Mobile Marketing

Simon VandyckVince VolleberghMax van Veen

MIS23/03/12

Agenda1. Introduction2. Comparison with traditional media3. Issues4. SWOT-analysis5. McDonalds case6. Implementation7. Future perspective8. Conclusion

What is Mobile Marketing?

According to Mobile Marketing Association (2009):

“Mobile Marketing is a set of practices ,that enables organizations to communicate

and engage with their audience,in an interactive and relevant manner,

through any mobile device or network.”

Stakeholders in MM

Current situation

Mobile ads work!However: full potential not yet captured

Search for local information

Search after seeing ad on

phone

Becoming important in

shopping habits

Problem Statement

How can mobile marketing add value to your business?

Example: QR-code

Comparison with traditional media

Differences on two points:

1. Degree of interactivity2. Degree of location dependence/relevance

Comparison with traditional media

Discussion

Do you think ‘the new media’ will replace traditional media in the long run?

Why or why not?

Issues 2005-2012

IIssue 1: Exploiting the capabilities of Mobile Marketing

Issues 2005-2012

IIssue 2: Using Universal Appeals to Tap into Global Markets

• in 2012, 33% of the mobile searches on Google involve local intent

• A pilot strategy is used to initiate Local Mobile Marketing

• Numerous companies emerge that offer Local Mobile Marketing support (i.e. clientstreams.com, localmobilemarketingformula.com, etc)

Issues 2005-2012

Issue 3: Addressing privacy concerns

• Reveal Yourself• Disclose offer terms

• Privacy Hot Seat• Increasing strict federal laws concerning consumers privacy

• Did you get permission?• Consumers need to opt-in

• Hidden Charges• Unauthorized charges to a consumers’ phone bill

• Patent Problem• More relevant for software and hardware companies2

Issues 2005-2012

Issue 4: Aligning Value-Chain partners

2

Issues 2005-2012Conclusion

Issues that have been dealt with Topics that are still an issue today

Exploiting the capabilities of Mobile Marketing

Addressing privacy concerns

Using Universal Appeals to Tap into Global Markets

Aligning Value-Chain partners

Mobile Marketing: a SWOT Analysis

Strength Weakness

Opportunity

Threat

Mobile Marketing

Strengths

• Market for people who cannot afford a PC• Independence of location• Personalization• Target specific audience• Relatively cheap

Weaknesses• General intolerance of advertising on personal devices

• Current WAP technology underdeveloped

• Trial and error process for mobile marketers in order to succeed

• Marketers are wary about consumers’ privacy

• Low reach

Opportunities

• Cell phone is a personal device easy to create personal relationship with customer• Messages sent to a phone are more likely to be read then an email• Build customer base• New field of marketing

Threats

• Scarcity of mobile websites

• New field of marketing (uncertainty)

• Decentralized industry, many different providers

• Reliable metrics are needed to calculate the mobile

marketing impact

http://www.youtube.com/watch?v=6l31BTQLHZg

Mobile ad campaigns running on Location enabled Mobile devices

• Mcdonald’s was able to increase foot traffic to stores by 33% in one day by Foursquare campaign

• Costs: $1000,-

Android, Blackberry or iPhone?

Implementation

• 36% of iPhone buyers previously Android/Blackberry

• 50% of upgraders come from Blackberry, 39% from Android

• Strong Member Platform Jumping

Implementation

Implementation

Implementation

Implementation1. Define the Strategy2. Determine the Communication3. Understand the True Cost4. Allow the Customer to Choose5. Allow Customers to Manage the Communication6. Manage Consumer Data with Respect7. Make the Offer Relevant and Valuable

Future perspective

How do you see the future of Mobile Marketing?

Future perspective

• Mobile marketing will complement traditional forms of advertising• Companies will have to figure out how to integrate a mobile marketing strategy within their overall marketing strategy• Mobile marketing can be a source of competitive advantage

Future perspective

People try to avoid advertising and promotions because of the pushy character of it

Mobile marketers should therefore carefully interact with customers!

ConclusionHow can mobile marketing add value to your business?

• Exploit strengths: lots of potential not yet captured• Explore future opportunities• Follow 7-step implementation approach• Make use of all platforms (Android, iOS, Blackberry)• Build interactive relationship, but keep privacy in mind• Complementary to traditional media

Lead, don’t follow!

Referencelist• http://www.youtube.com/watch?v=er7RtzpBccc• http://www.youtube.com/watch?v=CjUcq_E4I-s• http://www.youtube.com/watch?v=0scn4dgxJoY• http://qrcode.kaywa.com/• http://searchengineland.com/the-pros-and-cons-of-mobile-marketing-12207• http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=3&hid=13&sid=2d1add88-2e32-4293-81df-

50f6c1002b19%40sessionmgr11• http://www.mobilemarketer.com/cms/news/advertising/11613.html• http://www.mobilemarketer.com/cms/news/advertising/11134.html• http://www.mobilemarketer.com/cms/news/advertising/11189.html• http://www.mobilemarketeducation.com/case_mcdonalds.php• http://www.youtube.com/watch?v=z5SXAY5S7XQ• http://www.mobilemarketingwatch.com/android-blackberry-bleeding-users-to-iphone-4s-20596/• http://www.slideshare.net/LorelMarketingGroup/7-stes-to-implementing-mobile-in

• Sultan, F. & Rohm, A.J. (2005). The coming era of “ brand in the hand” marketing, MIT Sloan Management Review, Vol.47, Iss.1, p.83-90.

• Brown, C.V., DeHayes, D.W., Hoffer, J.A., Wainright Martin, E. & Perkins, W.C. (2009). Managing Information Technology, Pearson Education. Ch.10: Methodologies for custom software development.

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