Objectives: Discuss how digital and social communities are changing marketing How to be competitive in the Digital and Social marketing environments Using segmentation and personalization to improve consumer connection and relevance The mobile explosion How to be a digital expert
1 FIRST: UNDERSTAND HOW DIGITAL HAS CHANGED MARKETING & ADVERTISING
Wow..That’s Really Old 1979 - Apple II Introduced by Steve Job’s & Wosniack 1981 - IBM introduces it’s first PC 1983 - First Compaq “PORTABLE”
The Old Approach to Marketing & Advertising • Marketing 1.0 was very linear and had well defined phases from brand awareness to loyalty. Engagement & Conversion Awareness& Acquisition Consumer Relationship & Loyalty Marketing The Marketing Funnel Traditional Print, TV, PR and Radio Ads FSCIs, Circulars, POS, Catalogs and Call Centers Direct Mail, email, Frequent Shopper Cards
Traditional CPG Brand Economics Marketing investments and programs were simple and narrowly defined % of Net Income % of Marketing Spend
Web 1.0 • Advances in digital technology changed the way people interact with and experience a brand (late 1990’s – early 2000’s) Engagement & Conversion Awareness& Acquisition Consumer Relationship & Loyalty Marketing “Top Down”Approach FSCIs, Circulars, POS, Catalogs and Call Centers Traditional Print, TV, PR and Radio Ads Direct Mail, email, Frequent Shopper Cards • Search (SEO/SEM) • Banner Ads • Email lists • Personalized DM • Desktop Widgets • Toolbars • Template-driven emails • Online Points Prgms • e-Commerce Sites • Microsites • Blogs • IM Bots Digitally Enabled
Digital Marketing Tactics Have Evolved • Very rapid evolution from static “One Size Fits All” to dynamic digital marketing tools starting around 2002 (post the first dot bomb period) Web 2.0 Web 1.0 Tactics: • Dynamic Web pages • Web services • Rich Internet Applications • Apps/Online Tools • Static web pages • Forums • News groups • html Web sites • Template, decision rule driven dynamic emails • Image rich/video embedded • Image-based static emails Email • Flat static banner ads • Rich media ads • Real Time Bidding Ad Banners • SEM keywords • Keyword Optimization • Attribution Models • Image search • Video in search Search
Consumers are becoming hyper-connected to digital content and to one another Web 3.0: Social Communities are the New Major Marketing Channel Community
Market Dynamic • Social Media and other interactive marketing channels are expected to show the greatest increase in marketing effectiveness over the next 3 years. Increasing effectiveness Increase Stay the same Decrease Social media 86% 11% 4% Search engine marketing 84% 13% 3% Mobile 83% 15% 2% Online video 83% 13% 4% Interactive Game marketing 78% 19% 3% Interactive display ads 73% 17% 11% Email 62% 23% 15% Static display ads 18% 41% 41% Direct mail 21% 37% 42% Radio 16% 49% 35% Outdoor 15% 59% 26% Traditional Magazines 11% 49% 40% Telemarketing 11% 37% 53% Yellow pages 8% 29% 64% 6% 33% Newspapers 61% Declining effectiveness (percentages may not total 100% because of rounding) Source: Forrester Research US Interactive Marketer Online Survey n=235 Marketers
2 SECOND: CONSUMERS EXPECTATIONS in a DIGITAL & SOCIAL ENVIRONMENT
PERSONALIZED, REAL TIME, TECHNOLOGY ENABLED, HELPFUL Domino’s pizza shows you the real-time status of your pizza, from order to delivery
HELPFUL, PERSONALIZED IKEA helps you design the interior of your home
ENTERTAINING? www.shaveeverywhere.com became the #1 seller in Personal Grooming category on Amazon.com for the first two months after campaign launch.
PERSONALIZED, HELPFUL AND PROFITABLE! Goal: Help BOTH the Consumer (save money) and the Brand (make money)
Personalized PERSONALIZED, REAL TIME, HELPFUL • Engaging • Real Time • Participatory • Useful
5 Ways To Be Competitive in Social Marketing • Today’s “social” consumers want to be part of communities that offer them content and connection with others.
Starting Off…How do we Define Social Media? • Social Media is simply the collection of online platforms that enable people to share opinions, insights, expressions and perspectives • Traditional “Audience” is one-way, “Conversation” is two-way and “Community” is multi-way • Increasingly seeing brand–specific social sites and platforms Podcasts Social networks Publishing platforms Mobile Applications Online chat and message boards Content networks and distribution Virtual platforms Widgets RSS
SOCIALLY CONSCIOUS - Yoplait raised over $30 million for fight breast cancer
Rapid, Relevant and Socially Conscious Marketing REAL TIME • Within 48 hours of the Haiti earthquake the app was built and available
SOCIAL – CONTENT is KEY! The Obama campaign generated a massive stream of motivating, engaging content that they successfully distributed across email and social media platforms; YouTube, Twitter and Facebook and their own websites
PERSONALIZED, HELPFUL R/GA’s Nike + - One of the most successful branded utilities brings together an online tool and a running device that tracks your running performance
Consumers DIGITAL & SOCIAL Interactions are spilling into the REAL WORLD
NBC’s Fashion Star REAL TIME, PRODUCT DEVELOPMENT • Allows consumers to buy designs the same day as the show at Macy’s, H&M and Saks Fifth Avenue
Personalized REAL TIME, PRODUCT PERSONALIZATION TOOL www.mykleenextissue.com • Engaging • Real Time • Participatory • Useful ?
3 Third: Using segmentation and personalization to improve consumer connection and relevance
Segmentation – Types and Requirements Trading off complexity, scalability and effectiveness Consistency of Scalability (Ease Depth Defines drivers of Behavior of Identification, of category usage & Complexity in Segment Communication) Insights brand choice Behavioral Geo–Demographic Attitudinal Needs, Attitudes & Behaviors Low Very HighHigh LowLow Low LowHigh Low Low Med Low Low MedMed HighHigh Med HighHigh The ultimate goal is the most stable and insightful segmentation that can be effectively scaled to full implementation
Develop detailed understanding of the target segments to drive better personalization Objective
Actually more people disagree than agree Completely Disagree 30% 27% 1 2 3 4 5 6 7 11% Segment μ 4.14 appears to slightly agree 10% 8% Neutral 7% 7% 1 2 3 4 5 6 7 Completely Agree Discrimination – K-Means wasn’t developed for marketing Traditional Clustering Algorithms Are Not Well-Suited for Marketing Data • Categorical variables are the most reliable stimuli for capturing respondent data via surveys. • However, the popularly used K-Means approach was originally developed for use with continuous variables (such as temperature, air pressure, weight) in parametric data sets.
Primary Target Primary Target Secondary Target Non-Target Non-Target Agree Disagree 68% 4% 31% 7% 26% 15% 13% 15% 5% 51% Discrimination – Bipolar responses makes for good targets! Dimensions with good discrimination can yield deep, insights with strong differentiation across the segments. % Top/Bottom 2 Box of 7 “I can’t wait to buy the next generation of smart phone” Pilot Survey Full Survey (n=200) (n=1,600) Agree Disagree 27% 24% 5 26% 20% 12
Actionable – Wireless Category Involvement Segments exhibit major differences in Category Beliefs …. % Top 2 Box out of 7 Efficiency Optimizers Socializers DataCentrics Glove Compartment Long DistanceUsers Uninvolved %%%%%% Category Involvement/Uses I can't live without my cell phone 62% 67% 21% 19% 9% 18% My cell phone makes me more productive 83% 65% 21% 18% 8% 24% My cell phone helps me balance my business and personal life 77% 67% 11% 14% 8% 16% I use my cell phone to stay continually in touch with work 75% 22% 13% 7% 7% 14% The only reason I own a cell phone is for personal safety &security 16% 18% 26% 19% 57% 20%
4 Fourth: Mobile and iPad applications that extend the reach of brand marketing and interactions
The Mobile Explosion Consumer mobile device penetration increased 10x in the last two years -- Manhattan Research 2013 The year when the number of mobile internet users is expected to surpass the number of desktop internet users. --"Internet Trends," Morgan Stanley.
The Mobile Explosion “The access revolution is over! Mobile is changing us, changing our frame of reference so that we see information as portable, personalized and participatory.” -- Susannah Fox, ePatients.net
JuvédermTM Ultra • Mobile Application provides the same access/tools as website
JuvédermTM Consultation Tool The JuvédermTM iPad app helps Doctors sell treatments in the exam room • Personalized • Engaging • Real Time • Participatory • Useful
DYNAMIC AND MEASURABLE SALES TOOLS BMS leverages Cegedim Dendrite – whose SAAS platform now integrates a new Mobile Intelligence solution that fits it’s business processes while curbing costs.
Fully interactive, real time mobile application Click in Box to Play
5 FIFTH: BECOME A DIGITAL EXPERT
RESOURCES INDUSTRY BLOGS AGENCY BLOGS TRENDS SITES PODCASTS / VODCASTS YOUTUBE / FACEBOOK