1. Strategic Marketing Challenges & Opportunities in the Digital Age
American-German Business Club
Munich chapter
March 30, 2011
Hal STinchfield
Promotional Marketing insights

2. Agenda Most Prevalent Marketing Trends
Traditional U. S. Marketing Initiatives
Most Common Marketing Challenges
Agencies
Website Development
Campaign Deployment
Most Prevalent Marketing Trends
Fastest Growing Digital Marketing Tactics
Defining Digital Marketing Objectives
Turning Challenges into Opportunities
Conclusion
Q & A

3. Traditional Marketing Initiatives
Coupons – 333 billion distributed in 2010 – 3.3 billion coupons redeemed with a face value of
3.7 Billion dollars
Rebates- 350 million redeemed in 2010  
Prepaid Gift Cards as Rebate Vehicles – growing considerably faster than rebate checks
Premiums
Sweepstakes
Offline Continuity, Loyalty, and Frequency Programs

4. Traditional Marketing Initiatives
Coupons – 350 billion distributed in 2009 – face value of 3.5 Billion dollars
Rebates- 350 million redeemed in 2010  
Gift Cards as Rebate Vehicles
Premiums
Sweepstakes
Offline Continuity, Loyalty, and Frequency Programs

5. Traditional Marketing Initiatives

6. Traditional Marketing Initiatives

7. Traditional Marketing Initiatives

8. Marketing Challenges - Agencies
Client assumes agency understands client’s business because they have experience in the category
Even if an agency knows the category – it doesn’t mean they know your business
They can be functionally competent but not have client chemistry
In the U. S. many advertising agencies charge their clients for media placement and billable hours
Example : agency may get well compensated for placing an advertisement in 52 million Sunday Newspapers

9. Marketing Challenges - Agencies
What’s often overlooked is that they may be reaching the wrong 52 million people but they still get paid!
Billable hours- if an agency gets a project that takes 50 hours to complete- we often see that there’s often no disincentive to stretch it to 100 hours- after all - it’s your money!
This has often been viewed as a conflict of interest
Some agencies are selected because of their “marquis” clients- what you may not know is how are they doing for them
Research to determine how much they know specifically about your consumers, your competitors’ consumers, and how they intend to influence their behavior

10. Marketing Challenges – Website Development
A multi-billion dollar firm launched a website – with messaging to no fewer than five different groups:
Consumers
Weight loss clinics
Dieticians
General practitioners
Surgeons
Site is: Optifast
The online marketing community would call this – Frankenstein!
The bottom line is: your online presence simply can’t be “all things to all people”

11. Marketing Challenges – Website Development
The next case is a site for a U. S. Guitar Company;
When asked about client objectives – answer: no objectives specified
When asked what direction the agency received: client wanted “the most beautiful site in the world”
Agency may have accomplished that - but without an objective – the site won’t do anything- except exist
So- determine what your site is supposed to do- before you create it or refresh it

12. Marketing Challenges – Campaign Deployment
Most problematic issues identified in campaign deployment are generally program-specific rather than tactic-specific
Most problems and complaints emanate from:
Offer Structure
Offer Communication
Offer Execution
U. S. legislators often believe that marketers intentionally develop offers that are difficult to comply with
Not true – most are issues inadvertent but still attract unwanted regulatory attention

13. Most Prevalent Marketing Trends
From To
Paper
Intrusive marketing
Marketer’s need for awareness
Marketer control
Desktop computer
Digital
Permission-based marketing
Marketer’s requirement for action
Consumer control
Mobile device

14. Fastest Growing Digital Marketing Tactics
Social Media –
Facebook
YouTube
Twitter
Search Engine Optimization
Deal-of-the-Day websites – like Groupon
Quick Response or QR Codes
I-Phone and other Smart Phone Applications
Broadcast Texting
Online Loyalty Programs

15. Fastest Growing Digital Marketing Tactics
OVER 500 MILLION USERS

16. Fastest Growing Digital Marketing Tactics
TWO BILLION VIEWERS PER DAY

17. Fastest Growing Digital Marketing Tactics
10 BILLONTH TWEET occurred March of 2010

18. Fastest Growing Digital Marketing Tactics
30 MILLION Global subscribers

19. Fastest Growing Digital Marketing Tactics
88 BILLION SEARCHES per month

20. Fastest Growing Digital Marketing Tactics

21. Fastest Growing Digital Marketing Tactics
QR Codes started by Denso Wave in Japan in 1994
Minimum 52% of population have seen the codes
28% have used
OS Scans
Apple 68%
Smart phones 26%
Blackberry 4%
1200% increase in scanning July 2010 – December 2010
57% of Facebook & Twitter users have scanned in past year

22. Fastest Growing Digital Marketing Tactics
“We have to be on Facebook”
“We’re missing a huge opportunity”
“Let’s do something with Twitter”
“What about YouTube”
“Who knows about Search”
“Can we do Groupon”
“What about QR Codes”

23. Defining Digital Marketing Objectives
Define your objectives – what is it that you want to accomplish
Develop a strategy for getting that done- remember every good strategy is an integrated strategy
Deploy tactics consistent with the strategy that will accomplish the brand’s objectives

24. Defining Digital Marketing Objectives
Listen to what your consumers are saying about your brand
Create a venue for consumers to “follow” you, your progress, and your new product introductions
Increase “traffic” to your website
Observe that traffic (Google Analytics) and understand what you must do to convert that traffic into “action”- such as a purchase
Engage in dialog with your consumers
Validate all inbound communication

25. Defining Digital Marketing Objectives
Crisis management:
Fix the problem
Correct the perception
Ask consumers to “share their story”
Product sampling
Trial
Awareness – to consumers who don’t know about you
Penetration – more product to same customers
Customer acquisition – new sales to new customers
Profitability (via shopper insights) – sales of most profitable product to existing and new customers 

26. Turning Challenges into Opportunities
Agency Selection
Don’t assume an agency knows your business
Identify not only what they do but how they propose to do it
Consider changing the compensation model – pay for results, not media placement and billable hours
If a proposal contains tactics you are not familiar with – perform necessary due diligence
Website
Determine what results your online presence needs to produce
Learn how is it supposed to do that
To whom is it meant to appeal
What will drive that appeal

27. Turning Challenges into Opportunities
Search engine optimization
When prospective customers are doing research, what terms are they using to find you
Are all of those terms in your website
Is your site easy to navigate
Is your audience finding the most compelling content “above the fold”
Social Media
Is your target audience talking about you or your product
What are they saying
Do you have the resources to participate in that dialog

28. Turning Challenges into Opportunities
Shopper Insights
Have you profiled your light, medium and heavy purchase consumers
Which are most profitable to you
Are they “brand” loyal
Are they price sensitive
What characteristics do they have in common

29. Turning Challenges into Opportunities
Shopper Insights
How do you need to speak to them to get their attention- and subsequent “share of wallet”
Where do they buy
Why do they buy from that venue
Does that influence their propensity to buy your product
How can you influence each and every buying opportunity:
in store
in media
online

30. Conclusion Research, research, research Know your customers
Understand who buys from you and why
Learn who buys from your competitors and why
Figure out who they are, how to find them, where to find them- and how to convert them 
Finally
You can’t manage what you can’t measure so
Measure EVERYTHING!

31. Questions & Answers
Thank You! Hal Stinchfield Promotional Marketing Insights