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MTDC 2007 Marketing Trends


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This presentation is a strategic view of marketing trends and paradigms. The presentation is geared towards early stage start-ups and other organizations seeking to leverage the framework for open collective value innovation and emerging social media. The references associated with the material is posted on my blog at

Published in: Economy & Finance, Business
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MTDC 2007 Marketing Trends

  1. 1. Marketing Trends June 7, 2007
  2. 2. Marketing “… identifying and meeting human and social needs.” Philip Kotler
  3. 3. Agenda <ul><li>Myths </li></ul><ul><li>Trends </li></ul><ul><li>Paradigms </li></ul>
  4. 4. Driver <ul><li>The Internet </li></ul><ul><ul><li>The Internet continues to be the key driving force behind marketing innovation </li></ul></ul>WOMM widget bliget chicklet buzztracker mashup delicious social media social bookmarking SMO trackback digg tag typelist blogroll viral marketing buzz marketing vblog podcasting contentcasting
  5. 5. Marketing Myths <ul><li>The same marketing techniques work every time </li></ul><ul><li>You need a multimillion budget to create a commercial </li></ul><ul><li>Marketing is all about advertising </li></ul><ul><li>Marketing is simply an operational expense </li></ul><ul><li>A perfectly executed marketing plan will guarantee success </li></ul><ul><li>Marketing’s goal is to increase sales </li></ul><ul><li>Marketing starts when you’re ready to launch </li></ul><ul><li>Marketing is a function. “Marketing owns it” </li></ul><ul><li>Innovation comes from inside </li></ul><ul><li>Never give the product / service away </li></ul><ul><li>You must position and identify with an industry & competition </li></ul><ul><li>Target the broadest customer segment </li></ul>
  6. 6. Crisis In Mass Marketing <ul><li>18%: Proportion of TV advertising campaigns generating positive ROI </li></ul><ul><li>54 cents: Average return in sales for every $1 spent on advertising </li></ul><ul><li>256%: The increase in TV advertising costs (CPM) in the past decade </li></ul><ul><li>84%: Proportion of B2B marketing campaigns resulting in falling sales </li></ul><ul><li>100%: The increase needed in advertising spend to add 1-2% in sales </li></ul><ul><li>14%: Proportion of people who trust advertising information </li></ul><ul><li>90%: Proportion of people who can skip TV ads who do skip TV ads </li></ul><ul><li>80%: Market share of video recorders with ad skipping technology in 2008 </li></ul><ul><li>95%: The failure rate for new product introductions </li></ul><ul><li>117: The number of prime time TV spots in 2002 needed to reach 80% of adult population – up from just 3 in 1965 </li></ul><ul><li>3000: Number of advertising messages people are exposed to per day </li></ul><ul><li>56%: Proportion of people who avoid buying products from companies who they think advertise too much </li></ul><ul><li>65%: Proportion of people who believe that they are constantly bombarded with too much advertising </li></ul><ul><li>69%: Proportion of people interested in technology or devices that enable them to skip or block advertising </li></ul>Source: Justin Kirby & Paul Marsden (2006). Connected marketing . Oxford, UK: Butterworth-Heinemann. xix
  7. 7. Status of Marketing Management <ul><li>“ In many organizations, the corporate marketing function has lost budget, head count, influence, and confidence, resulting in strategic consequences than run deeper than many managers may realize.” </li></ul><ul><li>Source: The Decline and Dispersion of Marketing Competence. 2006 MIT Sloan Management Review </li></ul>
  8. 8. <ul><li>Green </li></ul><ul><li>Grey </li></ul><ul><li>Karma Capitalism </li></ul><ul><li>Transparency </li></ul><ul><li>Authenticity </li></ul><ul><li>Democratized advertising </li></ul><ul><li>WOMM </li></ul><ul><li>Controversy </li></ul><ul><li>Market space </li></ul><ul><li>Social media </li></ul><ul><li>Trusted social media advertising </li></ul><ul><li>Online paid search ads </li></ul>Trends
  9. 9. Out <ul><li>Traditional advertising </li></ul><ul><li>Monologue </li></ul><ul><li>Market place </li></ul><ul><li>Classical 4Ps paradigm </li></ul>
  10. 10. 70+ Million Weblogs March 07 March 03 Source:
  11. 11. Websites WW Netcraft November 2006 survey In May 2007, the number reported was a little over 118 million worldwide
  12. 12. Source:
  13. 13. Posts By Language Source: #1 Japanese #2 English #3 Chinese
  14. 14. Global Online Population <ul><li>Currently about 1.2 billion </li></ul><ul><li>Projected to grow to 1.8 billion by 2010 </li></ul>
  15. 17. Summary <ul><li>70 million weblogs </li></ul><ul><li>About 120,000 new weblogs each day, or... </li></ul><ul><li>1.4 new blogs every second </li></ul><ul><li>3000-7000 new splogs (fake, or spam blogs) created every day </li></ul><ul><li>Peak of 11,000 splogs per day last December </li></ul><ul><li>1.5 million posts per day, or... </li></ul><ul><li>17 posts per second </li></ul><ul><li>Growing from 35 to 75 million blogs took 320 days </li></ul><ul><li>22 blogs among the top 100 blogs among the top 100 sources linked to in Q4 2006 - up from 12 in the prior quarter </li></ul><ul><li>Japanese the #1 blogging language at 37% </li></ul><ul><li>English second at 33% </li></ul><ul><li>Chinese third at 8% </li></ul><ul><li>Italian fourth at 3% </li></ul><ul><li>Farsi a newcomer in the top 10 at 1% </li></ul><ul><li>English the most even in postings around-the-clock </li></ul><ul><li>Tracking 230 million posts with tags or categories </li></ul><ul><li>35% of all February 2007 posts used tags </li></ul><ul><li>2.5 million blogs posted at least one tagged post in February </li></ul>Source: Technorati March 2007.
  16. 18. Social Media Social media describes the online technologies and practices that people use to share opinions, insights, experiences, perspectives and media itself. Social media can take many different forms, including text, images, audio, and video. These sites typically use technologies such as blogs , message boards , podcasts , wikis , and vlogs to allow users to interact. Source: Wikipedia
  17. 19. Word of Mouth Marketing <ul><li>WOMM: Umbrella term </li></ul><ul><ul><li>Buzz marketing </li></ul></ul><ul><ul><ul><li>Special hook, event, promotion. Aqua Teen Hunger Force Boston Bomb Scare </li></ul></ul></ul><ul><ul><li>Viral marketing </li></ul></ul><ul><ul><ul><li>Branded material, websites, widgets, bligets, videos, utilities, collaboration tools etc. that sneezers spread. ParkRidge47, Vote Different </li></ul></ul></ul><ul><ul><li>Influencer marketing </li></ul></ul><ul><ul><ul><li>Identifying and finding the influencers </li></ul></ul></ul><ul><ul><li>Evangelist marketing </li></ul></ul><ul><ul><ul><li>Turning most loyal customers into citizen marketers </li></ul></ul></ul><ul><ul><li>Street marketing </li></ul></ul><ul><ul><ul><li>Interacting at popular offline places like Buzz Oven </li></ul></ul></ul><ul><ul><li>Stealth / Undercover marketing </li></ul></ul><ul><ul><ul><li>Bree, lonelyGirl15 </li></ul></ul></ul>Source: Justin Kirby, & Paul Marsden (2006). Connected marketing . Oxford, UK: Butterworth-Heinemann. 198 YouTube Aqua Teen Buzz Oven Bree
  18. 20. Widget Marketing Cool plug-n-play things for your sidebar
  19. 21. Mashup Example of Google Maps mashup on MySpace account.
  20. 22. U.S. Online Ad <ul><li>$16.9 billion market in 2006 </li></ul><ul><ul><li>5.9% of the $285 billion total U.S. advertising market in 2006 </li></ul></ul><ul><li>Notable M&A activity </li></ul><ul><ul><li>Google bought DoubleClick for $3.1 billion in 4/07 </li></ul></ul><ul><ul><li>Microsoft bought aQuantive for $6 billion 5/07 </li></ul></ul><ul><ul><li>WPP Group bought 24/7 Real Media for $649 million 5/07 </li></ul></ul>Source: Wall Street Journal, May 25, 2007, pg. B1
  21. 23. U.S. Online Ad Spending Source: Wall Street Journal, May 25, 2007, pg. B1
  22. 24. New Paradigm <ul><li>Sell your idea first </li></ul><ul><li>Find your actors (audience) first </li></ul><ul><li>Size does not matter - PlentyOfFish </li></ul><ul><li>Reduce risk by pushing control out </li></ul><ul><li>Value creation increases at the edge </li></ul><ul><li>Decentralize authority, process, and IP </li></ul><ul><li>Transparency creates value </li></ul><ul><li>Truth travels fast </li></ul><ul><li>Price alone is not sustainable </li></ul><ul><li>Reengineer your value chain </li></ul><ul><ul><li>Skip intermediaries wherever possible </li></ul></ul><ul><li>Reinvent your business models </li></ul><ul><li>Change the status quo </li></ul>
  23. 25. New Paradigm <ul><li>Democratization of 4Ps paradigm </li></ul><ul><ul><li>Citizen branding </li></ul></ul><ul><ul><li>Collective collaboration </li></ul></ul><ul><ul><li>Collective risk sharing </li></ul></ul><ul><ul><li>Collective product innovation </li></ul></ul><ul><ul><li>Collective IP ownership </li></ul></ul><ul><li>Citizen marketers will sell “remarkable” ideas </li></ul><ul><li>Innovators should adopt the 1% rule </li></ul><ul><ul><li>If you don’t find the “sneezers” or connectors, the 80/20% rule won’t matter </li></ul></ul><ul><li>Work backwards </li></ul><ul><ul><li>Build your brand around your idea first. If the community you are targeting does not coalesce and rally around the idea, continuing to build the product is irrelevant </li></ul></ul><ul><li>Create your own “blue ocean” </li></ul><ul><ul><li>If you play it safe and go by the rules of your industry, value chain, and business model – you’re dead! </li></ul></ul><ul><ul><li>Most industries and markets are saturated and highly concentrated. </li></ul></ul>
  24. 26. Old 4Ps Paradigm 4Ps Value Creator Customer
  25. 27. New Paradigm 4Ps Value Innovator Customer Product Brand
  26. 28. New Value Innovation Paradigm Source: Mohanbir Sawhney, & Deval Prikh (2001). Where value lives in a networked world. Harvard Business Review , HBR #R0101E.
  27. 29. It’s About Social Behavior <ul><li>It’s not about a cheaper product or your idea. Try to change customer behavior. </li></ul><ul><ul><li>It’s not about better coffee – it’s about the place </li></ul></ul><ul><ul><li>I am not looking for a ¼” drill bit – I need to make a hole </li></ul></ul><ul><ul><li>It’s not about the hog, it’s about a lifestyle </li></ul></ul><ul><ul><li>It’s not about the sound – it’s about how it makes me feel </li></ul></ul><ul><ul><li>It’s not about the sound – it’s about being hip </li></ul></ul><ul><ul><li>It’s about my space </li></ul></ul><ul><ul><li>It’s about my video </li></ul></ul><ul><ul><li>It’s about my opinion </li></ul></ul><ul><ul><li>It’s about the experience </li></ul></ul><ul><ul><li>It’s about your choices, places, and time </li></ul></ul><ul><li>Examples </li></ul><ul><ul><li>Apple, Starbucks, JetBlue, MySpace, Harley-Davidson, Tivo, Stew Leonard’s, Threadless </li></ul></ul>
  28. 30. Implications <ul><li>Reached the tipping point </li></ul><ul><li>The static web maturing </li></ul><ul><li>Monologue marketing out </li></ul><ul><li>Live Web (a/k/a Blogosphere) is making information transparent </li></ul><ul><li>Word travels fast </li></ul><ul><li>People are more likely to act on a peer’s recommendation by factor X </li></ul><ul><li>Marketing is a reflection of social paradigms </li></ul><ul><li>The new social media and networks changing customer expectation and behavior </li></ul>
  29. 31. Napa Consulting Group <ul><li>Marketing & strategic planning </li></ul><ul><li>Helping clients adapt emerging e-business models and social media in pursuit of value innovation. </li></ul><ul><ul><li> </li></ul></ul>