1. Adapting Marketing For A New Era David M. Cooperstein Vice President Forrester Research

2. Digital Forces Companies to Adapt

3. “Viewers” evolved News became an all-day, on-demand activity. Access to news came from non-branded media sites like RSS feeds and portals that aggregated “my” content. Search engines answered the rest.

4. Distribution evolved...

5. ... forcing journalists to adapt 24 hour news cycles Self-amplification Audience engagement with comments and conversations in multiple venues Competition from “Peer Influencers” like HuffingtonPost.com, Daily Beast, TechCrunch, and Perez Hilton

6. Marketers are the new journalists

7. Your survival depends on how well you adapt Theme

8. Agenda How has the customer evolved with the onslaught of digital and social media? How are marketing leaders adapting their approach to embrace this evolution? What can you do today to adapt your marketing efforts?

9. Source: http://www.masternewmedia.org/images/email-vs-social-media_id13991621_size485.jpg How has the customer evolved with the onslaught of digital and social media?

10. Top 10 information sources *Trust is defined as a 4 or 5 on a scale from 1 [do not trust at all] to 5 [trust a lot]. “How much do you trust* the following information sources?” Source: North American Technographics ® Interactive Marketing Online Survey, Q2 2009 (US) Base: US online adults

11. Gen Y and Gen X “watch and surf” simultaneously “In the typical week, how much of the time were you watching TV and also using a computer?” Answer: More than half the time. Base: 4,651 US online adults (percentages may not total 100 because of rounding) Source: North American Technographics ® Entertainment And Media Online Survey, Q3 2009 (US)

12. Simultaneous usage does not mean simultaneous content “Which of the following describe your experience watching TV and using a PC at the same time?” Base: 3,583 US online adults who watch TV and use PC at the same time (multiple responses accepted) Source: North American Technographics ® Entertainment And Media Online Survey, Q3 2009 (US) I browse the internet on topics not related to what I am watching on TV I email, chat, visit social networking sites on topics not related to what I am watching on TV I use my PC to chat, browse, or research the show I am watching on TV

13. 3 billion 197 million >30 million 400 million 25 million New “media” have mass appeal Source: comScore, February 2010; YouTube,5/5/2010; FacebookInside company blog,2/1/2010; allfacebook.com

14. Social Technographics ® Source: January 15, 2010, “Introducing The New Social Technographics ® ” Forrester report Creators - 13% Critics - 19% Collectors - 15% Joiners - 19% Spectators -33% Inactives - 52%

15. Social Technographics ® Source: January 15, 2010, “Introducing The New Social Technographics ® ” Forrester report Conversationalists - 33% Creators - 24% Critics - 37% Collectors - 20% Joiners - 59% Spectators -70% Inactives -17% 83%

16. Social campaigns Source: Burberry (http://www.burberry.com/)

17. Social campaigns Source: Burberry (http://www.burberry.com/)

18. Social campaigns Source: Burberry (http://www.burberry.com/)

19. Mobile Technographics ® SuperConnecteds 12% Entertainers 20% Connectors 19% Communicators 13% Talkers 35% Inactives 19% Source: April 9, 2009, “Mobile Technographics” Forrester report

20. Mobile activity varies widely Source: Apple (http://www.apple.com/iphone/apps-for-iphone/)

21. Mobile activity varies widely Source: Apple (http://www.apple.com/iphone/apps-for-iphone/)

22. Mobile activity varies widely Source: Apple (http://www.apple.com/iphone/apps-for-iphone/)

23. What’s next?

24. Hyperlocal insight

26. eReader behaviors

28. Social gaming opportunities

29. How are marketing leaders adapting their approach to embrace this evolution?

31. Change is good “The things we fear most in organizations — fluctuations, disturbances, imbalances — are the primary sources of creativity.” — Margaret J. Wheatley, president emeritus of The Berkana Institute

32. Definition of adaptive marketing –A flexible approach in which marketers respond quickly to their environment to align customer and brand goals and maximize return on brand equity.

33. Adaptive Marketing Looks Like This Retail Mobile Customer Service CRM Offline media eCommerce Interactive Media Social initiatives

34. Engage your consumer’s 4 P’s Our P’s – Product – Price – Place – Promotion Our P’s – Product – Price – Place – Promotion The Consumer P’s – Permission – Proximity – Perception – Participation The Consumer P’s – Permission – Proximity – Perception – Participation PermissionConsumers choose with whom and when to engage ProximityConsumers tap into networks and affiliations that come closest to their needs PerceptionConsumers inhabit multiple personalities ParticipationConsumers participate to get a sense of connectedness

35. Three tenets of adaptability Think and move differently. Listen more, react intelligently. Target people, not statistics.

36. Think and move differently

37. The brand platform lives in many places

41. Listen more and react intelligently Source: March 12, 2010, “Defining Social Intelligence” Forrester report Strategy Marketing Online Discussion Social Media Data DRIVES INSPIRES CREATES INFORMS

42. Hyundai responded to current consumer needs

43. Hyundai Think Tank revealed customer needs –Hyundai Assurance program –Gas Lock program

44. Hyundai responded to current consumer needs Hyundai Think Tank revealed customer needs –Hyundai Assurance program –Gas Lock program

45. Communities help shape messages and product decisions Source: Mercedes-Benz (https://www.mercedesbenzadvisors.com/login); www.mbusa.comhttps://www.mercedesbenzadvisors.com/login

46. Communities help shape messages and product decisions Source: Mercedes-Benz (https://www.mercedesbenzadvisors.com/login); www.mbusa.comhttps://www.mercedesbenzadvisors.com/login

47. Target people, not data or “audiences” Brand Channel Line of business Data Women 25-44 with two kids in household

48. Target people, not data or “audiences” Brand Channel Line of business Data Mother with toddler and infant

49. Target people, not data or “audiences” Source: Procter & Gamble (http://www.pg.com/en_US/index.shtml)

51. What can you do today to adapt your marketing efforts?

52. Adapt your approach to new ideas Groundswell New audience type Integration New channel, interaction, engagement Experimentation

53. Adapt the roles of your team Brand advocateBrand strategist Source: Flickr (www.flickr.com) –Understands and engages the local market –Communicates nuances –Leads local communities –Observes cultural norms and regulations –Rolls up feedback from all markets –Sets the core platform for the brand –Ensures that tone and meaning are consistent across markets

54. Adapt your process Plan iteratively and frequently. Partner for creativity, not durability. Use predictive metrics in addition to descriptive ones.

55. Adapt your mix of media Paid Media “The Catalyst” Paid Media “The Catalyst” Owned Media “The Portable Brand” Owned Media “The Portable Brand” Earned Media “The Result” Earned Media “The Result”

56. Summary Consumers evolve. –You must follow them to the outposts where they spend their time and engage with them on their terms. Marketers, adapt! –You must change the pace at which you think, learn, and converse with your customers. Start today. –Adapt the processes you have held onto for too long in terms of the approach to new ideas, new people, how you plan, and your use of media.

57. Thank you David M. Cooperstein +1 212.857.0758 dcooperstein@forrester.com @minicooper www.forrester.com