Openness Marketing What is Marketing? To get people to becoming interested in your product or service Tell a good and TRUTHFUL story Appeal to people.

Openness Marketing

What is Marketing? To get people to becoming interested in

your product or service Tell a good and TRUTHFUL story

Appeal to people’s worldview

Deliver your message to a target audience or people

Please come up with 3 methods

In the Past Communicate to larger groups were expensive

(e.g. TV or newspaper advertising)

Only large companies had the money to spend on distributing product information to large groups

This structure led to companies creating, distributing, and controlling most of what was said about their organization and its products

Today - Social Computing Internet can reach over 1.2 billion people

Uses common functionality such as “email a friend”, “promote”, and “rate”

Easy for humorous or shocking content to spread like wildfire - a groundswell of word-of-mouth activity

Seen a funny video lately from a friend?

The Miracle of Digital Editing

Before

After

Before

After

Before

After

Before

After

Before

After

Before

After

Before

After

Before

After

It’s easy to laugh!

Have a great day! Send this to your friends

Send this to your friends

We are all entitle

d to

We are all entitle

d to

a smilea smile

Your Options

An organization can choose to

Ignore

Control

Mimic

Embrace

Ignore Denial about the impact social computing is

easy An over-hyped fad that is best to ignore Especially true for industry has yet to feel the effects

of this new openness

Younger demographics are already immersed in social openness

Ignorance is dangerous-Openness can move very fast once it starts

Control The Legal departments of most organizations perceive

openness as violation of copyrights and trademarks The entertainment industry is deeply engaged in Digital

Right Management (DRM) Video/audio rights - pay per play

Alienate new product suggestion websites in fear of legal claim from customers

Some control on trademark and copy right is necessary but try not over do it

Mimic “If you can’t beat them, join them.” Interactive advertisin

g agencies are all aggressively promoting this option to their clients

Consumer behavior online can be segmented into groups Companies advertise their brands online mimic social networks

by adding similar functionality to company sites Place branded offers in these new online communities (mySpac

e, Facebook)

Mimic is Not the Real Thing Not simply a new technology to display advertising

It empowers customers to share their thoughts about products with greater credibility and with as much reach as marketing departments

Customers expect an honest direct conversation with companies — not an advertising message

The new openness makes advertising approaches less effective

Embrace Customers are now in control of a company’s perception

in the market

Customers will share their positive experiences with many others online

Customers will share their negative experiences, which will negatively impact the company

Current marketing approaches becomes ineffective

It scares Legal and confuses Sales

Openness Marketing Openness marketing is truly a disruptive ch

ange that many organizations find hard to embrace How much is there to gain? What is the best way to get started?

Focus on the Product or Service Openness makes it harder for an inferior product successful

Negative product information will spread faster then you can ever imagine

Engaging in the new openness is ineffective and dangerous if it is done only at the time of product launch

Began at product inception and development

Engage customers in a process to help improve your product

Create ambassadors to help promote the next releases

Adopt Open Innovation Most companies are still rely on internal individuals for prod

uct ideas and enhancements “voice of the customer” is done under assumption that co

mpany is in control Open innovation asserts that a significant portion of new ide

as and enhancements come from outside organizations Closed source (proprietary software) vs. open source Linux, Apache, MySQL, Eclipse, etc.

Overcome Change Inertia Disruptive change is hard to getting started

Leadership start in product development

Everyone in the executive core must be prepared for the change

Anyone who has direct interaction with customers regarding the product can begin the process of openness

Active customers are ambassadors for new product launches and could help spread positive word-of-mouth

Engage with Consumer Customers shared their thoughts with a

small circle of family, friends, and colleagues

“Word of mouth” communication is the most trusted source of information about your products and services

The American revolution was spread using the words of mouth

Collaborating on Innovation with Your Customers Take advantages of the new social

phenomenon

Your customer can be a powerful force for collaborative innovation

Only 25% of customers are doing it

Groundswell A social trend in which people use

technologies to get the things they need from each other, rather than from traditional institutions like corporations

Consumer are participating in forums and discuss the changes and improvement needed

Show 3 ways

This is Your Company…

…These are your Customers in the Groundswell

…These are your Customers in the Groundswell

Four-step Approach to the Groundswell

P PeopleAssess your customer’s social activities

O ObjectivesDecide what you want to accomplish

S StrategyPlan for how relationships with customer will change

T TechnologyDecide which social technologies to use

Key Roles and their Groundswell Objectives

Roles

Research

Marketing

Sales

Support

Innovation

Groundswell Objectives

Listening

Talking

Energizing

Supporting

Embracing

…These are Your Customers in the Groundswell

Case Studies in Collaborative Innovation

Captive Community Yield Insights on Demand

A Conversation with Customers

Del Monte: What does your dog eat for breakfast

George: she would definitely want bacon and eggs and she would want ketchup on her eggs. She loves ketchup!!!

Del Monte: Would you buy more treats if they had vitamins and minerals as ingredients?”

George: I would buy healthier treats over ones that didn’t have vitamins and minerals. . . . I try to look for amino acids and omega 3 and fish oils.

More Insights from a Private Community

salesforce.com

Credit Mutual What would you

improve if you were the banker?

I will explain the complicated fee more clearly

Done through contest

Crucial to let each other to see their ideas and vote for it

Loblaw Supermarket Rate all products online

and in stores

They really listen

Award winning barbecue sauce

But cap don’t fit, so modified and get really successful

Openness Attitude Has to Have Humility

Your customer know more then you do

Believe the customers are smarter then the people working

The New Collaborative Culture Share how product is evolving

User is helping you to shape your product

User get connected from different region

Engage education and energize customers

Continuous learning

Real life testimonials

Corporate Espionage Verify offline to ensure the right people

are in the community

Exercise your own judgment (false input to confuse you)

Reserve the right to kick off “mobs”

Look for “I never thought of that” or “its interesting”

Home Work Check out http://www.casgle.com

Use the openness ideas you learned from this lecture

Give 3 opinions on this company that will improve its success

Submit your homework to teachers aid no later then Thursday next week