Page 1

Traditional
vs.
Interactive
Marketing

 –
Part
II



Interactive
Marketing



What
is
Interactive
Marketing?
   The
refined
form
of
pull
marketing
that
brings


consumers
to
brand
through
conversations,
interactions
 and
electronic
word
of
mouth
   It
gives
the
consumer
the
ability
to
craft
and
control
the
 message
   Much
more
creative
than
traditional
marketing
   It
builds
real
relationships
with
consumers
that
provide
 the
brand
with
insights
and
understanding
of
how
a
 product
is
used
   We
rely
more
on
TECHNOGRAPHICS
than
demographics



Technographic
Segmentation
 Traditionally
market
researchers
focused
on
various
 demographic,
psychographic,
and
lifestyle
schemes
to
 categorize
and
describe
similar
clusters
of
consumers
as
 target
markets
   As
information
and
communication
technologies
emerged
as
 a
central
focus
and
defining
force
in
a
wide
range
of
 occupations
and
lifestyles,
market
researchers
realized
the
 need
for
a
segmentation
scheme
based
on
the
role
that
 technology
plays
in
consumers'
lives
   Technographic
segmentation
was
developed
to
measure
and
 categorize
consumers
based
on
their
ownership,
use
patterns,
 and
attitudes
toward
information,
communication
and
 entertainment
technologies.
  


Conversations
Start
With
People
 THERE
IS
STILL
 ONE
TRUSTED
 MEDIUM
 LEFT
IN
THE
 WORLD


MY
FRIENDS
–
THEIR
FRIENDS
–
AND
ALL
THOSE
WE
COLLECTIVELY
RESPECT



The
New
Way



The
Truth
About
Interactive
Marketing
 It’s
not
about
you,
it’s
about
 your
audience
   Strategy
must
be
based
on
 customer
behavior
   The
focal
point
needs
to
be
 consumer
insight
–
How
can
 you
add
value
or
create
a
 more
engaged
audience?
   This
is
about
building
a
 REAL
relationship
with
your
 customers;
customers
want
 credibility
  


The
4
P’s
Have
Evolved!


Permission
enables
 marketers
to
begin
 the
dialog
with
 consumers
as
a
 true,
voluntary
 relationship


Proximity
is
more
 about
enabling
big
 ideas
that
have
 scalability
at
the
 local
level.


Perception
–
 Understand
the
 vantage
point
of
the
 customer
and
 understand
our
 perception
may
not
 be
100%
accurate


Participation
–
 Embrace
the
idea
 that
your
customers
 and
prospective
 customers
are
 engaged
in
 conversation
that
 affects
you.




Consumers
Control
The
Message


Blog


PodCast


Video


Conversation


Collaboration



I have a problem I need to solve

I want to be better looking

I can save the environment I need to impress my boss

I want to be more efficient

I want to smile I need to know more

I want to laugh

I want to be entertained I want to be more popular I wish I could do more to help people I want to make my friends laugh


The
New
Rules
of
Engagement
 One‐way
communication


Brand
is
dialogue


Brand
recall
is
holy
grail


Customers
determine
brand
value


Group
customers
by
demographics


Group
customers
by
behavior


Content
controlled
by
marketers


Enterprise
+
user‐generated
content


Virality
driven
by
flash


Virality
based
on
content


Michelin
Guide:
expert
reviews


Amazon:
user
reviews


Publishers
control
channels


Publishers
build
relationships


Top‐down
strategy


Bottom‐up
strategy


Information
hierarchy


Information
on
demand


Emphasis
on
cost
–
CPM


Invest
for
growth
–
Measurable
ROI



Leveraging
Interactive
Media
In
Marketing
 Brand
Building
 Lead
Generation
 Research
and
Development
 Product
or
Service
Launch
 Customer
Retention
 Partner
and
Channel
Communications
 Thought
Leadership
 Internal
Communications
 Media
Relations
 Crisis
Management



What
Do
I
Mean
When
I
Say
Interactive
 Marketing?



Online
Communication
Channels


21


Search
Engine
Marketing
 Paid Search Contextual Advertising Search Engine Optimization Display Advertising


 


Some
facts:
 SEM
is
the
fastest
growing
form
of
online
marketing
   89%
of
US
Internet
Users
   63%
of
consumers
first
look
to
the
internet
   82%
say
search
is
the
most
commonly
used
tool
   41%
use
geographic
modifiers
   82%
of
local
searchers
follow‐up
with
in‐store
visits,
phone
calls
or
 purchase
  


Search
Engine
Optimization
   Google
Algorithm
   Google
Instant
   Google
Places
   Increased
focus
on
SEO
can
begin
to



decrease
or
eliminate
the
need
for
PPC



Search
–
Leveling
the
playing
field


SEO +29% Higher Return

PPC


Display/Banner
Advertising
   CPM
(Cost
per
Thousand
Impressions)
   CPC
(Cost
per
Click)
   CPA
(Cost
per
Action/Acquisition)
   CPL
(Cost
per
Lead)
   Rich
Media
   Mobile
   Behavioral
Targeting



Social
Networks



User
Generated
Content
   Blogs
   Social
Network
Sites
   Wikis
   Videos
&
Photos
   Review
Sites
   Audio
Sites
   Discussion
Boards
&
Forums



Email
Marketing


  Fast
&
Easy
   Interactive
   Personalization
   Tracking
   Eliminated
printing
costs



Mobile  Mobile Websites SMS/Texting Smart Phones Tablets/iPad/Kindles Location Based Marketing


Centralize
Analytics
–
Multichannel
Optimization



The
Changing
Role
of
the
Marketer



Changing
Role
of
Marketers


It’s
not
about
talking
at
 customers
and
prospects



Changing
Role
of
Marketers
 It’s
about
creating
&
 engaging
with
communities



The
Social
Technographics
Ladder


Creators


18%
 Critics


25%


Creators


Critics


Collectors


12%


Joiners


25%


Spectators


48%


Inactives


44%


Collectors


Joiners


Spectators


Inactives


Publish
a
blog
 Publish
your
own
Web
pages
 Upload
video
you
created

 Upload
audio/music
you
created
 Write
articles
or
stories
and
post
them
 Post
ratings/reviews
of
products/services
 Comment
on
someone
else’s
blog
 Contribute
to
online
forums
 Contribute
to/edit
articles
in
a
wiki


Use
RSS

feeds
 Add
“tags”
to
Web
pages
or
photos
 “Vote”
for
Web
sites
online


Maintain
profile
on
a
social
networking
site
 Visit
social
networking
sites
 Read
blogs
 Watch
video
from
other
users
 Listen
to
podcasts
 Read
online
forums
 Read
customer
ratings/reviews


None
of
the
above


Groups
include
people
participating
in
at
least

 one
of
the
activities
monthly.



Understand
All
The
Objectives
 ADVOCACY


AWARENESS


By
always
adding
value,
 your
customers
will
 become
advocates
of
your
 brand


Find
your
target
audience
 Make
them
aware
of
your

 products
and
services


They
will
pass
the
word

 and
start
the
cycle
over
 with
others
 RETENTION
 By
always
adding
 value
and
more

 relevance
to
each
 individual,

 customers
will
come
 to
you,
not
your
 competitors


ENGAGEMENT
 Now
they
know…but
do

 they
care?
 Entice
the
target’s
desire

 to
learn
more


SEGMENTATION
 With
new
data,
bucket

 customers
into
different
groups
 Provide
more
targeted,
relevant

 communications


ACQUISITION
 You’ve
engaged
your
target,

 they’re
willing
to
exchange

 data,
make
a
purchase,
etc.



Listening
 Learning
from
what
 your
customers
are
 saying



Talking
 Two‐way

 conversation,
 not
just
shouting



Energizing
 Helping
your

 best
customers
 to
recruit
others



Supporting
 Enabling
 your
customers
 to
support
 each
other



Embracing
 Involving
 customers
 in
your
 product

 development



Tools
used
to
accomplish
objectives
 Corporate function

Typical groundswell objective Listening — gaining insights

Appropriate social applications

Research from listening to customers

• Private communities • Brand monitoring

Talking — using conversations Marketing with customers to promote products or services

• Blogs • Communities • Social networking sites • Video or user-generated sites

Energizing — identifying • Brand ambassador programs Sales enthusiastic customers and using • Communities them to persuade others • Embeddable “widgets” Supporting — making it Support possible for customers to help each other Embracing — turning customers

Development into a resource for innovation

• Support forums • Wikis • Innovation communities • “Suggestion boxes”


Getting
The
Strategy
Right



Manage
Expectations
  

Make
sure
that
your
organization
understands
there
are
no
 overnight
successes
    

 

Don’t
be
greedy
  

 

To
become
a
viral
brand
requires
a
great
idea,
make
sure
that
you
 have
enough
ideas
to
reject
so
that
you
get
the
great
one
 Attempts
to
find
superficial
social
success
leads
brands
to
create
a
 presence
that
doesn’t
fit
brand
personality
or
inappropriate
 campaigns
in
the
hope
that
they
go
viral
 Just
because
you
have
thousands
of
followers
or
friends,
doesn’t
 mean
that
they
all
have
something
valuable
to
say


Measure.
Review.
Revise.
    

Getting
social
media
right
requires
regular
review
to
gauge
what
 works
and
what
doesn’t
 Once
you
know
what
works,
revise
your
social
media
strategy
to
 achieve
results
long‐term



Why
Do
Brands
Fail
In
Social
Media?
   Individuals
within
the
organization
work
independently


of
others
as
what
we
call
silos
   Organizations
fail
to
do
any
research
or
planning
to
 understand
what
social
media
is
and
how
it
operates
   Too
many
organizations
believe
that
social
media
is
 about
just
listening
to
what
others
say,
rather
than
being
 part
of
the
discussion
   They
fail
to
devise
a
message
for
the
media
making
their
 social
media
experience
seem
like
an
one‐off
experiment
   They
don’t
take
the
time
to
build
the
strategy
to
succeed
 assuring
that
they
will
fail



Traditional vs. Interactive Marketing - Part II  

Third lecture from my Interactive Global & Regional Marketing course.