David will present highlights of Adaptive Brand Marketing: Rethinking Your Approach to Brands in the Digital Age. He will also address the challenge of aligning an organization around the new goals of real-time marketing.

1. Adapting Marketing For A New Era David M. Cooperstein Vice President Forrester Research

2. Digital Forces Companies to Adapt

3. “Viewers” evolved News became an all-day, on-demand activity. Access to news came from non-branded media sites like RSS feeds and portals that aggregated “my” content. Search engines answered the rest.

4. Distribution evolved . . .

5. . . . forcing journalists to adapt 24 hour news cycles Self-amplification Audience engagement with comments and conversations in multiple venues Competition from “Peer Influencers” like HuffingtonPost.com, Daily Beast, TechCrunch, and Perez Hilton

6. Marketers are the new journalists

7. Your survival depends on how well you adapt Theme

8. Agenda How has the customer evolved with the onslaught of digital and social media? How are marketing leaders adapting their approach to embrace this evolution? What can you do today to adapt your marketing efforts?

9. How has the customer evolved with the onslaught of digital and social media? Source: http://www.masternewmedia.org/images/email-vs-social-media_id13991621_size485.jpg

10. Top 10 information sources “How much do you trust* the following information sources?” Base: US online adults *Trust is defined as a 4 or 5 on a scale from 1 [do not trust at all] to 5 [trust a lot]. Source: North American Technographics® Interactive Marketing Online Survey, Q2 2009 (US)

11. Gen Y and Gen X “watch and surf” simultaneously “In the typical week, how much of the time were you watching TV and also using a computer?” Answer: More than half the time. Base: 4,651 US online adults(percentages may not total 100 because of rounding) Source: North American Technographics® Entertainment And Media Online Survey, Q3 2009 (US)

12. Simultaneous usage does not mean simultaneous content “Which of the following describe your experience watching TV and using a PC at the same time?” I browse the internet on topics not related to what I am watching on TV I email, chat, visit social networking sites on topics not related to what I am watching on TV I use my PC to chat, browse, or research the show I am watching on TV Base: 3,583 US online adults who watch TV and use PC at the same time (multiple responses accepted) Source: North American Technographics® Entertainment And Media Online Survey, Q3 2009 (US)

13. 3 billion 25 million 400 million >30 million 197 million New “media” have mass appeal Source: comScore, February 2010; YouTube ,5/5/2010; FacebookInside company blog ,2/1/2010; allfacebook.com

14. Social Technographics® Creators - 13% Critics - 19% Collectors - 15% Joiners - 19% Spectators -33% Inactives - 52% Source: January 15, 2010, “Introducing The New Social Technographics®” Forrester report

15. Social Technographics® Creators - 24% 83% Conversationalists - 33% Critics - 37% Collectors - 20% Joiners - 59% Spectators -70% Inactives -17% Source: January 15, 2010, “Introducing The New Social Technographics®” Forrester report

16. Social campaigns Source: Burberry (http://www.burberry.com/)

17. Social campaigns Source: Burberry (http://www.burberry.com/)

18. Social campaigns Source: Burberry (http://www.burberry.com/)

19. Mobile Technographics® SuperConnecteds 12% Entertainers 20% Connectors 19% Communicators 13% Talkers 35% Inactives 19% Source: April 9, 2009, “Mobile Technographics” Forrester report

20. Mobile activity varies widely Source: Apple (http://www.apple.com/iphone/apps-for-iphone/)

21. Mobile activity varies widely Source: Apple (http://www.apple.com/iphone/apps-for-iphone/)

22. Mobile activity varies widely Source: Apple (http://www.apple.com/iphone/apps-for-iphone/)

23. What’s next?

24. Hyperlocal insight

25. Hyperlocal insight

26. eReader behaviors

27. eReader behaviors

28. Social gaming opportunities

29. How are marketing leaders adapting their approach to embrace this evolution?

31. Change is good “The things we fear most in organizations — fluctuations, disturbances, imbalances — are the primary sources of creativity.” — Margaret J. Wheatley, president emeritus of The Berkana Institute

32. Definition of adaptive marketing A flexible approach in which marketers respond quickly to their environment to align customer and brand goals and maximize return on brand equity.

33. Adaptive Marketing Looks Like This Offline media CRM Social initiatives CustomerService eCommerce Mobile Interactive Media Retail

34. Engage your consumer’s 4 P’s Our P’s Product Price Place Promotion The Consumer P’s Permission Proximity Perception Participation

35. Three tenets of adaptability Think and move differently. Listen more, react intelligently. Target people, not statistics.

36. Think and move differently

37. The brand platform lives in many places

38. The brand platform lives in many places

39. The brand platform lives in many places

40. The brand platform lives in many places

41. Listen more and react intelligently INFORMS DRIVES CREATES INSPIRES Source: March 12, 2010, “Defining Social Intelligence” Forrester report

42. Hyundai responded to current consumer needs

43. Hyundai responded to current consumer needs Hyundai Think Tank revealed customer needs Hyundai Assurance program Gas Lock program

44. Hyundai responded to current consumer needs Hyundai Think Tank revealed customer needs Hyundai Assurance program Gas Lock program

45. Communities help shape messages and product decisions Source: Mercedes-Benz (https://www.mercedesbenzadvisors.com/login); www.mbusa.com

46. Communities help shape messages and product decisions Source: Mercedes-Benz (https://www.mercedesbenzadvisors.com/login); www.mbusa.com

47. Target people, not data or “audiences” Brand Women 25-44 with two kids in household Data Channel Line of business

48. Target people, not data or “audiences” Brand Data Channel Line of business Mother with toddler and infant

49. Target people, not data or “audiences” Source: Procter & Gamble (http://www.pg.com/en_US/index.shtml)

51. What can you do today to adapt your marketing efforts?

52. Adapt your approach to new ideas New channel, interaction, engagement Groundswell New audience type Integration Experimentation

54. Sets the core platform for the brand

55. Ensures that tone and meaning are consistent across markets

56. Understands and engages the local market

57. Communicates nuances

58. Leads local communities

59. Observes cultural norms and regulationsSource: Flickr (www.flickr.com)

60. Adapt your process Plan iteratively and frequently. Partner for creativity, not durability. Use predictive metrics in addition to descriptive ones.

61. Adapt your mix of media Earned Media “The Result” Paid Media “The Catalyst” Owned Media “The Portable Brand”

62. Summary Consumers evolve. You must follow them to the outposts where they spend their time and engage with them on their terms. Marketers, adapt! You must change the pace at which you think, learn, and converse with your customers. Start today. Adapt the processes you have held onto for too long in terms of the approach to new ideas, new people, how you plan, and your use of media.

63. Thank you David M. Cooperstein +1 212.857.0758 dcooperstein@forrester.com @minicooper www.forrester.com