Changing marketing communication landscape

The New Age Economy

“It’s the economy stupid”
James Carville ,1992

“It’s a people driven economy stupid”
Erik Qualman, 2009

12/25/2011 Vinish Joshi@yahoo.com

What is Marketing

Marketing is
creating value
for customers
in exchange
transactions.


Plus ηa change, plus c'est la mκme chose.
In times of great change it is important to reflect upon
what has changed and what remains unchanged


Media

Consumers Brand


Media

Information Technology

Consumers Brand

Distribution Consumption


Media
 Advertising coming closer to information
 Importance of ‘when’- Just in time instead of just in case


Consumers Brand
Interactive & In –Control  Transition from being seller
Networked & Mobile to collaborator, advertiser to
Conscious experience creator



Media

Creation , Access & Divergence &
Sharing Convergence

Consumers Brand
Interactive & In –Control  Transition from being seller
Networked & Mobile to collaborator, advertiser to
Conscious experience creator

Interaction with Brand
Multi-Channel Interaction with Media


Media

Creation , Access & Divergence &
Sharing Convergence

Consumers Brand
Interactive & In –Control
Networked & Mobile
Dialogue  Transition from being seller
to collaborator, advertiser to
experience creator
Conscious

Interaction with Brand
Multi-Channel Interaction with Media


Opportunity


New Age Brands


Information
Create, Access & Share


 power.

 empowers people

 makes consumers well informed.
 more information and more
choices

 more demanding, more discerning
and more connected

 the behavior is information based
enabled by technology

280 exabytes of information created in
2010, which is 50 times more information
that was created in the history of
mankind

Estimated to be 667 exabytes of
information to created per day by 2013


Technology


Impact of Digital technology on
Education and e-learning

 Opened‐up learning to multiple delivery methods - in‐campus, distance learning ,e‐Learning and m-learning
 iPhone and iPad stamps their marks on the education sector
 e-Books enter mainstream and students start embracing

Impact of Digital technology on Politics
and Finance

 Perfected online fundraising by using social media tools Embedded hardware & service solutions in the finance
 Changed political fundraising & electioneering forever sector
Raised $45 million online  Enabled investors an ability to crunch, analysis & store
data
 Lifeline for mutual & hedge funds, insurance brokers,
banks & finance institutions
U.S. President: Barak Obama
Mayor : Michael Bloomberg

Impact of Digital technology on Music
and Social Engagement

Salvaged the music business from declining CD’s sales Super‐sized dating possibilities at Harvard
 Introduced iPod music player, iTunes digital music software, University
the iTunes Store and iPad  Transitioned into a global social media
phenomenon
 Delivered platform to connect and expand
friend/biz contacts
Apple CEO Steve Jobs Facebook: Mark Zuckerberg

Impact of Digital technology on Video
and Information Search

Revolutionized the video‐ sharing business Turned 1 followed by 100 zeros into cash cow (Googol)
Ignited a cadre of citizen video producers worldwide Monetized the Internet by linking advertising to search
 Owns # one search engine, online mapping, Gmail et alia

Google: Sergey Brin and Larry Page

YouTube: Chad Hurley, Steve Chen & Jawed Karim Vinish Joshi@yahoo.com
12/25/2011

The biggest challenge is not technology,
but changing consumer behavior

Majority of software is designed for the
unconnected world.

Every aspect of human behavior that
was spent in offline world will shift
to online world.


Technology is not the tool, it’s the business

New technology is tearing down old ways of
doing business.

 Apple -went from 5 inch floppy disk to 3 and half inch floppy disk with Mach. Sony
invented it and Apple innovated it.It has done similar thing with iPod and recently
replacing Adobe Flash by HTML5.

 Tesco - UK’s leading groccery chain developed mobile application that allows
customers to view and purchase products at virtual stores installed in subways.
Tesco due to it’s virtual stores increased sales by 30% and Liberated the
traditional boundaries between marketing and commerce channels

Tesco Video


Divergence & Convergence

Divergence of multiple devices

Convergence of content on all devices
Consumers don’t see brands in terms of
touch points, they see, hear and feel the
collective brand experience regardless of
where and how its being delivered

It’s easier than ever to reach a large audience,
but harder than ever to really connect with it.


Leveraging Technology to Connect

Engage Emotions Enable Experiences

Brands Leveraging Technology
An estimated 70 million viewers watched the first debate. People who watched the
debate on television overwhelmingly believed Kennedy had won, while radio listeners (a
smaller audience) believed Nixon had won

Nixon refused makeup for the first debate, and as a result his beard stubble showed
prominently on the era's black-and-white TV screens. Kennedy, by contrast, rested and
prepared extensively beforehand, appearing tanned, confident, and relaxed during the
debate. Kennedy was ‘Telegenic’, he spoke in short sentences and was extremely good
looking

Video

Barack Obama gets the Internet and social media the way that Kennedy got TV. Kennedy
was built for TV and Obama is built for the Internet age.

He had 3 million online donors during the election and 2 million people were passionate
enough to create profiles on my.barackobama.com.


Technology Trends

Location - Social Computing – Pervasive Display – Universal
Connectivity - Cloud – Data – Natural user Interaction.

Start with customer experience and work backwards to the
technology.

Need to bring science to the art of marketing by leveraging
technology

Find different ways to make connections
with consumers using technology

Increasingly consumers don’t shop in one
channel, they shop in multiple channels


We have the ability
of over-estimating
the short term and
under-estimating
the long term

Technology has Technology has
allowed people to be changed the balance
extremely creative of power in favor of
consumers. In future
we will live in a digital
society

Distribution


Transformative shifts in Marketing

Phase1 – Music goes digital from LP to CD. World of music Phase2 – Challenge for
doesn’t change much same model of conceptualization, marketer as distribution
creation and distribution becomes free

Phase1 – Books goes digital from Britannica to Phase2 – Content becomes decentralized that
CD. World of Books doesn’t change much changes centralized concept of Britannica


Distribution
 Consumers don’t pay for paper, they pay for
content & editorial and in future people will
consume content and editorial on digital
platforms.

 Publications will save on printing and
distribution cost but they have to find a way
to create value for people to pay for the
content and editorial on digital devices.
Air Ticket , Hotel ticket, greeting cards ,
Matrimony, Job Portals, Movie tickets etc.


Internet has become
world’s largest
Information,
Communication and
Distribution
platform


Consumers can
bypass traditional
distribution channels

New distribution Entry Barriers for
models developing start-ups is lower
every day than ever


Consumer

Increasingly future of brands will be
shaped by consumer emotion
and experience

Starbuck sells experience and not coffee

Interactive and in Control

 They are talking to each other
 There is a vast –self answering
community on social networks
 Consumers want their voice and opinion
to be heard

Networked and Mobile
 Uses technology to create, share and
distribute information

Conscious
 Demands authenticity and transparency


Expectations from Brands
Consumers look for mutually
beneficial relationship which results
from value.

O.P.E.N
 O: On –Demand –accessible, self-directed &
Instantly gratifying experiences

 P: Personal –meaningful interactions

 E: Engaging –relevant emotional experiences

 N: Networked –the exponential potential of
consumers & communities


Interaction with Media

 We like to Know  We Like to Connect

 We Like to See  We Like to Tweet

 We Like to Play  We Like to Buy  We Like to Collaborate


All that matters is
what customers say
about the brand

Think about how
Brand success isn’t much our life is
the result of choices driven by peer
in media but the recommendation.
choices in mindset We leave nothing to
chance

Companies like Apple
and Google start by
answering questions
like ‘what incredible
benefit they can give
to customers’

Solve consumer
It is not a one-way
problems
street, it is about
building relationships


Consumption

Seeking return path with brands to engage

Consume media
Information
Communication
Entertainment
Community/Networking

Interact with brands:
Search
Compare
Select , Buy
Share products and services

Consumers look for seamless user experience
across platforms.

Challenge is to make user experience
seamless.

Moving from brand
awareness to brand
engagement

Increasingly brands
Content ( Brand
are focusing on
Narrative) is only as
context because
good as the Context
relationships are
( What it does for
valued and limited by
consumer) it creates
nature

Consumers
remember 10% of
what you say and
90% of what they say

Let go “above the
Less about us and line, below the line”
more about them marketing mindset
approach


Transformative shift in Marketing

Earlier Now
 Information was scarce Information overload

 Single channel Buying Multiple Channel Buying

 Advertising was one way Consumers have return path

 Media consumption at set time Anytime, Anywhere

 Media owned content Media and consumer owned content

 Feedback one to one Shares experiences: Many to Many


Market of one

Relevance and Choice

Customers are Social

Infinite Scale
Customers have
more information

Co-Creation and
Collaboration

New Age Marketing

Marketing Communication

Pre-digital Digital Analytical
Command and Control Interact and Measure Connect & Collaborate
Marketing mindset Marketing mindset marketing mindset


Pre-Digital (Command and
Control Marketing mindset)


Pre-Digital

Approach

 Creative was driving force with thought process
Creative Driven
 to build beautiful creative design that gets
people’s attention People Enabled

 and then get people enabled to meet objectives


Create and Distribute

Media handed down from on high…
…. along with its general toneJoshi@yahoo.com
12/25/2011 Vinish
and attitude

Media Consumption & Marketing Touch
Points- Finite

Media consumed at set
schedule and place

The way we interact with
companies and brands
 Limited consumer checks and
references
Experience sharing and feedback
12/25/2011
was one to one
Vinish Joshi@yahoo.com

Consumer


Digital (Interact and Measure
Marketing mindset)


Digital


Approach
Digital
 Focus is on performance with thought process

 can we measure the initiative ? Performance
Driven
 what technologies do we need to support Technology
that initiative ? Enabled

 what strategies will we need to meet our strategic
objectives ?

 now let’s build the creative

Creative has now become the fourth step in the new marketing approach
thought process

Create and Distribute


Media Consumption

Blogging


Consumption happens anytime, anywhere

 Marketing recognizes and differentiates
between “ yet another talk channel”
versus the desire to “enable social
participation”.

marketers are competing
to make connections.

Years to reach 50 million users

38 Years 13 Years

4 Years 3 Years

9 Months

This and That

New use
of media
Traditional
Traditional
place
place
of media Traditional
of media
place
New use
Traditional place of New use of media of media Traditional
Traditional of media
Media in everyday life in everyday life place
place Traditional of media
of media place
of media New use
New use
of media
Traditional of media
It is not Traditional
place Traditional Traditional
Like this place
of media place place
of media
of media of media

2008 2009
2008 2009 2010 2010

New Media has not replaced traditional
media but has instead joined them

Analytical (Connect & Collaborate
marketing mindset)

Thought process is increased collaboration and seamlessly
merging offline and online marketing strategies.

Listen--------- Participate-------Collaborate


We’ve turned the corner

Increased use of existing data and predictive
models to make marketing decisions

Listen (Getting into minds of consumers.)

Marketers are growing more ears with focus
on Insights.

One way of doing it is what Apple does : “Looks at what sucks in
market and makes it better”.

Example: Intersection of trends led to insights on iPod.

Insight: One trend was personal music on the move ( Walkman
was very successful) and the other trend was digital music and
the convergence of these trends was an opportunity.

Innovation: The three innovation created by iPod was 1) Size:
which was pack of cards 2) Storage: which was 10,000 songs 3)
User could buy and download music legally.


Participate
Trying to understand what the customers are
trying to achieve and how does my brand fit
into that conversation.

Example Microsoft Home Magazine- It doesn’t talk about
Microsoft products. It talks about hobbies, homes, memories
. The whole conversation is around activities and goals and
how technology fits in to that.


Participate


Participate

Thought is to lead in
with customer activity
and goals and follow
with products.


Collaborate

Recognize and differentiate
between “yet another talk channel”
versus the desire to “enable social
participation”.


Collaborative Engagement
My starbuckidea.com which allows customers to
come and give suggestions to Starbuck on
operations or products

Collaborative Idea
Nokia’s concept lounge on design ,on ideas, on
new age mobile devices or on ways to interact with
mobile devices

Collaborative Products
Threadless allows customers to come in and design
their own T-Shirts and customers get royalty if their
design are accepted or sold (Video)

Collaborative advertising
I Pod touch ad created by Nick Haley in UK. (Video)

Collaborative distribution
Southwest airlines embed widgets called ‘ding’ on
your desktop by which they make you travel agent
and push offers directly to you


Volkswagen UK Car Configurator
The entire Volkswagen car range
• Ninety million variations
• Constantly updated prices
• Save and send by email, Facebook, and more
• Request a test drive
• Local retailer locator
• Optimised for iPhone & iPod touch iOS5


What is your value proposition
Why should people do business with me?

Why they should buy my products?

Why Me ?


Develop an understanding of why
people buy a particular brand?
Three major problems that needs to be addressed
by every marketer:

 Time: Greatest challenge most people/
consumers have is that they are “time poor”.
‘More to do and less time to do it’. Build
services/ infrastructure around saving time

 Clutter: Marketing Clutter (Create unique selling
proposition and consumer value to stand out of
clutter) & Media ( Personalization and
interactivity- give consumers return path)

 Trust: Create consumer trust in your brand
through consistent delivery across functions



Marketing Process
Sensing Value: Bringing customers inside the
organization and understanding the opportunities and
threats in the environment

Defining Value: Converting these insights into value
proposition that is compelling for customers


What is that you offer that no one
else does
What is that my customers cannot get
anywhere else?

How easily can someone imitate what I do?


What is that you offer that no one else does
Marketing is creating value for customers in exchange
transactions.
Functional Value: What product or service does for customers, it’s
performance, it’s durability, it’s reliability, it’s innovativeness related
to feature and performance of product.

Consumer loyalty is towards the functional features of the model
PC like Dell/HCL

Economic Value: Relates to time and money the product saves or
creates for customers.

Consumer loyalty is towards price or deal
Lemon tree, South west airline

Emotional Value : Is the value customers get out of interacting with
products and services. Sense of affliation, sense of independence,
sense of self- expression etc.

Consumer loyalty is towards the brand
12/25/2011
Apple, BlackBerry, minicopper etc. Vinish Joshi@yahoo.com

What is that you offer that no one
else does

Marketing Process

Realizing Value: Offering product and services that are
relevant and compelling for customers

Delivering value: Taking this offering to customers
through distribution channels and partnerships


Do we know your value proposition
If I were in market place to buy what you
have to sell, will I think of you first, second,
third or not at all?


Do your customers know your
value proposition
Brand choices are GETTING shaped by two simple
questions?

“Where am I in this story?”
“What have you done for me lately? ”
 Communicating (Tell and Sell marketing) to
Connecting (Discuss with)

 Selling (communication with brand message) to
Positioning (consumer value)

 Transition from being seller to collaborator,
advertiser to experience creator

Do your customers know your
value proposition

Marketing Process

Communicating Value: Articulating value
proposition and position in the market
place. How you build brands

Sustaining Value: Continuous improvement
of customer experience


Value is not
increasingly what you
deliver to customers.
It is increasingly what
you co-create with
customers

Marketers are
changing from
producing “ads with
the brand message”
Elevate the value
to “Producing
proposition to
consumer value”
emotional value


Key Components of Marketing Plan

RAM


Relevance

Relevant product :from “nice to have” to
“must have”
 Don’t fall in love with your product, fall in love with
what your product does for people

 Content ( Brand Narrative) is only as good as the
Context ( What it does for consumer) it creates .

Relevant Audience Segments:
 Demographic, Psychological( Attitude, Needs and
Motives) & Behavioral ( Purchase and transaction)

Relevant communication and media channels
 Bring advertising closer to information
 Importance of ‘when’- Just in time instead of just in
case

Automation

 Marketing is the new finance

 Focus shifting from number of leads to
quality of leads. Filtering information will
be important as we move to digital society

 Understanding ‘who is where , when’

 Integrating all marketing tools deployed
into one unified system and matrix for
measurement, to improve overall ROI and
workflow


Consumer Insight ( Getting into minds of
consumers)

Fresh and non-obtrusive way of understanding
customer need, behavior or frustrations.

It’s about walking in customer shoes
but first you have to take off your own.


Elements of consumer Insights
 Data Exploration ( highlights strengths and weaknesses of
data)

 Profiling and Segmentation
 Profiling Answers ‘who your customers are’, ‘what will
and will not interest them’
 Segmentation will group customers according to their
needs and preferences

 Modeling
 It turns insights into actionable marketing strategies

 Evaluation
 Continually monitor all activities to get better results


Media
 Increasingly future of brands will be shaped by
consumer emotion and experience

 Quality of engagement and not reach is important

 Media needs to be multi-dimensional because
customers live multi-dimensional lives

 Advertising should come closer to information both
in terms of content & context

 Nike Plus: Notion is that Nike becomes the
enabler of your better running experience..
Thought is to engage your customer and build
connection.

In a world of many
to many attention is
the biggest cost

Every brand is a
potential platform
on which consumers
Understand consumer could tell their story
preferences and bring
advertising closer to
information


Key to marketing is you
don’t create markets,

you serve a market that is
so thirsty that it says ‘I want
to get that drink’

and you give them drink
more than once.


Changing marketing communication landscape

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