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5 Global Trends That Will Impact Your Marketing Strategies in 2012

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Take a look at 5 economic and cultural trends that will impact your marketing strategies in 2012 and beyond. Beth Tessier, Executive Director of Consumer Insights, and Ellen Desmarais, Executive Director of Digital Strategy bring together the latest research on:
- Urbanization and how its impacts on city growth and geographic expansion affect the way you go to market
- New world of mobilization and the marketing implications you must consider in order to thrive in an m-commerce world
- Proliferation of customer choices and how your customers make decisions in order to help your buyers to make the right ones
- The how, why, and what of online sharing and the marketing strategies you need to consider
- The right balance of global vs. local and how you can successfully operate in a borderless world

Published in: Business, Technology
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5 Global Trends That Will Impact Your Marketing Strategies in 2012

  1. 1. 5 trends to watch
  2. 2. urbanization
  3. 3. Both an economic and cultural trendURBAN BOOM: Increasing number of urbandwellers around the worldURBAN MIGHT: More and bigger cities thanever, with increasing wealth and powerURBAN CULTURE: Magnets for innovation,wealth, talent, and creativity Source: McKinsey Global Institute, Trendwatching.com
  4. 4. The top 600 cities will grow bigger and richer In 2007 In 20251.5 billion 2.0 billionpeople live in these 600 cities – people live in these 600 cities in 2025 -22% of the global population 25% of the global population; 1.6 times as fast as the world as a whole$30 trillion $64 trillionof GDP in 2007 – more than half of of GDP in 2025 – nearly 60% of globalglobal GDP GDP485 million 735 millionhouseholds, with average per capita households, with average per capitaGDP of $20,000 GDP of $32,000 Source: McKinsey Global Institute, “Urban World: Mapping the Power of Cities” 2011
  5. 5. …but the cities won’t be the same1 of every 3developed market cities will no longer makethe top 600… 136 new cities are expected to enter the top 600. All from the developing world, including 8 from Latin America 13 from India 100 from China Source: McKinsey Global Institute, “Urban World: Mapping the Power of Cities” 2011
  6. 6. Urban economic clout moves east Source: McKinsey Global Institute, “Urban World: Mapping the Power of Cities” 2011
  7. 7. Rise of the mid-size city• Engine of GDP growth shifts from developed economies and megacities to middleweight cities in emerging markets Source: McKinsey Global Institute, “Urban World: Mapping the Power of Cities” 2011
  8. 8. Expanding middle class Source: McKinsey Global Institute, “Urban World: Mapping the Power of Cities” 2011
  9. 9. Impacts of city growth Creating a different profile of consumer • Faster pace, ever- Creating vibrant changing nature of life new enterprise • Spend money markets for differently Urban centers businesses to • Exposed to a wideact as magnets, serve variety of lifestyles and increasing experiencesconcentration of • Require appropriate Construction, infrpopulation, jobs, shapes, sizes and astructure, trans industry, and features of urban portation, financi goods and services innovation al markets will all be growth Consumer trends often industries start in urban centers before moving mainstream Source: McKinsey Global Institute, Trendwatching.com
  10. 10. Considerations for geographic expansion• Look beyond the household names• Understand cities as the locus of country growth• Look beyond GDP growth to identify hot markets• Be prepared to play in new urban centers• Understand customer needs – and follow their movement
  11. 11. mobility mobility Photo credit: Unaesthetic, Flickr
  12. 12. Mobile has hit critical mass 90% of the world now lives in a place with access to a mobile network China has over 900M mobile phone users In India, mobile accounts for nearly 90% of all Internet users In the developing world, two in three people have a mobile phone subscription 48M people have cell phones -- but no electricitySource: International Telecommunications Union; China Ministry of Industry and Information Technology; OnDevice Research; Cisco
  13. 13. Mobile quickly becoming mainstream • Mobile will be the most By 2013 common way the world accesses the Internet • Smartphones will be the By 2015 primary enablers of consumer shopping Source: Cisco Visual Forecasting Index, 2011; Nielsen, 2011
  14. 14. Expectations are building• Ability to enhance our real-time Convenience experience with digital interaction Real Time• Convenience: technology helps you get things done easier• Mobile makes life more enjoyable. Enjoyable Expect to be delighted, surprised, rewarded “And above all, we need an experience that is efficient and intuitive. If we get that, then well come back for more.” High Quality Mobile Experience Source: Gregg Wheeler, Solstice Consulting
  15. 15. M-commerce• $24B global mobile spending this year; more than $1 Trillion by 2015.  Amazon mobile sales in 2011 $2B;  eBay in 2011 nearly $4B• 74% of smartphone shoppers have made a purchase following mobile research (US)• 26% of Americans will use a mobile coupon this year• Mobile shopping apps let you check availability, look for deals, reviews and compare prices Source: Nielsen; Amazon; eBay; Google & IPSOS OTX; eMarketer
  16. 16. Mobile Payments141M people made an m-payment in 2011 Total spend: $86B • Mobile payments will accountSquare (Visa) doing over for 15% of all credit card $4 Billion/year transactions by 2013, and will overtake cards in 10 years Walmart & Target are developing a mobile wallet service Source: Gartner; Yankee Group; World Payments Report 2011
  17. 17. Enhancing the local experience 40% of mobile searches are local After looking up a local biz, most call or visit 50% of all Google map usage is from a mobile device Less need for paper: Movie tickets, train tickets, couponsLocation Based Services and Augmented Reality:Local promotions, things to do, background info Source: Google
  18. 18. Challenges & Opportunities Mobile disrupts the traditional path-to- purchase Entering an era dominated by mobile marketing Mountains of data – who owns it?  Mobile obviates the need for paper, plastic, bricks & mortar  When consumers can quickly search for best price, retailers need to differentiate through factors other than price  Mobile will be the starting point – not an afterthought
  19. 19. proliferation of choice
  20. 20. The average U.S. supermarket now stocks… 19 varieties of milk 87 varieties of soft drinks 340 breakfast cereals141 over-the-counter pain relievers More than 50 varieties of bottled water
  21. 21. Increased choice results largely whenconsumers are mobile enough to chooseamong suppliers and options • Digital only opened the floodgates • Permeating every area of professional and personal lives
  22. 22. For Marketers For ConsumersOffers a sense of control Choice Improve market share Perceived as having greaterGreater opportunity for aproduct to satisfy specific can be category expertise or competence in a categoryneeds good Respond to competitive offerings
  23. 23. But too many options can lead customers to inertia…Compared data for nearly 794,000 employees at 647 companies. The number of investment options offered to eachemployee varied from as few as two to as many as 59. Source: The Wharton School
  24. 24. …or being overwhelmed• The human brain hasn’t kept pace with the rate of change Americans have mixed• We can only consciously feelings about this “new” news environment. Over contemplate about four bits half (55%) say it is easier of information at any given to keep up with news moment and information today• Rationality can be quickly than it was five years ago, but 70% feel the overwhelmed amount of news and• Process of selecting can information available make us feel worse. Adding from different sources is options increases overwhelming. expectations in light of lack of perfection. Source: Pew Internet Research
  25. 25. Consumers start adapting … “A small-town resident who visits Manhattan is overwhelmed by all that• Satisfy vs. Maximize – is going on. A New Yorker, thoroughly adapted to the city’s “good enough” hyperstimulation, is oblivious to it.” “I didn’t want to spend time going through all• Limit factors/set rules the choices available…we needed a car that was fuel efficient and had room for family. Typed in – Fuel Efficient + Car + Room for Children and• Seek “expert” opinions up popped a few choice of automobiles. Went with the top three and ended up choosing the 1st one because it met our requirements. In• Stick to familiar brands and out and done and driving home.” and environments “Consumers tend to return to the products they usually buy, not even noticing 75% of the items competing for their attention and their dollars.” Source: The Paradox of Choice, Barry Schwartz
  26. 26. Businesses are responding by helping customers find what they need Recommendation engines Comparison shopping Filtering If abundant choice is critical to your business, then help customers navigate the variety that exists
  27. 27. Others find advantage in containing choice Contained choice/preferred environment“We say no to good ideas every day; we say no to great ideas; to keep the number of things we focus on small in number. [We] can probably put every product we make on one table – and we had revenue last year of $40 billion.” – Tim Cook, Apple COO, Feb 2010
  28. 28. Choice can be a good thing, but it’s not always the best thing• Research shows that a broad product assortment can increase market share—and the chance that customers will find exactly what they’re looking for• However, psychologists suggest that too many options can overwhelm some customers—causing them to delay their decision (if possible) rather than making a choice.• In order to be successful, understand how your customers make choices• Help your customers make decisions; they have greater reliance on external assistance than ever before
  29. 29. sharingSharing Photo credit: Unaesthetic, Flickr
  30. 30. Why people share online: it’s not so new “I try to share only information that will reinforce the image I’d like toTo promote your own personal brand present: thoughtful, • 68% share online to give people a better sense reasoned, kind, interested of who they are and what they care about. and passionate.”To belong and feel valued “I enjoy getting comments that I sent great information • 69% share information because it allows them and that my friends will to feel more involved in the world. forward it to their friends • 73% share information because it helps them because it’s so helpful. It makes me feel valuable.” connect with others who share their interests Source: Latitude US Research
  31. 31. People use online sharing to …process information “Without the ability to share our  73% process information more information, what value deeply, thoroughly and thoughtfully when they does it have?” share it.  85% say reading other people’s responses helps them understand & process information and events. make decisionsinfluence others  Use friends as curators of our own consumption  Save you from something bad  Looking for “people like me”  Point you to something good  Immediate information  Bring you around to my side of a cause  To vent! Source: Latitude US Research
  32. 32. The amount of information people share online doubles each yearOver 1 billionmessages posted daily • 850 M Users; 1 in every 9 people on earth • 500 M Users age 35+ and 70% outside the US • Over 50M users like brands every day • 225M active worldwide users • Nearly 250 million tweets per day • Adding nearly 500,000 users a day • 150M users world wide; 60% male • 40% in US; India is next with 9% • More than 6.5M students & 9M recent grads Source: Facebook; Twitter; Pew; Linked In
  33. 33. Sharing is not just social networksE-mail is still the most widely used method of sharing • Facebook is a distant second • But, for 18-24 year olds, Facebook has an edge • 4.2 billion active text users; that’s 60% of the humans on earth Source: Facebook; Gartner; TomiAhonen Almanac
  34. 34. Sharing doesn’t always require words 5B+ photos on flickr 917M+ global users of Skype 4B+ videos watched per day on YouTube Tweet Mirror • 10 different languages • In Netherlands, Belgium, Germany, Italy, A ustria, Switzerland, Norway, Australia, I ndia and China Source: Flickr, Skype, YouTube
  35. 35. Sharing doesn’t even require “sharing” Everything we do online is shared with someone – whether we intend or not. • The devices and apps we use • The sites we visit • The things we buyFrictionless Sharing • The searches we make “Now that Spotify & Facebook are BFF’s, what you listen to on Spotify gets shared on Facebook … Maybe you don’t want to explain … your two-hour Barry White session last Thursday when you said you were at the office.” There’s an argument to be made that Facebook isnt forcing anyone to share; it’s simply adapting to the increasingly social way that we are living our lives online.” Source: Washington Post, CNET
  36. 36. Sharing: considerations for the future Sharing generates masses of content and data … • Who owns it? • How will it be used? • Will people start asking to be compensated for their content/data? • What are we prepared to offer in exchange? Automatic sharing is on the rise. • As it increases quantity -- will it inevitably decrease quality? How do we engage with those who want a relationship, when and where they want it -- without being a nuisance when they don’t? What are the opportunities to develop a true three dimensional relationship with our customers in a two dimensional space?
  37. 37. global/local puzzle
  38. 38. The world is becoming more global • Going out into the world, absorbing influences • News travels fast – we know what’s happening as it is happening • Frictionless sharing – borderless world The 2010 FIFA World Cup was the most watched TV event in history, broadcast inevery country (including North Korea) and garnering an average audience of 400 million viewers per match.
  39. 39. Yet consumers still respond to localization• Growth of local farmers’ markets with growth of global retailers Walmart, Carrefour and Tesco• Growth of English as international language of business same time as revival of the Welsh language• Consolidation of global media companies contrasts with explosion of local language bloggers Consumers may experience local brands as • Authentic • A reaction against • Personal globalization as distant and • Relevant homogenous • Nostalgic
  40. 40. Local is affiliation and relevance• What is local can differ by market• Local does not equal language; Language does not equal local
  41. 41. Local and global brands have different advantagesBeing part of the national culture is a Being seen as a brand that is "setting thesignificant driver of purchase intent for trends“ is a significant driver of purchaseboth global and local brands intent for both global and local brands Source: The Global Brand Survey, Millward Brown
  42. 42. …but may differ by market Source: The Global Brand Survey, Millward Brown
  43. 43. Solving the global/local puzzle• Adapting products and services to meet local needs and tastes• Solving the local value equation through product and pricing strategies• Creating a strong presence and a distinctive identity• Getting as close to the local culture as possible Adapted from The Global Brand, Milward Brown
  44. 44. No standard recipe for global brandsGlobally Locallyconsistent adapted A common global Consistent brand A global Internet positioning adapted supported by a platform creating to local tastes and common need local sites to promote supported by local supported by a a stronger sense of advertisng global campaign community Source: The Global Brand, Millward Brown
  45. 45. Achieving the right global/local balance• Local brands start with a home field advantage, but global brands can break status quo• Don’t think of localization just as a market entry or cost efficiency strategy• Need to understand most advantageous for long term brand building, relevance and image• Customer focus is key - listen, adapt and learn• Remember, all global brands started as local brands!

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