Chapter 3 of Marketing 4.0

1. PARADOXES OF
MARKETING TO
CONNECTING
CONSUMERS
MANN | MAULEON | MERIVELES | TAN

2. theNEW BREED
Young, urban, middle-class
with strong mobility and
connectivity
Rapidly migrating to urban
areas and embracing the big -
city lifestyle

3. theNEW BREED
Being digital natives, they
value high-touch engagement
when interacting with brands
Highly-connected, social
people; they communicate
with and trust one another

4. I always aspire to accomplish
greater goals, experience finer
things, and emulate behaviors
of people in higher classes

5. {C O N N E C T I V I T Y }

6. C O N N E C T I V I T Y
B R O U G H T A C O N S I D E R A B L E C O S T -
R E D U C T I O N B E N E F I T S I N T E R M S O F
I N T E R A C T I O N
{ }
B A R R I E R S T O E N T E R N E W M A R K E T S
W E R E S I G N I F I C A N T L Y L O W E R E D

7. LO W E R B A R RI ERS TO
E N T RY
E N A B L E D C O N C U R R E N T
P R O D U C T D E V E L O P M E N T
+
S H O R T E N I N G O F B R A N D
B U I L D I N G T I M E F R A M E

10. VS
CONVENTIONAL
BOOKSTORES
V I R T U A L P H Y S I C A L
RENTAL STORES
CD SHOPS
TAXI SERVICE

11. 90%
10%
INTERACTIONS
N O N - S C R E E N
S C R E E N

12. W e s p e n d m o r e
t h a n 4 h o u r s o f
o u r l e i s u r e t i m e
d a i l y t o u s e
m u l t i p l e s c r e e n s
s e q u e n t i a l l y a n d
s i m u l t a n e o u s l y .
4+

13. Global internet traffic has grown by a factor
of 30 from 2000-2014
30x
‘00-’14
GLOBAL
INTERNET
TRAFFIC
connecting 4 out of 10 people in the world…

14. 2019
Cisco forecast - another 10 fold jump of
global internet traffic by 2019, powered by
more than 11 billion connected mobile
devices.
+10x 11B I L L I O N
C O N N E C T E D
M O B I L E
D E V I C E S

15. 8 out of 10 smartphone users in the US do
mobile research in store (4/5)

16. Average human attention span: 12 to
8 seconds (2000-2013), 33% decrease
*National Center for Biotechnological information)
-33%
2000-2013
0
5
10
15
2000 2013
AVE ATTENTION SPAN
(SECONDS)
Ave Attention Span (Seconds)

17. DERIVATIVE PRODUCTS OF THE INTERNET

18. ONLINE VS
OFFLINE
INTERACTION
INFORMED
VS
DISTRACTED
CONSUMERS
NEGATIVE VS
POSITIVE
ADVOCACIES
Will the online
"new wave"
marketing replace
the offline "legacy
marketing?
Which is better: an
informed customer
or a distracted
customer?
Is negative
advocacy and
positive advocacy
inherently bad and
good respectively?

19. ONLINE VS OFFLINE INTERACTION
Will the online "new wave" marketing
replace the offline "legacy marketing ?

20. BIRCHBOX | High-Touch Interaction Is Key

21. AMAZON | High-Touch Interaction Is Key

22. MACY’S SHOP BEACON | Compelling
High-Touch Interaction + High-Tech Interface
= More Compelling

23. Technology touches both the
online world and the offline
physical space.

24. ONLINE AND OFFLINE
INTERACTION CO-EXIST.

25. INFORMED VS DISTRACTED
CONSUMERS
Which is better: an informed customer
or a distracted customer?

26. Purchasing decisions are influenced by
three factors:
MEDIA FRIENDS & FAMILY OWN EXPERIENCE

27. {C O N N E C T I V I T Y }
brings a lot of protection
and confidence, but...

28. {C O N N E C T I V I T Y }
…also brings distractions.

29. AS A RESULT,
customers became connected
yet distracted

30. MARKETERS’ CHALLENGES:
Win customers’ attention
Create brand conversations
in customer communities

31. NEGATIVE VS POSITIVE ADVOCACIES
Is negative advocacy and positive advocacy
inherently bad and good respectively?

32. CONNECTIVITYCreates a perfect environment
for customer advocacy of brands

33. ADVOCACY“Word of mouth,” a show of loyalty by
recommendation and endorsement

34. -+ ~
NET PROMOTER SCORE
Famous measurement of brand advocacy
PROMOTERS PASSIVES DETRACTORS
Neutral Not RecommendRecommendS

35. NET PROMOTER SCORE
Famous measurement of brand advocacy
NPS = Promoters% - Detractors%
*The key argument is that the ill effect of negative word of
mouth reduces the good effect of positive word of mouth

36. brand
Consistent pursuance of target segment market
polarization
Lovers and haters

37. Negative advocacy
can be good.
It can trigger positive advocacy from others

38. ADVOCACY
SPONTANEOUS
An active
recommendation
without being asked.
Rare.
PROMPTED
Results from a trigger
by others.
Common.

39. 33% - 29%
4%
%PROMOTERS VS
%DETRACTORS
30% - 23%
7%
N P S N P S

40. “Any brand that has strong characters
and DNA would likely be unpopular
with a certain market segment. But
what these brands should aim to have
is the ultimate sales force: an army of
lovers who are willing to guard the
brand in the digital world.”

41. ONLINE VS
OFFLINE
INTERACTION
INFORMED
VS
DISTRACTED
NEGATIVE VS
POSITIVE
ADVOCACIES
CONCLUSION

42. ADVOCACY
CUSTOMER
I N T E R A C T I O N

43. Thank you.
Got Qs?