Transcript internet mrktg

Marketing in the
“New” Economy
Service
Marketing
CRM
CRM
Internet
Marketing
Int’l
Marketing
The Internet is
the most
important
single business
revolution in
our lifetime.
Jack Welch, Former-CEO
General Electric
W3 Users- Today– 1.4+
Billion
WORLD W3 STATS
First Concern
o
Keep “Internet Marketing” in
perspective… As to which “e-commerce
domain” you are talking about
o
What you are doing, how it is doing
& how you do it– depends on what
domain you are talking about
e-Commerce Domains
P2P
(person to person)
B2C = Billions
B2B = Trillions
US CENSUS BUREAU- E-Stats
B2B=93%
of E-Commerce
•MFGRS=$1,568B
•MW= $1,148B
B2C
•Retail= $107B
•Services=$114B
2nd Concern
The principles &
practices of website
design & marketing
have evolved…
•Sites tend 2b read-only
static pages & files..
.. click a page & wait.
were huge, bloated &
buggy
•The desktop PC &
operating system
reigned supreme.
•The paradigm is all
about folders &
directories.
•Marketing rooted in
Mass Media Techniques
FromWeb 1.0
To-- Web 2.0:
Web 1.0
Web 2.0
(1993-2003)
(2004- to date)
HTML pages viewed
thru a browser
“content” shared –
interactive Exchange;
“Read”
Mode
“Write” & Contribute
“Page”
Primary content
“Post / record”
“static”
State
“dynamic”
Web browser
Viewed through…
Browsers, RSS Readers,
anything
“Client Server”
Architecture
“Web Services”
Web Coders
Content Created by…
Everyone
“geeks”
Domain of…
“masses”
Web 1.0 - Web 2.0 - Web 3.0
http://www.barackobama.com/
Got Web 2.0?-"
What 2.0 means for Marketers
» Listen more, shout less.
» Become part of the community.
» Successful marketing means
ceding control.
» See yourself as facilitator, not just
producer / provider
If you are still using banner-ads to drive
people to static web sites –then:
Web 1.0- Site Promo =
nd
2 Wave Advertising
W3- Advertising
PROACTIVE
SPONSORSHIP
INTERSTITIALS
UNSOLICITED EMAIL
SPAM
AD BANNERS
PERSONALIZED
BROADCAST
WEB SITES
TARGETED EMAIL
POP-UPS
REACTIVE
Web 2.0 Key Change for Marketers
.. users
connecting
to each other &
content—
thru networked,
peer-driven
activities &
content
Web 2.0 makes marketing a conversation
• Readers comment on your blogs
• They change your wikis
• The create blogs of their own
• They create “hate” sites if they
don’t like you
• They produce mashups of your
content and functions
Web 1.0 users were consumers
Web 2.0 users are participants
2.0
 Provide W3 based Services & open
source (not packaged/proprietary) software
 Use Peer
production, Networking &
Collaboration -trust users as co-developers
 Harness Collective
Intelligence
 Leverage economies of the
Long Tail
W3 based services & open source
software
•blogging tools
•survey tools
•newsletter tools
•registration
tools
• payment tools
W3 based services & open source
software
•Wikis:
•Project mgmt:
•Office 2.0
applications:
•Google Apps
W3 based services & open source softwareis why Google is a $140 billion Company
W3 based services & open source
software:
…enables
collaborative
creativity
Mashup (web application hybrid)
A mashup is a website or web
application that seamlessly combines
content from more than one source
into an integrated experience
Copyright © 2006 Active Web Solutions Ltd
2.0
 Provide W3 based Services & open
source (not packaged/proprietary) software
 Use Peer
production, Networking &
Collaboration -trust users as co-developers
 Harness Collective
Intelligence
 Leverage economies of the
Long Tail
Build a community of likeminded individuals
Some of the tools =
•Yahoo/Google groups
•MySpace
•FaceBook
•Cyworld groups
•Second Life!
•Drupal
•Plone
•Expression Engine
likeminded people like Dog Lovers
Peer production, Networking & Collaboration …
collaborative publishing
Wiki is a piece of server software that allows users to freely
create and edit Web page content using any Web browser
2.0
 Provide W3 based Services & open
source (not packaged/proprietary) software
 Use Peer
production, Networking &
Collaboration -trust users as co-developers
 Harness Collective
Intelligence
 Leverage economies of the
Long Tail
Harnessing
Collective
Intelligence
enables
collaborative
evaluation &
recommendation
…
Digg.com members
“vote” for stories to
appear on home page
Harnessing
Collective
Intelligence
… enables
collaborative
research &
organization
2.0
 Provide W3 based Services & open
source (not packaged/proprietary) software
 Use Peer
production, Networking &
Collaboration -trust users as co-developers
 Harness Collective
Intelligence
 Leverage economies of the
Long Tail
The Long
Tail: For
Marketeers
 Wine.com
Let’s get right to it….
Top 10
Forecasts,
2008
The Near Future:
Marketing
Considerations
“In
today
already
walks
tomorrow.”
Friedrich von Schiller
Welcome to
the Future
Real
time data mining—
conducted ‘round the world
24/7/365
On-going
Consumer input &
generated content
Marketing
messages
constructed “on the fly”-and
delived thru integrated &
individualized
communication channels…

Analytical
marketing
skills and
processes
will be
paramount
Career Competencies Needed by
New -Marketers…
Traditional Skills
 Sales mgt
 Advertising mgt
 Sales promotion
mgt
 Marketing
research
 Pricing
PLUS:




Customer relationship
management (CRM)
Partner relationship
management (PRM)
Marketing Resource Mgt.:
Database Mgt & Data-mining
 Lifetime Profitability
analysis by segment,
customer, channel
Integrated marketing
communications; Public
relations -(including event &
cause sponsorship, buzz
marketing)
From Decision Support to Decision
Automation: A 2020 Vision
Randolph E. Bucklin, Donald R. Lehmann, and John D. C. Little;


In coming decades, a
growing proportion of
marketing decisions will
be automated by evermore-powerful
combinations of data,
models, and
computers.
New age of marketing
decision support will
usher in an era of
decision automation.
Marketing Functionality
User Interface
Workflow
Collaboration
Content
Management
Marketing Context
Marketing Resource Mgt
& Most
Significantly:
Decision Support
& Automation
Systems- will be
implemented
within the
consumer as well
as business
environments--
Living Tomorrow –

Got Milk?

Got Pants?

Watching TV

Washing Clothes

Going to the
Bathroom

Going to Bed
Why bother with the future
"If you think that you
can run an
organization in the
next 10 years…
… as you've run it in
the past 10 years…
you're out of your
mind."
CEO, Coca Cola
“When the rate
of change outside
your company
exceeds the rate
of change inside
your company,
disaster is
imminent”
Lou Pritchet Senior VP, Procter & Gamble
Looking to the future:
common mistakes

Making predictions rather than
attaching probabilities to
possibilities

Simply extrapolating current
trends

Thinking of only one future
“When faced with a totally new situation we tend to
attach ourselves to the objects of the most recent
past.
Marshall McLuhan
We look at the present through a
rear view mirror”
Looking to the future:
common mistakes
People consistently
Overestimate the effect of
short term change
& Underestimate the effect of
long term change.
Ian Morrison,
former president of the Institute for the Future
Effective Forecasting - The
Desired vs The Likely
The best way to predict the future is to
invent it–
Alan Kay--‘Father’ of the PC and GUI interface
Change how you “C” things!
R
EACTIVE
C
R EATI V E
How best to prepare for the
future
The point is not so
much to predict
“the” future…
 but to prepare for
various
contingencies
 Based on the
logical extension
of established
trends

Some things are clear-Agriculture
Manufacturing
Services
80%
70%
% 60%
o
f 50%
40%
G 30%
N
P 20%
10%
0%
1850
1950
2050
How best to think about the future

Think of the drivers of
change

Use the drivers to imagine
different scenarios of the
future

Imagine perhaps three;
each should be plausible
but different

Extrapolate back from
those future scenarios to
think about what to do now
to prepare
What occurred in past few
decades to precipitate a
paradigm shift in Marketing…

From product to customer
centered

From mass to micro strategy

From customer acquisition to
retention

From regarding marketing as a
function to envisioning it as a
philosophy
 Enabled
by Technologically
 Precipitated by Globalization
 Necessitated by Consumers
technology convergence is fueling
a new economy
Computing Communication
Technologies Technologies
Content
Technologies
The resulting Techno/Info-sphere is redefining the business landscape for the 21st
century
CONVERGENT
TECHNOLOGY
Future
Marketing
Environment
Past
Marketing
Environment
NONCONVERGENT
TECHNOLOGIES
TechnoSphere
Drivers
Ubiquitous- Imbedded
Intelligence
Information technology will
transform our day-to-day
lives.

"The big trends - are the
availability of cheap
sensors that provide
digital data, cheap
computing power and
ubiquitous connectivity the ability to connect to
networks,"
 by 2020 everything large
enough to carry a
microchip probably will,
and from there the
possibilities are endless.
http://www.guardian.co.uk/2020/0,15047,1299021,00.html
Imbedded
intelligence
& low-cost
omnipresent
bandwidth
3G videophones
w/ broadband
– 2 meg
per second –
AI Enhanced
PDA devices
w/ speech
recognition &
avatars
RFID –
everywhere &
in everything
 Enabled
by Technologically
 Precipitated by Globalization
 Necessitated by Consumers
Borders have become meaningless
The entire
globe is
now tied
together as a
single
community
operating
24/7/365
Trans-National*
Cross-Cultural
High Speed/ Low
Cost
Transportation &
Communication
The Compunications Driver
The further, faster,
easier, cheaper & more
frequent people are able
to travel &
communicate…
the greater the amount
of interaction &
influence
The greater the degree
of Globalization
 Enabled
by Technologically
 Precipitated by Globalization
 Necessitated by Consumers
Consumer values are
fragmenting
Extreme shifts in:
21st Century
Fragmented Consumers
% of population
% of population
20th Century
Homogenous Consumers Age
Wealth
Ethnicity
Culture
Lifestage
patterns
Household
composition
Value
systems
Source: IBM Institute for Business Value analysis
X+ generation=
techno-savvy
accessing information whenever
& wherever they want it
Product
knowledge
Third-party commentary
Ubiquitous networking
Next-generation
mobile devices
Advanced infomediaries
Source: IBM Institute for Business Value analysis
& Info Savvy
Blocking Out,
Shutting Down
Overexposed & “on” to
marketing
 Ignore irrelevant, lowvalue messages
 Actively block
unsolicited
communications

Source: (1) GMA Forum, “Do We Have a Crisis in Brand Management,” Q3 2003; (2) Forrester Research,
“Privacy for Sale,” 11 Jun 02; IBM Institute for Business Value analysis
Becoming more selfcentered & Home
centered
Becoming more
complex--age,
sex & income
reversals
Are less brand
loyal
More connected &
more informed
Today’s
Consumers
Have less time &
more choices
Seeking new/ heightened
sensation & experiences
Have lower
attention spans &
higher
expectations
Are living &
shopping more for
today…
Less long range
planning
Preparing for the Future:
A Quick N’ Dirty
Environmental Scan
The "global brain”
is beginning to
emerge
• “By 2015, desktop operating systems will
be largely irrelevant.
•The Web will be the only OS worth coding
for.
• It won't matter what device you use, as long
as it runs on the Web OS.
•You will reach the same distributed
computer whether you log on via phone, PDA,
laptop, or HDTV”
We are the web—Kevin Kelly-Wired
magazine-August 2005
The Singularity is
Near
Within a quarter
century,
nonbiological
intelligence will
match the range
and subtlety of
human intelligence
Age of Silicon
is at an end!
rise of…atomic &
molecular computers
quantum computers
nanotechnology
optical computers
DNA computers–or even a
“computer in a pen”
Health #1
More Eco-conscious
More Concerned
w/ Corporate
citizenship
Very tech savvy
Tomorrows
Consumers
Expect immediate
personalized
attention
High levels
dissatisfaction w/
retailing
70% music &
books bought
online
shopping more on
impulse…
Some things are clear-Agriculture
Manufacturing
Services
80%
70%
% 60%
o
f 50%
40%
G 30%
N
P 20%
10%
0%
1850
1950
2050
The Global
Economy
The Global
Village
The Global
Corporation
•Growing divergence between those employed in highly skilled, highly paid
professions, and those at the bottom .. The
economy of work.. will
be increasingly hourglass-shaped.
"At the top end of the jobs hierarchy, people are likely to enjoy substantial
discretion over their hours, places and patterns of working time…
•Outsourcing, … will continue. Reservation agents, computer
programmers, database managers, financial analysts - all those whose jobs that
depend, in part, on an ability to master repetitive tasks performed on a computer will have been relocated abroad. "Only the customer-facing jobs will be left,"
http://www.guardian.co.uk/2020/0,15047,1299021,00.html
the collapse of consensus
In 2nd Wave society a
political leader could glue
together half a dozen major
blocs, as Roosevelt did in
1932, and expect the
resulting coalition to
remain locked in position
for many years.
Toffler, The Third Wave, p. 410
“In all likelihood it will require
the radical overhaul –or even
scraping-of:
the collapse of
consensus

Today it is necessary to
plug together hundreds,
even thousands, of tiny,
short-lived special interest
groups… that cleave
together just long enough to
elect a president, then break
apart again the day after the
election, leaving him
without a base of support
for his programs
.. all the unwieldy & unworkable
apparatus of supposedly
representative governments”…
 Toffler-
The
rd
3
Wave
“The onward march of individualism either through choice or fate - is still probably
the major force shaping our world”
The central question is: Will the slow
collapse of institutions that have been
vehicles for our shared identity mean
collapse of identity itself?
http://www.guardian.co.uk/2020/0,15047,1299021,00.html
 Frontline-
The Persuaders