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Mass Marketing is dead long live marketin


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Mass Marketing is dead long live marketin

  1. 1. From  Mass  Marke+ng  to  Marke+ng  to  the  individual   The  End  of  Mass  Marke+ng   The  Beginning  of  Marke+ng  to  individuals   Marke&ng  to  empowered  consumers  
  2. 2. It  used  to  be..   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   •  You  segmented  your  audience  on   demographics.   •  You  developed  and  tested   marke&ng  messages  for  those   segments.   •  You  used  mass  media  to   effec&vely  reach  you  audience.   •  You  waited  for  the  sales  numbers   to  increase.  
  3. 3. But  today  mass  marke&ng  is     headed  towards  ex&nc&on     From  Mass  Marke+ng  to  Marke+ng  to  the  individual   •  Consumers  want  more   from  brands  and  products.   •  They  are  skep&cal  that   corporate  America  will  “do   what  is  right”.   •  They  are  purchasing  more   private  label  products.   •  The  Internet,  and  social   media,  has  given  them  a   channel  with  a  lot  of   power.  
  4. 4. Because  customers  are  real  people   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   •  I  am  your  customer.  A  real  person,  a   human  being.   •  For  too  long  you  have  treated  me  as  a   faceless  number  and  lumped  me  into  a   segment  in  a  mass  market.   •  I’m  not  a  segment,  and  I  won’t  tolerate   that  any  more.    I  am  an  individual.   •  There  may  have  been  a  &me  when  I  didn’t   have  much  choice,  but  now  I  have  many   choices,  so  you  need  more  than  I  need   you.   •  I  have  the  power  &  I  am  in  control.  
  5. 5. And  for  the  most  part  they   are  ignoring  your  ads   From  Mass  Marke+ng  to  Marke+ng  to  the  individual  
  6. 6. They  are  also  smarter  and  more   frugal  shoppers  today   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   •  As  the  economic  downturn  has  con&nued,  the  percent  of   shoppers  who  typically  buy  the  brands  they  want  most  has   steadily  declined  across  the  categories  examined.       •  In  March  2010,  less  than  50%  of  shoppers  report  purchasing   the  brand  they  want  most.  
  7. 7. With  deep  rooted  cynicism  towards   companies   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   •   58%  sampled  felt  that  ‘companies  are   only  interested  in  selling  products  and   services  to  me,  not  necessarily  the   product  or  service  that  is  right  for  me’.   •  Only  9%  trusted  companies  to  ‘always   act  in  their  best  interest’  although  more   than  50%  thought  ‘they  some&mes  did’.   •  Only  5%  trusted  adver&sing  and  8%  what   the  company  says  about  itself’.   •  Only  17%  (10%  UK,  23%  US)  of   respondents  thought  companies  took   note  of  what  they   Source:  Alterian,  Brands  at  Risk,  2010  survey  
  8. 8. From  Mass  Marke+ng  to  Marke+ng  to  the  individual   being  zombies   It’s  &me  for  marketers  to  stop  
  9. 9. From  Mass  Marke+ng  to  Marke+ng  to  the  individual   And  accept  reality  
  10. 10. From  Mass  Marke+ng  to  Marke+ng  to  the  individual   Mass  marke&ng  is  dead..  
  11. 11. It  started  with  the  end  to   tradi&onal  segmenta&on   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   •  The  +me  of  mass  social   segmenta+on  is  over.  Now   people  are  clustered  in   microsegments.   •  You  are  more  likely  to  have   more  in  common  with  someone   you  friend  on  social  media  than   your  next  store  neighbor.   •  A  marke&ng  program  can  be   really  successful  if  it  reaches   key  influencers.  
  12. 12. From  Mass  Marke+ng  to  Marke+ng  to  the  individual   Is  this  a  paradigm  shi]  ?  
  13. 13. No,  it’s  the  evolu&on  of   consumers   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   •  The  more  choices  people  have,   the  more  they  segregate   themselves  into  smaller  and   smaller  niches  in  society.   •  The  Internet  has  allowed  people   to  reach  out  to  each  other  and   become  a  powerful  force  of  one.   •  The  recession,  which  is  the  worst   most  of  us  have  ever  experienced,   is  leading  to  the  way  consumers   shop  and  think  about  the  brand-­‐ customer  rela&onship.  
  14. 14. Leading  to  permanent  changes   in  consumer  behavior   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   Consumers  today..   • make  purchase  decisions  in  an  average  of          2.6  seconds   • abandon  >50%  of  shopping  carts  online          without  ever  making  a  purchase   • know  fundamentally  that  power  has   shi]ed  from  companies  to  them,  and  they   don’t  o]en  give  brands  a  second  chance   • are  your  business’s  scarcest  resource  and   most  valuable  asset.  
  15. 15. Time  to  shi]  focus  to  individuals   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   rather  than  the  masses   •  20%  of  your  customers  produce  80%   of  your  revenue      10%  give  you  90%  of  your  profit.   •  A  sa&sfied  customer  will  tell  3   people,  but  a  dissa&sfied  customer   will  tell   12  other  people.   •  It  cost  12  &mes  more  to  win  back   dissa&sfied  customers    a  5%  increase  in  reten&on  would     increase  profits  25-­‐55%  
  16. 16. Social  media  is  an  important  part   of  a  strategy  to  reach  individuals   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   While  consumers  consider  Web  sites  to  be  the  place  to  go  for   informa&on  about  a  brand  and  promo&onal  offers,  they  find   Facebook  to  be  the  ideal  pla@orm  for  voicing  their  opinions  and   connec+ng  with  other  customers.  
  17. 17. Why  people  use  social  media   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   when  it  comes  to  consumer  brands   1.  Share  experiences.   2.  Become  brand  advocates.   –  i.e.    Apple,  BMW   3.  Get  help  with  technological   issues.   –  i.e.  Vizio,  Nokia,  Samsung   4.  Complain  about  poor  performing   brands/products.   5.  Get  special  offers/discounts.   6.  Learn  more  about  via  value   added  content.   7.  Connect  with  others  who  have   similar  interests.   –  i.e.  Subaru,  Trek  Bikes  
  18. 18. Consumers  are  sharing  opinions   via  social  media  on  CPG’s   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   When  consumers  want  to  "share   opinions/experiences"  regarding  a  CPG   brand;     •  57%  use  the  brand's  Facebook  page,     •  50%  its  Web  site  and  38%  its  Twiler   page.   •   When  they  want  to  "connect  with   other  customers,"  54%  use  the   Facebook  page,  48%  the  brand  Web   site  and  35%  the  Twiler  page.  
  19. 19. But  don’t  mistakenly  believe   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   that  your  brand  needs  social  media     •  Is  your  product/brand  worth   talking  about  ?   •  Can  you  provide  a  reason,  other   than  discounts,  for  people  to   engage  with  you  on  social  media  ?   •  Does  your  product  o]en  require   technical  assistance  ?   •  Do  you  get  a  lot  of  calls  from  into   customer  service  ?   •  Are  people  interested  in  sharing   experiences  of  “how  to’s”  when  it   comes  to  your  product.  
  20. 20. And  don’t  make  these  mistakes   when  it  comes  to  social  media   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   •  Don't  think  you  can  just  plug  in  and  go.     –  Managing  communi&es  requires  more  than  technological  skills  and  so]ware;  technology   is  just  an  enabler.  If  you  don't  have  people  who  understand  your  business  and  have  the   skills  to  facilitate  vibrant  discussions  without  domina&ng  the  conversa&on  you  won't   generate  good  insights.   •  Don't  believe  bigger  is  beEer.     –  Companies  o]en  believe  that  the  bigger  the  online  community,  the  beler  the  insights,   and  so  they  build  communi&es  with  thousands  of  members.     –  In  fact,  large  communi&es  are  less  effec&ve  than  smaller  ones  at  nurturing  rela&onships   among  members,  and  between  members  and  the  brand.  They  are  more  transient,  less   "s&cky,"  and  less  sa&sfying  all  around.  When  the  goal  is  deep  customer  insights,  smaller,   private  communi&es  (up  to  400  members)  are  best  for  developing  trust.     •  Don't  expect  people  to  s+ck  around  for  nothing.   –  Community  members  need  to  benefit  from  their  par&cipa&on.  To  sustain  their  interest,   design  engaging  ac&vi&es  (online  or  off)  that  allow  them  to  talk  about  the  brand  in  the   context  of  their  lives  and  build  personal  or  professional  rela&onships.  Give  them  ways  to   talk  with  each  other,  and  with  you.  
  21. 21. Don’t  make  these  mistakes  when   it  comes  to  social  media  (con’t)   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   •  Don't  "sell".     –  You'd  be  amazed  at  how  many  companies  get  customer  communi&es  up  and  running   only  to  sabotage  them  by  trying  to  turn  them  into  another  sales  channel.  Customers   want  to  feel  like  you  mean  it,  and  they  know  when  they're  being  suckered.  They'll  clam   up  as  soon  as  they  get  a  slick  sales  vibe.  Build  trust  and  your  community  members  will   tell  you  more  -­‐  and  buy  more  from  you.   •  Don't  drop  the  ball.     –  Show  members  that  you  are  ac&vely  listening  and  you  value  them:  contribute  to  the   conversa&on,  building  on  their  comments,  and  tell  them  what  you're  doing  with  their   input.  The  worst  thing  you  can  do  is  stop  engaging  when  you  think  you've  got  your   "answer."  Develop  a  long-­‐term  rela&onship  with  your  community.  Deep  insight  takes   &me  to  emerge.  
  22. 22. Consumers  s&ll  use  branded   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   product  websites  too   •  In  the  consumer-­‐packaged-­‐goods   (CPG)  sector,  there's  no  shortage  of   online  interac&on  between   consumers  and  brands  these  days.   –  In  the  food/beverage  realm,  26%   said  they'd  be  likely  to  go  to  a   brand's  Web  site,  15%  to  a  brand's   Facebook  page  and  12  percent  to  a   brand's  Twiler  page.     –  The  palern  was  quite  similar  for   household  products  (26%  Web  site,   13%  Facebook,  12%  Twiler)   –  personal  products  (23%  Web  site,   13%  Facebook,  12%  Twiler)       –  beauty  products  (26%  Web  site,    Ipsos  Marke=ng,  Consumer  Goods   13%  Facebook,  11%  Twiler).  
  23. 23. In  fact  it’s  where  consumers  go   first  when  they  want  informa&on   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   When  the  purpose  is  to  "obtain   informa+on  about  a  brand     •  74%  said  they  go  to  the  brand's  Web   site     •  34%  to  its  Facebook  page     •  28%  to  its  Twiler  page.     •  The  numbers  were  nearly  iden&cal   when  it  comes  to  geqng  coupons  or   promo&onal  offers.  
  24. 24. Smartphone  apps  are  growing  too   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   For  branded  content   •  “We  see  Tide  as  the  authority  in  stain   removal,  and  we’ve  had  stain  solu+ons  on   our  Web  site  for  some  &me,  and  we  wanted   to  extend  out  of  home  to  reach  consumers.”   •  “We  see”?    What  about  consumers  ?    Do   they  really  need  to  take  up  space  on  their   smartphones  with  an  app  that  reminds  them   how  much  they  hate  cleaning  ?   –  It  maybe  downloaded  a  lot  at  first  because  it’s  free   but  it  probably  be  deleted  a]er  a  short  &me   because    of  lille  use.   •  Think:  How  consumers  want  to  get  their   informa+on  and  if  your  target  audience  is   using  the  channel.  
  25. 25. A  key  step  in  marke&ng  to   individual  consumers:     From  Mass  Marke+ng  to  Marke+ng  to  the  individual   iden&fy  barriers  to  conversion   •  Once  you  have  awareness  and   consumers  are  considering  your   brand  the  next  step  is  to  develop  a   decision  tree  analysis;   •  What  problems  does  your   brand  solve  ?   •  What  are  the  poten&al   barriers  to  conversion  as   seen  by  consumers  ?   •  What  is  best  way  to   overcome  these  barriers  ?   •  What  is  the  best  channel  to   overcome  these  barriers  ?  
  26. 26. Overcoming  barriers  to   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   conversion   •  Once  you  have  iden&fied  barriers  to  conversion  use  the  best   channel  to  overcome  them.   –  Web:  Different  homepages  based  on  keywords   –  Web:  Intui&ve  naviga&on  (nav  based  on  the  way  consumers  go   through  buying  process  with  objec&ons  overcome  along  the  way)   –  Social  Media:  Solve  problems,  talk  about  your  product  in  human  terms   not  sales  talk.   –  Print  ads:  different  print  ads  for  different  publica&ons.    Advetorials   based  on  quality,  value  added  content.   –  Online  ads:  content  customized  for  each  site  based  on  psychographics   and  behavioral  targe&ng  of  visitors.   –  CRM:  extensive  database  with  content  that  is  pulled  based  on  data  of   customer  behavior.  
  27. 27. Marke&ng  to  the  individual   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   Print  Media     Dated   •  Match  target  market   demographics  with   magazine  readers  and  run   ads.   New  Marke+ng   •  Customized  content  (not   just  ads)  based  on   psychographics  and   demographics  of  magazine   readers.  
  28. 28. Marke&ng  to  the  individual   Brand  Websites   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   Dated   •  One  home  page  and  website   for  everyone.  Use  search  to   drive  traffic.   New  Marke+ng   •  Different  homepages  based  on   search  terms.   •  Unique  naviga&onal  paths   through  site  by   microsegments.   •  Use  cookies  to  rotate  content.  
  29. 29. Marke&ng  to  the  individual   Social  Media   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   Dated   •  Use  social  media  as  another   channel  to  sell  customers.   New  Marke+ng   •  Use  social  media  to  listen  to   your  customers.   •  Engage  in  dialogue  rather   than  monologue.   •  Use  social  media  for   customer  service.   •  Create  brand  evangelists    
  30. 30. Marke&ng  to  the  individual   Promo&ons   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   Dated   •  Focus  on  price  and   discounts.   New  Marke+ng   •  Bring  people  together  to   celebrate  your  and  share   branded  content.   •  Customize  promo&ons  via   individuals  rather  than   masses.  
  31. 31. Marke&ng  to  the  individual   Search  Marke&ng   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   Dated   •  Bid  on  key  search  terms  and   pay  cost  per  click.   New  Marke+ng   •  Understand  what  you  are   selling  and  use  search  terms   to  drive  to  specific  content   within  your  site  and   different  homepages.   •  Cost  per  targeted  ac&on  not   cost  per  click.  
  32. 32. Marke&ng  to  the  individual   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   Customer  Service   Dated   •  1-­‐800#  with  phone  tree   –  Please  stay  on  the  line  a  customer   service  representa&ve  will  be  with   you  shortly.   New  Marke+ng   •  Customer  Service  on  the   customers  terms.   –  Twiler,  Facebook,  Website  instant   chat  pop-­‐up.   •  FAQ’s  updated  based  on  feedback   from  customer  service  people.  
  33. 33. Marke&ng  to  the  individual   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   CRM   Dated   •  Customer  signs  up  via  website   and  receives  emails  which  they   usually  ignore.   New  Marke+ng   •  CRM  based  on  providing  value  to   the  individual  not  2-­‐4  segments.   •  Value  has  to  be  to  consumers  not   marketers.   •  Don’t  try  to  hard  to  sell  
  34. 34. Marke&ng  to  the  individual   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   TV    (is  it  dead  ?)   No   •  TV  is  great  for  genera&ng  awareness  of   new  products  but  marketers  have  to   move  from  a  push  message  to  an   engagement  strategy  once  awareness   has  reached  a  certain  measurable   point.   •  There  is  very  lille  correla&on  between   awareness  and  conversion  even  though   tradi&onal  media  companies  and  ad   agencies  would  have  you  believe   different.  
  35. 35. But  too  many  impression  can   waste  marke&ng  dollars   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   • Progressive  insurance  spent  over   $200  million  on  the  “Flo”   marke&ng  campaign  and  their   market  share  went  up  0.2%   • Progressive  insurance   considera&on  rose  23%  and  its   brand  impressions  rose  by  18%  ?   At  some  point  you  have  to  ask  “can   we  beler  spend  the  money  to   convert  customers  than  interrup&ng   them  again  and  again  with  the  same   commercials  ?  
  36. 36. One  more  important  thing…   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   •  Execu+on  on  ALL  consumer  touch   points  has  to  exceed  customer   expecta+ons.   •  If  you  screw  up,  ask  for   forgiveness  and  move  on.   •  View  your  marke+ng  from  a   consumers  point-­‐of-­‐view  but   ensure  that  it  provides  a  ROI  for   your  business  objec+ves.   •  Stay  the  course.    Don’t  let  short   term  setbacks  derail  your   marke+ng  efforts.  
  37. 37. Customer  excellence  should  be     part  of  a  company  culture   From  Mass  Marke+ng  to  Marke+ng  to  the  individual   •  Create  superior  value  for   customers  through  deeper  insights   and  solve  their  problems  with  your   product.   •  Create  shareholder  value  through   sustainable  growth,  enhanced   margins,  and  a  reduced  risk  of   customer  loss.   •  Customer  value  is  a  star&ng  point  -­‐   not  the  financial  value  of  the   customer  to  us,  but  the  value  you   create  for  them.  
  38. 38. About me From  Mass  Marke+ng  to  Marke+ng  to  the  individual   Richard Meyer   My CV   My marketing BLOG   MY DTC BLOG hlp://   hlp://   hlp://