©Zwick Marketing 2.0 for Competitive Advantage. ©Zwick What we will do today Discuss how...

©Zwick

Marketing 2.0 for Competitive Advantage

©Zwick

What we will do today

• Discuss how communication value (through customer value) is generated and delivered in a Web 2.0 world– B2C and B2B

• Effective web-based communication tools– Lead generation and sales w/o push

• Develop an online marketing communication plan– Things you can do tomorrow

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More Specifically:

Session 1: Map the new media forms

Session 2: Unpack logic/theory of new media

Session 3: Drill down on the tools of Web 2.0 communication

Session 4: Your turn! Write an action plan.

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Let start with some question…

• What do you consider the most significant challenges advertisers face today?

• What do you consider the root causes of these challenges?

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And two more…

• What is digital/interactive/e-marketing to you?

• How can digital marketing help overcome advertising challenges of the 21st century?

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Let’s share…

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All four:

• What do you consider the most significant challenges advertisers face today?

• What do you consider the root causes of these challenges?

• What is digital/interactive/e-marketing to you?• How can digital marketing help overcome

advertising challenges of the 21st century?

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Customer Feedback• “Today’s marketing world is broken…We are

still too dependent on marketing tactics that are not in touch with today’s consumer”

– Jim Stengel, Global Marketing Officer, Procter &Gamble

• “Used to be, TV was the answer. The only problem was it stopped working sometime around 1987.”

– President GM North America

• “Broadcasting an ad on television or in a newspaper is admitting you have no idea who your customers are.”

– Gary Loveman, CEO, Harrah’s

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What we know

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If you can…

• Spend $300 on a video camera and reach 4 million unique visitors/month (MS).

• Spend 1% on marketing to increase sales six-fold in 2 years (Stormhoek).

• Hire a videographer, a blogger, and a flickr photographer and run a presidential campaign.

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…then a truly a New Reality with New Rules is here

• So what has happened in the last 10 years?? – Google, YouTube, Facebook

• Word of mouth has gotten much, much more efficient and important

– Rise of attention economy– Rise of Long Tail– More?

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Blogs…right

• Arnold Kim, MD

• His blog: MacRumors.com

• Started in 2000, full-time since 2008

• Attracts more than 4.4 million people– NY Times has 13-14 million

• 40 million page views a month (Quantcast)

http://macrumors.com/

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Name the Top Blogs:

• Gawker Media

• MacRumors.com

• The Huffington Post

• PerezHilton.com

• TechCrunch

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More importantly

• Can you name the key blogs/wikis/forums in your industry??

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In your Groups:

• For each member• Identify the blogs, forums, wikis, and list serves

for your industry?– Ex.: the Solo Attorney list

• Which ones do you monitor?• In which ones do you or your organization

participate?– Ex.: AlacraWiki?

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Let’s share…

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Result

• A new medium is here that is as influential as CNN and the New York Times

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Mapping Digital Marketing

Consumer

Marketer

Marketer Consumer

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Consumer

Marketer •Retail sites•Banner Ads/Links•Email/Spam•News Releases•Blogs/Online forums•Search Engine Optimization•Viral/social marketing

Marketer Consumer

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Consumer •Social search•Third party and retailer evaluation sites (e.g. epinions.com)•Blogs•Wikis•Social networking sites

Marketer •Retail sites•Banner Ads/Links•Email/Spam•News Releases•Blogs/Online forums•Search Engine Optimization•Viral/social marketing

Marketer Consumer

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Consumer •Social search•Third party and retailer evaluation sites (e.g. epinions.com)•Blogs•Wikis•Social networking sites

Marketer •Link building•News releases•Blogs/Online forums

•Retail sites•Banner Ads/Links•Email/Spam•News Releases•Blogs/Online forums•Search Engine Optimization•Viral/social marketing

Marketer Consumer

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Consumer •Search •Email•Company-owned product evaluation sites (beta)•Blogs/ Online forums•Knowledge management•Feedback sites

•Social search•Third party and retailer evaluation sites (e.g. epinions.com)•Blogs•Wikis•Social networking sites

Marketer •Link building•News releases•Blogs/Online forums

•Retail sites•Banner Ads/Links•Email/Spam•News Releases•Blogs/Online forums•Search Engine Optimization•Viral/social marketing

Marketer Consumer

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In your Groups:

• Work together to fill the quadrants for each of your companies.

Consumer

Marketer

Marketer Consumer

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Let’s share…

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Let’s take a break!

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Reaching Customer

• New Tools to drive – Buzz– Traffic and Leads– New product feedback– Sales– Relationships– Etc.

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Of Influentials and Search Engines

•Bloggers•Podcasters•Videobloggers•Sneezers

•Digg•Technorati•del.icio.us •Google

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Is there a Simple Formula to Success?

• No…

• …but I’ll give you one anyway.

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Turn a good story…

• …into a groundswell of communication and attention.– Will it blend? (youtube)– Nokia N95 (blog seedings)– Mike Pedersen (www.golf-trainer.com,

www.performbettergolf.com/blog)– Le Cache Premium Wine Cabinets (wine-

storage.blogspot.com)

http://www.golf-trainer.com/

http://www.performbettergolf.com/blog

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But why? So what?

• What does all that communication and (possibly) knowledge of the product, service, company, brand, person, etc. turn into?– Credibility, authenticity, authority

In short: TRUST through THOUGHT LEADERSHIP

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In Groups:

• For each member, do these two things:1) Identify the story about your

organization/product/service currently told to consumers in your ads

2) Identify all the ways you are telling this story to your market

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Let’s share…

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Why thought leadership…?

– traffic– relationships– sales– loyalty

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So what is different about Online Advertising?

• Standard Answer: Allows you to communicate directly with your marketplace.

• But– Does a TV commercial not do that?– Does a good PR campaign not do that?

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So what is different (cont’d)?

• Prior to web: how can you get attention from customers?– Advertising– PR

• How targeted are these?– depends but overall pretty much shot gun

• How timely are these?– Usually untimely one-way interruptions!

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…and now…?

• Conversation, interaction, relationship with the select few

• Attention is always already there

• We dig deeper after group work…

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Back to your Groups:

• Back to your story…– Together ponder two additional online

communication tactics for each of you that you would recommend to tell the story.

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Let’s share…

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Theory Burst (fear not)

From

Consumer Marketing

to

Customer Moment Marketing

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21ST Century Marketing Challenges

• FRAGMENTATION!!– Attention

– Demand

– Community and Communication

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Attention Economy

• Fragmented media• Consumers tuning out or completely

skipping messages• 61% of consumers say that marketers and advertisers do not

treat them with respect• 69% are interested in products or services that would help

them skip or block advertising

• Poor Information/Metrics on effectiveness

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Long Tail (Chris Anderson)

• Fragmented Demand– Niches are Riches

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What is “Natural Demand”?

• The “Head” of the Demand Curve:– Pre-Internet, old economy firms turned out a

small number of “hits” or blockbuster products

• The “Tail” of the Demand Curve: – Internet-era, new economy firms offer a

broader range of niche products.

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The Head

• Prior to the Internet, production, distribution, and consumption focused on a few hits because of scarcity of resources:– time, space, and money– The 80/20 rule

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The Long Tail

• Costs of reaching niches down!

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To Summarize:

• In virtually all markets, there are far more niche goods than hits

• The cost of reaching those niches is now falling dramatically.

• The demand curve flattens. – There are still hits and niches, but the hits are

relatively less popular and the niches relatively more so.

• All the niches add up. • The natural shape of demand is revealed.

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Is there a Long Tail?• www.rogerebert.com hosts more than ten

thousand reviews • June 2006, these movies were big:

– The Da Vinci Code– Brokeback Mountain– V for Vendetta– X-Men: The Last Stand– An Inconvenient Truth

The question: what percentage of clicks went to any of these reviews?

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Is there a Long Tail?• Web traffic statistics show that even the most

popular film represents less than 1 percent of their business.

– The Da Vinci Code .8%– Brokeback Mountain .8% – V for Vendetta .7%– X-Men: The Last Stand .6%– An Inconvenient Truth .5%

The lesson: People are curious about a lot of different movies.

http://rogerebert.suntimes.com/apps/pbcs.dll/classifieds?category=REVIEWS01&TITLESearch=The%20Da%20Vinci%20Code&ToDate=20061231



http://rogerebert.suntimes.com/apps/pbcs.dll/classifieds?category=REVIEWS01&TITLESearch=Brokeback%20Mountain&ToDate=20061231

http://rogerebert.suntimes.com/apps/pbcs.dll/classifieds?category=REVIEWS01&TITLESearch=Brokeback%20Mountain&ToDate=20061231

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Brands/Companies as Platforms

• Social communication theory– From attention to recognition– “Open-source marketing”

• Wikis, forums, communities

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So, together

• Fragmentation, Long Tail, Social Communication makes reaching and keeping the attention of your customer ever harder.

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Common cures

• Build deeper customer relationships and knowledge;

• Construct fine-grained customer segments

• Mine customer data to uncover hidden relationships – get to know customers on a “one to one basis’

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…AND THEN PUSH YOUR MESSAGE!

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Problem is

• People’s needs change (daily, hourly)• needs are not hardwired but a function of

context

• People still don’t have time to be interrupted with irrelevancy

• People still don’t recognize you (the marketer) as thought leader

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Digital Marketing: Shift the Frame

• Shift away from individual consumer as the unit of analysis and shift toward the moment (the many moments of truth) that occur when the customer interrupts you! – asks questions, expresses opinions, searches for

examples, converses with peers, weights options and eventually makes a buying decision.

FIND WAYS FOR CONSUMERS TO INTERRUPT YOU!!

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Let’s Summarize

• Advertising faces new challenges– Attention, niche demand, community/communication

• A new medium changes the name of the game – From customer segments to customer moments

• Online Marketing Communication: – Brand means authentic thought leadership (not one-

way interruptions)

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Let’s look at the Tools

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We focus on:

• Search engine marketing• Viral marketing • Online Forums, Wikis• Blogs (incl. Audio, Video)• Email• Online retailing/Website Strategies

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We focus on:

• Search engine marketing

• Viral marketing

• Online Forums, Wikis, List Serves

• Blogs (incl. Audio, Video)

• Email

• Online retailing/Website Strategies

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Search Engine Advertising

• 3 types– organic search marketing (results based on

algorithm)– pay-per-click search marketing (results based

on auction system)– social search (based on collaboration of

consumers)

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Organic Search

• #1 Rule:

• Speak your customers' language. – Harder than it seems:

• irrelevant what you think your customers use to find you.

• or even what phrases you want them to find you with.

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Pay per click• The fastest growing form of Internet

Advertising (vs. traditional CPM)• Advertisers pay NOTHING for audience

exposure• Advertisers pay only when someone clicks on

one of their ads (usually $.05 to $2.00)• Advertisers bid for keywords that describe

their product or service. The number of keywords is unlimited (inventory)

• ROI easily calculated – If you can measure it you can manage it

• Largely Google, Yahoo, Microsoft

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Social Search

• User generated search results– Aim to produce more targeted results– Aim to produce more relevant results– Aim to produce more credible results

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The Long Tail of Advertising• The economics of Internet retailing increase

the amount of inventory that retailers can viably offer – Walmart offers 6 times as many sku’s at walmart.com than in the largest store

• PPC enables a similar opportunity with ad “inventory”

• While the bottom 30,000 search terms may not generate the most revenue they are nevertheless very significant

• A richly segmented “marketplace for attention” is created

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The Future of Search

• Search will continue to evolve and increase in relevance

• Snap.com (uses click stream info to augment results)• Visual enhancement (Mooter, Kartoo)• Blog Search (Technorati, Google, Yahoo)• Image search (Flickr and others)

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The Future of Search (2)

• Search will colonize new areas• Geographic search (San Francisco and Google Local)• Context sensitive• Image• Mobility• Multi Channel• Blogs• Multimedia

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Why should you care?

• Search will become critical in addressing 21st century marketing challenges!– Consumers are better served– Advertisers are better served

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Is it for YOU?

• Conduct various searches for each other’s services/products from a consumer perspective.– Without using your company or specific product names,

what do you want your partners to search for?– Partners search various terms: what do you see?– How high up is your partner’s company?– Exchange insights with the other.

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We focus on:


• Viral marketing



• Email


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Viral Marketing (buzz, word-of-blog)

• Grobe and Voltz!– The Diet Coke and Mentos guys on Eepybird.com– From backyard to Letterman– From a one-off to full-time job (celebrities)– From one bottle and one mentos to a business

with accessories etc.– All for about $200

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Can you manage Viral?

• Difficult– Web good at smoking out trickery– Inauthentic viral can be damaging to reputation– Hardly guarantees for success– Remember: Viral may use YOU!– Push along a positive viral you did not start– Contain a bad one

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Some Suggestions

• Monitor the blogosphere for viral (or potentially viral) eruptions

• Monitor search terms (www.alexa.com)– On the day Coke/Mentos went viral, a tenfold spike in

the number of blogs mentioning Mentos occurred

• Take the “hit-approach” (or angel investing)– Shattner’s kidney stone and Goldenpalace.com

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Is it for YOU?

• Explore viral potential for your company.– Good, corky, or bad deeds to talk about?– Can you make customers talk about you?

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What did Coke do?

• Initially, they did not like the representation of the brand and did not support Grobe and Voltz.

• They realized that this was unstoppable and now came around.

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Aka, the public conversation ‘out there’

• Most out of control of marketers– Sony (XCP software) case

• Your best customers participate in online forums, so should YOU– Nikon D200 and B&H Photo-Video – Posters consider forums their turf, meet them there!– Participate with ideas, advice, and knowledge, not

sales

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Ex.: BarePoint

• Mike 2.0 wiki– Opens up knowledge even to competitors– Helps compete with Accenture, HP, IBM– Creates lots of high-quality leads for the multi-

million dollar management service they offer– 1 million views a month!

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Other Wikis/Forums

• Intuit: taxalmanac.com (top 20 wiki site in US)

• EBay: ebaywiki.com

• Tivo: tivocommunity.com (not built by Tivo!)

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Is it for you?

• Maybe, but first ask yourself:– Why will people participate?

• Or: what problem will it solve?

– How will you participate?– Will you create a wiki/forum or join existing

one?

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Part of Larger digital strategy

• Customer service departments deliver “how-to’s”

• Extend distribution and consumption possibilities

• Side by side with text blogs, websites, forum participation, white paper distribution, e-books, etc.

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Is it for YOU?

• Think about your core products and services, then

• Identify two main user groups, then• Identify opportunities for using podcasting

(audio, video, text) to add value.• Define from YOUR customers’ perspective:

what would make a good blog?

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Simple: Opt-in and Recommendation Only

• Email is disruptive almost by definition.

• So, almost by definition, it’s spamming.

• BUT: can be very targeted, timely, and relevant.

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Is it for YOU?

• Under what circumstances could you use email as a communication tool?

• Design ONE moment of use for email for your business.

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Example: NRDC (.org)

• Lots of news, resources, and information– In audio, video, text– Online publication– Links to laws and treaties

• Provides platform for others to contribute• Spread the message:

– Provides widgets for download and links for Bloggers– Provides ‘badges’ to be placed on blog.– Provide support for Squidoo lenses

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And your Site?• The “how good is your content” challenge?

– How targeted is it to specific customer personas?– What kind of media are used?– What kind of search functions exist?– What kind of downloads exist?– What kind of possibilities for consumer participation

exist?– What kind of possibilities for linking exist?

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Pressing Questions

• As marketers, sales people, or owners of small/medium businesses you wonder:– How do the various touch points within my business affect each other and

are there gaps you need to bridge? – How do I meet my customers' needs at each of these different touch

points?– What questions do my customers have that I need to answer

meaningfully?– How do my customers frame their questions?– How do I shape my message to reflect those frames?– What are the different motivations and emotional needs among my

audience that I need to satisfy?– What do I do next?

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Action Plan: Harness the Power of the New Rules

• Become buyer-centric– Build Buyer Personas– Speak their language, close sale, and continue

conversation– Do “open-source marketing”

• Build Online Thought Leadership– Build TL content– Think writing and publishing– Think “online media room”

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Each of you individually:• In one (maybe two) sentence(s):

– Define your company’s overall marketing strategy (STP)– Define your IMC strategy (STP)– Choose one segment and develop all customer personas within

this segment that your organization deals with based on their needs.

– Identify all your online communication tools and assess how customer-centric they are (address each persona’s moments of truth).

– Assess if you would be looked at as a thought leader by your personas at these moments.

– Make 3 recommendations for your team to work on tomorrow to link the benefits of the Web 2.0 to the communication and marketing strategy of your organization.

©Zwick Marketing 2.0 for Competitive Advantage. ©Zwick What we will do today Discuss how...

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