Marketing And Media Trends


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Changing landscape of new age marketing

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Marketing And Media Trends

  1. 1. ObjectiveRevolutionary impact of digital technology and how is it adapted by consumers and marketersHow has this changed consumers and marketersTrends in Media
  2. 2. Impact of Digital technology on Education ande-learning Opened‐up learning to multiple delivery methods - in‐campus, distance learning ,e‐Learning and m-learning iPhone and iPad stamps their marks on the education sector e-Books enter mainstream and students start embracing
  3. 3. Impact of Digital technology on Politics and Finance Perfected online fundraising by using social media Embedded hardware & service solutions in thetools finance sector Changed political fundraising & electioneering forever  Enabled investors an ability to crunch, analysis &Raised $45 million online store data  Lifeline for mutual & hedge funds, insurance brokers, banks & finance institutionsU.S. President: Barak Obama Mayor : Michael Bloomberg
  4. 4. Impact of Digital technology on Music and Social EngagementSalvaged the music business from declining CD‟s sales Super‐sized dating possibilities at Harvard Introduced iPod music player, iTunes digital music Universitysoftware, the iTunes Store and iPad  Transitioned into a global social media phenomenon  Delivered platform to connect and expand friend/biz contactsApple CEO Steve Jobs Facebook: Mark Zuckerberg
  5. 5. Impact of Digital technology on Video and Information SearchRevolutionized the video‐ sharing business Turned 1 followed by 100 zeros into cash cowIgnited a cadre of citizen video producers worldwide (Googol) Monetized the Internet by linking advertising to search  Owns # one search engine, online mapping, Gmail et aliaYouTube: Chad Hurley, Steve Chen & Jawed Karim Google: Sergey Brin and Larry Page
  6. 6. Plus ηa change, plus cest la mκme chose.In times of great change it is important to reflectupon what has changed and what remainsunchanged
  7. 7. The New Age Marketing “It‟s the economy stupid” James Carville ,1992 “It‟s a people driven economy stupid” Erik Qualman, 2009
  8. 8. What has changed ?Production ConsumptionTechnology Information search ,compare & select productsDistribution Consume and share experiences Who has triggered this change ? ConsumersFour Ps of MarketingTraditional Media Digital Media ( SN/Search, DTH/Mobile etc)Product, PricePlace and Promotion Shift in consumer control
  9. 9. Pre-Digital
  10. 10. Approach Pre digital Creative was driving force with thought process  to build beautiful creative design that gets Creative Driven people‟s attention People  and then get people enabled to meet objectives Enabled
  11. 11. Consumer
  12. 12. Create and Distribute Media handed down from on high… …. along with its general tone and attitude
  13. 13. Consumption Media was only consumed at set schedule and place
  14. 14. Marketing Touch Points- Finite The way we interact with companies and brands were limited to analog only. In person, phone and in-bank branch were primary ways the customer touched the brand or company‟s service Consumer checks and references was among peer group, relatives, sales representatives and catalogues
  15. 15. Digital
  16. 16. Marketing is going Digital
  17. 17. Transformative shifts in Marketing Phase1 – Music goes digital from LP to CD. Phase2 – Challenge for marketer as distribution becomes free World of music doesn‟t change much same model of conceptualization, creation and distribution Phase1 – Books goes digital from Britannica to CD. World of Phase2 – Content becomes decentralized that changes Books doesn‟t change much centralized concept of Britannica Phase1 – From centralized, outbound not differentiated Phase2 – Currency of marketers ( Information) goes digital campaigns using traditional media to centralized, not highly and is freely available differentiated outbound campaign using e-mail and landing pages
  18. 18. What is really happening ?Information becomes freeProspects access information onlineSales is no longer information conduitSales is not able to read body languagesThe challenge of reading and understanding digital bodylanguage of buyer falls on marketing
  19. 19. Approach Digital Focus is on performance with thought process Performance  can we measure the initiative ? Driven  what technologies do we need to support Technology Enabled that initiative ?  what strategies will we need to meet our strategic objectives ?  now let‟s build the creative Creative has now become the fourth step in the new marketing approach thought process
  20. 20. Consumer
  21. 21. Create and Distribute
  22. 22. Single Source and complete consumer control Blogging“Since the first computer in 1965, what used to fit in a building now fits in your pocket, what fits inyour pocket now will fit inside a blood cell in 25 years” Ray Kurzweil
  23. 23. Consumption happens anytime, anywhere The line between digital and analog encounters blur all together The volume of “social touch points” reaches critical mass. “ been there, done that” experience sharing common on CGM. Fragmentation becomes the norm Marketing recognizes and differentiates between “ yet another talk channel” versus the desire to “enable social participation” Blending interactive and social to produce digital applications that connect people and get them talking It‟s easier than ever to reach a large audience, but harder than ever to really connect with it With infinite customer choice of media, marketers are competing to make those connections.
  24. 24. Years to reach 50 million users 38 Years 13 Years 4 Years 3 Years 9 Months
  25. 25. This and That New use of media Traditional Traditional place place of media Traditional of media place New use Traditional place of New use of media of media Traditional Traditional of media Media in everyday life in everyday life place place Traditional of media of media place of media New use New use of media Traditional of media It is not Traditional place Traditional Traditional Like this place of media place place of media of media of media 2008 2009 2008 2009 2010 2010 New Media has not replaced traditional media but has instead joined them
  26. 26. Turning the cornersIncreased use of existing data and predictive models to make marketing decisions Increasingly merging of offline and online marketing strategies Interactive to social applications Increased collaboration Listen Participate CollaborateFocus shifting to Insights : Enable interested people to find your brand Better understanding of consumer preferences Increase consumer engagement Become an Industry thought leader
  27. 27. 1The Buyer has changed; Marketers will tooInteractivity and control in hands of consumer Volvo ran a homepage on Youtube that had a Twitter feed embedded in the ad. UnitNetworked and mobile consumer Using technology to create, share and distribute informationConscious consumer Demands authenticity and transparency BP oil spill Ecopolitan houses/office and Green products ( car & appliances) SBI Green Channel
  28. 28. The Buyer has changed; Marketers will too“ Tell – and- sell marketing” (No linear process of one way communication with consumers)to “Discuss with” ( Marketers and advertisers need to work with consumers)Producing communication with a brand message to producing Consumer value
  29. 29. The Buyer has changed; Marketers will tootransition from being seller to collaborator, advertiser to experience creatormarketers are increasingly using process of working together with customers to create value in marketingexchange P&G advisors program to collaborate with customers in developing new product offeringsmedia increasingly becoming more personalized and participatory. BBC program missed can be watched on BBC I-Player “We are five years away from fully individualized drag and drop TV & Radio stations” Mark Thompson ( Chairman of BBC) Serve customers how they want to be served
  30. 30. The Buyer has changed ;Marketers will too - Interacting with the new consumer Campaign ManagementSales and Marketing Alignment  Use digital body language to understand Use digital body language to understand who is buyersready to buy Deliver the right message to the right person atConnect sales with those who are, nurture the right timethose who aren‟t Use automation to respond to his/her time frame not ours Data ManagementMarketing Analysis  Model the phases of buying process Use the digital body language to understand Use the digital body language to see when thecampaign influence buyer is at what phaseUnderstand the phases of buying process Keep data clean and consistent
  31. 31. 2 The Importance of When the popularity of Twitter has helped marketers to focus on one element of media - the importance of WHEN real time communication is beginning to happen on many more platforms than just Twitter through tools like status updates on Facebook and LinkedIn and mobile messaging  auto companies like GM & Toyota are partnering with ( online automobile information provider) to create contextual messages that are triggered by customer activity and facilitate customer decision making. Replacing „Just-in-case‟ with „Just-in-time‟ communication reaching audiences anytime, anywhere ,on any device will drive engagement and conversion  many adverts already carry URLs, in the future we will see ads linking to desktop widgets etc.  2D bar codes ( QR codes) –
  32. 32. 3 Communicating with multiple stakeholders  Changing notion of one stakeholder- Consumer. Other non-commercial stakeholders have become important especially with the emergence of social media.  Who are these stakeholders and what are there motivations ? Who Why Consumer To Inform, Purchase and spread Loyalty Reporters Accelerate Research, Fact –finding Analysts Offers scoop/Insight‟s Competitors Intelligence gathering Regulators Vocal consumers provide indicators into future problems Helps reinforce or solidify a key position Activists Increasingly marketing strategies are designed taking cognizance of not just consumers but also these external stakeholders eg Royal Caribbean Cruz … Haiti Passengers took to an Internet message board to protest the idea of vacationing where "tens of thousands of dead people are being piled up on the streets
  33. 33. 3Communicating with multiple stakeholdersScan current state:  Analyzing the top 10 sites/ forums that discuss brand/ competition  What information is sought  Do customers speak highly about the brand or not  Is sentiments positive or negative  Which discussion board or website are sought out for authority by analyst who cover category  What issues are most likely to prompt consumers to spread information to others Decide  Which issues deserve the most attention from you  How can CGM be used to promote/ minimize negative message damage in social spaceIt‟s not the size of brand megaphone that matters any more; it‟s the size of consumer megaphones that is becoming important
  34. 34. 4 Interactive to Social  They are talking to each other before they are taking to the brand  Social networking and exchange of information outside the brand space is increasing  More than 1.5 million pieces of content ( weblinks, news stories, blog post, photos etc) are shared on Facebook daily  Twitter averages 50 million tweets per day with 2-3 twitter accounts activated every second  Twitter is a vast –self answering community. Increasingly people go on twitter to ask questions and get answers  marketers are “growing more ears”  Dell approach to Twitter: “We don‟t have a choice on whether we do social media, the question is how well we do it” Erik Qualman
  35. 35. 5 RAM - connecting with consumers Media Relevance Automation
  36. 36. RelevanceFundamentally altering consumer mindsets, rapidly shifting consumer preferences and transformed consumerspending habits ,makes it inevitable for us to remain relevant  The right relevance( right message, at the right time to the right person) and the right response factor ( right segmentation, demographics, psychographics, lifestyle) is gaining importance  3D consumer classification ( Attitude, experience and interest) replaces only demographic /psychographic classifications  Not just showing ads when a consumer is actively searching , but rather using what they are searching for to understand what is relevant to them, advertising is getting closer to information Consistent message no matter the medium, should be relevant and resonates with consumers Segmenting financial consumer
  37. 37. Financial Consumer segmentation Ignore advisors Rely on advisors Self-Directed The Validators 23% of the audience 40% of the audience 45-55 years 35-45 years Gather SEC A, A1 SEC A1-, B Information Metros & Mini Metros Smaller Towns Don’t Gather The Avoiders The DelegatorsInformation 17% of the audience 21% of the audience 25-35 years 25-45 years SEC A2, Sec B SEC A Smaller Towns, Mini Metros Metros, Mini Metros 38 Source: 3D 2007
  38. 38. Attitude ,Value and Needs Self-Directed “I Have Confidence in Me” The Validator Wants to take control , “Money, money, money” be it in terms of security and Wants to stretch the rupee to the finances. maximum Value: Information, speed and Value: Information, advice, trusted control. relationship. Needs : High need of Needs: High need of Information. empowerment. Needs control Will need personalized service in all channels The Delegator The Avoider “Be there & take care of me” “Trust no one” Looks for someone who‟ll be Mistrusts advisors, does not want available at all times, offers great in your face service service Value: Safe investments that are Value: Advice, good service and a simple and hassle free trusted relationship Needs: Simplicity Needs :High need for relationship Source: 3D 2007
  39. 39. Financial Behavior Self-Directed The Validator • Takes financial decisions by Interested in finances himself Seeks advice on complex Selects best products and price decision Thinks he can outsmart the  Believes he is good at managing market and make money when he money wants  Is happy with his current Does his research before standard of living investing, gathers information to  Invests in stocks, shares and aid him mutual funds The Avoider The Delegator Tends to spend money without Tends toDelegator does The spend money but thinking not like the spend money in debt • Tends to idea of being but does  Is risk averse Prefers to have someone in debt not like the idea of being more  Distrust financial advisors  Prefers to have someone more knowledgeable help with decision  Believes it is too early to start •knowledgeable saverwith decision Wants to be a help and a planning for the future planner •not actively gather gather  Does Does not actively  Does not gather information information information Source: 3D 2007
  40. 40. Research Decisions Self-Directed The Validator •Agents, Sales representatives, • Financial company website, Broker/ financial advisor, Online reviews, research, price / Advertising, Financial company product comparison on websites, website, Online Reviews, Newspapers & Magazines Research, Price /Product comparison on websites, Newspapers & Magazines The Delegator Tends toDelegator does The spend money but The Avoider not like the idea of being in debt • • Agents, Sales representatives, Advertising, Newspapers and Prefers to have someone more Broker/ financial advisor, Magazines, Friends and family knowledgeable help with decision WOM/Friends/Family, Advertising • Wants to be a saver and a planner • Does not actively gather information Source: 3D 2007
  41. 41. Financial Consumer segmentation Ignore advisors Rely on advisors NEED VALIDATION New Users ( How we get them to play) Brand Switchers SELF DIRECTED Gather What will make them try RBS? What will make them switch brand ? Information How can we address this through How can we address this through marketing marketing? New Users ( How we get them to play) Brand Switchers PLANNING DELEGATE FINANCIAL LOW TRUST Don’t Gather What will make them switch brand ? How can we build trust with them ?Information How can we address this through How can we address this through marketing? marketing? 42
  42. 42. Applying Segmentation : Self –directed consumers I Have Confidence in Me…They want to take control of their own , be it in terms of security or finances.Consumer satisfaction :Product and operational focusMarketing Opportunity:Empower him to participate through feedback and dialogue in the process of product enhancementand correction. Help them to be in control of their access to products and servicesMedia ImplicationsProvide him with information ( Newspapers & Online ) DM/ EDM, will look for online reviews, challengingand engaging online/ on-air evolved financial games Provide him information /investment alerts on mobile/mail, DM/EDM, editorial content ( reviews/ratings/analysis) will be critical
  43. 43. Applying Segmentation: Validator Money, Money, Money…..They continue to focus on pruning unnecessary expenses and shop with a list. They are spread acrossincome classes and try to stretch their rupee farther.Consumer satisfactionHuman and product focusMarketing Opportunity:Up-front the value a brand offers to him. Help him feel smart about getting better bargains throughinnovative schemes and promotions. Enhance the aspirational value of brands so he feels better aboutinvesting with youMedia ImplicationsWill look for information – read more of newspapers ads, online, company reports , compare productfeatures. High standards and high expectations from Advisors. Will source information. Provide him withaccount alerts , industry analysis etc
  44. 44. Applying Segmentation :Delegators I‟d do anything for you, dear….They buy more face-to face.They require service and look for trusted relationship with financial advisorsConsumer satisfactionHuman and operational focusedMarketing OpportunityUse the closer relationship to build differentiationMedia ImplicationsWill not actively source information. Important to establish trust and relationship with them.Need Personalized Service.
  45. 45. Applying Segmentation : Avoiders. Fear, lack of Knowledge, distrust financial advisors, risk averse…High degree of distrust. They need simplicity ,handholding and constant reassuranceConsumer satisfactionProduct (simple solutions)Marketing Opportunity:Handhold with simple solutions to make them feel safeMedia ImplicationsInvestment handbooks, engaging financial online games, Establishing trust
  46. 46. Automation Integrating all the marketing tools deployed into one unified system  All forms of marketing and lead generation  Increased need of marketing to understand Who is Where, WhenJoining all marketing initiatives into one tool to create integrated programs and matrix formeasurement, to improve overall ROI and workflowThe focus shifting from the number of leads created to quality of leads passed to sales
  47. 47. Media Instill Consumer Social Confidence CGM Interactive Building brand strength & Collaborative Marketing and Communication Visibility/ Presence Awareness ( Mass Media/ Search)Can the strategies be integrated across media ? Can we close the loop on sales ?Can we tie it back to sales, so that performance can be measured ?Instead of tactical „new media‟ executions, marketers focusing on understandingconsumer motivations which in turn form basis of strategic media ideas
  48. 48. 5 Applying Framework Ads, Banners Advertising, DM, Interaction and Sales visits Website/ Videos, Games EDM,PR, Engagement Widgets, Call One to one Viral Organic and Paid activities, SN, center, Applications Search, Rating Blogs sites, Forums Entertain Inform Connect Assist Convert
  49. 49. Five Emerging Technologies Apple’s Tablet Cloud Computing Online TVAugmented Reality Mobile Transaction (Mobile Banking)
  50. 50. Media Inflation
  51. 51. 2009: A slowdown year, however ended inflationary25%20%15%10% IPL, Increased cricket days Inventory full, 5% Monopolistic Contrib uted to print markets Inflation Fragmentation 0% Financial, real- 2007 2008 2009 Pulled estate, retail- down-5% rates Slow down 3-4 months in the initial year-10% was bad TV Print Radio Cinema Outdoor Internet
  52. 52. Initial projections 9-12% inflation for 2010 2009 2010 % Medium % Disp Inflation Disp Inflation TV 39 6 40 12 Print 47 7 45 9 Radio 4 8 5 5 Cinema 0 -4 1 4 Outdoor 5 0 6 8 Internet 3 10 4 8 Overall 6.3 9.9 Source : GroupM Magna Global Inflation Update: Media Price Inflation Expectation - 2010 BRIC TV Internet Newspaper Magazine Radio Cinema Outdoor Total China 31 25 8 10 16 10 8 20 Brazil 10 4 15 10 6 6 9 India 10 12 10 5 2 3 9 Russia 5 15 8 8 5 10 7 Source : Universal Lodestar
  53. 53. Media Trends in 2010
  54. 54. 1E v o l v i n g B u o y a n t T h r i v i n g1 5 % g r o w t h
  55. 55. The largest consumer base influences media &consumption Products segmented ; specific media choices
  56. 56. 2N e w a d v e r t i s e r s r u l e m e d i aD e m a n d > S u p p l y
  57. 57. 32 n d l a r g e s t m a r k e t Television 60% Satellite TV 50% Digital TV 10% Print 44% Online 1% Radio 23% Cinema 5%B u t y e t u n d e r p e n e t r a t e d
  58. 58. Rural India & some geographies remain mediaelusive Print Reach Total TV Reach U : 56%, R : 30% U : 79%, R : 44% Radio Reach Cable &Satellite Reach U : 24%, R : 21% U : 52%, R : 14% Internet Reach Cinema Reach U : 5%, R :0.3% U : 7%, R: 2% Pop. = U : 256 Mn, R : 567 Mn
  59. 59. 4Te c h n o l o g y overcoming infrastructural issues20mn DTH homes, 14mn in rural India, 28% growth
  60. 60. 5D i g i t a l b o o m , y e t u n d e r u t i l i s e d525mn mobile users, 71mn net users, 13mn facebookInternet consumption had gone up by 70%, from 9.2 hours a week in 2008 to 15.7 hours/ week in 2009Next phase of growth is expected from vernacular content.
  61. 61. 65 4 % o f I n d i a i s u n d e r t h e a g e o f 2 5N e w f o r m a t s N e w m e d i a M y m e d i aThe traditional media reach is stagnatingYouth consume( multi-media taskers), communicate( IM, SMS,Chat) and create media( Blog, Video & Photosharing) at the same time Cost of reaching & engaging with youth is higher than women/men by 150%
  62. 62. Changing audiences shaping content Housewives, Older Slow in evolution, follow set tradition Influenced by neighbors, relatives, friends Excitement is in the form of story linked to characters SoapsMetro based Youth/Kids 10+ Clinging Strong loyalty to programWestern Generation 64%Tough to keep pace withNew content ideas constantlyReality & interactive shows Quick to adopt new format Easy loyalty breakers Television14% Content Youth/CWE Instant gratification Surfers Excitement is in the packaging, Trendy Impatient star presence Generation Generation Sports, Movies, News Loyalty not easy to set 22%
  63. 63. 7G r o w i n g h o m o g e n e i t yG r o w i n g h e t e r o g e n e i t y
  64. 64. Diversity in population creating innumerablemedia vehicles Over 450+ TV Channels 78223 Publications 6826 Newspapers, 71397 Magazines 366 Radio stations 120 Private FM stations Claimed Users: 52 mn12900+ Cinemas; 73 Active Users: 32 mnmultiplexes with 279 screens
  65. 65. 8L i t e r a c y s p u r s p r i n t b o o m10% growth, revenues $2bn, >12 major launches p.a
  66. 66. 9M o d e r n t r a d e 3 0 % b y 2 0 1 2R e t a i l t h e m o s t i m p o r t a n t m e d i a
  67. 67. 10E x p l o d i n g T V, R a d i o s t a t i o n s , p u b l i c a t i o n s , w e b s i t e s e t c .Fragmented attention for already pressurized consumers
  68. 68. Time Spent on media 112 108 4 Minutes Minutes/day Minutes/day 82 81 Minutes/day 36 Minutes/day 27 Minutes/day Minutes/day 1 Minutes 9 Minutes 10 82 10 Visits/year 63 Minutes/day Visits/year Minutes/day Visits 20 Minutes Source: IRS TG: Males 15+ Sec AB
  69. 69. Audience evolving from finite tointerconnected touch points Opportunity for brands to CONNECT with consumers on multiple touch points