Future of marketing 1/2 - CIM and BL's presentations

The Future Of Marketing

Planning for Future Trends

Richard Storey

South West Regional AmbassadorSmall Business Community

The Future of Marketing

Planning for the Future

• What do the future trends look like?

• What are the opportunities?

• How will these effect your business?

• How do you plan for these?

• Questions & Answer session


What is marketing?

Marketing is ‘the management process responsible for identifying, anticipating and satisfying customer requirements profitably’.


From monologue to dialogueTraditionally marketers have broadcast messages designed to correspond with each stage of a buying cycle

Primary role of marketing was to conduct, (or squeeze!) customers through a funnel on their way to a point of sale.


Now routes to market look more like this!


Customer conversationsOver the past few years have witnessedthe first examples of true two-way marketing “conversations”

Driven by innovation, competition and major shifts in consumer behaviour, the dialogue between brands and their customers is replacing the traditional marketing monologue.

We live in a transparent world; words turn into actions in seconds.


What are the Future Trends?

Changing Consumer Attitudes

•Quality not quantity

•Reliability and value for money

•Supplier integrity and trustworthiness



Reputation Management• Protect your assets – especially your brand and image

Hard to build but easy to destroy

• Train staff to understand and project your culture and values

• Develop and deliver a consistent customer experience

• Focus attention on controllable communications

(advertising, PR, website, newsletters etc)

• Highlight potential dangers of unguarded use of social media



Media Choices• Online versus offline

• Identify what communication channels

your customers most frequently use

• Plan media choice to optimise targeting

• Segment your markets

• Use different messages and media for

different age groups



Return on Investment and measuring it• 80% of marketing spend is wasted – find out

which 20% isn’t

• All forms of promotion should be seen as an

investment – not a cost

• Measure the value of new business won - not

volume of enquiries - against promotional costs


What are the Opportunities? • New Technologies• Segmenting your market• How do I stand out in the crowd• Global markets


New Technologies

• Low carbon businesses• Renewable energy• Improved materials recovery

and reuse technologies• Technologically advanced

labour and time saving products and services – we will become increasingly time poor and financially constrained


Segmenting your market

• Understand your markets• Develop and apply a different marketing approach

to each segment• Focus on profitable segments and discourage

business from unprofitable sources


How do I stand out in the crowd

• Differentiate your product or service• Exceed customer expectations• Innovate – this may mean

– Doing something entirely new– Doing something old but in a new way

For example -digital replacing analogue– Rediscovering something that has been lost and re-

introducing it

For example – personal service (remember that?)


Global markets• The internet and e-commerce solutions provide

the opportunity to become a global business• 21st century facilities for moving goods across

continents means that trading globally is no longer financially prohibitive for good added value products

• Some markets like imported national products – Americans like English products

Japanese like Scottish whisky


What about Social Media?

Requires new marketing etiquette:– Conversation– Courtesy– Transparency– Genuine– Sharing– Values


How will these affect my business?

• Business Success?

• Business Failure?


Business Success?Ways to achieve it

• Monitor and re-evaluate your product/service offering

• Shadow your competitors – develop competitive advantage

• Build a superior reputation;– A trusted brand– An ethical approach– A customer-centric policy throughout the business

• Exceed customer expectations


Business Success?Ways to achieve it• Focus on benefits not features • Remember that people do business

with people not companies or organisations• Remove barriers/obstacles to buy – make it easy to buy• Use third party endorsements to build an image, reliability

and trustworthiness• Demonstrate why your business should be the preferred

choice • Don’t be sentimental about unprofitable customers


Business Failure?What does it look like - what are the signs?

• Lose touch with your customers/markets

• Sell on price and volume and lose sight of margin and added value

• Fail to innovate/introduce new or improved products to remain competitive and relevant


Business Failure?What does it look like - what are the signs?

• Create unsustainable marketing budgets• Rely on customer churn to keep your business

growing – finding new customers will invariably cost much more than keeping established ones

• Fail to identify customers who are costing you money and draining your profits


Start by creating a plan

• Integrate marketing into your business• Decide on what you want to achieve?• Decide what trends will have an impact? • Decide how you can meet these• Review resources, skills & capability and fill the

gaps• Create a marketing plan


"I would not say that the future is necessarily less predictable than the past. I think the past was not predictable when it started.“

Donald Rumsfeld

Best of luck for the future!

Thank you


Any questions?


Find Out More

The future of Marketingwww.cim.co.uk/filestore/resources/agendapapers/futureof marketing.pdf Regional Director-Christine Boswell-MundayChristine [email protected]

Visit our stand or visit www.cim.co.uk

http://www.cim.co.uk/filestore/resources/agendapapers/futureofmarketing.pdf



mailto:[email protected]

mailto:[email protected]

http://www.cim.co.uk/

The Future Of Marketing

An (Old) Definition Of Marketing

If you can get the Mayor to laugh about it – that’s PR

And if you planned the whole thing ... that’s Marketing!!

The circus is coming to town! If you paint a sign saying: “Circus is coming to the fairgrounds this

Sunday” – that’s Advertising

If you paint the sign on the back of an elephant and walk him through town – that’s a Promotion

If the elephant walks through the Mayor’s flower bed – that’s Publicity

Marketing Today

In the modern world, we could add:

If you spread the word via your website or blog, or using Facebook and Twitter, perhaps on your iPhone – that’s Social and Digital Media!

Today …

We’re witnessing the transition from an analogue world to one that is almost entirely digital

Soon ALL content will exist in digital form, eg OED

Digital technology comes with a powerful promise:- the ability to reach exactly the right audience, at exactly the right time and place, with exactly the right message

Today …

Things are changing:

… from TELL & SELL – Monologue Marketing

… to INTERACTIVE – Dialogue Marketing

Brands and Branding won’t change

However......your brand is no stronger than your reputation – and will increasingly depend upon what comes up when you are ‘Googled’

Brand

What is your brand?

Collectively, it’s what people say, feel or think about your product, service or company

Branding

What is branding?

Using marketing to influence people’s attitudes towards, and perception of, the brand

Brand Loyalty

Brand loyalty will be earned over time through consistent, positive experiences and engagements with a product, service or company

“Treat me well, and I’ll return the favour by spreading the word for you and coming back to you.”

“Consumers will increasingly look for brands with a social purpose… Brands and businesses that fail to integrate consumer needs with societal wellbeing will struggle to grow in the future.”

“Consumers will increasingly look for brands with a social purpose… Brands and businesses that fail to integrate consumer needs with societal wellbeing will struggle to grow in the future.”

Paul Polman, Chief Executive, Unilever

“On the one hand, it seems like everything is changing. On the other hand, one very important dynamic has not changed…

… the customer is boss.”

“On the one hand, it seems like everything is changing. On the other hand, one very important dynamic has not changed…

…the customer is boss.”

AG Lafley, Chairman of the Board, Proctor & Gamble

“Remember three age-old marketing pillars:

1) show humility when you talk with customers;

2) keep the communications simple;

3) what customers want above all is VALUE.”

“Remember three age-old marketing pillars:

1) show humility when you talk with customers;

2) keep the communications simple;

3) what customers want above all is VALUE.”

Vittorio Colao, Chief Executive, Vodafone

Where Are We Now? Newspapers

Television

Radio Cinema

Direct Mail

Online/Social Media

Newspapers

UK circulation has fallen 25% between 2007 and 2009 (Organisation Economic Co-operation Development figures)

USA -30%; Italy -18%; Canada -17%

Why?

Growth of the internet/online news free of charge, fragmenting media landscape

Reduction of bulk distribution to hotels/restaurants

Reduction in ad revenue = price increases

UK NewspapersThe last 10 years …

The Sun 3,451,746 2,979,999 down 14% Daily Mail 2,421,795 2,092,643 down 14% Daily Mirror 2,180,227 1,248,919 down 42% Daily Star 725,552 809,992 up 12% Daily Telegraph 974,362 681,322 down 30% Daily Express 877,735 664,293 down 24% The Times 678,498 503,642 down 25% Financial Times 446,271 391,864 down 12% The Guardian 424,132 286,220 down 33% Independent 203,402 187,135 down 8%

(ABC - Daily circulation, July 2010)

UK Newspapers

The last 12 months… The Sun 2,979,999 down 1.6% Daily Mail 2,092,643 down 4.93% Daily Mirror 1,248,919 down 6.12% Daily Star 809,992 down 6.95% Daily Telegraph 681,322 down 18.45% Daily Express 664,293 down 8.94% The Times 503,642 down 14.77% Financial Times 391,864 down 4.88% The Guardian 286,220 down 14.82% Independent 187,135 down 6.62%

(ABC - Daily circulation, July 2010)

Cinema Admissions

173.5 million cinema admissions were recorded for the UK in 2009, up 5.6% from 2008

However :

Cinema admissions have dropped well over 50% since the 1960s

Radio

Listening figures are at an all time high:

Total audience, Q2 1999: 42.9 million adults per week (89%)

Total Audience, Q2 2010: 46.8 million adults per week (91%)

Why?

More choice, digital radio, handheld smartphones

Ad revenue is down

“The next 50 years will see new forms of marketing, tailored in greater ways to our lifestyles.

“Traditional advertising will remain on bus stops, through the iPhone, on television, via the internet and posted through our letterboxes.

“But word-of-mouth marketing will forever be the most powerful way of persuading customers to join us.

“It’s the product that really forms the future of marketing – as it has done in decades past.”

“The next 50 years will see new forms of marketing, tailored in greater ways to our lifestyles.

“Traditional advertising will remain on bus stops, through the iPhone, on television, via the internet and posted through our letterboxes.

“But word-of-mouth marketing will forever be the most powerful way of persuading customers to join us.

“It’s the product that really forms the future of marketing – as it has done in decades past.”

Sir Richard Branson

Future Technology

“We don’t ask consumers what they want.

“They don’t know.

“Instead we apply our brainpower to what they need, and will want, then make sure we’re there, ready.”

“We don’t ask consumers what they want.

“They don’t know.

“Instead we apply our brainpower to what they need, and will want, then make sure we’re there, ready.”

Akio Morita, Co-founder, Sony Corporation

“People don’t know what they want until you show it to them.”

“People don’t know what they want until you show it to them.”

Steve Jobs, Co-founder, Chairman & CEO, Apple

Marketing In Tomorrow’s World

20 media and technology changes that will affect marketing in the future …

Eye Recognition TV

Hidden cameras detect if eyes are on the screen

If they’re not, the sound and picture start to fade out after a given period

What happens during an ad break when someone leaves the room?!

3D TVHere already!

Sport

Gaming industry

Medical advancement

Movies

Advertising

Next stop?

Smellovision?!

Interactive Posters

Poster panel with in-built interactivity

Detects potential customer

Engages via animation or sound or both

Plays video clips

Interactive Shop Windows

Adds a touch-sensitive layer to a shop window

eg estate agents

After hours potential

Bluetooth Proximity Marketing

Bluetooth transmitter within business premises

Sends messages to passers-by with Bluetooth enabled phones

Cinemas, police messages, restaurants, etc.

Potential for any retailer

2D QR Barcodes

A QR (Quick Response) Code is a matrix barcode or two-dimensional code readable by QR scanners, mobile phones with cameras and smartphones

Point at coded message to translate it into a meaningful message/special offer/promotion

Offline marketing measurement

Free of charge (currently!)

Location Marketing

Gowalla, foursquare Customers sign up free to the service and ‘check-in’ at

each destination Each time you check-in (using your GPS enabled

phone) you receive points The person with the most points for a venue

becomes ‘the Mayor’ A number of retail outlets are offering their

‘Mayors’ a particular discount eg Dominos Pizza offers their Mayors a free

“personal Pizza” on Wednesdays; Starbucks offers a discount; some hotels offer a 15% discount on their a la carte menu

iPods, Then iPads, Next iStops!

Bus stops with built-in digital information

All buses fitted with GPS locaters, tells your smartphone when the next bus is due

Can also provide weather forecasts, news updates, etc

Advertising opportunities

Facebook

Here today, even more popular tomorrow? Launched 2004, currently 500 million+ users Not the leading social network in Russia, China

or Japan Current value $33 billion?!

Average number of friends is 130

Advertising opportunities, eg Leigh Court wedding venue – ‘Single’ to ‘Engaged’

Spotify

Over 8 million tracks and counting

Create playlists – simply drop and drag

Future potential vs commercial radio?

Spotify is your new music collection!

The BBC

What is the future of the licence fee?

The Beeb is changing – 25% cut in website spend

63% of the population would be happy to have advertising on the BBC in return for scrapping the licence fee

Sponsorship opportunities?

Local TV opportunities?

Local radio opportunities?

MORE Social Media!

‘Ping’ from Apple

Social network all about music

“Facebook and Twitter meets iTunes”

Follow your favourite artists and friends and follow what music they are downloading

Last FM i-app

Listen to tunes on your mobile?

Keep running out of memory or forgetting to update your playlists?

Last FM has an online library of millions of tracks

Create a personalised radio station based on your tastes

Free to use

Bump i-app

The end of the business card?!

Meet someone else with an iPhone or iPod Touch

Swap your contact details by simply bumping your devices together

Also become friends on Facebook, Twitter or LinkedIn

Reel Director i-app

Looking to add video footage to your website?

Google loves video and it will boost your Google rankings

Film it, edit it, post it! 4 styles of opening and

closing credits 27 types of transition Add photos too,

zooming in or out Website homepage,

email signature, YouTube

TimeOut i-app

Looking for weekly updates in a specific area?

For concerts, art exhibitions, gigs, cinema listings GPS technology

Next stop?

TimeOut Bristol & Bath TimeOut Gloucestershire, TimeOut Swindon &

Wilts

Where does this leave the likes of Venue magazine?!

Market Research

More accurate audience measurement – BARB/RAJAR

Added technology

Webcams to watch expressions

The Future Of Email Marketing?

‘Priority Inbox feature’ from Gmail / Googlemail

Prioritises your emails – Important / Everything else

Based on emails you’ve previously opened

Emails with keywords you’ve opened before

Does the email look like it’s come from a mailing list?

The Future Of Web Design

Build your own website, zero experience required

www.moonfruit.com

Add pictures, audio, video

Track website traffic

Built-in SEO

Free of charge! (as long as you update it once every 6 months)

Accuracy Of Web Content

‘Dispute Finder’

Highlights and vibrates if facts are in dispute on a website

But what about commercial websites in the future?

We offer the “best prices”, the “widest range”, we’re “number one in the area”

Thank You!

Dev Chakraborty

Business Link

E: [email protected]

Slides available from:

www.businesslink.gov.uk/southwest/eventspresentations

Future of marketing 1/2 - CIM and BL's presentations

Documents

Transcript of Future of marketing 1/2 - CIM and BL's presentations