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MIS553: Mobile Marketing Strategies

MIS553: Mobile Marketing Strategies

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MIS553: Mobile Marketing Strategies

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  1. THE MOBILE MARKETINGVALUE CHAIN Course Faculty: Mrs Yasmin MalikVenue: IBA City/Main Campus, KarachiCourse Start Date: Spring 2011 (Feb 1) MIS553: Mobile Marketing Strategies

  2. What is the Mobile Marketing Value Chain? There are 6 main links that make up the path that has to be crossed during the serving of a mobile ad to the end consumer Together these 6 links make up the Mobile Marketing/Advertising Value Chain Also known as the “Business-to-Technology Fit” view of mobile marketing Depending on whether you have designed the ad, are placing the ad, are delivering the ad etc. you must be clear as to where you are in the chain

  3. The Mobile Marketing Value Chain A view of the Business-to-Technology “Fit” Content & Technology Application Providers Handset OEM The Brand The Consumer Or Target Market Telecom operators and their infrastructure Creative Agency and/or Media Buyer/Seller Aggregator The most “contentious” element? Source: Adapted from Informa Telecoms & Media

  4. Link 1: The Brand An established brand (as compared to less well known ones) is mainly focused on maintaining brand value and building brand loyalty Do you know what a given brand’s “Brand Value” is? Brand Value = a measure of the financial performance of a given brand as scrutinized by markets and shareholders It includes a measure of the historical and future financial strength of the brand taking into account publicly listed financial data from stock exchanges and company financial reports Usually quoted in US $ and ranked yearly according to value by brand consultancy firms such as Interbrand, Brand Finance etc. as well as leading business magazines such as Business Week/Newsweek Building brand value and brand loyalty can be done very effectively with mobile marketing Many international car manufacturers such as BMW have made a good entrance into a good number of mobile marketing projects Other include Starbucks which have made use of mobile marketing coupons/barcodes used in a Mexico based customer loyalty campaign

  5. Link 2: The Creative Agency/Media Aggregator The Creative Agency will usually design and oversee the layout and features of the ad although not necessarily in-house The Agency can be a specialized mobile marketing agency or a mainstream media creative agency A Media Aggregator (aka the Media Agency) has links with different media entities including TV, print, radio, Internet and mobile channels (including telecom operators) for the buying and selling of ad space on various media In some cases, a company can be both a creative agency and a media aggregator depending on its marketing position and the demands/terms of the campaign

  6. Link 3: Content/Technology Application Provider In countries such as the US and UK where mobile marketing is a more established marketing media, this link has carved a very definitive place for itself Its strength lies in volume and diversity of applications/content Example of volumes: In Sept 2009, Apple announced that 85,000 applications had been developed for their App Store by over 125,000 developers Blackberry, Android, Nokia and Microsoft (as of Feb 2011) all have app stores that deliver mobile applications for RIM OS, Android OS and Windows 7&8 Conversely, this link is very weak in the Pakistan environment due to the small number of companies that fall in this area and the relatively small number of apps/content made available in the market Can you name some of them….? (Vectracom, Rockville, ARPU+ and AKN Mtech/M3 Technologies) Companies in this link can provide a platform for mobile marketing (e.g. Admob), applications for mobile phones, design and deliver mobile banner ads, or design and deliver mobile portals/websites Some of the content/technology providers have very strong links with the telecom operators in their local or international environment

  7. Link 3: Local Content/Technology Application Providers Essentially a digital marketing company covering Internet and social media but also the mobile platform They source content from e.g. HungamaMobile, IndiaFM Significantly, they also create local content for Internet and mobile SMS/IVR campaigns include: Lux Bodywash, Sunsilk Other significant mobile marketing campaigns: Text “SURF” to short code to win credit balance (over 1.6 million participants) Text to short code on Cornetto wrapper to enter competition to record a song with Jal the band SMS riddles with Lipton to win credit balance which multiplies if passed on to “friends” Jazz Bananas is “Pakistan's first ever operator powered mobile app store that offers thousands of free and paid apps along with other content for Symbian, Java and Android operating systems.” Service is exclusively for Jazz, Jazba and Indigo customers Ref: Aurora article on Jazz Bananas With Jazz Bananas, you get: instant access to thousands of your favorite games social networking download your favorite music get on-the-go news from around the world weather updates sports news & travel info

  8. Link 4: OEM In the West, OEMs (Original Equipment Manufacturers) play a very significant role in the telecom industry and associated telecom/mobile delivery platform For example, many mobile connections/contracts cannot be acquired unless you also select an associated handset “Handset-to-Network” exclusive deals such as the iPhone may or may not hamper a mobile marketing campaign In many instances, “The Brand” may be Nokia, Apple, Blackberry, Samsung or HTC OEMs may place mobile ads for their own brand or control the type and number of ads that are placed on their handsets Example: In April 2010 Apple announced the launch of “iAd” which is a mobile advertising platform to allow the iPhone to run ads on applications made by third parties Similarly, now that Google owns Admob this opens up immense opportunity and devices for the placement of mobile ads on Android handsets such as the Droid and the HTC If this is not the case, the OEM may still exercise its muscle by being the handset of choice for targeted mobile ads either in banner form or other form Do not lose sight of the fact that coupled with the handset, the OS (Operating System) is equally important (see Worldwide OS Impact Chart iCrossing)

  9. Impact on Mobile Marketing: Devices & Metrics OS Share Source:

  10. Link 4: OEM – The Local Scenario... What is the correlation to Pakistan’s handset market? What are the recent changes that have taken place in our local market re Operator-OEM partnerships….? New launch campaigns that incorporate OEM/mobile connection include: Ufone launched the Nokia N8 Exclusive points of sale for the N8 for first 6 months Mobile internet data bundles for 6 months Mobilink launches HTC with Windows Mobile 7 + HTC Radar First Windows 7 phone in the Pakistan market – similarities to Mobilink’s introduction of the Blackberry range....? 3 months free GPRS (mobile internet) Zong introduces IDEOS with Android Target market....? 8MB free GPRS access/month for first 6 month IMPACT ON VALUE CHAIN.....??

  11. Link 4: OEM – Local Consumer Preferences Imports of mobile phones rose 76% from 2009 to 2010 and were recorded at Rs. 26 billion approx (Source: Federal Bureau of Statistics) Handset imports for approx Rs. 45 billion for 2010-2010 (Source: Federal Bureau of Statistics) In 2010: Nokia leads the market with 500,000 units/month imported (Source: Karachi Electronics Dealers Association) despite headway made by other brands such as Samsung, LG, HTC and Q-mobile (Chinese brand) Q-mobile and other Chinese handsets: 100,000 units/month imported Samsung handsets: 100,000 units/month imported LG: 50,000 units/month imported Informal survey of Karachi’s Saddar mobile market (Source: Express Tribune, Feb 18, 2011) shows that: 56% of mobiles sold here are Nokia handsets 29% are Chinese Samsung handsets account for approx 11% AGAIN: IMPACT ON VALUE CHAIN.....??

  12. Link 5: The Telecom Operator/Infrastructure I believe this is the most “contentious” link!! As operators provide the physical network through which mobile ads can be both served and viewed, the dynamics of the Value Chain often centers around this link Operators can hold three main positions in the mobile multimedia market: Bit-pipe approach: focus on providing access only – this is their home turf Enabler/smart-pipe approach: an intermediate position providing access plus wholesale services to 3rd party players who wish to sell mobile multi media services Integrated/full fledged competitor: the other extreme in order to try and compete on the services and content fronts (in addition to access) Which is the best approach? .....We have seen a glimpse of this in the “Local Telco as Media Company” Example and we will look at these three main positions in more detail later on in the course...

  13. LOCAL TELCO AS A “MEDIA COMPANY” Publisher Property Provider Carrier 1. Customer base access 2. Leads 3. Profiling capability 4. Tracking Info 1. Person to Person 2. Alerts 3. Bulk Messages 4. Info Services (news, music, sports) 5. 3rd Party Services SMS – Short Message Service MMS – Multimedia Message Service IVR – Interactive Voice Response USSD – Unstructured Service Supplementary Data

  14. Link 6: The Consumer/Target Audience This certainly should not be a case of a “blind SMS” campaign in huge numbers without any idea of who will be receiving your ad – care should be taken to avoid a “spam” campaign In mobile marketing, the consumer should never be seen as part of a “numbers” campaign/game “Opt-in” campaigns are much better as they help you to build up a good database of participants and can help in profiling them for future, more targeted mobile marketing campaigns At times, targeting will need to be very specific Working together with companies that can provide demographic and psychographic data is in many case advantageous if not essential It is essential to not only target the consumer but also to track the consumer

  15. All 6 Links It is important to realize that in a practical working environment, you may represent any of the 6 links that we have discussed in the Value Chain Mobile marketing should hence not be viewed as an exercise that is undertaken purely by “marketing agencies” At any given time, market forces will impact and change the dynamics of the Value Chain Your mobile marketing strategies – whether they are marketing or technology based – must be adapted accordingly The success or failure of your strategy is dependent on how you interpret the dynamics of the Value Chain DON’T LOSE SIGHT OF IT!!