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. The Challenge?
The Battle of the Future Will be
“Behind the Lines”

3. Three Critical Elements
Content Delivery
Audience

4. Why Marketing
Communication Is So Much
More Difficult for Agencies
Than It Once Was…..

5. Traditional Marketer
Controlled System
Agency → Media Organization → Sales Force
Customer/
Marketer Prospect

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. 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. Everyone Doing the Same
Things With the Same Tools
Competitors
Competitors
Agency → Media Organization → Sales Force
Customer/
Marketer
Prospects
Competitors
Competitors

9. And,
Agencies Had a Big Role

10. Content Was King
Delivery Audience
Content

11. But,
Technology Changed the
Marketing
Communication World!

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. That Enabled Customers to Avoid
Marketer Messages
Competitors
Competitors
Agency → Media Organization → Sales Force
Customer/
Marketer Prospects
Competitors
Competitors

14. And,
It Resulted in an Entirely
New Marketing
Communication System That
Customers Control

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. Now,
The Battle Is “Behind the
Lines”

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. It No Longer Matters How
Good You Are With Traditional
Agency Capabilities
Agency → Media Advertising
Customer/
Marketer Prospect

19. What to Do?

20. Rule #1
It’s Not How Many Messages
You Distribute,
It’s How Many Messages
Customers Receive

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

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. 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. 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. Audiences Become King
Content Delivery
Audience

28. And,
Delivery Becomes the Crown Prince
Content Audience
Delivery

29. Today,
Agencies Are Facing the
Wrong Way!

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. The Action Is All
“Behind the Lines”

32. Marketing Communication
“Behind the Lines”,
Means Doing Things
Differently, Not Just Doing
the Same Things Better!

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. Can Agencies Get There
From Here?

35. I Assume That Is Why You
Have Gathered in the
Desert

36. In Addition to Golf and
Swimming

37. Thank You for Your Time,
Your Attention and
For Not Throwing Things

38. Don E. Schultz Ph.D.
dschultz@northwestern.edu