve customers and the brand.
  • 15. 9 5. SOCIAL EVERYTHING. Technology will continue to provide new ways for people to join the conversation. It will continue to enable communities to stay in touch and engage in their chosen activities. Brands need to stop thinking about creating communities and instead focus on how they can help these communities do what they want to do. BRANDS ONLY HAVE A ROLE IF THEY CAN MAKE THE CONVERSATION MORE INTERESTING. “Communities already exist. Instead, think about how you can help that community do what it wants to do.” Mark Zuckerberg, founder and CEO of Facebook
  • 16. 10 SIDEBAR A SOCIAL WEB BECOMES EVEN MORE SOCIAL. The social initiatives of three of the very largest “dot.coms” focus on enabling people to take their MySpace, Facebook, Google‑related profile and friend list to any other website. There are obvious benefits for consumers but some benefits are not so obvious — being able to take your Facebook friends’ movie preferences to your local online video store has got to be useful — and then there are all those preferences marketers would like to get their hands on. One thing is for certain, the web will only get more social…and that includes the non-Internet web.
  • 17. 11 5.1 THE POWER OF US. Companies such as LEGO, Lilly, and Skype use digital tools to identify and rally their most enthusiastic customers to help design and market more effectively and at a lower cost. If companies can open themselves up to contribu- tions from enthusiastic customers and partners, it should help them create products and services faster, with fewer issues, and at far lower cost with far less risk. The goal is to take advantage of the collaborative art of the Internet. This is accomplished by using the pre‑existing tools the web facilitates to strengthen conversations with customers and by creating new tools that enable customer brand participants to enrich the culture, innovations, and marketing of the brand.
  • 18. 12 5.2 WORD OF MOUTH. In a connected world, where information is instantly available, and where people trust a person like themselves, ‘word of mouth’ is all important. Most influential medium on purchase decisions: all age groups (2008, Big Research) 1. Word of mouth 2. TV 3. Coupons 4. Newspaper inserts 5. Read article 6. Direct mail 7. Magazines 8. In-store promotion 9. Cable TV 10. Traditional media is still powerful and plays an important role in starting the consumer conversation. Internet advertising
  • 19. 13 SIDEBAR CONSENSUS ON WORD OF MOUTH. IT REALLY IS THE MOST POWERFUL SALES TOOL. » » According to a global Nielsen survey of 26,486 Internet users in 47 markets, consumer recommendations are the most credible form of advertising among 78% of the study’s respondents. (Nielsen, “Word‑of–Mouth—the Most Powerful Selling Tool”) » » 86.9% of respondents said they would trust a friend’s recommendation over a review by a critic, while 83.8% said they would trust user reviews over a critic. (Marketing Sherpa, July 2007) » » Review users noted that reviews generated by fellow consumers had a greater influence than those generated by professionals. (comScore/The Kelsey Group, October 2007) » » 71% of online shoppers read reviews, making it the most widely read consumer-generated content. (Forrester Research).
  • 20. 14 SIDEBAR AND IF YOU STILL NEED CONVINCING. The most recommended company in its category grows 2.5 X the category average. Bain & Company Research
  • 21. 15 SIDEBAR THERE IS A DOWNSIDE. Consumers’ revolt: Power to the people Consumer militancy erupts as individuals join forces on the internet to fight back against the state and big business The Independant, Friday, 23 February 2007
  • 22. 16 5.3 CONNECTING THROUGH STORIES. We’re strong believers that our stories are the beginnings of a conversation, not the last word. http://www.usatoday.com/news/ community-features.htm As information and intelligence become the domain of computers, society will place more value on the one human ability that cannot be automated: emotion. This will affect everything from our purchasing decisions to how we work with others. Companies will need to understand that their products are less important than their stories. Rolf Jensen, Copenhagen Institute for future Studies Stories are the core of our consciousness and provide frameworks for interpretation, understanding and meaning, motivation, and visions of the possible. As stories unfold, they come alive by being shared, which creates a deeply human connection between people satisfying their need for authenticity. Creative storytelling and the stories of ‘ordinary’ people are missing in digital marketing. Successful brands will enable their customers to propagate brand and consumer stories that take advantage of interactivity and community.
  • 23. 17 6. DELIVER DESIRABLE EXPERIENCES. Never before has intelligence on the best, the cheapest, the first, the most original, and the most relevant been so openly available to consumers — nor have we have been faced with a situation where technology and globalisation have achieved such close product parity. With product parity the purchase experience plays a significant role and that is something every brand needs to address. The “experience is marketing” maxim lends itself as an opportunity to solve problems, find solutions, and even address emotional pain-points ultimately leading to higher impact marketing and sales propositions. Companies intending to be relevant today must learn the art of creating experiences that genuinely engage their customers. The customer does not separate the marketing experience from the product experience.
  • 24. 18 7. ADVERTISING REEVOLUTION. “Advertisements must take into account not only the inherent qualities and attributes of the products they are trying to sell but also the way in which they can make these properties mean something to us ... advertisements set up connections between certain types of consumers and certain products; and having made these links and created symbols of exchange it can use them as a given, and so can we.” Judith Williamson, In Decoding Advertisements: Ideology and Meaning in Advertising
  • 25. 19 7. ADVERTISING REEVOLUTION. ROI, escalating media costs, message negativity, and media proliferation have placed advertising in the spotlight for all the wrong reasons. Despite all the talk, advertising is still the only qualitative way to reach mass audiences. Traditional media like TV is also much more likely to make a positive impression with consumers than ads running in digital media. The Revolution may not be televised but the death of advertising is much anticipated and quite mistaken — advertising will be here for years…but different.
  • 26. 20 SERVICES OVER MESSAGES. 7.1 Aware that consumers largely ignore advertising, advertisers decided to advertise everywhere — bus shelters, gyms, foyers… everywhere. The resultant levels of clutter and intrusion conditioned us— we are great at tuning out marketing messages. Nick Law, Chief Creative Officer, R/GA agency for Nike+, stated in a BusinessWeek article: “You have to ask, why would anyone care about this [ad]? In the traditional advertising world, that was never a question asked with much rigor.” Messages that, in and of themselves, provide a service, and genuinely engage with the consumer form part of the answer to “why anyone would care about this ad.” Consider Motorola who are helping people stay-in-touch, not by promoting increased mobile calls but enabling friends and family to send photos to loved ones overseas; or Nike+, a site that helps runners track and improve their performance; or Bayer’s Dog Diaries, a site for dog owners to share experiences and obtain advice in a community setting. We are seeing a shift away from messages to services that actually help people. Savvy marketers are already taking advantage of “widgets” – small desktop applications, as well as iPhone “Apps,” to deliver both a relevant and useful services that engage the consumer — and effectively start the consumer dialogue.
  • 27. 21 SIDEBAR WHY MARKETERS LIKE ‘USEFUL’ADS. 1. Consumers actively seek out services even if they are veiled ads. And they spend more time with a brand than they would watching a 30‑second spot. 2. When consumers sign up for a service, marketers can gather everything from demographic information to product interests to names and addresses — data they can use for a harder sell down the road. 3. When the ads work consumers feel more loyalty to the brand because they feel like it did them a good turn. Attention–Deficit Advertising, BusinessWeek, April 2008
  • 28. 22 7.2 STORIES & MEANING. Advertising sells us something far beyond goods and services. It provides us with a structure in which people and products are interchangeable. These structures of meaning sell us products that emulate social beings who interact with us in our social relationships. ADVERTISING SELLS US OURSELVES! Increasingly, advertising will focus on structures that transform objects into meaning. The meaning of the product is made synonymous with another quality, the value of which is attached to the product. In a million channel world, brands whose consumers tell the best stories win. To facilitate customer conversations, advertising will invite customers to be a part of these stories based upon structures of meaning.
  • 29. 23 7.3 ONE SIZE DOES NOT FIT ALL. Customers want to be engaged by marketers in a more satisfying and less intrusive manner — the ‘one size fits all’ approach does not facilitate positive interaction between customers and marketers. The net generation also expects that they can customise and personalise everything in their world and daily experiences… and mobile plays a huge role in their lives. MY MOBILE IS ME=MY WORLD IN MY HANDS. This is a clear message for marketers on the need for personalisation — advertising will increasingly focus on personalisation. This will herald the rise of the data-driven advertising agency. It is also a clear message that the time to get serious about mobile is now. BRANDS NEED TO EMBRACE MOBILE OR GET LEFT BEHIND. “I make movies for the masses but I speak to them one by one”—Steven Spielberg
  • 30. 24 7.4 CONTENT VERSUS ADVERTISING. The prediction is that content will replace advertising in the communications mix. The argument is that, for brands seeking to engage consumers and for publishers seeking to acquire broader audiences, content will become advertising. We agree wholeheartedly on the importance of content, especially in light of user generated content — we just don’t think advertising as content is a new idea. From custom publishing and live reads to branded programming, advertorials, and product placement advertising has always been about content. Today, reaching consumers in a fragmented, personalised environment is becoming more and more complex. Thus, distribution must evolve into a science. The fact is, advertising needs new tools and services to manage digital consumer connections with almost no explicit controls — and new tools and services that enable brands to pay more than mere lip‑service to the empowered customer. The confessions of a generic magazine: “We loaded this issue with more advertising than content. The content we did publish was edited, censored and manipulated to please our advertisers or as lame filler between the product pushing ads. We got paid quite handsomely to produce this issue and are glad you will pay to read what we already got paid to print. Are You Generic?” http://www.areyougeneric.org/confessions/ “More focus will be placed on using digital creative to engage users rather than just advertise to them” AdAge, April 2008, 41st IAA World Congress, What’s coming next?
  • 31. 25 25 8. BRANDS AS CUSTOMER INTERACTIONS. As we move from channel-focused mass media to tailored, personal media, brands are entering a place where they have never consciously entered… a place where brands, are in a very real sense, being owned by consumers. A place where brands are not enforced through mass media but in reality, are the totality of the impressions created by the interactions between brand and consumer — or more correctly, the impressions created in the mind of the consumer while reflecting on different experiences. IT’S THE TOTALITY OF THE IMPRESSIONS THAT MATTER — NOT ONE CHANNEL, ONCE.
  • 32. 26 8.1 GREAT EXPECTATIONS. “A key role of marketing is to establish customer expectations that will improve their actual experience with the product or service.” www.neurosciencemarketing.com/blog/articles/a-new-role-for- marketing.htm So a brand is also a personal reflection on our experiences influenced by our anticipation of the experience. The message: Set high but realistic expectations for the product and when customers do experience the product — surprise them. Give them something unexpected and something so positive it creates a unique and lasting impression. There are two key elements that comprise a killer first impression — anticipation and surprise.
  • 33. 27 8.2 BRAND ARENAS. And as it’s about experiences, we are moving from channels where brands are law enforcers to arenas where brands are participants. WE NEED TO START BEING PARTICIPANTS ON EVERY ARENA.
  • 34. 28 8.3 BRAND PARTICIPANTS OWN THE BRAND. Mock Ad on Flickr—created by a fan: http://www.flickr.com/ photos/olka/448436299/ They mash it, talk about it, change it, rate it, group it, review it, Flickr it, Twitter it, poke it, mod it, bookmark it… just who do you think defines and owns the brand? In less than 60 seconds, we obtained the following search results for Nikon. Most of this content was not created by Nikon or its partners: >17,900 Nikon videos on YouTube; 73,475 groups about nikon on Flickr; 532,945 ew blog results over the past week for “nikon”(Blog Search); 3,650,000 results over the past week (Google Search); 8,440,824 results on Flickr; >940,000,000 images (Google Images). This has serious implications for the way we think about brands. It begs the question: if consumer groups are defining your brand, are you in danger of losing control? In Brand Hijack: Marketing without marketing, Alex Wipperfurth advises brands to embrace the brand enthusiast, and enable co-creative brand evolution, as there are no real alternatives. Two things are certain: 1. Brands need to understand the brand conversation; and 2. Decide if their role is within the conversation or as a facilitator of the conversation.
  • 35. 29 8.4 THE BRAND MOLECULE. Dividing your brand communication into a range of smaller ideas—distrib- uted and shared with participants—is essential to a balanced communications mix that achieves brand growth. John Grant, “The Brand Innovation Manifesto Having one monolithic brand communications idea permeate the communications mix was fine when the communications mix was limited, however today four situations have changed the game: 1. Proliferation of media and increased choice 2. Higher customer experience expectations 3. Customer participation 4. Media meshing and personalisation Today, the core brand communications idea is essentially unbalancing communications and it is much smarter to have a clutter of efforts working towards a common goal. Dividing your brand communication into a range of smaller ideas — distributed and shared with participants — is essential to a balanced communications mix that achieves brand growth.
  • 36. 30 9. INTEGRATE OR DIE. Companies that scored in the top 20% based on revenue growth, lead‑to‑sales conversion rates, and ROI had much higher technology adoption of marketing tools and integrating marketing campaign data into their CRM systems to a much greater degree than “average” or “laggard” companies. Aberdeen Group With many companies focused on marketing integration, businesses that aren’t as determined could find themselves at a significant competitive disadvantage. Marketing integration is commonly considered “an integrated creative approach” or a technology‑driven campaign approach. Though important, marketing integration in the digital age incorporates core ideas concerning connected, empowered consumers, and marketing to these consumers.
  • 37. 31 9. INTEGRATE OR DIE. Marketing integration in the digital age goes beyond consistency of message to something approaching consistency of process. It’s about giving marketing decision-makers an end-to-end view of the entire marketing process and providing insight into which campaigns and tactics actually drive the highest return on investment. But it is more than that too! It’s about: 1. Integrating respect for the customer into the process of marketing with the customer as co-creator and brand participant; 2. Going beyond digital (transdigital) and off-line marketing to integrate communities and experience in the marketing mix; 3. Orchestrating infinite touch-points and brand arenas; and 4. Turning marketing metrics into business metrics that guide budget and resource‑allocation decisions. (After all Rome was not built in a day).
  • 38. 32 9.1 ACCOUNTABILITY AS RESPONSIBILITY AND FINANCIAL ACUMEN. With the customer in control, and the power of word of mouth in force, accountability will move away from using ‘rules of thumb’ towards integrity and transparency. In other words, the tyranny of accountability morphs into responsibility; marketers become responsible for every customer “moment of truth” and all the impressions created by the interactions between brand and the consumer. Financial acumen will also play an increasing role in the job description of marketers and their suppliers. Rather than focusing on awareness scores and open rates, together they must establish structural measures to assess the financial impact of marketing initiatives in terms the business can appreciate - in short: SHOW ME THE MONEY!
  • 39. 33 9.2 NO MORE PACMAN ANALYTICS. Analytics tools measure performance, but they don’t provide actionable advice. To close the gap between analysis and performance, analytics must combine rigorous techniques with marketing strategy. An ongoing analytics process can deliver superior decision– making and competitive advantage — the answers you seek can be found in data, but it does depend on the quality of the questions: Where should I spend my next marketing dollar? Have I established the best possible set of metrics to optimise my campaigns? Am I correctly attributing sales to media, and efficiently allocating my media? How can I deliver the highest impact, brand–focused messaging, and how can I gauge the success of my efforts? How can I get a holistic view of my complex multi–channel and multi–country marketing campaigns? The point: Don’t take measurement tools and standard metrics at face value — each business, brand, product requires a unique, continuously­­improved process that turns data into actions that drive business goals. “I also think we should be angered by the accountability mind­ set that means we’re making more decisions on what can be measured rather than what’s really important.” Jon Steel, planningbeingsat40.com
  • 40. 34 10.1 MARKETERS AS GROWTH CHAMPIONS. *10.1 Three economic forces in play increase downward pressure on prices. Globalisation is delivering more lower priced imports. Hyper-competition means more suppliers competing for the same customer leading to price cuts, while the Internet is allowing more people to compare prices and move to the lowest cost offer. *10.2 The marketing challenge is to find ways to maintain prices and profitability in the face of these downward trends. No company / brand is going to hold on to its customers if it can’t continue to lead in offering the most value. *10.3 Marketing is taking a greater role in shaping business strategy as CEO’s recognise that marketing is central to creating genuine customer value… while also recognising that marketing priorities need to be significantly aligned to meet the CEO Agenda. *10.4 But many CEO’s are demanding only one measure for great marketing: profitable sales growth. This, in turn, requires that marketers design and shape corporate strategy in a more customer-centric manner. In other words, marketers need to be strategic leaders. *10.5 However, senior marketers “are not considered — either by themselves or by others in their companies—to be strategists or decision- makers with a central role in the firm’s broader agenda.” (Growth Champions, Stategy+Business, Summer 2006) *10.6 The last word — distinct, growth-correlated marketing teams that place increased demands on suppliers are here today. Marketers that make up these teams will combine critical awareness of consumers with strategic leadership associated with corporate strategists. THESE MARKETERS WILL BE GROWTH CHAMPIONS.
  • 41. 35 This briefing document and “the body of work” referred to as ‘Getting in Sync with New Consumers©’ is an ongoing labour of love for all involved, and forms the basis for how 33 Interactions and its partners help businesses get their marketing act together. While we are willing to provide briefing sessions and relevant versions of this document to any that ask, our [pesky and protective, yet sensible] legal people have taken steps to protect our intellectual property. Copyright of this document, variants of this document, and the ‘body of work’ referred to as ‘Getting in Sync with New Consumers©’ is wholly owned by Jeeva Sathurayar, Joel Maloney and 33 Interactions Pty Ltd. All material contained in this document (including any supplementary data) is the property of Jeeva Sathurayar, Joel Maloney and 33 Interactions Pty Ltd, and its affiliates, and is protected by copyright; all rights regarding this material are reserved by Jeeva Sathurayar, Joel Maloney and 33 Interactions Pty Ltd, and includes but is not limited to Transdigital communications planning®, the 33 Customer Advocacy Ladder©, and The Five Zones Strategic Planning Framework©. This briefing document is provided in good faith to parties receiving the “Getting in Sync with New Consumers” briefing and may not be distributed in any form, sold for profit, or incorporated in any documents without written permission from 33 Interactions Pty Ltd. Third party material referenced in this document is the domain of respective parties. THE FINE PRINT.
  • 42. 36 CLOSING CREDITS. 2 / OTH 5 / Chazoid 6 / Foxypar4 9 / David.NikonvsCanon 11 / Web Guru 16 / Shaughnessy 17 / AutoExposureCanada 29 / Jerome Dupipe 31 / Brad J Ward 32 / Martha Madness 33 Interactions would like to thank the following Flickr members who have offered their work for use in this presentation under the Creative Commons Attribution Licence. All images in this presentation are copyright to their original authors.