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changing landscape of marketing
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Objective
Revolutionary impact of digital technology and how is it adapted by consumers and marketers
How has this changed consumers and marketers
Trends in Media
Impact of Digital technology on Education and
e-learning
Opened‐up learning to multiple delivery methods - in‐campus, distance learning ,e‐Learning and m-
learning
iPhone and iPad stamps their marks on the education sector
e-Books enter mainstream and students start embracing
Impact of Digital technology on Politics and
Finance
Perfected online fundraising by using social media
tools
Changed political fundraising & electioneering forever
Raised $45 million online
U.S. President: Barak Obama
Embedded hardware & service solutions in the
finance sector
Enabled investors an ability to crunch, analysis &
store data
Lifeline for mutual & hedge funds, insurance
brokers, banks & finance institutions
Mayor : Michael Bloomberg
Impact of Digital technology on Music and
Social Engagement
Salvaged the music business from declining CD‟s sales
Introduced iPod music player, iTunes digital music
software, the iTunes Store and iPad
Apple CEO Steve Jobs
Super‐sized dating possibilities at Harvard
University
Transitioned into a global social media
phenomenon
Delivered platform to connect and expand
friend/biz contacts
Facebook: Mark Zuckerberg
Impact of Digital technology on Video and
Information Search
Revolutionized the video‐ sharing business
Ignited a cadre of citizen video producers worldwide
YouTube: Chad Hurley, Steve Chen & Jawed Karim
Turned 1 followed by 100 zeros into cash cow
(Googol)
Monetized the Internet by linking advertising to
search
Owns # one search engine, online mapping, Gmail
et alia
Google: Sergey Brin and Larry Page
Plus ηa change, plus c'est la mκme chose.
In times of great change it is important to reflect
upon what has changed and what remains
unchanged
The New Age Marketing
“It‟s the economy stupid”
James Carville ,1992
“It‟s a people driven economy stupid”
Erik Qualman, 2009
What has changed ?
Production Consumption
Technology Information search ,compare & select products
Distribution Consume and share experiences
Who has triggered this change ?
Consumers
Four Ps of Marketing
Traditional Media Digital Media ( SN/Search, DTH/Mobile etc)
Product, Price
Place and Promotion
Shift in consumer control
Approach
Pre digital
Creative Driven
People Enabled
Creative was driving force with thought process
to build beautiful creative design that gets
people‟s attention
and then get people enabled to meet objectives
The way we interact with companies
and brands were limited to analog only.
In person, phone and in-bank branch
were primary ways the customer touched the brand
or company‟s service
Consumer checks and references was among peer
group, relatives, sales representatives and catalogues
Marketing Touch Points- Finite
Transformative shifts in Marketing
Phase1 – Music goes digital from LP to CD.
World of music doesn‟t change much
same model of conceptualization, creation
and distribution
Phase2 – Challenge for marketer as distribution becomes free
Phase1 – Books goes digital from Britannica to CD. World of
Books doesn‟t change much
Phase2 – Content becomes decentralized that changes
centralized concept of Britannica
Phase1 – From centralized, outbound not differentiated
campaigns using traditional media to centralized, not highly
differentiated outbound campaign using e-mail and landing
pages
Phase2 – Currency of marketers ( Information) goes digital
and is freely available
What is really happening ?
Information becomes free
Prospects access information online
Sales is no longer information conduit
Sales is not able to read body languages
The challenge of reading and understanding digital body
language of buyer falls on marketing
Approach
Digital
Performance Driven
Technology Enabled
Focus is on performance with thought process
can we measure the initiative ?
what technologies do we need to support
that initiative ?
what strategies will we need to meet our strategic
objectives ?
now let‟s build the creative
Creative has now become the fourth step in the new marketing approach thought process
Single Source and complete consumer control
Blogging
“Since the first computer in 1965, what used to fit in a building now fits in your pocket, what fits in
your pocket now will fit inside a blood cell in 25 years”
Ray Kurzweil
The line between digital and analog encounters blur all
together
The volume of “social touch points” reaches critical
mass. “ been there, done that” experience sharing
common on CGM. Fragmentation becomes the norm
Marketing recognizes and differentiates between “ yet
another talk channel” versus the desire to “enable
social participation”
Blending interactive and social to produce digital
applications that connect people and get them talking
Consumption happens anytime, anywhere
It‟s easier than ever to reach a large audience, but
harder than ever to really connect with it
With infinite customer choice of media, marketers are
competing to make those connections.
This and That
Traditional place of
Media in everyday lifeNew use of media
in everyday life
It is not
Like this
2008 2009 20102008 2009
2010
Traditional
place
of media
Traditional
place
of mediaTraditional
place
of media
Traditional
place
of media Traditional
place
of media
Traditional
place
of media
Traditional
place
of media
Traditional
place
of media
Traditional
place
of media
Traditional
place
of media
New use
of media
New use
of media
New use
of media
New use
of media
New Media has not replaced traditional media but has instead joined them
Turning the corners
Increased use of existing data and predictive models to make marketing decisions
Increasingly merging of offline and online marketing strategies
Interactive to social applications
Increased collaboration
Listen Participate Collaborate
Focus shifting to Insights :
Enable interested people to find your brand
Better understanding of consumer preferences
Increase consumer engagement
Become an Industry thought leader
The Buyer has changed; Marketers will too
Interactivity and control in hands of consumer
Volvo ran a homepage on Youtube that had a Twitter feed embedded in the ad. Unit
Networked and mobile consumer
Using technology to create, share and distribute information
Conscious consumer
Demands authenticity and transparency
BP oil spill
Ecopolitan houses/office and Green products ( car & appliances)
SBI Green Channel
1
The Buyer has changed; Marketers will too
“ Tell – and- sell marketing” (No linear process of one way communication with consumers)
to “Discuss with” ( Marketers and advertisers need to work with consumers)
Producing communication with a brand message to producing Consumer value
The Buyer has changed; Marketers will too
transition from being seller to collaborator, advertiser to experience creator
marketers are increasingly using process of working together with customers to create value in marketing exchange
P&G advisors program to collaborate with customers in developing new product offerings
media increasingly becoming more personalized and participatory. BBC program missed can be watched on BBC I-Player
“We are five years away from fully individualized drag and drop TV & Radio stations”
Mark Thompson ( Chairman of BBC)
Serve customers how they want to be served
Campaign Management
Use digital body language to understand
buyers
Deliver the right message to the right person at
the right time
Use automation to respond to his/her time
frame not ours
Sales and Marketing Alignment
Use digital body language to understand who is
ready to buy
Connect sales with those who are, nurture
those who aren‟t
Data Management
Model the phases of buying process
Use the digital body language to see when the
buyer is at what phase
Keep data clean and consistent
Marketing Analysis
Use the digital body language to understand
campaign influence
Understand the phases of buying process
The Buyer has changed ;Marketers will too -
Interacting with the new consumer
The Importance of When
the popularity of Twitter has helped marketers to focus on one element of media - the importance of
WHEN
real time communication is beginning to happen on many more platforms than just Twitter through
tools like status updates on Facebook and LinkedIn and mobile messaging
auto companies like GM & Toyota are partnering with Edmunds.com ( online automobile information
provider) to create contextual messages that are triggered by customer activity and facilitate customer
decision making. Replacing „Just-in-case‟ with „Just-in-time‟ communication
reaching audiences anytime, anywhere ,on any device will drive engagement and conversion
many adverts already carry URLs, in the future we will see ads linking to desktop widgets etc.
2D bar codes ( QR codes) –
2
Communicating with multiple stakeholders
Who
Consumer
Reporters
Analysts
Competitors
Regulators
Activists
Why
To Inform, Purchase and spread Loyalty
Accelerate Research, Fact –finding
Offers scoop/Insight‟s
Intelligence gathering
Vocal consumers provide indicators into future
problems
Helps reinforce or solidify a key position
3 Changing notion of one stakeholder- Consumer. Other non-commercial stakeholders have become
important especially with the emergence of social media.
Who are these stakeholders and what are there motivations ?
Increasingly marketing strategies are designed taking cognizance of not just consumers but also these
external stakeholders eg Royal Caribbean Cruz … HaitiPassengers took to an Internet message board to protest the idea of vacationing where "tens of thousands of dead
people are being piled up on the streets
Communicating with multiple stakeholders
Scan current state:
Analyzing the top 10 sites/ forums that discuss brand/ competition
What information is sought
Do customers speak highly about the brand or not
Is sentiments positive or negative
Which discussion board or website are sought out for authority by analyst who cover category
What issues are most likely to prompt consumers to spread information to others
Decide
Which issues deserve the most attention from you
How can CGM be used to promote/ minimize negative message damage in social space
It‟s not the size of brand megaphone that matters any more; it‟s the size of consumer
megaphones that is becoming important
3
Interactive to Social They are talking to each other before they are taking to the brand
Social networking and exchange of information outside the brand space is increasing
More than 1.5 million pieces of content ( weblinks, news stories, blog post, photos etc) are shared on Facebook daily
Twitter averages 50 million tweets per day with 2-3 twitter accounts activated every second
Twitter is a vast –self answering community. Increasingly people go on twitter to ask questions and get
answers
marketers are “growing more ears”
Dell approach to Twitter:
“We don‟t have a choice on whether we do social media, the question is how well we do it”
Erik Qualman
4
RelevanceFundamentally altering consumer mindsets, rapidly shifting consumer preferences and transformed consumer
spending habits ,makes it inevitable for us to remain relevant
The right relevance( right message, at the right time to the right person) and the right response factor ( right segmentation,
demographics, psychographics, lifestyle) is gaining importance
3D consumer classification ( Attitude, experience and interest) replaces only demographic /psychographic classifications
Not just showing ads when a consumer is actively searching , but rather using what they are searching for to understand
what is relevant to them, advertising is getting closer to information
Consistent message no matter the medium, should be relevant and resonates with consumers
Segmenting financial consumer
The Delegators21% of the audience
25-45 yearsSEC A
Metros, Mini Metros
The Validators40% of the audience
35-45 yearsSEC A1-, B
Smaller Towns
Financial Consumer segmentation
Source: 3D 2007
GatherInformation
Don’t GatherInformation
Ignore advisors Rely on advisors
Self-Directed23% of the audience45-55 yearsSEC A, A1Metros & Mini Metros
The Avoiders17% of the audience25-35 yearsSEC A2, Sec BSmaller Towns, Mini Metros
38
Attitude ,Value and Needs
Source: 3D 2007
Self-Directed“I Have Confidence in Me”
Wants to take control ,
be it in terms of security and
finances.
Value: Information, speed and
control.
Needs : High need of
empowerment. Needs control
The Avoider“Trust no one”
Mistrusts advisors, does not want
in your face service
Value: Safe investments that are
simple and hassle free
Needs: Simplicity
The Validator“Money, money, money”
Wants to stretch the rupee to the
maximum
Value: Information, advice, trusted
relationship.Needs: High need of Information.
Will need personalized service
in all channels
The Delegator“Be there & take care of me”
Looks for someone who‟ll be
available at all times, offers great
service
Value: Advice, good service and a
trusted relationship
Needs :High need for relationship
Financial Behavior
Self-Directed• Takes financial decisions by
himself
Selects best products and price
Thinks he can outsmart the
market and make money when he
wants
Does his research before
investing, gathers information to
aid him
The AvoiderTends to spend money without
thinking
Is risk averse
Distrust financial advisors
Believes it is too early to start
planning for the future
Does not gather information
The ValidatorInterested in finances
Seeks advice on complex
decision
Believes he is good at managing
money
Is happy with his current
standard of living
Invests in stocks, shares and
mutual funds
The DelegatorTends to spend money but does
not like the idea of being in debt •
Prefers to have someone more
knowledgeable help with decision
• Wants to be a saver and a
planner • Does not actively gather
information
The DelegatorTends to spend money but does
not like the idea of being in debt
Prefers to have someone more
knowledgeable help with decision
Does not actively gather
information
Source: 3D 2007
Research Decisions
Self-Directed• Financial company website,
Online reviews, research, price /
product comparison on websites,
Newspapers & Magazines
The AvoiderAdvertising, Newspapers and
Magazines, Friends and family
The Validator•Agents, Sales representatives,
Broker/ financial advisor,
Advertising, Financial company
website, Online Reviews,
Research, Price /Product
comparison on websites,
Newspapers & Magazines
The DelegatorTends to spend money but does
not like the idea of being in debt •
Prefers to have someone more
knowledgeable help with decision
• Wants to be a saver and a
planner • Does not actively gather
information
The Delegator• Agents, Sales representatives,
Broker/ financial advisor,
WOM/Friends/Family, Advertising
Source: 3D 2007
NEED
VA
LIDA
TION
Financial Consumer segmentation
SELF
DIR
ECTE
D
DELEG
ATE FIN
AN
CIA
L P
LAN
NIN
G
GatherInformation
Don’t GatherInformation
Ignore advisors Rely on advisors
LOW
TR
UST
42
New Users ( How we get them to play)
What will make them try RBS?
How can we address this through marketing
New Users ( How we get them to play)
How can we build trust with them ?
How can we address this through marketing?
Brand Switchers
What will make them switch brand ?
How can we address this through
marketing?
Brand Switchers
What will make them switch brand ?
How can we address this through
marketing?
I Have Confidence in Me…
They want to take control of their own , be it in terms of security or finances.
Consumer satisfaction :
Product and operational focus
Marketing Opportunity:
Empower him to participate through feedback and dialogue in the process of product enhancement
and correction. Help them to be in control of their access to products and services
Media Implications
Provide him with information ( Newspapers & Online ) DM/ EDM, will look for online reviews, challenging
and engaging online/ on-air evolved financial games Provide him information /investment alerts on mobile/
mail, DM/EDM, editorial content ( reviews/ratings/analysis) will be critical
Applying Segmentation : Self –directed
consumers
Money, Money, Money…..
They continue to focus on pruning unnecessary expenses and shop with a list. They are spread across
income classes and try to stretch their rupee farther.
Consumer satisfaction
Human and product focus
Marketing Opportunity:
Up-front the value a brand offers to him. Help him feel smart about getting better bargains through
innovative schemes and promotions. Enhance the aspirational value of brands so he feels better about
investing with you
Media Implications
Will look for information – read more of newspapers ads, online, company reports , compare product
features. High standards and high expectations from Advisors. Will source information. Provide him with
account alerts , industry analysis etc
Applying Segmentation: Validator
I‟d do anything for you, dear….
They buy more face-to face.They require service and look for trusted relationship with financial advisors
Consumer satisfaction
Human and operational focused
Marketing Opportunity
Use the closer relationship to build differentiation
Media Implications
Will not actively source information. Important to establish trust and relationship with them.
Need Personalized Service
.
Applying Segmentation :Delegators
.
Fear, lack of Knowledge, distrust financial advisors, risk averse…
High degree of distrust. They need simplicity ,handholding and constant reassurance
Consumer satisfaction
Product (simple solutions)
Marketing Opportunity:
Handhold with simple solutions to make them feel safe
Media Implications
Investment handbooks, engaging financial online games, Establishing trust
Applying Segmentation : Avoiders
Automation
Integrating all the marketing tools deployed into one unified system
All forms of marketing and lead generation
Increased need of marketing to understand Who is Where, When
Joining all marketing initiatives into one tool to create integrated programs and matrix for
measurement, to improve overall ROI and workflow
The focus shifting from the number of leads created to quality of leads passed to sales
Media
SocialCGM
Interactive
&
Collaborative Marketing and
Communication
Awareness
( Mass Media/ Search)
Visibility/ Presence
Building brand strength
Instill Consumer
Confidence
Can the strategies be integrated across media ? Can we close the loop on sales ?
Can we tie it back to sales, so that performance can be measured ?
Instead of tactical „new media‟ executions, marketers focusing on understanding
consumer motivations which in turn form basis of strategic media ideas
Applying Framework
Entertain ConnectInform Assist Convert
Website/
One to one
Sales visits
Widgets, Call
center, Applications
Advertising, DM,
EDM,PR,
Organic and Paid
Search, Rating
sites, Forums
Interaction and
Engagement
activities, SN,
Blogs
Ads, Banners
Videos, Games
Viral
5
Five Emerging Technologies
Apple’s Tablet
Online TV
Cloud Computing
Augmented RealityMobile Transaction (Mobile Banking)
2009: A slowdown year, however ended
inflationary
-10%
-5%
0%
5%
10%
15%
20%
25%
2007 2008 2009
TV Print Radio Cinema Outdoor Internet
Pulled
down
rates
Contrib
uted to
Inflation
IPL, Increased
cricket days
Inventory full,
Monopolistic
print markets
Fragmentation
Financial, real-
estate, retail-
Slow down
3-4 months in
the initial year
was bad
Initial projections 9-12% inflation for 2010
2009 2010
Medium % Disp Inflation%
Disp Inflation
TV 39 6 40 12
Print 47 7 45 9
Radio 4 8 5 5
Cinema 0 -4 1 4
Outdoor 5 0 6 8
Internet 3 10 4 8
Overall 6.3 9.9
Magna Global Inflation Update: Media Price Inflation Expectation - 2010
BRIC TV Internet Newspaper Magazine Radio Cinema Outdoor Total
China 31 25 8 10 16 10 8 20
Brazil 10 4 15 10 6 6 9
India 10 12 10 5 2 3 9
Russia 5 15 8 8 5 10 7
Source : Universal Lodestar
Source : GroupM
The largest consumer base influences media &
consumption
Products segmented ; specific media choices
2 n d l a r g e s t m a r k e t
B u t y e t u n d e r p e n e t r a t e d
Television 60%
Satellite TV 50%
Digital TV 10%
Print 44%
Online 1%
Radio 23%
Cinema 5%
3
U : 79%, R : 44%
Total TV Reach
U : 52%, R : 14%
Cable &Satellite Reach
U : 56%, R : 30%
Print Reach
U : 24%, R : 21%
Radio Reach
U : 5%, R :0.3%
Internet Reach
U : 7%, R: 2%
Cinema Reach
Pop. = U : 256 Mn, R : 567 Mn
Rural India & some geographies remain media
elusive
2 0 m n D T H h o m e s , 1 4 m n i n r u r a l I n d i a , 2 8 % g r o w t h
T e c h n o l o g y o v e r c o m i n g i n f r a s t r u c t u r a l i s s u e s
4
Internet consumption had gone up by 70%, from 9.2 hours a week in 2008 to 15.7 hours/ week in 2009
Next phase of growth is expected from vernacular content.
D i g i t a l b o o m , y e t u n d e r u t i l i s e d
5 2 5 m n m o b i l e u s e r s , 7 1 m n n e t u s e r s , 1 3 m n f a c e b o o k
5
5 4 % o f I n d i a i s u n d e r t h e a g e o f 2 5
N e w f o r m a t s N e w m e d i a M y m e d i a
6
The traditional media reach is stagnating
Youth consume( multi-media taskers), communicate( IM, SMS,Chat) and create media( Blog, Video & Photo
sharing) at the same time Cost of reaching & engaging with youth is higher than women/men by 150%
Changing audiences shaping content
Impatient
Generation
Clinging
Generation
Trendy
Generation
Television
Content
Housewives, Older
Slow in evolution, follow set tradition
Influenced by neighbors, relatives, friends
Excitement is in the form of story linked to
characters
Soaps
Strong loyalty to program
64%
Youth/CWE
Instant gratification
Surfers
Excitement is in the packaging,
star presence
Sports, Movies, News
Loyalty not easy to set
22%
Metro based Youth/Kids 10+
Western
Tough to keep pace with
New content ideas constantly
Reality & interactive shows
Quick to adopt new format
Easy loyalty breakers
14%
Diversity in population creating innumerable
media vehicles Over 450+ TV Channels
78223 Publications
6826 Newspapers, 71397 Magazines
366 Radio stations
120 Private FM stations
12900+ Cinemas; 73 multiplexes with 279 screens
Claimed Users: 52 mn
Active Users: 32 mn
L i t e r a c y s p u r s p r i n t b o o m
1 0 % g r o w t h , r e v e n u e s $ 2 b n , > 1 2 m a j o r l a u n c h e s p . a
8
Exp lod ing TV, Rad io s ta t i ons , pub l i ca t i ons , webs i tes e tc .
F ragmen t ed a t t en t i on f o r a l r eady p r essu r i zed consum er s
10
Source: IRS TG: Males 15+ Sec AB
108 Minutes/day
10 Visits/year
27 Minutes/day
81 Minutes/day
63 Minutes/day
112Minutes/day
36Minutes/day
10Visits/year
82Minutes/day
82Minutes/day
4 Minutes
9 Minutes1 Minutes
20 MinutesVisits
Time Spent on media