Adapting Marketing for a New Era

Adapting Marketing For A New EraDavid M. CoopersteinVice PresidentForrester Research

Digital Forces Companies to Adapt

“Viewers” evolved

• News became an all-day, on-demand activity.• Access to news came from non-branded media sites like

RSS feeds and portals that aggregated “my” content.• Search engines answered the rest.

Distribution evolved . . .

. . . forcing journalists to adapt

• 24 hour news cycles• Self-amplification• Audience engagement with comments and

conversations in multiple venues• Competition from “Peer Influencers” like

HuffingtonPost.com, Daily Beast, TechCrunch, and Perez Hilton

Marketers are the new journalists

Your survival depends on how well

you adapt

Theme

Agenda• How has the customer evolved with the

onslaught of digital and social media?

• How are marketing leaders adapting their approach to embrace this evolution?

• What can you do today to adapt your marketing efforts?

Source: http://www.masternewmedia.org/images/email-vs-social-media_id13991621_size485.jpg

How has the customer evolved with the onslaught of digital and social media?

Top 10 information sources

*Trust is defined as a 4 or 5 on a scale from 1 [do not trust at all] to 5 [trust a lot].

“How much do you trust* the following information sources?”

32%

37%

39%

39%

41%

42%

43%

49%

50%

74%

TV

Radio

Print magazines

Social networking profile from someone you know

Portals

Blogs written by someone you know

Print newspapers

The Yellow Pages

Customer ratings and reviews

Email from someone you know

Source: North American Technographics® Interactive Marketing Online Survey, Q2 2009 (US)

Base: US online adults

Gen Y and Gen X “watch and surf” simultaneously

45%

50%

Gen X (30-43)

Gen Y (18-29)

“In the typical week, how much of the time were you watching TV and also using a computer?” Answer: More than half the time.

Base: 4,651 US online adults(percentages may not total 100 because of rounding)

Source: North American Technographics® Entertainment And Media Online Survey, Q3 2009 (US)

Simultaneous usage does not mean simultaneous content

34%

44%

53%

“Which of the following describe your experience watching TV and using a PC at the same time?”

Base: 3,583 US online adults who watch TV and use PC at the same time(multiple responses accepted)

Source: North American Technographics® Entertainment And Media Online Survey, Q3 2009 (US)

I browse the internet on topics notrelated to what I am watching on TV

I email, chat, visit social networkingsites on topics not related to what I

am watching on TV

I use my PC to chat, browse, or researchthe show I am watching on TV

3 billion

197 million

>30 million

400 million25 million

New “media” have mass appeal

Source: comScore, February 2010; YouTube ,5/5/2010; FacebookInside company blog ,2/1/2010; allfacebook.com

Social Technographics®

Source: January 15, 2010, “Introducing The New Social Technographics®” Forrester report

Creators - 13%

Critics - 19%

Collectors - 15%

Joiners - 19%

Spectators -33%

Inactives - 52%

Social Technographics®

Source: January 15, 2010, “Introducing The New Social Technographics®” Forrester report

Conversationalists - 33%

Creators - 24%

Critics - 37%

Collectors - 20%

Joiners - 59%

Spectators -70%

Inactives -17%

83%

Social campaigns

Source: Burberry (http://www.burberry.com/)

Social campaigns

Source: Burberry (http://www.burberry.com/)

Social campaigns

Source: Burberry (http://www.burberry.com/)

Mobile Technographics®

SuperConnecteds 12%

Entertainers 20%

Connectors 19%

Communicators 13%

Talkers 35%

Inactives 19%

Source: April 9, 2009, “Mobile Technographics” Forrester report

Mobile activity varies widely

Source: Apple (http://www.apple.com/iphone/apps-for-iphone/)

Mobile activity varies widely

Source: Apple (http://www.apple.com/iphone/apps-for-iphone/)

Mobile activity varies widely

Source: Apple (http://www.apple.com/iphone/apps-for-iphone/)

What’s next?

Hyperlocal insight

Hyperlocal insight

eReader behaviors

eReader behaviors

Social gaming opportunities

How are marketing leaders adapting their approach to embrace this evolution?

Change is good

“The things we fear most in organizations — fluctuations, disturbances, imbalances — are the primary sources of creativity.”

— Margaret J. Wheatley, president emeritus of The Berkana Institute

Definition of adaptive marketing

– A flexible approach in which marketers respond quickly to their environment to align customer and brand goals and maximize return on brand equity.

Adaptive Marketing Looks Like This

Retail

Mobile

CustomerService

CRM

Offline media

eCommerce

Interactive Media

Social initiatives

Engage your consumer’s 4 P’s

• Our P’s– Product– Price– Place– Promotion

• The Consumer P’s– Permission– Proximity– Perception– Participation

Permission Consumers choose with whom and when to engage

Proximity Consumers tap into networks and affiliations that come closest to their needs

Perception Consumers inhabit multiple personalities

Participation Consumers participate to get a sense of connectedness

Three tenets of adaptability

• Think and move differently.• Listen more, react intelligently.• Target people, not statistics.

Think and move differently

The brand platform lives in many places

The brand platform lives in many places

The brand platform lives in many places

The brand platform lives in many places

Listen more and react intelligently

Source: March 12, 2010, “Defining Social Intelligence” Forrester report

Strategy

Marketing

Online Discussion

Social Media Data DRIVES

INSPIRES

CREATES

INFORMS

Hyundai responded to current consumer needs

Hyundai responded to current consumer needs

• Hyundai Think Tank revealed customer needs– Hyundai Assurance program– Gas Lock program

Hyundai responded to current consumer needs

• Hyundai Think Tank revealed customer needs– Hyundai Assurance program– Gas Lock program

Communities help shape messages and product decisions

Source: Mercedes-Benz (https://www.mercedesbenzadvisors.com/login); www.mbusa.com

Communities help shape messages and product decisions

Source: Mercedes-Benz (https://www.mercedesbenzadvisors.com/login); www.mbusa.com

Target people, not data or “audiences”

Brand

Channel

Line of business

DataWomen 25-44

with two kids inhousehold

Target people, not data or “audiences”

Brand

Channel

Line of business

Data

Mother with toddlerand infant

Target people, not data or “audiences”

Source: Procter & Gamble (http://www.pg.com/en_US/index.shtml)

What can you do today to adapt your marketing efforts?

Adapt your approach to new ideas

Groundswell

New audiencetype

Integration

New channel,interaction,

engagement

Experimentation

Adapt the roles of your teamBrand advocate Brand strategist

Source: Flickr (www.flickr.com)

– Understands and engages the local market

– Communicates nuances– Leads local communities– Observes cultural norms and

regulations

– Rolls up feedback from all markets

– Sets the core platform for the brand

– Ensures that tone and meaning are consistent across markets

Adapt your process

• Plan iteratively and frequently.• Partner for creativity, not durability.• Use predictive metrics in addition to descriptive ones.

Adapt your mix of media

Paid Media“The Catalyst”

Owned Media“The Portable Brand”

Earned Media“The Result”

Summary• Consumers evolve.

– You must follow them to the outposts where they spend their time and engage with them on their terms.

• Marketers, adapt! – You must change the pace at which you think, learn,

and converse with your customers.

• Start today. – Adapt the processes you have held onto for too long

in terms of the approach to new ideas, new people, how you plan, and your use of media.

Thank you

David M. Cooperstein

+1 212.857.0758

[email protected]

@minicooper

www.forrester.com