Today s dynamic social internet environment has brought into question many traditional business practices and strategies. No area has suffer greater
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1 Today s dynamic social internet environment has brought into question many traditional business practices and strategies. No area has suffer greater disruption than marketing where companies faced with a decline in 4P power have witnessed social Networks create and destroy companies and brands with amazing speed. The talk will focus on how SNs have achieved this power, the shift from outbound to inbound marketing as well as brand development and the connection to reputation management.
2 THE WAY BUSINESS THINKS IS CHANGING MASS PRODUCTION Engineering Model Make it Sell it (Engineering Demand Model) Then Came 70s Early Information Importance & 4Ps LEAN JAPANESE MODEL Just In Time (JIT), TQM, 6 SIGMA, Make it with Marketing/ Consumer Research/ Modify INTERNET/ INFORMATION AGE Create Value Information > Consumer Driven Innovation Today s Competition
3 INFORMATION ITSELF IS NOT A VALUE WHAT MY ABOUT METRICS? WHAT ARE THEY THINKING?
4 PRODUCTS FNDING YOU 4
5 Old Marketing 4 Ps Mix Price Internet EnabledMix Place Promotion Product
6 Old Marketing 4 Ps Mix OUTBOUND MARKETING Price Place Promotion Product Heavy influence of firm in relation to competitive positioning. Price segments in order to achieve the highest price from different consumer groups through targeted discounting. SHIFT FRM MARKETPLACE focus with company sites. Some freedom from place through mail orders and catalogs Internet Enabled Mix INBOUND MARKETING Significantly influenced by consumer. Internet searches for price and information flow by social networks, and reduce company's ability to regulate price quickly Dell. INFO SEARCH PRICING Freeloader Information TO MARKETSPACE Internet frees companies from location location is web address. Makes all products/services globally available to al people (amazon mission statement)
7 Old Marketing 4 Ps Mix Price Heavy influence of firm in relation to competitive positioning. Price segments in order to achieve the highest price from different consumer groups through targeted discounting. Internet EnabledMix Significantly influenced by consumer. Internet searches for price and information flow by social networks, and reduce company's ability to regulate price. INFO SEARCH PRICING Freeloader Information Place SHIFT FRM MARKETPLACE focus with company sites. Some freedom from place through mail orders and catalogs TO MARKETSPACE Internet frees companies from location location is web address. Makes all products/services globally available to al people (amazon mission statement) Promotion FIRM DRIVEN OUTBOUND intercept and message Standard avenues of advertising, using mixture of TV, print, radio, etc. Idea is to "intercept" people BRAND IMAGE Company Controlled HARD TO MEASURE CONSUMER DRIVEN INBOUND MARKETING Search Engine Optimization a central means of reaching consumers. Digital campaigns nonintrusive to the consumer. FACEBOOK,GOOGLE. BRAND IMAGE Consumer Involvement DATA MINE TARGETED MEASUREABLE Product
8 Old Marketing 4 Ps Mix Price Heavy influence of firm in relation to competitive positioning. Price segments in order to achieve the highest price from different consumer groups through targeted discounting. Internet EnabledMix Significantly influenced by consumer. Internet searches for price and information flow by social networks, and reduce company's ability to regulate price. INFO SEARCH PRICING Freeloader Information Place SHIFT FRM MARKETPLACE focus with company sites. Some freedom from place through mail orders and catalogs TO MARKETSPACE Internet frees companies from location location is web address. Makes all products/services globally available t al people (amazon mission statement) Promotion FIRM DRIVEN OUTBOUND intercept and message Standard avenues of advertising, using mixture of TV, print, radio, etc. Idea is to "intercept" people BRAND IMAGE Company Controlled HARD TO MEASURE CONSUMER DRIVEN INBOUND MARKETING Search Engine Optimization a central means of reaching consumers. Digital campaigns non-intrusive to the consumer. FACEBOOK,GOOGLE. BRAND IMAGE Consumer Involvement DATA MINE TARGETED MEASUREABLE Product products and services available but often in predetermined supply due to inventory issues. Relies on location for distribution. Consumers find goods THROUGH PROMOTION YOU FIND PRODUCTS/SERVICES Digital services and products available for immediate download and use. Physical products available through mail distribution. Goods find consumers long tail ability
9 Kozinets - Organic Interconsumer Influence Traditional Old 4Ps Marketing Model Consumer Marketing message and meanings Consumer Marketing Mix Elements Marketer
10 The Network Coproduction Model Consumer Consumer Marketing message and meanings Consumer Consumer Direct Influence (seeding, one to one) Marketing Mix Elements & Metrics Marketer / Firm Controled
11 11
12 Networks Control the Message Becker Customer Initiated Model Consumer Networks Consumer Unsolicited +/- posts Review Social Net Sites s Blogs Internet buzz Online Reviews Value added information exchange viewed by and forwarded Consumer Networks Consumer Networks Consumer Networks Passive/Active Monitoring Reputation management Direct and indirect influence New Role of Marketer in Consumer Driven Environment 12 OUR RESEARCH INDICATES LITTLE OF THIS HAPPENING
13 WHY HAVE PEOPLE WANTED CONNECTION? TO BE NEXT TO THE ACTION CONNECTION- MEANT PROSPERITY 13 8
14 NETWORKS EXPAND FROM WATER Families Together Move to Work TV PROVIDED SHARED CULTURAL VALUES 14 9
15 Japanese Yankee fan I Internet/ Social Networks Erode Distance Changes the Meaning of Time (24/7) Reduces Significance of Distance LOCAL acebook month 300 billion minutes = 600,000 years single most popular online activity 1.4 billion 25-40% time online 15 18
16 Facebookistan Rapidly Becoming largest Nation in World Rules/Legal department Standards of behavior/ customs Police enforcement 70 Languages 70% of Facebook users outside US 43% US Penetration 10% World 16
17 17
18 18
19 2/3 OF THE GLOBAL INTERNET POPULATION VISIT SOCIAL NETWORKS 3 OF 4 AMERICANS USE SOCIAL TECHNOLOGY Forrester, The Growth Of Social Technology Adoption,
20 21/11/
21 2/3 OF THE GLOBAL INTERNET POPULATION VISIT SOCIAL NETWORKS 3 OF 4 AMERICANS USE SOCIAL TECHNOLOGY Forrester, The Growth Of Social Technology Adoption,
22 93% OF SOCIAL MEDIA USERS BELIEVE A COMPANY SHOULD INTERACT THROUGH SOCIAL MEDIA. Cone, Business in Social Media Study, September
23 Interruption Outbound Marketing Telemarketing Trade shows Direct mail blasts Print ads TV/radio ads PERMISSION BASED NOT INTERRUPTION BASED INBOUND MARKETING SEO BLOGGING SOCIAL MEDIA DATA MINING TWITTER RELATIONSHIPS DRAWING ATTENTION 23
24 STOP THINKING CAMPAIGNS THINK CONVERSATIONS Give Consumer Something so interesting they want to share it with everyone they know CONTENT = CONVERSATION 24
25 GO TO SITE
26 26
27 Video uploaded every minute. Time to view every YouTube video. YouTube videos viewed per day. 27
28 RULE #2: ENGAGE Social Media is a Conversation between actual HUMANS! 28
29 Starbucks lets patrons discover and solve conflict 29
30 RULE #2: ENGAGE 30
31 Mother Monster remembers the customer always comes first. Let your audience contribute to your success Billion YouTube channel views 30 million Facebook likes Queen of Twitter. Appreciate the importance of your current network. Finding new connections should be secondary to maintaining existing relationships 31
32 SOCIAL NETWORKS RULE Your brand is what Google says it is, Not what you say your brand is - Chris Anderson, Wired Magazine editor 32 2
33 2011 storm with 80 mph winds 900,00 customers without power COMMONWEALTH EDISON: THE USE OF SOCIAL MEDIA IN DISASTER RESPONSE Diermeier, D; Petrella, D
34
35 Strong consumer involvement; Brand partially built on consumer perceptions which help create image (Vigneron & Johnson, 2004). Brand relationship source of meaning to person who engages it (Fournier & Yao, 1996). Brand represents social & cultural meaning by consumers to fulfill social goals In consumer-brand relationship Brand is partner in a dyadic relationship with customer (Fournier, 1998; J. Aaker et al., 2004; Aggarwal, 2004). 35
36 GOOD NEWS BAD NEWS 9 16
37 WHY SOCIAL POWER IS IMPORTANT METCALF S LAW The Value or Power of a Network increases in proportion to the Square of the number of Nodes on the Network BUT JUST ADD = = 121 Network can quickly mass members so a one time bad experience can reach 1000s of consumers in minutes 37
38 UNITED BREAKS GUITARS web utube TO NOT PAY ATTENTION TO SNW IS LIKE SWIMMING WITH SHARKS NO COMPANY IS SAFE FROM EVEN A SINGLE UNHAPPY CONSUMER $150 over 100 million people learned Dave s story Estimated video cost United Airlines over $180 million. 38
39 youtube
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41 INNOVATIVE COMPETITIVENESS Rethinking the International Business Model Thank You KIP BECKER 41
INNOVATIVE COMPETITIVENESS Rethinking the International Business Model
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