Brand Box 2 - Know Your Market - The Marketer's Ultimate Toolkit

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1. Brand Box 2 - Know your market 2. Actions from insights 3. Defining your market 4. Competition is not always bad 5. Porter's 5 forces analysis 6. Market leader or challenger entrant? 7. Market leader or challenger entrant? cont... 8. Market leader or challenger entrant? cont... 9. Predatory marketing 10. Predatory thinking 11. Repositioning the competition 12. A case study on repositioning: Skins 13. Predatory tools of the trade 14. SWOT Analysis 15. Competitive mapping 16. Competitive mapping example: Hybrid cars 17. Competitive mapping: Gloria Jeans 18. Innovative entrant modelling 19. Competitor reaction modelling 20. Best practise, Next practise 21. Competitor match-up 22. Competitor duke out 23. Driver correspondence mapping 24. 9 Business growth strategies 25. 9 Business growth strategies cont... 26. Strategies 27. Strategies cont... 28. Implementing the strategies 29. Competitive environment 30. Futurist trends 31. PEST 32. Futures tunnel 33. Trends research 34. What's the future looking like 35. What's the future looking like cont... 36. The future: Consumer trends 37. Some consumer trends 38. The future: Technology trends 39. Technology trends 40. The future: Society trends 41. Society trends 42. Trend implications 43. A possible future where... 44. A probable future where... 45. Preferred future where... 46. 7 Technologies shaping the future of social media 47. Technologies shaping the Future of social media 48. Technologies cont... 49. Technologies cont... 50. Technologies cont... 51. Binary Analysis 52. Binary Analysis cont... 53. Coke vs Pepsi 54. Coca-Cola 55. Pepsi 56. Coke vs Pepsi cont ... 57. Coke vs Pepsi cont... 58. Coke vs Pepsi

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Brand Box 2 - Know Your Market - The Marketer's Ultimate Toolkit

  1. 1. KNOW YOUR MARKET KNOW YOUR MARKET 2 GROWTH Know Your Business Brand Architecture Branding Positioning Know Your Consumers Profiling Segmentation Insights Pricing Know Your Market Competitve Binary Analysis Predatory Thinking What’s the Big Idea? Launch or NPD Innovation Communications How to Say It Advertising Idea Tone & Messaging When and Where to Say It Media Strategy Connection Idea Channel Planning ACTIONS from INSIGHTS
  2. 2. DEFINING YOUR MARKET WHAT CATEGORY ARE YOU IN?
  3. 3. KNOW YOUR MARKET DEFINING YOUR MARKET 4 “What category are you in?” It seems such a basic question, but often the answer is not really considered. When you look at the difficulties of positioning in today’s marketplace you need to make sure you’re at the top of your market, and you’ve got enough people in it. Some talk about it as making sure your market is an inch wide and a mile deep. Defining your category is required before you consider your competitive set. Be very specific about your category as it will determine your audience and therefore shape your position within that market. The Market Defining your market is the most important business shaping decision you can make. Amongst other things it: • Defines your competitors • Defines your consumers • Determines your position in that category • Determines your strategy for growth Defining your Market
  4. 4. KNOW YOUR MARKET DEFINING YOUR MARKET 5 Competition is Not Always Bad A competitor, or two, or three, usually adds credibility to a category, which tends to broaden the market rather than hurt the specialist. Google’s competitors A year ago, Google only listed two competitors... ...Now they have listed over ten by name. Why? Google have expanded their Internet services and in doing so moved onto the turf of competitors like Yelp. The boom of social networking sites is putting pressure on Google’s advertising revenue. Specialist search engines like monster.com and kayak are becoming very popular. There’s also the emergence of mobile applications on platforms like the iPhone, which allow you to directly access a web product without using a search engine.
  5. 5. KNOW YOUR MARKET DEFINING YOUR MARKET 6 Porter’s 5 Forces Analysis In Porter’s famous model he outlines forces that can influence your business and prosperity. http://www.quickmba.com/strategy/porter.shtml Competitive Rivalry within an Industry Number and size of firms Industry size and trends Fixed vs. variable cost bases Product/service ranges Differentiation strategy Bargaining Power of Customers Buyer choice Buyer size/number Change cost/frequency Product/service importance Volumes Threat of New Entrants Entry ease/barriers Geographical factors Incumbents’ resistance New Entrant strategy Routes to market Bargaining Power of Suppliers Brand reputation Geographical coverage Product/service level quality Relationships with customers Bidding processes/capabilities Threat of Substitute Products Alternative’s price/quality Market distribution changes Fashion and trends Legislative effects
  6. 6. KNOW YOUR MARKET DEFINING YOUR MARKET 7 Market Leader or Challenger Entrant? Where being a challenger can go wrong You only want to grow the market if you’re market leader. If a challenger grows the market they “give away” a disproportionate share and strengthen the leader’s position. First, we will take you through how this happens, then we will show you how to use predatory marketing to gain market share from your competitors. 1. The first to market • Owns 100% and obtains leadership positioning • Gains Top Of Mind (T.O.M.) awareness, distribution and critical mass advantages Market Leader Market Share = 100%
  7. 7. KNOW YOUR MARKET DEFINING YOUR MARKET 8 Market Leader or Challenger Entrant? 2. Challenger entrant establishes market share Market Leader Market Share = 80% Challenger Market Share = 20%
  8. 8. KNOW YOUR MARKET DEFINING YOUR MARKET 9 Market Leader or Challenger Entrant? 3. Challenger often inadvertently grows market • Over 55% of advertising is misattributed to the brand leader, giving T.O.M. awareness, distribution and critical mass advantages Market Leader Market Share = 90% Challenger Market Share = 5% Market Leader Growth
  9. 9. PREDATORY MARKETING How to grow at the expense of stronger competitors
  10. 10. KNOW YOUR MARKET PREDATORY MARKETING 11 What is it? A concise definition of predatory marketing: Identifying the weakness that arises out of your competitors’ greatest strengths and using these to your advantage. It means growing at the expense of your competitors. This is a different way of thinking as there is a temptation to simply copy existing brands and communications; but you need to avoid merely looking for parity with your competitors. Comparing your strengths with your competitors’ allows you to focus on your relative strengths and grow them at your competitors’ expense. A good example of this is Burger King vs. McDonald’s. Initially the market was dominated by McDonald’s, whose key strength was their consistency. Burger King focused on this strength and grew their market by offering the ability to customise your burgers. Predatory Thinking Inflict the greatest damage and make response difficult.
  11. 11. KNOW YOUR MARKET PREDATORY MARKETING 12 Repositioning the Competition Nutri-Grain was winning the battle between these two cereals by using the positioning of Nutrition vs. Iron Man Food. Weet-Bix looked at their relative strengths and found the following piece of information: • Weet-Bix = 3.2 % sugar • Nutri-Grain = 32% sugar They then used advertising, comparing the amount of sugar in Nutri-Grain to various unhealthy snacks to reposition the battle towards low sugar vs. high sugar. VS. It ran for 10 days, they spent $1 million media: $50 million to bottom line The result? Sugar ContentLow High Weet-Bix Nutri-Grain
  12. 12. KNOW YOUR MARKET PREDATORY MARKETING 13 A Case Study on Repositioning: Skins Objectives To increase sales per year by 100%, to increase distribution, to become market leader in the athletics undergarment category by 2006 and to make the brand famous. Skins decided it needed to break away from the elite athlete market and attract the much larger audience of “gym junkies”, runners, tennis players and cricketers. To do this they would have to overcome the following challenges: •• Limited budget - their annual budget was equivalent to one monthly spend for some of the competition •• High product cost - cost per unit was $50-60 higher than the competition •• Getting men into tights •• Getting the brand known •• Battling against the big name competitors The campaign was based on two insights: “Sports stars as a group are not our heroes” and “we’ve become a little cynical about celebrity endorsements”. Skins doesn’t pay sport stars to wear their products, elite athletes pay Skins. The Result The result was an ROI of 694%. Skins sales were up on average 454% year-on-year and the total number of annual distribution outlets 570%.
  13. 13. KNOW YOUR MARKET PREDATORY MARKETING 14 Predatory Tools of the Trade When taking on the market leaders in your category, you need the right tools. The tools on the following pages will help you structure your business and marketing for maximum predatory impact. They are: • SWOT Analysis • Competitive Mapping • Innovative Entrant Modelling • Competitor Reaction Modelling • Best Practice, Next Practice • Competitor Match-Up • Competitor Duke Out • Driver Correspondence Mapping
  14. 14. KNOW YOUR MARKET PREDATORY MARKETING 15 SWOT Analysis STRENGTH WEAKNESS OPPORTUNITY THREAT A SWOT analysis is a great tool to help forge a direction for your company in the context of your current market situation. Conduct a SWOT analysis for yourself and also for your competitors, allowing you to predict and prepare for their next move while making your own.
  15. 15. KNOW YOUR MARKET PREDATORY MARKETING 16 Competitive Mapping You can use this tool to help map out exactly who are your competitors. This will help you gain a better picture of exactly who your competitors are. Direct Competitors same noun and verb Economic different noun/verb Alternative same noun different verb Substitute different noun same verb Noun = Name Verb = Action
  16. 16. KNOW YOUR MARKET PREDATORY MARKETING 17 Competitive Mapping Example: Hybrid Cars Direct Competitors same noun and verb Economic different noun/verb Alternative same noun different verb Substitute different noun same verb Noun = Name Verb = Action Honda Civic Hybrid Toyota Prius Carbon Banking Green Housing Holden Astra Ford Focus Public Transport Scooter Bicycle Walking
  17. 17. KNOW YOUR MARKET PREDATORY MARKETING 18 Competitive Mapping: Gloria Jean’s Coffee Direct Competitors same noun/verb “Espresso Coffee” Economic different noun/verb Alternative same noun different verb “Quick Coffee” Substitute different noun same verb “Caffeine Hit” Noun = Name Verb = Action Starbucks McCafe Coffee Club Michel’s Local cafe Snacks Soft drinks Better lunch Petrol Cigarettes Instant coffee Filtered coffee Caffeine soft drink Tea Easy Way “bubble drinks”
  18. 18. KNOW YOUR MARKET PREDATORY MARKETING 19 Innovative Entrant Modelling Entrant 1 Entrant 2 Entrant 3 Entrant 4 Often a brand’s strength or weakness only shows up in the light of a truly strong competitor. Thinking about what a truly innovative brand might do if they entered your market, may give you a chance to pre-emptively defend against not only your current competitors but the broader competitive set. To use this tool you pick an entrant and decide: given their brand what would they do if they entered the market? Then see if this can give you any ideas or opportunities. Repeat for 4 entrants. E.g: Google, Apple, Virgin, Aussie Home Loans, Harry Potter, Tesco, YSL, Sass & Bide, Chanel, Armani, Ferrari, etc.
  19. 19. KNOW YOUR MARKET PREDATORY MARKETING 20 Competitor Reaction Modelling Competitor 1 Competitor 2 Competitor 3 Competitor 4 Use the same process as the previous page, but use your current competitors. How might they react or counterstrike against any major marketing positionings, initiatives or promotions that you bring to market? Does this give you any ideas or opportunities?
  20. 20. KNOW YOUR MARKET PREDATORY MARKETING 21 Best Practice, Next Practice Choose an industry completely unrelated to yours. Evaluate interesting concepts they have implemented and consider how these could be applied to your business. Interesting idea or practice from an unrelated industry How could this idea be adapted and implemented in your industry? The Idea Generator, Ken Hudson 2007
  21. 21. KNOW YOUR MARKET PREDATORY MARKETING 22 Competitor Match-Up What is your selling proposition? What are your strengths? What are your weaknesses? What is your main competitor’s selling proposition? What are their strengths? What are their weaknesses? The Idea Generator, Ken Hudson 2007
  22. 22. KNOW YOUR MARKET PREDATORY MARKETING 23 Competitor Duke Out You’re operating in a competitive environment. You need to know what your competitors are saying so you can either trump or nullify them. Start by filling out what your competitors are saying and then work out your response. THEM US
  23. 23. KNOW YOUR MARKET PREDATORY MARKETING 24 Driver Correspondence Mapping This tool allows you to prioritise marketing and communications on particular messages, given a market context. To use this tool effectively you first require a list of all the features that add value to your customers. For each one, you need to know how important that is to your customers currently, from minus 10 to plus 10. You also need to know relative to your competitors, whether it’s a relative strength or weakness from minus 10 to plus 10. Once you have that information, you put the corresponding feature in the box according to its customer importance from minus 10 to plus 10. ConsumerImportance Parity Fix Market Leader (+ve) or Brand Share (-ve) Communication Keys Lower Priority Education +10 -10 Rel. Weakness Rel. Strength -10 +10
  24. 24. 9 BUSINESS GROWTH STRATEGIES
  25. 25. KNOW YOUR MARKET 9 BUSINESS GROWTH STRATEGIES 26 9 Business Growth Strategies 9 Business Growth Strategies Dr J Sheth and G Morrison 1. Entrenchment 2. Switching to Intermediaries 3. Mandatory Consumption 4. Going International 5. Broadening Horizons 6. New Applications 7. New Situations 8. Repositioning 9. Redefining Markets Winning Again in the Marketplace: Nine Strategies for Revitalizing Mature Products, J Sheth, G Morrison 1984
  26. 26. KNOW YOUR MARKET 9 BUSINESS GROWTH STRATEGIES 27 1. Entrenchment Increase your market share by removing business from your competitors 2. Switching to Intermediaries Rather than marketing directly to your primary consumers, sell the product to “intermediaries”, people who can resell the product more efficiently 3. Mandatory Consumption This is only viable if environmental change is positive for the consumer. It involves manipulating the market so the consumer views the product as a necessity, i.e. lead-free petrol is a necessity 4. Going International Sell your product globally. This works well when your product is universal and relevant to a variety of cultures 5. Broadening Product Horizons Expand the product’s use by investigating possible secondary uses, i.e. originally orange juice was viewed as a drink only for breakfast. Juice companies broadened their horizons by marketing it as a healthy alternative to soft drink 9 Business Growth Strategies Winning Again in the Marketplace: Nine Strategies for Revitalizing Mature Products, J Sheth, G Morrison 1984
  27. 27. KNOW YOUR MARKET 9 BUSINESS GROWTH STRATEGIES 28 6. New Applications First identify the functional purpose of your product, then identify other purposes and apply these new purposes to create product growth, i.e. baking soda is not only a cooking product, but a cleaning product with a variety of different applications 7. New Situations For a product to be revitalised, new situations to market the product need to be explored. The product or service may need to be marketed to a new place or given a new image. For example, the refrigerator was revitalised when a smaller version was released for use in an office or as a convenience product, not just a necessary one 8. Repositioning This is the process of revitalising a product’s image so that it applies to new markets. When successfully implemented, repositioning can create greater product sales. For example, Campbell’s Soups successfully repositioned its soups from being a side dish to a healthy main meal, as a result gaining a broader market of health conscious, but busy adults 9. Redefining Markets This is an extreme version of repositioning, where an entirely new market is sought for a mature product, rather than just a new segment within the existing market 9 Business Growth Strategies Winning Again in the Marketplace: Nine Strategies for Revitalizing Mature Products, J Sheth, G Morrison 1984
  28. 28. KNOW YOUR MARKET 9 BUSINESS GROWTH STRATEGIES 29 Implementing the Strategies Sometimes this can be the harder part. Use the points below to help keep yourself on track Remain consistent When changing one aspect of your market mix ensure you alter all parts accordingly Work towards win-win outcomes Do not sacrifice the needs of your customer; instead, make changes at the expense of your competition Test your ideas Use market tests to ensure your ideas are being implemented appropriately Embrace entrepreneurial activities Create a risk taking atmosphere by rewarding success, not punishing failure Winning Again in the Marketplace: Nine Strategies for Revitalizing Mature Products, J Sheth, G Morrison 1984
  29. 29. COMPETITIVE ENVIRONMENT
  30. 30. KNOW YOUR MARKET COMPETITIVE ENVIRONMENT 31 PEST Political Economic Social Technological Rather than just giving a snapshot of your current market, it prompts for influences for your market. Worthwhile doing to get a future view...
  31. 31. KNOW YOUR MARKET COMPETITIVE ENVIRONMENT 32 Futures Tunnel This tool looks at the relationship of competitive and environmental forces over time. It’s great for plotting brand development as well as communications. Historical forces refer to a brand that has significant history within a market and looks at traditional customers, distribution channels, product mix and competitors. Historical forces also capture all relevant case studies and examples of what’s worked in the past and why. Current impacts review all factors currently infusing the brand, e.g. media spend and current share of voice, competitive landscape, the consumer, awareness and relationship to the brand, the brand’s current communication mix, current business performance and impact of related and international markets. Future considerations looks at goals and objectives, trends, trend implications and potential shifts in competitive landscape. Category fragmentation or rationalisation. Historic Forces Current Impacts Future Considerations
  32. 32. KNOW YOUR MARKET PREDATORY MARKETING 33 Trends Research What’s the future looking like?
  33. 33. KNOW YOUR MARKET COMPETITIVE ENVIRONMENT 34 The Future 2. Probable 3. Preferred1. Possible What’s the Future looking like? What’s most likely to happen in the next 10 years? What would we like to happen and how can we help this eventuate? What might happen in the next 10 years? When working with a futurist they would generally ask you to look at 3 different futures...
  34. 34. KNOW YOUR MARKET COMPETITIVE ENVIRONMENT 35 The Future Society ConsumerTechnology What’s the Future looking like? cont... ...and then look at those 3 futures in the context of society, the consumer and technology
  35. 35. KNOW YOUR MARKET COMPETITIVE ENVIRONMENT 36 Consumer Trends The Future: Consumer Trends Peer-to-peer connectivity Forever young Materialism Self-enhancement Eco-friendly Wellness trend becomes unisex Singleness Information overload Desire for “realness” Lifestyle balance becomes focus Smallness is the “next big thing” Demographic urbanisation and ethnic diversity Value trust Superficially happy Filter to survive
  36. 36. KNOW YOUR MARKET COMPETITIVE ENVIRONMENT 37 Some Consumer Trends Demographic shifts Populations are ageing, urbanising and becoming more ethnically complex Forever young People being 30 and acting 20, being 40 and acting 30, being 50 and acting 40 Peer-to-peer connection Blog explosion, more virtual friends and everyone being connected by six degrees of separation (or less!) Shift in focus The above represents a shift in focus from work life to releasing pressure, meeting others, feeling empowered and self- expression Data mobility Massive capacity for centralised data with many mobile access points. People expect to be able to access and consume information wherever they are Customisation and personalisation From fashion and pop-culture to Google searches, we are seeing a massive surge in personalisation Self-enhancement Learning and education used to be only for “getting ahead” and career enhancement, but are now being completed simply for bettering oneself. Attached to this is the explosion of art classes, musical instruments, cooking and languages as hobbies Wellness Wellness, which started being led by females, has transversed and has become more unisex. This is an underlying initiating pillar of the long-term trend of balance. Spa, yoga, pilates, treatments and retreats: care, pamper, revive and “slow down” are all now parts of life Smallness is the “next big thing” People are seeking comfort, simplicity, a desire for intimacy, being surrounded by a few close friends, familiarity, safety and security. Brands like Motorola, Heineken, Virgin and Puma are “acting” small to tap into this Desire for “realness” A desire for realness is reflected in movies, TV, fashion, media and spokespeople. Consumers are looking for the “real” face of brands and asking for transparent and genuine behaviour
  37. 37. KNOW YOUR MARKET COMPETITIVE ENVIRONMENT 38 Technology Trends The Future: Technology Trends Perpetual upgrades The pipe gets larger Search 4.0 Smarter machines We live in Real Time Smarter content True mobility Data is about “pulling” not “searching” The Cloud: All data, all devices, always connected Technology increasingly humanised and intuitive Success is about meaningful ways to connect Technologies merge (iPhone: phone, Mp3, GPS, Internet) New technology unanticipated Intuitive technologies will win
  38. 38. KNOW YOUR MARKET COMPETITIVE ENVIRONMENT 39 Business adaptation A constant supply of new software upgrades, as seen by the evolution from Microsoft 98 - 2000 - XP - Vista... Increased intelligence Technologies such as t9 word on cell phones and auto fill search engines learn your personal preferences, in a sense predicting your thoughts Wireless The wireless industry is growing in huge numbers. Wireless semiconductors represented about 21% of the semiconductor industry in 2004 and should be one of the fastest growing semiconductor end markets over the long run as innovations in satellite, WWAN, WMAN, WNAN, WLAN, and WPAN are introduced (Morgan Stanley) Technology Trends The Cloud Switching to Internet is paired with mass data storage in a form called the “Cloud”. The Cloud is mass data storage which you can connect to and access through the Internet. The market for Cloud computing swelled to an estimated $36 billion (Bt1.24 trillion) in 2008, representing roughly 13% of global software sales (The Nation) Size options Reaction to consumers’ demand for convenience forces changes in size and power of laptops and desktops, television sets and Mp3s Technologies merge More examples: MP3/DSC, LCD TV/DVD/DVD-R/DVR, PSP (Morgan Stanley)
  39. 39. KNOW YOUR MARKET COMPETITIVE ENVIRONMENT 40 Society Trends Increasing work stress The information economy grows Globalisation and localisation Extreme urbanisation Natural resources dwindle Environmental consciousness Technology develops The way we shop is/has/will change Reworking of industry Family, peace & freedom Everybody works in design Transparency and accountability increase Mass mingling online encouraging real-world meet up Ageing population Big businesses are “out of touch” The Future: Society Trends
  40. 40. KNOW YOUR MARKET COMPETITIVE ENVIRONMENT 41 Society Trends Ageing population By 2036 it is projected that ¼ of Australians will be over 65 The information economy grows The concept of “the one”, with everyone and everything connected Globalisation and localisation (the counter-trend) Globalisation encourages people to seek and experiment, whereas localisation encourages people to identify with, and participate in, the local environment Reworking of industry Innovation becomes the most critical factor in success. This leads to the blurring of corporate borders as networked ecosystems of producers and consumers emerge Natural resources dwindle Leading to a focus on sustainability Transparency and accountability increase People demand businesses to be open and responsible Technology develops Geography and location lose importance. Practices of work, leisure and love change. For example 12% of US newlyweds met online last year, 2 billion people use cell phones globally, 9 trillion emails are sent each year and there are more than a billion Google searches a day (more than half not in English). The main technology trends that will continue are WIFI - WIMAX, Internet TV, video streaming into everything, bluetooth on the fly and digital home explosion
  41. 41. KNOW YOUR MARKET COMPETITIVE ENVIRONMENT 42 Trend Implications Consumer Power Consumers have infinite resources and techniques to unearth and expose the fake, the untrue, the phoney and the scripted. This means that inauthentic companies can no longer get away with fakeness IMPLICATION: 87% of purchases are first researched online* 3rd party unbiased endorsements are considered to be 3 times more credible than paid advertisements 87% 13% {Purchase researched online *Clive Hamilton, The Australia Report 2009
  42. 42. KNOW YOUR MARKET COMPETITIVE ENVIRONMENT 43 A Possible Future where... Easier to Reach Prospects Real Trust Belongs to Unbiased Partners Harder to Connect
  43. 43. KNOW YOUR MARKET COMPETITIVE ENVIRONMENT 44 A Probable Future where... Stories are King Everything is Faster Even Muesli is Personalised
  44. 44. KNOW YOUR MARKET COMPETITIVE ENVIRONMENT 45 A Preferred Future where... Companies doing the Right Thing are Rewarded Consumer Choice is Easier 2020
  45. 45. 7 TECHNOLOGIES SHAPING THE FUTURE OF SOCIAL MEDIA
  46. 46. KNOW YOUR MARKET COMPETITIVE ENVIRONMENT 47 Trend Scanning Websites like these can help you keep up your scanning... www.trendwatching.com Scans globally for emerging consumer trends www.shapingtomorrow.com Horizon scanning and strategic thinking. It is a trends research tool and management site that helps organisations anticipate the future www.google.com/trends Gives insights into broad search patterns www.google.com/zeitgeist Aggregates search queries and gives search tools to give insights into trends Futurist Trends
  47. 47. KNOW YOUR MARKET FUTURE OF SOCIAL MEDIA 48 The Arduino is a small circuit board commonly used in prototype electronics. Arduino will help household items become involved in our social media world. It has allowed one man to create a device attached to a chair that tweets at the presence of noxious natural gases (ahem), another uses Arduino to monitor when his cats are inside the house or out, and a small bakery and cafe in East London is now able to tweet what’s fresh from their oven. The Arduino RFID Tags and Transponders Transponders, such as Radio Frequency Identification (RFID) tags, are truly breathing life into our objects. For a number of years RFID tags have been used in passports, ID cards, travel cards and credit cards as a means to identify us when scanned, and they are used commercially for inventory tracking. RFID tags have potentially valuable real-world applications. Technologies Shaping the Future of Social Media
  48. 48. KNOW YOUR MARKET FUTURE OF SOCIAL MEDIA 49 The compass is hardly new – it’s been around for thousands of years – but Yamaha has created a tiny 2mm x 2mm chip intended for use in mobile phones as a compass. When used in conjunction with GPS, AGPS or Wi-Fi triangulation and an accelerometer, a compass heading could be extremely useful to give more granular positioning data to mobile applications. Geomagnetic Sensors in mobile devices Optical Pattern Recognition and Augmented Reality At some point, Optical Pattern Recognition tools might be able to tag every photo in an album automatically by recognising faces and objects in photos. Biometric Face Recognition technology is already used by police and security services to help identify known criminals. Technologies Shaping the Future of Social Media
  49. 49. KNOW YOUR MARKET FUTURE OF SOCIAL MEDIA 50 OpenID lets users use a single set of login credentials for every site they visit. Once you’ve authenticated, a second open protocol called OAuth will help you share data about yourself with other sites you use. OAuth lets you grant authorisation to sites to collect data from other places where you participate online. And it will allow you to share your entire identity graph information from your profile to your contacts to your lifestream. Together, these technologies could essentially eliminate the need to fill out forms and register for sites all together. OpenID, OAuth and the Identity Graph Mind Reading The idea of being able to control an interface without the use of your fine motor skills has massive implications for human computer interaction. Consider the ability to tweet what you’re thinking without having to pull your phone out of your pocket, type your message and hit send. Imagine being able to think “Facebook” and your screen presents you with an overview of your friend’s activity stream. Technologies Shaping the Future of Social Media
  50. 50. KNOW YOUR MARKET FUTURE OF SOCIAL MEDIA 51 Natural Language Processing seeks to automatically categorise and understand that which humans understand with ease. By doing so, computers will be able to understand the requests and needs of their human users far better. Of course, talented programmers can already tell their computer to do things with ease, but the rest of us would benefit from applications that understand our curious ways of speaking. Natural Language Processing Technologies Shaping the Future of Social Media
  51. 51. BINARY ANALYSIS
  52. 52. KNOW YOUR MARKET BINARY ANALYSIS 53 Where’s the growth? The simple fact is that more ads does not equal more money to spend! There are only 2 ways to increase sales... 1. Getting new people to use your product, either by: • entering the category, or • switching from your competitor OR 2. Getting existing customers to use more of your product, either by; • increasing their frequency of purchase, or • increasing their basket size Binary Analysis “Getting new people to use your product OR getting existing customers to use more of your product”
  53. 53. KNOW YOUR MARKET BINARY ANALYSIS 54 Binary Analysis The chart below shows the various choices you have when looking to increase sales. 1. Are you looking to grow the market or increase your brand share? 2. Are you looking for this increase to come from current users of your product, or from triallists, or new entrants? 3. Do you have a branding message or a unique selling proposition? Performing a binary analysis will allow you to target your communications to the group most likely to increase your sales. Market Growth Brand Share Current Users Triallists Branding USP Branding USP Triallists Branding USP Branding USP Market Leader should normally look to grow the market Will join the category from the next most attractive alternative e.g. If you are selling soup for lunches, this group may currently be eating sandwiches These are currently your competitors’ customers Be honest if you have no real USP and make your branding strong! Current Users
  54. 54. KNOW YOUR MARKET PREDATORY MARKETING 55 COKE VS. PEPSI
  55. 55. KNOW YOUR MARKET BINARY ANALYSIS 56 Market Growth Current Users Triallists Branding USP Branding USP 1. Coke started the cola boom with branding and rapidly grew the market Coca-Cola’s Market Share 100%
  56. 56. KNOW YOUR MARKET BINARY ANALYSIS 57 2. Pepsi came in and tried to do the same thing, but just drove Coke’s share Coca-Cola Growth Pepsi’s Market Share
  57. 57. KNOW YOUR MARKET BINARY ANALYSIS 58 3. Meanwhile, Coke tried to attack Pepsi with “the real thing” Market Growth Current Users Triallists Branding USP Branding USP
  58. 58. KNOW YOUR MARKET BINARY ANALYSIS 59 4. Pepsi changed tact and took Coke’s share with the “Pepsi Challenge” Market Growth Current Users Triallists Branding USP Branding USP
  59. 59. KNOW YOUR MARKET BINARY ANALYSIS 60 5. Coke then went back to growing the market with, “I want to buy the world a Coke”. As everyone had tried, they focused on current users’ increased frequency... “buy one for a friend”, “turn up to a party with a Coke” Market Growth Current Users Triallists Branding USP Branding USP
  60. 60. The End
  61. 61. Contact us to get yourself a copy hellostepchange.com | +61 2 8030 8655 | chat@hellostepchange.com The next book in the Brand Box series is Book 3: Know Your Consumer Congratulations on completing Book 2: Know Your Market The Brand Box series

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