Non Traditional MarketingIñigo Gallo

Assistant Professor – IESE Business School

“It’s hard to say exactly what has driven the shift -perhaps it is our connected lives, or our abundance of choice, or the ability to get what we want when

we want it. But anyway you explore the trend, a new consumer is emerging: the Empowered Consumer”

Steven Rosenbaum

new consumer?

NEW CMO?doing orga-

nizingplanning

doing orga-nizingplanning

challenges we face

doing orga-nizingplanning

challenges we face

CHALLENGE #1: understand new journey

% of decisions?

90% of budgets

CHALLENGE #1: understand new tool kit

CHALLENGE #1: understand new tool kit

CHALLENGE #2: audiences vs. consumers

be part of the

conversa-tion*

generatethe

conversa-tion

*25% of content that appears in web searches for specific brand names is generated by consumers

CHALLENGE #2: audiences vs. consumers

be part of the

conversa-tion

generatethe

conversa-tion

0

5

10

15

20

Daily Once aweek

Once amonth

Once ayear

Neverdone this

MBA interactions w/ brands on social media

average views x video – top 100 global brands

how to overcome thelack of engagement?

22

What consumers care about What I

know about

the art of storytelling

CHALLENGE #3: experiences vs. products

experiences around your

product

Enjoy it out of home (with someone else)

PRODUCTyogurt

Enjoy it out of home (with someone else)

PRODUCTCloser to cafeteria

style & participate in the elaboration process

coffee

Enjoy it out of home (with someone else)

PRODUCT

Participate in the elaboration process

Learn: analyze, track, compare, …

tennis gear

how do you communicate an

experience?

communication of experiences is PERSUASIVE as long as it helps consumers TRANSPORT

into the experience

doing orga-nizingplanning

#1 new journey#2 audiences

#3 experiences

doing orga-nizingplanning

CHALLENGE #1: complex media plans

CHALLENGE #2: understanding new metrics

Source: Hoffman and Fodor, Can You Measure the ROI of Social Media Marketing?, MIT Sloan Management Review, 2010

Don’t give me information…

Give me INSIGHT

CHALLENGE #3: understanding attribution

1 Prepare your data

store it so that comparison is easy

detect patterns and apply simple rules

CHALLENGE #3: understanding attribution

1 Prepare your data

2 Experiment

TV spendingorganic search

display advertising

culture ofexperimentation

1 Prepare your data

2 Experiment

3 Apply statistical models

math increasingly important

doing orga-nizingplanning

#1 media plans#2 metrics

#3 attribution

doing orga-nizingplanning

CHALLENGE #1: break the silos

develop / find the talent!

digital marketing

doesn’t matter

marketing in adigital world

does

transactionalcustomers

consultativecustomers

Know what they want

You: commodity

Don’t want to meet

Cost focus

Criteria: price & convenience

Have a problem

Value your time

Want meetings

Advice focus

Criteria: expertise& trust

type of products / clients / salespeople

$Source: Neil Rackham, To increase sales change the way you sell, IESE Insight 2014

CHALLENGE #2: more agencies, less work

CHALLENGE #2: more agencies, less work

jury notout yet

coordi-nation

costs up

respon-sibility

stillyours

CHALLENGE #3: total transparency, a must

challenges we face

doing orga-nizingplanning

Non Traditional Marketing

Iñigo Gallo