COMP113Web 2.0 and Online Communities

introduction to marketing for web 2.0 projects

Phil Osborne2010

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what is marketing?as old as business itself

misunderstoodmarketers reputation as bad as politicians, lawyers, used car salesman

marketing as sellingmost people perceive marketing as promotion

advertisements, sales promotions

convincing people to consume / purchase things they don’t need

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beyond selling things

marketer as agent for the firm

marketer as agent for the customer

good marketing decreases the need for promotioncustomers as advocatesword of mouth and word of mouse

ultimate aim is to understand the market (particularly customers) and align the companies efforts

the right product, at the right place, at the right time, at the right price

Competing on price is a race to the bottom!

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Do you have a price advantage?Better than China or Walmart?

Price is a barrier to entryMight reduce the probability that users will ‘try’ your offering

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http://www.youtube.com/watch?v=_peESe2Aa-Y

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real marketing attempts to

know and understand the customer so well that that market offering fits him/her/them and sells itself

though the marketer will have to let the customer know it is available

create enough value so both the customer and organisation are satisfied

it should result in a customer who is ready to interact (again and again)

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value

generally represented by money in exchangecan be non economic in both benefit and cost calculation

customer benefits can include emotional, status

costs can include time, convenience

subjective

determined by the user…

What is the value of this?

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Wii FM

Everybody's favourite radio station

What’s In It For Me…

How does the social network create opportunities for the user…

Why should I participateThe lurker dilemma

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implications

you (producer) cannot produce valueonly value propositions

requires users!co-creation

you won’t know what they value!flexible, adaptable, customisable

http://tiny.cc/tcpbw

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one size fits no one

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marketing can help…

the STP process

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segmentation, targeting and positioning

Same ‘product’ different customers

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segments

there are a number of different ways to identify the composition of a market using geographic, demographic, psychographic and

behaviouristic variables

in practice, a marketer will use as many segmentation variables as possible to get a

clear description of the segment

describing segments of a market lets us profile who the typical customer in that

segment will be

this ‘picture’ is used to determine which segments within the market we will target

(based on your value proposition _ what do you have that they want)

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targeting

evaluate the attractiveness of

segments AND

make a choice which segments to serve

target markets are those segments of a

market at which we will direct marketing

activity

developing a marketing mix that will appeal to

that segment

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positioning

positioning aims to shape the way consumer’s perceive the offer by creating a distinct image of the product in the consumer’s mind

positioning works to determine a product’s position in relation to competing products and has the effect of influencing people’s opinions as it recognises that consumers set a product’s position based on their understanding of it

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choosing a positioning strategy

product’s position - the way the product is defined by consumers on important attributes

the place the product occupies in consumers’ minds relative to competing products

marketers must:plan positions to give their offerings the greatest advantage in selected target marketsdesign marketing mixes to create these planned positions

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so…

you will be expected to understand ‘the market’ and justify your decisions…

by investors (venture capitalists, bankers etc)

by employers

KNOWING THIS STUFF GIVES YOU A COMPETITIVE ADVANTAGE

market information makes it easier to make decisions…

marketing can’t be considered an afterthought

retro-fitting anything makes it harder

Information Sources

Primary Research

Secondary Data

Internal Data

Asking your customers

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Questions to Ask

How much is the information worth?

How accurate is the information?

How are you going to use the information?

When (and how often) will you collect the information?

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inspiration?

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books