Transcript Openness
Openness Marketing What is Marketing? To get people to becoming interested in your product or service Tell a good and TRUTHFUL story Appeal to people’s worldview Deliver your message to a target audience or people Please come up with 3 methods In the Past Communicate to larger groups were expensive (e.g. TV or newspaper advertising) Only large companies had the money to spend on distributing product information to large groups This structure led to companies creating, distributing, and controlling most of what was said about their organization and its products Today - Social Computing Internet can reach over 1.2 billion people Uses common functionality such as “email a friend”, “promote”, and “rate” Easy for humorous or shocking content to spread like wildfire - a groundswell of word-of-mouth activity Seen a funny video lately from a friend? The Miracle of Digital Editing Before After Before After Before After Before After Before After Before After Before After Before After It’s easy to laugh! Have a great day! Your Options An organization can choose to Ignore Control Mimic Embrace Ignore Denial about the impact social computing is easy An over-hyped fad that is best to ignore Especially true for industry has yet to feel the effects of this new openness Younger demographics are already immersed in social openness Ignorance is dangerous-Openness can move very fast once it starts Control The Legal departments of most organizations perceive openness as violation of copyrights and trademarks The entertainment industry is deeply engaged in Digital Right Management (DRM) Video/audio rights - pay per play Alienate new product suggestion websites in fear of legal claim from customers Some control on trademark and copy right is necessary but try not over do it Mimic “If you can’t beat them, join them.” Interactive advertising agencies are all aggressively promoting this option to their clients Consumer behavior online can be segmented into groups Companies advertise their brands online mimic social networks by adding similar functionality to company sites Place branded offers in these new online communities (mySpace, Facebook) Mimic is Not the Real Thing Not simply a new technology to display advertising It empowers customers to share their thoughts about products with greater credibility and with as much reach as marketing departments Customers expect an honest direct conversation with companies — not an advertising message The new openness makes advertising approaches less effective Embrace Customers are now in control of a company’s perception in the market Customers will share their positive experiences with many others online Customers will share their negative experiences, which will negatively impact the company Current marketing approaches becomes ineffective It scares Legal and confuses Sales Openness Marketing Openness marketing is truly a disruptive change that many organizations find hard to embrace How much is there to gain? What is the best way to get started? Focus on the Product or Service Openness makes it harder for an inferior product successful Negative product information will spread faster then you can ever imagine Engaging in the new openness is ineffective and dangerous if it is done only at the time of product launch Began at product inception and development Engage customers in a process to help improve your product Create ambassadors to help promote the next releases Adopt Open Innovation Most companies are still rely on internal individuals for product ideas and enhancements “voice of the customer” is done under assumption that company is in control Open innovation asserts that a significant portion of new ideas and enhancements come from outside organizations Closed source (proprietary software) vs. open source Linux, Apache, MySQL, Eclipse, etc. Overcome Change Inertia Disruptive change is hard to getting started Leadership start in product development Everyone in the executive core must be prepared for the change Anyone who has direct interaction with customers regarding the product can begin the process of openness Active customers are ambassadors for new product launches and could help spread positive word-of-mouth Engage with Consumer Customers shared their thoughts with a small circle of family, friends, and colleagues “Word of mouth” communication is the most trusted source of information about your products and services The American revolution was spread using the words of mouth Collaborating on Innovation with Your Customers Take advantages of the new social phenomenon Your customer can be a powerful force for collaborative innovation Only 25% of customers are doing it Groundswell A social trend in which people use technologies to get the things they need from each other, rather than from traditional institutions like corporations Consumer are participating in forums and discuss the changes and improvement needed Show 3 ways This is Your Company… …These are your Customers in the Groundswell …These are your Customers in the Groundswell Four-step Approach to the Groundswell P People O Objectives S Strategy T Technology Assess your customer’s social activities Decide what you want to accomplish Plan for how relationships with customer will change Decide which social technologies to use Key Roles and their Groundswell Objectives Roles Groundswell Objectives Research Listening Marketing Talking Sales Energizing Support Supporting Innovation Embracing …These are Your Customers in the Groundswell Case Studies in Collaborative Innovation Captive Community Yield Insights on Demand A Conversation with Customers Del Monte: What does your dog eat for breakfast George: she would definitely want bacon and eggs and she would want ketchup on her eggs. She loves ketchup!!! Del Monte: Would you buy more treats if they had vitamins and minerals as ingredients?” George: I would buy healthier treats over ones that didn’t have vitamins and minerals. . . . I try to look for amino acids and omega 3 and fish oils. More Insights from a Private Community salesforce.com Credit Mutual What would you improve if you were the banker? I will explain the complicated fee more clearly Done through contest Crucial to let each other to see their ideas and vote for it Loblaw Supermarket Rate all products online and in stores They really listen Award winning barbecue sauce But cap don’t fit, so modified and get really successful Openness Attitude Has to Have Humility Your customer know more then you do Believe the customers are smarter then the people working The New Collaborative Culture Share how product is evolving User is helping you to shape your product User get connected from different region Engage education and energize customers Continuous learning Real life testimonials Corporate Espionage Verify offline to ensure the right people are in the community Exercise your own judgment (false input to confuse you) Reserve the right to kick off “mobs” Look for “I never thought of that” or “its interesting” Home Work Check out http://www.casgle.com Use the openness ideas you learned from this lecture Give 3 opinions on this company that will improve its success Submit your homework to teachers aid no later then Thursday next week