The Future of Marketing A Guide for Marketing Managers, Analysts, and Developers
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1 The Future of Marketing A Guide for Marketing Managers, Analysts, and Developers Sarah Longfors Web Developer marketing + technology sundog fax: th st s floor 6 fargo, nd
2 Companies use marketing in many ways: to remind customers of promotions, product releases, upcoming events, company changes and even to alert consumers about product recalls. While marketing is an efficient way to contact customers, businesses are realizing that it s not the only way. Many experts are debating whether this shift will be the demise of marketing. However, there are still a number of ways for businesses to utilize marketing. The following discusses arguments against marketing and provides insights on how companies can transform their use of , so that it can remain an effective sales tool. Is marketing really dead? Nielsen recently published an article (What Americans Do Online: Social Media and Games Dominate Activity, 2010) stating that usage was down a shocking 28% between June 2009 and June When word of this data got out, both marketing companies and their clients panicked. If more than a quarter of users were no longer checking their s, businesses were bound to discontinue use of marketing. Could communication really be becoming less valuable, despite the fact that it was such a profitable campaign technique in the past? It s clear that how often we check hasn t changed. How we check it, has. According to a report from ExactTarget and CoTweet (Social Mythbusting, 2010), the answer is no. Yes, their research showed that usage dropped by 28%. However, the study only measured people who accessed through a computer. It did not include those who accessed their via a mobile device. Considering the statistics for consumers accessing using mobile devices increased from 37% to almost 42% during the same time period, it s clear that how often we check hasn t changed. How we check it, has. Others have alleged that marketing will lose value as social networks become more popular. They suggest young people will begin to use their accounts on social mediums like Facebook and Twitter, instead of , for communicating. What those skeptics don t realize, is many people consider , to be a social medium. Jeremiah Owyang believes is actually the largest social medium ( The First and Largest Social Network, 2009), saying: Let s run the numbers Hotmail has 375 million active accounts worldwide, Yahoo mail is reported at 280 million, and Facebook only has 200 million [people] make the mistake that Facebook is the largest social network to date, [when] in reality, the largest social networks are . Since the time of Owyang s quote, Facebook has grown at an amazing rate, bringing its number of users to around 500 million. However, even with its user growth, the social site may not be as familiar to people as . Think about it like this: you may know some people who don t have a Facebook account, but it would be difficult to find someone who doesn t have an address. Everyone from elementary school children to the elderly use to communicate. is universal. Its ubiquity is what continues to make it an excellent medium for businesses to correspond instantly with their customers. How marketing has changed While marketing remains an effective tool, it is certainly not produced or used the same as it once was. In the past, s were a collage of newsletter content, promotional material and company information sent in one ugly, confusing message to a company s entire subscription list. Businesses used messaging to communicate absolutely everything they needed to say, to as many people as possible, by sending the message to anyone who expressed interest in receiving thier s. In today s marketing world, this sort of strategy if one can call it that would hit the trash folder as soon as it was received. Thankfully, marketing has evolved. Today, many companies have opted to create personalized messages for their subscribers and send s that contain only 2
3 promotions or information the subscriber would find relevant. They incorporate dynamic content, acknowledge each customer by name, and often includes purchase preferences or future purchase suggestions. Companies are taking a page out of the playbook of your favorite coffee shop using to show you that not only do they know your name, but they know your tastes as well. Personalization tactics are good for the business-customer relationship and bring added revenue from the suggested up-sell items. Companies use personalization to establish consumer trust. They also use analytics knowledge of each person s buying patterns, to determine what suggestions a consumer is most likely to buy. Because the consumer marketing is also changing as social media changes the ways consumers are able to share information with each other. trusts that the company knows their preferences, he or she is more likely to follow through on the purchase. And, with each purchase, businesses learn more about customers buying tendencies. All the gathered information molds the way future communication is personalized, making the relationship a mutually beneficial one for both the company and the customer. marketing is also changing as social media changes the way consumers are able to share information with each other. Businesses thrive on positive word-of-mouth advertising, and in the past, companies could encourage subscribers to share content in only two ways: by enabling Forward to a Friend functionalities, where users were asked to enter the addresses of people they wanted to share with or by asking them to use the conventional forward feature. With the Forward to a Friend option, there was no guarantee that the supplied names wouldn t be permanently added to a subscription list. Conversely, if the conventional forward feature was used, the layout structure of the marketing was susceptible to being lost or altered. When the finally reached a friend s inbox, the design looked terrible. Since businesses thrive on word-of-mouth advertising, combating these risks was necessary. Time has provided a solution with the creation of a third sharing option: the integration of social media. Companies are now adding social-forwarding capabilities to their content to give subscribers an easy and instant way to pass information to friends, family and people with similar interests via their accounts on Facebook, MySpace, Twitter, etc. All it takes is the click of a button for people to promote articles, share promotions or link to websites. These advances in social network sharing have made company s messages viewable by hundreds of potential buyers stemming from just one subscriber s social network. The fact that all this sharing requires minimal time in terms of production, is an added bonus. Why we should still invest in marketing The way we perform marketing has changed, especially in terms of content sharing. Some have come to the conclusion this means we should cut out the middle man, rid ourselves of marketing, and instead, focus our efforts on social networks alone. But, there s one thing marketing has that social networks don t, and that s analytics. It s true that Facebook and Twitter have effective tracking capabilities, but with , customers can share information offered to them in the original format, and companies can track that chain of sharing back to the first link. For example, if a customer responds particularly well to a promotion with extra incentives, they re likely to forward the entire message on to their friends. This can be done in the conventional way by forwarding the , or through a Share with a Friend option through the provider. Even as the continues to be forwarded, the capabilities of analytics will determine which particular users to attribute the sharing to, and who the sharing originated from. 3
4 If businesses remove marketing from future campaigns, it may be more difficult to track which customers are sharing your information and with whom. Also, Facebook and Twitter enforce character limits, so although the main points may come across to a larger, more-diverse audience, the condensed content may not reflect the feel or message you intended and could leave out pertinent information. Remember to personalize s as much as possible, make your subscribers feel like you know them on a personal level. Clearly, businesses don t need to and in fact shouldn t drop marketing from their communications strategies. They need to adapt to the changing needs of their current and potential target audience. To make sure marketing campaigns show high returns, keep subscriber lists up-todate and include as much consumer information about each user as possible. Allow for different interface options, such as social forwarding or mobile views. s that can be easily shared and properly viewed whether in full-screen or via mobile devices will be more successful than they might otherwise be. And, remember to personalize s as much as possible, to make your subscribers feel like you know them on a personal level. They will be more likely to share your business s information and increase awareness of your brand and potential sales. In a blog from Blue Cedar Marketing (Is Marketing Dead? Hardly, 2010), Robb states: marketing may indeed have become more challenging, but the ROI continues to be great the best, say most reports. The truth is, marketing isn t dead, but you do have to be savvier about it. Companies that consider the way marketing is evolving, and then develop and implement new strategies to adapt to those changes, will find their campaigns continue to be a profitable and measurable way to interact and campaign to customers. 4
5 Sources: The First and Largest Social Network, Web Strategy, July Retrieved May, 2010 from Is Marketing Dead? Hardly. Blue Cedar Marketing, May 17, Retrieved June, 2010 from Social Mythbusting, ExactTarget and CoTweet, October 27, Retrieved November 8, 2010 from What Americans Do Online: Social Media and Games Dominate Activity, Nielsen Wire, August 2, Retrieved November 8, 2010 from 5
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