Digital Marketing Foundation Inbound vs. Outbound Marketing Presented by Karen Porter Department of Marketing School of Business Administration The University of Montana

Course Specifics About the course About your instructor Hands-on & interactive 4 weeks with “homework” First segment of 20 week OSMM certification course impactonlinemarketing.com/sell-digital-foundation About your instructor karen@impactonlinemarketing.com 406-529-8931 About YOU and why you are here Introductions Student information sheets

What is Marketing? Astute evaluation of trends and opportunities Deep insights about customer needs Knowledge of competitors, positioning & value Segmentation, targeting, and positioning Effective use of Marketing Mix – the “4 P’s” Effective relationship management strategies

Inbound vs. Outbound Marketing Outbound marketing is traditional marketing Marketers identify the consumers they want to reach and then broadcast out to them Interruptive marketing One-way communication Inbound marketing lets customers find YOU They’re searching for what you have and locate YOU Two-ways (or multi-way) communication Interactive in nature Focused on relationship building and loyalty

Who is Your Target Market? 80/20 Rule Identify by similar characteristics: Age, Gender, Income, Education, Interests, Occupation and Other Criteria of Relevance

Strategy Decisions Can Be Very Difficult

Key Marketing Strategy Decisions

Insights from Target Customers

Target Insights > Strategic Decisions > The 4 P’s of Marketing

Rules of the 4 P’s

Delivering What Your Customers Want

NOW You Can Think About Specific Marketing Tactics

Before the Internet Businesses relied upon traditional media: Yellow Pages Newspapers Television Radio Magazines Telemarketing Direct Marketing Fax Marketing

Times are Changing Traditional advertising media are losing effectiveness – and here’s why!

Traditional advertising media are losing effectiveness Times are Changing Traditional advertising media are losing effectiveness Directories – (focusing primarily on Yellow Pages) Get out-of-date quickly (may be inaccurate) Expensive Multiple options (does Missoula need 3 Yellow Pages?) Does your business need to BE in all three? Huge fall-out in usership – consumers moved online

Traditional advertising media are losing effectiveness Times are Changing Traditional advertising media are losing effectiveness Print Publications Printing costs have increased Readership is skewed to older demographics Fewer readers = lower distribution = lower ad revenues Major newspapers have closed their doors

Traditional advertising media are losing effectiveness Times are Changing Traditional advertising media are losing effectiveness Television – harder to grab and hold attention Fragmentation of viewers Zipping (skipping through commercials) Channel surfing during commercials Alternative viewing – Hulu

Traditional advertising media are losing effectiveness Times are Changing Traditional advertising media are losing effectiveness Radio Background medium (hard to get undivided attention) Alternative options in vehicles Satellite radio Plug in your iPod Listen to CDs Alternatives in homes/offices Internet radio (Pandora, etc.) Cable Television music options iPods

Traditional advertising media are losing effectiveness Times are Changing Traditional advertising media are losing effectiveness Direct Mail – costly / low conversion / slow Costly on a per piece basis MUST be tightly targeted to be cost effective Only works for higher prices items (based on ROI) Low conversion Slow

Traditional advertising media are losing effectiveness Times are Changing Traditional advertising media are losing effectiveness Directories – print versions go out of date / expensive Print Pubs – in decline / costs up / shifting readership Broadcast – fragmentation / zipping / zapping / Hulu Direct Mail – costly / low conversion / slow Telemarketing – do not call lists / intrusion factor Faxes – mass faxing less effective / easy to overlook Referrals – ALWAYS relevant / but lack of control

Traditional advertising media are losing effectiveness Times are Changing Traditional advertising media are losing effectiveness Telemarketing – 1990’s was huge for this Do No Call Lists Significant reduction of registered land lines Viewed as privacy invasion (i.e. “spammy”

New Media is Online & Online Statistics are Astonishing 1 Trillion + — number of web pages in the world 200+ Billion online searches each year in U.S. alone 30 % — searches that are targeted locally (city or zip )* 20 % — total online searches done by mobile phones* 37 % — small businesses without a website* 80 % — local searches done on mobile devices = buyers* 0 % — chance to connect with consumers who are searching online if an organization doesn’t have an online presence * 2012 statistics based on U.S. data only

Business Owners Face Marketing Challenges Recession has led to slower sales & lower profits Traditional media declining in effectiveness Consumers are searching for businesses online Business owners are confused and frustrated about how to use online marketing effectively Many businesses lack either the knowledge, the interest, or the time to learn online marketing and develop an online strategy…..

Does This Describe You?

A Website is Essential But Having One isn’t Enough Websites lend credibility The business card of yesterday Is your website getting found? Know how people are searching & where your site is ranked How do you drive traffic to a website? Know what your prospective customer is doing online Is your site helping or hurting your business? Does it promote your business to best advantage? Your site should be an online HUB!

Your Website as an Online Hub

Why Being “On” Google is Vital 70% of all U.S. online searches are done on Google 80% + of intl. online searches are done on Google (with a few notable exceptions – ex: China) 60% of searchers do not typically search beyond page one of search engine results Do you know what your potential customers are searching for? – Keyword Research Need to be FOUND by those searching for the goods and services you offer – SEO (Search Engine Optimization)

Website Not Getting Found? Was the site developed strategically? Were goals clearly defined on the front end? Was keyword research done first to drive how and where those words are optimized on the site? Did development include these 3 key elements? Solid coding (the site functions as it should) Strong design (attractive, credible & user-friendly) Strategic marketing (solid SEO, marketing strategy done on front-end, integrated and ongoing online marketing strategies) Are you using best practices of SEO? On-page optimization Links coming into the website (quality counts more than quantity) Social validation

Mobile Marketing – The Next Wave 67 % of U.S. citizens now own smart phones Japan and Europe mobile are far ahead of U.S. in smart phone usage; the U.S. is sure to follow 97% of smart phone users search online by phone <20% of all sites are mobile-friendly By end of 2014, more people will access websites by smartphones and tablets than by desktops and laptops combined!

Social Media – “Do I HAVE to use…” Facebook Twitter LinkedIn Pinterest Google + Local Blogging Instagram Other?

Social Media KISS – F.O.C.U.S. Focus – on 1-2 targeted social media platforms One in four “rule” Calendar – plan monthly / quarterly in advance Utility – use tools to make posting easier Social – create content that is “share-worthy”

“Share-worthy” is KEY Share-worthy is NOT:

Share-worthy Content Is NOT: IS: Pitch, pitch, pitch Obviously self-serving all the time One-sided communication IS: Interactive – two way communication Involves your customers, fans, etc. Engaging!

Four Types of Content Informing Storytelling (most important) Product / service reminders (i.e. “selling”) General (but related) content

Informing Content What’s new in your business Updates special events New products New services New staff Updates special events Sales and promotions Special events – grand opening, holiday celebration, etc. Other “announcement” type information Awards Media coverage Etc.

Storytelling Content Stories about your customers Stories about you – personalize the business owner / managers of the business Stories about staff and why they work for you Schedule: as often as possible – will need to encourage participation!

Product & Service Reminders Product / service highlights Subtle “selling” of a product your carry or service you offer Present as problems to solutions when you can Do NOT make it a strong sales pitch Soft-selling in social media works much better

General Related Content Fun, FYI-type information that is relevant to your products / services Cartoons Memes Photos sent in my customers, Etc. Fun, FYI-type info that is universally appealing (quotes and related)

What Does All This Mean for Biz? Marketing strategy needs to marry online and offline marketing initiatives Know specifically the words your customers are using to search – them use those words online Use online findings to market offline Use media that is right for your type of business Know what’s already working for you - continue using what works and eliminate what’s not

What Does All This Mean for Biz? continued Know your “conversion funnel” statistics – having the ability to measure gives you power Develop a STRATEGY (don’t just try a hodge-podge of ideas hoping something will work) Measure and tweak what’s working and then “rinse and repeat” to improve your results Do NOT try to do everything – start by doing several things really well and you’ll have better success Add more things as you succeed with initial efforts

Karen Porter karen.porter@business.umt.edu -or- karen@ImpactOnlineMarketing.com (406) 529-8931