Principles of Business: Stage 2

Lecture 4: The Future of Marketing

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OverviewIn this final marketing lecture in stage 2, we will learn all about the future of marketing. We will look at some of the major developments in this area and understand how well marketers are facing up the challenges presented.

We will thereafter look at the changing marketing landscape and how some of the traditional models of marketing are getting turned on their head.

In the final section, we will turn our focus to the major trends in the marketing area and look at the impact these have on consumers.

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Learning Outcomes

• Communicating with the customer: a multi-channel approach

• Detailed look at growth of digital, social and mobile marketing

• Data and Analytics and CRM

• Understand and articulate how consumers are impacted by the latest marketing trends

The Future of Marketing

The Sky’s the Limit (Literally)

View video: https://www.youtube.com/watch?v=aiXGUDnbSqs&list=PLDYVec6pytXsTnpXwWobMljnIxvnylh5c&index=9

However, the world is becoming more complex

5000 advertising messages experienced by a person during an average day.

Average attention span has declined from 12 minutes to 5 minutes.

64% of UK consumers use two or more devices to research related subject-matter.

30% of UK mobile users prefer to shop using their mobile device compared to their PC.

Cut-through is ever more challenging.

Relevant and engagingcontent is key.

Explosion of choice and information

So what?!...

7Sources: Fast Company (2012), Lloyds TSB (2011), Microsoft (2013), InMobi (2011)

But actually there is ALWAYS opportunity in adversity

View video: https://www.youtube.com/watch?v=Nj2its_KSAw

What are the major changes? Clue: Digital

Top of mind for CMO…

Source: IBM, 2013

Are we prepared?

Feeling the pain: Most CMOs are

underprepared to manage the impact of key changes in the

marketing arena.

Source: IBM, 2013

Are we prepared for it?

The situation is, if anything, worse than it was when we completed our last Global CMO Study. In 2011, 71 percent of the CMOs we interviewed told us they felt underprepared to

deal with the data explosion. Today, a full 82 percent feel that way.

A new digital paradigm?

Permission Persuasion

Participation Personalisation

Permission & PersuasionContact preferences Churchill on Facebook

Participation & Personalisation

Churchill Sponsorship of Animal Heroes Two Snap Quote

Mobile Data Marches to the TopSmartphones and tablets have fundamentally changed consumer habits. Mobile video is the fastest growing segment of mobile data traffic. Brands

need to think carefully and strategically about engaging with consumers on their mobile devices. By 2014, mobile internet is predicted to take over desktop Internet usage according to Microsoft Tag. According to GSMA

findings, consumer monthly spending on mobile content and services in emerging markets reaches almost $1 billion, which presents an additional

significant marketing and data analytics opportunity.

Source: TDWI, 2014

So Lo Mo

Combining Data Sources – Big Data

What is it?

“Big data refers to datasets whose size is beyond the ability of typical database software tools to capture, store, manage and analyze. This definition is intentionally subjective and incorporates a moving definition of how big a dataset needs to be.” McKinsey (2011)

What is its worth?

• $300 billion potential value to US Health Care• 250 billion Euros of potential value to Europe’s public sector

administration• $600 billion annual consumer surplus from using personal

location data globally

Source: McKinsey (2011), “ Big Data: The next frontier for innovation, competition and productivity”

Implications – Greater Predictability

Big Data – Real Time Marketing (CRM)

View Video: http://www.youtube.com/watch?v=SwLjTXRv-a0

Cloud Analytics

Amazon Web Services (AWS), Microsoft Azure, and other cloud computing platforms will continue to gain ground in 2014. Big data analytics solutions that require a pay-as-you-go data storage and computing-intensive analysis infrastructure can leverage these

platforms and go to market with much lower capital costs than ever before.

Source: TDWI, 2014

And here are some major consumer trends…

1. The Internet of Everything

End of Inefficiency

The Quantified Self

View video: https://www.ted.com/talks/gary_wolf_the_quantified_self#t-137527

We should start by keeping it simple

View video: https://www.youtube.com/watch?v=aMfSGt6rHos

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Essential work for next week

• Please consult the OLE for details of:– Essential readings*– Seminar/workshop preparation work*– Recommended further readings– Any additional learning

* Essential readings and preparation work must always be completed in time for the next session

End of presentation

© Pearson College 2013