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?

MyMy Definition:Definition:

Web 2.0 Marketing is the Process of Building and Maintaining Co-Creative Customer Relationships Through Building and Maintaining Value-adding Electronic Product and Service Networks and Communities using the Power of InformationPower 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

Look at Value System to

Discover New Business

Opportunities

Liberate Trapped

Value

Introduce New-to-the-World Value

Create More Efficient Markets

Enable Ease of Access

Customize Offerings

Extend Reach and Access

Create More Efficient Systems

Disrupt Current Pricing Power

Build Community

Enable Collaboration

• eBay•craigslist

• monster.com

• Ofoto.com• FedEx

• Carpoint.com• Priceline.com

• MyYahoo• Amazon personalized page

• Keen.com (Advertise yourself)

• MyFamily.com• Epinions.com

• weboffice.com

•liberate trapped value•introduce new-to-the-world value

So why do Interactive Marketing?So why do Interactive Marketing?

Because the NEW NETWORK supports one or more of these efforts:

Increase Market Share

Improve Profitability

Increase Product Cycle Times

Enhance Customer Enhance Customer RelationshipsRelationships

E-Business

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 hit-driven 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 multi-channel, 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 Centurybrand immersionbrand 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?

PersistentInteractiveSocially networkedExperientialEmotionalAffective

What is this?

Immersion via Ambient Communication:FestivalsPub talkStreet stuntsInternet 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 Game-Marketing Link:

Games generate high degree of attentionGames generate comparatively long attention spanGames generate positive emotions which the player associates with the product / brandIf 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, as soon as content becomes digital, customers expect more from it.customers expect more from it.

……you have to allow for co-creation and create “Prosumers”.you have to allow for co-creation and create “Prosumers”.

The edge boundaries between content, advertising, and application have gone.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).

discussYou 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.