Marketing 3.0

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Marketing 3.0 Out with the old In with the new

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Early marketing was easy

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But consumers became smarter ���and distrustful of marketing

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As a result marketing���has had to evolve

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But some marketers are ���stuck in the past

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They’re still using old metrics ���with new media

•  Impressions •  Reach •  Frequency •  Ad recall •  CPM •  Mass market segmentation

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Hint: Impressions are meaningless

•  It’s engagement you should be measuring because engagement is not given, it’s earned by what you do and how you respond to your customers needs and feedback.

•  Is your marketing the kind of marketing that people want to interact with ?

•  Is your marketing the type of marketing that people want to share with others ?

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And consumers are���laughing at them

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But in order to stay relevant���marketing is changing again���

Marketing 1.0 Product-centric

Marketing 2.0 Consumer-centric

Marketing 3.0 Value-centric

Objective Sell products to the masses

Satisfy customers & brand loyalty

Meet emotional and rational needs of

consumers Enabling Forces Industrial Revolution Information technology Connectedness of

consumers

How marketers see the market

Mass market Smarter consumers & mass market

People instead of segments

Key Marketing Concept

Product driven market Differentiation Value of product to consumers emotions

Value Propositions Functional Functional & emotional Functional, emotional & rational

Interaction with consumers

Mass communication Micro segmentation Consumers collaborate with each other

Power of branding Marketers/companies Marketers/consumers Consumers

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Marketing 3.0���In a nutshell

Deliver Satisfaction

Profit Ability

Be Better

Realize Aspiration

Return Ability

Difference

Compassion

Sustain Ability

Make a Difference

Mind   Heart   Spirit  

Mission  (Why)  

Vision  (What)  

Values  (How)  

INDIVIDUAL  

COMPA

NY  

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What led to marketing 3.0 ?

•  The age of participation and collaborative marketing via the Internet. –  People create new ideas and talk to

each other via social media. –  People trust each more than

marketers. –  Recession has shaken the core values

of most consumers (shift from wants>needs).

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More collaboration tools means ���more trust between consumers

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At a time when customers are ���demanding more ���

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Therefore organizations need���more brand credibility

Trust Authenticity Transparency

Confidence Consistency

Integrity Authority

As promised Real & Sincere

Real People Informal

No Secrets Easy to find

Easy to understand No Hiding

Affirmation Listening Responsiveness

Playback Reinforcement

Search Placement Community

Empathy “Welcome”

Humility Feedback

Follow-up Making changes

Acknowledgement Thank you

Six  drivers  of  brand  credibility    

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Because company outputs don’t ���always match customer expectations

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Marketers need to understand that ���social communities have cycles

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Everyone can be���an influencer

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Mass Connectors & Mavens rule���Can you really ignore them ?

But  don’t  ignore  the  power  of  one  to  influence  others  

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Demographics of mass influencers

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You only have one chance to make a��� first impression, make it count

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And with all this going on ���collaborative media is evolving

"The web is at a really important turning point right now” "We're building toward a web where the default is social."

Mark Zuckerberg CEO Facebook

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The percentage of weekly social media users is at 73% of the online population.���

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So….

Adapt  to  MarkeMng  3.0  or  perish      

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Kotler’s Ten Credo’s ���of Marketing 3.0

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1: Love your customers, respect ���your competitors

•  Win their loyalty by giving them great value and connecting with them emotionally.

Example: •  Cambell’s Soup changed the color of its

packaging during Breast Cancer Awareness Month and improved demand significantly

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2: Be sensitive to change and be���ready to transform

•  Business landscape is changing and competitors are getting smarter along with your customers.

Example: •  Wal-Mart’s transformation from low-

low prices to green giant.

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3: Guard your name���Be clear about who you are

•  Brand reputation is everything thus ensure that you communicate your positioning and differentiation to your target market.

Example •  Body Shop practice of community trade and purchasing natural

ingredients from local and poor communities around the world.

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4: Customers are diverse���Go first to those who can benefit from you

•  Simple principle of segmentation but you can’t and should not try and be all things to everyone.

Example: •  Apple iPad is not a mass market product

and Apple has never strived to be a mass market product. They focus on a unique segment of early adapters and technology lovers which leads to higher margins per unit sale.

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5: Always offer a good package���at a fair price

•  Price and product must match customers expectations not yours.

Example: •  Target has positioned itself as the retailer

that offers great products at a fair prices and by doing so is attracting more of a upper middle class audience who is willing to spend more money.

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6: Always make yourself available���Spread the good news

•  Don’t make it hard for customers to find you.

Example: •  Amazon.com uses search to direct consumer directly to

product pages when they search for specific products. •  Whole foods has a store locator on their home page.

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7: Get customers, keep them���grow them

•  Get to know your customers one on one so you have a complete picture of their needs, preferences and behavior.

Example: •  Amazon.com builds recommendations based on past customer

purchases and delivers personal recommendations via customized home page and email.

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8: Whatever your business,���It’s a service business now

•  You must have the spirit of wanting to serve your customers.

Example •  Whole Foods sees its business as a service to customers and

society. It tries to transform the lifestyle of customers into healthy ones.

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9: Always refine your ���business processes

•  It’s a never ending process, exceed your promises to customers & suppliers.

Example •  S.C. Johnson is well-known for doing business with local

suppliers. It works with local farmers to improve productivity and delivery.

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10: Gather relevant information,���but use wisdom in making decisions

•  Keep learning and use your accumulated knowledge & experience to make decisions.

•  Consider more than the financial impact of a decision.

Example: •  Eli Lilly, a pharma company is allocating more money to R&D

to develop new drugs even though it has resulted in a lower ROI for Wall Street and investors.

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Also don’t forget Rich’s ���additions to these Credos

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11: You’re only as good as ���your employees

•  The best branding and marketing in the world cannot make up for an employee who doesn’t care about your customers.

Example: •  Zappos goes out of their way to train and retain talented

people. They will even pay people $2000 to quit because people that are more interested in money that job satisfaction are not employees they value.

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12: You can’t rely on outdate ���marketing in an era of new media

•  Impressions, reach, frequency, ad recall mean little today. •  Stop trying to quantify everything with a spreadsheet analysis

because your competitors are doing the same thing. •  Stop thinking CPM, ARP, and mass marketing. Start thinking

like a consumer.

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13: Don’t cut costs when it comes ���to customer service

•  “If my call is so important to you then why am I on hold with a recorded voice telling me “my call is important to you”.

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14: Learn to listen before ���joining the conversation

•  Would you walk up to two people at a party and start talking without finding out what they are talking about ?

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In summary…

•  The recession has changed consumer behavior forever. •  Consumers have more power than via the evolution of

collaborative tools on the Internet. •  Stop using outdated marketing and realign processes around

your customers not your company. •  Reward employees who deliver a great customer experience. •  Think as a consumer..not as a marketer.

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About me

Richard Meyer •  My resume http://www.richardameyer.com •  My marketing BLOG http://www.richsblog.com •  MY DTC BLOG http://www.worldofdtcmarketing.com

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