Transcript Interactive Marketing Presentation

The Information Revolution and
the Future of Marketing
Matt Duffett
Bryan George
Katy Koschel
Elizabeth Shum
Taking Advantage of New
Marketing Technologies
4 Guidelines for Success
Don’t bet the farm on 1
new technology
 Focus on Content, not
Technology
 Beware of Information
Overload
 Recognize the importance
of Contrarian Marketers

8 Strategies for Interactive
Marketing Success
 Don’t
go it alone
 Use ongoing dialogue
 Be a value- added marketer
 Put more focus on the specific offers
 Recognize your enemy- promo clutter
 Utilize a flexible automation system
 Be a leader, not just a manager
 Do it right or Don’t do it at all
The
End of
Bigness
The Future of 1 to 1 Marketing
http://www.clickz.com/experts/brand/brand/article.php/820371
Orwell’s 1984 vs.
Bush’s Information
Revolution
The Predictions
Orwell
 Big Brother
 Thought Police
 Limited Information
from the Government
 Fear that crushes
privacy
Bush
 Memex computer
 Freedom through
Information
What’s Next
 Video
Empowerment
-Video Dial Tone
 Print Empowerment
Villanova University Library
-VUCat
Results

Privacy Issues
 “Hunters and Gatherers”
- liberation from the land
- freelancing
- “we will all have to forage and we
will all not eat well”
 Electronic Geography
- labor shifts- space, time, money
- movement to the “non- burbs”
Results
 “Who
to believe?”
- everyone is an authority
 Idea Piracy
 Fractionalization
- when your news is the only news
 Innovation and “Monopoly Rent”
All your products are ephemeral.
Only your customers are real.
Pink Jeep Tours- Sedona, AZ
• Previous System
– 5 minute reservation time
– DOS-based program
– Scheduling and organizing
tour lengths and party sizes
on automated clipboards
• Magnetic boards often
knocked over- chaos
ensues
– Software with multiple
screens, overbooked and
underbooked tours
• Current System
– One minute reservation
time
– Proprietary reservation
software package
– Sales now more than
double what they were
before upgrade
– 119% internet reservation
increase in 2003 over 2002
– Servers updated in 2003,
Intranet for tour guides to
access from home
– Will update phone system
Online Marketing
Online Marketing

“If 2002 was the year of search engines
and e-mail marketing, 2003 is the year of
wireless and Weblogs as a hot interactive
marketing technologies. Both these
technologies promise to turn
communications and media into much
more widespread, interactive affairs, thus
they hold huge potential for business
marketing. But so far potential is all they
have.” --Michael Fitzgerald-looking ahead
at marketing tech.
Online Marketing

Internet as a
marketing channel
will increase for
two reasons
• Internet is cost
effective
• Internet enables
targeted
communication
Online Marketing
E-mail was found to be the most
preferred methods for receiving
promotions
 Currently, e-mail marketing
messages are facing backlash
therefore marketers are avoiding
Instant Messaging for now.

Instant Messanging

Abbreviated IM, a type of communications
service that enables you to create a kind of
private chat room with another individual in
order to communicate in real time over the
Internet, analagous to a telephone conversation
but using text-based, not voice-based,
communication. Typically, the instant messaging
system alerts you whenever somebody on your
private list is online. You can then initiate a chat
session with that particular individual.
Instant Messaging

Providers
• AOL Instant
Messenger (AIM)
• MSN Messenger
• Yahoo! Messenger

Programs included
•
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Instant messages
Chat
Web links
Images
Sounds
Files
Talk
Streaming Content
Instant Messaging

Instant messaging really
exploded on the Internet scene
in November 1996. That's when
Mirablis, a company founded
by four Israeli programmers,
introduced ICQ, a free instantmessaging utility that anyone
could use.
ICQ

ICQ, a combination of
letters that is shorthand for
the phrase "I seek you," is
a real-time tool that uses a
software application, called
a client, that resides on
your computer. The client
communicates with an ICQ
server whenever you are
online and the client is
running.
Instant Messaging

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Instant Messaging is
perceived by users to
be personal
communication tool
and not a
promotional vehicle
Focus groups said “it
was ‘inappropriate’
for IM to be used for
promotion”
Advertising via IM
may be ineffective
Instant Messaging

Form of IM-based marketing
• IM bots
• Interactive agents are software applications
that interact with users via IM or other textmessaging services
• Used by companies wanting to push products
or services to consumers
• Most popular: SmarterChild- reached 8
million AIM users
IM Robot Example
AOL IM Robots
Instant Messaging

Neighboring
• IM Marketing Model
• Developed by Todd
Tweedy

Believes IM networks
will create two degrees
of separation from
advertisers, and
prospective new
customers
• Encourages individuals
to express their own
views and voice about
a product to service to
their own network of
personal contacts
Neighboring

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Uses dialogs that are initiated, modified,
and terminated by individuals within an
IM network – marketing firm.
Lets advertisers not by a corporation or
gain access to closed-social networks by
using real-time communication tools,
such as IM
Power of this model lies with the
influence of word of mouth
Neighboring

Steps
• Step 1: Gain IM client and alias names of your most
valuable customers
• Step 2: Invite customers to support your business
and offer incentives for them to refer your services or
products across their network
• Step 3: Acknowledge their support
• Step 4: Be committed to being of service, and
leverage customer permission to request opportunities
to reach out to customers in their network.
Neighboring

Benefits
• The ability to transform personalization
techniques into scalable systems that support
mass marketing objectives
• Providing targeted and permission-based
interactions
• The ability to detect whether someone is
online and deliver just-at-that-time
communications
• Distributed referrals through small closednetworks of private contact lists or buddy lists
iTV: The Future of Television
iTV: The Future of Television
What is it?
 “Due to the infancy of the market, any description
of what constitutes ITV is necessarily a working
definition. …the definition proposed by the British
broadcasting regulator, Independent Television
Commission (“ITC”): ITV services are ‘pull’
services initiated by the subscriber to a MVPD
that are not necessarily related to any specific
video programming.” – Hernan Galperin &
Francois Bar
iTV: The Future of Television
What is it?
 Two types of ITV:
 Program-related services
 “…services that are directly related to one or more video
programming streams. They enhance and extend the
broadcaster’s core business.” – Galperin & Bar
 Examples: “…to play or bet along with a show or sports
event, to interact with other viewers of the same program, or
to initiate transaction of goods or services featured in the
video programming.” –Galperin & Bar
 Dedicated Services
 “…independent from any specific programming stream.” –
G&B
 Examples: “…video-on-demand, e-mail, games, gambling,
and electronic banking.” – G&B
iTV: The Future of Television
iTV’s place in the market
 40% of respondents to a UK
study said iTV would play a
part in their future marketing
efforts
 “Interactive TV is a true opt-in
medium, where the consumer
chooses at all stages how the
relationship is controlled.”
 Through iTV marketers hope
to change the way consumers
view advertisements and
information.
iTV: The Future of Television
Role of Digital Technology
 “We’re piloting the use of digital
technology to deliver different promotional
messages to different types of homes.” –
iTV broadcasting chief exec. Mick
Desmond
 iTV is also taking measures to build
relationships with advertisers
 CD-ROMs
iTV: The Future of Television
Firms that use iTV to advertise
 Sky Broadcasting – Britain
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 Sky Active
 Sent information to advertisers
explaining options
 Sky Text
Honda – UK Ads
 First iTV ad was for the Civic
 Starcom Motive
 Press Red’s Blackbox Designer
 Honda Accord Advertisement
 Produced by Wieden + Kennedy
 Aired on April 6th during iTV’s
broadcast of the Brazilian Grand
Prix
British Airways
 Adaptation of the current “Club World”
ad campaign
 Uses interactivity to explain benefits to
club members
 Ad Example
Above: Sky Text example, from
http://skydigital.mediabullet.co.
uk/index.php?page=interactive
iTV: The Future of Television
Challenges
 “…to prove that this
medium can make
money” – Jane
Marshall, controller of
iTV interactive
 Managing costs
 Generating revenues
iTV: The Future of Television
Security Issues
 T-commerce
 People demand safe and
secure transactions
 The EMV standard
 Chip in cards for user
authentication
 Canal Plus vs. NDS lawsuit
 Canal accused NDS of piracy
 Challenge faced: ensure
customers that interactive
transactions are secure.
iTV: The Future of Television
Government Regulation
 The Three Generations of Television
 Post-War -1970’s
 Late 1970’s – early millennium
 Now
 Each generation builds on the previous one
 Due to the market and consumer behavior variations, it
is difficult to establish rules at this early stage
 3 potential areas for discrimination that require attention
 Transmission System
 Return Path
 Home Terminal
Marketing of the Future:
Scenes from Minority Report
Are Minority Report Gadgets Realistic?
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Some yes, Some no
Reprogrammable Newspaper
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“electronically self-printing paper”
What does this mean for
marketing in the future?
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Costs of targeting potential
customers goes down
Personalization/Customization
becomes easier and more detailed
Ability to tailor advertisements to
different consumers rapidly
GPS Technology
GPS Technology
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Global Positioning System
“GPS is a radio navigation system
that allows land, sea, and airborne
users to determine their exact
location, velocity, and time 24 hours
a day, in all weather conditions,
anywhere in the world.”
“New” Technology

GPS technology is not “new” per se.
• GPS technology has been in use for over
ten years.
• OJ Simpson’s exact location was traced
by his cell phone as he fled
police down a Los
Angeles freeway.
How It Works
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GPS is based on the
triangulation of satellites.
Radio signal’s travel time
is then measured by a GPS
receiver in order to
determine distance.
In addition to distance,
you must know exactly
where the satellites are in
space. Therefore, the
satellites are carefully
monitored.
http://www.trimble.com/g
ps/how.html
GPS Applied To Marketing

GPS allows our location to be tracked
via mobile phone.
• This is POWERFUL technology
• Prediction: There are at least 24 cell
phones in this classroom right now


Companies know how prolific cellular
phone use has become.
Question now  How do we use this
technology to market?
Scenario No. 1
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You are a frequent Best Buy
shopper.
You plan on going to KOP, but
today you were not planning
on going to Best Buy
Best Buy sees that you are
within one mile of one of their
stores and notices that you
purchase blank CDs often.
Just so happens Best Buy
currently has a sale on blank
CDs
A text message for a sale on
blank CDs @ Best Buy pops
up on your cell phone.
What is your reaction?
Scenario No. 2
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You’re shopping at Staples
for ink cartridges.
You want to compare
prices, so you leave
Staples and decide to
compare prices at Office
Depot
Using GPS, Staples notices
that you were in one of
their stores but did not
purchase anything.
A text message pops up on
your cell phone offering
you $5.00 off any purchase
of $50 or more (only valid
for next 30 minutes)
What is your reaction?
Scenario No. 3
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You occasionally shop at
Ikea, a couple times a year
at most.
GPS technology notices
that you are less than a
half mile away from an
Ikea location.
A general text message
appears on your phone
saying, “Great sales at
Ikea! Come in and take a
look.”
What is your reaction?
“Your Cell Phone is Watching You”

Cell towers act as “receivers” of your phone’s signal;
when you leave one cell area, your signal is bumped to
the next cell tower

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Can track your “rough” location
Last year, the Federal Communications Commission
ordered cellular companies to equip all new cell phones
with Global Positioning Satellite tracking devices
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can pinpoint a user's location to within 300 feet
Designed to aid locating 911 callers
Effects on Cellular Companies

Downside: chip costs approximately $20
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Phones usually given away in wireless plans
Upside: Can gain information on customers’ daily
activities
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E.g. can sell advertising to be displayed on screen
Verizon Wireless spokesperson told the technology news
website CNET.com that it currently has no plans to release
information about customers' day-to-day whereabouts to
commercial third parties.
Who is Tracking You?

Some companies are already making use of the
limited cell phone tracking technology

“Hot Spots”: Hidden sensors can detect your phone
or Palm Pilot, upon which the system hums into life,
sending ads for merchandise you might be standing
near and compiling data about your shopping habits
Conclusion
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Moving from BIG to Little
- 1 to 1 Marketing Push/ Customization
Online Marketing
- Instant Messenger
iTV
- Transition to Internet- like services
GPS
- Cell- phone messaging
A look ahead: Citibank
- How can they take advantage of these technological
advancements to foster growth?