Schulich Executive Education Center July 22-24, MarCom Seminar Day 3: MarCom 2.0 for Competitive Advantage © Detlev Zwick, PhD July 24, 2009

2 Detlev Bio Schulich School of Business, Marketing professor Research, writing, teaching (Exec, MBA, BBA) Consulting –Vattenfall –BMW, UK –Board of Education, City of Providence, USA –Toronto FC –Various start-ups (with various success)

What we will do today Discuss how communication value (through customer value) is generated and delivered in a Web 2.0 world Effective web-based communication tools –Brand engagement w/o push Develop an online marketing communication plan –Things you can do tomorrow

At the end of this day, you should be able to…. Understand the fundamental change of MarCom in a web 2.0 world Describe the various online communication tools and their role in MarCom. Have a set of online communication recommendation for your organization.

Customer Feedback “Today’s marketing world is broken…We are still too dependent on marketing tactics that are not in touch with today’s consumer” –Jim Stengel, Global Marketing Officer, Procter &Gamble “Used to be, TV was the answer. The only problem was it stopped working sometime around 1987.” –President GM North America “Broadcasting an ad on television or in a newspaper is admitting you have no idea who your customers are.” –Gary Loveman, CEO, Harrah’s

21 ST Century Marketing Challenges FRAGMENTATION!! –Attention –Demand –Social Communication

So, together Fragmentation, Long Tail, Social Communication makes reaching and keeping the attention of your customer ever harder.

Common cures?

Problem is You still interrupt…

Let’s look at the Web 2.0 Tools

Search engine marketing Viral marketing Online Forums, Wikis Blogs (incl. Audio, Video) Online retailing/Website Strategies

Search Engine Marketing 3 types –organic search marketing (results based on algorithm) –pay-per-click search marketing (results based on auction system) –social search (based on collaboration of consumers)

Search #1 Rule: Speak your customers' language.

The Future of Search Search will continue to evolve and increase in relevance Snap.com (uses click stream info to augment results) Visual enhancement (Mooter, Kartoo) Blog Search (Technorati, Google, Yahoo) Image search (Flickr and others)

Search engine marketing Viral marketing Online Forums, Wikis, List Serves Blogs (incl. Audio, Video) Online retailing/Website Strategies

Viral Marketing (buzz, word-of-blog) Grobe and Voltz! –The Diet Coke and Mentos guys on Eepybird.com GoldenPalace and Shattner’s kidney stone! Snakes on a Plane!

Search engine marketing Viral marketing Online Forums, Wikis, List Serves Blogs (incl. Audio, Video) Online retailing/Website Strategies

Some Wikis/Forums Intuit: taxalmanac.com (top 20 wiki site in US) EBay: ebaywiki.com Tivo: tivocommunity.com (not built by Tivo!) Mike 2.0 wiki (BearingPoint)

Search engine marketing Viral marketing Online Forums, Wikis, List Serves Blogs (incl. Audio, Video) Online retailing/Website Strategies

Blogs = Word-of-Mouse Comes in –Text –Video –Audio

Search engine marketing Viral marketing Online Forums, Wikis, List Serves Blogs (incl. Audio, Video) Online retailing/Website Strategies

Simple: Opt-in and Recommendation Only is disruptive almost by definition. So, almost by definition, it’s spamming. BUT: can be very targeted, timely, and relevant.

Search engine marketing Viral marketing Online Forums, Wikis, List Serves Blogs (incl. Audio, Video) Online retailing/Website Strategies

Content is King Webmaster not King Graphic designers not King Advertising creatives not King

Example: NRDC (.org) Lots of news, resources, and information –In audio, video, text –Online publication –Links to laws and treaties Provides platform for others to contribute Spread the message: –Provides widgets for download and links for Bloggers –Provides ‘badges’ to be placed on blog. –Provide support for Squidoo lenses

Web 2.0 amounts to: A new medium that is as influential as CNN and the New York Times

Mapping Digital Communication Consumer Marketer Consumer

Mapping Digital Communication Consumer Marketer Retail sites Banner Ads/Links /Spam News Releases Blogs/Online forums Search Engine Optimization Viral/social marketing MarketerConsumer

Mapping Digital Communication Consumer Social search Third party and retailer evaluation sites (e.g. epinions.com) Blogs Wikis Social networking sites Marketer Retail sites Banner Ads/Links /Spam News Releases Blogs/Online forums Search Engine Optimization Viral/social marketing Marketer Consumer

Mapping Digital Communication Consumer Social search Third party and retailer evaluation sites (e.g. epinions.com) Blogs Wikis Social networking sites Marketer Link building News releases Blogs/Online forums Retail sites Banner Ads/Links /Spam News Releases Blogs/Online forums Search Engine Optimization Viral/social marketing MarketerConsumer

Mapping Digital Communication Consumer Search Company-owned product evaluation sites (beta) Blogs/ Online forums Knowledge management Feedback sites Social search Third party and retailer evaluation sites (e.g. epinions.com) Blogs Wikis Social networking sites Marketer Link building News releases Blogs/Online forums Retail sites Banner Ads/Links /Spam News Releases Blogs/Online forums Search Engine Optimization Viral/social marketing MarketerConsumer

Let’s Recall: what is MarCom all about? Reaching customers

What is different about Web 2.0 MarCom?

Web 2.0 Communication: Shift the Frame From consumer to the moment (the many moments) of truth that occur when the customer interrupts you!

Why do consumers interrupt? THOUGHT LEADERSHIP!!

Link online strategy to marketing business strategy

Pressing Questions How do my consumers you the web 2.0 touch point? How do I meet my customers' needs at this touch point? What questions do my customers have that I need to answer meaningfully? How do I answer? What do I do next?

Action Plan: Harness the Power of the New Rules 1)Become buyer-centric 2)Become a thought leader

1) Become customer-centric –Describe your buyer personas –Identify the solutions they look for –Develop ways to be interrupted –Recommend ways to become more customer- centric

2) Build Online Thought Leadership –Describe your expertise –Analyze you and competitors web content –Benchmark –Recommend steps to become a thought leader

Final Thoughts