Marketing 2.0 for Competitive Advantage

SEEC WorkshopAdvertising, Media, On-Line Communications

June 15, 2011

Detlev Zwick, Ph.D.

2

Detlev Bio

• Schulich School of Business, Associate Professor Marketing• Research, writing, teaching (Exec, MBA, BBA)• Consulting

– Vattenfall– BMW, UK– Board of Education, City of Providence, USA – Toronto FC– Various start-ups (with various success)

What we will do today

• Discuss how communication value (through customer value) is generated and delivered in a Web 2.0 world

• Effective web-based communication tools– Brand engagement w/o push

• Develop an online marketing communication plan– Things you can do tomorrow

At the end of this day, you should be able to….

• Understand the fundamental change of MarCom in a web 2.0 world

• Describe the various online communication tools and their strategic role in MarCom.

• Ability to develop a set of online communication recommendation for your organization.

LEARNING VEHICLE

• Please note that this is a WORKSHOP.

• Each step will entail small group discussions and presentations to the entire class

LEARNING JOURNEY: Day 2

• 9 to 10.15: Intro, Exercise 1: Telling a Story• 10.15 to 10.30: Coffee• 10.30 to 12: Overview of Web 2.0 MarCom,

Exercise 2: Who should talk to who, and how?• 12 to 1: Lunch• 1 to 2.15: Exercise 3: Tools• 2.15 to 2.30: Coffee• 2.30 to 4.30: Exercise 4: Though Leadership

Now you…

• What do you consider your organization’s most significant communication challenge today?

• What do you consider your organization’s most significant communication challenge in the future?

• What does web 2.0 communication mean to your organization?

For me…

• What do you consider your organization’s most significant communication challenge today?– Articulate clear value proposition for myriad MBA programs

• What do you consider your organization’s most significant communication challenge in the future?– Global brand strength

• What does web 2.0 communication mean to your organization?– Make the students do the work

What are the words you would use to describe…

• Thordon Bearings Inc.

• Ontario Power Authority

• Brady

• Bank of Montreal

• Sheridan College

You are not alone…

• Morgan Spurlock (8:45min)

A Crisis?• “Today’s marketing world is broken…We are

still too dependent on marketing tactics that are not in touch with today’s consumer”

– Jim Stengel, Global Marketing Officer, Procter &Gamble

• “Used to be, TV was the answer. The only problem was it stopped working sometime around 1987.”

– President GM North America

• “Broadcasting an ad on television or in a newspaper is admitting you have no idea who your customers are.”

– Gary Loveman, CEO, Harrah’s

• Today the customer is in charge and whoever is best at putting the customer in charge makes all the money. Stephen F. Quinn, Senior vice president for marketing, Wal-

Mart.

• Consumers wrest control away from brand management control freaks...get over it. Turning your brand over to the consumer is taking control - and in fact, if you do, they'll return it to you in better shape. Russ Klein, President for global marketing, innovation and

strategy, Burger King

Let’s Revisit:

• What is traditional MarCom all about?

• What is different about Web 2.0 MarCom?

Exercise 1

• What to do when it flows?

Let’s hear it…

Let’s take a break!

21ST Century Communication Challenges

• Twitter, ‘nough said…

• FRAGMENTATION!!– Attention

– Demand

• Fragmentation makes – reaching – keeping the attention of your customer

ever harder.

Web 2.0 Communication shows two things:

• Consumers love to interrupt!

• Consumers love to talk!

=> Give me some examples…

Changes your Relationship

• From ‘selling to customers’ to hosting hosting guestsguests

• From ‘controller’ of communication (teller of stories) to enablerenabler of communication (resource for stories told by others).

2 Strategic Implications

• Encourage and Valorize Social Social CommunicationCommunication (sub-category of social production)

• Brand and Market Leadership through Thought Leadership Thought Leadership

Digital Communication Map

Consumer

Marketer

Marketer Consumer

Digital Communication Map

Consumer

Marketer •Retail sites•Banner Ads/Links•Email/Spam•News Releases•Blogs/Online forums•Search Engine Optimization•Viral/social marketing/Twitter

Marketer Consumer

Digital Communication Map

Consumer •Social search•Third party and retailer evaluation sites (e.g. epinions.com)•Blogs/Twitter•Wikis•Social networking sites

Marketer •Retail sites•Banner Ads/Links•Email/Spam•News Releases•Blogs/Online forums•Search Engine Optimization•Viral/social marketing

Marketer Consumer

Digital Communication Map

Consumer •Social search•Third party and retailer evaluation sites (e.g. epinions.com)•Blogs•Wikis•Social networking sites

Marketer •Link building•News releases•Blogs/Online forums

•Retail sites•Banner Ads/Links•Email/Spam•News Releases•Blogs/Online forums•Search Engine Optimization•Viral/social marketing

Marketer Consumer

Digital Communication Map

Consumer •Search •Email•Twitter•Company-owned product evaluation sites (beta)•Blogs/ Online forums/Twitter•Feedback sites

•Social search•Third party and retailer evaluation sites (e.g. epinions.com)•Blogs•Wikis•Twitter•Social networking sites

Marketer •Link building•News releases•Blogs/Online forums•Twitter

•Retail sites•Twitter•Banner Ads/Links•Email/Spam•News Releases•Blogs/Online forums•Search Engine Optimization•Viral/social marketing

Marketer Consumer

In your Groups:

• Work together to fill the quadrants for the company assigned.– Describe digital

communication strategy?

– Analyze S&Ws– What should it do?

Consumer

Marketer

Marketer Consumer

Nike, SunLife Insurance, Starbucks, Shell

Lunch someone?

Let’s look at Some Tools

We focus on:

• Viral marketing • (Brand) Communities• Social Networks• Blogs (incl. Audio, Video)

Is there a Simple Formula to Success?

• No…

Turn a good story…

• …into a groundswell of communication and attention.– Will it blend? (youtube)– Nokia N95 (blog seedings)– Mike Pedersen (www.golf-trainer.com,

www.performbettergolf.com/blog)– Le Cache Premium Wine Cabinets (wine-

storage.blogspot.com)

But also…

• BearingPoint– Mike 2.0 wiki

Coffee Break?….yeah!

Exercise #4

Let’s Summarize

• Advertising faces new challenges– Attention, niche demand, value of social communication

• A new medium changes relationships– From customer to guest– From teller of stories to resource for stories

• Brand Value Creation in the Age of Social Communication – Brand means authentic thought leadership (not one-way interruptions)– Brand value depends on the amount (and maybe quality) of social

communication