Dana VanDen Heuvel | The MarketingSavant Group

dana@danavan.net | www.marketingsavant.com

Dana VanDen HeuvelDana VanDen HeuvelThe MarketingSavant GroupThe MarketingSavant Group

Dana is the founder of The MarketingSavant Group and a widely recognized specialist in emerging marketing technologies such as blogging, social media, RSS, Internet communities and interactive marketing trends and best practices and speaks regularly on these topics at industry events. Dana is the creator of the American Marketing Association “TechnoMarketing” training series and the author of the AMA Marketech ’08 guide to marketing technology.

Marketech ‘08Marketech ‘08

Marketing has not fundamentally changed since the creation on the marketing concept and our branching out as a child of modern economic theory. What has changed is how we, as marketers, talk with our customers and the tools, techniques and especially the technologies that we employ in those conversations.

This guide is meant to serve as an overview of the marketing technologies available to you, the seasoned marketer. We’ve provided you with the most accessible and actionable tools in this guide.

Overview & AgendaOverview & Agenda

9:00 // Begin Overview of TechnoMarketing Word-of-Mouth Marketing and the Power of CGM 10:45 // Break Mining the Social Media Space for Customer Intelligence Customer Community Online Video & Videoblogging Blogs, Podcasts and RSS Emerging TechnoMarketing tools (widgets, Twitter, etc) Putting it to work at in your organization 12:30 // Lunch

EXPECTATIONS!EXPECTATIONS!

What brought you here? What do you need to

bring back? How will you know when

you have it? What do you expect to

DO? How should success

LOOK, FEEL and SOUND?

6

TO APPRECIATE NEW MARKETING: FIRST YOU HAVE TO UNDERSTAND WHAT’S BROKEN WITH TRADITIONAL MARKETING.

7

TRADITIONAL MARKETING & ADVERTISING

ADVERTISING CLUTTERMEDIA FRAGMENTATIONCONSUMERS TUNED OUTDOESN’T SCALELESS EFFECTIVEMORE EXPENSIVELESS TRUSTEDLOWER ROI

8

Crisis In Mass MarketingCrisis In Mass Marketing 18%: Proportion of TV advertising campaigns generating positive ROI 54 cents: Average return in sales for every $1 spent on advertising 256%: The increase in TV advertising costs (CPM) in the past decade 84%: Proportion of B2B marketing campaigns resulting in falling sales 100%: The increase needed in advertising spend to add 1-2% in sales 14%: Proportion of people who trust advertising information 90%: Proportion of people who can skip TV ads who do skip TV ads 80%: Market share of video recorders with ad skipping technology in

2008 95%: The failure rate for new product introductions 117: The number of prime time TV spots in 2002 needed to reach 80% of

adult population – up from just 3 in 1965 3000: Number of advertising messages people are exposed to per day 56%: Proportion of people who avoid buying products from companies

who they think advertise too much 65%: Proportion of people who believe that they are constantly

bombarded with too much advertising 69%: Proportion of people interested in technology or devices that

enable them to skip or block advertising

WHAT’S CHANGED?WHAT’S CHANGED?

"We can't compete on price. We also can't compete on quality, features or service.

That leaves fraud, which I'd like you to call marketing."

Dilbert’s Boss

cc 3

.0,

Megaqw

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y

CONTENTCONTENT

CONTEXTCONTEXT

CONNECTIONS CONNECTIONS

COMMUNITY COMMUNITY

Marketing Into the FutureMarketing Into the Future

Marketing in the education, corporate, non-profit and small business environments is changing in ways that we’re just beginning to grasp.

The changes we see are taking shape on three fronts.

Technology Changes Technology Changes MarketingMarketing Social media Video Widgets & gadgets Mobile Everything Virtual everything Universal search Web 2.0/3.0/4.0

Where Where EverythingEverything Is Headed Is Headed

2006 2050?

Digital

Non-Digital

Today

Source: Google1996

The Revolution will not be televised~ Gil Scott Heron

The Revolution will not be televised~ Gil Scott Heron

Information ProliferationInformation Proliferation

Media Fragmentation - Then, and Now1960 Now

6 TV channels/home 1308,400 Magazines 17,3004,400 Radio stations 13,500None Internet stations35,000

+None Pages on Google 10 B +None Blogs 150 M +

360360 Digital Marketing World Digital Marketing World

22

Online Media

NewsCommunity

sites

Special Interest

Portals

EmaileNewsletterseCardseMail

Social Computing

Wikis

FolksonomySocial

Bookmarking

Digital Devices Phones DVR

(Tivo)PDAs Game

ConsolesMicrocasting

VBlogsDigital Radio

WebcastingPodcasting

Syndication

Real Simple Syndication (RSS)

Content Partnerships

ConversationsBlogs

Listservs

Message Boards

Chat Rooms/Events

IM

Text-messaging

Photo Blogs

Viral Content

Web SitesPress Rooms

w/RSSOnline Advertising

Games & Contests

Search

Keyword Marketing

Blog Aggregators

Blog Search Engines

Search Engine Optimization

eAdvocacy

Manifestos

eAlerts

Citizen Action

Meetups

Influencer outreach

Source: Ogilvy

Social Behavior Changes Social Behavior Changes MarketingMarketing Search Networked Low-fidelity Hierarchy of social needs

Social Hierarchy of NeedsSocial Hierarchy of Needs

Adapted by Amy Jo Kim - http://socialarchitect.typepad.com/

Physiological Food clothing Shelter, health,

System access, retain management of system identity

Security and Safety Protection from crimes and war, living in a just society

Protection from hacking and trolling, privacy, level playing field

Social Ability to give and receive love, belonging to a group

Belonging to a community as a whole, and swarms (subgroups)

Self-esteem Ability to earn self respect, respect of others and ability to contribute

Ability to contribute and be recognized for those contributions

Self Actualization Develop skills Take on new roles and new opportunities

Focus on the “Long Tail”Focus on the “Long Tail”

Reach out to the entire web

To the edges and not just to the centre, to the long tail and not the just the head

Leverage customer-self service e.g. Google, StumbleUpon, orkut

Harnessing Collective Harnessing Collective IntelligenceIntelligenceNetwork effects from user contribution are the key to market dominance in Web 2.0 era

The Wisdom of crowds

Users add value

Amazon, ebay - User reviews, similar items, most popular,

Wikipedia – content can be added/edited by any web user,

Flickr – tagging images

Cloudmark – Spam emails

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The New Economy of The New Economy of MarketingMarketing ROI is within easy grasp (for you, and

them!) Can your R&D keep up with your market? Transparency reduces cost

In the future, organizations will compete on:

Who can create a rich user community where users interact with each other to improve products

Internet Business Models – 5 Internet Business Models – 5 Years Out Years Out Advertiser-Supported Advertising: Brands are increasingly

launching their own content platforms. Some, like Budweiser's BudTV, go it alone. Others partner with online media properties. P&G, for example, embedded Capessa inside Yahoo Health.

Advertiser-Subsidized Devices: Content is a commodity. The barriers to entry are obliterated. Still, this means we all need to make choices - human attention doesn't scale. So how do you get consumers to choose your stuff? Simple. Use incentives.

Marketers will partner with consumer electronic companies to co-brand white-label gadgets. For example, a Gap-branded set-top box could come with exclusive video podcast subscriptions

Just-in-Time Advertising: Digital advertising creative and planning, like any marketing discipline, follows an arc. It's planned, placed, measured and eventually evaluated, tweaked or tossed. However, in the digital world, brands need to be more nimble.

With the help of new technology, marketers will rely on "just-in-time" campaigns that adapt to conditions. Ad creative will morph based on certain triggers. This will include sales/ERP data, blog chatter/consumer feedback, weather/external conditions and more.

Out With the Old Business Out With the Old Business ModelsModelsThe next generation of marketing will be a high-touch, low scale, targeted investment of time & human capital rather than a flood of dollars to win hearts and minds

Give something of value away for free

“Value forward” Brand second (last?) Rapidly emerging

opportunities (skunkworks budget)

Participation trumps focus group

Emerging Economies Lead Emerging Economies Lead Future Online GrowthFuture Online Growth

0%

25%

50%

75%

100%

0% 5% 10% 15%

CAGR of Online Population (2006 to 2011)

Onlin

e P

enetr

ati

on in 2

011

Note: Not all countries are included. Size of bubble indicates relative size of the online population in 2011.

World averages in 2011US

UK

Australia

Japan

Germany

Singapore

Czech Republic

Israel

Italy

Chile

Bulgaria Romania

Argentina

UAE

Mexico South Africa

Egypt

Russia

Brazil

China

IndiaIndonesia

Philippines

France

Netherlands

Sweden

Saudi Arabia

Source: JupiterResearch Worldwide Internet Population Model, 5/07

Canada

Norway

Open authorship, wiki-base community Nuanced permission All media is rich media Local/GEO IP is

perfected Personas are the new target markets Device agnostic marketing experience ‘Search’ behavior is second nature Marketing has always been unplugged Virtual reality has always been available when the real

thing failed Brand’s autobiography written in real time

Web 3.0 for MarketersWeb 3.0 for Marketers

Where Do We Go From Here?Where Do We Go From Here?

Web as a platform Software above a single device Data as the new “Intel inside” Harnessing collective intelligence Lightweight business models (Saas) Rich Internet applications Leverage the long tail

So Much to Learn - Reading!So Much to Learn - Reading! Naked Conversations: How Blogs are Changing the Way Businesses Talk with Customers (Robert Scoble)

The Medium is the Message (Marshall McLuhan)

Complex Responsive Processes in Organizations: Learning and Knowledge Creation (Ralph Stacey)

The World Is Flat: A Brief History of the Twenty-first Century (Thomas Friedman)

Informal Learning: Rediscovering the Natural Pathways That Inspire Innovation and Performance (Jay Cross)

Deschooling Society (Ivan Illich)

The Innovator's Solution: Creating and Sustaining Successful Growth (Clayton Christensen)

The Cluetrain Manifesto: The End of Business as Usual (Christopher Locke)

Convergence Culture: Where Old and New Media Collide (Henry Jenkins)

The Wealth of Networks: How Social Production Transforms Markets and Freedom (Yochai Benkler)

Open Business Models: How to Thrive in the New Innovation Landscape (Henry Chesbrough)

The Long Tail: Why the Future of Business is Selling Less of More (Chris Anderson)

Wikinomics: How Mass Collaboration Changes Everything (Don Tapscott)

Seeing What's Next: Using Theories of Innovation to Predict Industry Change (Clayton Christensen)

Technological Revolutions and Financial Capital: The Dynamics of Bubbles and Golden Ages (Carlota Perez)

The Social Life of Information (John Seely Brown)

The Wisdom of Crowds (James Surowiecki)

Complexity and Innovation in Organizations (Jose Fonseca)

Dana VanDen Heuvel | The MarketingSavant Group

dana@danavan.net | www.marketingsavant.com