Post on 15-Jan-2016
Marketing in the “New” Economy
Int’l Marketing
Int’l Marketing
CRMCRM CRM CRM
Service MarketingService
Marketing
Internet MarketingInternet
Marketing
The Internet is the most important single business revolution in our lifetime. Jack Welch, Former-CEO General Electric
First Concern
o Keep “Internet Marketing” in perspective… As to which “e-commerce domain” you are talking about
o What you are doing, how it is doing & how you do it– depends on what domain you are talking about
e-Commerce Domainse-Commerce Domains
PricelinePriceline
B2G business to Gov’t.
B2G business to Gov’t.
(person to person) P2P E-BayE-Bay
B2C = Billions B2B = Trillions
US CENSUS BUREAU- E-Stats
B2B=93% of E-Commerce
•MFGRS=$1,568B
•MW= $1,148B
B2C•Retail= $107B
•Services=$114B
2nd Concern
The principles & practices of website design & marketing
have evolved…
From-Web 1.0
•Sites tend 2b read-only static pages & files..
.. click a page & wait. were huge, bloated & buggy
•The desktop PC & operating system reigned supreme.
•The paradigm is all about folders & directories.
•Marketing rooted in Mass Media Techniques
To-- Web 2.0:
Web 1.0(1993-2003)
HTML pages viewed thru a browser
Web 2.0(2004- to date)
“content” shared – interactive Exchange;
“Read” Mode “Write” & Contribute
“Page” Primary content “Post / record”
“static” State “dynamic”
Web browser Viewed through… Browsers, RSS Readers, anything
“Client Server” Architecture “Web Services”
Web Coders Content Created by… Everyone
“geeks” Domain of… “masses”
Web 1.0 - Web 2.0 - Web 3.0
http://www.barackobama.com/ Got Web 2.0?-"
What 2.0 means for Marketers
» Listen more, shout less.
» Become part of the community.
» Successful marketing means ceding control.
» See yourself as facilitator, not just producer / provider
If you are still using banner-ads to drive people to static web sites –then:
Web 1.0- Site Promo = 2nd Wave Advertising
W3- AdvertisingPROACTIVE
REACTIVE
PERSONALIZED BROADCAST
AD BANNERS
INTERSTITIALS
WEB SITES
POP-UPS
SPONSORSHIP
TARGETED EMAIL
UNSOLICITED EMAILSPAM
Web 2.0 Key Change for Marketers
.. users connecting to each other & content—
thru networked, peer-driven activities & content
Web 2.0 makes marketing a conversation
• Readers comment on your blogs• They change your wikis• The create blogs of their own• They create “hate” sites if they
don’t like you• They produce mashups of your
content and functions
Web 1.0 users were consumersWeb 2.0 users are participants
Provide W3 based Services & open source (not packaged/proprietary) software
Use Peer production, Networking & Collaboration -trust users as co-developers
Harness Collective Intelligence
Leverage economies of the Long Tail
Provide W3 based Services & open source (not packaged/proprietary) software
Use Peer production, Networking & Collaboration -trust users as co-developers
Harness Collective Intelligence
Leverage economies of the Long Tail
2.02.0
>
W3 based services & open source software
•blogging tools
•survey tools
•newsletter tools
•registration tools
• payment tools
•Wikis:
•Project mgmt:
•Office 2.0 applications:
•Google Apps
W3 based services & open source software
W3 based services & open source software- is why Google is a $140 billion Company
Mashup (web application hybrid)A mashup is a website or web application that seamlessly combines content from more than one source into an integrated experience
Copyright © 2006 Active Web Solutions Ltd
…enables collaborative
creativity
W3 based services & open source software:
Provide W3 based Services & open source (not packaged/proprietary) software
Use Peer production, Networking & Collaboration -trust users as co-developers
Harness Collective Intelligence
Leverage economies of the Long Tail
Provide W3 based Services & open source (not packaged/proprietary) software
Use Peer production, Networking & Collaboration -trust users as co-developers
Harness Collective Intelligence
Leverage economies of the Long Tail
2.02.0
>
Build a community of like-minded individuals
Some of the tools =•Yahoo/Google groups•MySpace•FaceBook•Cyworld groups•Second Life!•Drupal•Plone •Expression Engine
Peer production, Networking & Collaboration … collaborative publishing
Wiki is a piece of server software that allows users to freely create and edit Web page content using any Web browser
Provide W3 based Services & open source (not packaged/proprietary) software
Use Peer production, Networking & Collaboration -trust users as co-developers
Harness Collective Intelligence
Leverage economies of the Long Tail
Provide W3 based Services & open source (not packaged/proprietary) software
Use Peer production, Networking & Collaboration -trust users as co-developers
Harness Collective Intelligence
Leverage economies of the Long Tail
2.02.0
>
Digg.com members “vote” for stories to
appear on home page… enables
collaborative evaluation &
recommendation
Harnessing Collective Intelligence
… enables collaborative research & organization
Harnessing Collective Intelligence
Provide W3 based Services & open source (not packaged/proprietary) software
Use Peer production, Networking & Collaboration -trust users as co-developers
Harness Collective Intelligence
Leverage economies of the Long Tail
Provide W3 based Services & open source (not packaged/proprietary) software
Use Peer production, Networking & Collaboration -trust users as co-developers
Harness Collective Intelligence
Leverage economies of the Long Tail
2.02.0
>
The Long Tail: For Marketeers
The Long Tail: For Marketeers
Top 10 Forecasts,
2008
Let’s get right to it….
The Near Future: Marketing
Considerations
The Near Future: Marketing
Considerations
“In today already walks
tomorrow.” Friedrich von
Schiller
Welcome to the Future
Real time data mining— conducted ‘round the world 24/7/365
On-going Consumer input & generated content
Marketing messages constructed “on the fly”-and delived thru integrated & individualized communication channels…
Analytical marketing skills and processes will be paramount
Career Competencies Needed by New -Marketers…
Traditional Skills Sales mgt Advertising mgt Sales promotion
mgt Marketing
research Pricing
Traditional Skills Sales mgt Advertising mgt Sales promotion
mgt Marketing
research Pricing
PLUS: Customer relationship
management (CRM) Partner relationship
management (PRM) Marketing Resource Mgt.:
Database Mgt & Data-mining Lifetime Profitability
analysis by segment, customer, channel
Integrated marketing communications; Public relations -(including event & cause sponsorship, buzz marketing)
PLUS: Customer relationship
management (CRM) Partner relationship
management (PRM) Marketing Resource Mgt.:
Database Mgt & Data-mining Lifetime Profitability
analysis by segment, customer, channel
Integrated marketing communications; Public relations -(including event & cause sponsorship, buzz marketing)
From Decision Support to Decision Automation: A 2020 VisionRandolph E. Bucklin, Donald R. Lehmann, and John D. C. Little; In coming decades, a
growing proportion of marketing decisions will be automated by ever-more-powerful combinations of data, combinations of data, models, and models, and computers.computers.
New age of marketing decision support will usher in an era of decision automation.
In coming decades, a growing proportion of marketing decisions will be automated by ever-more-powerful combinations of data, combinations of data, models, and models, and computers.computers.
New age of marketing decision support will usher in an era of decision automation. Marketing Resource Mgt
User Interface
WorkflowCollaboration
ContentManagement
Marketing Functionality
Marketing Context
Living Tomorrow –
Got Milk?
Got Pants?
Watching TV
Washing Clothes
Going to the Bathroom
Going to Bed
& Most Significantly:
Decision Support & Automation Systems- will be implemented within the consumer as well as business environments--
& Most Significantly:
Decision Support & Automation Systems- will be implemented within the consumer as well as business environments--
Why bother with the future
"If you think that you can run an organization in the next 10 years… … as you've run it in the past 10 years…
you're out of your you're out of your mind."mind."
CEO, Coca Cola
““When the rate When the rate of change of change
outside your outside your company company
exceeds the exceeds the rate of change rate of change
inside your inside your company, company, disaster is disaster is imminent”imminent”
Lou Pritchet Senior VP, Procter & Gamble
Looking to the future:common mistakes Making predictions rather than
attaching probabilities to possibilities
Simply extrapolating current trends
Thinking of only one future
“When faced with a totally new situation we tend to attach ourselves to the objects of the most recent past.
Marshall McLuhan
We look at the present through a rear view mirror”
Looking to the future: common mistakes
People consistently Overestimate the effect of short term change
& Underestimate the effect of long term change.
Ian Morrison,
former president of the Institute for the Future
Consider the "
Historical Record of Inane Inac
curacies " ”
Effective Forecasting - The Desired vs The Likely
The best way to predict the future is to invent it–
Alan Kay--‘Father’ of the PC and GUI interface
R E A C T I V E
C R E A T I V E
Change how you “C” things!
The point is not so much to predict “the” future…
but to prepare for various contingencies
Based on the logical extension of established trends
The point is not so much to predict “the” future…
but to prepare for various contingencies
Based on the logical extension of established trends
How best to prepare for the future
0%
10%
20%
30%
40%
50%
60%
70%
80%
%of GNP
1850 1950 2050
AgricultureManufacturingServices
Some things are clear--
How best to think about the future
Think of the drivers of change
Use the drivers to imagine different scenarios of the future
Imagine perhaps three; each should be plausible but different
Extrapolate back from those future scenarios to think about what to do now to prepare
What occurred in past few decades to precipitate a
paradigm shift in Marketing…
From product to customer centered
From mass to micro strategy
From customer acquisition to retention
From regarding marketing as a function to envisioning it as a philosophy
Enabled by TechnologicallyPrecipitated by GlobalizationNecessitated by Consumers
technology convergence is fueling a new economy
Computing Computing TechnologiesTechnologies
Communication Communication TechnologiesTechnologies
Content Content TechnologiesTechnologies
The resulting Techno/Info-sphere is re-defining the business landscape for the 21st
century
COMPUNICATIONS
COMPUNICATIONS
CONVERGENTTECHNOLOGY
Socio/Psycho-
Graphic
DIVERSITY
Future Marketing Environme
nt
NONCONVERGENTTECHNOLOGIES
Socio/Psycho-Graphic
HOMOGENEITY
Past Marketing Environme
nt
TechnoSphere DriversTechnoSphere Drivers
Ubiquitous- Imbedded Intelligence
Ubiquitous- Imbedded Intelligence
Information technology will transform our day-to-day lives.
"The big trends - are the availability of cheap sensors that provide digital data, cheap computing power and ubiquitous connectivity - the ability to connect to networks,"
by 2020 everything large enough to carry a microchip probably will, and from there the possibilities are endless.
http://www.guardian.co.uk/2020/0,15047,1299021,00.html
Imbedded intelligence & low-cost omnipresent bandwidth
3G videophones w/ broadband – 2 megper second –
AI Enhanced PDA devices w/ speech recognition & avatars
RFID – everywhere & in everything
Enabled by TechnologicallyPrecipitated by GlobalizationNecessitated by Consumers
Borders have become meaninglessBorders have become meaningless
Trans-National* Cross-Cultural
High Speed/ Low Cost
Transportation & Communication
The entire globe is now tied
together as a single
community operating 24/7/365
The Compunications DriverThe Compunications Driver
The further, faster, easier, cheaper & more frequent people are able
to travel & communicate…
the greater the amount of interaction &
influenceThe greater the degree
of Globalization
Enabled by TechnologicallyPrecipitated by GlobalizationNecessitated by Consumers
20th CenturyHomogenous Consumers
21st CenturyFragmented Consumers
% o
f p
op
ula
tio
n
% o
f p
op
ula
tio
n
Extreme shifts in:
AgeWealthEthnicity CultureLifestage patterns Household compositionValue systems
Source: IBM Institute for Business Value analysis
Consumer values are fragmenting
X+ generation=techno-savvy accessing information whenever & wherever they want itProduct knowledgeThird-party commentary Ubiquitous networkingNext-generationmobile devices
Advanced infomediaries
Source: IBM Institute for Business Value analysis
& Info Savvy
Source: (1) GMA Forum, “Do We Have a Crisis in Brand Management,” Q3 2003; (2) Forrester Research, “Privacy for Sale,” 11 Jun 02; IBM Institute for Business Value analysis
Blocking Out, Shutting Down
Overexposed & “on” to marketing
Ignore irrelevant, low-value messages
Actively block unsolicited communications
Becoming more complex--age, sex & income
reversals
Becoming more self-centered & Home centered
Have less time & more choices
Are less brand loyal
More connected & more informed
Have lower attention spans
& higher expectations
Are living & shopping more
for today…Less long range
planningSeeking new/ heightened sensation
& experiences
Today’sConsumers
Preparing for the Future:
A Quick N’ Dirty Environmental Scan
• “By 2015, desktop operating systems will be largely irrelevant. •The Web will be the only OS worth coding for.• It won't matter what device you use, as long as it runs on the Web OS.•You will reach the same distributed computer whether you log on via phone, PDA, laptop, or HDTV”
The "global brain” is
beginning to emerge
We are the web—Kevin Kelly-Wired magazine-August 2005
Within a quarter century,
nonbiological intelligence
will match the range and subtlety of
human intelligence
The Singularity is Near
rise of…atomic & molecular computersquantum computersnanotechnologyoptical computers DNA computers–or even a “computer in a pen”
Age of Silicon is at
an end!
More Concerned w/ Corporate citizenship
More Eco-conscious
Expect immediate personalized attention
Health #1
Very tech savvy
70% music & books bought
online
shopping more on impulse…
High levels dissatisfaction w/
retailing
TomorrowsConsumers
0%
10%
20%
30%
40%
50%
60%
70%
80%
%of GNP
1850 1950 2050
AgricultureManufacturingServices
Some things are clear--
The Global Village
The Global Economy
The Global Corporation
http://www.guardian.co.uk/2020/0,15047,1299021,00.html
•Growing divergence between those employed in highly skilled, highly paid
professions, and those at the bottom .. The economy of work.. will be increasingly hourglass-shaped. "At the top end of the jobs hierarchy, people are likely to enjoy substantial discretion over their hours, places and patterns of working time…
•Outsourcing, … will continue. Reservation agents, computer programmers, database managers, financial analysts - all those whose jobs that depend, in part, on an ability to master repetitive tasks performed on a computer - will have been relocated abroad. "Only the customer-facing jobs will be left,"
•Growing divergence between those employed in highly skilled, highly paid
professions, and those at the bottom .. The economy of work.. will be increasingly hourglass-shaped. "At the top end of the jobs hierarchy, people are likely to enjoy substantial discretion over their hours, places and patterns of working time…
•Outsourcing, … will continue. Reservation agents, computer programmers, database managers, financial analysts - all those whose jobs that depend, in part, on an ability to master repetitive tasks performed on a computer - will have been relocated abroad. "Only the customer-facing jobs will be left,"
Toffler, The Third Wave, p. 410
the collapse of consensus
In 2nd Wave society a political leader could glue
together half a dozen major blocs, as Roosevelt did in
1932, and expect the resulting coalition to
remain locked in position for many years.
the collapse of consensus
Today it is necessary to plug together hundreds, even thousands, of tiny, short-lived special interest groups… that cleave together just long enough to elect a president, then break apart again the day after the election, leaving him without a base of support for his programs
“In all likelihood it will require the radical overhaul –or even scraping-of:
.. all the unwieldy & unworkable apparatus of supposedly representative governments”…
“In all likelihood it will require the radical overhaul –or even scraping-of:
.. all the unwieldy & unworkable apparatus of supposedly representative governments”…
Toffler- The 3rd Wave
http://www.guardian.co.uk/2020/0,15047,1299021,00.html
“The onward march of individualism - either through choice or fate - is still probably
the major force shaping our world”
“The onward march of individualism - either through choice or fate - is still probably
the major force shaping our world”
The central question is: Will the slow collapse of institutions that have been vehicles for our shared identity mean
collapse of identity itself?
Frontline- The Persuaders