fast take on_the 4ps of marketing

5/20/2018 Fast Take On_The 4Ps of Marketing

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September 2014

The New 4Ps of

Marketing


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In this Fast Take we examine how the traditional 4psProduct, Price, Placement, and Promotionare evolving in aworld of real-time marketing and multiple screens.

In the process, we explore the emergence of a new 4Ps formarketingPortability, Personalization,Proximity, andPresencealong with the imperative (and opportunities) they

present to brands and marketers around the world.


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WHATS INSIDE

The new customer journey: What brands need tounderstand to thrive in a real-time, multiscreen world

Portability: Applying the concept of responsive

design to the entirety of the customer experiencePersonalization: Using volunteered and impliedcustomer data to create more meaningful content

Proximity: Going beyond latitude and longitude tocreate true contextual relevance

Presence:Integrating digital connectivity into thephysical world

Case studies: Inspiring brand executions


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THE NEW LANDSCAPE WHATS DRIVING THE TREND?Thanks to an expanding ecosystem of devices andtechnologies, marketing is evolving faster than ever. Almosteverything is becoming connected to the Internet and

brands face pressure to be accessible anytime, anywhere,across a fast-growing array of touchpoints.

So what are the new 4Ps?

Product, Price, Placement, and Promotionstill matter butthe new4Ps enable us to expand upon and magnify theireffects in an increasingly digital world.

These new 4Ps are:

Portabilityof the customer experience across myriaddevices and interfaces.

Personalizationof the customer experience usingvolunteered and implied data.

Proximity,adding additional context based on wheresomeone is bothliterally (e.g., geo-location) andmetaphorically (e.g., customer journey).

Presence, integration of digital interactivity intotraditional media and everyday objects.

Mobility has disrupted digitals status quo inunforeseen ways. The one-size-fits all approach tocontent is a thing of the past; today brands must be

accessible across many screens but they must also berelevantto the user behaviors these devices engender.

Consumer adoption of smartphones and tablets is thekey driver of this trend. Better, more affordablehardware and cheaper, more plentiful data havecreated a culture in which consumers expect content tobe automatically customized to their screen of choice.However, in this new always-on, internet-of-things

world, literally everything has potential to be a screenand this complicates matters for brands considerably.

Complexity makes it tempting to resist change and itscommon to try to retrofit the new into the oldcase inpoint, the websites of the early 90s that looked somuch like print brochures. But Moores Law ensuresthat marketing will continue to evolve at a faster pace

than ever. The new 4Ps provide a familiar frameworkfor brands to navigate this new world where change isthe only constant.

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THE NEW

CUSTOMERJOURNEY

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Gets a pushmessage from

an app

Gets a beaconmessage froma POS display

Sees a beacon-triggered

personalizedDOH message

Gets asponsored

message froma smartwatch

Todays always-on consumer iscontinuously bombarded withinformation, seeing thousands ofbrand messages per day.

The key to success is to create clarityamid the chaos, delivering the rightexperience to the right person at theright time across the many digitaltouch points of the journeyi.e., bybehaving responsively.

Responsive Brands create successfulrelationships with the connected

consumer by applying the principlesof responsive designi.e., real-time,contextual, multiscreen experiencedeliveryto all aspects of marketing,from start to finish.

Makes a mobilepayment

Scans a QRcode on apackage

Sees a Twitterad while

watching TV

Scans aproduct logo to

see an ARexperience

Performs avisual searchusing smart

glasses

Performs avoice searchusing an app

Texts to a shortcode on abillboard

Searches forinfo on her

smartphone

Gets an alertfrom a fitness

tracker

Interacts withan in-store

kiosk

Responsive Brands are useful, usable, and relevant across the

many diverse touchpoints of the new customer journey


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PORTABILITYThe imperative to behave responsively

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Portabilityis about seamless experiences thatmake the customer journey faster, more

enjoyable and ultimately more successful forconsumer and brand alike. In essence, its aboutreducing friction in an increasingly frenetic world.

Responsive web designwas the earliest and m0stobvious portability trend, but behavingresponsively has evolved far beyond deliveringdigital content to smartphones and tablets. Truly

responsive brands are the ones creating holisticcontent ecosystems that support the needs ofreal-time, multiscreen consumers, e.g.,

The ability to initiate payments in real-time ona chosen device

The option to start a video on one screen andcontinue it on another

The opportunity to get customized product

information through in-store screens

The chance to get specialized offers andrewards based on your current location andyour relationship with a brand


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According to comScore, as of June 2014,smartphones and tablets accounted for60% of Internet usage1in the United

States.

The concept of mobile first, i.e., usingmobile devices as the starting point fordesigning digital content, is fastbecoming a best practice for brands.

More than 50% of digital mediais consumed using non-desktop devices, a percentagethat will continue to grow asnew screens evolve1.

It is vital for brands tounderstand how to create theright experience across newinterfaces, not just in terms ofusability, but in terms ofcontent as well.

TOP PORTABILITYTRENDS

MOBILE-FIRST CONTENTSTRATEGY

APP CENTRIC CONTENTDESIGN

Consumers spend upwards of 80%2oftheir mobile time in native apps. Thisdemonstrated preference for thestreamlined and customizable userexperience of apps impacts how brands

invest their digital dollars in both media andcontent development.

Not only are brands accelerating the shift toin-app advertising, there is also anincreased emphasis on developing brandednative apps and in actively cultivating a highlevel of post-download engagement.

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1.comScore,Major Mobile Milestones in May: Apps Now Drive Half of All Time Spent on Digital; June 20142.Flurry, Flurry Five-Year Report: Its an App World. The Web Just Lives in It,, April 2013
http://www.comscore.com/Insights/Blog/Major-Mobile-Milestones-in-May-Apps-Now-Drive-Half-of-All-Time-Spent-on-Digitalhttp://www.comscore.com/Insights/Blog/Major-Mobile-Milestones-in-May-Apps-Now-Drive-Half-of-All-Time-Spent-on-Digitalhttp://www.comscore.com/Insights/Blog/Major-Mobile-Milestones-in-May-Apps-Now-Drive-Half-of-All-Time-Spent-on-Digitalhttp://www.comscore.com/Insights/Blog/Major-Mobile-Milestones-in-May-Apps-Now-Drive-Half-of-All-Time-Spent-on-Digitalhttp://www.flurry.com/bid/95723/Flurry-Five-Year-Report-It-s-an-App-World-The-Web-Just-Lives-in-Ithttp://www.flurry.com/bid/95723/Flurry-Five-Year-Report-It-s-an-App-World-The-Web-Just-Lives-in-Ithttp://www.flurry.com/bid/95723/Flurry-Five-Year-Report-It-s-an-App-World-The-Web-Just-Lives-in-Ithttp://www.flurry.com/bid/95723/Flurry-Five-Year-Report-It-s-an-App-World-The-Web-Just-Lives-in-Ithttp://www.flurry.com/bid/95723/Flurry-Five-Year-Report-It-s-an-App-World-The-Web-Just-Lives-in-Ithttp://www.flurry.com/bid/95723/Flurry-Five-Year-Report-It-s-an-App-World-The-Web-Just-Lives-in-Ithttp://www.flurry.com/bid/95723/Flurry-Five-Year-Report-It-s-an-App-World-The-Web-Just-Lives-in-Ithttp://www.flurry.com/bid/95723/Flurry-Five-Year-Report-It-s-an-App-World-The-Web-Just-Lives-in-Ithttp://www.comscore.com/Insights/Blog/Major-Mobile-Milestones-in-May-Apps-Now-Drive-Half-of-All-Time-Spent-on-Digitalhttp://www.comscore.com/Insights/Blog/Major-Mobile-Milestones-in-May-Apps-Now-Drive-Half-of-All-Time-Spent-on-Digitalhttp://www.comscore.com/Insights/Blog/Major-Mobile-Milestones-in-May-Apps-Now-Drive-Half-of-All-Time-Spent-on-Digitalhttp://www.comscore.com/Insights/Blog/Major-Mobile-Milestones-in-May-Apps-Now-Drive-Half-of-All-Time-Spent-on-Digital


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PERSONALIZATIONThe end of the one-size-fits-all customer experience

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Early tools like Google Maps catalyzed the sharing ofpersonal data (e.g., physical location), in exchange for

customized, real-time content (e.g., directions). Theseexperiences opened us up to the idea that it might beOK to share a little non-personally identifiable data aslong as we got something of value in return.

The next wave of personalization came from social andservice oriented brands (e.g., LinkedIn, Netflix,Amazon) that customized the content served based onobserved behaviors from users such as people theyfollowed, movies watched, products purchased, etc.

Now were seeing personalization spreading to morediverse types of brands, with adoption most evident inRetail/CPG. Rather than simply using analytics tocustomize content, these brands are using datavolunteered by users to create better experiences.

The idea of consumers proactively exchanging data forcustomized content is particularly compelling in aworld where the cookie is no longer the silver bulletand where consumers are more aware of, andconcerned by, potential infringement on their privacy.

Warby Parker Virtual Try On

Shoe Dazzle Style Profile

Trunk Club Personal Shopping


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The wearables market is expected to be worth8.36 billion by 2018, and its just gettingstarted1.

Brands early to the marketplace, like theJawbone Up and Nike FuelBand, introducedconsumers to the concept of owning their dataand making something meaningful out of it.As wearables become increasinglysophisticated and integrated with mobiledevices, personal data management willbecome more consistent and the practice ofusing it as a form of currency more common.

Consumers are becoming moreaware that they produce data thatcan be exchanged with brands forsomething they value, such asdirections, better content, toolsthat help us make better

decisions, etc.

Now is an opportune time forbrands to understand how toproperly collect and solicitconsumer data, and to determinehow it can be used to improve thecustomer experience.

TOPPERSONALIZATION

TRENDS

THE QUANTIFICATION OFTHE SELF

MULTISCREENSEQUENTIAL CREATIVE

Cross-screen analytics, driven by mobiles cookie-less state, has evolved from the experimentalstage into a viable (albeit nascent) medium.Hybrid statistical solutions designed for mobileare enabling a unified view of a single consumeracross multiple devices and offering brands theopportunity to finally create a truly sequentialnarrative with media and content.

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1. Markets and Market Report, Wearable Electronics Market worth $8.36 Billion By 2018 ,October 2013
http://www.powershow.com/view/406ae3-NDA5O/Wearable_Electronics_Market_worth_8_36_Billion_By_2018_powerpoint_ppt_presentationhttp://www.powershow.com/view/406ae3-NDA5O/Wearable_Electronics_Market_worth_8_36_Billion_By_2018_powerpoint_ppt_presentationhttp://www.powershow.com/view/406ae3-NDA5O/Wearable_Electronics_Market_worth_8_36_Billion_By_2018_powerpoint_ppt_presentation


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PROXIMITY

Proximity extends the concept of location beyond latitude & longitude to include

adjacency to places of interest and real-time events, because knowing whereconsumers are and whats going on around them is almost as relevant as whoa

consumer is.

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Latitude & Longitude Places of Interest Events & Circumstances

Latitude and longitude are the fundamental elements of proximity but the true value lies in including additionallayers of location-oriented signals

Using location and ambient factors to create context

Lat Long only tells you so muchlayering in other data (e.g., whatshappening nearby, places andthings in the vicinity, who someoneis, and their relationship with abrand) turns geo-coordinates fromsimple numbers to true relevance.

Understanding what is in acustomers vicinity tells us a greatdeal about his or her needs state(e.g., they are likely to respondvery differently to an offermessage from Target whenstanding in the store vs. whensitting in their living room).

Real-time events add an additionallayer of valuable context toproximity. Weather, seasons,events, and many other types ofdynamic circumstances, whencombined with geo-location andproximity to places of interest,supercharge the standard notion oflocation.


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Proximity is a standard element of searchand display campaigns, but, as brands beginto understand the influence that proximity

has on consumers, its becoming appliedmore frequently to the contentitself.

Consumers will soon fully expect the websiteof a hotel to look very different when viewedon a smartphone while standing in its lobbyvs. when they booked on their home PC.

Proximityenables a brand totruly be where the customer is,and to create just the rightexperience in the moment.

As consumers spend moreand more time on geo-awaremobile devices, brands mustmove beyond simple geo-targeted media and developfull proximity strategies thatextend to digital content andbrick and mortar experiences.

TOP PROXIMITYTRENDS

PROXIMITY INFLUENCINGCONTENT AND MEDIA

MASS UPTAKE OFBEACONS AND SENSORS

Today, 200 million iOS devices can serve asproximity transmitters andreceivers1andbrick and mortar brands are rolling outbeacon programs to track the movements ofconsumers and send hyper-targeted alerts.

The catch? Beacon messages must comethrough an app, problematic for brandsstruggling to maintain a loyal app user base.Even so, expect mass adoption of beacons onthe brand side, as well as increasingly positivereceptivity from consumers, as beacons areused to reduce friction in the journey.11

1. Business Insider, BEACONS: What They Are, How They Work, And Why Apple's iBeacon TechnologyIs Ahead Of The Pack, May 2014
http://www.businessinsider.com/beacons-and-ibeacons-create-a-new-market-2013-12http://www.businessinsider.com/beacons-and-ibeacons-create-a-new-market-2013-12http://www.businessinsider.com/beacons-and-ibeacons-create-a-new-market-2013-12http://www.businessinsider.com/beacons-and-ibeacons-create-a-new-market-2013-12http://www.businessinsider.com/beacons-and-ibeacons-create-a-new-market-2013-12http://www.businessinsider.com/beacons-and-ibeacons-create-a-new-market-2013-12http://www.businessinsider.com/beacons-and-ibeacons-create-a-new-market-2013-12http://www.businessinsider.com/beacons-and-ibeacons-create-a-new-market-2013-12http://www.businessinsider.com/beacons-and-ibeacons-create-a-new-market-2013-12http://www.businessinsider.com/beacons-and-ibeacons-create-a-new-market-2013-12http://www.businessinsider.com/beacons-and-ibeacons-create-a-new-market-2013-12


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PRESENCEThinking beyond the browser

WEARABLES

Smart glasses, smartwatches,fitness trackers, and smart

clothing

The true value of wearables will likelycome from the data they deliver to

other interfaces (e.g., a fitnesstracker delivering activityinformation to a smartphone app) orthe experiences they trigger on largerscreens (e.g., a smartwatchtriggering a DOH screen to display acustom message as a user passes by).

CONNECTED ANDCONVERGENT SCREENS

Interactive in-store experiences,lobbies, and showrooms

Interactive screens are becomingcommonplace in brick and mortar

settings, providing access to thetools and information of the .comworld in a bigger visual palette.

These connected and convergentscreens augment in-storeexperiences with deeper levels ofinformational detail that can becustomized by proximity to a

mobile device and navigated at adistance by gesture or glance.

SOCIAL MACHINES

Social machines will greatly reducefriction by customizing the product

dispensed or the service rendered toeach unique usere.g., the fridge thatorders milk when youre running low, orthe coffee cup that alerts you thatyouve maxed out on your caffeineconsumption for the day.

Soon the idea of an object of any kindnot being interactive will be

unthinkable

Vending machines, appliances, kiosks, andeveryday household objects connected to

the internet

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As everyday objects connect to the internet, a new world of marketing possibilities emerges. Theresno clear blueprint for what brand experiences look like through a vending machine or a smartwatch,making it an opportunity for early adaptors to set the standards.


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As the internet of things comes tofruition, consumers are expectingthat even the most simple,everyday objects will providesome element of interactivity.

For brands, this is a goldenopportunity to create newinteractive touchpoints viapreviously static stops along thecustomer journey.

TOP PRESENCETRENDS

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MOBILE AS AN ACTIVATOR

The most compelling thing aboutsmartphones is that they rarely, if ever, areout of reach. This fact, coupled with innatedevice features like SMS, Bluetooth, and

NFC, make them the ideal activation toolfor formerly static media, taking broadcast,print, POS, and digital and traditional OOH,and turning them into interactive mediums.

It will be increasingly rare to see a piece oftraditional media that is not activated insome way by a mobile device.

Many brick and mortar brands are installinglarge format digital screens to augment thecustomer experience and supplement

customer service efforts.

Unlike earlier versions devoted largely tomarketing messages, these screens offerreal utility, enabling customers to browseinventory, customize products andexperiences, share their choices, and, inmany cases, complete transactions.

LARGE FORMAT IN-STORESCREENS


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WHAT THIS MEANS FOR BRANDSBest Practices For Marketers To Capitalize On The 4Ps of Marketing

Brands Must Behave ResponsivelyContent must be useful, usable, and contextually relevant on the three standard screenssmartphone,tablet, and desktopbut also on many other new digitally-enabled interfaces. Hence, digital infrastructureand strategy must be as flexible as possible to support delivery to the screens that matter now and those thatwill matter in the future.

Customers Expect Something In Return For Their DataCustomers are increasingly aware that they produce data and that it has value, and are progressively

expecting content and experiences relevant to who they are, where they are, the device they are using andtheir relationship with your brand. Providing opportunities for them to proactively share their data with youwill be essential to success.

Proximity Is More Than Latitude And LongitudeKnowing where someone is and whats around them will be a standard element that defines your content.But the metaphorical meaning of proximity (e.g., where someone is in the customer journey) will have just asgreat an impact on your strategy. Smart customer experiences that are contextualized according to eachusers unique relationship with the brand will simply be the status quo.

Brands Must Think Beyond The BrowserThe Internet of Things is still nascent but, eventually, everything will be a digital touchpoint, from a bathroommirror to the vending machine in the company lounge. Getting your content there will be less of a technicalchallenge and more of a creative one. Now is the time to experiment with how you will collect data throughthese new mediums and how that data will be applied to creating and delivering content.

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Amazons understanding of portabilityi.e., ofmaking the brand accessible in the most useful,usable way possibleis clearly evident in the newFire Phone.

The Fire is a brilliant example of Amazon extendingthe customer experience of Amazon.com to the

consumer in a more integral way. Visual shoppingtools coupled with delivery by Prime woven tightlyinto the UI bring a level of convenience that farsurpasses what the Amazon app is able to provide.

PORTABILITY: Amazon Fire Phone

From the launch of mobile payments in 2009 to thedebut of a responsively designed website in 2012, CEOHoward Shultz & Co continuously strive to create acustomer experience that exemplifies portability.

In 2014, rumor has it that Starbuck will be rolling out

iBeacon in its stores, enabling seamless delivery ofreward points and debiting of payments. Theres alsospeculation that consumers will be able to earn pointsthrough transactions with 3rdparty brands. These andall Starbucks mobile innovations to date illustrate akeen understanding of modern retail in which ease ofuse and on-demand access to the brand are valued at apremium by customers.

PORTABILITY: Starbucks


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PERSONALIZATION: Trunk Club

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PERSONALIZATION: Warby Parker

Trunk Club ushers new shoppers through a series ofquestions designed to get to the root of onespersonal style. Measurements, brand preferences,and quizzes designed to assess subjective tastes

result in a curated collection of clothing deliveredmonthly to your home.

Trunk Clubs business model is exemplary of themove towards using customer-supplied personaldata to create a better customer experience and, inthis case, a more personalized service.

Warby Parkers practice of encouraging the consumer toshare data enables the brand to create a more curatedexperience and a frictionless journey. Customers uploadtheir prescription info online and then have the optionof doing a virtual try on and having sample framesshipped to their home, or, they can walk into one of thebrands many popup showrooms to find which framesthey like best. Sales reps can then tap into a completehistory of a customers shopping data whether its awish list, past purchases, or the prescription info theyentered on the website.


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PRESENCE: Coca-Cola Fair PlayMachine

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PRESENCE: Cadburys Facebook-Powered Vending Machine

Coca-Colas Happiness Machines are some of the earliestexamples of the social machine phenomenon. The mostrecent, shining example is the Fair Play project where twomachines were installed outside separate entrances to aMilan soccer stadium. Fans could not get a drink for

themselvesrather, they were encouraged to dispense afree soft drink to fans of the rival team on the other side ofthe stadium.

The Fair Play machines exemplify Coca-Colas Buy TheWorld a Coke mantra and underscore the power of presencewhen integrated into formerly static elements of thecustomer experience.

The Facebook powered "Joy Generator launched byCadbury Australia analyses a customers Facebook profileand uses the information to automatically assign him or hera candy bar flavor.

Like Coca-Colas Happiness machines or Oreos 3D cookieprinter the Joy Generator uses social interaction andphysical machinery to create branded awarenessmoments. However, we predict that over the next 18-24months we will start to see personal data used to enablemore functional human/machine interactions and moredigital interactivity triggers built into everyday objects fromrefrigerators to washing machines to in-store price checkscanners.


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PROXIMITY: L'Oreal'sLocation-Based Beauty Tips

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PROXIMITY: Duane Readeand iBeacon

Visit the homepage of beauty brand LOreal on adesktop, smartphone, or tablet and you will noticea unique use of location to drive productrecommendations. Is it blazing hot where you areright now? You might see recommendations for

SPF-enriched products. Overcast days might triggertips for a cheery makeover to boost your spirits.

LOrealsinventive approach to content and locationshows a keen understanding of how whereyou areinfluences your needs state, and hence, yourpurchase decisions. We predict youllsee more andmore brands using location to modify .com contentacross all device platforms in a granular, geo-location specific way.

A more advanced example comes from Duane Reade,the largest drugstore chain in Manhattan whereiBeacons have been installed in ten locations. When aconsumer who has the Duane Reade app installedapproaches one of the pilot locations, the beacon willconnect and trigger push notifications, including offersbased on previous preferences and even productreviews for items they browse in the store.

The campaign launched May 1st, 2014results are stillforthcomingbut Duane Reades early investment inbeacon technology shows a clear understanding of howimportant proximity marketing is poised to become forretail brands.


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It was easier when our biggestworry was Does it work in InternetExplorer on a Mac? Those days aregone for good. Faster, cheaperdata, mobile devices, social media,and the internet of things havechanged marketing forever.

And thats agood thing.

Not only can we be where thecustomers is, we can be there in theright way, in the right place, at theright time on whatever devicemakes best sense in the moment.

Theres no clear blueprint for thisconstantly evolving ecosystem buta few key concepts light the way.

THE NEW 4PS:KEY TAKEAWAYS

Put handles on your content: Theres no definitive way to knowwhat platforms you will have to port your content to in the future so thenear-term recommendation is to create as modular and flexible digitalarchitecture and strategy as possible to ensure that you can extend yourbrand to the interfaces that matter both now and in the future.

Make it contextual: As consumers become more consistently connectedvia digital, they are bombarded with more media, confronted with more

choices and presented with more opportunities. Brands must focus onapplying volunteered and implied data to create content and cross-screenexperiences that are more contextualized to real-time circumstances andthe unique needs of the customer.

Think beyond the browser: Thanks to mobility, brands can connect withconsumers in real time through multiple touchpoints in the physical world.Some of these opportunities are more tangible than others, such as

wearables, where the standards of content and media are still evolving. Theessential principle for brands to keep top of mind is that the customerexperience need no longer be confined to a browser windowmultipletouchpoints in the physical world should factor into digital marketingstrategy as a matter of course.

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Thank you!

For questions or more information, please contact:

Rachel Pasqua,Head of Mobile, MEC North America

[email protected]

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