The document discusses emerging marketing trends, including: 1) The rise of social media and how it is changing customer expectations and behaviors. Word-of-mouth marketing through social networks and user-generated content is becoming more important. 2) Traditional mass marketing is in crisis as people are overwhelmed by advertising and more able to avoid it through technologies like DVR. 3) New marketing paradigms are emerging that are more decentralized and focus on collaborative innovation, transparency, and finding influencers to spread ideas virally. Marketing must reflect new social paradigms and behaviors.

1. Marketing Trends June 7, 2007 http://bloggideas.blogspot.com/

2. Marketing “… identifying and meeting human and social needs.” Philip Kotler

3. Agenda Myths Trends Paradigms

4. Driver The Internet The Internet continues to be the key driving force behind marketing innovation 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. Marketing Myths The same marketing techniques work every time You need a multimillion budget to create a commercial Marketing is all about advertising Marketing is simply an operational expense A perfectly executed marketing plan will guarantee success Marketing’s goal is to increase sales Marketing starts when you’re ready to launch Marketing is a function. “Marketing owns it” Innovation comes from inside Never give the product / service away You must position and identify with an industry & competition Target the broadest customer segment

6. Crisis In Mass Marketing 18%: Proportion of TV advertising campaigns generating positive ROI 54 cents: Average return in sales for every $1 spent on advertising 256%: The increase in TV advertising costs (CPM) in the past decade 84%: Proportion of B2B marketing campaigns resulting in falling sales 100%: The increase needed in advertising spend to add 1-2% in sales 14%: Proportion of people who trust advertising information 90%: Proportion of people who can skip TV ads who do skip TV ads 80%: Market share of video recorders with ad skipping technology in 2008 95%: The failure rate for new product introductions 117: The number of prime time TV spots in 2002 needed to reach 80% of adult population – up from just 3 in 1965 3000: Number of advertising messages people are exposed to per day 56%: Proportion of people who avoid buying products from companies who they think advertise too much 65%: Proportion of people who believe that they are constantly bombarded with too much advertising 69%: Proportion of people interested in technology or devices that enable them to skip or block advertising Source: Justin Kirby & Paul Marsden (2006). Connected marketing . Oxford, UK: Butterworth-Heinemann. xix

7. Status of Marketing Management “ 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.” Source: The Decline and Dispersion of Marketing Competence. 2006 MIT Sloan Management Review

8. Green Grey Karma Capitalism Transparency Authenticity Democratized advertising WOMM Controversy Market space Social media Trusted social media advertising Online paid search ads Trends

9. Out Traditional advertising Monologue Market place Classical 4Ps paradigm

10. 70+ Million Weblogs March 07 March 03 Source:http://www.sifry.com/alerts/archives/000493.html

11. Websites WW Netcraft November 2006 survey In May 2007, the number reported was a little over 118 million worldwide

12. Source:http://www.sifry.com/alerts/archives/000493.html

13. Posts By Language Source:http://www.sifry.com/alerts/archives/000493.html #1 Japanese #2 English #3 Chinese

14. Global Online Population Currently about 1.2 billion Projected to grow to 1.8 billion by 2010

17. Summary 70 million weblogs About 120,000 new weblogs each day, or... 1.4 new blogs every second 3000-7000 new splogs (fake, or spam blogs) created every day Peak of 11,000 splogs per day last December 1.5 million posts per day, or... 17 posts per second Growing from 35 to 75 million blogs took 320 days 22 blogs among the top 100 blogs among the top 100 sources linked to in Q4 2006 - up from 12 in the prior quarter Japanese the #1 blogging language at 37% English second at 33% Chinese third at 8% Italian fourth at 3% Farsi a newcomer in the top 10 at 1% English the most even in postings around-the-clock Tracking 230 million posts with tags or categories 35% of all February 2007 posts used tags 2.5 million blogs posted at least one tagged post in February Source: Technorati March 2007. http://www.sifry.com/alerts/archives/000493.html

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

19. Word of Mouth Marketing WOMM: Umbrella term Buzz marketing Special hook, event, promotion. Aqua Teen Hunger Force Boston Bomb Scare Viral marketing Branded material, websites, widgets, bligets, videos, utilities, collaboration tools etc. that sneezers spread. ParkRidge47, Vote Different Influencer marketing Identifying and finding the influencers Evangelist marketing Turning most loyal customers into citizen marketers Street marketing Interacting at popular offline places like Buzz Oven Stealth / Undercover marketing Bree, lonelyGirl15 Source: Justin Kirby, & Paul Marsden (2006). Connected marketing . Oxford, UK: Butterworth-Heinemann. 198 YouTube Aqua Teen Buzz Oven Bree

20. Widget Marketing Cool plug-n-play things for your sidebar

21. Mashup Example of Google Maps mashup on MySpace account.

22. U.S. Online Ad $16.9 billion market in 2006 5.9% of the $285 billion total U.S. advertising market in 2006 Notable M&A activity Google bought DoubleClick for $3.1 billion in 4/07 Microsoft bought aQuantive for $6 billion 5/07 WPP Group bought 24/7 Real Media for $649 million 5/07 Source: Wall Street Journal, May 25, 2007, pg. B1

23. U.S. Online Ad Spending Source: Wall Street Journal, May 25, 2007, pg. B1

24. New Paradigm Sell your idea first Find your actors (audience) first Size does not matter - PlentyOfFish Reduce risk by pushing control out Value creation increases at the edge Decentralize authority, process, and IP Transparency creates value Truth travels fast Price alone is not sustainable Reengineer your value chain Skip intermediaries wherever possible Reinvent your business models Change the status quo

25. New Paradigm Democratization of 4Ps paradigm Citizen branding Collective collaboration Collective risk sharing Collective product innovation Collective IP ownership Citizen marketers will sell “remarkable” ideas Innovators should adopt the 1% rule If you don’t find the “sneezers” or connectors, the 80/20% rule won’t matter Work backwards 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 Create your own “blue ocean” If you play it safe and go by the rules of your industry, value chain, and business model – you’re dead! Most industries and markets are saturated and highly concentrated.

26. Old 4Ps Paradigm 4Ps Value Creator Customer

27. New Paradigm 4Ps Value Innovator Customer Product Brand

28. New Value Innovation Paradigm Source: Mohanbir Sawhney, & Deval Prikh (2001). Where value lives in a networked world. Harvard Business Review , HBR #R0101E.

29. It’s About Social Behavior It’s not about a cheaper product or your idea. Try to change customer behavior. It’s not about better coffee – it’s about the place I am not looking for a ¼” drill bit – I need to make a hole It’s not about the hog, it’s about a lifestyle It’s not about the sound – it’s about how it makes me feel It’s not about the sound – it’s about being hip It’s about my space It’s about my video It’s about my opinion It’s about the experience It’s about your choices, places, and time Examples Apple, Starbucks, JetBlue, MySpace, Harley-Davidson, Tivo, Stew Leonard’s, Threadless

30. Implications Reached the tipping point The static web maturing Monologue marketing out Live Web (a/k/a Blogosphere) is making information transparent Word travels fast People are more likely to act on a peer’s recommendation by factor X Marketing is a reflection of social paradigms The new social media and networks changing customer expectation and behavior

31. Napa Consulting Group Marketing & strategic planning Helping clients adapt emerging e-business models and social media in pursuit of value innovation. http://gotastrategy.typepad.com PRAMOTED BY: http://bloggideas.blogspot.com