Marketing redefined as social.

The Psychology of Social Marketing[Why Money Cant Buy You Love]

#SocialKemistri@socialkemistri

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Opening Remarks

Tom Penney, Strategist - @SocialKemistri

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Is marketing dead?

Peoples behaviour is driven by personality & emotionValue is not sold it is co-createdCustomers co-create value in their experiencesValue is personal and contextualBut a new kind of marketing is being born

Recent HBR article claiming that Marketing is dead - not dead yet but being redefined.Key drivers of change - 1. People don't behave the way economists (markets/marketing theory) say they should.People are irrational, behaviour driven by unconscious, automatic thinking - emotions and personality (personal preferences)And 2. Value is not exchanged at the point of sale - products and services are only value propositions, the customer co-creates value in the customer experience. These ideas are not new.

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What is 21st century marketing?

New value equation that includes emotions and personalityValue in use - dynamic interaction of customers with products/servicesShift from transactions to relationshipsProducts to value propositionsInvolving and empowering customers

I f marketing is being redefined what is it becoming? New value equation recognises emotions and personality as components.Value shifts to value in use - that means satisfaction is not an event its a number of interactions/experiences.So marketing has a distinctly more human face - moving from products to value propositionsAnd form transactions to relationships around building context/narratives/interactions to maximise perceived value in use.But essentially its now about empowering customer to create great experiences and share them with people like them.

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Marketing is social

Social is more than media and more than FB and/or TwitterValue crystallised in the experienceGetting close up and personal with your customerBuilding context, interactions, narratives, archetypesMaximising enjoyment and value over the period of ownershipEssentially, social is being human

That means that marketing is social! And being social is being human.But social is more than media or the network - its a philosophy, a strategic outlook and a way of doing business.A new way of relating to customers.Value is crystallised in the customer experience not only in the purchase but every time the customer interacts with the product.Whatever the context - context is everything. Vale/satisfaction determined by several factors including utility/jobs to be doneBut also by personal preferences, emotions, the stuff that dives our decision making, evaluation and enjoyment of each expereince.

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The science of social

The science of social is psychologyDe-coding psychological contract customers, brands, products and servicesContextual personality assessmentAdding the psycho graph to the social and interest graphsDevelop segmented value propositions by personality/emotion/personaeUnderstanding the drivers of influence and trust

What is the science of social - in one word PsychologyHow do we get close up and personal with customers and at scale?Explore and gain understanding of the human dimensions of value in the customer experience.We call that contextual personality assessment. Allow us to create/build personae or customer types.Get a deeper connection with what people really need/want and how influence works for people likemeUltimately it about getting customer more involved in the organisation, greater sense of ownership/control/equityDeeper relationships = more satisfaction, loyalty and advocacy.

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Profound implications for business

Strategy and underlying business modelsWhat we need to know about the customerThe kind of relationships we have with customersThe type and frequency of feedback and/or data captureIdeas about what people really want How we define our business/purposeRoles of media and technologyHow to involve customers in more aspects of the enterprise

Self explanatory though want to highlight

5 and 6 as fundamentals for C level suite followed closely by 2,3 and 1(business model - ideas about fair profits/equity)

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What is Social Kemistri?

We apply the science of social for business, government and other orgsCapture and make sense of data about customer behaviour and sentimentSegment customers by personality to optimise valueDevelop value propositions for increased customer involvement/communityMobile real-time customer feedback, satisfaction metricsBuild customer personae, interactions and narratives

Read the slide -

Problem is too many organisations rely too much on the wrong data - see/treat customers as marketing targets NOT people.An do not care about or take responsibility for delivering the value proposition for the customer. The customer is left on their own to get on with it.Today customers do get on with it but now they include their friends and other people in the good or not so good posy purchase experience.So the value that the marketers thought they were creating and selling often doesnt materialise as they imagined it. Thats a fail.So we capture real-time feedback about customer experiences using mobile and other digital tech.We use customer psychology to understand peoples deeper needs and satisfy them.We apply this in the social networks and build customer involvement communities for brands that care about people and helping them enjoy their everyday lives.

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Intro Psychology of Social Needs

Gareth English, Psychologist - @SocialKemistri

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Faster than the speed of thought

Our emotions process sensory information five times as fast as our conscious, cognitive brain.Marcus, 2002

We form opinions quickly. Subconscious decisions are made very fast, with conscious, more rational decisions coming later. My mind tells me I need the new phone, my rational self thinks up reasons that this is true. We can tap into this unconscious layer by looking at drives, needs and emotions. This also emphasises the importance of getting real-time feedback.

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Value triad

Psychological Contract

Emotions

Effort

Utility

Easy to do business with

Jobs to be done

This forms a psychological contract between us and the brand.We can decode it, using psychology.

If our emotions are so key, then

We can satisfy this contract better by knowing people better. So what do all people need?

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The Human Universals

Protect

Acquire

Bond

Learn

Human universals drives.

Protect: to defend what we have right now.Acquire to gain more than we have, more than other people we compare ourselves to.Bond: to link to other people in families, communities, groups, clubs and teams. Learn: to know more than we do. To understand and predict the world around us.

We dont behave rationally. We behave emotionally. If you know how different products appeal to different needs, if you can unlock the psychology of what different people need, then you can optimise messaging content and co-creating value.

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We all need people, even Hugh

But how do we need people?

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

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Why do you need people?

Love

Significance

Competence

What are our social needs? Driven by the fundamental needs we have from other people.

To be significant: to register as important to other people. To be included by them in what theyre doing. At extreme levels seeking out fame or notoriety or to be isolated

To be competent: to be good at what we do. To know what needs to be done and how to do itTo provide other people with clear directionAt extreme levels dominating or rebelling

To love and be loved. To be known for who we are and to be loved.To share what is important to us and find out what is important to othersAt extreme levels oversharing or being highly secretive.

We all need these three things from other people. To differing levels.

So how does this become tangible for doing social marketing?Higher social needs have more time on social media and more facebook friends.

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How can you use this?

Party Planner

Sharer

Poker Face

Social Types

The Party Planner: they want to be significant and achieve this my creating social situations and groups and inviting large numbers of other people to join them.

The Sharer: They want to be loved. To ensure that you love the real them, they will share readily. All about themselves. If youve met this person, you know all about them!

The Poker Face: They dont like to share. They may feel that if you really knew them, that you would find it hard to love them. This is the person you can sit next to at dinner and find that by the end of the meal youve talked for 2 hours, but dont know anything about them beyond their name.

These people will have different psychological contracts with brands.Different behaviour, because they need different things from other people. So how do they use social media?

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Meeting your needs online

4-5 hours

Party Planner