The Key Changes in Marketing Communikation SIBE Lecture 150710

1 von EndSeitenzahl

Principles of Marketing/ E-marketing &

E-business/ Marketing and Sales

ManagementDay 1: Principles of Marketing /

Marketing and Sales Management SIBE-Management-Master

Dr. Ute Hillmer

© 2015 School of International Business and Entrepreneurship (SIBE) der Steinbeis-Hochschule Berlin I www.steinbeis-sibe.de I Dr. Ute Hillmer

http://www.steinbeis-sibe.de/

July 2015 Dr. Ute Hillmer

Key Elements of Marketing

Communication in an

Online/Offline World


WHO is Dr. Ute

Hillmer? an expert in positioning and promoting technology

products, with a carving for innovative products that

are not self-explaining.

With such products, human behavior is often outside the

boundaries of rationality -despite its economic context.

Buying behavior is here typically a result of social, cognitive

and emotional factors, along with the economic ones.


What did Ute do?

• 27 years of international marketing (HP, CoCreate, MFG Innovation

Agency State of BW, Better Reality Marketing)

• Dissertation in business administration, behavioral economics in

technology marketing: Technology Acceptance in Mechatronics

• Worldwide company and product communication;

mainly 3 continents (America, Europe, Asia)

• Product-, program-, channel-, partner marketing, marketing

communication, branding, positioning

• Responsible for operative, strategic + corporate marketing, branding,

sales training

• Experienced in large corporations, SMEs and freelance work as well as

political institutions.

• Responsible for the first international website of Hewlett Packard in 1993


What’s Ute’s

STORY?I am in business to change

the lives of my technology

clients by giving purpose to

their work!


and turn their customers into raving fans!


Agenda1. Background and Reframe

2. Marketing Today: the new Buying Decision Process

3. How to Segment a Market

4. Buyer/User-Typologies

5. Niche Markets

6. Positioning

7. Content Marketing

8. Why is Product Marketing Changing?

9. Customer Touch Points


Marketing Today:

the New Buying

Decision Process


The Aim of Marketing

Marketing aims to influence the buyer and

buying center at the moment and place

when they are most open to influences

towards a brand choice and buying

decision.


Funnel-Metaphor for a Buying Decision

active evaluation

many brands

Grafik close to Edelman 2010, p.65

buying decision

Initial

considerationTrigger

lesser and lesser brands


Digitally supported Buying Decision

active

Evaluation

Post-Sales

Experience

Enlarged

Evaluation

Ambassador

Loyalty Loop

Active

Evaluation

Model close to Edelman 2010, p.65

Moment of Purchase

Initial

Consideration

Trigger


The Core Changes

1. Consumers and buyers connect with

brands in fundamentally new ways – often

beyond manufacturers or dealers' control

2. They evaluate a shifting array of options

during the evaluation process and remain

engaged with the brand after purchase


2014 B2B Buyer Behavior Survey

• Web search is the top source of information

• B2B buyers strategically browse social media

• The number of sources used to research and

evaluate purchase has increased

• There is an increased awareness of purchase

options

• The evaluation process is longer and more

satisfying

DemandGen Report Survey 2014


Key Information Sources

The 2014 B2B Buyer Behaviour Survey


What Role does Social Media Play?



The core ingredients

to influence a

consumer or buyer

are ?


How to Segment a

Market?


What is Market Segmentation?

Market segmentation divides a broad target market into subsets of consumers, businesses, or countries who have, or are perceived to have, common needs, interests, and priorities.

Segmentation is used to identify and further define the target customers.

How have Market Segments changed over the last 50 years?


Common Ways to Segment a MarketGeographic Segmentationaccording to geographic criteria—nations, states, regions, countries, cities, neighborhoods, or postal codes.

Demographic Segmentationbased on variables such as age, gender, occupation and education level or according to perceived benefits which a product/service may

provide.

Speciality: ‘firmographic’ or ‘feature based’ segmentation, commonly used in B2B: segmentation based on features such as company size

(revenue or number of employees), industry sector, location (country and/or region).

Behavioral Segmentationdivides consumers into groups according to their knowledge of, attitude towards, usage rate, response, loyalty status, and readiness stage to a

product. Behavioral segmentation divides buyers into segments based on their knowledge, attitudes, uses, or responses concerning a product.

A good starting point for market segmentation!

Psychographic Segmentation (Lifestyle)measured by studying activities, interests, and opinions (AIOs) of customers. It considers how people spend their time and which external

influences they are most responsive to /influenced by. Psychographic identifies the personal activities and targeted lifestyle the target subject

endures, or the image they are attempting to project. Mass Media has a predominant influence and effect on Psychographic segmentation.

Segmentation can take place according to benefits sought by the consumer/customer.

Cultural Segmentationused to classify markets according to cultural origin.


Why to Segment a Market?


How to Segment Your Target Market?

Sinusmilieu



Nielsengebiete nach ACNielsen



Gender andAge




Select your Segmentation CriteriaMeasurability

• “otherwise the scheme will not be operational”

• next to impossible in some markets, hard in most markets => most companies to

use more qualitative and intuitive methods

Substantiality

• “the variable should be relevant to a substantial group of customers”

• Challenge: find the right size / balance: large group segment: risk of diluting

effectiveness

• Too small: you lose the benefits of economies of scale.

• Sometime one large customer

Operational relevance

• Segmentation should enable to offer the suitable product/service to the chosen

segment, e.g. faster delivery service, special 24-hour technical support, etc.

Quelle: Webster, 2003


Why do certain innovations diffuse much

faster than others?

Example:

Take the Market of Disruptive Innovations


New Innovations usually …

change the way how we do things...

and we go along happily and fast

or not so fast ...


Successful (B2B) marketing is…

• about segmenting customer experiences to fit the

product life cycle and the typical customer profile

• about developing and maintaining trust – matching

the different customer segments need

• about initiating a customer centric dialog that takes

the different customer profiles into consideration

Behavioral economics!


Behavioural Economics

Behavioral economics … study the effects of social, cognitive and emotional factors on the economic decisions of individuals and institutions and the consequences for market prices, returns and the resource allocation. The fields are primarily concerned with the bounds of rationality of economic agents. Behavioral models typically integrate insights from psychology with neo-classical economic theory. In so doing they cover a range of concepts, methods, and fields.[1]

Behavioral analysts are not only concerned with the effects of market decisions but also with public choice, which describes another source of economic decisions with related biases towards promoting self-interest.

[1] The New Palgrave Dictionary of Economics

http://en.wikipedia.org/wiki/The_New_Palgrave_Dictionary_of_Economics


User-

Typologies


“Innovativeness”= degree to which an individual or a unit is relatively

earlier in adopting new technologies than other

members of a system

Source: Rogers Diffusion of Innovation 1995


Time

Mar

ket s

ize

Rogers Diffusion of Innovation 1995

an idealized technology product lifecycle

Continuous Innovation

Disruptive Innovation

Laggards

16%

Late

Majority

34%

Early

Adopters

13,5%

Early

Majority

34%

Innovators

2,5%

July 2015 Dr. Ute HillmerTime

Mar

kets

ize

Time

Mar

kets

ize

Time

Mar

kets

ize

Rogers Diffusion of Innovation 1995

Moore; Crossing the Chasm 1999.

diffusion of innovation varies…


Time

Mar

ket s

ize

technology life cycle and its buyer

categories

Laggards

16%

Late

Majority

34%

Early

Adopters

13,5%

Early

Majority

34%

Innovators

2,5%

Chart based on Rogers 1995, p. 262 and Moore 1999, p. 12


LaggardsLate

Majority

Early

Adopters

Early

Majority

Innovators

mainstream behaviour

Increasingly conforming behaviour

Hillmer, Technology Acceptance in Mechatronics, 2009.

Zeit

Mar

ktgr

öße


LaggardsLate

Majority

Early

Adopters

Early

Majority

Innovators

individualistic behaviour

Increasingly individualistic

behaviour

Hillmer, Technology Acceptance in Mechatronics, 2009.

Zeit

Mar

ktgr

öße


Inventors: Techies Technology is their life

Technology - Crazy– Spend hours to get the product to work

– Do everything to help the product

– Technology should be for free

Forgiving souls– Don’t mind lousy documentation and weird procedures to achieve

functionality

– Want technology first – no need for a sales channel

• Their role: they move technology forward but do not generate much diffusion + generate no income

Moore; Crossing the Chasm 1999.


Visionaries Technology enthusiastic businessmen, driven by a dream

• Businessman first

- driven to be the first

- new technologies are used to serve their own strategic benefit

- don’t want incremental but fundamental improvements

- make business world aware of new technologies

- not very price-sensitive, have project budget

- live in the future

- communicate with techies and other visionaries


Visionaries (2)

• Take a risk

- love publicity

- risky projects

- start projects from ground up, don‘t want standards, want to

develop them

- buy by intuition (but may claim otherwise)

- highly motivated, driven by a dream


Visionaries (3)

• Excellent communicators

- charismatic; they fight for their project

- like to serve as a reference

- network with techies and pragmatists

- too many references de-motivate visionaries

- look for new ideas in communication with intelligent people

• Their role: they fund the product development + give the innovation a “real” application


PragmatistsLook for measurable, incremental improvement

Driven by business results

- improved productivity

• Avoid risk

- risk is a negative term

- want to work with market leader/ established firms

- look for product quality, support, consulting, good interfaces, reliability

- want standards, “save buys”

- need references

- live in the present


Pragmatists (2)

Loyal customers

• are interested in company they buy from

• revenue and profit must grow steadily “stability”

• communicate within company and industry

• the first mass market

Their role: They hold the key to the mass market

BUT: you need to be established in order for them to buy from you but you don‘t get established until they buy from you ! ?


Pragmatists (3)

Consequences out of this profile

• One really needs to be familiar with the processes and

issues that worry the pragmatists

Offer a clear relative advantage to them


Conservatives“I don’t have to like the product, even if I use it”

- They do what pragmatics do, but later

- Invest in technology to keep up with competition

- Have low technical competence


Conservatives (2)

- predictable

- want everything faster, cheaper, improved

- are price sensitive

- like bundles, pre-installed solutions

- “if it isn’t broken, don’t fix it”

- very interested in service and support

Their role: huge mass market


Innovation Marketing –

What role does

engagement and

dialog play? “


LaggardsLate

Majority

Early

Adopters

Early

Majority

Innovators

early adopters = visionaries

Time

Mar

ktsi

ze


LaggardsLate

Majority

Early

Adopters

Early

Majority

Innovators

early majority = pragmatists

Time

Mar

ktsi

ze


The

Niche


Time

Mar

ket s

ize

technology life cycle and its buyer

categories

Laggards

16%

Late

Majority

34%

Early

Adopters

13,5%

Early

Majority

34%

Innovators

2,5%

Chart based on Rogers 1995, p. 262 and Moore 1999, p. 12


Time

Mar

ket s

ize

technology life cycle and “the gap” or:

why you should focus

Laggards

16%

Late

Majority

34%

Early

Adopters

13,5%

Early

Majority

34%

Innovators

2,5%

Chart based on Moor 1999


Why to choose a niche target market

Become a niche expert

• learn to understand their urgent needs and biggest desires

• know where to find them

• align products and services to the needs in the niche

• learn to speak their language

• understand their processes

• discover their networks and their media mix

• built an effective network and communicate effectively

• They will know you are committed to them

Become #1 in the niche market


Ways out of the niche

Horizontal Expansion:

• Sell more services to the same market

Vertical Expansion:

• Sell your services to more markets


Positio-

ningA Workshop Lecture


What is Positioning?

Positioning defines where your product or service stands in relation to others

offering similar products and services in the marketplace as well as the mind of

the consumer.

Positioning always starts with a “product” (merchandise, a service, a company, an

institution, or even a person….)

but positioning is not what you do to that product. Positioning is what you do to

the mind of the prospect or customer.

Positioning is the act of designing the company’s

offering and image to occupy distinctive place in

the mind of the target market.

Kottler Keller


What is Positioning?

Image by talk2frank from Stock.Xchng


What is Positioning good for?

Position, differenciate and communicateThink from your customers perspective, before you talk to them

#1 RelevanceIs the promissed added value of relevance to your target segment? Doesyour customer care?

#2 DifferenciationAre you unique? Do you offer something „more“ that what your customersoffer?

#3 everybody and everywhere, the message is the sameOne core message from every employee + partner and through everychannel


Target Market

.

.

.

.

..

.

.


Your Customer‘s Job

The tasks your target customer has (don‘t forget the buying center)

What urgent needs do they have?

What are their

Compelling desires?

…

……

…


What are the• largest wins you can gain for our customer

• the biggest benefit, customers can obtain?

• Biggest pains we can offer relief for?

…


The biggest result

Determine the biggest result your customers get

… it must be a big one!

What is your big promise?

People buy results and the

benefits they get from

these results


When and how do you keep our promisses?

When were your

customers really

happy?

Why?

What was the right

fit?

…

…


What product(s) do we offer?

…


Our promise (1)

We help…

…

…


Our promise (2)

What we help our customers do is:

…

…

…


Our promise (3)

Why we do what we do to serve our customers:

…

Our Vision, what we hope to achieve:

…


Our Promise (4)

How we differenciate from alternatives in the

market

…


Positionierung: Value Proposition

• Operative excellence

• Produkt exzellence

• Customer insight

You have a choice:

economicbenefits

emotional benefits

functionalbenefits


Value Proposition

We help …

(do the following things) …

in order to …


Content-

Marketing


Content Marketing Def.Content marketing/custom media

(sometimes called custom publishing,

custom content, or branded content) is

the creation and distribution of educational and/or compelling content in multiple formats to attract and/or retain customers.”

Source: Content Marketing Institute and MarketingProfs


Why Content Marketing

The thinking behind it:

is the belief that if businesses deliver consistent, helpful information to

buyers at the right time, then prospects will ultimately reward the company

with their purchase and loyalty.

Content marketing equips buyers with the knowledge to make better-informed decisions.It is the reason why visitors go to your site.


Content Marketing = Thought Leadership

Content Marketing aims to create

THOUGHT LEADERSHIP

therefor

CREDIBILITY is the magic ingredient


Why is Content Marketing

important?

Average person is exposed to 5.000 ads / offers per day

Buyers have tuned out marketing


Think of an Art Gallery

Where is the Art?


People come to see art, not empty frames or empty walls

Content is the reasonpeople go to your site


Why Content Marketing ?1. Position your company as a expert

2. Encourage your audience to consult you

3. Generate new leads

4. Progress existing leads

5. Built your database

6. Raise awareness

7. Contribute to communities

8. Give your sales team a reason to engage

9. Boost your search engine performance


Importance of Content



Starting Content MarketingShift thinking from marketer to publisher

1. Define a critical group of buyers

2. Determine what info these prospects really need

3. Determine how prospects want to receive

information

4. Deliver info for maximum impact on goals

5. Measure and recalibrate

or in short: Stop shouting and make yourself useful!


Stop shouting and make yourself useful!

means

1. Consider the interest and the

worldview of your target customer

group (=> segmentation!)

2. Tell a compelling story

for them


Principles of Content Marketing

1. It‘s not about youPut your agenda aside and put your prospects

agenda at the heart of your marketing

2. Pick a single, high –priority issuePick a topic that matters to your audience and

stick to it



3. Find some blue waterFind an issue, that has not been beaten to death, if this is not possible, put it in context or look for a new perspective

4. Aim for a neutral tone of voiceDon’t sell – there will be opportunities for selling, once trust has been built. You earn respect by not selling.



5. Support your story with dataA strong story supported by credible data is

irresistible.

6. Use your customersReal users have more credibility than you do.

7. Consider 3rd Party credibilityBringing in a recognized analyst can add credibility


Media for Content Marketing


Exkurse:

Subjective

Realities


Subjective Construction of Reality

Each individual sees the world through subjective lenses.

Consider typical customer segments and try to capture them socially and emotionally with

Seth Godin, All Marketeers tell stories, 2009

Mischel and Morf, Handbook of self and identity, 2003.

Kelly, The psychology of personal constructs, 1991

YOUR STORY!


Ein Fahrrad!


Ein Fahrrad!


Ein Fahrrad!


Ein Fahrrad!

Product


Ein Fahrrad! ??

Bla bla ... Blub

blub...

Blobblob...

Blubber blubber...


Content Marketing B2B vs. B2C

- Informative or emotional?

- facts or story?

picture: Sunlab.de


Address prospect emotionally, the degree of emotion depends on target market

Offer facts and statistics that can be used further in combination with emotions.

Wrap content is exciting, emotion-heavy storytelling. Awaken covetousness.

B2B prospects love a good story, but there should be Facts and Information to support the storytelling.

Target market is often multi-Layered e.g. supplement for sports-people: Pro-bodybuilder, beginner, endurance-Sportsmen, fat people, thin people, …

More homogeneous, linear target marketswith functionally diverse buying center

B2C B2B

Content Marketing B2C vs. B2B

picture: Sunlab.de


Social Media => Traffic => Conversions Social Media => Awareness =/= ConversionsSocial Media => Awareness => Trust

Company size not relevant. Fullfillment ofcustomer need dominates the decission

Company must be seen as trust worthy and competent => trust and competence must be built via content.

Emotional value addeddominates

Mixture of emotional andfunktional value dominates

Content Marketing B2C vs. B2B

B2C B2B

picture: Sunlab.de


Content Marketing Challenges

Source: B2B Content Marketing report 2012; Content Marketing Institute and MarketingProfs


Best Practice „Talking“


Produktplan,

Business Model+

Marketing


Product-

Performance

Product marketing und its role

Technology ProductsUsers want better services, higher

performance

Chart inspired by Norman 1999, S. 32

Product performance needs

of an average user

Unfulfilled

needs

Over-functionality; most users don‘t use the

extended features

Technology is „good

enough“ and thus

irrelevant. The user-

experience is key.

time

CommodityUsers want ease-of-use, reliability,

low cost

BetaPure

FunktionUser Experience

VersionCare


Traditional Product Development and the role of

Product Marketing


Why is Product

Marketing

changing?


Why must Product Marketing change?

9 out of 10 product innovations are failingCorporate giant or small star-up, low-tech or high tech, online or offline, 9 out of 10 new ideas fail because… our tools are optimized for execution

Illustration copyright of Steve Blank, „The Startup Owners Manual“

With innovations,

you need to be in

search mode!


A Tale of Fail


Webvan: a tail of fail

• A startup that promised delivery of groceries within 30 minutes of

ordering, from state-of-the-art order fulfillment centers manned by

advanced robots.

• Launched 1999;

• $10M, within 2 years $400M, raised;

• 8.5 billion market capitalization on day of IPO

• They had a compelling story, a great b-plan, a long list of features for

SW, warehouse handling,…

• Webvan executed as its board and investors asked

• from launch to fail in 2 years perfectly on plan


One of the largest failures on record

• Founded in 1991 by Motorola and a global partnership of 18

companies

• Planned to built a mobile phone system that would work anywhere on

earth

• Purchased 15 rockets from Russia, U.S. and China, 72 private

satellites were launched into orbit

• 7 Years after launch, the infrastructure was in place; 9 Month after

first call was made, the company was bankrupt.


“New Product Introduction Diagram”

The model is a good fit for an exiting company where customers are known, the product features can be spect‘ed upfront, the market is well defined and competition is understood!



“Customer Development” ans the changing

Role of Product Marketing

Chart von Eric Ries: Lean Start up

theleanstartup.com

Idee

Bauen

Nutzer-

Daten

Lernen

Produkt /

CodeMessen

Hypothesen zu Fakten machen Ein skalierbares und

wiederholbares Verkaufsmodell finden


Customer Problem:

known

Product Features:

known


New:

“Customer Development” and

the changing role of Marketing


Customer Discovery


A New Area in Products and ChannelsPhysical products through physical

channelsVirtual products through physical channels



Innovations-Management: Open by Design


Customer-

Touchpoints


Research the Key Customer Touch Points

Ask the customer how they

– Get information

– Come to a decision

– Order and purchase

– Configure

– Stay in touch

– Use support

– …

Ask + watch your value chain

How do they

– Sell

– Take orders

– Make offers

– Configure products or services

– Communicate and engage

– Do customer support

– Stay in touch

– Use support


Awareness +

Preference

Decision

Preparation /

Pre-Sales

Order + PurchaseProduction +

Logistics

After Sales +

Support

Touch-Point Analysis

• Ads

•Google AdWords

•Google Search

• Banner

•Website

• E-Shop

• Trade Shows

• Sales

• Press Information

• Banner Ads

• YouTube/FB/Xing

• xxx recommends…

•…

• Sales

• Sales back office

• Trade shows

• Customer visit

• Offer

• Price List

• E-Shop

• Configuration-Support

• Catalog

• Brochure

• Image video

• Vendor Website

• …

• eMail

• Fax

• Telephone

• E-Shop

• Vendor

•…

• Product

• Packaging

• User-Manual

• CD

• Short Brochure

• Invoice

•…

• Installation-Support

• Runtime-Support

• Customer visit

• In-house tradeshow

• Newsletter

• Product-Flyer

• Brochure

• Reference Customer

Story

• Customer-Event

• Roadshow


Informationsquellen

#1 Internet

#2 Messen

#3 Fachzeitschriften

#4 Blog

Erstkontakt: Internetrecherche !!

Informationsquellen/Kommunikation der Kunden

Aktive Kontaktpunkte

#1 schreiben Email / Telefon

#2 gehen Online

#3 „ich weiß was wir brauchen“

#4 „wir haben einen Rahmenvertrag“


Internet

Google Search

Hersteller Webseite

Webseite

Blogs (aa)

Informationsquellen der Kunden

Messen

aa

bb

cc

Fachzeitschriften

ITK, PC, SW, Automationstechnik,

Maschinenbau, Elektronik, Branchen FZ

„Ich weiß nicht wie die heißen“:

Markt&Technik, electronic, etz, ct,

computer business, Computer Reseller

News, Computer Woche, Linux

Magazin, Industrie und Technik,

Electronic Automation, Antriebstechnik

xx wird nicht als Informationsquelle wahrgenommen


Suggested Reading

• Value Proposition Design by A. Osterwalder, Y.Pigneur

• Groundswell by Charlene Li, Josh Bernoff

• Positioning by Trout and Ries

• In Pursuit of Wow! + The Tom Peters Seminar by Tom Peters

• What would Google do by Jeff Jarvis

• All Marketeers tell Stories by Seth Godin

• 1 to 1 Marketing Future by Don Peppers

• CRM at the Speed of light by Paul Greenberg

• The Long Tail by Chris Anderson

• The Wisdom of Crowds by James Surowiecki

• Crossing the Chasm by Geoffery Moore

• Selling the Dream by Guy Kawasaki



Dankeschön!

206 von EndSeitenzahl

HERZLICHEN DANK FÜR

IHRE AUFMERKSAMKEIT!

GIBT ES FRAGEN?

© 2015 School of International Business and Entrepreneurship (SIBE) der Steinbeis-Hochschule Berlin I www.steinbeis-sibe.de I Dr. Ute Hillmer

http://www.steinbeis-sibe.de/

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