The Information Revolution and the Future of Marketing

1. The Information Revolution and the Future of Marketing Matt Duffett Bryan George Katy Koschel Elizabeth Shum

2. Taking Advantage of New Marketing Technologies

3. 4 Guidelines for Success • Don’t bet the farm on 1 new technology • Focus on Content, not Technology • Beware of Information Overload • Recognize the importance of Contrarian Marketers

4. 8 Strategies for Interactive Marketing Success • Don’t go it alone • Use ongoing dialogue • Be a value- added marketer • Put more focus on the specific offers • Recognize your enemy- promo clutter • Utilize a flexible automation system • Be a leader, not just a manager • Do it right or Don’t do it at all

5. TheEndofBigness

6. The Future of 1 to 1 Marketing http://www.clickz.com/experts/brand/brand/article.php/820371

7. Orwell’s 1984 vs. Bush’s Information Revolution

8. Orwell Big Brother Thought Police Limited Information from the Government Fear that crushes privacy Bush Memex computer Freedom through Information The Predictions

9. What’s Next • Video Empowerment -Video Dial Tone • Print Empowerment Villanova University Library -VUCat

10. Results • Privacy Issues • “Hunters and Gatherers” - liberation from the land - freelancing - “we will all have to forage and we will all not eat well” • Electronic Geography - labor shifts- space, time, money - movement to the “non- burbs”

11. Results • “Who to believe?” - everyone is an authority • Idea Piracy • Fractionalization - when your news is the only news • Innovation and “Monopoly Rent”

12. All your products are ephemeral. Only your customers are real.

13. Previous System 5 minute reservation time DOS-based program Scheduling and organizing tour lengths and party sizes on automated clipboards Magnetic boards often knocked over- chaos ensues Software with multiple screens, overbooked and underbooked tours Current System One minute reservation time Proprietary reservation software package Sales now more than double what they were before upgrade 119% internet reservation increase in 2003 over 2002 Servers updated in 2003, Intranet for tour guides to access from home Will update phone system Pink Jeep Tours- Sedona, AZ

14. Online Marketing

15. Online Marketing • “If 2002 was the year of search engines and e-mail marketing, 2003 is the year of wireless and Weblogs as a hot interactive marketing technologies. Both these technologies promise to turn communications and media into much more widespread, interactive affairs, thus they hold huge potential for business marketing. But so far potential is all they have.” --Michael Fitzgerald-looking ahead at marketing tech.

16. Online Marketing • Internet as a marketing channel will increase for two reasons • Internet is cost effective • Internet enables targeted communication

17. Online Marketing • E-mail was found to be the most preferred methods for receiving promotions • Currently, e-mail marketing messages are facing backlash therefore marketers are avoiding Instant Messaging for now.

18. Instant Messanging • Abbreviated IM, a type of communications service that enables you to create a kind of private chat room with another individual in order to communicate in real time over the Internet, analagous to a telephone conversation but using text-based, not voice-based, communication. Typically, the instant messaging system alerts you whenever somebody on your private list is online. You can then initiate a chat session with that particular individual.

19. Instant Messaging • Providers • AOL Instant Messenger (AIM) • MSN Messenger • Yahoo! Messenger • Programs included • Instant messages • Chat • Web links • Images • Sounds • Files • Talk • Streaming Content

20. Instant Messaging • Instant messaging really exploded on the Internet scene in November 1996. That's when Mirablis, a company founded by four Israeli programmers, introduced ICQ, a free instant-messaging utility that anyone could use.

21. ICQ • ICQ, a combination of letters that is shorthand for the phrase "I seek you," is a real-time tool that uses a software application, called a client, that resides on your computer. The client communicates with an ICQ server whenever you are online and the client is running.

22. Instant Messaging • Instant Messaging is perceived by users to be personal communication tool and not a promotional vehicle • Focus groups said “it was ‘inappropriate’ for IM to be used for promotion” • Advertising via IM may be ineffective

23. Instant Messaging • Form of IM-based marketing • IM bots • Interactive agents are software applications that interact with users via IM or other text-messaging services • Used by companies wanting to push products or services to consumers • Most popular: SmarterChild- reached 8 million AIM users

24. IM Robot Example AOL IM Robots

25. Instant Messaging • Neighboring • IM Marketing Model • Developed by Todd Tweedy • Believes IM networks will create two degrees of separation from advertisers, and prospective new customers • Encourages individuals to express their own views and voice about a product to service to their own network of personal contacts

26. Neighboring • Uses dialogs that are initiated, modified, and terminated by individuals within an IM network – marketing firm. • Lets advertisers not by a corporation or gain access to closed-social networks by using real-time communication tools, such as IM • Power of this model lies with the influence of word of mouth

27. Neighboring • Steps • Step 1: Gain IM client and alias names of your most valuable customers • Step 2: Invite customers to support your business and offer incentives for them to refer your services or products across their network • Step 3: Acknowledge their support • Step 4: Be committed to being of service, and leverage customer permission to request opportunities to reach out to customers in their network.

28. Neighboring • Benefits • The ability to transform personalization techniques into scalable systems that support mass marketing objectives • Providing targeted and permission-based interactions • The ability to detect whether someone is online and deliver just-at-that-time communications • Distributed referrals through small closed-networks of private contact lists or buddy lists

29. iTV: The Future of Television

30. iTV: The Future of TelevisionWhat is it? • “Due to the infancy of the market, any description of what constitutes ITV is necessarily a working definition. …the definition proposed by the British broadcasting regulator, Independent Television Commission (“ITC”): ITV services are ‘pull’ services initiated by the subscriber to a MVPD that are not necessarily related to any specific video programming.” – Hernan Galperin & Francois Bar

31. iTV: The Future of TelevisionWhat is it? • Two types of ITV: • Program-related services • “…services that are directly related to one or more video programming streams. They enhance and extend the broadcaster’s core business.” – Galperin & Bar • Examples: “…to play or bet along with a show or sports event, to interact with other viewers of the same program, or to initiate transaction of goods or services featured in the video programming.” –Galperin & Bar • Dedicated Services • “…independent from any specific programming stream.” – G&B • Examples: “…video-on-demand, e-mail, games, gambling, and electronic banking.” – G&B

32. iTV: The Future of TelevisioniTV’s place in the market • 40% of respondents to a UK study said iTV would play a part in their future marketing efforts • “Interactive TV is a true opt-in medium, where the consumer chooses at all stages how the relationship is controlled.” • Through iTV marketers hope to change the way consumers view advertisements and information.

33. iTV: The Future of TelevisionRole of Digital Technology • “We’re piloting the use of digital technology to deliver different promotional messages to different types of homes.” – iTV broadcasting chief exec. Mick Desmond • iTV is also taking measures to build relationships with advertisers • CD-ROMs

34. iTV: The Future of TelevisionFirms that use iTV to advertise • Sky Broadcasting – Britain • Sky Active • Sent information to advertisers explaining options • Sky Text • Honda – UK Ads • First iTV ad was for the Civic • Starcom Motive • Press Red’s Blackbox Designer • Honda Accord Advertisement • Produced by Wieden + Kennedy • Aired on April 6th during iTV’s broadcast of the Brazilian Grand Prix • British Airways • Adaptation of the current “Club World” ad campaign • Uses interactivity to explain benefits to club members • Ad Example Above: Sky Text example, from http://skydigital.mediabullet.co.uk/index.php?page=interactive

35. iTV: The Future of TelevisionChallenges • “…to prove that this medium can make money” – Jane Marshall, controller of iTV interactive • Managing costs • Generating revenues

36. iTV: The Future of TelevisionSecurity Issues • T-commerce • People demand safe and secure transactions • The EMV standard • Chip in cards for user authentication • Canal Plus vs. NDS lawsuit • Canal accused NDS of piracy • Challenge faced: ensure customers that interactive transactions are secure.

37. iTV: The Future of TelevisionGovernment Regulation • The Three Generations of Television • Post-War -1970’s • Late 1970’s – early millennium • Now • Each generation builds on the previous one • Due to the market and consumer behavior variations, it is difficult to establish rules at this early stage • 3 potential areas for discrimination that require attention • Transmission System • Return Path • Home Terminal

38. Marketing of the Future:Scenes from Minority Report

39. Are Minority Report Gadgets Realistic? • Some yes, Some no • Reprogrammable Newspaper • “electronically self-printing paper” • What does this mean for marketing in the future? • Costs of targeting potential customers goes down • Personalization/Customization becomes easier and more detailed • Ability to tailor advertisements to different consumers rapidly

40. GPS Technology

41. GPS Technology • Global Positioning System • “GPS is a radio navigation system that allows land, sea, and airborne users to determine their exact location, velocity, and time 24 hours a day, in all weather conditions, anywhere in the world.”

42. “New” Technology • GPS technology is not “new” per se. • GPS technology has been in use for over ten years. • OJ Simpson’s exact location was traced by his cell phone as he fled police down a Los Angeles freeway.

43. How It Works • GPS is based on the triangulation of satellites. • Radio signal’s travel time is then measured by a GPS receiver in order to determine distance. • In addition to distance, you must know exactly where the satellites are in space. Therefore, the satellites are carefully monitored. • http://www.trimble.com/gps/how.html

44. GPS Applied To Marketing • GPS allows our location to be tracked via mobile phone. • This is POWERFUL technology • Prediction: There are at least 24 cell phones in this classroom right now • Companies know how prolific cellular phone use has become. • Question now  How do we use this technology to market?

45. Scenario No. 1 • You are a frequent Best Buy shopper. • You plan on going to KOP, but today you were not planning on going to Best Buy • Best Buy sees that you are within one mile of one of their stores and notices that you purchase blank CDs often. Just so happens Best Buy currently has a sale on blank CDs • A text message for a sale on blank CDs @ Best Buy pops up on your cell phone. • What is your reaction?

46. Scenario No. 2 • You’re shopping at Staples for ink cartridges. • You want to compare prices, so you leave Staples and decide to compare prices at Office Depot • Using GPS, Staples notices that you were in one of their stores but did not purchase anything. • A text message pops up on your cell phone offering you $5.00 off any purchase of $50 or more (only valid for next 30 minutes) • What is your reaction?

47. Scenario No. 3 • You occasionally shop at Ikea, a couple times a year at most. • GPS technology notices that you are less than a half mile away from an Ikea location. • A general text message appears on your phone saying, “Great sales at Ikea! Come in and take a look.” • What is your reaction?

48. “Your Cell Phone is Watching You” • Cell towers act as “receivers” of your phone’s signal; when you leave one cell area, your signal is bumped to the next cell tower • Can track your “rough” location • Last year, the Federal Communications Commission ordered cellular companies to equip all new cell phones with Global Positioning Satellite tracking devices • can pinpoint a user's location to within 300 feet • Designed to aid locating 911 callers

49. Effects on Cellular Companies • Downside: chip costs approximately $20 • Phones usually given away in wireless plans • Upside: Can gain information on customers’ daily activities • E.g. can sell advertising to be displayed on screen • Verizon Wireless spokesperson told the technology news website CNET.com that it currently has no plans to release information about customers' day-to-day whereabouts to commercial third parties.

50. Who is Tracking You? • Some companies are already making use of the limited cell phone tracking technology • “Hot Spots”: Hidden sensors can detect your phone or Palm Pilot, upon which the system hums into life, sending ads for merchandise you might be standing near and compiling data about your shopping habits