1. The Future of Marketing March 8, 2001

2. The Future of Marketing, 3/8/01, page 2 Agenda Change Happens… I.Embracing the Future/Marketing Assumptions A.The change process B.Crossing the chasm II.The Present Marketing Context A.Marketing version 1.0 B.Marketing version 1.5 C.Marketing version 2.0 (beta) III.The Future of Marketing A.Marketing version 2.0 B.Universal narrow-casting – eMarketing The New, New “old thing”

3. The Future of Marketing, 3/8/01, page 3 I. Embracing the Future /Marketing Assumptions Reviewing the change process No So Slow Go “Crossing the chasm” Discontinuous innovation vs. continuous innovation The product adoption life-cycle (and the chasm effect) Innovators Early adopters Early majority Late majority Laggards

4. The Future of Marketing, 3/8/01, page 4 II. The Present Marketing Context Marketing version 1.0 –The traditional marketing mix and the sales cycle 4 P + 1 Awareness/interest – Education – Conceptual trial – Purchase – After sales support Multiple agencies, multiple vendors – Brand Bosnia –Awareness advertising Mindshare Marketshare Revenue & Profit Marketing version 1.5 –IMC: Integrated Marketing Communications Brand management, consistent “look and feel” across entire productline… Marketing version 2.0 (beta) –Disinteremediation on the Internet – the promise of one-to-one marketing –Revival of customer centric marketing (beta) Lip-service in the form of web forms, online knowledge systems, and user forums (try finding an 800 # number or any support phone number) The point is building a relationship with the customer, which is why most companies are still in Marketing 2.0 (beta)

5. The Future of Marketing, 3/8/01, page 5 III. The Future of Marketing Rich marketing environments: the rule of 3, 5, and 11, expanded on each end with 1 and 100+ Jupiter Media Metrix –2001 spending for net companies: offline $6-7 billion, with $5 billion more online –Total online ad spending projected at $16.5 billion Marketing 1.0 and 1.5 will continue to be passive in most channels – “consider this your wake up call” Service sponsored marketing: enabling, engaging, enveloping Personalization through product suites (whole product solutions) – driven by marketing profiles User profiles leveraged among strategic economic partners

6. The Future of Marketing, 3/8/01, page 6 III. The Future of Marketing (cont.) Currently eMarketing (2.0) or marketing automation only reaches computer users (or fax users, limited implementation) – Internet constrained The Internet is expanding to reach all audiences –TV as broadband pipe: e.g. AT&T Broadband –Wireless applications: e.g. mobile phones, home stereo, refrigerators, cars, handheld devices –802.11b and Bluetooth Personalized web content based not merely on your buying patterns but your online behavior patterns Personalization of content is today’s challenge and tomorrow’s standard In Marketing 2.5 placement advertising will be conditional, you will see only brands targeted to your user-defined preferences –My TV, my computer, my phone…

7. The Future of Marketing, 3/8/01, page 7 Why? …ROI, Universal Narrow-Casting “50% of my advertising dollars are wasted, I just don’t know which 50%.” “What exactly should this action oriented environment be providing consumers? What should a brand that migrates online deliver them? Streaming media? Think again. How about customer service?” Two years from now, (next year, or even this year), the true return on investment on eMarketing campaigns will be received and updated in near real-time, if it’s not working fix it or take it down –Customer lead generation and acquisition –Qualification –Distribution –Retention –Satisfaction –Communications – life-cycle of a customer

8. The Future of Marketing, 3/8/01, page 8 The New, New “old thing” “The medium is the message” Everything in Marketing 2.0 and beyond is measurable – so measure it, react to it, enable it: “it’s the other P2P” Customer eyes – Personalize – Capitalize

9. The Future of Marketing Thank You