marketing 3.0 resistance is futile... guy iannuzzi president, mentus december 3, 2011 guy@mentus.com

Marketing 3.0

Resistance is futile...

Guy IannuzziPresident, MentusDecember 3, 2011guy@mentus.com

Marketing…

• The past, present, and future of marketing – What’s changed– What’s not– What’s ahead

• Accelerated evolution of marketing tools• What hasn’t worked

Marketing Eras

• Marketing 1.0– Product centric Era

• Marketing 2.0– Customer-centric Era

• Marketing 3.0– Relationship-centric Era

Ancient History

YesterdayToday/Tomorrow

Marketing 1.0

• Product centric Era– Product Focus– Selling, the “art of persuasion”, cheating– Top down, one way, mass communication– The relationship is a commodity– The marketer owns the relationship

“The Industrial

Age”

Marketing Paradigm...

• One way – marketer to consumer– Companies serve shareholder

• Maximize profits

– Customers are rational• Informed by sellers

• Marketers have the power• Marketers build the brand

“A Seller’s Market”

Henry Ford

Marketing 2.0

• Customer-centric Era– Information Technology driving marketing– Customer Focus– Product value defined by customer– Developing relationships with customer

“The Information

Age”

Marketing Paradigm

Customer-centric Marketing • Customer not a participant, but the “target”...• Sophisticated, more effective digital tools

– Enable marketer to know everything about the customer

– Enable effective top down, one way communications

• Positioning enables manipulation of perception• CRM becomes customer relations manipulation

“Today... we have moved

beyond the information age to the age of participation”

“A Buyer’s Market”

Marketing 3.0• Participation Era

– Relationships driving marketing– Product value defined by customer’s relationships– Customers buy the story attached to your product.

...and the story is easy to find.– Customers look to friends for product advice

“The Participation

Age”

The Web Becomes Social

• Social media gives consumers direct input to brands.

• Consumers moving from the informational web to the social web.

• The internet has started to move from the ‘what’ to the ‘who,’ moving from wisdom of crowds to wisdom of friends. – We get our news from friends and family. – We find jobs from people around us. – We trust our friends more than we trust the critics.

Social Media Stats

• 3 out of 4 Americans use social technology

• 2/3 of the global internet population visit social networks

• 61% of American adults look online for health information

History of Social Media

Key Social Media Tools

• Blogs• Social network websites (LinkedIn, Facebook)• Microblogs (Twitter)• Image share portals (Flickr)• Video share portals (YouTube)• “Mash up” websites (user-customized portals)• Third-party review & Check-in sites (Yelp,

Foursquare)

Twitter

• 31% of users follow a brand• Over 7,800,000 brand recommendations per month

YouTube• It is the most powerful on-demand communication

platform in existence (OPA study)• It has the potential to be viral• It’s high impact

Facebook

750 million

LinkedIn

• 90 million members in over 200 countries. • Executives from all Fortune 500 companies members.• Purely professional social media forum

– Makes it integral to any social media plan

Social Media Rules

Key drivers of successful social strategies:

• Immediacy• It’s a conversation, not a campaign • Must be based on core business goals• Must scale across the organization • Authentic consumer input

Testing markets

Brands build trust, test markets with immediate social feedback

CASE STUDY: Nexxus• Hair care brand Nexxus used social media to test the market• New ProMend product line to reduce split ends in a few uses

– Nexxus reached out to existing brand advocates to test their claim – Asked them to test a free sample and write a review – The product passed the test

• ProMend launched with reviews of 4.4 to 4.7 stars– Nexxus posted reviews across ad channels and retailers’ websites

• Feedback helped market the product and validated bold claim – Saving them money in potential product returns – Ensuring their ongoing consumer trust

It’s a conversation, not a campaign.

• Old marketing talked to consumers...• Today more conversation is between

consumers – ...than between brand and consumers

• Often consumer leads the conversations... – Marketers learning to listen, communicate, and share

• Scale increases exponentially as more social tools become mainstream

Core Business Drivers

Social initiatives

must be based on

core business goals

Core Business Drivers

CASE STUDY: Nationwide Insurance• Aligned with core goal: sell more auto insurance. • Gaining executive buy-in – Five core areas important

• Governance• Monitoring• Engagement• Commerce• Measurement

• Reviews launched in 2009 saw average rating 4.7 stars• Tremendous success:

– 40%+ quotes and 103%+ visitors looking for agents

Core Business Drivers

CASE STUDY: P&G• Consider business objectives and support them.• “Everybody’s speed of choice is one click away”

– “Consumers can make product decisions in a click.

• “Retailers can change their product offerings online in an instant, manufacturers can provide new content in a click – all this takes weeks or months in a store environment.”

Core Business Drivers

One of the most acclaimed viral campaigns of 2010 was the Old Spice Viral Campaign...

186 customized video responses led to 107% increase in Old Spice Body Wash sales over the last month

Social media must scale

Recommendations: • Social media requires new types of

organizations – Usually crosses departmental borders

• Get ready internally – Focus first on governance and process – Then on education to emerge as a center of

excellence. – Standardize with social media management systems

Authenticity

• The authentic consumer voice can have a huge impact on brands.

• The marketer must also present an authentic face – Social media INSTANTLY detects propaganda– Infinite choices make consumers impatient– World class service is becoming the expected norm

• When marketers join this conversation, major transformation occurs.

The Authentic Consumer Voice

• CASE STUDY: Rubbermaid• Customer reviews added to product pages

– Looked for one-star and two-star reviews

• New antibacterial sink mat – Less stain resistance led to negative feedback– Consumers wanted sink mats to make sinks look better – Rubbermaid fixed problem

• Rubbermaid’s response changed customer interaction – Saw company listening and caring – “I am happy that my ‘single voice’ may have made a difference.” – Big win

• Creating brand advocates from initially negative experience

When Social Media Backfires...

Not Corporate Propaganda

• BP America – well developed set of social media channels– 45,000 Facebook fans 18,000 Twitter followers– well-edited copy announcing victories and over-

emphasized progress.– no conversation, no give and take and no interaction

with the community

• Fake Twitter account – Satirizing response to spill attracted 37,000 followers – real Twitter account attracted only about 5,500

Marketing 3.0

Resistance is futile...

Guy IannuzziPresident, MentusDecember 3, 2012guy@mentus.com

The Future

Looking to the Future

• No one can know... what the next big thing in social media will be.

• The Internet has become a necessary part of people’s daily lives

• Social media is exploding in popularity all over the world.

?

Paradigm Change

• From a sellers market to a buyers market• Transformation of market research• The emergence of true transparency• Compression of launch windows and strategies

Social Media continues to evolve

• Major brands take social programs seriously– Not just retail– Brands ranging from highly-regulated insurance

companies to consumer packaged goods to business-to-business brand

• Exploring new ways to implement social initiatives

• Focusing on finding their authentic voices• Creating infrastructures

– That involve full organizations

Mobile First

• Mobile devices...will overtake and supplant computers.

...more interaction on iPhones and iPads than computers.

...also by companies and the Web.

• IT/service solutions defined by mobile consumption ...online shopping to effortless, paperless transactions and

check-ins

...watching and creating videos with friends abroad

...in-class learning and collaboration

...managing health in real time….

Looking to the Future

• Social media provides good practices for facing new challenges – Requires effective marketing efforts and authority-building– Makes all marketing plans utilizing it more effective

• What make social media effective, makes you better marketers overall

• A social-media strategy should be integral to any complete marketing plan – Service companies must be on cutting edge

• Social media is not just a phase– its an integral part of today’s marketing

Looking to the Future

• In 2012... – More companies go beyond using social channels for

building awareness and providing support. – Use social-media engine for strategic decisions and

execute objectives, marketing plans, product roadmaps.

– Expect a surge of service providers collecting social networks, video, mobile capabilities, cloud services and analytics, with their own unique services and proprietary capabilities.

Marketing 3.0

Resistance is futile...

Guy IannuzziPresident, MentusDecember 3, 2012guy@mentus.com