1. ©Zwick Marketing 2.0 for Competitive Advantage

2. ©Zwick What we will do today Discuss how communication value (through customer value) is generated and delivered in a Web 2.0 world –B2C and B2B Effective web-based communication tools –Lead generation and sales w/o push Develop an online marketing communication plan –Things you can do tomorrow

3. ©Zwick More Specifically: Session 1: Map the new media forms Session 2: Unpack logic/theory of new media Session 3: Drill down on the tools of Web 2.0 communication Session 4: Your turn! Write an action plan.

4. ©Zwick Let start with some question… What do you consider the most significant challenges advertisers face today? What do you consider the root causes of these challenges?

5. ©Zwick And two more… What is digital/interactive/e-marketing to you? How can digital marketing help overcome advertising challenges of the 21 st century?

6. ©Zwick Let’s share…

7. ©Zwick All four: What do you consider the most significant challenges advertisers face today? What do you consider the root causes of these challenges? What is digital/interactive/e-marketing to you? How can digital marketing help overcome advertising challenges of the 21st century?

8. ©Zwick 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

9. ©Zwick What we know

10. ©Zwick If you can… Spend $300 on a video camera and reach 4 million unique visitors/month (MS). Spend 1% on marketing to increase sales six-fold in 2 years (Stormhoek). Hire a videographer, a blogger, and a flickr photographer and run a presidential campaign.

11. ©Zwick …then a truly a New Reality with New Rules is here So what has happened in the last 10 years?? –Google, YouTube, Facebook Word of mouth has gotten much, much more efficient and important –Rise of attention economy –Rise of Long Tail –More?

12. ©Zwick Blogs…right Arnold Kim, MD His blog: MacRumors.comMacRumors.com Started in 2000, full-time since 2008 Attracts more than 4.4 million people –NY Times has 13-14 million 40 million page views a month (Quantcast)

13. ©Zwick Name the Top Blogs: Gawker Media MacRumors.com The Huffington Post PerezHilton.com TechCrunch

14. ©Zwick More importantly Can you name the key blogs/wikis/forums in your industry??

15. ©Zwick In your Groups: For each member Identify the blogs, forums, wikis, and list serves for your industry? –Ex.: the Solo Attorney listSolo Attorney Which ones do you monitor? In which ones do you or your organization participate? –Ex.: AlacraWiki?AlacraWiki

16. ©Zwick Let’s share…

17. ©Zwick Result A new medium is here that is as influential as CNN and the New York Times

18. ©Zwick Mapping Digital Marketing Consumer Marketer Consumer

19. ©Zwick Mapping Digital Marketing Consumer Marketer Retail sites Banner Ads/Links Email/Spam News Releases Blogs/Online forums Search Engine Optimization Viral/social marketing MarketerConsumer

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

21. ©Zwick Mapping Digital Marketing 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 Email/Spam News Releases Blogs/Online forums Search Engine Optimization Viral/social marketing MarketerConsumer

22. ©Zwick Mapping Digital Marketing Consumer Search Email 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 Email/Spam News Releases Blogs/Online forums Search Engine Optimization Viral/social marketing MarketerConsumer

23. ©Zwick In your Groups: Work together to fill the quadrants for each of your companies. Consumer Marketer Consumer

24. ©Zwick Let’s share…

25. ©Zwick Let’s take a break!

26. ©Zwick Reaching Customer New Tools to drive –Buzz –Traffic and Leads –New product feedback –Sales –Relationships –Etc.

27. ©Zwick Of Influentials and Search Engines Bloggers Podcasters Videobloggers Sneezers Digg Technorati del.icio.us Google

28. ©Zwick Is there a Simple Formula to Success? No… …but I’ll give you one anyway.

29. ©Zwick Turn a good story… …into a groundswell of communication and attention. –Will it blend? (youtube) –Nokia N95 (blog seedings) –Mike Pedersen (www.golf-trainer.com, www.performbettergolf.com/blog)www.golf-trainer.com www.performbettergolf.com/blog –Le Cache Premium Wine Cabinets (wine- storage.blogspot.com)

30. ©Zwick But why? So what? What does all that communication and (possibly) knowledge of the product, service, company, brand, person, etc. turn into? –Credibility, authenticity, authority In short: TRUST through THOUGHT LEADERSHIP

31. ©Zwick In Groups: For each member, do these two things: 1)Identify the story about your organization/product/service currently told to consumers in your ads 2)Identify all the ways you are telling this story to your market

32. ©Zwick Let’s share…

33. ©Zwick Why thought leadership…? –traffic –relationships –sales –loyalty

34. ©Zwick So what is different about Online Advertising? Standard Answer: Allows you to communicate directly with your marketplace. But –Does a TV commercial not do that? –Does a good PR campaign not do that?

35. ©Zwick So what is different (cont’d)? Prior to web: how can you get attention from customers? –Advertising –PR How targeted are these? –depends but overall pretty much shot gun How timely are these? –Usually untimely one-way interruptions!

36. ©Zwick …and now…? Conversation, interaction, relationship with the select few Attention is always already there We dig deeper after group work…

37. ©Zwick Back to your Groups: Back to your story… –Together ponder two additional online communication tactics for each of you that you would recommend to tell the story.

38. ©Zwick Let’s share…

39. ©Zwick Theory Burst (fear not) From Consumer Marketing to Customer Moment Marketing

40. ©Zwick 21 ST Century Marketing Challenges FRAGMENTATION!! –Attention –Demand –Community and Communication

41. ©Zwick 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

42. ©Zwick Long Tail (Chris Anderson) Fragmented Demand –Niches are Riches

43. ©Zwick 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.

44. ©Zwick The Head Prior to the Internet, production, distribution, and consumption focused on a few hits because of scarcity of resources: –time, space, and money –The 80/20 rule

45. ©Zwick The Long Tail Costs of reaching niches down!

46. ©Zwick To Summarize: In virtually all markets, there are far more niche goods than hits The cost of reaching those niches is now falling dramatically. 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. The natural shape of demand is revealed.

47. ©Zwick Is there a Long Tail? www.rogerebert.com hosts more than ten thousand reviewswww.rogerebert.com June 2006, these movies were big: –The Da Vinci CodeThe Da Vinci Code –Brokeback MountainBrokeback Mountain –V for VendettaV for Vendetta –X-Men: The Last StandX-Men: The Last Stand –An Inconvenient TruthAn Inconvenient Truth The question: what percentage of clicks went to any of these reviews?

48. ©Zwick Is there a Long Tail? Web traffic statistics show that even the most popular film represents less than 1 percent of their business. –The Da Vinci Code.8%The Da Vinci Code –Brokeback Mountain.8%Brokeback Mountain –V for Vendetta.7%V for Vendetta –X-Men: The Last Stand.6%X-Men: The Last Stand –An Inconvenient Truth.5%An Inconvenient Truth The lesson: People are curious about a lot of different movies.

49. ©Zwick Brands/Companies as Platforms Social communication theory –From attention to recognition –“Open-source marketing” Wikis, forums, communities

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

51. ©Zwick Common cures Build deeper customer relationships and knowledge; Construct fine-grained customer segments Mine customer data to uncover hidden relationships – get to know customers on a “one to one basis’

52. ©Zwick …AND THEN PUSH YOUR MESSAGE!

53. ©Zwick Problem is People’s needs change (daily, hourly) needs are not hardwired but a function of context People still don’t have time to be interrupted with irrelevancy People still don’t recognize you (the marketer) as thought leader

54. ©Zwick Digital Marketing: Shift the Frame Shift away from individual consumer as the unit of analysis and shift toward the moment (the many moments of truth) that occur when the customer interrupts you! –asks questions, expresses opinions, searches for examples, converses with peers, weights options and eventually makes a buying decision. FIND WAYS FOR CONSUMERS TO INTERRUPT YOU!!

55. ©Zwick Let’s Summarize Advertising faces new challenges –Attention, niche demand, community/communication A new medium changes the name of the game –From customer segments to customer moments Online Marketing Communication: –Brand means authentic thought leadership (not one- way interruptions)

56. ©Zwick Let’s look at the Tools

57. ©Zwick We focus on: Search engine marketing Viral marketing Online Forums, Wikis Blogs (incl. Audio, Video) Email Online retailing/Website Strategies

58. ©Zwick We focus on: Search engine marketing Viral marketing Online Forums, Wikis, List Serves Blogs (incl. Audio, Video) Email Online retailing/Website Strategies

59. ©Zwick Search Engine Advertising 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)

60. ©Zwick Organic Search #1 Rule: Speak your customers' language. –Harder than it seems: irrelevant what you think your customers use to find you. or even what phrases you want them to find you with.

61. ©Zwick Pay per click The fastest growing form of Internet Advertising (vs. traditional CPM) Advertisers pay NOTHING for audience exposure Advertisers pay only when someone clicks on one of their ads (usually $.05 to $2.00) Advertisers bid for keywords that describe their product or service. The number of keywords is unlimited (inventory) ROI easily calculated – If you can measure it you can manage it Largely Google, Yahoo, Microsoft

62. ©Zwick Social Search User generated search results –Aim to produce more targeted results –Aim to produce more relevant results –Aim to produce more credible results

63. ©Zwick The Long Tail of Advertising The economics of Internet retailing increase the amount of inventory that retailers can viably offer – Walmart offers 6 times as many sku’s at walmart.com than in the largest store PPC enables a similar opportunity with ad “inventory” While the bottom 30,000 search terms may not generate the most revenue they are nevertheless very significant A richly segmented “marketplace for attention” is created

64. ©Zwick 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)

65. ©Zwick The Future of Search (2) Search will colonize new areas Geographic search (San Francisco and Google Local) Context sensitive Image Mobility Multi Channel Blogs Multimedia

66. ©Zwick Why should you care? Search will become critical in addressing 21 st century marketing challenges! –Consumers are better served –Advertisers are better served

67. ©Zwick Is it for YOU? Conduct various searches for each other’s services/products from a consumer perspective. –Without using your company or specific product names, what do you want your partners to search for? –Partners search various terms: what do you see? –How high up is your partner’s company? –Exchange insights with the other.

68. ©Zwick We focus on: Search engine marketing Viral marketing Online Forums, Wikis, List Serves Blogs (incl. Audio, Video) Email Online retailing/Website Strategies

69. ©Zwick Viral Marketing (buzz, word-of-blog) Grobe and Voltz! –The Diet Coke and Mentos guys on Eepybird.com –From backyard to Letterman –From a one-off to full-time job (celebrities) –From one bottle and one mentos to a business with accessories etc. –All for about $200

70. ©Zwick Coke and Mentos? Can’t believe their luck… …or can’t believe their bad luck?

71. ©Zwick From this story How do you define Viral Marketing/Advertising? –“to make/have others tell the story for you”

72. ©Zwick Can you manage Viral? Difficult –Web good at smoking out trickery –Inauthentic viral can be damaging to reputation –Hardly guarantees for success –Remember: Viral may use YOU! –Push along a positive viral you did not start –Contain a bad one

73. ©Zwick Some Suggestions Monitor the blogosphere for viral (or potentially viral) eruptions Monitor search terms (www.alexa.com) –On the day Coke/Mentos went viral, a tenfold spike in the number of blogs mentioning Mentos occurred Take the “hit-approach” (or angel investing) –Shattner’s kidney stone and Goldenpalace.com

74. ©Zwick Is it for YOU? Do a search about your brands, top executives, and company. –Count –Analyze

75. ©Zwick Is it for YOU? Explore viral potential for your company. –Good, corky, or bad deeds to talk about? –Can you make customers talk about you?

76. ©Zwick What did Mentos do? They have a “viral eruption”, now what? –Video contest (100 submissions, 1 million hits)

77. ©Zwick What did Coke do? Initially, they did not like the representation of the brand and did not support Grobe and Voltz. They realized that this was unstoppable and now came around.

78. ©Zwick We focus on: Search engine marketing Viral marketing Online Forums, Wikis, List Serves Blogs (incl. Audio, Video) Email Online retailing/Website Strategies

79. ©Zwick Aka, the public conversation ‘out there’ Most out of control of marketers –Sony (XCP software) case Your best customers participate in online forums, so should YOU –Nikon D200 and B&H Photo-Video –Posters consider forums their turf, meet them there! –Participate with ideas, advice, and knowledge, not sales

80. ©Zwick Ex.: BarePoint Mike 2.0 wiki –Opens up knowledge even to competitors –Helps compete with Accenture, HP, IBM –Creates lots of high-quality leads for the multi- million dollar management service they offer –1 million views a month!

81. ©Zwick Other Wikis/Forums Intuit: taxalmanac.com (top 20 wiki site in US) EBay: ebaywiki.com Tivo: tivocommunity.com (not built by Tivo!)

82. ©Zwick Is it for you? Maybe, but first ask yourself: –Why will people participate? Or: what problem will it solve? –How will you participate? –Will you create a wiki/forum or join existing one?

83. ©Zwick We focus on: Search engine marketing Viral marketing Online Forums, Wikis, List Serves Blogs (incl. Audio, Video) Email Online retailing/Website Strategies

84. ©Zwick Blogs = Word-of-Mouse Comes in –Text –Video –Audio We include press releases here

85. ©Zwick Part of Larger digital strategy Customer service departments deliver “how-to’s” Extend distribution and consumption possibilities Side by side with text blogs, websites, forum participation, white paper distribution, e-books, etc.

86. ©Zwick Is it for YOU? Think about your core products and services, then Identify two main user groups, then Identify opportunities for using podcasting (audio, video, text) to add value. Define from YOUR customers’ perspective: what would make a good blog?

87. ©Zwick We focus on: Search engine marketing Viral marketing Online Forums, Wikis, List Serves Blogs (incl. Audio, Video) Email Online retailing/Website Strategies

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

89. ©Zwick Is it for YOU? Under what circumstances could you use email as a communication tool? Design ONE moment of use for email for your business.

90. ©Zwick We focus on: Search engine marketing Viral marketing Online Forums, Wikis, List Serves Blogs (incl. Audio, Video) Email Online retailing/Website Strategies

91. ©Zwick Content is King Webmaster not King Graphic designers not King Advertising creatives not King

92. ©Zwick 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

93. ©Zwick And your Site? The “how good is your content” challenge? –How targeted is it to specific customer personas? –What kind of media are used? –What kind of search functions exist? –What kind of downloads exist? –What kind of possibilities for consumer participation exist? –What kind of possibilities for linking exist?

94. ©Zwick And your site? What tools for a content-rich website could generate value for your company?

95. ©Zwick Coffee Break?….yeah!

96. ©Zwick Link online strategy to marketing business strategy

97. ©Zwick Pressing Questions As marketers, sales people, or owners of small/medium businesses you wonder: –How do the various touch points within my business affect each other and are there gaps you need to bridge? –How do I meet my customers' needs at each of these different touch points? –What questions do my customers have that I need to answer meaningfully? –How do my customers frame their questions? –How do I shape my message to reflect those frames? –What are the different motivations and emotional needs among my audience that I need to satisfy? –What do I do next?

98. ©Zwick Action Plan: Harness the Power of the New Rules Become buyer-centric –Build Buyer Personas –Speak their language, close sale, and continue conversation –Do “open-source marketing” Build Online Thought Leadership –Build TL content –Think writing and publishing –Think “online media room”

99. ©Zwick Each of you individually: In one (maybe two) sentence(s): –Define your company’s overall marketing strategy (STP) –Define your IMC strategy (STP) –Choose one segment and develop all customer personas within this segment that your organization deals with based on their needs. –Identify all your online communication tools and assess how customer-centric they are (address each persona’s moments of truth). –Assess if you would be looked at as a thought leader by your personas at these moments. –Make 3 recommendations for your team to work on tomorrow to link the benefits of the Web 2.0 to the communication and marketing strategy of your organization.

100. ©Zwick You did It!