The Information Revolution and the Future of Marketing

Matt DuffettBryan GeorgeKaty Koschel

Elizabeth Shum

Taking Advantage of New Taking Advantage of New Marketing TechnologiesMarketing Technologies

4 Guidelines for Success4 Guidelines for Success

Don’t bet the farm on 1 Don’t bet the farm on 1 new technologynew technology

Focus on Content, not Focus on Content, not TechnologyTechnology

Beware of Information Beware of Information OverloadOverload

Recognize the importance Recognize the importance of Contrarian Marketersof Contrarian Marketers

8 Strategies for Interactive 8 Strategies for Interactive Marketing SuccessMarketing Success

Don’t go it aloneDon’t go it alone Use ongoing dialogueUse ongoing dialogue Be a value- added marketerBe a value- added marketer Put more focus on the specific offersPut more focus on the specific offers Recognize your enemy- promo clutterRecognize your enemy- promo clutter Utilize a flexible automation systemUtilize a flexible automation system Be a leader, not just a managerBe a leader, not just a manager Do it right or Don’t do it at allDo it right or Don’t do it at all

TheThe EndEnd ofof BignessBigness

The Future of 1 to 1 MarketingThe Future of 1 to 1 Marketing

http://www.clickz.com/experts/brand/brand/article.php/820371

Orwell’s Orwell’s 19841984 vs. vs. Bush’s Bush’s Information Information

RevolutionRevolution

The PredictionsThe Predictions

OrwellOrwell Big BrotherBig Brother Thought PoliceThought Police Limited Information Limited Information

from the Governmentfrom the Government Fear that crushes Fear that crushes

privacyprivacy

BushBush MemexMemex computer computer Freedom through Freedom through

InformationInformation

What’s NextWhat’s Next

Video EmpowermentVideo Empowerment

-Video Dial Tone-Video Dial TonePrint EmpowermentPrint Empowerment

Villanova University LibraryVillanova University Library

-VUCat-VUCat

ResultsResults

Privacy IssuesPrivacy Issues ““Hunters and Gatherers”Hunters and Gatherers”

- liberation from the land- liberation from the land- freelancing- freelancing

- “we will all have to forage and we - “we will all have to forage and we will all not eat well”will all not eat well”

Electronic GeographyElectronic Geography- labor shifts- space, time, money - labor shifts- space, time, money - movement to the “non- burbs”- movement to the “non- burbs”

ResultsResults

““Who to believe?”Who to believe?”

- everyone is an authority- everyone is an authority Idea PiracyIdea Piracy FractionalizationFractionalization

- when your news is the only news- when your news is the only news Innovation and “Monopoly Rent”Innovation and “Monopoly Rent”

All your products are ephemeral.All your products are ephemeral.

Only your customers are Only your customers are real.real.

Pink Jeep Tours- Sedona, AZ

• Previous System– 5 minute reservation time– DOS-based program– Scheduling and organizing

tour lengths and party sizes on automated clipboards

• Magnetic boards often knocked over- chaos ensues

– Software with multiple screens, overbooked and underbooked tours

• Current System– One minute reservation

time– Proprietary reservation

software package– Sales now more than

double what they were before upgrade

– 119% internet reservation increase in 2003 over 2002

– Servers updated in 2003, Intranet for tour guides to access from home

– Will update phone system

Online MarketingOnline Marketing

Online MarketingOnline Marketing

““If 2002 was the year of search engines If 2002 was the year of search engines and e-mail marketing, 2003 is the year of and e-mail marketing, 2003 is the year of wireless and Weblogs as a hot interactive wireless and Weblogs as a hot interactive marketing technologies. Both these marketing technologies. Both these technologies promise to turn technologies promise to turn communications and media into much communications and media into much more widespread, interactive affairs, thus more widespread, interactive affairs, thus they hold huge potential for business they hold huge potential for business marketing. But so far potential is all they marketing. But so far potential is all they have.” --have.” --Michael Fitzgerald-looking ahead Michael Fitzgerald-looking ahead at marketing tech. at marketing tech.

Online MarketingOnline Marketing

Internet as a Internet as a marketing channel marketing channel will increase for will increase for two reasonstwo reasons• Internet is cost Internet is cost

effectiveeffective• Internet enables Internet enables

targeted targeted communicationcommunication

Online MarketingOnline Marketing

E-mail was found to be the most E-mail was found to be the most preferred methods for receiving preferred methods for receiving promotionspromotions

Currently, e-mail marketing Currently, e-mail marketing messages are facing backlashmessages are facing backlash therefore marketers are avoiding therefore marketers are avoiding Instant Messaging for now.Instant Messaging for now.

Instant MessangingInstant Messanging

   Abbreviated Abbreviated IMIM, a type of communications , a type of communications service that enables you to create a kind of service that enables you to create a kind of private private chat roomchat room with another individual in with another individual in order to communicate in order to communicate in real timereal time over the over the InternetInternet, analagous to a telephone conversation , analagous to a telephone conversation but using but using texttext-based, not voice-based, -based, not voice-based, communication. Typically, the instant communication. Typically, the instant messaging system alerts you whenever messaging system alerts you whenever somebody on your private list is online. You can somebody on your private list is online. You can then initiate a chat session with that particular then initiate a chat session with that particular individual.individual.

Instant MessagingInstant Messaging ProvidersProviders

• AOL Instant AOL Instant MessengerMessenger ( (AIMAIM) )

• MSN MessengerMSN Messenger • Yahoo! MessengerYahoo! Messenger

Programs includedPrograms included• Instant messagesInstant messages • ChatChat• Web linksWeb links• ImagesImages• SoundsSounds• FilesFiles• Talk Talk • Streaming ContentStreaming Content

Instant MessagingInstant Messaging

Instant messaging really Instant messaging really exploded on the Internet scene exploded on the Internet scene in November 1996. That's when in November 1996. That's when MirablisMirablis, a company founded , a company founded by four Israeli programmers, by four Israeli programmers, introduced introduced ICQICQ, a free instant-, a free instant-messaging utility that anyone messaging utility that anyone could use. could use.

ICQICQ

ICQ, a combination of ICQ, a combination of letters that is shorthand for letters that is shorthand for the phrase "I seek you," is a the phrase "I seek you," is a real-time tool that uses a real-time tool that uses a software application, called software application, called a a clientclient, that resides on , that resides on your computer. The client your computer. The client communicates with an ICQ communicates with an ICQ server whenever you are server whenever you are online and the client is online and the client is running. running.

Instant MessagingInstant Messaging Instant Messaging is Instant Messaging is

perceived by users to perceived by users to be personal be personal communication tool communication tool and not a and not a promotional vehiclepromotional vehicle

Focus groups said “it Focus groups said “it was ‘inappropriate’ was ‘inappropriate’ for IM to be used for for IM to be used for promotion”promotion”

Advertising via IM Advertising via IM may be ineffectivemay be ineffective

Instant MessagingInstant Messaging

Form of IM-based marketingForm of IM-based marketing• IM botsIM bots• Interactive agents are software applications Interactive agents are software applications

that interact with users via IM or other text-that interact with users via IM or other text-messaging servicesmessaging services

• Used by companies wanting to push products Used by companies wanting to push products or services to consumersor services to consumers

• Most popular: SmarterChild- reached 8 million Most popular: SmarterChild- reached 8 million AIM usersAIM users

IM Robot ExampleIM Robot Example

AOL IM RobotsAOL IM Robots

Instant MessagingInstant Messaging NeighboringNeighboring

• IM Marketing ModelIM Marketing Model• Developed by Todd Developed by Todd

TweedyTweedy Believes IM networks Believes IM networks

will create two degrees will create two degrees of separation from of separation from advertisers, and advertisers, and prospective new prospective new customerscustomers

• Encourages individuals Encourages individuals to express their own to express their own views and voice about views and voice about a product to service to a product to service to their own network of their own network of personal contactspersonal contacts

NeighboringNeighboring

Uses dialogs that are initiated, modified, Uses dialogs that are initiated, modified, and terminated by individuals within an and terminated by individuals within an IM network – marketing firm. IM network – marketing firm.

Lets advertisers not by a corporation or Lets advertisers not by a corporation or gain access to closed-social networks by gain access to closed-social networks by using real-time communication tools, using real-time communication tools, such as IMsuch as IM

Power of this model lies with the Power of this model lies with the influence of word of mouth influence of word of mouth

NeighboringNeighboring

StepsSteps• Step 1: Step 1: Gain IM client and alias names of your most Gain IM client and alias names of your most

valuable customersvaluable customers• Step 2: Step 2: Invite customers to support your business Invite customers to support your business

and offer incentives for them to refer your services or and offer incentives for them to refer your services or products across their network products across their network

• Step 3: Step 3: Acknowledge their supportAcknowledge their support• Step 4: Step 4: Be committed to being of service, and Be committed to being of service, and

leverage customer permission to request opportunities leverage customer permission to request opportunities to reach out to customers in their network.to reach out to customers in their network.

NeighboringNeighboring

BenefitsBenefits• The ability to transform personalization The ability to transform personalization

techniques into scalable systems that support techniques into scalable systems that support mass marketing objectivesmass marketing objectives

• Providing targeted and permission-based Providing targeted and permission-based interactionsinteractions

• The ability to detect whether someone is The ability to detect whether someone is online and deliver just-at-that-time online and deliver just-at-that-time communicationscommunications

• Distributed referrals through small closed-Distributed referrals through small closed-networks of private contact lists or buddy listsnetworks of private contact lists or buddy lists

iTV: The Future of TelevisioniTV: The Future of Television

iTV: The Future of TelevisioniTV: The Future of TelevisionWhat is it?What is it?

““Due to the infancy of the market, any description Due to the infancy of the market, any description of what constitutes ITV is necessarily a working of what constitutes ITV is necessarily a working definition. …the definition proposed by the British definition. …the definition proposed by the British broadcasting regulator, Independent Television broadcasting regulator, Independent Television Commission (“ITC”): ITV services are ‘pull’ Commission (“ITC”): ITV services are ‘pull’ services initiated by the subscriber to a MVPD services initiated by the subscriber to a MVPD that are not necessarily related to any specific that are not necessarily related to any specific video programming.” – Hernan Galperin & video programming.” – Hernan Galperin &

Francois BarFrancois Bar

iTV: The Future of TelevisioniTV: The Future of TelevisionWhat is it?What is it?

Two types of ITVTwo types of ITV:: Program-related servicesProgram-related services

“…“…services that are directly related to one or more video services that are directly related to one or more video programming streams. They enhance and extend the programming streams. They enhance and extend the broadcaster’s core business.” – Galperin & Barbroadcaster’s core business.” – Galperin & Bar

Examples: “…to play or bet along with a show or sports Examples: “…to play or bet along with a show or sports event, to interact with other viewers of the same program, or event, to interact with other viewers of the same program, or to initiate transaction of goods or services featured in the to initiate transaction of goods or services featured in the video programming.” –Galperin & Barvideo programming.” –Galperin & Bar

Dedicated ServicesDedicated Services “…“…independent from any specific programming stream.” – independent from any specific programming stream.” –

G&BG&B Examples: “…video-on-demand, e-mail, games, gambling, Examples: “…video-on-demand, e-mail, games, gambling,

and electronic banking.” – G&Band electronic banking.” – G&B

iTV: The Future of TelevisioniTV: The Future of Television iTV’s place in the marketiTV’s place in the market

40% of respondents to a UK 40% of respondents to a UK study said iTV would play a study said iTV would play a part in their future marketing part in their future marketing effortsefforts

““Interactive TV is a true opt-in Interactive TV is a true opt-in medium, where the consumer medium, where the consumer chooses at all stages how the chooses at all stages how the relationship is controlled.”relationship is controlled.”

Through iTV marketers hope Through iTV marketers hope to change the way consumers to change the way consumers view advertisements and view advertisements and information.information.

iTV: The Future of TelevisioniTV: The Future of Television Role of Digital TechnologyRole of Digital Technology

““We’re piloting the use of digital We’re piloting the use of digital technology to deliver different promotional technology to deliver different promotional messages to different types of homes.” – messages to different types of homes.” – iTV broadcasting chief exec. Mick iTV broadcasting chief exec. Mick DesmondDesmond

iTV is also taking measures to build iTV is also taking measures to build relationships with advertisersrelationships with advertisers CD-ROMsCD-ROMs

iTV: The Future of TelevisioniTV: The Future of TelevisionFirms that use iTV to advertiseFirms that use iTV to advertise

Sky Broadcasting – BritainSky Broadcasting – Britain Sky ActiveSky Active Sent information to advertisers Sent information to advertisers

explaining optionsexplaining options Sky TextSky Text

Honda – UK AdsHonda – UK Ads First iTV ad was for the CivicFirst iTV ad was for the Civic

Starcom MotiveStarcom Motive Press Red’s Blackbox DesignerPress Red’s Blackbox Designer

Honda Accord AdvertisementHonda Accord Advertisement Produced by Wieden + KennedyProduced by Wieden + Kennedy Aired on April 6Aired on April 6thth during iTV’s during iTV’s

broadcast of the Brazilian Grand broadcast of the Brazilian Grand PrixPrix

British AirwaysBritish Airways Adaptation of the current “Club World” Adaptation of the current “Club World”

ad campaignad campaign Uses interactivity to explain benefits to Uses interactivity to explain benefits to

club membersclub members Ad ExampleAd Example

Above: Sky Text example, from

http://skydigital.mediabullet.co.uk/index.php?page=interactive

iTV: The Future of TelevisioniTV: The Future of TelevisionChallengesChallenges

“… “…to prove that this to prove that this medium can make medium can make money” – Jane money” – Jane Marshall, controller of Marshall, controller of iTV interactiveiTV interactive

Managing costsManaging costs

Generating revenuesGenerating revenues

iTV: The Future of TelevisioniTV: The Future of TelevisionSecurity IssuesSecurity Issues

T-commerceT-commerce People demand safe and People demand safe and

secure transactionssecure transactions

The EMV standardThe EMV standard Chip in cards for user Chip in cards for user

authenticationauthentication

Canal Plus vs. NDS lawsuitCanal Plus vs. NDS lawsuit Canal accused NDS of piracyCanal accused NDS of piracy

Challenge faced: ensure Challenge faced: ensure customers that interactive customers that interactive transactions are secure. transactions are secure.

iTV: The Future of TelevisioniTV: The Future of TelevisionGovernment RegulationGovernment Regulation

The Three Generations of TelevisionThe Three Generations of Television Post-War -1970’sPost-War -1970’s Late 1970’s – early millenniumLate 1970’s – early millennium NowNow

Each generation builds on the previous oneEach generation builds on the previous one

Due to the market and consumer behavior variations, it Due to the market and consumer behavior variations, it is difficult to establish rules at this early stageis difficult to establish rules at this early stage

3 potential areas for discrimination that require attention3 potential areas for discrimination that require attention Transmission SystemTransmission System Return PathReturn Path Home TerminalHome Terminal

Marketing of the Future:Marketing of the Future:Scenes from Minority ReportScenes from Minority Report

Are Minority Report Gadgets Are Minority Report Gadgets Realistic?Realistic?

Some yes, Some noSome yes, Some no Reprogrammable Reprogrammable

NewspaperNewspaper ““electronically self-printing electronically self-printing

paper”paper” What does this mean for What does this mean for

marketing in the future?marketing in the future? Costs of targeting potential Costs of targeting potential

customers goes downcustomers goes down Personalization/Customization Personalization/Customization

becomes easier and more becomes easier and more detaileddetailed

Ability to tailor advertisements Ability to tailor advertisements to different consumers rapidlyto different consumers rapidly

GPS TechnologyGPS Technology

GPS TechnologyGPS Technology

GGlobal lobal PPositioning ositioning SSystemystem ““GPS is a radio navigation system GPS is a radio navigation system

that allows land, sea, and airborne that allows land, sea, and airborne users to determine their exact users to determine their exact location, velocity, and time 24 hours location, velocity, and time 24 hours a day, in all weather conditions, a day, in all weather conditions, anywhere in the world.”anywhere in the world.”

““New” TechnologyNew” Technology

GPS technology is not “new” per se.GPS technology is not “new” per se.• GPS technology has been in use for over GPS technology has been in use for over

ten years.ten years.• OJ Simpson’s exact location was traced OJ Simpson’s exact location was traced

by his cell phone as he fledby his cell phone as he fled

police down a Lospolice down a Los

Angeles freeway. Angeles freeway.

How It WorksHow It Works GPS is based on the GPS is based on the

triangulation of satellites. triangulation of satellites. Radio signal’s travel time is Radio signal’s travel time is

then measured by a GPS then measured by a GPS receiver in order to determine receiver in order to determine distance. distance.

In addition to distance, you In addition to distance, you must know exactly where the must know exactly where the satellites are in space. satellites are in space. Therefore, the satellites are Therefore, the satellites are carefully monitored.carefully monitored.

http://www.trimble.com/gps/hhttp://www.trimble.com/gps/how.htmlow.html

GPS Applied To MarketingGPS Applied To Marketing

GPS allows our location to be tracked GPS allows our location to be tracked via mobile phone.via mobile phone.• This is POWERFUL technologyThis is POWERFUL technology• Prediction: There are at least 24 cell Prediction: There are at least 24 cell

phones in this classroom right nowphones in this classroom right now Companies know how prolific cellular Companies know how prolific cellular

phone use has become.phone use has become. Question now Question now How do we use this How do we use this

technology to market?technology to market?

Scenario No. 1Scenario No. 1 You are a frequent Best Buy You are a frequent Best Buy

shopper.shopper. You plan on going to KOP, but You plan on going to KOP, but

today you were not planning today you were not planning on going to Best Buyon going to Best Buy

Best Buy sees that you are Best Buy sees that you are within one mile of one of their within one mile of one of their stores and notices that you stores and notices that you purchase blank CDs often. purchase blank CDs often. Just so happens Best Buy Just so happens Best Buy currently has a sale on blank currently has a sale on blank CDsCDs

A text message for a sale on A text message for a sale on blank CDs @ Best Buy pops blank CDs @ Best Buy pops up on your cell phone.up on your cell phone.

What is your reaction?What is your reaction?

Scenario No. 2Scenario No. 2 You’re shopping at Staples You’re shopping at Staples

for ink cartridges.for ink cartridges. You want to compare You want to compare

prices, so you leave prices, so you leave Staples and decide to Staples and decide to compare prices at Office compare prices at Office DepotDepot

Using GPS, Staples notices Using GPS, Staples notices that you were in one of that you were in one of their stores but did not their stores but did not purchase anything.purchase anything.

A text message pops up on A text message pops up on your cell phone offering your cell phone offering you $5.00 off any purchase you $5.00 off any purchase of $50 or more (only valid of $50 or more (only valid for next 30 minutes)for next 30 minutes)

What is your reaction?What is your reaction?

Scenario No. 3Scenario No. 3 You occasionally shop at You occasionally shop at

Ikea, a couple times a year Ikea, a couple times a year at most.at most.

GPS technology notices GPS technology notices that you are less than a that you are less than a half mile away from an half mile away from an Ikea location.Ikea location.

A general text message A general text message appears on your phone appears on your phone saying, “Great sales at saying, “Great sales at Ikea! Come in and take a Ikea! Come in and take a look.”look.”

What is your reaction?What is your reaction?

““Your Cell Phone is Your Cell Phone is Watching You”Watching You”

Cell towers act as “receivers” of your Cell towers act as “receivers” of your phone’s signal; when you leave one cell phone’s signal; when you leave one cell area, your signal is bumped to the next cell area, your signal is bumped to the next cell towertower Can track your “rough” locationCan track your “rough” location

Last year, the Federal Communications Last year, the Federal Communications Commission ordered cellular companies to Commission ordered cellular companies to equip all new cell phones with Global equip all new cell phones with Global Positioning Satellite tracking devicesPositioning Satellite tracking devices can pinpoint a user's location to within 300 feetcan pinpoint a user's location to within 300 feet Designed to aid locating 911 callersDesigned to aid locating 911 callers

Effects on Cellular Effects on Cellular CompaniesCompanies

Downside: chip costs approximately $20Downside: chip costs approximately $20 Phones usually given away in wireless plansPhones usually given away in wireless plans

Upside: Can gain information on Upside: Can gain information on customers’ daily activitiescustomers’ daily activities E.g. can sell advertising to be displayed on E.g. can sell advertising to be displayed on

screenscreen Verizon Wireless spokesperson told the Verizon Wireless spokesperson told the

technology news website CNET.com that it technology news website CNET.com that it currently has no plans to release information currently has no plans to release information about customers' day-to-day whereabouts to about customers' day-to-day whereabouts to commercial third parties. commercial third parties.

Who is Tracking You?Who is Tracking You?

Some companies are already making Some companies are already making use of the limited cell phone use of the limited cell phone tracking technologytracking technology ““Hot Spots”: Hidden sensors can detect Hot Spots”: Hidden sensors can detect

your phone or Palm Pilot, upon which your phone or Palm Pilot, upon which the system hums into life, sending ads the system hums into life, sending ads for merchandise you might be standing for merchandise you might be standing near and compiling data about your near and compiling data about your shopping habitsshopping habits

ConclusionConclusion Moving from BIG to Moving from BIG to LittleLittle

- 1 to 1 Marketing Push/ Customization- 1 to 1 Marketing Push/ Customization Online MarketingOnline Marketing

- Instant Messenger- Instant Messenger iTViTV

- Transition to Internet- like services- Transition to Internet- like services GPSGPS

- Cell- phone messaging- Cell- phone messaging A look ahead: CitibankA look ahead: Citibank

- How can they take advantage of these - How can they take advantage of these technological technological advancements to foster growth?advancements to foster growth?