MARKETING INNOVATIONS fontanini@learning.eoi.es @afontanini

Internal Environment

External Environment

the strategic management

process

Strategic Intent Strategic Mission

Strategic Competitiveness Above Average

Returns Feedback

Strategy Formulation

Business-Level Strategy Competitive Dynamics

Corporate-Level Strategy

International Strategy

Cooperative Strategies

Acquisitions & Restructuring

Strategy Implementation

Corporate Governance

Structure & Control

Strategic Leadership

Entrepreneurship & Innovation

Stra

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puts

St

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Acti

ons

Stra

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Out

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Marketing Strategy Planning Process

Customers Needs and other

Segmenting Dimensions

Company Mission, Objectives,

Competitors Current & Prospective

Context: External Market Environment Technology, Political & Legal, Social & Cultural, Economic

Targeting & Segmentation

Positioning & Differentiation

Narrowing down to focused strategy with quantitative and qualitative screening criteria

S. W. O. T.

MIX Analysis

People, Post Sale service, Promise Personal experience, Process

COMMODITY PRICES

AGENDA 1. CO-GENERATING VALUE ACROSS MASS

MARKETS 2. THE DIGITAL TRANSFORMATION: SEGMENTING THE

CUSTOMERS OF THE FUTURE (MILLENNIALS) 3. HOW TO ENGAGE IN THE DIGITAL ECONOMY WRAP UP

OUR (CUSTOMERS) CHALLENGES

http://www.elmundo.es/economia/2015/09/07/55e9d2f4ca4741547e8b4599.html

250 MILLION JOBS WILL BE TRANSFORMED BY 10 YEARS (10 MILLION IN UK)

http://www.enriquedans.com/2015/08/vehiculos-autonomos-pensando-mas-alla.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+ElBlogDeEnriqueDans+%28El+Blog+de+Enrique+Dans%29

THE BOT FUTURE TRANSPORT

HOW RELEVANT IS MY BRAND FOR THE SOCIETY I SERVE?

CO-GENERATING VALUE

CROWD-SOURCING MODELS

http://www.crowdsourcing.org/

https://en.wikipedia.org/wiki/List_of_crowdsourcing_projects

INFONOMIA CO-SOCIETY

http://www.infonomia.com/resources/

http://www.co-society.com/

http://www.co-society.com/activities/

CO-GENERATING PRODUCTS

LOCAL MOTORS

http://www.foxnews.com/leisure/2013/01/31/local-motors-partners-with-us-army-to-bring-crowd-sourcing-to-front-lines/

https://localmotors.com/

https://localmotors.com/explore/idea/category/fabrication/

https://localmotors.com/explore/idea/category/fabrication/

https://localmotors.com/dominos/

https://localmotors.com/3d-printed-car/

http://startup.singularityu.org/

INCUBATING/ACELERATING SOLUTIONS

AUTORADIOTVINTEGRATEDCHIPSFAXPCCREDITCARDSINTERNETSMARTPHONESFRACKING

ELECTRICCARSHUMANGENOMESECUENCINGMOBILEAPPSSOCIALMEDIAWEAREBLECOMPUTING3DPRINTING

ENTERPRISES EFFICIENCY + EXECUTION

START UPS INNOVATION

The Battle of Trafalgar1805 ~ 210 years ago Lord Nelson: 27 shipsNapoleon: 33 shipsLord Nelson: 17,000 menNapoleon: 30,000 menBritish casualties: 1,500+Franco-Spanish casualties: 16,000+

http://www.youtube.com/watch?v=GVXYAwXHpvg

http://www.ycombinator.com/

http://rocketspace.com/

http://svn.org/

INNER TECH BEST PRACTICES

Impact Investment Ethical Bank Crowdfunding P2P Finance Alternative currencies Social Entrepreneurship Green Business Benefit Corporations Ecological Corporations B-Corp Certifications Just Trade Sharing Economy Coworking

Hiperlocal Economies Urban Villages

Holacratic companies Triple Bottom Line Global Happiness Index

GOALS

EXTERNAL TECH BEST PRACTICES

+ GOOGLE X, SINGULARITY UNIVERSITY, DISNEY, ZAPPOS, AMAZON, ..

THE INSTITUTE OF THE FUTURE

http://www.iftf.org/home/

CHALLENGES

ENDESA Low cost utility based on CEX

MAPFRE Autonomous vehicles insurance

ALSA Bla Bla bus Uber bus

INSPIRATION

https://siyli.org/

http://www.makers-revolution.com/#2aa/custom_plain

AGENDA 1. CO-GENERATING VALUE ACROSS MASS MARKETS

2. THE DIGITAL TRANSFORMATION: SEGMENTING THE CUSTOMERS OF THE FUTURE (MILLENNIALS)

3. HOW TO ENGAGE IN THE DIGITAL ECONOMY WRAP UP

2000 INTERNET BUBBLE CRASH

Everything changes and nothing stands still. Heraclitus

The digital transformation

customer experience

operational processes

digital transformation

business models

Digital business is about the creation of new business designs by blurring the boundaries of physical & digital worlds

(GARTNER)

Dis

inte

rmed

iatio

n Dematerialization

Massive Disruption

Legacy channels devalue

Movies

Music

TV

Radio

News

$5bn 00-07 with

Self-service beats direct service

Amazon

Travel Banking

Insurance

Self-service beats direct service

Amazon

Net sales Revenues Amazon 2004 -2014

Self-service beats direct service

Amazon

Travel

Annual travel e-commerce sales in US 2002 -2014

HOW MANY TIMES HAVE YOU CALLED GOOGLE OR NETFLIX CUSTOMER SERVICE?

Access vs. Ownership

Streaming

SAAS

Sharing economy

PROPRIETARY

PROVIDERS CENTRALIZED

COMMONS DISTRIBUTED

OPEN

NO-COMMERCIAL

SOCIAL

USERS

COLLECT (ZIPCAR) INVENTORY

USERS / PRODUCERS ANY ROLE

EMPOWER (FON) USERS

CO - MARKET CO - CREATE

ENABLE (AIRBNB)

PARTNERS

SHARE (WIKIPEDIA) KNOWLEDGE

WWW

Five levers of accelerated growth

CONNECT (SPOTIFY) NETWORK THINGS

MOBI

The sharing economy

Why is it happening

now?

Internet Population1995

18 million

Internet Population2015

3 billion

Internet Population2020

7.5 billion

Graph: Peter Diamandis, Abundance 360

By NASA/Carla Cioffi

YOU ARE HERE

IOT ROCKET BOOSTERS

https://www.youtube.com/watch?v=m96tYpEk1Ao

By 2020 7B+ people and biz + 30B+ devices connected to the net. JORGE LOPEZ, VP & DISTINGUISHED ANALYST, GARTNER

NEW HABITS

Mobile Advertising growing fast

CONTEXT OPPORTUNITY

Cell phone more efective for spontaneous consumption

Polar Market Segments

THE CHALLENGE

NEED TO CHANGE

LOOKING FOR DIFFERENTIATION

NEW HABITS

Find new ways to Retain / Attract Audience

Align Comm Strategy to new Audience behaviors

Revitalize Advertisement business

AUDIENCES MEDIA BRANDS

Converge channel-mix to digital to increase impact

Shifting attention to Participation

Linear approach is no longer valid

Engage Audience demand new ways

MILLENNIAL GENERATION

Life through a screen 80M in the US + 51 M in Europe 2025: 75% of world workforce 81% in Facebook 83% sleeps with her mobile 25 hours/week connected estudio de Forrester Mobile and social networks addicted SPAIN Cambridge University Press 95% use Whatsup (50% 1 hour a day) 44% in YouTube.

( )

Born Digital Prefers Internet to TV 59% see movies in the internet (46% on TV).

1 2

Multi-screen, multi-device Multi-tasks In US (Nielsen): 1 hour less on TV per year (18-24) (Verizon) millennials consume X3 online TV.

Nomofobic and Appdicted Forbes Their life is mobile; their mobile is their net screen. 45%: I could not live without it. 5M APP download per day.

3

4

Social and connected 81% in Facebook 83% sleeps with her mobile Super connected millennials consider themselves better prepared and double the leadership skills score (32% vs 16%) Deloitte.

LATAM

Critic and exigents 86% would end her customer relationship due to a bad (digital) experience (59% in 2011) Technologically dependent while looking for a job Deloitte

5

Their brands

Google, Apple (11%)

Coca-Cola (6%) Microsoft (5%) Samsung (4%)

( )

Privacy has 150 years only

Millennial advantage They share their data (lower risk perception New York Times 25% says work is their main goal vs 39% for boomers (50-60 Y) Time is mine Companies must create value, be transparent and maximize their talent. Value loyalty and experience above all.

( )

Brands and millennials 2017: 50% of world consumers 6 Keys to understand them while consuming Born Digital Hyperconnected Big Data friendly Active and socially empatic Whats happening addicted Multi-device zappers. In US: major workforce (53,5M vs X (52,7M) and boomers (44,6M). Standard & Poor's: 600B US$ market/Y.

( )

How engaging them? Mobile and Internet addicted Socially and professionally Global Millennial Survey 2014

78% uses mobile devices to get news and communicate. Prefer smartphones based channels to be engaged by brands: APPs, Videos, Social networks (Facebook). Retale consulting While shopping off-line: 85% of millennials fathers use mobiles looking for comments on products they are buying. Mothers use mobiles to search for deals or discounts.

( )

They like brands but hate advertising Erin McPherson, by Maker Studios (major short videos distributor with 11B visits per month, 60% of users with 13-34Y, 70% of audience outside the US and 50% using mobile devices).

Branded, authentic content is the key to increase loyalty.

Loyalty massively depends of experience Aspect says 56% of users 18-34Y changed their supplier due to a bad service experience in 2015. Responsible consume Prefers products made by small firms and value just trade Breaking the myths (Nielsen). Ecological Centro de Investigaciones Pew millennials would pay more for enviromental friendly products (80% would work for them) Champions: UK, Denmark and Germany (Volkswagen L ) Spain is growing 7%.

Collaborative consume 50% uses sharing economy: Uber, Airbnb and TaskRabbit.

http://eproduct.hbsp.harvard.edu/eproduct/product/cc_8219/content/index.html;jsessionid=FBBC80A21D1BB2B7487CC865B1FAF895.eproduct1#reader-page-1

Hill-Rom Case

WHY DO PEOPLE HAVE DOGS? SEGMENT THE OWNERS

QUIDOL CASE

WHY WOULD A WOMEN WANT TO TAKE A PREGNANCY TEST?

Detractor Promoter

High

Low

AR

PU

NPS

http://www.mckinseyonmarketingandsales.com/sites/default/files/pdf/Insights%20driven%20sales.pdf

http://www.mckinseyonmarketingandsales.com/irrational-consumption-how-consumers-really-make-decisions

BEHAVIORAL ECONOMICS

https://hbr.org/2015/01/why-your-customers-social-identities-matter

But a customers social identity at such a moment cant be easily captured through questions on surveys, whether before or after the purchase. Subtle shifts in social context can dramatically change what group we identify with at any instant. Waiting in the business lounge to board a plane, we might reach for Harvard Business Review, not just for its content but also, subconsciously, to reinforce our identity as a successful executive. A chance conversation about the background music with a neighbor in the lounge, however, might lead us instead to choose a music magazine to reinforce our identity as a rock fan. This provides a plausible explanation for Electroluxs failed experiment. Answering questions as part of a consumer study might have triggered a market research respondent identity in people, making them try to judge the proposed service dispassionately and with an open mind (behavior appropriate to that identity). But out in the real world, the washing machines ran up against another well-defined aspect of social identity: Middle class families dont rent appliancesand they certainly do not need to pay per wash cycle, which would seem perilously close to feeding coins into the electricity meters found in some low-income homes. The target consumers didnt want people to question their status as members of the middle class.

https://www.youtube.com/watch?v=sqmsaE9d8cQ

LIFESTYLE (IDENTITY) SEGMENTATION

contemporary

BASIC LIFESTYLES

natural

BASIC LIFESTYLES

STA

TUS

LIFESTYLES SEGMENTATION

Past CULTURE Future

Influencers

The tipping point, Malcolm Gladwell

SE

GM

EN

TATI

ON

MA

P

AB

CC

AA BB

BC CD

CCC

BBB ABA

ABA

BBC

CCD

CDC

CCB

BCB

AAB

DDC

BBA

C

A B

We need data: machine learning

Model data. Make predictions. Build intelligent

applications.

Similar products they like Product Im buying

Output: other products I might be interested in

Playlist recommendations

Recommendations from coherent & diverse sequence

Friend recommendations Users and items are of

the same type

CUSTOMER GENOMICS

Investment amount

> 10 Financial Values

< 3 Financial Values

Bank Segmentation

140

Customer genomics

What are basic drivers for customer behaviour and preferences?

ENTHUSIAST

PRUDENT

PROFESSIONAL

PASSIVE

Interest Dedicated time Knowledge

in principle I am not interested

I woudl like but I do not have time

I like it and I dedicate time to it when I can

this is my job

To invest?

Risk Profile

Available Capital

Age

Incomes

Trust

141

WHO is our target?

PROS AND CONS

ENTHUSIAST PRUDENT PROFESSIONAL PASSIVE

She wants her money always available

Stock Exchange is unknown No time to invest

Neither time nor knowledge Saving accounts and low interest

deposits Following experts

She has knowledge She researches and take decisions She looks for better performance 2-3 Platforms

They manage a significant wealth Diversification and stability High knowlledge Real time

Simplicity and Good service

Insights, visuals and performance

Simplicity and trust

More options and better conditions

Gran cantidad de clientes Cliente con poca movilidad por lo general Generalmente no considera invertir Baja confianza y aceptacin

Colectivo importante de clientes Potencial para invertir Poca movilidad entre plataformas Menor exigencia que perfiles ms expertos pero mayor inters en invertir Desconfianza en el sistema

Disposicin a invertir en mltiples fondos y valores Inversin a largo y corto plazo Grupo reducido de clientes Uso de varias plataformas Alta exigencia en condiciones de prestacin del servicio

Mayor rentabilidad Grupo reducido de clientes Uso de varias plataformas Alta exigencia en condiciones de prestacin del servicio

142 DO WE HAVE A VOC LAB?

EVERYTHING IS BUILD ON VOC

143

BRAND PRODUCT

S PEOPLE PROCESS

VOICE OF CUSTOMER

SEGMENTING BY PRODUCTS?

AGENDA 1. CO-GENERATING VALUE ACROSS MASS MARKETS 2. THE DIGITAL TRANSFORMATION: SEGMENTING THE

CUSTOMERS OF THE FUTURE (MILLENNIALS)

3. HOW TO ENGAGE IN THE DIGITAL ECONOMY

WRAP UP

3 critical challenges for

businesses

1. Do you have the right

people?

and are they empowered to act?

KILL BUROCRACY

BRIDGE SILOS

OUR PEOPLE ARE OUR STRATEGY (HOLACRACY)

2. Do you know where to go?

Do you know how to get there?

Accelerated change

Time to market

A BUSINESS IS AN ETHICAL JOURNEY (TO CREATE IMPACT)

https://www.youtube.com/watch?v=0fKBhvDjuy0

CULTURE EATS STRATEGY FOR BREAKFAST

Left: 1967 Omega Speedmaster mechanical watch. Price: about $9,000 in todays dollars. Right: SEIKO digital quartz watch with ISA K63 commodity movement. Price: $7.

COLLABORATIVE INTELLIGENCE (KNOWLEDGE)

http://icxci.com/

http://icxci.com/

177

Conclusions, decisions and next steps!

Reinforces the real and perceived executiveness of the leader

3. Can you master digital experiences?

HELP YOUR CUSTOMERS TO CONTROL THEIR DIGITAL LIFE

https://itunes.apple.com/en/app/apple-store/id375380948?mt=8

http://recode.net/2015/11/11/facebooks-new-app-notify-pushes-content-to-your-lock-screen/

AGENDA 1. CO-GENERATING VALUE ACROSS MASS MARKETS 2. THE DIGITAL TRANSFORMATION: SEGMENTING THE

CUSTOMERS OF THE FUTURE (MILLENNIALS) 3. HOW TO ENGAGE IN THE EXPONENTIAL ECONOMY

WRAP UP

I WILL FEEL YOUR INNOVATION WHEN WHILE ENTERING YOUR BRANCH, SOME EMPLOYEES WILL STAND UP OFFERING TO SERVE ME WITH ENTHUSIASM

https://medium.com/the-ferenstein-wire/silicon-valley-s-political-endgame-summarized-1f395785f3c1#.zbklt5fyv

THERE IS NO SUBSTITUTE FOR QUALITY

Top 12 TechnologiesCrowd Leverage: Sharing & Sourcing Machine Learning: AI Global Reach: Real Time TranslationInternet of Things: Sensors & CamerasHigh Speed Internet: Mobile & Video Mobile AI: Robotics & DronesMaterialization: 3D Printing Quantified Self: Biotechnology & GeneticsSustainable Energy: Electric & HybridVirtual Reality: Gamified ConnectionVirtual Money: Digitized CurrencySpace Travel: Unlimited Resources

Top 12 Profit Streams

Agr

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Min

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Ener

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Con

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Man

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Med

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Mili

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Tra

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Fina

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Educ

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Com

mun

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ion

Ente

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nmen

t

Top 12 Purpose Streams

Nat

ural

, org

anic

food

Sust

aina

ble

Envi

ronm

ent

Ren

ewab

le E

nerg

y

Gre

en, s

mar

t ho

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Loca

l, su

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oduc

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100%

Fre

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Car

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Peac

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Sec

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Free

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Inco

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Equa

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Educ

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Equ

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Fre

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Cel

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Art

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Choose your purpose Connect Harness technology to disrupt the industries in your path.

Las organizaciones no se transforman, las personas s.

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