Marketing on the Edge: New
 Frameworks for a New Era

            Don E. Schultz
 Agora, Inc. and Northwestern University
...
The Challenge?

The Battle of the Future Will be
      “Behind the Lines”
Three Critical Elements



  Content   Delivery



      Audience
Why Marketing
Communication Is So Much
More Difficult for Agencies
  Than It Once Was…..
Traditional Marketer
       Controlled System

 Agency → Media Organization → Sales Force
                                ...
Based on an Outbound Message
     Distribution System
• All marketer distributed - all marketer controlled
• Based on beha...
The Model Looked Like This:
             “Hierarchy of Effects”
                                           One-Way



 Med...
Everyone Doing the Same
Things With the Same Tools
                              Competitors

                            ...
And,
Agencies Had a Big Role
Content Was King



 Delivery   Audience



     Content
But,
Technology Changed the
      Marketing
 Communication World!
Customers Acquired
   Information Technology
            Internet – WiFi

             Mobile Telephony

Customer    iPods...
That Enabled Customers to Avoid
      Marketer Messages
                              Competitors

                       ...
And,
 It Resulted in an Entirely
      New Marketing
Communication System That
     Customers Control
Customer Controlled
                                                      Communication Systems
Employees/Recommenders/Dis...
Now,
The Battle Is “Behind the
         Lines”
How Customers Aggregate Media

 Newspapers               Magazines
  Web sites               Direct Mail
   Blogs         ...
It No Longer Matters How
Good You Are With Traditional
      Agency Capabilities

            Agency   → Media Advertising...
What to Do?
Rule #1

It’s Not How Many Messages
        You Distribute,
  It’s How Many Messages
      Customers Receive
Media Consumption Model
                           Response
 Potential Fragmentation                      Potential Synerg...
And, What Internal Networks
 They Create for Themselves

   marketers
                       O
                           ...
Rule #2
It’s Not What Delivery Forms
You Use, It’s How They Work
       in Combination

         SYNERGY!
Today, Specialization Is Evil
                        Marketing
                         Marketing
                      C...
Agencies Must Focus on Customer
          Experiences
    Customer Service            Product Design


 Press and         ...
Brand Experiences Occur
              “Behind the Agency Lines”
  Brand                      Internet Systems
Experiences
...
Audiences Become King



 Content   Delivery




     Audience
And,
Delivery Becomes the Crown Prince



       Content   Audience




           Delivery
Today,
Agencies Are Facing the
     Wrong Way!
Agencies Are Still Stuck in an
Employees/Recommenders/Distributors/Influencers
                                           ...
The Action Is All
“Behind the Lines”
Marketing Communication
    “Behind the Lines”,
    Means Doing Things
Differently, Not Just Doing
 the Same Things Better!
Key Elements
• Understanding audiences, not just creating
  content
• Identifying message consumption, not just
  message ...
Can Agencies Get There
     From Here?
I Assume That Is Why You
   Have Gathered in the
         Desert
In Addition to Golf and
      Swimming
Thank You for Your Time,
   Your Attention and
For Not Throwing Things
Don E. Schultz Ph.D.
dschultz@northwestern.edu
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Don E. Schultz - Marketing on the edge

  1. 1. Marketing on the Edge: New Frameworks for a New Era Don E. Schultz Agora, Inc. and Northwestern University 4 December, 2006 iMEDIA Agency Summit Scottsdale
  2. 2. The Challenge? The Battle of the Future Will be “Behind the Lines”
  3. 3. Three Critical Elements Content Delivery Audience
  4. 4. Why Marketing Communication Is So Much More Difficult for Agencies Than It Once Was…..
  5. 5. Traditional Marketer Controlled System Agency → Media Organization → Sales Force Customer/ Marketer Prospect
  6. 6. Based on an Outbound Message Distribution System • All marketer distributed - all marketer controlled • Based on behaviorist psychology – Stimulus Response – Attitudinal change Behavioral change • Mostly interruptive – when marketers want to talk • All activities separate, distinct and unconnected In Short, Marketers Talk, Customers Listen
  7. 7. The Model Looked Like This: “Hierarchy of Effects” One-Way Media Attitudes/ Knowledge Preference Conviction Purchase Adver- Awareness Behavior tising Linear “Influencing and Persuading Consumers” Source: Adapted from Lavidge and Steiner
  8. 8. Everyone Doing the Same Things With the Same Tools Competitors Competitors Agency → Media Organization → Sales Force Customer/ Marketer Prospects Competitors Competitors
  9. 9. And, Agencies Had a Big Role
  10. 10. Content Was King Delivery Audience Content
  11. 11. But, Technology Changed the Marketing Communication World!
  12. 12. Customers Acquired Information Technology Internet – WiFi Mobile Telephony Customer iPods/MP3 -- podcasts Search Engines Cable/satellite Blocking systems - TIVO/DVRs/ Filters/Pop-up Blockers/etc.
  13. 13. That Enabled Customers to Avoid Marketer Messages Competitors Competitors Agency → Media Organization → Sales Force Customer/ Marketer Prospects Competitors Competitors
  14. 14. And, It Resulted in an Entirely New Marketing Communication System That Customers Control
  15. 15. Customer Controlled Communication Systems Employees/Recommenders/Distributors/Influencers Web Search Competitors Competitors Agency → Media Organization → Sales Force Customer/ Marketer Prospect Competitors Competitors Word of Mouth New Media
  16. 16. Now, The Battle Is “Behind the Lines”
  17. 17. How Customers Aggregate Media Newspapers Magazines Web sites Direct Mail Blogs RSS Customer TV Event PR Podcasts WOM Internet Search Cable In-Store
  18. 18. It No Longer Matters How Good You Are With Traditional Agency Capabilities Agency → Media Advertising Customer/ Marketer Prospect
  19. 19. What to Do?
  20. 20. Rule #1 It’s Not How Many Messages You Distribute, It’s How Many Messages Customers Receive
  21. 21. Media Consumption Model Response Potential Fragmentation Potential Synergy Of Attention Via Simultaneous Media Usage (Message Impact Diluted) (Messages Reinforced) Media Consumer Media Media Media Exposure Exposure Exposure Foreground/Background Media Time Allocated To Each Media Form
  22. 22. And, What Internal Networks They Create for Themselves marketers O marketers R C O C O C C R R R R C O C C O R O O R O marketers
  23. 23. Rule #2 It’s Not What Delivery Forms You Use, It’s How They Work in Combination SYNERGY!
  24. 24. Today, Specialization Is Evil Marketing Marketing Communications Communications Media Media Internet and Internet and Direct Direct Sales Sales PR/Events/ PR/Events/ Advertising Advertising Electronic Electronic Mail Mail Promotion Promotion Sponsorships Sponsorships Consumers Consumers Attitudes Attitudes Behaviors Behaviors ?
  25. 25. Agencies Must Focus on Customer Experiences Customer Service Product Design Press and Pricing Media Customer’s View Of Marketing Communication Sales Force Distribution Internet and Electronic Advertising
  26. 26. Brand Experiences Occur “Behind the Agency Lines” Brand Internet Systems Experiences • Web sites • Customer Service • Tech support • Retailers • Distributors • User communities Marketer Agencies Messages Consumer • Blogs • RSS • Influencers • Recommenders Brand Experiences Electronic Systems
  27. 27. Audiences Become King Content Delivery Audience
  28. 28. And, Delivery Becomes the Crown Prince Content Audience Delivery
  29. 29. Today, Agencies Are Facing the Wrong Way!
  30. 30. Agencies Are Still Stuck in an Employees/Recommenders/Distributors/Influencers Outbound, Push System Web Search Competitors Competitors Agency → Media Organization → Sales Force Customer/ Marketer Prospect Competitors Competitors Word of Mouth New Media
  31. 31. The Action Is All “Behind the Lines”
  32. 32. Marketing Communication “Behind the Lines”, Means Doing Things Differently, Not Just Doing the Same Things Better!
  33. 33. Key Elements • Understanding audiences, not just creating content • Identifying message consumption, not just message distribution • Understanding “synergy” among message elements • Generating “outcomes”, not just developing “outputs” • System, not element-centric
  34. 34. Can Agencies Get There From Here?
  35. 35. I Assume That Is Why You Have Gathered in the Desert
  36. 36. In Addition to Golf and Swimming
  37. 37. Thank You for Your Time, Your Attention and For Not Throwing Things
  38. 38. Don E. Schultz Ph.D. dschultz@northwestern.edu

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