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What’s love got to do with it?

@socialkemistri #SocialKemistri

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•Why and how marketing is changing for ever.•The power of personality + emotions •The new value equation.•How marketing is now about being social.•The profound impact of social on business &

marketing.

Tom Penney - StrategistOpening remarks and short biog

tom@socialkemistri.com

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Who’s this guy?

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Yes, he’s Don Draper of Mad Men.

Slick, Madison Avenue advertising executive. Part of an era when we were all supposed to want/like the same thing.

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A period of post war prosperity and optimism. A world recovering from fear, terror and austerity.

Everyone must have more of everything because it would make their lives better.

The beginnings of consumerism and advertising as a form of persuasion instead of information.

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Do you know who this is?

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He’s Peter F Drucker, management science guru. Clarke Professor of Social Science and Management at Claremont Graduate School. 1909 - 2005

He predicted many of the big changes in business over the last 20 years. Believed only 2 functions in business - innovation and marketing. The end of ‘economic man’ & the advent of ‘plant community’.

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If marketing is so important - what exactly is marketing?

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If marketing is so important - what exactly is marketing?

Is it Don Draper’s world - a world characterised by clever words & images, persuasion and manipulation?

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Some pundits/academics are already saying that kind of marketing is dead on its feet?

Are they right?

For sure It’s changing , and adapting to a new reality.

What is that new reality and what are the forces driving change?

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Marketing is discovering, understanding and satisfying people’s needs.

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The meaning & purpose of marketing is changing forever.

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There are 3 forces driving this changing view of marketing?

Jeff Koons - ‘Three Ball Total Equilibrium’

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People don't behave the way economists say they should.

Value is not sold - it’s co-created with the customer.

Search & social equips people with x-ray specs. Welcome to the era of hyper-transparency.

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Search and social changes everything.

Now everyone can see behind the facade of fancy marketing. People are connected to the facts and information that matters to them. More say, more control.

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People don't behave the way economists say they should.

Danny Kahneman 2002 Nobel Laureate for Economics

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People don't behave the way economists say they should.We are driven by our unconscious thinking, and that’s connected to our personality & emotions.

Danny Kahneman 2002 Nobel Laureate for Economics

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Value is not sold It’s co-created with the customer.

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Money is exchanged and part of the perceived value is attributed to ownership/possession . Most of it is crystallised in the customer experience.

Value in use, service dominant logic: Vargo & Lusch

Value is not sold It’s co-created with the customer.

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Value is personal and contextual.

•Each of us has our own reason for buying things.•We use things in our own way to satisfy all our needs. •Those include our deeper, unconscious, social and emotional

needs.

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Value = f(emotion, utility, usability, worth)

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People don't behave the way economists say they should.

Value is not sold - it’s co-created with the customer.

Search & social equips people with x-ray specs. Welcome to the era of hyper-transparency.

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What is the impact of these forces.

• Value in use - means more interactions with customers and a shift form transactions to relationships.

• Design value propositions and experiences not just products.

• New story about customer involvement & empowerment. Giving people a sense of ownership and control.

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Marketing is social

• Being social is being human.

• Humans beings are complex - multiple roles

• Getting close up and personal with customers.

• Building context, interactions, narratives and archetypes.

• Maximising enjoyment/ value during ownership

• Identifying & supporting people who are maxing value

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What is the science of social?

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The science of social is psychology

• De-coding the psychological contract between customer & brands

• Adding the psycho-graph to the social and interest graphs.

• Developing segmented value propositions by personality/emotion.

• Understanding the drivers of influence and trust - LikeMe

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What are the implications of this for the enterprise/business?

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• What we need to know about customers/employees

• Ideas about what people really want and need.

• How we define our business purpose.

• How we involve customers in the enterprise.

• The role of media and technology.

• The type and frequency of feedback.

• Formulation of strategy and business models.

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So what has love got to do with it?

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It’s more than a second-hand emotion.

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Love’s the emotion of strong affection and personal attachment.

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Love is something we can give/do for customers.

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Love has everything to do with it.

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Some books worth reading to find out more

• The Power of Habit - Charles Duhigg

• What Money Can’t Buy - Michael Sandel

• The Upside Of irrationality - Dan Ariely

• The Tell Tale Brain - V S Ramachandran

• Lovemarks - Kevin Roberts

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