Introductions Name (and name you want to be called by) Place of origin Significant prior work experience (main jobs & experiences) Expectations for your career and how this course might fit into that. Your favorite movie (and, if you want, why it is your favorite)

Marketing in the Age of Web 2.0 Mapping Digital Marketing Media and What can we learn from an Youtube/ebay/Facebook world?

Moment of Honesty Do we really have a definition of Web 2.0? If I were to do one this is probably it: –“Maybe it is a ‘new’ Internet and if it is, it is more about concepts than definition. In my view, it centers around: freedom of expression applications horizontal innovation enabling openness, connectivity, and exchange of information (most importantly?) respect of individuals as contributors

What is Interactive Marketing? Is it perhaps... …selling over the Net? …advertising over the Net? …distributing over the Net? …producing using the Net? …others? What do you think?

My Definition: Power of Information Web 2.0 Marketing is the Process of Building and Maintaining Co- Creative Customer Relationships Through Building and Maintaining Value-adding Electronic Product and Service Networks and Communities using the Power of Information.

Concepts of Networked Marketing Information as “Dematerialization” Co-production (Social Media)

Dematerialization: The informational mode of production Information management has been labor intensive, therefore high cost, high overhead. The IT revolution makes knowledge work productive through automation.

“network marketing” When messages are transported at network speed, and production is decentralized, the result is FLEXIBILITY!

Flexibility: Doing Networked Marketing Customization: Change segments on the fly—even make segments of one! Co-production: Bring in the customer Multi-channel solutions: real-time click and brick sales pitch.

Link Concepts: What is the glue for – the multi-channel retail system –Customization of segments –And co-production?

Ask yourself: In this brand new world of flexible marketing through co-production How does branding change? How does new product introduction change? How does new product development change? How does channel strategy change? How does promotion change? How does pricing strategy change?

Value Types Look at Value System to Discover New Business Opportunities Liberate Trapped Value Introduce New-to-the- World Value Create More Efficient Markets Enable Ease of Access Customize Offerings Extend Reach and Access Create More Efficient Systems Disrupt Current Pricing Power Build Community Enable Collaboration eBay craigslist monster.com Ofoto.com FedEx Carpoint.com Priceline.com MyYahoo Amazon personalized page Keen.com (Advertise yourself) MyFamily.com Epinions.com weboffice.com liberate trapped value introduce new-to-the-world value

So why do Interactive Marketing? Because the NEW NETWORK supports one or more of these efforts: Increase Market Share Improve Profitability Increase Product Cycle Times Enhance Customer Relationships E-Business

Let’s Discuss Can the Internet Help Innovate?

21 ST Century Marketing Challenges FRAGMENTATION!! –Attention –Demand –Community and Communication

Attention Economy Fragmented media Consumers tuning out or completely skipping messages 61% of consumers say that marketers and advertisers do not treat them with respect 69% are interested in products or services that would help them skip or block advertising Poor Information/Metrics on effectiveness

Long Tail (Chris Anderson) Fragmented Demand –Niches are Riches

What is “Natural Demand”? The “Head” of the Demand Curve: –Pre-Internet, old economy firms turned out a small number of “hits” or blockbuster products The “Tail” of the Demand Curve: –Internet-era, new economy firms offer a broader range of niche products.

The Head Prior to the Internet, production, distribution, and consumption focused on a few hits because of scarcity of resources: –there simply was not enough time, space, or money for businesses to offer everything for everybody. –The 80/20 rule was the dominant model—20 percent of a business’s products accounted for 80 percent of its sales (and usually 100 percent of its profits).

The Long Tail In markets where technology dramatically reduces the costs of reaching niches through one or more of these powerful forces: –expands the universe of content –reduces the costs of consumption –lowers search costs (drives demand down the tail). But how do you lower the search costs?

The Long Tail –In the long tail model, these forces allow online businesses to greatly increase the variety of their products. Anderson argues that 98 percent of a long tail business’s products sell at least one unit in a quarter on a cumulative basis, these small numbers of sales of large numbers of niche products generate enormous revenues and profits.

Is there a Long Tail? hosts more than ten thousand reviews and its Web traffic statistics show that even the most popular film represents less than 1 percent of their business. –In June 15, 2006, "The Da Vinci Code" and "Brokeback Mountain" were tied at 0.8 % of page viewsThe Da Vinci CodeBrokeback Mountain –the next most requested reviews in 2006 have been for "V for Vendetta" (0.7)V for Vendetta –"X-Men: The Last Stand" (0.6)X-Men: The Last Stand –"An Inconvenient Truth" (0.5).An Inconvenient Truth The lesson: People are curious about a lot of different movies."

Is there a Long Tail? The Long Tail of Holiday Music. –eMusic had 1,226 holiday albums in the catalog –1,128 had been downloaded over the past month. –That's 92% of the catalog! Source: Digital Audio Insider, 2007Digital Audio Insider

To Summarize: In virtually all markets, there are far more niche goods than hits The cost of reaching those niches is now falling dramatically. Simply offering more variety does not shift demand by itself. Consumers must be given ways to find niches that suit their particular needs and interests. A range of tools and techniques—from recommendations to rankings—are effective at doing this.

To summarize con’d Once there’s massively expanded variety and the filters to sort through it, the demand curve flattens. There are still hits and niches, but the hits are relatively less popular and the niches relatively more so. All the niches add up. Although none sell in huge numbers, there are so many niche products that collectively they can comprise a market rivaling the hits. Once all of this is in place, the natural shape of demand is revealed. That shape is far less hit- driven than we have been led to believe.

Part 2 Online Branding

Discuss What are the implications of the NikeiD exchange for online marketing? What are key learning points from Chapman's 'Comcast Service Experience' segment

Online Branding

A key marketing challenge in today’s multi- channel, multi-device world is the integration of digital marketing opportunities into the traditional marketing mix. Leveraging the capabilities of the Internet’s network connectivity and interactivity to drive revenue is of paramount importance to today's marketer.

MKTG 101: Brands What is a brand? Do we need brands? Who creates brands? How do you create a brand? How do you value a brand?

brand immersion Branding in the 21 st Century brand immersion What is brand immersion? Tell me about a time that you felt immersed in a brand.

Branding in the 21 st Century What makes a medium or environment immersive? Persistent Interactive Socially networked Experiential Emotional Affective

What is this? Immersion via Ambient Communication: Festivals Pub talk Street stunts Internet chat rooms

Advergaming: turning “brick” brands digital

Why advergaming? Advergames blur the distinction between entertainment and advertising. –Benefit? –Web audiences drawn in long enough. –message appears „un-pushed“ Advergaming used in conjunction with a competition for prizes and product promotions stimulates a whole new realm of peer-to-peer marketing. –Benefit? –A viral explosion occurs as users share the game competition with friends and ultimately bring others into contact with your brand.

What we know of the Game- Marketing Link:  Games generate high degree of attention  Games generate comparatively long attention span  Games generate positive emotions which the player associates with the product / brand  If additional information about the product / brand is offered, it will be received favorably=> credible source!  Games decrease the propensity for critical thinking during game-play: the player will not work up counter-arguments against marketing propositions  However: Marketing propositions will be remembered longer and in greater detail if accompanied by hard data.

In Sum: to drive the brand…  …websites need to be more than a communication channel to customers. they must be a proposition in their own right.  …websites must be an extension of the products and services that a brand provides to its customers. as soon as content becomes digital, customers expect more from it.  …marketers must understand that as soon as content becomes digital, customers expect more from it.  …you have to allow for co-creation and create “Prosumers”.  The edge boundaries between content, advertising, and application have gone.

GROUP WORK: discuss

discuss Identify your favorite immersive branded site Analyze what makes it a powerful brand driver Present three key learning points of your analysis

But brands are not just online…

Miller’s Man Laws A ridiculous invention but one that obeys the branding law of the 21 st century.

Extend Marketing Space Healthy Choice has used its online games to drive people to supermarkets to actually buy its products, by offering the chance for customers to print "mystery coupons" A Hanes sweepstakes promoted the apparel company's new "tagless" t-shirt by using a tag as the virtual game piece: "Lifting" it with the mouse revealed the visitor's prize.

turning a digital brand physical

In the 21 st century, this is what your job is all about: Find ways to make your brand more experiential and hence more memorable! –careful spatial planning –live, real-time, event-based nature of the brand interaction Shift consumers’ perception and practice of what constitutes a marketing ‘space’. –Immersion marketing seeks to achieve a much more proximal relationship between consumers and brands. as theorists of the ‘experience economy’ put it: –‘the more effectively an experience engages the senses, the more memorable it will be’ (Pine and Gilmore, 1999: 59).

discuss You have been hired to lead the strategy task force for digital marketing at Buick. The marketing director is at a loss because the brand seems to be losing ground with the year old demographic.

Buick On a conceptual level, what do you suggest needs to be done. On a concrete level, develop a marketing mix to achieve the objective of brand renewal.