This document discusses managing brands in digital and social channels. It notes the shift from mass media and push marketing to social media, wisdom of crowds, and two-way dialogue. Case studies show risks of not engaging on social media and benefits of transparency, interaction, and community building. Key success factors include being open and sharing. Metrics like net promoter scores can measure impact. Brands must adapt to changing customer expectations and invest in social media presence, interaction, and content.

1. Beeckestijn Business School
Managing Brands in Digital and Social Channels
1

2. Hans Molenaar
2
2
Marketing
Science Award

3. Beeckestijn Business School
3

4. Agenda
4
 Observations
 Channels
 Cases
 Models
 Conclusions

5. 5
Hijacking for
Beginners…

6. 6

7. 7

8. 8

9. The „shift‟
9
9
•Assembly •Realtime
Products •Push Social •Wisdom of crowds
•Mass production •Web 3.0
•PMC‟s •Alliances
Markets Networks
•Segmentation •Integrations
•Branding •Dialogue
•Mass media •Web 2.0
•CRM
•Servicing
Customers Interaction
•EDM
•Database mkg
•1:1
•Push communication
•WEB 1.0

10. Media don‟t disappear, but…
10
Personal communication
Mobile Internet Email
PC web
Low reach
High reach
Print
Digital TV
Analogue TV
Radio
Cinema
Mass communication

11. 11

12. 12
BRANDS
TRIGGERS
DIALOGUE

13. BREAK UP

14. WHY HAVE SOCIAL MEDIA AND WORTH OF MOUTH SUCH AN IMPACT ?

15. Trust
15

16. 16

17. 17

18. Titel
18

19. From mass media to digital & social media
19

20. 20
20

21. Dutch Telco provider
21 = traffic
share
Commercial traffic target 18.000 = Cost per
Order
CHANNEL
40% 2% 12% 8% 31% 11%
Direct Affiliate Email Display Search Social
CPO CPO CPO CPO CPO CPO
7,- 19,- 6,- 25,- 21,- 9,-
Traffic 76.000 48.000 16.000 10.000 44.000 5.000
40%
CONVERSION
2%
12%
8%
31%
11%

22. WHAT ARE RIKS OF NOT BEING SOCIAL ?

23. 23

24. 24

25. 25

26. 26

27. What Kryptonite should have done:
27
 Use influential opinion leaders (celebrities,
subculture leaders, etc)
 Responded to the blogs immediately
 Use social and digital media to interact
 Have a community and fanbase

28. 28

29. THAT IS NOT POSSIBLE IN B2B !

30. 30

31. Jeff Jarvis
31

32. 32

33. Stockprice Dell
33

34. Dell vs Nasdaq
34

35. 35

36. 36

37. 37

38. 38

39. TRANSPARANCY

40. 40

41. 41

42. 42
"They reached out to
bloggers; they
blogged; they found
ways to listen to
and follow the
advice of their
customers. They
joined the
conversation. That‟s
all we asked.“
Jeff Jarvis

43. IT IS HAPPENING EVERY DAY

45. NOT ONLY TO AVOID CRISES

46. 46

47. 47
47

48. 48
John Deere and the Chip Foose
custom 4020 tractor contest

49. 49

50. Why ?
50
50
Service = ???

51. BUT WE SELL BORING STUFF !

52. 52

53. 53

54. IT ALL STARTS WITH A VISION

55. 55
55

56. BUT THAT DOESN‟T WORK IN B2B !

57. 57
57

58. “Selling the sizzle not the digger”
58
58

59. SO WHAT THEORY OR CONCEPTS CAN HELP US ?

60. 60

61. The Economics of Collaboration
61
Mass
Self-
Organization Collaboration
Value Business
Creation Webs
Extended
Enterprise
Traditional Industrial Age
Hierarchy Corporation
Physical Knowledge
Critical Resources
Financial

62. Two key succesfactors
62
1. Being Open
2. Interacting and Sharing

63. 63

64. Likeonomics
64
64

65. 65

66. HOW TO MEASURE ?

67. 67

68. Netpromotor scores by Industry
68
68
Financials Consumer electronics Telco
Churn 10% Churn 25% Churn10%
NPS -47% NPS -35% NPS -29%
Source: TOTE-M Consumer Research on Loyalty, (Potential) Churn and Testimonials

69. The Impact on customer value
69
69
Buyer Economics Referral Economics
$ 5000 $ 5000
Promoter
$ 4000 $ 4000
$ 3000 Promoter $ 3000
Average
Total Customer Worth
Total Customer Worth
$ 2000 $ 2000
Average
Detractor Detractor
$ 1000 $ 1000
$0 $0
$ -1000 $ -1000
$ -2000 $ -2000
B2C:High Tech: Computer Hardware Apple Computers
Source: Satmetrix. Exploring the relationship between Net Promoter and Word-of-Mouth in the computer hardware industry.

70. WILL EVERYTHING BECOME DIGITAL ?

71. The Google (14 years old) direction
71
(Advertising spend in US) 2008 2011
Internet $ 26,0 mln $123,3 mln
Television $ 0,0 mln $ 69,3 mln
Print, Radio & Outdoor $ 4,0 mln $ 20,7 mln
Source: Wall Street Journal

72. Google Chrome TV commercial
72

73. Burberry (155 years old) direction
73
 In 4 years time from 2% to 40% of the whole
marketing budget was spent in digital and
social
 First luxury brand with more than 3 mln
fans on facebook
 Over 9 mln page views in nine months after
launching artofthetrench.com

74. 74

75. 75

76. What to do ?
76
1. Giving up control and orchestration
2. Create a vision and content strategy
3. Focus on customers not campaigns
4. Create corporate guidelines
5. Focus on reacting instead of preventing
6. Invest in your social capital outside
7. Invest in monitor and interaction capacity

77. A lot of work behind the scenes
77

78. 78

79. Contact
79
79
Hans Molenaar (hmolenaar@beeckestijn.org / 06-51030367)
#hansmolenaar
Beeckestijn Business School
Postbus 333
3830 AJ Leusden
T +31 (0)88-472 22 30
F +31 (0)84-220 79 87
E info@beeckestijn.org
W www.beeckestijn.org