The New Business Reality: Reflections on modern business trends in the emerging marketplace
1. The New Business Reality
Reflections on modern business trends
in the emerging marketplace
Dudley Blossom, Ph.D.
WHERE BUSINESS MEETS FASHION
2. Landing a Job of the Future
Takes a Two‐Track Mind
Wall Street Journal, December 28, 2009
Wall Street Journal, December 28, 2009
Career Experts Say Positions in
Growing Fields Will Require an In-
Demand D
D d Degree CCoupled With Skill
l d Skills
in Emerging Trends
WHERE BUSINESS MEETS FASHION
4. In the Retail and
Marketing space this
means: New Media
Social Networks, Mobile Commerce,
eTailing, Click to Mortar, customer and
user generated messages, customer
t d t
power shifts, changing business models,
commoditization and
A new Business Paradigm
WHERE BUSINESS MEETS FASHION
5. What is New Media
• What better place to look for a new media definition
than a new media source? Wikipedia
than a new media source? Wikipedia
– New media is a broad term that emerged to encompass the
amalgamation of traditional media such as film, images,
music, spoken and written word, with the interactive power
music spoken and written word with the interactive power
of computer and communications technology, computer‐
enabled consumer devices and most importantly the
Internet.
– What distinguishes New media from traditional media is not
the digitizing of media content into bits, but the dynamic life
of the "new media" content and its interactive relationship
with the media consumer.
with the media consumer
– New Media is the "democratization" of the creation,
publishing, distribution and consumption of media content.
6. The power of new media
p
• Almost 80% of new media users interact with
brands via new media tools (up from ~60% in
b d d l ( f
2008)
• Consumers look on line to verify
Consumers look on line to verify
recommendations
– More than four‐out‐of‐five consumers (81%) will go
online to verify recommendations
li if d i
– specifically through researching product/service
information (61%)
– reading user reviews (55%)
– searching ratings websites (43%)
9. New Media Marketing
g
• being able to communicate with a vast
g
network of people through many mediums.
• I, along with many others, believe it is a true
g y
paradigm shift in the world of advertising
and marketing.
• The days of corporations telling us what we
want is over. The days of consumers
dictating what they want and searching it
d h h d h
out to get it, is here, and here to stay.
10. When asked about impressions of
brands …
• Feel a stronger connection (72%)
g ( )
• Feel better served (68%)
• Have a more positive image (74%)
Have a more positive image (74%)
• Are more willing to engage (70%)
• Have an improved opinion of the company or
H i d i i f th
brand when one of their friends interacts (64%)
• Ch
Choose to “follow”/”friend”/”fan” because it
“f ll ”/”f i d”/”f ” b i
helps showcase their personality online (52%)
11.
12.
13. Consumer’s preferred new media
functions
• Offering incentives – free products or
g p
services, coupons, discounts, etc. (58%)
• Soliciting product/service feedback (49%)
Soliciting product/service feedback (49%)
• Developing new ways to interact – widgets,
mobile applications, games, contests, etc.
mobile applications games contests etc
(49%)
• Entertaining – providing access to premium
d
content (43%)
14.
15.
16.
17. What do we know?
• eCommerce growth is outpacing the general
market
k
• New media marketing spending is growing
rapidly
• Consumers are turning to new media platforms
for choice information
• Consumers are relying on new media platforms
for brand engagement
• N
New media platforms are becoming a primary
di l f b i i
(and trusted) resource for purchase and
attitudinal information
18. What does it mean?
• In order for companies to competitively engage with their
customers they need a new media presence
customers they need a new media presence
• Power is shifting to the customer
– Pricing information is freely available
– Product information is freely available
Product information is freely available
– Once exclusive products are commoditizing
• New media is not a tool but a channel
• Most brands are becoming “lifestyle” brands
Most brands are becoming lifestyle brands
• Traditional marketers, used to controlling the message, are
having to let go
– Hence the rise of “closed web” applications
pp
• A New Paradigm of the relationship between brands and their
customers is forming
19. What defines this new Business
Paradigm?
• A fundamental shift in power in the
p
marketplace away from individual entities
g p p
with great power to the empowerment of
the small player
• Individuals can have a loud voice and can
Individuals can have a loud voice and can
form into large bodies
• Rise of the super empowered individual
Rise of the super empowered individual
– A‐la Thomas Friedman’s Lexus & the Olive Tree
20. Dudley Blossom, Ph.D.
Chair, Marketing & Management
Department
Dudley.blossom@limcollege.edu
WHERE BUSINESS MEETS FASHION
