Download Introduction into Web 2.0 Marketing and Branding

Introductions
• Name (and name you want to be called by)
• Place of origin
• Significant prior work experience (main jobs &
experiences)
• Expectations for your career and how this
course might fit into that.
• Your favorite movie (and, if you want, why it is
your favorite)
Marketing in the Age of Web 2.0
Mapping Digital Marketing Media
and
What can we learn from an Youtube/ebay/Facebook
world?
Moment of Honesty
• Do we really have a definition of Web 2.0?
• If I were to do one this is probably it:
– “Maybe it is a ‘new’ Internet and if it is, it is more
about concepts than definition. In my view, it centers
around:
•
•
•
•
freedom of expression
applications
horizontal innovation
enabling openness, connectivity, and exchange of
information
• (most importantly?) respect of individuals as contributors
What is Interactive Marketing?
Is it perhaps...
…selling over the Net?
…advertising over the Net?
…distributing over the Net?
…producing using the Net?
…others? What do you think?
My Definition:
Web 2.0 Marketing is the Process
of Building and Maintaining CoCreative Customer Relationships
Through Building and
Maintaining Value-adding
Electronic Product and Service
Networks and Communities using
the Power of Information.
Concepts of Networked Marketing
• Information as “Dematerialization”
• Co-production (Social Media)
Dematerialization: The informational
mode of production
• Information management has been
labor intensive, therefore high cost,
high overhead.
• The IT revolution makes knowledge
work productive through automation.
“network marketing”
• When messages are transported at
network speed, and production is
decentralized, the result is FLEXIBILITY!
Flexibility: Doing Networked
Marketing
• Customization: Change segments on the
fly—even make segments of one!
• Co-production: Bring in the customer
• Multi-channel solutions: real-time click
and brick sales pitch.
Link Concepts:
• What is the glue for
– the multi-channel retail system
– Customization of segments
– And co-production?
Ask yourself:
In this brand new world of flexible marketing through
co-production
• How does branding change?
• How does new product introduction change?
• How does new product development change?
• How does channel strategy change?
• How does promotion change?
• How does pricing strategy change?
Value Types
•liberate trapped value
•introduce new-to-the-world value
Create More Efficient
Markets
Enable Ease of Access
Liberate
Trapped
Value
Look at Value
System to
Discover New
Business
Opportunities
Create More Efficient
Systems
Disrupt Current Pricing
Power
• eBay
•craigslist
• monster.com
• Ofoto.com
• FedEx
• Carpoint.com
• Priceline.com
Customize Offerings
Introduce
New-to-theWorld Value
Extend Reach and
Access
• MyYahoo
• Amazon personalized page
• Keen.com (Advertise
yourself)
Build Community
• MyFamily.com
• Epinions.com
Enable Collaboration
• weboffice.com
So why do Interactive Marketing?
Because the NEW NETWORK supports one or
more of these efforts:
Enhance Customer
Relationships
Improve Profitability
E-Business
Increase Market Share
Increase Product Cycle
Times
Let’s Discuss
Can the Internet Help Innovate?
21ST Century Marketing
Challenges
• FRAGMENTATION!!
– Attention
– Demand
– Community and Communication
Attention Economy
• Fragmented media
• Consumers tuning out or completely
skipping messages
• 61% of consumers say that marketers and advertisers do not
treat them with respect
• 69% are interested in products or services that would help
them skip or block advertising
• Poor Information/Metrics on effectiveness
Long Tail (Chris Anderson)
• Fragmented Demand
– Niches are Riches
What is “Natural Demand”?
• The “Head” of the Demand Curve:
– Pre-Internet, old economy firms turned out a
small number of “hits” or blockbuster products
• The “Tail” of the Demand Curve:
– Internet-era, new economy firms offer a
broader range of niche products.
The Head
• Prior to the Internet, production, distribution, and
consumption focused on a few hits because of
scarcity of resources:
– there simply was not enough time, space, or money
for businesses to offer everything for everybody.
– The 80/20 rule was the dominant model—20 percent
of a business’s products accounted for 80 percent of
its sales (and usually 100 percent of its profits).
The Long Tail
• In markets where technology dramatically
reduces the costs of reaching niches through
one or more of these powerful forces:
– expands the universe of content
– reduces the costs of consumption
– lowers search costs (drives demand down the tail).
• But how do you lower the search costs?
The Long Tail
– In the long tail model, these forces allow
online businesses to greatly increase the
variety of their products.
• Anderson argues that 98 percent of a long tail
business’s products sell at least one unit in a
quarter
• on a cumulative basis, these small numbers of
sales of large numbers of niche products generate
enormous revenues and profits.
Is there a Long Tail?
• www.rogerebert.com hosts more than ten
thousand reviews and its Web traffic statistics
show that even the most popular film represents
less than 1 percent of their business.
– In June 15, 2006, "The Da Vinci Code" and
"Brokeback Mountain" were tied at 0.8 % of page
views
– the next most requested reviews in 2006 have been
for "V for Vendetta" (0.7)
– "X-Men: The Last Stand" (0.6)
– "An Inconvenient Truth" (0.5).
The lesson: People are curious about a lot of different
movies."
Is there a Long Tail?
• The Long Tail of Holiday Music.
– eMusic had 1,226 holiday albums in the
catalog
– 1,128 had been downloaded over the past
month.
– That's 92% of the catalog!
Source: Digital Audio Insider, 2007
To Summarize:
• In virtually all markets, there are far more niche
goods than hits
• The cost of reaching those niches is now falling
dramatically.
• Simply offering more variety does not shift
demand by itself. Consumers must be given
ways to find niches that suit their particular
needs and interests. A range of tools and
techniques—from recommendations to
rankings—are effective at doing this.
To summarize con’d
• Once there’s massively expanded variety and
the filters to sort through it, the demand curve
flattens. There are still hits and niches, but the
hits are relatively less popular and the niches
relatively more so.
• All the niches add up. Although none sell in
huge numbers, there are so many niche
products that collectively they can comprise a
market rivaling the hits.
• Once all of this is in place, the natural shape of
demand is revealed. That shape is far less hitdriven than we have been led to believe.
Part 2
Online Branding
Discuss
• What are the implications of the NikeiD
exchange for online marketing?
• What are key learning points from
Chapman's 'Comcast Service Experience'
segment
Online Branding
Online Branding
A key marketing
challenge in today’s multichannel, multi-device
world is the integration of
digital marketing
opportunities into the
traditional marketing
mix.
Leveraging the capabilities
of the Internet’s network
connectivity and
interactivity to drive
revenue is of paramount
importance to today's
marketer.
MKTG 101: Brands
•
•
•
•
What is a brand?
Do we need brands?
Who creates brands?
How do you create a
brand?
• How do you value a
brand?
Branding in the 21st Century
brand immersion
• What is brand immersion?
• Tell me about a time that you felt
immersed in a brand.
Branding in the 21st Century
• What makes a medium or environment
immersive?
Persistent
Interactive
Socially networked
Experiential
Emotional
Affective
What is this?
Immersion via Ambient Communication:
Festivals
Pub talk
Street stunts
Internet chat rooms
Advergaming: turning “brick” brands digital
Why advergaming?
• Advergames blur the distinction between entertainment
and advertising.
– Benefit?
– Web audiences drawn in long enough.
– message appears „un-pushed“
• Advergaming used in conjunction with a competition for
prizes and product promotions stimulates a whole new
realm of peer-to-peer marketing.
– Benefit?
– A viral explosion occurs as users share the game competition
with friends and ultimately bring others into contact with your
brand.
What we know of the GameMarketing Link:
Games generate high degree of attention
Games generate comparatively long attention span
Games generate positive emotions which the player associates with the product /
brand
If additional information about the product / brand is offered, it will be received
favorably=> credible source!
 Games decrease the propensity for critical thinking during game-play: the player
will not work up counter-arguments against marketing propositions
 However: Marketing propositions will be remembered longer and in greater detail
if accompanied by hard data.
In Sum:
to drive the brand…
…websites need to be more than a communication channel to customers. they
must be a proposition in their own right.
…websites must be an extension of the products and services that a brand
provides to its customers.
…marketers must understand that as soon as content becomes digital,
customers expect more from it.
…you have to allow for co-creation and create “Prosumers”.
The edge boundaries between content, advertising, and application have gone.
GROUP WORK: discuss
discuss
Identify your favorite immersive branded site
Analyze what makes it a powerful brand driver
Present three key learning points of your analysis
But brands are not just online…
Miller’s Man Laws
• A ridiculous invention
but one that obeys
the branding law of
the 21st century.
Extend Marketing Space
• Healthy Choice has used its online games
to drive people to supermarkets to actually
buy its products, by offering the chance for
customers to print "mystery coupons"
• A Hanes sweepstakes promoted the
apparel company's new "tagless" t-shirt by
using a tag as the virtual game piece:
"Lifting" it with the mouse revealed the
visitor's prize.
turning a digital brand physical
In the 21st century, this is what your
job is all about:
• Find ways to make your brand more experiential and
hence more memorable!
– careful spatial planning
– live, real-time, event-based nature of the brand interaction
• Shift consumers’ perception and practice of what
constitutes a marketing ‘space’.
– Immersion marketing seeks to achieve a much more proximal
relationship between consumers and brands.
• as theorists of the ‘experience economy’ put it:
– ‘the more effectively an experience engages the senses, the more
memorable it will be’ (Pine and Gilmore, 1999: 59).
discuss
You have been hired to lead the strategy task force for
digital marketing at Buick. The marketing director is at
a loss because the brand seems to be losing ground
with the 18-35 year old demographic.
Buick
• On a conceptual level, what do you
suggest needs to be done.
• On a concrete level, develop a marketing
mix to achieve the objective of brand
renewal.