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The Future Of Marketing

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Planning for Future Trends Richard Storey South West Regional Ambassador Small Business Community

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Planning for the Future <ul><li>What do the future trends look like? </li></ul><ul><li>What are the opportunities? </li></ul><ul><li>How will these effect your business? </li></ul><ul><li>How do you plan for these? </li></ul><ul><li>Questions & Answer session </li></ul>

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What is marketing? Marketing is ‘the management process responsible for identifying, anticipating and satisfying customer requirements profitably’.

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From monologue to dialogue <ul><li>Traditionally marketers have broadcast messages designed to correspond with each stage of a buying cycle </li></ul><ul><li>Primary role of marketing was to conduct, (or squeeze!) customers through a funnel on their way to a point of sale. </li></ul>

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Now routes to market look more like this!

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Customer conversations <ul><li>Over the past few years have witnessed </li></ul><ul><li>the first examples of true two-way </li></ul><ul><li>marketing “conversations” </li></ul><ul><li>Driven by innovation, competition and major shifts in consumer behaviour, the dialogue between brands and their customers is replacing the traditional marketing monologue. </li></ul><ul><li>We live in a transparent world; words turn into actions in seconds. </li></ul>

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What are the Future Trends? <ul><li>Changing Consumer Attitudes </li></ul><ul><li>Quality not quantity </li></ul><ul><li>Reliability and value for money </li></ul><ul><li>Supplier integrity and trustworthiness </li></ul>

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What are the Future Trends? <ul><li>Reputation Management </li></ul><ul><li>Protect your assets – especially your brand and image </li></ul><ul><ul><li>Hard to build but easy to destroy </li></ul></ul><ul><li>Train staff to understand and project your culture and values </li></ul><ul><li>Develop and deliver a consistent customer experience </li></ul><ul><li>Focus attention on controllable communications </li></ul><ul><li>(advertising, PR, website, newsletters etc) </li></ul><ul><li>Highlight potential dangers of unguarded use of social media </li></ul>

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What are the Future Trends? <ul><li>Media Choices </li></ul><ul><li>Online versus offline </li></ul><ul><li>Identify what communication channels </li></ul><ul><li>your customers most frequently use </li></ul><ul><li>Plan media choice to optimise targeting </li></ul><ul><li>Segment your markets </li></ul><ul><li>Use different messages and media for </li></ul><ul><li>different age groups </li></ul>

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What are the Future Trends? <ul><li>Return on Investment and measuring it </li></ul><ul><li>80% of marketing spend is wasted – find out which 20% isn’t </li></ul><ul><li>All forms of promotion should be seen as an investment – not a cost </li></ul><ul><li>Measure the value of new business won - not volume of enquiries - against promotional costs </li></ul>

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What are the Opportunities? <ul><li>New Technologies </li></ul><ul><li>Segmenting your market </li></ul><ul><li>How do I stand out in the crowd </li></ul><ul><li>Global markets </li></ul>

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New Technologies <ul><li>Low carbon businesses </li></ul><ul><li>Renewable energy </li></ul><ul><li>Improved materials recovery </li></ul><ul><li>and reuse technologies </li></ul><ul><li>Technologically advanced </li></ul><ul><li>labour and time saving products </li></ul><ul><li>and services – we will become increasingly time poor and financially constrained </li></ul>

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Segmenting your market <ul><li>Understand your markets </li></ul><ul><li>Develop and apply a different marketing approach to each segment </li></ul><ul><li>Focus on profitable segments and discourage business from unprofitable sources </li></ul>

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How do I stand out in the crowd <ul><li>Differentiate your product or service </li></ul><ul><li>Exceed customer expectations </li></ul><ul><li>Innovate – this may mean </li></ul><ul><ul><li>Doing something entirely new </li></ul></ul><ul><ul><li>Doing something old but in a new way </li></ul></ul><ul><ul><li>For example -digital replacing analogue </li></ul></ul><ul><ul><li>Rediscovering something that has been lost and re-introducing it </li></ul></ul><ul><ul><li>For example – personal service (remember that?) </li></ul></ul>

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Global markets <ul><li>The internet and e-commerce solutions provide the opportunity to become a global business </li></ul><ul><li>21st century facilities for moving goods across continents means that trading globally is no longer financially prohibitive for good added value products </li></ul><ul><li>Some markets like imported national products – Americans like English products </li></ul><ul><li>Japanese like Scottish whisky </li></ul>

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What about Social Media? <ul><li>Requires new marketing etiquette: </li></ul><ul><ul><li>Conversation </li></ul></ul><ul><ul><li>Courtesy </li></ul></ul><ul><ul><li>Transparency </li></ul></ul><ul><ul><li>Genuine </li></ul></ul><ul><ul><li>Sharing </li></ul></ul><ul><ul><li>Values </li></ul></ul>

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How will these affect my business? <ul><li>Business Success? </li></ul><ul><li>Business Failure? </li></ul>

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Business Success? Ways to achieve it <ul><li>Monitor and re-evaluate your product/service offering </li></ul><ul><li>Shadow your competitors – develop competitive advantage </li></ul><ul><li>Build a superior reputation; </li></ul><ul><ul><li>A trusted brand </li></ul></ul><ul><ul><li>An ethical approach </li></ul></ul><ul><ul><li>A customer-centric policy throughout the business </li></ul></ul><ul><li>Exceed customer expectations </li></ul>

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Business Success? Ways to achieve it <ul><li>Focus on benefits not features </li></ul><ul><li>Remember that people do business </li></ul><ul><li>with people not companies or organisations </li></ul><ul><li>Remove barriers/obstacles to buy – make it easy to buy </li></ul><ul><li>Use third party endorsements to build an image, reliability and trustworthiness </li></ul><ul><li>Demonstrate why your business should be the preferred choice </li></ul><ul><li>Don’t be sentimental about unprofitable customers </li></ul>

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Business Failure? What does it look like - what are the signs? <ul><li>Lose touch with your customers/markets </li></ul><ul><li>Sell on price and volume and lose sight of margin and added value </li></ul><ul><li>Fail to innovate/introduce </li></ul><ul><li>new or improved products to </li></ul><ul><li>remain competitive and relevant </li></ul>

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Business Failure? What does it look like - what are the signs? <ul><li>Create unsustainable marketing budgets </li></ul><ul><li>Rely on customer churn to keep your business growing – finding new customers will invariably cost much more than keeping established ones </li></ul><ul><li>Fail to identify customers who are costing you money and draining your profits </li></ul>

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Start by creating a plan <ul><li>Integrate marketing into your business </li></ul><ul><li>Decide on what you want to achieve? </li></ul><ul><li>Decide what trends will have an impact? </li></ul><ul><li>Decide how you can meet these </li></ul><ul><li>Review resources, skills & capability and fill the gaps </li></ul><ul><li>Create a marketing plan </li></ul>

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<ul><li>&quot;I would not say that the future is necessarily less predictable than the past. I think the past was not predictable when it started.“ </li></ul><ul><li>Donald Rumsfeld </li></ul>

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Best of luck for the future! Thank you

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Any questions?

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Find Out More The future of Marketing www.cim.co.uk/filestore/resources/agendapapers/futureof marketing.pdf Regional Director- Christine Boswell-Munday Christine [email_address] Visit our stand or visit www. cim.co.uk

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The Future Of Marketing

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An (Old) Definition Of Marketing <ul><ul><li>If you can get the Mayor to laugh about it – that’s PR </li></ul></ul><ul><li>And if you planned the whole thing ... that’s Marketing !! </li></ul><ul><ul><li>The circus is coming to town! </li></ul></ul><ul><ul><li>If you paint a sign saying: “Circus is coming to the fairgrounds this Sunday” – that’s Advertising </li></ul></ul><ul><ul><li>If you paint the sign on the back of an elephant and walk him through town – that’s a Promotion </li></ul></ul><ul><ul><li>If the elephant walks through the Mayor’s flower bed – that’s Publicity </li></ul></ul>

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Marketing Today <ul><ul><li>In the modern world, we could add: </li></ul></ul><ul><ul><li>If you spread the word via your website or blog, or using Facebook and Twitter, perhaps on your iPhone – that’s Social and Digital Media! </li></ul></ul>

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Today … <ul><li>We’re witnessing the transition from an analogue world to one that is almost entirely digital </li></ul><ul><li>Soon ALL content will exist in digital form, eg OED </li></ul><ul><li>Digital technology comes with a powerful promise:- the ability to reach exactly the right audience, at exactly the right time and place, with exactly the right message </li></ul>

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Today … <ul><ul><li>Things are changing: </li></ul></ul><ul><li>… from TELL & SELL – Monologue Marketing </li></ul><ul><li>… to INTERACTIVE – Dialogue Marketing </li></ul>

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Brands and Branding won’t change <ul><li>However......your brand is no stronger than your reputation – and will increasingly depend upon what comes up when you are ‘Googled’ </li></ul>

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Brand <ul><li>What is your brand? </li></ul><ul><li>Collectively, it’s what people say, feel or think about your product , service or company </li></ul>

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Branding <ul><li>What is branding? </li></ul><ul><li>Using marketing to influence people’s attitudes towards, and perception of, the brand </li></ul>

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Brand Loyalty <ul><li>Brand loyalty will be earned over time through consistent, positive experiences and engagements with a product, service or company </li></ul><ul><li>“ Treat me well, and I’ll return the favour by spreading the word for you and coming back to you.” </li></ul>

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<ul><li>“ Consumers will increasingly look for brands with a social purpose… Brands and businesses that fail to integrate consumer needs with societal wellbeing will struggle to grow in the future.” </li></ul>

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<ul><li>“ Consumers will increasingly look for brands with a social purpose… Brands and businesses that fail to integrate consumer needs with societal wellbeing will struggle to grow in the future.” </li></ul><ul><li>Paul Polman, Chief Executive, Unilever </li></ul>

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<ul><li>“ On the one hand, it seems like everything is changing. On the other hand, one very important dynamic has not changed… </li></ul><ul><li>… the customer is boss.” </li></ul>

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<ul><li>“ On the one hand, it seems like everything is changing. On the other hand, one very important dynamic has not changed… </li></ul><ul><li>… the customer is boss.” </li></ul><ul><li>AG Lafley, Chairman of the Board, Proctor & Gamble </li></ul>

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<ul><li>“ Remember three age-old marketing pillars: </li></ul><ul><li>1) show humility when you talk with customers; </li></ul><ul><li>2) keep the communications simple; </li></ul><ul><li>3) what customers want above all is VALUE.” </li></ul>

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<ul><li>“ Remember three age-old marketing pillars: </li></ul><ul><li>1) show humility when you talk with customers; </li></ul><ul><li>2) keep the communications simple; </li></ul><ul><li>3) what customers want above all is VALUE.” </li></ul><ul><ul><ul><ul><ul><li>Vittorio Colao, Chief Executive, Vodafone </li></ul></ul></ul></ul></ul>

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Where Are We Now? <ul><li>Newspapers </li></ul><ul><li>Television </li></ul><ul><li>Radio </li></ul><ul><li>Cinema </li></ul><ul><li>Direct Mail </li></ul><ul><li>Online/Social Media </li></ul>

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Newspapers <ul><li>UK circulation has fallen 25% between 2007 and 2009 (Organisation Economic Co-operation Development figures) </li></ul><ul><li>USA -30%; Italy -18%; Canada -17% </li></ul><ul><li>Why? </li></ul><ul><li>Growth of the internet/online news free of charge, fragmenting media landscape </li></ul><ul><li>Reduction of bulk distribution to hotels/restaurants </li></ul><ul><li>Reduction in ad revenue = price increases </li></ul>

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UK Newspapers <ul><li>The last 10 years … </li></ul><ul><li>The Sun 3,451,746 2,979,999 down 14% </li></ul><ul><li>Daily Mail 2,421,795 2,092,643 down 14% </li></ul><ul><li>Daily Mirror 2,180,227 1,248,919 down 42% </li></ul><ul><li>Daily Star 725,552 809,992 up 12% </li></ul><ul><li>Daily Telegraph 974,362 681,322 down 30% </li></ul><ul><li>Daily Express 877,735 664,293 down 24% </li></ul><ul><li>The Times 678,498 503,642 down 25% </li></ul><ul><li>Financial Times 446,271 391,864 down 12% </li></ul><ul><li>The Guardian 424,132 286,220 down 33% </li></ul><ul><li>Independent 203,402 187,135 down 8% </li></ul><ul><li>(ABC - Daily circulation, July 2010) </li></ul>

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UK Newspapers <ul><li> The last 12 months… </li></ul><ul><li>The Sun 2,979,999 down 1.6% </li></ul><ul><li>Daily Mail 2,092,643 down 4.93% </li></ul><ul><li>Daily Mirror 1,248,919 down 6.12% </li></ul><ul><li>Daily Star 809,992 down 6.95% </li></ul><ul><li>Daily Telegraph 681,322 down 18.45% </li></ul><ul><li>Daily Express 664,293 down 8.94% </li></ul><ul><li>The Times 503,642 down 14.77% </li></ul><ul><li>Financial Times 391,864 down 4.88% </li></ul><ul><li>The Guardian 286,220 down 14.82% </li></ul><ul><li>Independent 187,135 down 6.62% </li></ul><ul><li> (ABC - Daily circulation, July 2010) </li></ul>

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Cinema Admissions <ul><li>173.5 million cinema admissions were recorded for the UK in 2009, up 5.6% from 2008 </li></ul><ul><li>However : </li></ul><ul><li>Cinema admissions have dropped well over 50% since the 1960s </li></ul>

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Radio <ul><li>Listening figures are at an all time high: </li></ul><ul><li>Total audience, Q2 1999: 42.9 million adults per week (89%) </li></ul><ul><li>Total Audience, Q2 2010: 46.8 million adults per week (91%) </li></ul><ul><li>Why? </li></ul><ul><li>More choice, digital radio, handheld smartphones </li></ul><ul><li>Ad revenue is down </li></ul>

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<ul><li>“ The next 50 years will see new forms of marketing, tailored in greater ways to our lifestyles. </li></ul><ul><li>“ Traditional advertising will remain on bus stops, through the iPhone, on television, via the internet and posted through our letterboxes. </li></ul><ul><li>“ But word-of-mouth marketing will forever be the most powerful way of persuading customers to join us. </li></ul><ul><li>“ It’s the product that really forms the future of marketing – as it has done in decades past.” </li></ul>

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<ul><li>“ The next 50 years will see new forms of marketing, tailored in greater ways to our lifestyles. </li></ul><ul><li>“ Traditional advertising will remain on bus stops, through the iPhone, on television, via the internet and posted through our letterboxes. </li></ul><ul><li>“ But word-of-mouth marketing will forever be the most powerful way of persuading customers to join us. </li></ul><ul><li>“ It’s the product that really forms the future of marketing – as it has done in decades past.” </li></ul><ul><li>Sir Richard Branson </li></ul>

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Future Technology

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<ul><li>“ We don’t ask consumers what they want. </li></ul><ul><li>“ They don’t know. </li></ul><ul><li>“ Instead we apply our brainpower to what they need, and will want, then make sure we’re there, ready.” </li></ul>

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<ul><li>“ We don’t ask consumers what they want. </li></ul><ul><li>“ They don’t know. </li></ul><ul><li>“ Instead we apply our brainpower to what they need, and will want, then make sure we’re there, ready.” </li></ul><ul><li>Akio Morita, Co-founder, Sony Corporation </li></ul>

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<ul><li>“ People don’t know what they want until you show it to them.” </li></ul>

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<ul><li>“ People don’t know what they want until you show it to them.” </li></ul><ul><li>Steve Jobs, Co-founder, Chairman & CEO, Apple </li></ul>

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Marketing In Tomorrow’s World <ul><li>20 media and technology changes that will affect marketing in the future … </li></ul>

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Eye Recognition TV <ul><li>Hidden cameras detect if eyes are on the screen </li></ul><ul><li>If they’re not, the sound and picture start to fade out after a given period </li></ul><ul><li>What happens during an ad break when someone leaves the room?! </li></ul>

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3D TV <ul><li>Here already! </li></ul><ul><li>Sport </li></ul><ul><li>Gaming industry </li></ul><ul><li>Medical advancement </li></ul><ul><li>Movies </li></ul><ul><li>Advertising </li></ul><ul><li>Next stop? </li></ul><ul><li>Smellovision ?! </li></ul>

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Interactive Posters <ul><li>Poster panel with in-built interactivity </li></ul><ul><li>Detects potential customer </li></ul><ul><li>Engages via animation or sound or both </li></ul><ul><li>Plays video clips </li></ul>

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Interactive Shop Windows <ul><li>Adds a touch-sensitive layer to a shop window </li></ul><ul><li>eg estate agents </li></ul><ul><li>After hours potential </li></ul>

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Bluetooth Proximity Marketing <ul><li>Bluetooth transmitter within business premises </li></ul><ul><li>Sends messages to passers-by with Bluetooth enabled phones </li></ul><ul><li>Cinemas, police messages, restaurants, etc. </li></ul><ul><li>Potential for any retailer </li></ul>

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2D QR Barcodes <ul><li>A QR (Quick Response) Code is a matrix barcode or two-dimensional code readable by QR scanners, mobile phones with cameras and smartphones </li></ul><ul><li>Point at coded message to translate it into a meaningful message/special offer/promotion </li></ul><ul><li>Offline marketing measurement </li></ul><ul><li>Free of charge (currently!) </li></ul>

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Location Marketing <ul><li>Gowalla, foursquare </li></ul><ul><li>Customers sign up free to the service and ‘check-in’ at each destination </li></ul><ul><li>Each time you check-in (using your GPS enabled phone) you receive points </li></ul><ul><li>The person with the most points for a venue becomes ‘the Mayor’ </li></ul><ul><li>A number of retail outlets are offering their ‘Mayors’ a particular discount </li></ul><ul><li>eg Dominos Pizza offers their Mayors a free “personal Pizza” on Wednesdays; Starbucks offers a discount; some hotels offer a 15% discount on their a la carte menu </li></ul>

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iPods, Then iPads, Next iStops! <ul><li>Bus stops with built-in digital information </li></ul><ul><li>All buses fitted with GPS locaters, tells your smartphone when the next bus is due </li></ul><ul><li>Can also provide weather forecasts, news updates, etc </li></ul><ul><li>Advertising opportunities </li></ul>

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Facebook <ul><li>Here today, even more popular tomorrow? </li></ul><ul><li>Launched 2004, currently 500 million+ users </li></ul><ul><li>Not the leading social network in Russia, China or Japan </li></ul><ul><li>Current value $33 billion?! </li></ul><ul><li>Average number of friends is 130 </li></ul><ul><li>Advertising opportunities, eg Leigh Court wedding venue – ‘Single’ to ‘Engaged ’ </li></ul>

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Spotify <ul><li>Over 8 million tracks and counting </li></ul><ul><li>Create playlists – simply drop and drag </li></ul><ul><li>Future potential vs commercial radio? </li></ul><ul><li>Spotify is your new music collection! </li></ul>

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The BBC <ul><li>What is the future of the licence fee? </li></ul><ul><li>The Beeb is changing – 25% cut in website spend </li></ul><ul><li>63% of the population would be happy to have advertising on the BBC in return for scrapping the licence fee </li></ul><ul><li>Sponsorship opportunities? </li></ul><ul><li>Local TV opportunities? </li></ul><ul><li>Local radio opportunities? </li></ul>

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MORE Social Media! <ul><li>‘ Ping’ from Apple </li></ul><ul><li>Social network all about music </li></ul><ul><li>“ Facebook and Twitter meets iTunes” </li></ul><ul><li>Follow your favourite artists and friends and follow what music they are downloading </li></ul>

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Last FM i-app <ul><li>Listen to tunes on your mobile? </li></ul><ul><li>Keep running out of memory or forgetting to update your playlists? </li></ul><ul><li>Last FM has an online library of millions of tracks </li></ul><ul><li>Create a personalised radio station based on your tastes </li></ul><ul><li>Free to use </li></ul>

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Bump i-app <ul><li>The end of the business card?! </li></ul><ul><li>Meet someone else with an iPhone or iPod Touch </li></ul><ul><li>Swap your contact details by simply bumping your devices together </li></ul><ul><li>Also become friends on Facebook, Twitter or LinkedIn </li></ul>

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Reel Director i-app <ul><li>Looking to add video footage to your website? </li></ul><ul><li>Google loves video and it will boost your Google rankings </li></ul><ul><li>Film it, edit it, post it! </li></ul><ul><li>4 styles of opening and closing credits </li></ul><ul><li>27 types of transition </li></ul><ul><li>Add photos too, zooming in or out </li></ul><ul><li>Website homepage, email signature, YouTube </li></ul>

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TimeOut i-app <ul><li>Looking for weekly updates in a specific area? </li></ul><ul><ul><ul><ul><ul><li>For concerts, art exhibitions, gigs, cinema listings </li></ul></ul></ul></ul></ul><ul><li>GPS technology </li></ul><ul><li>Next stop? </li></ul><ul><li>TimeOut Bristol & Bath </li></ul><ul><li>TimeOut Gloucestershire, TimeOut Swindon & Wilts </li></ul><ul><li>Where does this leave the likes of Venue magazine?! </li></ul>

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Market Research <ul><li>More accurate audience measurement – BARB/RAJAR </li></ul><ul><li>Added technology </li></ul><ul><li>Webcams to watch expressions </li></ul>

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The Future Of Email Marketing? <ul><li>‘ Priority Inbox feature’ from Gmail / Googlemail </li></ul><ul><li>Prioritises your emails – Important / Everything else </li></ul><ul><li>Based on emails you’ve previously opened </li></ul><ul><li>Emails with keywords you’ve opened before </li></ul><ul><li>Does the email look like it’s come from a mailing list? </li></ul>

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The Future Of Web Design <ul><li>Build your own website, zero experience required </li></ul><ul><li>www.moonfruit.com </li></ul><ul><li>Add pictures, audio, video </li></ul><ul><li>Track website traffic </li></ul><ul><li>Built-in SEO </li></ul><ul><li>Free of charge! (as long as you update it once every 6 months) </li></ul>

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Accuracy Of Web Content <ul><li>‘ Dispute Finder’ </li></ul><ul><li>Highlights and vibrates if facts are in dispute on a website </li></ul><ul><li>But what about commercial websites in the future? </li></ul><ul><li>We offer the “best prices”, the “widest range”, we’re “number one in the area” </li></ul>

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Thank You! <ul><li>Dev Chakraborty </li></ul><ul><li>Business Link </li></ul><ul><li>E: [email_address] </li></ul><ul><li>Slides available from: </li></ul><ul><li>www.businesslink.gov.uk/southwest/eventspresentations </li></ul>