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The Customer in Control
Derek Brown
January 20, 2009
AMCHAM Marketing Committee
Derek Brown 2008
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Seeing
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Awareness
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Whatever can be done,will be done. The onlyquestion is will it bedone by you or to you.Just dont think it wont
be done.
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Blog Readership among internet users
South Korea - 77% read each week compared to 58% reading mainstream press
Globally - 73% of internet users reading blogs with 48% reading weekly
Across 29 countries surveyed social media consumption is up
83% watch video clips, up from 62% in the last study in June 59% weekly
78% read blogs, up from 66%
57% of internet users are now members of a social network
RSS consumption is growing rapidly up from 15% to 39%
Podcasts are now mainstream digital content, listened to by 48%
Social media is a global phenomenon Top Markets
Blogging - China 70%, Philippines 66% and Mexico 60%
Social Networking - Philippines 83%, Hungary 76% and Poland 76%
Social Media Consumption - Global
By Universal McCann, Brand Republic 24-Apr-08
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But its bigger than that
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To find something comparable,
you have to go back 500 years
to the invention of the printing
press, the birth of mass media
Rupert Murdoch
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A little history
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300+ digital TV channels on a typical US platform
and of those
only 40 are actually measured by Nielson
The thing that we found out is that actually
40% of the audience is actually watching those
channels that werent even measured,Vincent Dureau, the head of television technology at Google
Google research from millions of set-top boxes:
Tracking the Untracked
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#1 TV Show watched regularly by households1970: All in the Family 60% of households
2007: American Idol 17% of households (Source: OMD)
TV spots to reach 85% of the UK populationLate 1980s 3 spots
Today 180 spots(Source: Campaign 2005)
Nielsen US data (2007)The average U.S. home receives 118.6 channels
And tuned to16, or 13% of available channels At least 10 minutes per week
Trying to Reach Mass Markets
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Consumers exposed to 3,000+ ad messages a day50+ different types of in-store communication (POPAI)
Research indicated that shoppers passes 1.6 items
every second. In a 30 minute shop that would mean theypass 2592 pieces of communication.
The Tidal Wave of Messages
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Your customer isnt paying
attention like the old days
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15/77The Long Tail
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Amazon gets their revenue from titles thatBarnes and Noble doesnt even carry.
Long Tail Example
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Everything else
is the top selling product
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November 2008 American Stats
146 million people watched 12.6 billion
video clips - doubled in 20 months
Conducted nearly 2.8 billion searches on
YouTube, about 200 million more than on
Yahoo
Source NYT & comScore
Ch i R d P tt
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Discovering new blog content 38% - blog links
34% - web search
11% - search engines
39% blog links = trusted recommendation from a person
Blogs are not consumed in isolation 49% of blog readers and 71% of frequent readers read
more than one blog per session
Changing Reader Patterns:
The Power of Links
http://www.retailerdaily.com/entry/blog-influence-on-consumer-purchases-surpasses-social-networks/
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This is an algorithm or
consumer driven process
that is largely
out of your control
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26/77The Changing Customer
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1950 through 1960s Dutiful Consumers
Introduction of Mass Production and Mass Media
Opening of National and Global marketsOne-size-fits-all
Retail Channel
Rise of department store and catalogs Demand outstripped Supply
Newly affluent consumers with a limited range or brands
and products
Customer 1.0
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1970 - 2000 Manufactures expand choice Retail Expands, malls become destinations
Category Killers; Walmart, Warehouse ClubsUltra-niche channels and Specialized Catalogs
Online appears and Retail builds new channels
Consumer Buying patterns change, more fickleCustomer service, returns, 24/7, online/off-line
Consumers expectations change
Customer 2.0
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Massive variety of channels Infinite array of options Consumers Dictate how they purchase and consume Using community-based tools for decisions Uncontrolled conversation between consumers
Customer 3.0
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So where does this leave us?
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The Perfect Stormmeets FMCG
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We then ran those numbers through our Salience product to extract entities which included quotes
about #Motrinmoms, twitter names, places, companies, etc. From there we could see who hadmore than 1% of the tweets, which we plotted as being positive or negative. This was a feel for
influencers. From that information we determined if tweets were more negative or
neutral/positive in regard to #MotrinMoms and saw that if you pulled out all of the neutral tweets
(those with a sentiment of zero) we ended up with 58% negative tweets and 42% positive
tweets. But whereas most campaigns are measured as neutral/positive vs. negative, that
overwhelmingly shows that this session would have been 65% positive/neutral vs 35% negative
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Marketing 101
Old 4P M k ti
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Old 4Ps Marketing
4Ps
Value Creator Customer
Product
Place
Price
Promotion
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Research
Listening
E i M h d
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Emerging Methods
del.icio.us
Y H k
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Your Homework
Try a search your company/product sucks your company/product problem
Are you listeningto what people are saying?
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Marketing
Talking
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TALKING
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TALKING
ROI I t
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ROI Impact
Consumer tends to stick with their early brand $5 per month x 40 years = $2,400 Profit Margin 20% = $480 LTV Site costs worldwide = $3M Breakeven = 6,250 girls become consumers 1% of site traffic conversion
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Sales
Energizing
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And why do this?
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And why do this?
eBags: 76% of purchasers used the online reviewsForester Research ROI:
$200K investment = $400K Profit first year
Petco : customers who browsed by rating were 49%more likely to buy
Less than 25% of ecommerce sites have reviews but96% who have them rate as effective
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Support
Supporting
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Development
Embracing
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The Conversationbefore the sale
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We think the future of advertising is great productsthat have marketing embedded in them.
Jeff HicksCEO
Crispin Porter + BoguskyOctober 2006
Source: DMNews - http://www.dmnews.com/Embed-marketing-in-products-Crispin-Porter--Bogusky-CEO/article/93204/
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Something remarkable is worth talkingabout. Worth noticing. Exceptional. New.Interesting. Its a Purple Cow. Boring stuffis invisible. Its a brown cow. Remarkable marketing is the art ofbuilding things worth noticing right intoyour product or service.
Seth Godin
Author / Speaker / Marketing Expert
Source: Purple Cow/ Seth Godin / Page 3
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Old Marketing
PRODUCT
PACKAGING
DISTRIBUTION
CRM
ADVERTISING
CONSUMER
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When it all comestogether
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